Matters that impact your real estate

I mean, have you really noticed that their is an incredible inventory of foreclosed, Bank owned properties...and many more are hitting the market every day. As major Lenders/Banks have taken huge losses and written off BILLIONS of dollars. Many people stopped paying their mortgages for a variety of reason and lenders/banks foreclosed. You heard of the mortgage mess, now here is the real estate bonanza!

Lenders/Banks are in the loan making business not real estate holding/owning/investing/renting/flipping business so they need (yes! they need to) sale those foreclosed properties. At first they want the most they can for the asset yet as the asset stagnates and values decline because property prices are (in some areas have been) beyond affordable, the exisiting lender at some point prices the properties at a price that current home buyers (first timer's, current homeowners that want to move up, small and seasoned investors) can dare and venture to buy.

Lending standards vary depending on the amount of down payment, FHA or other similar programs for those with low down payments are based on what a borrower/buyer can document (proof! income) they can afford. A variety of opportunies grow with those that have larger down payments. I have noticed that most buyers are again looking at real estate as something one buys and holds for a while. Gone are the days, for the most part of the real estate ATM home machine.

Yet if one has savings, other assets or still has a substantial amount of equity in one's home and missed the last cashout boom, here is the time to leverage oneself within ones tolerable risk (do the math and make sure one has reserves) to accumulate wealth. Investors do own research and make sure the rental market can support the mortgage debt and remember in a perfect world there are no vacancies, needs for repairs or required property improvements.

It seems that it's time without overspending (important to have a predetermined limit) to buy real estate at the affordable bargains that are out there and yes hold on to it for a few years. A few maybe 5 to 20 yet know the rewards will be plentiful for those that persevere.

First time homebuyers can be begin to see that properties seem to be affordable if one can qualify with the current mortgage standards.

Investors paradise is here yet flip masters beware.

The days that many have been waiting for are here, the opportunities that create wealth beyond dreams in the years to come. Are you poised to take advantage, now. Real estate is moving from weak hands those that for a number and variety of reasons are not able to afford and and hold their purchases into strong hands at discounted affordable prices and interest rates remain historically low. Affordability is here for those that missed the last wave, will you miss it again?

I do suggest to use care and buy within ones means and remember that what is important now is the value properties are now and if those numbers make sense now. Please do ignore where values where at their height for those days are gone.

Questions to ponder if it's an investment, does the current market rent support the mortgage? What is the current market rent? Does the rent amount make sense? Is the rental rate affordable for the area? Does one have the ability to absorb and make or hire another to make repairs and maintenance? Does the property need any immediate capital improvements beyond cosmetic improvements/repairs? What will does cosmetic repairs/improvemnts cost? What is the fairmarket value of the property? Is Property value well supported by curent market comparables? Are those comparables other REO's? Are theiri any sold comprables that are not REO's within the past 3 months?

Ofcourse as one begins to look and if the numbers do not make sense for you yet then ofcourse abstain, yet remember to time the market is very difficult and know it's lowest point will not be easy. If you have doubt just ask those that bought at what now is known was the height of the last cycle.

Warning, the seminar peddlers are here (always present in every market). Important to notice what their products are and true cost and offering of any and all education. Education trainning is worthwhile yet important to know and notice beyond a dream, a promise a need to take action. Are the seminar GURUs over promising selling you a training or are they really successful at what they teach in this market place now, remember all real estate is local and yes location matters yet so does the asset and or improvements. Every one needs some training just use care in what one signs up for and spends one's efforts and time. Is a pre-foreclosure really better than a foreclosure, short sale, REO or bank owned? ( some terms have similar meaning and are used interchangeably yet others make loads of difference? do you know the actual difference in the vocabulary beyond dictionary meaning?)

How can I help you? www.rwyourrealestate.com/content.aspx achieve financial success and accumulate wealth.

Ps. Short sales a subject I did not touch on here yet their was a wonderful article about short sales Sunday LA Times 06/15/08 (oh yeah you may be asked to register to view the article, it's free) http://www.latimes.com/classified/realestate/news/la-re-shortsale15-2008jun15,0,5068323.story

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Today I was asked this question and it reminds me that no matter what is going on in the market place most sellers and buyers are careful.  This question always comes up in a sellers and buyers market. 

My answer is a two part answer if you are a seller and you want to sell and can still accumulate some capital gains on your property sell, sell before the values come down further.  Mr seller don't let the time to sell pass you by as each month more properties hit the market and soon many foreclosed homes will be in the market. Now, Mr seller if you need to sell and feel the property you own is upside down (you owe more than it's current value) then one may explore a short sale...(will be happy to explain that process one on one or at a later time).

Now if you are a buyer the opportunity to buy your piece of americana real estate is here upon you in some cases at deep discounts from the values one has seen in the past few years. Now it's more important than ever to determine your financial goals and reasons for investing in real estate as the rapid appreciation has ceased in most market places.  Remember location, location, location (yes, repeating it three times helps to remember...hahaha)yes, location matters and your financing options do as well (100% financing is still availalbe for some buyers with high credit (fico) and asset documentation.)  Depending on verification of income and family size (copies of income taxes for the past 3 years, maybe required) there are some programs that provide assistance to first time home buyers (anyone that has not owned real estate in the past 3 years), the assistance maybe be with downpayment or lower than market interest rates or both.

Mr. buyer if you are interested in buying and can afford the payments now and in good faith expect to be able to keep up with this new debt (my suggestion please look into the possibility of qualifying for long term fiancing 7-10 year fixed rates at a minimum, amortized over 40 years to lower your payments, if you must get a 5 year fixed well just know your options) it is a great time to buy.

There are many, many loan programs and choices.

More to come until then if any question shall come up feel free to contact me as I am here to share all I know related to home loan financing and real estate buying and selling.

I may be reached at homes@rwyourrealestate.com

This is my opening blog in matters related to real estate purchasing, selling and financing.

It's my intention to be a source of information.

I trust that you will find this page and website helpful and know that I am here to assist you.