Purchasing Property With No Money Down: My Personal Experience

Have you ever seen those infomercials about buying houses with "No Money Down?" They are really well done. They have all kinds of people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely no money out of their pocket. You see this guy, standing on a street corner, talking to someone, and he says, "I own that one," pointing to a beautiful colonial. "I also own that one next to it, and the one two doors down, and I'll be closing on the one directly across the street from it, next week." He then assures us that he has purchased 17 homes in the last eight or ten months, with zero money down on the properties. Plus, in many cases he's also paid no closing costs.

And, let's not forget, this same guy is grossing tens of thousands of dollars monthly, and his net worth is nearly one million dollars. So, he says.

Now, all of this looks wonderful, so when the person selling the course that will teach you how to do this, at a nifty price of just $297.00, speaks, you are glued to his every word. "Real estate is the safest and fastest way to make money, today," the expert will tell you.

So, can this really be done? Can you purchase houses with no money down? Can you become a landlord in as little as one month's time and start raking in the cash from those rent payments? The answer is an absolute "Yes." It can be done, and I am proof positive, because I've done it. The question you should be asking yourself is not can I buy real estate with no money down, but should I?

You see, this is a question that the guy selling the No Money Down course, with all of his people and their great testimonials hopes you never ask. His advertising and marketing strategy would collapse, if he gave anyone a chance to ask this question, because he would be forced to lie if he answered it.

Rarely is the whole truth anywhere to be found in infomercials, especially when the advertising is about No Money Down real estate programs. The infomercial makes the idea and the program look so easy that any child could handle it. It makes it seem like every American should be doing it, and we'd all be millionaires. But every American is not doing it, and many of the ones who are doing it not only are not getting rich, they are actually going broke. The infomercial won't tell you this. That's why I'm here.

The Truth

Now, let's get started with the truth about buying real estate with no money down and the truth about being a landlord. The first thing you need to know is that they are both very bad ideas. Let me illustrate by using my own experience in these areas. I started buying rental property nearly 10 years ago. The first property I bought was a deal orchestrated by some real estate con artist, who told me I needed just $2,000 to take ownership of this home and, in the process, help out a woman who was about to be foreclosed upon.

In two years, she would clean up her credit, refinance the loan on the house, and I would make $10,000. Sounded good to someone who was quick to buy into anything that returned big dollars in a short time.

This worked for the first year, as the woman paid on time, and I pocketed an extra $100 monthly. Later, though, things began to collapse, as the house began to need repairs, all of which the woman couldn't afford, so I had to pay for them. I put nearly $5,000 into the house in a four-year period. When I was finally able to sell it, I didn't quite make back what I had put into it.

Meanwhile, I was eager to overcome this problem by adding many more. A slick mortgage broker got hooked up with an even slicker real estate prospector, and the two of them convinced me that they had a way I could buy houses rapidly, with absolutely no money out of my pocket. Although my experience will probably be enough to enlighten you to the pitfalls of this model and of being a landlord, let me say that I can't emphasize enough how dangerous buying property with no money down is.

In six months time, I had purchased eight houses ? many with loans from the same wholesale lender. These lenders should have been concerned with all of the debt I was building, but they kept approving loans, based on my good credit and rents covering the mortgage payments. One of the biggest problems, which I was not experienced enough to detect, was that most of the rents were just $50 to $100 above the mortgage payment.

"Don't worry," the investor/ hustler would say. "You'll make all your money on volume. We'll get you into 30 or 40 houses, and you'll be pocketing $4,000 to $5,000 every month."

As you might imagine, my mind raced. I was making the huge deposits at that very moment. My bank account was fattening up at breakneck speed.

The Illusion

This is what people who buy houses, using the No Money Down plan envision happening. After all, if you can buy one house with no money down, why not five or ten or fifty? For some reason ? the vision of the dollar sign, most likely ? I failed to seriously consider the maintenance of these houses, the possibility of missed rent payments, and the chance that renters might actually stop paying, altogether, forcing me to evict them ? a time-consuming and extremely costly undertaking.

As you may have already guessed, all of these things happened to me, after I had amassed 26 rental properties. In fact, oftentimes, all of these problems happened in the same month. Now, for awhile (when I had about 10 houses), if one person failed to pay rent, I could cover it with the nine other payments. But when two, three and sometimes even five tenants didn't pay in the same month, it was devastating to my business. I had to go to my business account and pay up to $3,000 at a time in mortgage payments, with no income to cover it. Plus, I had to pay a property management company to get my tenants to pay or to evict them.

Soon, this became the norm, not the exception. There were constant problems at my houses. Unhappy tenants led to poor upkeep of the property and even more maintenance problems. About one year, after I had amassed 26 houses, I was having problems with roughly 10-15 houses and/or tenants each week. I was evicting at least two tenants each month, and approximately four to seven tenants were either behind on rent or not paying at all. Promises were made, payment plans arranged and few, if any, ever followed through.

