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Posted on October 11th, 2007 by Robin
Before you start searching for a real estate mortgage broker you first must understand what it is that they do. A real estate mortgage broker is basically a middleman that finds the perfect lender for the borrower, which would be you. The broker is looking for a lender that will give you the best deal for your credit rating.
Things to be considered are the interest rate, whether it is a fixed rate or adjustable, the term of the loan, and the fees involved with it. A good mortgage broker will have a variety of contacts in the financial world. If it is possible to get you a loan for the real estate you wish to purchase they should be able to find it for you. Keep in mind though that they are not able to perform miracles.
Finding a real estate mortgage broker is much like finding a real estate agent. The best way to find one is by word of mouth and from the experiences of other people. Check with your real estate agent. They are often in touch with mortgage brokers and should be able to point you in the right direction. When searching for a real estate mortgage brokers you can also look in your local phone books, newspapers, and on the internet. If you find a mortgage broker on the internet you will likely be able to fill out an online application or talk with them over the phone. It is not necessary for the mortgage broker to be in the same state as you as long as they are licensed lenders within the state.
One downside in finding real estate mortgage brokers is that they charge a fee for their service. This fee can vary greatly from Broker to Broker. It is important to check with the mortgage broker and ask what kind of fee they charge to find you that perfect mortgage. Even though they charge a fee if is still worth using their services. If you do not understand many of the legal terminologies used by lenders, don’t have the time to shop each lender yourself, or just want the extra piece of mind that someone is looking out for your best interests then a mortgage broker is still the best choice. The fees charged by the Broker can easily be recouped if they find you a lower interest rate, a better term, or a lender that charges lower fees.
Finding real estate mortgage brokers should be your first step when looking for a new home. You can find the mortgage broker first and get pre-approved by lenders before you begin looking for a new home. This way you will be able to find out how much you can afford to spend on your new home. The task of finding a real estate mortgage broker is not as hard as it may appear. There is the right one out there just waiting to hear from you and help you purchase the home of your dreams.
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Filed under: Agents & Brokers
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Posted on October 11th, 2007 by William
Is your home in a good neighborhood and in excellent condition? These two factors will help to increase the sales price. There are many other factors affecting the market value and a real estate appraiser will have the knowledge and expertise to determine each element. Professional real estate appraisers have passed extensive peer reviews of their work in order to receive their designations. In addition to that, your lender may have additional requirements before they will add an appraiser to their approved lists of professionals.
Ask real estate agents and mortgage companies for recomendations. The more experienced and higher quality credentials an appraiser has will usually dictate a higher price for the appraisal. The regional market conditions will also affect the final price. Remember, the appraiser works for the party paying the appraisal fee. Small allowable differences up to about five percent of the average valuation are considered normal. This price variation could be found in your favor. This could be thousands of dollars difference in the properties valuation. A real estate appraisal fee is a necessary for quality work; do not pinch pennies.
Professional real estate appraisals are calculated, in most cases, by comparisons of property sales. The appraiser uses this market data and adds and subtracts the differences between the typical property and the subject, thus he determines the worth. Accordingly, appraisers determine what their time is worth too. Two identically accredited appraisers may have a hundred or more dollars difference in their price. Look at other factors for the fee differences. Then, if you are really smart ask around and find out if the appraiser consistenly appraises high or low within the accepted range of prices. He who pays for the appraisal can select for price and the appraisers opinion of the future for the property in question. Some appraisers are more optimistic than others.
Real estate appraisals may be based in part on the total square footage of the dwelling. One property may measure 1,000 square feet and another may measure 4,000 feet. Additionally, appraisal of a small home with dozens of similar properties in the same neighborhood will cost less than than a two story custom built home backed up to the ninth hole on a golf course. Just think how much time it would take just to measure the houses square footage and draw out the floorplan. Appraisers use three approaches to value. Valuations are made on the Cost approach, Sales Comparison (market value) and Income Capitalization Approach. An appraiser will evaluate all three methods and may find only one is most accurate. The method of valuation could influence the price. Consult with your choice of appraiser to determine the scope and method used to determine the properties value.
