There’s just one little problem with your plan.

You’re not the kind of person who does well dealing with tenants, being assertive, being all “landlord-like” and doing what you have to do to get paid on time.  Yet you have to get paid on time to keep your plan on track.  And so you are considering doing something that anyone familiar with your situation has probably already suggested – going to a professional property management company that can take those kinds of problems off your hands.

A good professional property manager can help make sure that you get to enjoy the benefits of your investment while minimizing how much you have to deal with the business end of it.  Does it always work out well when you use professional property management companies?  Or is there something you need to be aware of?

Well, let’s take a look at a few points that some people have brought up.

The big promise in the whole property management business is that they completely take the hassle out of being a landlord.  You don’t have to worry about faulty wiring, or if the furnace breaks down or there is water leaking through the roof, you’re not going to get a call in the middle of the night reporting that something awful has happened to your house requiring your immediate attention.  It’s all taken care of, and nothing could be more wonderful than that!

But think about what happens when you’re renovating and a contracting firm tells you that they’ll take care of everything for you.  For instance, when you hire a home decorator or a building contractor to build your house for you, do you just give them the money and walk away?  You still have to be involved in anything involving employing other people because no one ever does their job properly unless they are held accountable.

The kind of person who hates to get caught up in paperwork, forms and that sort of thing – that’s the kind of person who hires a professional property management company.  Now these companies will usually take care of everything for you – right from advertising for new tenants to screening them, signing them up, billing them, collecting and so on.  If there is one thing in which they excel, it is the technical details in this tedious routine.  If you’re the kind of person who just can’t take all the paperwork that goes into property ownership, a professional property management company is exactly what the doctor ordered.

But you do need to be willing to pay.  The typical payment is $100 a home every month for your standard-sized home.  When you consider all the financial responsibilities that go into owning a home, from the mortgage payments to the property taxes, the burden of paying a professional management company may be the difference between operating with positive cash flow or not.  However, you may try to get around this by adding management fees right into the rent.

If the home you’ve bought is brand-new, there will be practically no maintenance work to worry about.  New homes come with a guarantee.  If anything stops working, you just need to call the manufacturer of the thing that’s broken.  Basically, if you’re hiring a property management person just to take care of this sort of thing, it’s not worth it in the first year of your time being a landlord.

If your home is an older one though, such a move may make a lot of sense.  There comes a point where you have to calculate how much your time is worth, and how much time a professional property management company can save you.  Does the time saved and services rendered justify the cost?

If you shop around, you should be able to find a professional property manager who will tailor a property management agreement that will cover the most important situations for you, at a rate you can afford.

Even in the field of real estate there are several different ways to get involved in real property investment.  Each strategy involves varying degrees of risk on behalf of the investor.  If careful consideration is taken, most people can find a type of real estate investment that is suitable for them, though there are some people for whom real estate will never be a good investment.

Those who are simply not cut out for real estate investing are those who love to watch the ticker roll across the computer monitor or television screen indicating the worth of their portfolios on a regular basis.  Those who need to see the wisdom of their investment practices reaffirmed daily as opposed to those who are content to sit on their investments as they take shape or are willing to actively work in order to make their investments pay off.

Buying and holding real estate involves purchasing property and holding on to it for a reasonably long time while the value of the property appreciates in value.  Speeding up the process requires someone that is very savvy when making purchases or extremely lucky for the most part.  For the rest of us however, it involves someone who has the patience and tenacity to hold on to their investments for a long period of time.  These investments can provide a nice retirement for the right investor as well as funds at the proper time for a child’s wedding or to pay for college.

Rental properties are another excellent way to make money for those who are willing to deal with a long-term property investment and the additional responsibility of managing it and keeping it rented.

In this type of investment money comes in each month to help pay down the mortgage and cash can be made once the property is paid for and sold later in life in order to receive a more complete and total profit from the endeavor.  There is some degree of expense along the way that is involved in keeping properties up to date and in demand however the benefits of this particular type of investment are almost undeniable for the right investor.

Flipping is another type of real estate investment that is receiving a large amount of press these days.  This process involves purchasing a property below its value, investing in repairing or rehabbing the property, and then reselling the property for a substantial profit.  This is one of the few short-term kinds of investment that can be highly profitable when it comes to real estate investing. There are others but those carry even greater risks than flipping.

Of course there are high-risk real estate ventures for those that need a little excitement in their lives. One of the more common high-risk investments would be pre-construction real estate investing. With this form of investment the investor is actually ‘betting’ that the future property will sell for a higher price than the investor paid once the building is complete.

Whether your investment needs are low-risk, high-risk, or somewhere in between there is quite likely a style of real estate investment that will be appropriate for your specific investment needs. If you do not find a real estate investment plan that is right for you then do not despair there is no style of investing that is right for everyone.

Real estate can be one heck of a money-making venture to get involved with.  However, in the past few years there have been some major changes in the real estate market.  Primarily, the value of properties all across the United States has seriously plummeted.  Homeowners in virtually every city and state are feeling the harsh reality of a depressed real estate market at this point.  Then again, if you are looking to buy a home, that is a completely different story.  It is certainly an ideal time to purchase a piece of fine real estate.  After all, homes that would have sold for $600,000 five years ago are barely selling for about $300,000 now.  This is a sobering reality check for many people who own homes and need to sell them.

