Oct
04
Foreclosure Homes Auctions: Strategies For Success
Posted By: Ramon Rivas on October 4, 2010 at 8:54 amBy: Joseph B. Smith
One of the best times to invest in foreclosures is to take advantage of foreclosure homes auctions. These auctions provide many exciting opportunities for the buyer especially those who look forward to seeing a lot of different options from which to select their properties. When a defaulting borrower fails to make current his obligation to the bank or lender, the latter would then try to sell the property in a public sale in order to recover its money. Since banks would be aiming for a quick sale of these properties, it is not uncommon to find foreclosure homes that are truly priced way below their actual market values.
Strategize Your Entry
Of course, joining foreclosure homes auctions is not an easy task particularly to those who have yet to experience one. The good news is you can actually learn it in an easy manner and in a short time. By researching how an auction is conducted, one can have a good idea on how to participate. An auction is a special event that has its own set of rules that a participant must follow to be able to bid. It would be thus helpful if you know these rules so that you can conform to what is required in the event.
One good strategy is to attend an auction first without bidding. Your goal here is to primarily just observe how everything works in an auction. Observe the people, bidders, auctioneer, the bid amounts and the properties being sold. Interact with the bidders and subtly ask questions that may help you when your time comes to bid. It would be a good thing if you can do this at least three or four times before you join one yourself. In this way, you become familiar with the whole process and confident to bid on your own.
In addition, researching the properties before the conduct of foreclosure homes auctions is a good strategy. This means that you can build a list of properties that you are going to bid for based on the results of your research. In this way, you will avoid wasting time and opportunity at the bidding event itself. When you have a list of foreclosure homes that you are confident about, you will never have to worry about going home unsuccessful.About the Author
Joseph B. Smith has been educating buyers on the finer points of foreclosure homes auctions at Foreclosure-Auction.net for over five years. Contact Joseph B. Smith through Foreclosure-Auction.net if you need help finding information about foreclosure homes auctions.
(ArticlesBase SC #3379214)
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| Filed Under: Articles , Foreclosures Tagged with Advantage Homes, Amazon, Auction, Auctioneer, B Smith, Banks, Bid, Bidders, Find Homes, Foreclosure Auctions, foreclosure homes, Foreclosures, Market Values, Money, Obligation, Participant, Short Time |
Sep
28How To Find Potential Cash Buyers in Minutes
Posted By: Ramon Rivas on September 28, 2010 at 3:58 pmHow To Find Potential Cash Buyers in Minutes
If you liked the video, a quick comment down below is greatly appreciated. Thanks for watching!
Finding buyers is essential for a Real Estate business. It is equally as important as finding the deals. Recently, I’ve been asked by many people if Xima can be used to generate a list of buyers, so I decided to shoot a video explaining how to find potential cash buyers using Xima.
I want to thank you for taking time to review this information. Please send me a quick comment below, I want to know your opinion about the article. Also, you can always subscribe to receive updates when articles like this are published.
Xima USA provides the best and most accurate foreclosure and pre-foreclosure information, data, and statistics available, making it a valuable resource to invest wisely Xima USA offers you everything you need to profit from foreclosure investing. It is your one stop destination to search for foreclosed homes, foreclosures Florida, properties with positive equity, short sale, pre-foreclosures or distressed homes. It creates comprehensive property comparison reports in a specific area, giving you a very powerful tool when making or negotiating an offer. XimaUSA is mainly geared towards real estate brokers and investors, and the main purpose is to identify the best investment properties. You are able to search for properties with 30%, 40%, or even 50% equity, and identify possible short sales. You can also identify distressed sellers and FSBOs, so you may easily get those hot listings.
All this information is collected from many different sources and presented to you in one place, in a very easy format. This will give you the ability to get MLS listings information, public records, mortgage, pre-foreclosure and foreclosure details, you can get comparables of active listings, closed sales and rentals. Best of all, you can customize and print reports, mailing lists and labels for easy mailings.
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This brings up the first thing to consider when comparing buying versus renting: the amount of time you’ll be there. Buying and later selling a home will usually cost about 10% or more of the value of the home. These costs mean that if the home only went up in value 10% or so in the year or two you lived there, you won’t be gaining anything (equity gain from principal pay-down is very little in the first years). You’ll often be better off renting if you’ll be in a town for less than a few years.
What about towns with faster rates of appreciation? Have you done some serious homework? If not, to assume appreciation will be more than the rate of inflation is just gambling. The sellers in the example above sold for the same price they bought the house for two years earlier – and this was in a decent and growing area. You can’t count on fast appreciation.