Real estate appraisers compete just like other professionals do and costs will vary based on regional markets. Appraisers charge according to the cost of living in their area. Typically, Los Angeles. California is more expensive to live in than a community in Dyersburg, Tennessee “A special note regarding Louisiana: Louisiana is the only U.S. state whose legal system is based in part on civil law, which is based on French and Spanish codes and ultimately Roman law, as opposed to English common law, which is based on precedent and custom. Louisiana thus follows the system of most non-Anglophone countries in the world. In Louisiana, private law is based on the Louisiana Civil Code.”
Appraisals in the Dallas -Fort Worth, Texas area range about $400.00. Conventional appraisals cost more than an FHA or VA appraisal. You can expect differing estimates of value from each type and the amount of time required to receive the different appraisals will also differ. In order to get fast service usually, an independent appraiser will be able to the fastest turnaround. Purchasing a VA appraisal may save money but your lender may not accept it. They may need a conventional appraisal or they may have staff appraisers they confer with. As you can see there are many elements involved in selecting an appraiser. The professional appraisal fees are a small part of the total cost of acquisition of a home. The most important factor you, as the seller, are interested in is the track record of the appraiser. Seeking advice from realtors and experienced investors may indicate a preference in the abilities of one appraiser over another. This could be very valuble in the selection process.
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Filed under: Appraisal Service
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Posted on October 11th, 2007 by Charlie
Wow, it was another exciting month in Calgary’s Real estate Market. Real estate prices are continuing to rise like there is no tomorrow with a bit of assistance from the volatile stock market. Earlier this week when I had tuned into the business news all I could hear is how the stock market has done it again. The biggest drop in one day since 911, leaving people staring like deer in a headlight and asking the question of now what? The stock sell off had started in the Asian markets, continuing to Europe and finally it finished in the North American market. Millions of people worldwide were going to bed not knowing what they’re going to face the following day. Should I sell my investments now to minimize my losses or wait and maybe it will recover in the long run?
Over the last couple of years in Calgary, more and more people had decided to inject some of their savings into the real estate market. Especially after the dot.com bust in the early part of the millennium. Including myself and many others were getting tired of the continuous fluctuations of the stock market. It was extremely stressful to wake up everyday and hoping that nothing bad is going to happen in the stock market and not being able to control my investments differently than buy or sell. As history has already provided many examples to us about how a company could disappear overnight and completely wipe out your investments, yet I have never seen a house disappear from the face of the earth so suddenly. If it did by some unfortunate event, usually an insurance provider has reimbursed the owner.
Piece of mind – is the first thought that comes into my mind when I think about real estate as an investment vehicle. Security, predictable future and leveraged growth are the number one reasons why many choose to invest in real estate. According to Andrew Carnegie “Over 90% of all millionaires become so through owning real estate”. Now that’s a powerful statement. Let it sink in for a minute. Even if you are somewhat skeptical about the future of Calgary’s real estate market we cannot pass by such an important statement and not to acknowledge it as part of a major footprint of success.
Real estate values go up for many reasons. The number one cause of increasing real estate prices is the scarcity of supply or where the demand of the influx of people to a geographical area will outperform the supply. The good news for us in Alberta is that our provincial government has done such a great job of creating an economical atmosphere for business that there will be new business opening up and moving to this province for many more years to come. Not to mention the billions of dollars of projects already in the books that requires a constant feed of new employees from outside of Alberta.