As you may very well know, you actually can sell your own house.  In fact, this may very well be the way to go at this point.  While some real estate agents will work hard to sell a property for you, others may not put that much effort into making the sale.  It all depends on who you are dealing with.  One problem with hiring an agent is that they need a commission when the sale is made, and this often means a good six percent of your home sale will go to them.  That can be a lot of money to give up, and a good reason for selling your house yourself.  The key is to explore the market prior to attempting a sale.  Find out what the other houses in your area are selling for, and how they compare to your home.  This way you can get a good idea of your home’s current value.

Another reason to sell your own house without an agent is the practice of dropping the price.  If you have never tried to sell a home before, then you might not be aware of this, but a real estate agent will continue to drop the price on your home until it sells.  In fact, he or she will strongly encourage you to do so until the sale is made.  Do you think the real estate agent is doing this for your benefit?  Think again!  He or she is trying to make that sale so that he or she can acquire the six percent commission.  You have to realize that their commission will not be affected much by a two, three or even five thousand dollar drop.  They know that they will still take a good chunk of cash to the bank when the house sells.

If you are completely new to real estate selling, then you may want to do a little extra research before selling your house yourself.  For instance, there are certain times of the year when you will be able to get more for your home.  This is why many smart people purchase houses in the winter.  They know that no one is really looking to move into a new home.  Therefore they can likely get a much better deal during the winter season.   It is sort of like purchasing a bathing suit in the fall when no one wants one.

Is It A Good Idea To Sell Your Home Yourself?

by Casey Serin under CC BY  with wpseopix.com

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Are you thinking about selling your home yourself instead of hiring a real estate agent?

There are several advantages of selling your home yourself, but there are disadvantages as well.  To make it easier for you to make a decision, look at the most important pros and cons below.

The most important PRO for selling your home yourself is MONEY.  Selling your home without the help of an agent means more money in your pocket!

By selling it yourself you save the commissions and fees.  We are not talking about pennies here, we are talking about THOUSANDS of dollars which you would otherwise have to pay an agent.

Another advantage is that you are able to decide the times for open houses and showings.  It is also completely up to you where, when and how you want to advertise.

Unlike a real estate agent who is selling many houses, you can focus on YOUR house, because you are only selling your own house.  It is obvious that you will have more interest in a successful sale under favorable terms than an agent.

But as mentioned above there are also disadvantages to selling your house yourself.  Real estate agents are paid a lot of money with good reason.  Selling a home takes a lot of energy and time.  Dealing with potential buyers, open houses, closing sales and of course dealing with all the legal issues.  Real estate agents are familiar with all of the above and their experience can impact the sale.

Be realistic when making a decision!  Will you drop everything to make a showing?  Do you think you are indeed a good negotiator and can ask for an offer?  Are you 100% sure you are able to close the deal?  Selling a home is a big project!  It is not everyone who can take on such a big project and can stay calm and professional when dealing with buyers.

Selling your own home without a realtor is not impossible, but it is a challenge.  If this challenge excites you and if you are willing to learn then it is not impossible to manage selling your home without the help of an agent.  With some know-how and a lot of energy you can sell your house without the help of a real estate agent and save thousands.

So how to start?  Sit down and start evaluating your house.  Finding the right price is the first and most important step when selling your home yourself.

Selling Your Own Home Can Be Tricky

by Images_of_Money under CC BY  with wpseopix.com

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These days, people are trying to cut costs wherever they can and that is generally a good thing.  When it comes to selling your home, however, you need to think twice before attempting to do so without the services of a licensed professional Realtor.  There’s a reason that Real Estate agents are fully licensed and insured by the brokers that they work for and it’s because selling homes can be tricky and you need to have some knowledge and experience behind you.  There are so many things that happen with even the most basic real estate transaction and so many things that can and will go wrong if you don’t have the knowledge and experience that is absolutely vital to have.

Think about the different aspects of a typical real estate transaction and what an agent’s function is and what their duties are and you will see that selling your own home is not the cakewalk that you were told it was going to be. First of all, you need to find out what your home is worth and that means either your agent knows the market so well that he or she can tell what that home will go for or you will need to pay for an appraisal.  Then you need to advertise that the home is for sale and this can involve anything from ads in local papers and newsletters to online listings and banners, etc.  You then have to be prepared for showing the house at Open House events that you will have to create, plan, advertise, and carry out yourself.

Even if you have a buyer all lined up, who is going to prepare the offers, counter offers, and the actual purchase contract?  You need to know about contingencies and clauses that need to be inserted into standard contracts that will protect you from claims by the buyer.  You need to fill out a long Disclosure Statement and it has to be an honest, no holds barred detailed description of the home or else you could get sued for omission.  By the way, all Real Estate Brokers in California need to carry extensive Errors & Omission Insurance by the Department of Real Estate for this very same reason.  You don’t want some sue-happy buyer coming back to you in six months because you forgot to mention that the basement walls had little cracks starting in them.

Which brings me to my next topic which is the home inspection itself.  Normally a good Real Estate agent who knows his territory will also know of a reliable Home Inspector.  In fact, a good agent will also recommend the services of an appraiser, a loan officer, moving companies, title companies, escrow, etc.  That set of services alone might make it worth your while to dismiss the notion of selling your house yourself and seriously consider employing one of the very talented and reliable Realtors in your area.

This could be one of the biggest deals you ever make in your life.  Do you really want to run the risk of making a mess of it?

Put the Commission in your own Pocket – Learn how to Sell a House without a Realtor

Now selling a home is one of the biggest transactions the average person will ever get to make over his entire life.  When you’re going about the biggest thing you’ll ever do, do you go and experiment or do you take the tried and tested path?  When it comes to selling the house, the usual thing to do – the thing everyone does – is to find a realtor.  Do you dare take matters into your own hands by selling your house yourself?  Do you even know how to sell a house without a realtor?

