Investing in Bankruptcies

Investing in bankruptcies can be a big money maker for the real estate investor.  Investing in bankruptcies can result in a substantial income when you choose the right property.  There are several laws that can change from area to area that govern bankruptcies.  This means that there are risks involved to the investor, and being aware of these risks can help your investing tremendously. 

 A large risk that you face with bankruptcies is that the owner can come back and lay claim to their property.  Some states even have laws stating the bankruptcies are not complete for a certain amount of time.  You will have to determine if your region has this type of law protecting the homeowners when they file bankruptcy.  If this is the case you may want to make sure the home is vacant before making an offer on the property.  You do not want to put your money into something only to lose it when the homeowners get back on their feet.

When the owner defaults on the mortgage a bankruptcy order is then put in place. The bank will start the proceedings necessary to regain possession of the property.  These bankruptcy properties are usually listed in the local paper under the sheriff’s sale heading.  The opening bid usually start at approximately two thirds of the appraised value of the home.  The highest bidder is awarded the property.  Investing in bankruptcies can greatly increase an investor's portfolio. 

Having a plan of action when you are investing in bankruptcies is a crucial part. The first thing you must do is determine what your plans for the property are.  Is it going to be a rental property or do you plan to flip the house?  Determining what you want to do with your properties beforehand is important so that you know what area to look in, and how you can make a profit from your new property.

Choosing the bankruptcies carefully is a high priority.  You do not want to find bankruptcies which will be depreciating, instead look for high growth potential that will increase in value. Just because the price seems to be right does not mean the property is the one for you.  Determine what the average selling time was of the houses which have been sold. This will give you a good indication as to what you can get for the property you are looking at.

When investing in bankruptcies you should always look at the bottom line.  If you can not make a 10% or greater return on the investment then it is not a good property to purchase.  You must know your market. Looking at past sales in the area is key. Determining whether the area is growing or declining is an important factor in the bankruptcy. Knowing how long each house that sold stayed on the market is also significant. You may find bankruptcies which have been on the market for six months or more, this is a good indication that it is probably a bad investment. With all the other investors out there, if one of them did not want it, you probably do not want it either.

Once you become more familiar with investing in bankruptcies you will learn what to buy and what to avoid. You will understand which areas are good investments and which ones are not worth your time.  You will also be able to understand more of the real estate market and the lending red tape.  This will help when you are investing in bankruptcies.

So you have searched all the listing sites for Costa Rica on the web.  Read everything you could on how to invest, where to invest, what pitfalls to watch out for, and how to get a good return on your investment.  Well, by now you are probably more confused than when you started.  The following steps will help to simplify the process and ensure your buying experience will prove fruitful and enjoyable at the same time.

1.  Narrow your search down to a particular region -
It is important to decide what area you are most interested in.  The Northern Pacific has seen the most growth and development, but the prices reflect that.  The Central Valley remains a steady market with good access to San Jose.  The Central Pacific is a juvenile in regard to investment opportunity, and the South Pacific still a baby.
So depending on your investment goals, whether it is a “quick flip”, an extensive development, a long term hold, or simply a retirement place; the particular region you choose can weigh heavily towards the end result.

2.  Determine your budget -
In order to best utilize the time you are going to have while property hunting in Costa Rica, you should have a ballpark idea of how much money you are willing to spend.  There are so many amazing pieces of property on the market in Costa Rica, that you can get bogged down trying to see everything.  Stick to your budget, which narrows your search to the properties that are most important to see.

3.  Schedule your trip -
This is a big step that too many people take for granted.  You should allow yourself at least 15-30 days in the country to be able to acclimate yourself and view enough properties to feel comfortable buying.  Also you have to consider the weather conditions could play a vital role in how much property viewing you are actually able to do.  For example, if you planned a two-week trip in October to view property in the Southern Pacific Region, you could get rained out every day, as October is the peak of the rainy season.  The primary goal here is to allow yourself adequate time so that you do not feel pressured or hurried.

4.  Set up appointments -
Before leaving for your trip, take the time from the comfort of your home to set up several appointments.  I would even recommend setting up more than you think necessary because there is a high possibility that either you or the agent will not be able to make the appointment.  Business is very laid-back in Costa Rica and schedules are often not adhered to, so be prepared for that scenario going in. Costa Rica has a way of changing schedules, which is not always a bad thing.