Why real estate vs. the stock market? Unfortunately, many media outlets don’t understand the concept of the power of leverage when it comes to calculating actual ROI (return on investment). Every time I look at a news clip or read an article in the paper where they are comparing the performance of real estate prices to the stock market, I am ready to kick something to calm my frustration. The secret of many successful investors comes from directly applying the power of leverage. It doesn’t matter what kind of business we are talking about. If you want to be successful, you will need to find a way of multiplying your knowledge, power and time. If you choose to invest in stocks, you will get your returns one on one. Meaning that if you invest $1,000 and that particular stock goes up in value by 10% your ROI will be $100. When you put your dollars into a piece of real estate, the banks will usually require 25% of your own money and they will put up the remaining 75% of the purchase price for you. The beautiful part of this arrangement is that if the purchased real estate increases by 36% like it did in 2006 than your ROI will be 4 x 36%. Now that’s the true power of leverage.
Real estate values most definitely won’t be increasing by 36% forever. However even if we make a very conservative assumption of prices to only increase by 6% annually than you are still anticipating a 24% ROI. In many of my client’s opinion it sure beats any of the G.I.C. investments available today.
Right, but I am not cut out to be a Landlord. What if the tenant doesn’t pay or damages the property? What if…? Excuses can be created in every situation in our lives just to rationalize why not to do something. Sometimes to move ahead in life, we need to get a little more comfortable with being uncomfortable when we decide to get involved with new ideas. However, if you prefer not to deal with tenants you can completely circumvent that challenge. Once again, if we examine some of the other evidences that successful people have left behind we can easily find the solution to this problem. You not only need to leverage your money, you will also need to leverage your time and knowledge by hiring the right professional to be on your team of success. Can you imagine Donald Trump taking phone calls at 2:00a.m. about a leaky toilet? Or personally collecting his rental cheques every month from his tenants? I didn’t think so. So, why do you think that you need to do it all alone? Why not do exactly what some of the major players in this investment business have already done? If it worked for them why wouldn’t it work for you?
It’s absolutely essential to hire the best professional experts on your team of advisors to propel your investments to the top and not to leave anything to a chance. Some of the professionals you should absolutely consider on having on your real estate team are Property Managers, Accountants, Contractors, Lawyers and knowledgeable REALTORS® who will not only advise you but allow you to stand on their shoulders and push you up to achieve your goals.
I truly believe that everyone can succeed at investing in real estate if one puts their mind to it. But it’s up to you to decide and take actions. You owe it to yourself to further explore the possibilities of investing in real estate. As you are probably aware, real estate is and has been a solid blue chip performer over the long term (after all they’re not making any more land!).
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Filed under: Real Estate Investments
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Posted on October 11th, 2007 by Daniel
“Two Austin office buildings have been purchased by a California company. Triple Net Properties LLC bought both the 433,024-square-foot property on 816 Congress in the downtown area, and Avallon, a 318,217-square-foot set of office buildings in the northwest district of Austin. Both properties were purchased from Crescent Real Estate Equities Co for $82.5 million. Crescent itself was bought by Morgan Stanley Real Estate for $6.5 billion.
The office building at 816 Congress is a very distinct and prized office building in downtown Austin. Renovated in 1995 and originally constructed in 1983, this 20 story Class A office tower is very close to the historic Texas Capitol. Offices on top floors have excellent views of the Capitol, and everyone in the building enjoys the elegant lobby, with itslimestone flooring and walls, polished marble, stylized stainless steel planters, attractive lighting, comfortable seating areas, and much more. An outdoor area adds an elegant touch to those walking up to the building. Because of its closeness to the Capitol and because of its attractive interior, this office building has often attracted professional service businesses, lobbyists, as well as law firms. At the time of the sale, 76% of the property was leased to 44 tenants.
The Avallon began construction in 1986 and was completed in 2001. This Class A office building actually consists of 5 3-story buildings which encompass 16 acres and total almost 316000 ft.² in Austin. The five buildings that make up The Avallon are set on a hill, among oaks and fountains. This provides a very green environment and offers wonderful views to tenants. The elegant lobby of the buildings features granite flooring, inset lighting, decorative planters, suspended glass panels, marble flooring, and many other amenities. Tenants of the buildings have access to property management, on-site security, a top-flight workout facility, and many more amenities.