But first things first.  Why would you even want to learn how to sell a house without a realtor?  Well, how about the fact that they charge a pretty hefty commission?  If you’re going to be doing this a few times in your life, you’ll be out tens of thousands of dollars.

But perhaps it’s just that calling him a “Realtor” makes it sound important and intimidating for no reason.  Let’s take a closer look at what exactly it is that a realtor does.

Basically, it’s a realtor’s job to list your property all over the place with what’s known as the Multiple Listing Service (MLS), to put out advertisements everywhere to market your property, to show interested parties around and then to be the intermediary when an actual customer walks in.  Could you do this yourself?  Many have tried, succeeded and profited.

The first thing you want to do before you even apply to have your property listed on the multiple listing service, is to find out how you can price your house aggressively and competitively.  You need to do your research on the Internet to look for how much homes in the area are selling for.  Understand that you’re trying to sell the house, not hang on to it for three years looking for the best price.

Once you’ve arrived at a number, the multiple listing service is where you head for next. If the MLS is not open to the public in your area, you can search on the Internet for an MLS listing service, pay the $500 or so that they ask for, and be done with it.

You have to take some time to list your property in a few places, and hold an open house.  If you have ever been to an open house, you know what to do – you just post a few ads in the neighborhood, get the house nice and clean, order a few refreshments for the visitors and take visitors around.  Make sure when you walk your open house guests around, that you are prepared with a good set of benefits and features to talk about and show them.

It’s pretty easy up to this point.  All you need to do now is prepare to enter into negotiations.  You’ll probably do best to go to an attorney to draw the proposal contract up.  If you don’t feel up to the task of negotiating the purchase price, you can have the attorney do that for you too.  You should understand how doing it without a realtor does have an advantage.  The realtor is always in a hurry to finish things up so that he can get his commission.  You or your attorney, on the other hand, are interested in the most favorable sale conditions.

And that’s about it.  Certainly, it’ll take a few days of your time to learn about selling your house yourself without a realtor.  But that’s worth several thousand dollars now, isn’t it?

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However, sometimes the value of a property is already low.  If you have run into a property that is like this, you will want to decide if it is worth investing in.

Whether distressed property is worth investing in is one of the questions that many aspiring investors ask when investing into real estate.

If a property is distressed, it means that it has not had the care and attention needed by the previous owners.  Most likely, the home is part of a foreclosure, abandoned home, or other problem and may have not been lived in for a quite a while.  Any distressed property will need a lot of attention given to it if you decide to invest in the property.

Before looking at this type of property, you will want to make sure that it will be worth your investment.  While a distressed property will usually go down thousands of dollars because of the quality, it may not be cheaper.

It will be expected that you put a specific amount of work and money into the home in order to repair it and get it back up to having a decent market value.

If you are able to get an extra loan, have more money, and want to fix up a home, then a distressed property may be for you.  However, if you don’t want to put in the extra effort, then finding this type of property may actually lose you money and hinder being comfortable in your own home.

You will also need to decide whether you will be able to profit from the investment in the long run according to the neighborhood, market, and your intentions for using the property.

The first step toward successfully investing in distressed real property is understanding the nature of the problems associated with the ownership, use or occupancy that make the real property distressed.  The most common problem leading to distress is a foreclosure.

Foreclosures involve liens.  Liens are an interest in real property held by a creditor, consensually or non-consensually, often to secure an obligation of the owner or a prior owner of the property.  In a foreclosure, a holder of a consensual lien (mortgage) or a non-consensual lien (involving creditors: mechanics lien, broker’s lien, tax lien, municipal lien or judgment lien) is seeking to extinguish the interests of subordinate lien creditors (those with lesser rights) and rights of the owner of the real property; and to sell the real property at a judicial sale to satisfy the indebtedness securing the foreclosing lien claimant’s lien.

Most states require real property foreclosures through a lawsuit, with the owner and all other interest holders given an opportunity to be heard in court.  Mortgage foreclosure laws are harsh, but generally provide the property owners an opportunity to reinstate a mortgage on residential property or to pay-off the indebtedness securing the mortgage, prior to the loss of the property through judicial sale.  Foreclosures often involve complicated issues of law and fact, and this is especially so when the owner of the property seeks to stop a foreclosure through the filing of a bankruptcy petition.

Numerous “problems,” other than foreclosures, can cause real property to be “distressed.”  Any of the following situations, some of which do not involve the financial distress or creditor issues of the property owner, can cause property to be “distressed,” and thus present a great investment opportunity for the knowledgeable investor:

*Serious disagreements between owners of the real property, including stemming from a divorce or dissolution of a business organization related to the real property
*Environmental contamination of the property
*Unpaid real estate taxes
*The inability to obtain municipal authority for the use or proposed use of the property
*Real property involved in a bankruptcy case
*Landlord-tenant disputes
*Probate and inheritance problems
*Building, fire and other municipal code violations
*Disputes arising over the rights of non-owners to enter or use the property through easements or licenses

While the truism of “location, location, location” might apply to real property in general, the axiom for distressed property is “homework, homework, homework.”  This represents the second and most important step in successfully investing in distressed real property.  Investigating distressed property includes the typical “due diligence” required for non-distressed property, plus an exhaustive, on-going review of all legal, business and financial matters that are causing, complicating or mitigating the distress of the property.