It didn't take long for me to realize that this was no way to make money in real estate. Consequently, I got rid of these houses as fast as I possibly could. There were plenty of buyers, willing to take over my headaches, because they had the ability to make it work, they believed.

In 10 years of being a landlord, I lost thousands of dollars and likely took some years away from my life with all the stress I had endured. So, whatever you do, avoid the No Money Down Trap. There are much better, still inexpensive ways to make money in real estate.

Learn the best ways at www.winningthemortgagegame.com

Mark Barnes is author of the wealth-building system, Winning the Mortgage Game and other investment real estate books. He is also a suspense novelist, and his new novel, The League, will thrill both suspense and sports fans. Learn about Mark's wealth-building system and get his free home loan course at http://www.winningthemortgagegame.com. Learn more about The League and read an excerpt at http://www.sportsnovels.com

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Becoming a Note Business Expert and Professional

Many "get rich quick" schemes available in the market today make their program sound so easy that a chimpanzee could make it work. There are those in the discounted cash flow or the note brokering/investment business that would also make those claims. The reality is the same as it is for any business - you need to be good at what you do in order to be successful. However, if you are good, you can be very successful in the discounted cash flow business.

By far the most difficult and time-consuming aspect of the note business is finding quality notes that are for sale. The competition to buy quality notes is fierce. Once you find a quality note that is for sale you had better know your stuff to make sure that you close and make a good profit. Most note holders will only deal with you if they are confident that you know the business and respect you and your business as a professional.

There are two components regarding becoming a note business expert and professional that those starting out in the business need to understand. The first is the perception you leave with the client. The second is related to the depth of your understanding of the business and how it works. Anyone claiming that all you need to do is to find the notes and forward some information onto someone else, who will do all the work for you, is fooling you. You need to build a relationship with the client and they need to be confident in your professionalism and integrity. They will have lost of questions and you need to be able to answer them as an expert. If you can't they will just move on.

Your marketing campaign is what gives your potential clients their first impression of you and your company, and can be the opportunity to buy their note, or just as easily close the door on any potential business in the future. Because this impression is so critical, it is absolutely essential that every part of the campaign be carefully designed and thought out. The postcards, your website, the newsletters, the emails, the letters, flyers etc. – whatever you are using must be integrated and connected to you and your company. It is about building up brand value in the way you present yourself as a professional. Think of the best marketing campaigns and how they are so successful. The campaign message is linked together by the brand. Clients should start to feel like they know you. They especially need to know exactly what you do – help them with their personal financial situation, whether they sell you their note or not.

The second component, becoming an expert in your field, takes time and effort. The best way to learn is through experience. Document the reactions you get from clients when you deal with them. Listen to their concerns and craft your strategy accordingly.

The other obvious way to quickly become an expert is to read extensively and research the subject. There are tons of information sources available on the discounted cash flow business. You need specialize in a particular area of the business by reading and studying the material like you've got a final exam in the subject next week. Take notes of the important points and keep them in notebook for reference later on. You will need to periodically review those notes as well to become and remain a real expert. A word of caution though - don't believe everything you read. After enough reading and experience, you will start to sort out the reality from the fantasy.

Finally, you need to consolidate the information that is relevant to your clients and pull it together into a format that you can provide them. For example, as you keep track and document your interactions with clients, you will notice that many of the questions are the same. Compile your list of frequently asked questions and send them to potential clients. Not only will they perceive you as an expert, you will actually become an expert by compiling the answers. As time goes on, you will build a solid reputation with potential clients as an obvious choice to deal with.

Providing information to your potential clients about how they need to manage their note, such as tax reporting issues, dealing with late payments, monitoring the value of the property value that secures the note etc. etc. builds creditability and makes you an expert. This can be done, by a newsletter, email, factsheets, or via your website. Make sure the information presented is consistent throughout the information vehicles you chose.

In conclusion, you will close a lot more deals if you commit to these two principles: Present yourself as a professional with a well-crafted and professional marketing campaign and secondly, write, prepare and provide your clients with tons of helpful and relevant information about the business. The combined one-two punch is what is needed to experience real long-term success in the discounted cash flow note business.

For a proven and effective note marketing system, visit my site at http://dcfturnkey.avintus.com.

About the Author:

Eric Bosveld is a real estate investor, note broker and entreprenure. His company, Avintus Financial is involved in a wide range of real estate related businesses. http://dcfturnkey.avintus.com

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If you need assistance selling your house ERA Othello Realty can share their expertise and experience with you in a friendly and professional manner.  From all aspects of selling your house: from getting a qualified CMA (Comparative Market Analysis) to advising you on the presentation of your house, marketing your home online and in print, conducting an open house, showing your house within your guidelines and discretion, constant communication, negotiating the best price for your home and being with you until closing and beyond.  We can also assist you in your search for a new home.  Please call us at 732-364-2015. We are the realtors NJ! Look at these Listings of Homes for Sale in NJ. Marlboro NJ Real Estate, Homes for Sale in Marlboro NJ, Marlboro NJ, and Information on Marlboro NJ.

