I am buying from a company that buys large numbers of delinquent paper and either forecloses or sells to local investors. good input/feedback is always appreciated!!
get a home inspection and an appraisal first
I have an address of a property and would like to find out who the owner is. Is that possible?
Assuming that you live in USA, you can find the information you are looking for at your county’s tax assessor’s website or if they do not have website they call them up and ask them to give you the required information.
The commissions are not set by law or by any realty association. Each homeowner is expected to negotiate the commission based on the factors involved in the sale. Most realty offices try to get 6% commission and split that 50-50 with the realty company hired by the buyer. Competition and the internet have combined to push commissions lower. The average realty commission in 2008 was 5.1%.
Each agent pays some of that money to his or her company when the sale closes. Some agents pay the company a flat fee every month… in return they get to keep 100% of the commission. Other agents pay zero monthly fee and give the company half of what they make. Each type of arrangement has advantages.
Investment in real estate has grown in popularity in the past decade. It can be a powerful investment tool for building long-term wealth. However, investing in real estate does not automatically mean easy riches and profits, and caution has to be exercised before plunging into the market.
Make sure that you never purchase a property just because it has tons of equity. Try to analyze a real estate deal based on more than just equity. Investors should always use Net Operating Income, because it is the only true way of determining whether you can afford to pay for a house. The steps for calculating Net Operating Income for a property are:
. First, determine what the market rent is.
. Subtract out an allowance for vacancies in order to get the Net Rent.
. Add all the expenses including insurance, taxes, a reasonable maintenance estimate and HOA utilities, except your mortgage payment.
. Subtract the added expenses from the Net Rent, and the remainder you get after subtracting the expenses except the mortgage payment or debt, is what is called Net Operating Income.
This will tell you just how much debt the property can really afford. If you get to know the rate of interest you get a loan on and the duration, then you can plug in the Net Operating Income as the payment, and a good financial calculator can tell you how much you can afford to pay for the property. Then make an offer from your side to the seller and show him/her the real expenses for the property, and what your rent expectations are. Do not make offers at 70% of value of the property without being able to justify the price. However, when you make an offer based on Net Operating Income then you can show any seller why it is that you can pay only your price.
The truth about equity in real estate investment:
There are chances of losing your hard earned money in real estate no matter how experienced you are. Your true wealth cannot be determined based on how much real estate you own. Equity is just paper wealth. You can be rich on paper but you may not be rich in cash. However, you can always convert the equity into cash by selling the property, placing a new loan on the property, or by keeping the equity as collateral. But, despite all this, you may not get back the amount you expect. If you create notes on your property and get more equity then it will entail more problems, as it will increase the monthly liabilities. Real estate equity might mean dead equity.
So it advisable to be aware of the problems in real estate investment that can lead to heavy losses. Improving and reselling the property for gain, or renting it out in a cash flow method, accumulates profit in this form of investment. Thus, it takes a lot of hard work to make money out of your investment. Being aware of the pros and cons of this form of investment is the first step in the right direction.
Kris Koonar
http://www.articlesbase.com/non-fiction-articles/analyzing-real-estate-deals-the-truth-about-buying-equity-103046.html
Even though you are selling your home without a real estate agent, the assistance of a real estate professional is still needed at various steps in the home selling process.
Follow these tips and you will find the process goes smoothly:
The requirement of a real estate attorney depends on the laws in your state. Even if you live in a state where a real estate attorney is not needed, as a for sale by owner seller, it will still be beneficial for you to use one.
A real estate attorney can serve many purposes in the housing transaction.
When you hire an attorney that specialized in real estate, that attorney is responsible for seeing that your best interests are met in the housing transaction.
A real estate attorney can act as the escrow agent by holding down payments, documentation, and earnest money deposits. Not only that, the attorney can help you decipher and evaluate complicated offers you might receive from a buyer.
In the event that the lender’s attorney does not handle the closing, your real estate attorney will host and handle the closing. If the lender’s attorney does handle the closing, then your real attorney will represent you in the process.
Your primary concern should be to find a real estate attorney that will provide you with assistance you need in the housing transaction.
You can use a local or internet directory to find the names of some attorneys in your area. Asking friends or family who have recently sold homes for references is another way that you can find an attorney to assist you.
If there are neighbors with “for sale” signs in their yards, you can casually inquire about the real estate attorney they are using. Hiring an attorney that comes as a reference is often better than cold calling attorneys.
As you look for a real estate attorney to hire, you should choose one that works primarily with real estate transactions. Avoid choosing a criminal or family law attorney that handles real estate transaction on the side.
Your interests will not be best served by an attorney that does not spend a significant part of his or her time in real estate transactions. Certainly do not hire an attorney that has never worked in real estate.
Along with experience in real estate transactions, price will be the other factor you use to choose a real estate attorney.
The attorney you hire will have two major responsibilities: reading and advising you on documents and representing you at closing.
Get a price quote from prospective real estate attorneys on those two tasks. You can get a discount from the attorney by letting him or her know that you will be preparing and filling out some of the documentation.
Shop around among several real estate attorneys to get a feel for experience level and price charged.
The most important thing is that you have a real estate professional available to assist you through the transaction. Even if you have successfully sold a for sale by owner home before, it is better to have legal assistance than to attempt to complete the process on your own.
Geri Mason
http://www.articlesbase.com/real-estate-articles/how-a-real-estate-attorney-can-help-you-sell-your-house-93486.html
There are four main taxes involved in any property sale and purchase transaction These taxes are:
* The transfer fee which is payable to Land Registry Office
* The capital gains tax which is payable to the Tax Office
* The VAT (KDV) which is payable to the Tax Office or to the vendor
* The Stamp Duty which is payable to the Tax Office
Different taxes apply to gifts of property for no consideration and transfers of property between family members.