This investigation requires much more than just the typical fact-gathering.  Distressed property can involve a veritable minefield of complicated legal and financial problems, which, at first glance, might make the purchase price attractive, but could lead to great expense after the purchase.

In all business acquisitions, a good, fluid and flexible strategy is very important.  This is especially true in acquiring distressed property because the purchase of “distressed” real property often does not involve a willing seller, at least at the early stages of “distress.”  And, as the investor approaches the latter stages of distress, when the owner’s consent is no longer or less of an issue, or the owner is more desperate and commensurately more amenable to a sale, the competition among interested buyers increases dramatically.

Timing is critical: positions and motivations change quickly with distressed property.  An investor in distressed property must have the ability to close a deal quickly, especially where there is competition for the property.  To be a “player” in this arena, “Cash is King”: you need immediate access to money to close, and you cannot delay the deal with financing contingencies or otherwise involving your prospective lenders.  This is especially true with foreclosures where the sale is an auction.

Because so many aspects of distressed property involve technical legal issues, sharing the responsibility of pre-sale investigation and formulating an acquisition strategy with a competent lawyer is critical to avoiding pitfalls and increasing the likelihood of success.  Having ready access to qualified real estate professionals as advisors is another important step in successfully investing in distressed property, where the investor must rely on a qualified lawyer to assist in maneuvering through the potential mine fields.

But, in this age of legal specialization, it is difficult to find a lawyer that has sufficient breadth of experience in all of the important areas of real estate litigation and development, bankruptcy and insolvency, mortgages, credit facilities, leasing, brokerage and construction law relating to residential, commercial and industrial properties.

The search for a qualified lawyer is as important as the search for qualified properties.  Seeking advice from real estate professionals, coupled with the investor’s own investigation is advisable.  But, the savvy investor should not substitute his own “hands-on” investigation, without the assistance of a qualified lawyer, in the hope of saving on professional fees.  In the end, this could lead to a very costly mistake.

There are great opportunities in buying and selling distressed real properties in this economy, especially when interest rates are low and there are qualified buyers available to “flip” the properties to realize a quick profit.  And remember, with good professional assistance and careful investigation, the risks of investing in distressed properties can be greatly minimized with substantial returns on your investment.

While a distressed property can be of great benefit in your investing plan, it will need to fit your goals and your lifestyle in order to be an effective investment.  As long as you have assessed your financial stability and goals and are able to put in the extra money, time and work, you can take a distressed property and turn it into what you want.  This will give the property the dream of moving from rags to riches.

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The long and short answer to that question is absolutely and I will do my best to explain exactly why this is so.

First of all, a real estate inspection is the act of having a qualified (and in many states, licensed) professional take a look around the property you are considering and informing you of obvious and potential damage or problems with the property.  This is not something you want your uncle Bob doing, unless of course, good old uncle Bob has had the training and experience to know what to look for in an inspection and know what those things could mean.

Many who are planning to flip properties enter into the situation (particularly first time flippers) with the attitude that they know there are problems with the property and that is why they are purchasing the property.

The problem is that the untrained eyes may miss some problems that should be addressed before moving along to other problems.

For instance, if there were obvious signs of plumbing problems that could result in a leak behind the wall, you wouldn’t want to paint that wall or replace the floors until you had the possible leak checked and either confirmed or denied and repaired if necessary.  Otherwise you would likely need to undo the work (wasting both time and money) that had already been done by the time you found out about the leak that a competent inspector would have told you about before you even began working on the property.

Inspections are great before placing the bid on a house because they actually give investors a bargaining chip.  For the true (at heart) investor this is a fact that simply cannot be ignored as it directly affects the bottom line price.  If the roof needs to be replaced you are justified in offering a lower amount.  If the electrical system needs to be updated, this is something that should be adjusted or amended in the final offer.  These are also things that are easily identified by a qualified and competent property inspector.  Any thing that can save time and money is great when investing in property and an inspection can do both.

Another great thing about a good property inspection is that it often sheds light on the amount of money that will be needed in order to get the house in good working (or “flippable” order).  Knowledge is very important in this line of work and can mean the difference between taking on a project (if the repair budget won’t exceed the eventual value of the property) or walking away if the expenses would be too great to turn a decent profit.  As an investor you should never take on a property that is pretty much guaranteed to be a failure, it is simply not a wise financial move to make.

It doesn’t matter how much the property calls to you on a personal level, in the business of investing the bottom line is the only call you should be taking.

More importantly however than any of the things mentioned above, an accurate home inspection can inform you of potentially hazardous conditions within the home that the untrained eyes may not take notice of.  Some of these things include toxic mold (which can be financially disastrous as well as hazardous to your health), foundation issues, and structural damage that is threatening the integrity of the property.

An inspector should also notice the structural integrity of homes that could affect your home if they are weakened or fail all together.  While these things seem so simple, it is often the simple things that lead to the greatest disasters.  Whether or not you realize it, a good home inspector is one of the best tools you can have in your arsenal when it comes to flipping real estate as an investment venture.

After being used for several years, homes just like anything else are bound to have deformities here and there.  While some of these deformities are easily discernible, others cannot be seen as easily and for these, accurate home inspections are necessary.  Among the places that need to be inspected accurately in the house are: behind insulation, in walls, floors and so on.

There are three ways through which a real estate inspection can be undertaken and these can be by the owner of the house, a hired contractor or a company that solely deals with home inspection.  Professional property inspectors are probably the best choice if the inspection of a home is to be accurate, and for these one should ensure that they only hire an experienced and affordable inspector who only has their interest in mind.  Home inspectors that are referred at times have problems with morality.