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Simon says: " Here are some tips on home remodeling and how to deal with contractors:"

In my last column I went into detail on how to do a quick remodel that would give you a very high return on your dollars spent. This week, I am presenting you with information on how to do a remodel for yourself. One of the wonderful things about owning your own home is that you have the opportunity to express yourself and your unique style.

You will recoup much of your remodel dollars when you sell. Real estate is an investment that will almost always be sold and passed on to someone else at some point in time. You may want to temper your own personal taste at times to make sure your remodel is palatable to other people. In other words, if you are into oak, a wood that is out of fashion right now, don't over use it. If you are into dramatic mod graphically black and white design, something that is considered chic right now, you may want to mellow out the contrast a bit. If you like architectural lines, try to avoid letting it get too stark by adding warm tones and natural materials. Generally, the most striking designs today will be considered the most dated and hopelessly trendy within the decade.

A common idea is to wait to do the remodel little by little. Sometimes this makes sense. However, I have a lot of clients that buy a property with big plans to redesign the space and then they do the remodel right before they put their home on the market for sale. If they put up the money early in their stay, they would have been able to enjoy the remodel and still recouped their investment during the sale.

If you are going to do a complete remodel you may want to avoid living through it. The dust alone can be unbearable. If your contractor tells you it will take 4-5 weeks expect it to take 7-10 weeks. Although I just completely remodeled a two bedroom condo in six weeks, most remodels take months and I have experience with over a dozen remodels.
 
The biggest time drain is the lead time for things like custom manufactured cabinets, which can take three to six months depending on the manufacturer. If you are doing a mid-end property you may want to use Ikea cabinets, you can buy them and have them delivered the next day. They are also highly rated by Consumer Reports for quality. If your taste is compatible with hand built cabinets, you may want to consider a cabinetmaker who should have an entire kitchen done and installed within a few weeks.

There are a lot of pitfalls to avoid while working with contractors. You can hire a General Contractor to make things easier on yourself. Make sure you get one you really trust that has excellent references. This will lower your stress level but it will cost you. And you should note that even with a General Contractor remodeling isn't easy. If you are low on money, you may want to run the remodel yourself and hire sub-contractors. If you take on this position, plan on spending a couple hours a day on the project. When I am working with sub-contractors I feel like I am a high school football coach. Sometimes they won't show up, they'll get in fights with each other and so on. I am sure that people have told you that they have an amazing contractor, unfortunately you need more than one guy to run a job. It is possible to do a job with only the best possible workpeople, however this will take months. Sometimes you can't wait for your favorite electrician. Regardless of who you hire remodeling isn't easy, so be prepared.

One of the golden rules of hiring a contractor is to hire specialists. They all think they can do everything. Additionally, don't fall for the photos of work they have done. Oftentimes these photos are of jobs they were a part of but not the main contractor of.  Call their references and ask exactly what they did on the job. You need to respect the work these guys do-- it's not easy to be an excellent tile setter or a plumber-- so hire guys who really know what they're doing.

Never pay workpeople up front. I generally give a 20% deposit at the end of the first day of work unless I've had a previously good experience with someone. If your granite counter top guy needs money for materials pay the vendor directly. Don't give a guy a three thousand dollar check on the first day of work. These contractors generally have other jobs going on at the same time as yours. You need to use your payments to keep them focused on your job. When they are about 80% done you can give them another 50% of the bid. Always make sure that they have done more work than you have paid them for. This may sound a little cheap, but if you're too nice they'll walk away with your money and you'll be chasing them down to finish the job.

This column could be a lot longer, but for now this should get you started. If you are looking for good people who work in Santa Monica, you can visit my web-site santamonicasimon.com and contact me from there-- happy remodeling!!!

Simon Salloom is a Realtor with Coldwell Banker who specializes in Santa Monica Real Estate.Click here to learn more about Santa Monica Real Estate

About the Author:

By Simon Salloom

All statistics taken from the Multiple Listing Service of the local, Beverly Hills Greater Los Angeles Association of Realtors.

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The Simplest Yet Most Powerful Note Marketing Technique

Success in the discounted cash flow business is like any business: it takes skill, training and know-how. It begins with an effective marketing campaign that builds a relationship and trust with potential clients. Building trust, creditability and a relationship helps ensure that your services are considered first, if and when a note holder decides to sell. How do you get a note holder convinced that selling their note could help them out financially and reduce the risk associated with carrying the note? It isn't easy, but one powerful common sense technique can dramatically improve your success rate.