To Buy Or Rent – Cost Comparison
Looking at buying versus renting, you have to take into account that in many places it cost much more to buy. For example, in Miami a home can cost $200,000. The mortgage payment, taxes, insurance and maintenance will add up to about $1,600 per month, but you can rent the same size home for about $800.
What does that mean? Many real estate fanatics will say you’re at least buying something for your money, and renting is throwing your money away. Of course in this example more than $1,000 of your payment will be going towards interest alone, and that’s not buying you anything.
Suppose you can afford the $1600 per month, but instead you rent for $800 and put the other $800 into a decent safe investment that makes you 5%? In three years you’ll have over $30,000 in this account. If the home appreciated at 6% per year, it would be worth $231,000. The costs of initially buying it and then selling it would be around $13,800 (2% buying and 6% selling), leaving you with a gain of about 19,000 once we include your principal pay-down.
In other words, you would be at least $11,000 better off if you rented and banked the difference. Every market is different, of course, so you have to do the math. Compare the total costs of owning versus renting, and then make safe assumptions about the rate of appreciation for homes.
If you’ll definitely be in one place for a long time to come, it will almost always be better to buy than to rent. In the last example, buying becomes a better bet after about four or five years. Also consider that if you get a fixed rate mortgage, your payment will never change, a benefit landlords won’t offer you that on your rent payment.
To sum up, look at the time you’ll be there, the comparison of total monthly costs, whether rents are going up fast, and whether you have good reason to believe home prices will be going up fast. Then look also at all the personal factors. Do you want to be responsible for the maintenance, yard work and unpredictability of ownership problems?
To buy or to rent? In the end, you have to work this one out by yourself.
| Filed Under: Articles Tagged with Adsense, Amount Of Time, buy rent, buying versus renting, Circumstances, Closing Costs, Cost Comparison, First Years, Google, Homework, Insurance, Investmen, Money, Mortgage Payment, Rate Of Inflation, Real Estate, Real Estate Market, Rent, Selling A Home, Young Couple |
Aug
06Short Sales Negotiations Little Hidden Secret
Posted By: Ramon Rivas on August 6, 2010 at 7:30 amShort Sales Negotiations Little Hidden Secret
If you liked the video, a quick comment down below is greatly appreciated. Thanks for watching!
In this video I show you a Little hidden Secret that I believe will help you in finding the best short sale deals for negotiation. Today’s market is flooded with potential short sale properties that are not even listed for sale, and even tough short sales are not very popular due to all the negotiation work needed, there is a huge potential to make a lot of money in negotiating short sales now.
I hope you enjoy the video and subscribe to our database to receive a notice every time we release a new video tip.
Xima USA provides the best and most accurate foreclosure and pre-foreclosure information, data, and statistics available, making it a valuable resource to invest wisely Xima USA offers you everything you need to profit from foreclosure investing. It is your one stop destination to search for foreclosed homes, foreclosures Florida, properties with positive equity, short sale, pre-foreclosures or distressed homes. It creates comprehensive property comparison reports in a specific area, giving you a very powerful tool when making or negotiating an offer. XimaUSA is mainly geared towards real estate brokers and investors, and the main purpose is to identify the best investment properties. You are able to search for properties with 30%, 40%, or even 50% equity, and identify possible short sales. You can also identify distressed sellers and FSBOs, so you may easily get those hot listings.
All this information is collected from many different sources and presented to you in one place, in a very easy format. This will give you the ability to get MLS listings information, public records, mortgage, pre-foreclosure and foreclosure details, you can get comparables of active listings, closed sales and rentals. Best of all, you can customize and print reports, mailing lists and labels for easy mailings.
If you are viewing this post from a feed reader and cannot see the video,
please click here to be directed to the website and play the video
If you liked the video, a quick comment down below is greatly appreciated. Thanks for watching!
In this video I talk about Shadow Inventory. In Real Estate, Shadow Inventory are those properties that are likely to come into the market in the near future. An example of Shadow inventory can be homes taken by banks in the Foreclosure sale at the courthouse (also known as Bank Owned, Corporate Owned, or REO – Real Estate Owned) that haven’t been put in the market yet. Another example could be properties in Pre-Foreclosure (homes that are in the process of Foreclosure) that are not listed for sale yet, or even some people consider Shadow inventory the homes that are upside down (The Mortgage Balance is higher than the property’s value) and not yet in Foreclosure and are not listed for sale. I don’t necessarily agree that the last group of homes should be counted as Shadow Inventory, because a lot of them are still making payments, but the people that count them as Shadow Inventory bet on most of them stopping payment soon and letting the house go to Foreclosure.