Accurate home inspections are quite necessary as they help a home buyer to make an informed decision before buying a particular property.  There is also the anxiety that comes with buying a new home and a good home inspection is one way to put any anxiety a potential buyer could be having to rest.  For home owners, real estate inspection is beneficial as well because it helps them improve their homes thereby raising its market value.  A home owner will also be spared contract contingencies if they undertake home inspection because they will implement the advice given by their inspector and hence repair anything that needs rectification.

Prior to undertaking the project one should, however, carry out some preparations, and the first of these is clean and scrub the home.  This will help the inspector in having an easier time as they inspect the house.  The owner of the house should also ensure that every utility in the house is functional.  Such utilities include the gas stove, furnace, air conditioner, and dish washer.  Checking if they are functional will also help to examine outlets in case of reverse grounding or polarity.

In order to carry out accurate home inspections all remote controls and keys should be made accessible.  These are what will enable the inspector to get into electrical boxes, garage, basement and outbuildings.  The exterior areas should be cleaned as well and this includes removing trash from the area as well.  All documents pertaining to any repairs that have been done should also be kept handy for the perusal of the person who is going to carry out the inspection.

Standard accurate home inspections follow a particular checklist with specific parts of the house and what should be checked there.  For instance the crawl space/basement should be checked for moisture, cracks, mold, settling and stains.  As for floors the inspector should look for split or dry wood and water damage.  Walls on the other hand should be checked for bulges and settlement.  A good home inspector should also not leave out the wiring, plumbing bathroom and kitchen.  If all these are undertaken as it should, then the home can be said to have undergone an accurate inspection.

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Adjustable-Rate Mortgage Payment

People are asking if home loans in newspaper ads showing astonishingly low rates are for real.  These ads are for what we call adjustable-rate mortgages.

Loans with an adjustable-rate mortgage payment type usually have low rates only for a short time.  Rates of an adjustable-rate mortgage payment are adjusted on a regular basis, usually after the first year is over.  This means that the interest rate and the amount of the monthly adjustable-rate mortgage payment may vary, going either up or down.

With adjustable-rate mortgage loans, there is little chance of you knowing what your future monthly payment would be.  Some types of adjustable-rate mortgage payments have limits to the interest-rate increase.  When an adjustable-rate mortgage reaches a certain percentage, the interest rate will no longer increase for the duration of that period.  But at the end of that period, the adjustable-rate mortgage payment will vary once more.

Determining whether or not an adjustable-rate mortgage is the right type of loan for you usually depends on your financial situation.  Also, it depends on the type of adjustable-rate mortgage payment you plan to make.  Adjustable-rate mortgages have characteristics that might ultimately prove risky in the long run.  Because the dynamics of interest rates in the market are never certain, the amount of your adjustable-rate mortgage payments are uncertain as well.

Adjustable-rate mortgage plans generally have lower initial interest rates compared to fixed-rate mortgages.  This makes an adjustable-rate mortgage payment more affordable and easier on the pocket.  Adjustable-rate mortgage payments may also help you qualify for a larger loan.  This is due to the fact that lenders sometimes decide to extend a loan provided that your current income is steady and your adjustable-rate mortgage payments for the first year are up-to-date.

Another advantage of having an adjustable-rate mortgage payment type of loan is that it could turn out to be less expensive in the long run.  With an adjustable-rate mortgage, the chance of interest rates going higher is equal to its chance of going lower.  Now here in also lies the risk of having an adjustable mortgage payment.

When it comes to having an adjustable mortgage, there are no guarantees.  It is either the interest rates will go down or will rise up.  Lower interest rates mean lower monthly adjustable-rate mortgage payments.  Higher interest rates mean higher monthly adjustable-rate mortgage payments for you.  There is no middle ground.  Adjustable-rate mortgage payments are basically a trade-off – you exchange more risk for lower rate with an adjustable-rate mortgage loan.

But despite this, there are some ways to circumvent the risks and increase your chances of landing a good investment in an adjustable-rate mortgage payment.  Below are some questions you need to consider:

• Is there a possibility that my income will rise up enough to cover higher adjustable-rate mortgage payments should interest rates go up?
• Is there a chance that I might take on other sizable debts like a loan for a car or school tuition in the near future?
• Will my adjustable-rate mortgage payments increase even though interest rates remain the same?
• How long do I plan to own this home?  (If you plan on selling soon, an increase in interest rates should not be a problem for your adjustable-rate mortgage payment.)

Variable Rate Mortgage

Variable rate mortgage is another term for adjustable-rate mortgage.  A variable rate mortgage is a type of loan where the initial payments are low.  After some time though, the interest rates of a variable rate mortgage changes on a regular basis.  These changes on variable rate mortgages are affected by several factors, such as changes in investor markets.

Because of its low initial payment, a lot of people like to take on a variable rate mortgage.  Financial reports suggest that the risks you assume in taking a variable rate mortgage are considerable but the gains are even more so.  This is because variable rate mortgages may turn out to be cheaper than fixed rate mortgages in the long run.

Several lenders offer variable rate mortgages among their product lines.  Some of these lenders are listed below, along with a brief outline on their variable rate mortgage product.

Variable Rate Mortgage by ING Direct Mortgages

The ING Direct line of variable rate mortgages offers one of the lowest rates available in the market today.  With a variable rate mortgage interest rate of less than 0.60% for a full five-year term, ING Direct variable rate mortgages are among the top-sellers.