5.  Start the hunt -
Now the fun part begins.  You have picked the area or areas you are most interested in, scheduled appointments to see properties within your budget, and you are on your way to locating that perfect piece for your needs.  While searching, be sure to check the area for previous sales so you can establish an idea of what properties have been selling for.  Even if you fall in love with the first place you see (which happens often here) keep on looking because it is liable to get even better.  Buying property in Costa Rica is a very safe process with only two primary pieces of documentation you must ensure are present and valid.  The first is the title, or escritura, this document; similar to a deed in the states guarantees ownership without liens or encumbrances.  The second is a valid survey, or plano, this document shows the physical boundaries of the property and often any improvements.  If both of these things are in order, you are well on your way to buying.  (Insider tip---talk to waiters at restaurants about property they might know is for sale. Nearly all will know of something, and often you can find great deals.  Just be sure to verify the aforementioned documentation if you get that far along)

6.  Make an offer -
This part can be a little tricky in Costa Rica as there is no rhyme or reason to what is an acceptable offer.  Most developments are fairly set in the prices they are asking for their land, but sometimes early in you can catch a development in need of cash flow and get a great deal.  When buying off a local, or Tico as they are known, I have seen offers as low as 50% accepted and other locals who were tremendously insulted by anything other than the asking price.  You really have to get a feel for who you are dealing with to make the right offer.

7.  Close the Deal -
This process is very similar to the one we have here in the states. Both parties can choose a separate lawyer or decide to use the same lawyer, which is often more cost effective.  If you desire, you can choose an attorney that speaks fluent English so he can explain the entire process to you.  These attorneys are generally more expensive, but the peace of mind is often worth the cost.  Your attorney will do a title search and verify the survey in a manner that is equivalent to the process here.  Most people choose to form a Costa Rican corporation to buy the property with, which helps to limit certain aspects of liability.  Once everyone has signed and the funds are transferred, you are now the proud owner of your own piece of paradise.  All property is then registered in the National Registry which is accessible online to check ownership status.

People are often intimated from the myths they hear in regard to purchasing property in foreign countries. The truth is, from personal experience, by simply following these easy steps you can ensure your experience will be a profitable and pleasant one.

If you have an income producing property, the amount of money you are left with at the end of your property expenses is considered cash flow.

Here is how it works . . .

Lets suppose you own a duplex and your monthly mortgage payment including taxes and insurance is approximately $1200.00.

Now lets suppose you have a tenant on each floor with a one year lease, and you charge each tenant $850.00 a month to live there. This is a total of $1700.00 paid to you on a monthly basis.

Once you have paid your mortgage of $1200.00, you are left with a balance of $500.00, this would be your monthly cash flow from the income producing property.

If you are looking to increase your monthly cash flow, one of the easiest ways to do it would be to raise the rent. This is by far one of the most effective and common ways of increasing cash flow.

Another way to increase cash flow depending on the amount of equity you have established in a property would be to use some of that investment property’s equity to purchase another income producing property.

Using the same principal of charging more than the amount of your total expenses on the property, you will once again be increasing your cash flow.

Keep in mind, when doing any kind of repairs to the home, including landscaping, make sure you save the receipts to be used as a write off. This to will help to reduce earnings, resulting in cash flow in the way of an annual tax return.

Are you going through all those anxiety pangs that one normally gets while mulling over the decision of buying a home? Homebuyers are an anxious lot, eager for useful real estate information. It pays to get yourself acquainted with the steps involved in the purchase of a home.

Here’s a list of important things to know before buying a home.

1. The first step is to find out how much you can afford or qualify for. Check your credit report to know your credit worthiness. Clear up problems if any before going to a lender. A good credit rating will result in you receiving lower interest rates.

2. Get pre-approved for a mortgage from a mortgage broker or lender, with a commitment to fund your mortgage in writing. Look out for frequent payment options and prepayment options, which would help knock off some years from your mortgage. And finally, settle for comfortable monthly payments. Once pre-approved for a loan, you will know your price range to begin shopping for real estate.

3. You should buy the real estate that is right for you. Make a wish list of all the specifications you want in your home. Prioritize them based on your wants and needs. Then mark out those aspects that you are willing to compromise on, in case you need to.

4. Get a good, reputable Real Estate Agent to assist you in locating a property in a desirable location. Your Real Estate Agent will know where to help you look for properties, while keeping your preferences and price range in mind.