Anyway, some people are estimating that Shadow Inventory could reach up to 8 million homes or more Nationwide in 2010 and they say we expect sales of about maybe 5 million homes only, which may cause another depression in home prices again for 2011, and it could take years before all the shadow inventory is sold.
Now, I am not going to get into details about whether this is good or bad news, it all depends on how you look at it. If you are in the Real Estate as an investor, and you know what you are doing, you could make a lot of money in the next few years.
In this video I show you how to use the power of information to be on top of your local market. People love to talk about nationwide numbers, and I understand it gives you an idea, but you need to know your local market, because most times your market is not going to be anything like the nations average. In the video I concentrate on the shadow inventory coming from Foreclosures that are not for sale as shadow inventory, and I show you how to get the number in your county by using Xima.
Since my time is limited on the video, I was only able to demonstrate the calculation for Miami Dade, but I present a table below with the numbers for all the counties we have available with Xima:
Shadow Inventory of Single Family Homes as of today July 28th, 2010:
| County | Real Inventory* | FSI** |
| Bay | 1,557 | 205 |
| Brevard | 4,589 | 977 |
| Broward | 10,848 | 9,985 |
| Charlotte | 2,845 | 662 |
| Collier | 4,089 | 742 |
| Dade | 8,806 | 7,431 |
| Duval | 6,325 | 2,375 |
| Gadsden | 58 | 21 |
| Hillsborough | 8,068 | 3,497 |
| Lake | 3,967 | 958 |
| Lee | 8,642 | 2,908 |
| Manatee | 3,354 | 645 |
| Martin | 1,290 | 104 |
| Monroe | 1,211 | 85 |
| Orange | 8,576 | 7,585 |
| Osceola | 3,111 | 2,657 |
| Palm Beach | 11,939 | 2,542 |
| Pasco | 5,320 | 1,182 |
| Pinellas | 9,198 | 2,414 |
| Polk | 5,691 | 2,296 |
| Sarasota | 4,502 | 724 |
| Seminole | 3,077 | 1,496 |
| Saint Lucie | 3,059 | 330 |
| Volusia | 4,917 | 1,406 |
* Total Inventory: All Single Family Homes Listed for sale by Real Estate Agents as of 07/28/2010
** FSI (Foreclosure Shadow Inventory): All Foreclosure Single Family Homes not yet listed for sale by Real Estate Agents as of 07/28/2010
These are only the numbers for Single Family Homes, I didn’t include numbers for Condos/Townhomes/Villas. Also, I decided to include the Total inventory for every county so that you can make the comparison between the active listings and the number of foreclosures that are not even listed for sale yet. In some counties, when these properties come into the market, the active inventory could potentially double the present the inventory.
Another interesting number to add to this mix would be the total amount of sales year to date for 2010. For example: According to Xima, in Miami-Dade we’ve had 11,232 sales YTD, we have 8,806 active listings, and 7,431 Foreclosure Shadow Inventory properties, a total potential inventory of 16,237 properties. In 2009 there were a total of 20,224 sales in Miami-Dade.
I want to thank you for taking time to review this information. Please send me a quick comment below, I want to know your opinion about the article. Also, you can always subscribe to receive updates when articles like this are published.
Xima USA provides the best and most accurate foreclosure and pre-foreclosure information, data, and statistics available, making it a valuable resource to invest wisely Xima USA offers you everything you need to profit from foreclosure investing. It is your one stop destination to search for foreclosed homes, foreclosures Florida, properties with positive equity, short sale, pre-foreclosures or distressed homes. It creates comprehensive property comparison reports in a specific area, giving you a very powerful tool when making or negotiating an offer. XimaUSA is mainly geared towards real estate brokers and investors, and the main purpose is to identify the best investment properties. You are able to search for properties with 30%, 40%, or even 50% equity, and identify possible short sales. You can also identify distressed sellers and FSBOs, so you may easily get those hot listings.
All this information is collected from many different sources and presented to you in one place, in a very easy format. This will give you the ability to get MLS listings information, public records, mortgage, pre-foreclosure and foreclosure details, you can get comparables of active listings, closed sales and rentals. Best of all, you can customize and print reports, mailing lists and labels for easy mailings.
If you are viewing this post from a feed reader and cannot see the video,
please click here to be directed to the website and play the video