As an added bonus, consumers who buy their variable rate mortgages from ING Direct have the option to convert their variable rate mortgage into a fixed rate mortgage of 3 years or more.  This conversion from a variable rate mortgage to fixed rate can be done any time without penalties.

Every 3 months, ING Direct variable rate mortgage interest rate will be adjusted to reflect their prime rate.

Variable Rate Mortgage by CanEquity Mortgage Canada

The variable rate mortgage of CanEquity is based on a five year term.  However, in this variable rate mortgage, only the first three years are closed, leaving years 4 and 5 open.  This means that the 2 remainder years leave you absolutely free from any variable rate mortgage pre-payment penalty.

CanEquity’s initial interest rate for their variable rate mortgage is 1.74%.  After this initial rate, payments for your variable rate mortgage will be based on CanEquity’s Prime rate of less than 0.40%.

Variable Rate Mortgage by National Mortgage

National Mortgage has three variable rate mortgage programs on its product lists.  All three variable rate mortgages have initial payment rates based on a current Prime rate of 4.00%.  These variable rate mortgage programs have varying terms from 3 months, 6 months, to 5 years.

The 5-year variable rate mortgage has an initial payment rate of 4.25% but for the duration of 5 years, the rate would be less 0.75%.  The same goes for the 6-month variable rate mortgage.  Prime (4.25%) is less 1.40% for 6 months followed by prime less 0.40% for the remainder of the term.  The 3-month variable rate mortgage on the other hand has prime less 2.25% for 3 moths followed by Canadian Bank Prime less 0.375% with 1% cash back and air miles.

Variable Rate Mortgage by Scotiabank

The Scotia Ultimate Variable Rate Mortgage offers their consumers a Cap rate guarantee.  Consumers are given the choice of buying the variable rate mortgage for a rate discount of 0.50% off Scotia’s Prime rate for the full three-year term.  They can also opt to pay upfront cash back of 1.50% of the variable rate mortgage loan amount for the full three-year term.

These rates are of course as of the time of writing and will vary, but this should give you a reasonable idea of how these variable rate mortgage lenders compare to each other and any other adjustable rate mortgage companies you may be looking at.

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Log cabins are generally low-maintenance houses since they are located in far out places and it is obviously not easy to get maintenance staff or equipment there.  Log cabin plans tell the whole story.  Most of the building material including the floor textures used in a log cabin requires very basic maintenance and it looks as good as new.

Owning a log house or cabin is many people’s ambition.  Whisper Creek Log Homes not only design beautiful homes but their methods are environmentally friendly and expert staff work with their customers to make sure that their personal wishes are met.  Only quality materials are used and there is great attention to detail.  Customers are supplied with something that is pleasing to the eye, affordable and maintenance free.  All the different styles on offer are designed to house modern amenities.

The building process means costs are kept down and there is a quick turnaround from ordering to final construction.  Handpeeled round logs are used for the exterior and erecting the walls and gable ends is a simple affair.  Next comes the ridge beams and purlins, followed by the roof. It’s the best of both worlds, of housekits and craftsmanship.

The exterior of a log cabin has to face the nature’s wrath and thus is very simple to maintain.

However, some people might like to keep the interiors of the log cabin in a very good condition and might use professional maintenance and restoration services.  These services provide detailed maintenance services for the log cabin and do not come cheap.

These designs often feature in home display shows.  Their environmental credentials begin with the choice of log exteriors, which are taken from ‘dead stand trees’, i.e. trees that have been damaged due to fire or other natural causes.  The timber used and method of construction employed ensures that warping, cracking and shrinking is avoided.  This saves energy as there is no loss of heat and the construction is draft proof.  So, whether the Whisper Creek Log Home is for a weekend retreat or a full time home, it will be economical to run.

The first step is to find the nearest dealer and arrange a free consultation.  Guidance on the design of the exterior and the interior fittings will be given from the start until completion.  Finally, the home is shipped from the factory and the proud new owners can enjoy their new log home from Whisper Creek.  The choice of size is probably the first consideration and designs range from floor plans for 750 square feet up to 6,300 square feet.

Some of the steps of maintenance for a log cabin include staining of the interior and exterior wood, chinking repair and replacement, borate treatment to safeguard against pests, stay dry, chemical strip and cob blasting.  Deck cleaning and sealing are also important since that is where most of the time of the log cabin residents is spent.

Traditional rustic cabins have stood the test of time and the company continues the familiar covered porch and steep pitched roof style.  There are different window styles but all are double-glazed vinyl, so there is no maintenance.  Customers can choose vertical or horizontal window sliders.

The interior has to look as good as the exterior and Whisper Creek Log Homes only select the best fittings for each room.  Flooring can be carpet, tiles or hardwoods.  Of course, every picture of a log cabin promises a cozy fire inside.  The homes contain fireplaces with a gas or wood burning fire and the surrounds come in different finishes including stone.

Log cabin plans should include inspection of the entire log cabin along with finishing of rough edges as part of the maintenance procedure.  If you are a log cabin owner and rent it out on frequent occasions to holiday-makers then good maintenance will go a long way to fetch you an attractive rental income.

The all important kitchen has to be pleasing to the eye but practical too with lots of counter top space and cupboards.  This room is often at the heart of any family home.  Bathrooms should have clean lines and plenty of light.  Both kitchen and bathroom cabinets come in a choice of melamine, wood or painted lacquer doors.