Most note brokers put together a "piece-meal" marketing campaign that is poorly designed, and after a few tries, give-up with very little success. Many note holders are quite content to continue collecting the payments on their note, if they don't really need the cash for anything else - like their kid's tuition, or a summer cottage etc. and more particularly, if the payments keep coming in regularly.

However, as soon as they have experienced the worry that comes with a missed payment or they really would like the cash for something else - you have a potential client. The key to any marketing campaign is to make sure you are the first person they call whenever the note holder decides they may want to sell their note.

Believe it or not, that is very easy to do; you send them valuable information and simply get them to keep everything you send them. How do you get them to keep what you send them? Simple! You tell them to! Then when their circumstances change and they want to sell their note, you will be in the best position to help them.

But obviously you also have to make the information and material you send them valuable enough that they will want to keep it. In fact, it should be so valuable that they use it as a reference whenever they have a question regarding their note. It needs to be easy enough to understand for the layman, but information-packed enough for the professional.

The format of the material you send them can be in the form of a newsletter; each one addressing a specific topic. Or it could be in the form of a manual, such as a "note holders handbook." It could be a "white paper" on how notes are valued in the business, or tips on how to increase its resale value if the holder ever decided to sell. Another example is a list of Frequently Asked Questions, and the their answers.

Each piece of information you send, or offer to send, builds up you creditability as a professional and as an expert in your field. You can use postcards to encourage your potential clients to call you to get the free information. This will ensure that you send it only to those that really want the information. It will also reduce you marketing costs.

You can offer a report on your website for free, as long they agree to subscribe to your monthly newsletter. There are tons of other creative ways to get the information out to potential clients. The key is to make sure the content is high quality, and second, make sure you instruct them to keep it. It is amazing how many people will keep the material if you specifically instruct them to. You can even tell them to attach it directly to the note, or put it their payment record file.

For more information on the note business and a complete marketing campaign with proven success, visit my website at http://dcfturnkey.avintus.com.

About the Author:

Eric Bosveld is a real estate investor, note broker and entreprenure. His company, Avintus Financial is involved in a wide range of real estate related businesses. http://dcfturnkey.avintus.com

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Little Known Government Program Can Help First Time Homebuyers Get Housing With Little Money

If you have 5% or higher FHA loans going into foreclosure is it prudent to throw the baby out with the bath water or would it be better to coach up and counsel the buyers to slow down the default rates. Many feel this was a knee jerk reaction to a program that had worked for many years to provide first time homebuyers ready access to the American dream, owing their very own home. Many of the original players are positioning and fighting against the directive from the bureaucrats to outlaw all home buyer assistance programs which are NOT government entities. A funny thing happened on the way to eliminating these homebuyer assistance programs. By definition, Indian Tribes ARE government entities. So…if an Indian Nation within the United States decides to set up a Homebuyer Assistance Program…then who is to say now that a government entity cannot conduct business as such. All have witness the power of the Indian Nations to conduct business in the U.S. unabated with regard to fishing, gambling, their own courts, lands, etc. Now, The Penobscot Tribal Nation has set up a Homebuyer Assistance Program. If anything, this has set the bureaucrats on their ear. The bureaucrats left with scratching their collective heads, the program is rolled out to help FHA first time homebuyers.

What follows is an example how this program might work for a first time homebuyer using the FHA (Federal Housing Administration) through the Department of Housing and Urban Development (HUD).

James and Laticia have been living in a two-bedroom apartment for three years. They have two young school age boys and a sonogram in hand that indicates there is a baby sister on the way. The two-bedroom apartment will not accommodate two young boys and a new baby sister. James and Laticia received something in the mail regarding a homebuyer assistance program. Recognizing that the housing market is now weak in their town, it will be necessary to get the seller of a selected property to pay all the closing costs and prepaids and make a 3% contribution to the non-profit Penobscot Tribal Nation's homebuyer assistance program. In spite of all the good intentions they have not been able to accumulate any significant savings for a down payment and connected cost with buying a home. James and Laticia have spent the last couple years paying off collections and delinquent hospital bills surrounding the two pregnancies for the boys. At the time, they did not have health insurance. Now both have new jobs in the same line of work making good money and can stretch the rental payment up to qualify for a bigger housing expense. Fortunately, both are covered with full health insurance and the pregnancy will be taken care of in full with no deductible. With the parental leave for the new birth coming soon it's important for James and Laticia to find a home of their own soon. They are now on a month to month rental status.