5. Once your agent provides you with a list of properties that are affordable, you can drive by to check the neighborhood. Look for a house in a location that has good potential for future appreciation. Consider factors like safety, school districts, freeway access, recreational options, work commute time, shopping facilities etc.

6. Check out a sufficient amount of real estate until you develop a sense of comparative value of each neighborhood. Your real estate agent can help you with the valuation.Visiting the localities at different points in time during the day is ideal. This will help narrow down the list. You might want to check during the morning commute, or after dark to verify that the neighborhood suits you.

7. When you have found a house of your choice, compare its price with other houses in the area. Get your real estate agent to assess the value of the home.If all looks good, write an offer!

8. Lastly, consult your real estate agent to be sure that you obtain any professional inspections necessary to answer any questions you may have about the property.Some concerns may include: the condition of the roof, foundation, walls, plumbing, electrical, windows, etc.Other concerns may be: Is the property in a flood zone, or wildfire area.Is the property subject to Mello-Roos? Are there CC& Rs? Are there any easements on the property, etc.Your professional Real Estate Agent will assist you in answering these and other questions you may have prior to closing escrow on a property.

I want to ask you two questions. One, do you have a Will? And two, do you have written goals for the next one, three, five and ten years? If you answered yes to the first question but no to the second, you are planning more for your death than you are while you are here. Think about it. I want to challenge you to start setting some goals, but remember if a goal is not in writing, it is simply a conversation. It must be in writing and it must have a deadline. Here are a few guidelines for setting goals. Oh, by the way... you need a will also.

Goals Must be Specific

I want you to be specific and include details but start rough. When you start rough for example, you want a Mercedes. You do not have to get into the details about what color, what options, that sort of thing, just write it down. Make your list huge, what kind of home do you want, what you want for your family, college education, spend more time, travel, anything you can think of. You can come back later and prioritize them and set them up as to what you want in one month, three months, six months, twelve months, then three, five, ten, twenty, thirty year goals. The more goals you have, the happier you will be, the longer you will live, and the more prosperous you will be.
 
Goals Must be Believable

Remember this, your goals must be believable, by you, or you will not pay the price. They must be believable, they must be just out of your reach, but you must know you can reach them, if you really strive to do it.
 
Goals Must be Measurable

You cannot set a goal to be financially independent. There is no way you can measure that. You need to set a goal for the amount of income you want per month, per year, the amount of equity that you want in properties – one, three, five, ten and twenty years. It must be measurable. That way you can break it down to what I call “reduce it to the ridiculous”. If you know you want to earn $100,000 a year, you know that is $8,333 per month. That’s just one deal a month where I live. One of the things I have learned is, successful people set their goals quickly and they make adjustments as they go along. Just like successful people make decisions quickly, they do not vacillate in indecision or what I call sometimes; get mixed up in a funk of negativity.
 

Goals Must be Congruent

Your goals must also be congruent with your actions. You cannot set a goal to work harder, longer hours AND a goal to spend more time with your family. Those are not congruent. They must be congruent with your actions.
 
Visualize What You Want

Another good thing that will help you with your goals is to visualize what you want. If you see yourself as already having achieved the goal, you will fake out your mind and your mind sees the goal as already having been achieved. It’s called “fake it till you make it”. I used to do this all of the time. Just take a minute or two each day and think about life as it is with your goals already accomplished. It’s really easy when you get used to it.

Work Your Goals

The next thing you want to do is work your goals, work on the priority that moves you closer to your goals every day.

Number Your Goals

Number your goals in the order of importance. Not only is the goal important but so is the reason. Sure your want a car, but why do you want the car? Sure your want more money, but why do you want money? You want to be able to spend more time with your family, you want to be able to travel, you want to buy a Hummer, and you want to have an ocean front condo or send your children to the best college. Whatever it is, the reason must be there. The reason is more important than the goal itself.

Review, Monitor and Make Adjustments

Another thing you need to do is review, monitor and make adjustments on your goals. You have to be flexible. Some things are not going to happen, you have to face that; but you need to continuously strive to get better every day. If you will work harder on yourself than you do on your job then you will always be growing. Remember that last sentence and write it down as it is worth repeating. 