Apart from that, the overall value of log cabins tends to be higher if they are well maintained and clean.  A quick search online will provide you with details of a number of agencies who deal in maintenance services for log cabins.  It is advisable that you narrow down your selection to a few companies in the region where your log cabin is situated and take comparative quotes for them for the maintenance requirement and then make a decision.

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There are many different things that you can put your money into when you want to make more money.  Investing is very common, and can be a great way to save for retirement or to pay for a college tuition.  Whatever it is that you want to do, you can have your money making more money for you.

This is always something that is a little risky, but there is plenty of money out there to be made.  Some like to put their money into real estate investing, and if they know what they are doing, they can make a lot of money doing so.

When you are first starting out with investing in houses, you should always look for ugly or bad houses that need a lot of work.

These homes are much cheaper to purchase, although they will take some work to improve.  You should start out by looking for houses that need some work, such as clean up, painting, and in some cases new carpet.  You don’t want to buy something too run down, as it could cost a fortune to repair.

Sometimes, real estate investing pays off right away.  Usually though, many people invest for the long run. Some like to do both.

I have a friend that started out in real estate investing with one home.  He bought it cheap at auction, fixed it up and sold it at almost three times what he paid for it.  He did this in a little over a year.  That is a great return on an investment if you can find deals like that.  He then used that money to buy two more distressed properties, and he then doubled his money when he then sold those improved homes.

If you think of yourself as a handyman and feel that you can do the repairs yourself, you can save a lot of money.  On the other hand, if you need to hire someone, you should always make sure that the individual or company that you hire is qualified to do the repairs.

If you aren’t comfortable with doing any of the repairs, you should inquire about a subcontractor or company that will do it for a reasonable price, or perhaps a share of the money once you have resold the house.

If the house you are thinking of purchasing and reselling has any type of structural problems, you should always get an estimate from a reliable contractor before you make the purchase.  If you decide to stay in the business, you’ll learn a lot more over the years, although you should always hire a contractor when you first start out.  Once you get all of the estimates together, you can make that final decision on how much of an offer you want to put down on the property.

After you have a team together and have successfully renovated and resold several homes, you’ll begin to feel quite a bit more confident with buying homes that need repairs.  All it takes is time and practice – - and you’ll be buying homes that the average investor wouldn’t think twice about.  This can be a huge advantage when you are looking for homes to buy and resell, as there will be less competition to worry about.  You’ll also be able to get a lower price when buying the home, simply because you can use the cost of the repairs to your advantage.

Once you are able to do repairs on homes, including structural problems, you’ll have a huge advantage in the market.  You’ll be able to buy virtually any home, including those that other investors choose to ignore.  Doing so can be very profitable for you, especially if the house is in a well known and well desired neighborhood.  After you have done the repairs, you can resell the home for a much higher price than you paid to acquire the home.

If you want to get into real estate investing for the long haul, you can buy up properties to rent out to others.  You run a bit more risk this way, as you have to worry about having tenants in your properties on a fairly regular basis, and you do have property depreciation to think about.  You also have regular maintenance costs.

However, if you have the right amount of properties, this type of real estate investing can really pay off in the long run.  Some find that if they have enough properties, they can often retire early with a good amount from rentals on top of other types of investments.

When you start looking for houses that you can repair and resale, you should always take your time and buy the right homes.  You won’t have the money, time, experience, or support to buy the bigger houses at first, which means you won’t have any room for mistakes.  Once you have purchased and resold a few smaller homes, you’ll eventually be able to work your way up to the bigger homes – - which is where the big profits will come into play.

Whatever way you decide to go with investing in real estate for beginners, you do have to have some money to get started.  You can try to buy properties with loans, but that does get complicated.  However, it is doable.

Either way, you are risking your own money.  While buying and selling homes quickly might not work during some periods of time, renting for income is something that is always a good idea.  No matter what the housing market is doing, there are always people who need a place to live.

Always keep in mind that when you first start out, you’ll need to take things slow.  You can’t expect profits to come overnight, as it will take you some time to learn.  Once you have been at it a few years and have several houses to your credit, you’ll be ready to tackle anything.  At that point – you’ll make a lot of money in a career that is truly exciting.

Looking forward to that time when you’ll have a growing portfolio of investments makes investing in real estate for beginners a less formidable challenge and a real opportunity to seize, learn and grow.

The easiest way to avoid foreclosure is start working on the problem early.  However, if it is too late for you to do that, there may still be ways that you can prevent or delay the bank from taking possession of your home.  If you are faced with the question of how to stop foreclosure, your options will depend on your current financial situation.  The best choice for one person is not necessarily the best for another.

Receiving a foreclosure notice is certainly not a time to give up.  You should know that only around 5% of people lose their homes in the foreclosure process as set out by the state.  Of the rest, around 40% get refinancing, 20% renegotiate their loan with the same lender, and 35% file for bankruptcy.

If you received a Notice Of Default then in most states you still have a legal 90 days before the bank can sell your home.  In this situation you still have a chance of getting refinancing to cover the loan.  You should do this as soon as possible before the credit agencies log the Notice and your credit rating drops.

If you received a Notice Of Sale, you will have much less time.  This comes 90 days after the Notice Of Default and gives only 15-30 days until the property will be sold at the county courthouse.  At this time the lender will be expecting you to move out and give them possession of the property.

Remember that these Notices are public so you will be vulnerable to scammers at this time.  It is a good rule not to accept an offer from anybody who approaches you.  Go to companies that you pick out, instead.