Every available weekend James and Laticia look at homes on the market. The Realtor named Jesse has laid out a plan using this very homebuyer assistance plan. When searching for homes Jesse looks for vacant homes that can offer quick possession and have high motivation to sell. Some might be a property in foreclosure, real estate owned (REO) by a bank or lending institution or an owner whom must sell and has already moved on. Before even showing a home, Jesse calls the listing Realtor to determine whether the seller will be willing to pay all the closing costs and prepaids (which can be up to 6% of the purchase price). In addition to paying all the costs for a buyer the seller must also be willing to make a 3% contribution to the homebuyer assistance program plus a small administrative fee which is all sponsored by the Penobscot Indian Nation a non-profit corporation. If a seller is not willing to chip in, James and Laticia look at other homes. Jesse explained there is no need to waste any time with an unmotivated seller. There are plenty more motivated sellers in this buyer's market who are willing to sell and do whatever is necessary to get the home sold as Jesse laid it out the buying strategy.

Jesse was charged with finding a four-bedroom home with two baths or more and a two-car garage with room for a pool later on. Jesse called James and Laticia excited with the news that he had located such a home and the seller was game to pay all the costs. The selected home that was in the school district and area that was a top priority for James and Laticia. When James and Laticia rolled up in front of the home it had good curb appeal. Some recent work had been done to spiff up the property. The bank had taken this home back six months ago through a foreclosure action and it was still back on the market. The bank was obviously interested in moving this property ASAP. A year ago, first time homebuyers were second class citizens in the market place as far as asking for financial concessions and such. The worm had turned now. Buyers were king again.

James and Laticia loved the home and asked Jesse to write up an offer. Human nature being what it is, they decided to cut the offer price $10,000 from the listed price plus seeking major concessions. The list price was $215,000.00. The offer was constructed for $205,000 using FHA financing. The seller was asked to pay up to 6% of the offered price for closing costs and prepaid expenses which would be $205,000 x 6% = $12,300.00. All FHA financed deals must have a 3% contribution from the buyer. This would be $205,000 x 3% = $6,150.00. Although the required down payment could be as low as 2.25% the total required contribution from the buyer was 3% for down payment and costs. James and Laticia didn't have $6,150 in cash lying around and there was no prospect of any family gifts or help. The seller was asked to pay 3% additional to the non-profit homebuyer assistance program plus a small administrative fee of approximately $400.00. At closing the seller would make a 3% contribution plus the administrative fee to the "Government sponsored entity" per the Penobscot Indian Nation. Upon receipt, the homebuyer assistance program would send 3% of the contract price to the closer to be used for the buyer down payment all for the cost of the administrative fee.

It took a week to get an answer. Jesse explained the buyer's financial situation and the fact that they had been pre-qualified for a FHA mortgage using this device and they could not fit a higher price into their family budget. It was a take it or leave it deal. The bank/seller decided to take it. The details broke down as follows: The price was $205,000.00. There would be 3% down thanks to the homebuyer assistance program sponsored by the Penobscot Indian Nation. The balance of $205,000.00 x 97% = $198,850.00 would be the base loan amount before the Up Front Mortgage Insurance Premium is added on. The UFMIP is at 1.5%. Thus, $198,850.00 x 1.015 = $201,832.75 rounded to $201,832.00 with the 75 cents paid in cash at closing. The taxes are $3,600 per year or $300/month. The hazard insurance is $2,400/year or $200/month. With an FHA there is a monthly Mortgage Insurance Premium (MIP) of .5%. This would amount to the first month payment of $201,832 x .5% = $1,009.16/year or $84.10/month. With a 6.00% 30-year rate, the payments would be $1,210.08/month. Adding the taxes, hazard insurance and MIP the total payment would be $1,210.08 Principal and Interest + $300/mo. taxes + $200/mo. insurance + $84.10/month MIP = $1,794.18/month for the total payment. As James and Laticia had paid off all their installment debts and medical collections and other adverse credit items the debt ratio was just under underwriter requirements. In this case the debt ratio came in at 28.9% for housing expense with plenty to spare on overall debts. With James and Laticia total monthly income at $6,208/month combined income the numbers worked for the underwriter. The payment shock was considerable from the apartment to the new home, but past residual income was utilized to pay the collections and debts on an accelerated basis. Now the earmarked funds could be used to meet their monthly obligations.

At day of closing, the 3% down payment was provided by way of the seller through the conduit non-profit established through the Penobscot Indian Nation. The seller paid the buyer's closing cost which included 1% origination fee, title fees, lender fees, survey, termite report, home inspection, etc. The prepaids for tax escrows and the first twelve months of advanced insurance payment and two month's reserves as well as prepaid interest were all set up from the 6% seller contribution of $205,000 x 6% = $12,300.00. By agreement, the buyer's paid for the FHA appraisal of $375.00. That was really their only out of pocket except for the earnest money deposit of $1,000 which was returned at closing to the buyer.

The buyer's were able to use whatever cash available for moving and ordinary fix up expense in moving in.