As a general rule, capital gains tax is payable by the vendor and the transfer fee and Stamp Duty is payable by the purchaser, although this can always be varied by the parties by an express clause in the Contract of Sale.
The payment of VAT depends on two factors:
* Whether or not the transaction is subject to VAT. This depends on whether the vendor is deemed by the Tax Office to be a “professional vendor” (i.e. whether the transaction is of a commercial nature or for profit). If the vendor is deemed to be a professional vendor, the transaction will be subject to VAT. If the vendor is a private individual, the transaction will not be subject to VAT.
* Terms of the Contract of Sale. If the transaction is subject to VAT, who will actually pay the VAT depends on the terms of the Contract of Sale i.e. whether or not the sale price is stated to be inclusive or exclusive of VAT.
Taxes are generally paid on transfer of title. The percentages listed below are calculated as follows: the Transfer Fee is generally paid as a percentage of the assessed value of the property which is carried out just before transfer of title takes place. The Land Registry assesses the property in the state it is in at the date of the assessment i.e. if there is a new construction on the property, this will be included in the assessment of the value of the property. The VAT, Capital Gains and the Stamp Duty are based on either the assessed value or the contract value, whichever is the highest. Under new regulations, the Tax Office now requires a copy of the contract of sale to be presented to it prior to transfer of title.
The percentages levied for each of the three types of tax are shown below:
* TRANSFER FEE – The transfer fee is 6%. However, every person has a once in a lifetime option to reduce this to 3%. If a purchaser elects to use this option on the purchase, he or she will only pay 3%. Once this option right has been used, the transfer fee payable on all future purchases by that person will be 6%.
* VAT FOR PROPERTY TRANSACTIONS – 5% of either the assessed value or the sale price. Please note that some vendors require the VAT to be paid on the actual sale value of the property as stated in the Contract of Sale on the date that possession of the property is delivered to the purchaser. You should check the terms of your contract of sale on this point.
* CAPITAL GAINS TAX – As stated above, this is usally paid by the Vendor. The amount payable depends on whether the vendor is a professional vendor a private individual as defined under VAT above. If the vendor is a professional vendor, the rate will be 6.25%. Otherwise, the rate will be 3.5%
* STAMP DUTY – This is 0.5% of the contract price provided this is paid within 1 month of the date of the contract. If it is not paid within this time, the rate increases in stages until after 6 months it becomes 1.5%.
FREQUENTLY ASKED QUESTIONS
Vat For Property Transactions
Will I have to pay VAT on my property purchase?
In determining whether you will be liable to pay VAT on your property purchase, you need to establish the following:
* Whether the vendor is a professional vendor as defined above.
* Whether your contract requires you to pay the VAT.
Where the contract does not expressly mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.
CAPITAL GAINS TAX
Will I have to pay Capital Gains Tax on my purchase?
Generally, no. Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.
Will I have to pay Capital Gains Tax on the sale of my property? If so, how much will this be?
This depends on whether you are a private individual or a professional vendor (as defined above):
Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.
For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.
What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?
Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract.
Duncan Johnson
http://www.articlesbase.com/non-fiction-articles/north-cyprus-property-and-real-estate-guide-to-taxes-101675.html
a note is another name for a mortgage, and there are investors who will buy for fractional value of what the principal is. gets the note holder cash but not as much as he took the note for. the investor reaps the benefits of the discount plus interest.
Can somebody explain to me how to make an NPV and IRR analyses of a real-estate property? Where do the cash inflows come from?
The cash flow would come from rentals, leases, or the use of the property for the owner’s business or use. NPV will measure the rate of return for the investment while taking inflation into account. IRR will likewise attempt to determine the potential future earnings of the project. Since both of these involve seeing into the future, pessimistic outlooks may wind up doing better than optimistic ones. The key to making these decisions is having a firm grasp of what the current rental rates are, what expenses the owner would be responsible for, and realistic vacancy rates for the neighborhood/use/type of tenant. hope this helps,good luck!
I have entered into a "Residential real estate Sale Contract"(generic contract with fill in the blanks) to sell my home. There is a section entitled "Closing and Possession" which says (clsoing shall be completed on or before) <fill in date>. If the Buyer does not secure funds on delays closing past closing date listed on contract does that release me from the obligation to sell if I choose? Is there an unwritten "reasonable grace period" afforded to the buyer to secure funds past closing date listed on contract?
Sorry for typos. I guess Yahoo doesnt allow editing question once its posted.
The buyer has not put up any earnest money per my request. I thought it might allow me to cancel easier if I changed my mind.
Of course it also depends on other clauses of your contract (e.g., extension clause, contingecies, etc), but to answer your question based on the information provided, please note the following:
1) There is no such thing as "unwritten reasonable grace period" in any contract.
2) You may wish to give the buyer a notice to perform within a reasonable period of time (i.e., 48 hours).
3) If he or she fails to perform, arguably he or she will be in breach of contract, which would allow you to cancel the contract.
4) However, it doesn’t mean that the buyer cannot or will not commence a legal action for specific performance. But the question is, "will he or she win?" Probably not.
5) FINALLY, AND MOST IMPORTANTLY, irrespective of the quality and quantity of responses you get on this board, the best advice is for you to have a competent attorney review the ENTIRE contact and give you a professional advice.
Hopefully, this addresses your question. However, please note the following disclaimer:
The information herein is provided solely for educational purposes. Nothing here shall be construed as legal, tax or any other professional advice.
Good luck,
TheREMpro
http://www.RealtyCounselors.com
Their is a right and wrong way to sell your real estate note. The wrong way is going to cost you!
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