The Goals Must Have a Deadline
 
As I mentioned first, your goals must have a deadline. A goal without a deadline is just a conversation. When beginning to set your goals, I want you to set your goals in four basic areas:

Financial

You will set goals based on income, equity or net worth and cash flow. All of these are financial goals.

Fitness

This is your health. If you don’t feel good, chances are that you are not working at your maximum capacity. So, I want you to set some fitness goals to stay healthy. Remember “an apple a day”? What if this is right and you are not doing it? Start small though, you don’t try to tackle all of these at once; but you need to be healthy not only for you but for your family as well.

Family

Set family goals. What is an example of a family goal? Maybe you want to take four vacations a year. Maybe you want to visit a new state, three times a year or five times a year. Maybe you want to go see the Grandparents two or three times a year; but maybe not. Anyway, you get the point.

Faith

You need to set some spiritual goals, some faith goals. I am not going to get into a lot of detail about that but that will help you along your way. Remember, if you slip in one area of your goals, you are probably slipping in some other areas. Another thing I want you to think about is the people you associate with. Take a minute and think about this. If you think about your ten closes friends annual salary and divide it by ten, then that is pretty close to what you make. I’m not telling you to get rid of your friends, all I’m saying is whom you associate with, is who you are like, so please keep that in mind. Don’t get rid of your friends, just get some more that are where YOU want to be financially. Most of the people I hang out with now, we all make over $500,000.00 a year. That just blows me away. I never imagined I could make that kind of money…. Well I guess I could, as we are talking about goal setting and visualization aren’t we?
 

I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! that teaches how we buy and sell 5-10 properties a month, never look at them and have them sold in less than 2 hours. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com

Thanks and I look forward to working with you,
Larry Goins

Condo properties must surely be the investment of the future. Condo living is like having your own place but without the maintenance. It's like swimming in the pool without having to worry about the Ph balance.

It's like being able to walk around lovely, large grounds without having to worry about when you are going to cut the lawn. It's about having your screen door get stuck without having to get down on your hands and knees to fix it.

And all these reasons are linked to the reason why it may be the investment buy of the future. It has to do with 'ease of living' - which has to do with the large numbers of baby boomers who are coming up to retirement age. They may not be into condos yet ..... Many of them may initially want to lead a more active life while they still have a surplus of energy.

However, perhaps by the time they are into their late seventies or eighties they may be looking for the easier life! A life with someone to help with the upkeep: a life in a condo!

The sort of pampering that you can expect in a condo complex will largely depend on the type of service that is offered when you buy the place. The term full service is often quoted, but some full service tariffs are fuller than others!

Before you purchase a condo, check the full service list. Does it have a limit on the yearly number of maintenance calls you are entitled to? Are there routine maintenance checks included in the contract? Is there a shopping shuttle and could you have any input into the choice of shop?

Are there any rules in the prospectus that you would not like to concur with? For instance, are outdoor barbeques allowed on your balcony or patio? Is there limit time for noise at night?

Ask to have the full service list in writing and dated. When you draw up a purchase agreement, have the full service list attached to it as an appendix and have the terms of it signed into the contract.

Make sure that you do not only look into the lay-out of the unit and the facilities offered. There are other important factors. What is outside the resort wall? Anything? It has long been a complaint of condo-buyers that there is no nearby town to stroll to.

How private is the beach, if there is one. If you are considering buying a condo as an investment for possible future sale to a baby boomer, bear in mind that you will be opting for the facilities required by an older person.

Finally, when the sale time comes perhaps you will be too fond of your odd trips to the condo to want to sell it - maybe you should buy two while you're at it?

These days it is simply not enough to just throw your home onto the local real estate market and hope for the best. Agreed, sometimes this does work, but if you want to get top dollar for your home you are going to have to ensure that it is set apart from the majority of listed homes. So how can the average home owner set their home apart from the others? Simple, make a few upgrades. But be sure to do it right.

There are several things that an average buyer takes into account when looking at a home. You probably already know what they are, after all you bought the home you are now selling right? A great area to start is in the kitchen. Are the appliances a touch out of date? Replacing them is well worth the expense as new stove, fridge and the like are extremely popular additions and something that prospective buyers notice right off the bat. Another thing that people rarely thing of is the condition of the floors. Floors become such an unnoticed part of our lives that they can be easy to overlook. Carpeted floors should always be steam or professionally cleaned before prospective buyers come anywhere near your home. If you have wood or laminate make sure to clean them with the proper cleaner for the surface. Be careful of which cleaner you use as some cleaners can damage wood or laminate.