It's been two month's since James and Laticia moved in. Baby Rose has arrived and is lovingly set up in the newly decorated and furnished nursery. A knock at the door indicates Jesse has arrived for a small house warming for the family. Without Jesse's efforts and the usage of this special government homebuyer assistance program (non-profit sponsored through the Penobscot Indian Nation) this purchase would have not happened for James and Laticia. Prior state homebuyer assistance programs had long since dried up of available funds. This program allowed these buyers to take advantage of a depressed housing market. The home market is forever shifting. Right now, advantage buyers.

This little known homebuyer assistance program can help FHA homebuyer move into a home of their own. The Penobscot Indian Nation steps up to help.

Dale Rogers
http://www.brokencredit.com

About the Author:

Dale Rogers is a mortgage expert focusing on solutions in this dynamic real estate marketplace. Seller Helps Buyer is a free website where sellers who are willing to offer 'unique seller financing options' and 'closing cost assistance' are meeting every day and helping one another to buy and sell homes. Seller Helps Buyer is the only website of its kind and the wave of the future.

www.sellerhelpsbuyer.com

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Home Buyers--Winning the Interest Rate Game!

Buying a home is one of the biggest expenditures most people will make in a lifetime. And in many markets where sellers are offering attractive incentives to buy your next dream home, a first-time buyer can be intimidated by the whole decision making process. As important as this life-changing, buying decision can be, it is often as easily influenced by emotions, anecdotal experiences from friends and family, as well as more practical matters such as income, credit, down payment saved and other financial criteria. Too often first-time buyers start the buying process by "putting the cart before the horse" by becoming emotionally involved in the transaction without doing their financial homework first.

Once you have begun your home search by looking on the internet on websites like www.realtor.com for houses in the neighborhood you desire to live in or by writing down phone numbers from a "For Sale" sign, it's a good idea at this time to take a look at your own financial picture as well. While not difficult, taking the time to get solid financial information, namely your credit report and debt-to-income ratio, will pay off in the long run as this data will influence what you'll be able to afford and what type of mortgage you will qualify for.

There are several websites such as freecreditreport.com and myficoscore.com which enable you to take a look at your own credit report for a nominal fee. Make sure that you also request your FICO score, a three-digit number which ranges from a low of 350 to a high of 850, and is calculated based on assigned numerical values for certain credit characteristics. The higher your overall score, the less risk there is for the lender, and therefore the better interest rate that you are more likely to get. Typically, a number at approximately 620 or above is a fair credit score. In addition, under a new Federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. To request your free annual report under that law, you must go to www.annualcreditreport.com.

While lenders often use their own credit reporting agencies, most of the data comes from the three major consumer financial gathering data organizations such as Experian, Trans-Union, and Equifax. Taking the time to investigate your credit gives you a clear idea of your credit standing and will point out any potential problems you may be able to work on before you meet with the bank or loan officer.

Problems or high risk credit characteristics usually include the following; bankruptcy, derogatory public records, late payments, charge-offs, repossessions, and serious delinquencies which are examples of negative factors that can directly affect your credit score. Even carrying high balances on your credit cards can appear as a negative factor. Although you may know without a doubt that you have not encountered these problems, pulling your own credit report will give you greater flexibility and knowledge as to what type of loans you will be able to qualify for and what type of interest rate you can expect to get. As the saying goes, forewarned is forearmed.

Unfortunately, too many potential homeowners who have already fallen in love with the home of their dreams are too anxious to get information on a loan they may qualify for and often get their credit reports from several lenders. Unfortunately, they do not realize that several inquiries into their credit can negatively affect their overall credit score thus affecting the interest rate they could have qualified for. So, taking the time to check out this information yourself can reap you enormous benefits in saved time, reduced hassles and a checklist of things you might need to work on before you take the next step in the buying process-getting preapproved for a loan. For more information visit http://www.nefcortez.com

About the Author

Nef Cortez has been a licensed real estate broker and has held various positions in the real estate industry for over 25 years. If you would like to read more of Nef's pithy and timely advice (with the latest info on local foreclosures), visit his website at www.nefcortez.com or read his blog at www.nefcortez.com/newhomes

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ERA Othello Realty is your source for your real estate needs throughout New Jersey. From the shores of Spring Lake NJ to Newark NJ they can handle all your real estate buying and selling needs. For homes for sale in Monmouth, Ocean, Mercer, Burlington, Camden, Middlesex, Passaic and all the other counties in NJ. From Central NJ to Northern NJ to Southern NJ you can count on ERA Othello Realty for New Jersey Real Estate. Aberdeen NJ Homes for Sale, Marlboro NJ Real Estate, Homes for Sale in Marlboro NJ, Marlboro NJ, and Information on Marlboro NJ. Look at these Listings of Homes for Sale in NJ. We are the realtors NJ!

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First Time Buying Tips

If you are tired of renting, and have good credit, why not buy a home? Most people spend years paying rent to a landlord when this money could very easily be paying a mortgage. Owning a home is easier than most people think, all it takes is some careful planning and the proper financing and you could be on the property ladder too!