The Avallon is conveniently located right near Austin’s high-tech district. Situated on Jollyville Road near U.S. Highway 183, Loop 360 and Mopac Expressway, the buildings are also close to the Arboretum District. Tenants enjoy nearby restaurants, shopping, financial institutions, and many more attractions within easy walking distance. The buildings also offer almost 1100 parking spaces in its parking garages. About 97% of the buildings were occupied at the time that The Avallon was purchased. Many tenants are entrepreneurs or businesses in the education, technology, and engineering sectors.
In Austin, it’s not just purchasing that’s being done. Building is also a major component of downtown development. Just recently, construction was begun on the third phase at Southpark Commerce Center. Endeavor Real Estate Group started work on building two, which is expected to boast 192,000-square-feet of space. The building is situated southeast of I-35 and Ben White Boulevard, right on Freidrich Lane. With Round Rock-based Chasco Constructors as the general contractor, and Endeavor as the landlord, the project is proceeding apace. The first tenant to sign on with the new project is Hill Country Electric. The company has already agreed to lease approximately 48,000 square feet from Endeavor. The new building is set to open in January.”
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Filed under: Pest Control
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Posted on October 11th, 2007 by Samuel
Many investors are emphasizing business investments and commercial real estate, and they should obtain a full comparison about how different residential property finance is from commercial real estate finance. This business finance article will illustrate key business loan and commercial real estate loan aspects.
Refinancing an SBA Loan and Business Opportunity Loan
Refinancing a commercial mortgage or business opportunity loan will almost always be more difficult and complex than the initial business loan or commercial real estate financing. This is especially true when refinancing an SBA loan. It is prudent to be aware of these refinancing difficulties at the time of the initial business finance loan.
Business Finance Loan and Real Estate Mortgage Problems
In comparison to residential real estate financing, business financing has many more potential problems. This increases both the time and complexity of virtually all business loan and commercial mortgage transactions. It is especially important to avoid certain business finance difficulties that tend to recur on a regular basis.
Commercial Mortgage and Business Opportunity Experience
The obvious oversupply of inexperienced business opportunity financing and commercial real estate financing advisors and lenders must be a practical factor to anticipate, and a lack of meaningful experience can seriously complicate the loan process. This is due primarily to the negative residential real estate finance environment. Most residential mortgage brokers are trying to replace residential loan revenues with business loan transactions, but in most cases they are acting as business finance advisors without necessary commercial loan qualifications.
Length of Business Loan Application and Approval Process
Traditional banks will often have a lengthy business finance process lasting six to nine months. In contrast non-traditional business financing can be finalized more quickly but will typically be more lengthy than residential real estate financing. The inclusion of SBA financing and specialized business loan programs can add significant variation to the timing and complexity of finalizing a commercial loan.
Commercial Real Estate Mortgage and Business Finance Fees
A more expensive fee structure is likely for business financing and business opportunity financing because it is more time-consuming and extensive than residential real estate finance requirements. The use of commercial real estate loan retainer fees are more common than with residential mortgage financing. The business loan process routinely includes third-party fees that contribute to costs such as environmental and appraisal fees.
Special Purpose Commercial Real Estate Finance
Commercial mortgage scenarios for specialized properties such as gas stations, churches, golf courses and funeral homes result in complications not witnessed with residential real estate financing. Specialized commercial property loans have been eliminated from an expanding group of business finance portfolios by business lenders. As a result of fewer lending options together with specialized business loan issues, church financing, funeral home financing and golf course financing are among the most problematic business opportunity finance or commercial loan situations.
More Differences – Business Opportunity Loan and Commercial Mortgage
The U.S. commercial real estate mortgage loan structure has many factors that differentiate it from residential real estate finance. Additional important issues not described in this report are included in other business real estate loan reports. Some of the topics discussed in separate reports are SBA loan programs, business opportunity financing, lender suitability criteria and personal guarantees.
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Filed under: Finance & Mortgage
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