One foreclosure scam that you should be aware of is where somebody offers to take over your payments if you let them move into the house.  Never agree to this.  You have no rights in that situation and once the person has the keys they can simply rent out your house for the time that is left until foreclosure.  They probably will not make a single payment and the bank will get the house.

You also may still be able to find financing to buy the house back at the very last moment, possibly even by buying it at the auction. However, it is better to buy it back ahead of the auction if you possibly can. Then you can negotiate with the bank directly. At the auction you may have competition from realtors and property development companies who will push the price up above what you owe.

Take a look at the some of the possibilities featured here.

If You Can Make Your Monthly Payments Going Forward

If you are able to budget for monthly payments, but you cannot immediately make all the payments that you missed, you are in a very good position and you should be able to avoid foreclosure with a little effort.  Here are some options:

• - renegotiate your loan with your current lender for either slightly higher monthly payments or a longer term loan
• - find a different lender to refinance your loan (but be careful not to end up in a worse situation)
• - cover the missed payments immediately by borrowing from family or friends, using other funds that you have, or selling something; then be sure not to miss another payment.

To reach agreement on a deal with your lender, try to talk to somebody in the loss mitigation department.  This is not necessarily the first person that you will be directed to, because loss mitigation tends to be involved later down the line. However, they usually have more ability to be flexible than the collections department that you will typically speak to first.

If You Can Make Payments, But Not Enough

In this situation you could consider filing for bankruptcy.  Declaring bankruptcy can be a way to delay or even avoid the sale.  You will need to come up with a way to hold on to your home after the bankruptcy but it will buy you some time and if you have other debts, it may be the best option for you.

In this situation you should see a good lawyer who specializes in foreclosure, debt management and the bankruptcy process.  They can advise you on whether bankruptcy is a good option for you and how to manage it now and in the future.

You will need to agree on  a way to pay off your debts with the court, or pay whatever you can pay.  This can be the best option for people who have many debts, which is often true of people who are facing foreclosure.  It is a way that you can put your financial affairs into some kind of order and also keep your home.

Remember, if you are considering this option, you should definitely see a lawyer and who specializes in bankruptcy to find out the details and whether this truly is a viable solution for you.

If You Cannot Make Monthly Payments

If you are in a bad financial crisis that is going to continue, then probably you will not be able to keep your home and the sooner you face up to this, the better will be the outcome.  Once you see it this way, leaving your home voluntarily can be a good way to make the best of your situation when there seems no other way out.

For some people, there may be the option of renting out the house.  This could work if the monthly rental will cover the loan payments.  However, do not forget that you will have costs and there is also some risk – what if the tenant doesn’t make the rental payments?  You will also need to have the lender’s permission before you do this.

If losing the house seems unavoidable, you should always try to sell it yourself rather than let the lender have it through foreclosure.  Of course this may take a while but if you show the lender that you are doing this, they may agree to wait.

If your house is worth more than the amount that you owe, by selling it you can come out with a little money and still have a good credit rating if you want to buy a house again in the future.  You may even be able to move to less expensive property and continue owning your own home right now.

If your house is worth less than your loan, you may still be able to settle the debt by selling it.  You need to talk to your lender about whether they will accept a ‘short sale’.  This means that they take whatever you get for the house, and agree to write off the rest of your debt.  This is better for them than foreclosure where they have high legal expenses.

A short sale is likely to affect your credit rating because usually, it will show as less than full settlement of your debt.  You may be able to avoid this by consulting a debt law specialist.  But even if you cannot, this is still better for your credit rating than allowing the foreclosure to go through.

There are many ways to avoid home foreclosure and they all have merits in different situations.  Remember that you have a good chance and you should focus on all the possibilities that are open to you, all through the process, so that you can avoid foreclosure like many other people.  So when you are looking at how to stop foreclosure, be sure to consider all of your options.

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Perhaps you have finally found the home of your dreams.  The contract has been signed and you are now in the process of working out exactly how you will be living and paying off the property for the next few years.

Your lender may have already contacted you and given you information on your available options.  When the question comes up of just what kind of loan you want, it is best to be prepared so you can find the answer that will benefit you the most.

One of the major types of home loans that you may be offered is an interest only mortgage.  This type of loan is great for some that are getting involved in a home, but for others may not be as beneficial.

This kind of loan works by you first paying off the bank interest that is added as a percentage to your loan.  After the interest is completely paid off, then your payments start applying to the house itself.

If you are looking at an interest only mortgage, you will want to make sure that the standard interest rates at the time are in the lower percentage.  Interest only loans can have two types of interest rates that may be applied.

The first is a fixed interest rate, which will mean that the percentage you pay will stay the same the entire time that you have the loan.  The second will be a variable interest, where it will fluctuate according to the economy and specifically, the prime rate.

This type of interest rate is good if you want and are able to pay higher or lower amounts at different times, but can be dangerous if your pay check doesn’t have the same kind of flexibility.

The interest rate that you get with an interest only mortgage will be determined by the lender and how they decide to set up your loan.  It may also be determined by the amount of the down payment that you make and specific terms and conditions that apply to the loan.

Before signing the papers, make sure that you understand how all of these apply and what it might mean to your bottom line.

If you want to make sure that you get the best deal when negotiating a home loan, then it will be important to know what the individual terms are.  By doing this, you can ensure that your payment plan is beneficial to you as well as everyone else.  An interest only mortgage is just one of the loan options to consider when looking at the various possible ways of getting into your new home.

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