One of the major misconceptions of home buying is that you require a large down payment to buy a home. This is not so. In today's market there are many different financial options to those who quality. Chances are if you have good credit and a paycheck that can justify the loan, you will be able to find a mortgage company that is willing to finance 100% of the home! The proviso here is that your credit rating is sufficient to appease the mortgage company. There are a few things you can do to improve your credit in preparation for this application. Get a copy of your credit report from your bureau and study it in detail. Are there any outstanding issues? If so make sure to take care of them and get letters of release once they are settled. Then ensure that they are removed from your report. This is a critical step for any home buyer, first-time or otherwise.

Now that that step is complete, the next logical step is to secure financing for the purchase. Mortgage companies will do what is known as a pre-approval. A pre-approval is a concrete agreement between borrower and lender. It stipulates the exact amount of funds that you have available for your home purchase. Having a pre-approval in your pocket when searching for your home gives you remarkable leverage in the buying process. It sets you apart from buyers who do not have secured financing and as you can imagine this is comforting to the seller who is seeking a clean and quick closing.

At this point you can start to shop for homes. Be confidant in what you want and don't be afraid to go after homes that suit your family and lifestyle. Being your own landlord can be quite a rewarding experience. It is an exciting thing to realize that you are now paying off your own home instead of someone else's.

About the Author

Alan Olson is the broker/president of Century 21 Vista Inc, located in Fergus Falls, Minnesota. For educated and professional service in the Minnesota real estate market, contact the Century 21 Vista Team.

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If you are looking for homes for sale in Spring Lake NJ, Newark NJ,  Marlboro NJ or any other area in New Jersey ERA Othello Realty are the real estate agents that you are looking for.  Whether you are looking to buy or sell your New Jersey real estate they can help you.  We list homes for sale in Manalapan NJ, Point Pleasant Beach real estate and many other New Jersey properties for sale. Aberdeen NJ Homes for Sale, Marlboro NJ Real Estate, Homes for Sale in Marlboro NJ, Marlboro NJ, and Information on Marlboro NJ. Search through thousands of houses for sale in New Jersey. We are the realtors NJ!

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Seized Real Estate - What they don't want you to know...

What is Seized real estate?

Seized real estate is extremely cheap property that you can buy; basically your dream home for only a fraction of the retail price!

These properties are only cheap because they have been seized by the government and are being re-sold at a real estate auction at a lower price!

These properties are thought to be one of the best properties that you can buy for a very reasonable price.

Usually these properties have been seized because the previous owners have been involved in criminal activity and such activity like drug dealing etc. will have very nice houses, some would say luxurious, if it's seized - it's up for grabs!

Your looking at least 20% reduction of the retail value! Therefore if you're looking to buy a house but have a limited budget, then I would highly recommend government auctions. They can sometimes include vehicles too!

However, you have to remember there will be other people like yourself after the same bargains. Even though it is not advertised, some people will already know about these auctions. So you will have competition.

That's the key word "auction"; with it being an auction you can get a great bargain, however as I said; there will be others like you and because it is an auction the more there are of you- the higher the bids could creep up and before you know it- if your not careful it might not be cheap any more! So be vigilant.

You will also need to know about real estate before you bid. You need to know the market; how much the market is going for etc.

If you don't know much then I suggest taking someone with you who will know about the market values. You don't want to end up bidding higher than its market value!

Also, inspect the building before participating in the auction, they will allow you to view the property before hand. Check for damages and foundations etc.

Bid low to begin with, auctions are supposed to go higher, so start low- this will help you get a much better price!

Set your absolute maximum as well before the bid, do not get carried away and involved with beating someone if you only have a certain price you can afford!

Lastly, you have to know everything about the property; this will ensure you get a great price.

The best way to be sure is to hire a professional who understands real estate, and who knows how to bid and buy successfully - after all you're already saving!

Buying government seized properties is the way forward for many of us; it's the perfect way for us to buy our dream home!

About the Author

Terri-Leigh Bennett has found a superb FREE service to find government seized properties in your area that also includes:

* Foreclosed Homes * HUD Homes and VA Homes * Homes For Sale By Owner * Home Auctions * Bankruptcies, Repos and other distressed properties

All of which are FREE, take a look to find your dream home with the perfect price tag... http://www.justbookmarkit.com/realestate

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If you would like to buy a house/home we are your source of thousands of available listings of real estate. As a native Licensed New Jersey Real Estate Broker we have many agents in our realty who are very familiar with the needs of New Jersey Real Estate buyers.  If you are interested in selling your house, or any other NJ real estate, we are here to help you sell.  Our experience real estate office staff will walk you through the whole house selling process. Get in touch with us and we will show you how we can help your sell your home in New Jersey.  We are the realtors NJ! Great Marlboro NJ Real Estate, Homes for Sale in Marlboro NJ, Marlboro NJ, and Information on Marlboro NJ.