Now, take a look at your walls. Notice anything that could be improved? How about the color? Neutrality is gospel here. Outrageous colors may be exactly what defines your style but in keeping those when selling you can easily alienate a large group of buyers. Sticking with neutral colors will help you home to appeal to a greater number of people and give it a better chance of selling. Many buyers will be able to see through crazy colors, but not too many of them will want to have to repaint.

Take some time and make sure to clean the house from top to bottom, removing clutter and personal items. These are things you will have to pack sooner or later anyway, best to get a head start on it. Removing personal items will also help buyers to place themselves in the home without seeing pictures of someone else's family everywhere. If you ever have any doubts or concerns, talk to your realtor and they should be able to help you get your home in tip-top shape for selling.

Have you ever heard the term pre foreclosure? Do you think that this means the same thing as a foreclosed home? If you answered yes to these questions you are not alone. But at the same time, if you answered yes you are not familiar with the advantages of buying pre foreclosures.

Pre foreclosures are properties that are in the final stage before they are taken back by the bank. In other words, this means that the owner is still in charge of the property, but if they do not do anything to rectify their situation the bank is going to repossess the home.

There are many benefits that go along with buying pre foreclosures. The reason that many people miss out on these homes is because they have no clue what they are, or how to go about finding them.

The number one advantage of pre foreclosures is the price that goes along with them. Being that the owner has to sell the house before the bank takes it, they will be more inclined to listen to any offers that they receive. This means that it is not out of the realm of possibility to find pre foreclosures that are up to 50% off of the market value.

In addition to the great price that you can get on pre foreclosures, you will also be able to deal directly with the owner. This is an advantage because the buyer is in the driver’s seat during a pre foreclosure deal. If the home owner turns down your offer and fails to sell the property, they will end up losing everything. But they know that if they sell the home they can at least end up making back a little bit of money.

Locating pre foreclosures can be done in the same way as locating homes that that bank already owns. You can find them in the newspaper, online, or by calling the lender directly on the phone. The decision is up to you, and you can base it on what seems to be most effective.

Generally speaking, when you are buying pre foreclosures you will not have as much competition as you would when searching out foreclosed properties. This is beneficial in getting a great price and ending up with the home that you want in the end.

Buying pre foreclosures can be very profitable. If you are looking for a new home, don’t forget to check out these properties.

Selling your home in Tampa real estate needs some factors to work on and to improve. Of course, you want to make potentials buyers be attracted to your home.

There are some tips that this article will give you in order to make your home appealing enough to gain lots of potential buyers and soon you will have the best deal ever.

You have to look or view your home or you can ask a trusted person and appoint that person to approach your door and see things that you may not notice. Do you home need to be repainted, do you need to replace your door, do the doorbell still working, are the faucets working well, are the railings safe, these are few of the things that you should look up to since it can help any interested buyers to decide whether they’ll be interested or not.

Impression is very important, so you have to check out your home and do improvements in order to gain good impressions. A clean and neat exterior can make potential buyers feel that you have maintained your home and it is in good condition.

Windows should also be clean, so you have to make sure to clean it all up or hire window-washing service to make sure that the windows are efficiently clean and free from cobwebs and debris.

In order to add home exterior decoration that can make a home appealing is by planting flowers and hanging potted plants. Make sure to clean the gutter and mow the lawn in order to make sure that your yard is appealing enough for buyers and visitors. If you can’t do the work, you can hire professional lawn service which will help you treat unhealthy grass.

If you have kids, you have to make sure that their toys are properly stored and do not let it left hanging in your yard or inside your home.

If you have pets, you also have to make sure that they are in their proper places and never let them roam around your home, especially when potential buyers will come to visit. Not all people love pet, so you have to be careful.

You have to make sure as well that the house number of your home is visible enough in order for potential buyers to easily locate your home. Of course, if you want to sell your home, you will advertise your home for sale by making flyers, you can also use the internet. In making flyers, you have to put all the details about your home and put a photo of your home in the flyers.

Working wit real estate agent can be helpful as well, but make sure to have the right one. Take time to find the one that has the right skills and experiences in order to make sure that he/she can help you out in selling your home in Tampa real estate quickly.