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Cheap Property for Sale - Maximizing Your Investment Capital for Huge Gains

Cheap property for sale is a great way to make long term capital gains but most investors make common mistakes and have know idea on how to turn the above into 30 - 100% profits or more.

Read the simple guidelines below for buying cheap property for sale and you could be on the way to huge gains.

1. Look for fair value property

Don't ever buy the cheapest property you can find, it's cheap for a reason no one wants it.

Instead look for property that is fairly priced and has solid reasons to rise in value.

For example

1. Infrastructure changes, like new roads, marina's, railways, airports etc are being are due to be built and will increase the attractiveness of the area.

2. The area is adjacent to a booming area and you expect overspill.

NEVER BUY

If there are not solid reasons for the property to rise.

You will get it cheaper, but you probably won't make money.

Pay a bit more and you will get better growth and lower risk

3. Buy a Bull market

At present in many countries with interest rates starting to bite ( like the USA) Its getting harder to make money.

So do what many foreign investors are doing, buy cheap property for sale overseas in countries that are close and stable.

Getting the big gains

For example making 30 - 100% gains in a market like the US on your investment capital is hard if not impossible in the current economic climate, however overseas not only can you buy property cheaper, you can get bigger gains.

In effect you get more bang for your buck.

Costa Rica has been providing this for years and an example will illustrate this:

A property bought near the popular resort of Jaco Just 15 years ago for $30,000, is worth as much as 750,000 today and prices still continue to rise.

There are however still some great cheap properties for sale on the Central Pacific coast that will show great gains.

Why will gains continue?

Quite simply beach front property is 70% less than in the southern USA and Americans are traveling just 3 hours south by direct flight to own their own slice of paradise at affordable cost.

Demand continues to rise and gains continue to be made.

Add in tax advantages, low property tax, the same rights as residents and one of the most stable countries in the world and you have a great way to make money in cheap property for sale.

Finally it's beautiful!

So if you want more for your money and bigger gains head south to Costa Rica and you will discover what increasing numbers of foreign investors have - Costa Rica cheap property for sale investment offers great gains and low risk.

A good booming location

Perhaps one of the best areas is the Central Pacific Coast which continues to expand buying near these expanding locations and infrastructure can be very lucrative.

Check them out for yourself and see.

About the Author

by sacha tarkovsky

FREE REPORT - HOW TO MAKE BIG MONEY IN REAL ESTATE

On all aspects of making money in real estate and more on Cheap PROPERTY for sale visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

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Five Real Estate Negotiation Tips - (Without Out These It Won't Happen)!

Real estate negotiation is a skill.

Regardless of how good your investment tactics are in real estate or how profitable you know it will be, if you cannot close the deal in a win-win method you will not succeed in real estate.

Her are some realistic and feasible tips to seal the deal;

* Don't do the market trader bartering!

The commonly used;

"I'll give you 10"

"No 20"

"12"

"18"

"14"

"17"

"15" Done!

You give them a ridiculously low price and you eventually meet in the middle with a fair price.

Everyone knows how it's going to go.

Many people take this approach to real estate, and whilst it is appropriate for buying an old dresser from a flea market it is definitely not the way to go with real estate!

So with real estate; you must start off with a reasonably fair price depending on the area, condition etc.

Starting off fair with each other right from the beginning is giving you both the respect you deserve and will give both of you trust and confidence in each other that you won't rip one another off!

* Get to know your opponent

By this I don't mean you must know when his birthday is and what his favorite color is. I mean find out his priorities and what's important to him regarding the property.

For example; if you know that his main concern is to move on a certain date, allow this to happen if it's in your power.

By doing this he will be obliged to make important concessions for you.

This is "knowing your opponent" and this is a great way for you to get the best out of real estate!

* Tackle the major concerns first

Don't get caught-up in all the minor details! Address the major concerns well before the minor details.

Addressing theses major details will be the deciding factor to the success or failure of this deal.

Leave the small details to last and then they won't seem so urgent and they will be much more easily settled.

* Compromise is the decider

The key to negotiation is compromise. The method of win-win needs to apply but by this it doesn't mean both parties will get everything that they want.

You'll have to sacrifice something to get something!

You must begin negotiation with this approach firmly imprinted in your mind otherwise you won't be very successful at all!

* Read through ALL of the contract

Before you sign absolutely anything - READ the contract and especially the small print!

Once you have read through the real estate contract get someone else to read it too.

About the Author

My name is Terri-Leigh Bennett and I hope these tips will help you like they helped me! I have actually found a fantastic Real Estate Success Kit that I thought was brilliant, if you would like to have one yourself click on the link. It's absolutely FREE! Click here http://www.justbookmarkit.com/realestate1

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