real-estate

Foreign Buyers May Help Local Homeowners Avoid Foreclosure

2008-08-29T16:01:00.001-07:00

The past few months has seen a darkening in the economic outlook for the US. In addition to having a housing crisis, it now seems that the country is experiencing a recession.

The strength of the dollar has fallen and many consumers are wondering if there is any relief to be seen in the near future. In a quirky turn, these problems may provide incentive for foreign investors to encourage the housing market.

These foreign investors may help stop foreclosures around the country.
One of the reasons that many homeowners are finding it difficult to sell their homes is the fact that many would-be buyers either cannot afford the prices or they cannot qualify for mortgage loans.

As a result, they have found they have little choice but to continue to rent and wait for the housing market to stabilize before they venture into the home buying process. Some homeowners are finding interested buyers in a surprising source; however.

Today, homeowners are just as likely to discover buyers hailing from abroad as from next door.
Expert wisdom is speculating that investment from Europeans is highly likely to increase in the coming year.

Many foreign investors has seen the value in buying houses in the U.S. Prices have come down which is making them far more attractive. In addition, the weak dollar and strong euro has provided an even greater deal for those earning in euros. These foreign first time buyers are poised to replace the local first-time buyers before they were pushed out of the housing market as a result of the recent boom and crash.
If this trend continues, it could very well provide some relief for homeowners who either need to upgrade to larger homes or who need to get out of homes they can no longer afford.
Real estate brokers are indicating that interest from foreign investors is on the rise.

Brokers are reporting in increase of as much as five times the inquiries received just one year ago.
With the weak dollar, a foreign buyer who purchases a house today would need less money in euros to make a significant down payment on a house.

In fact, foreign buyers could make a $50,000 down payment for little more than 34,000 euros at the current exchange rate. That's nearly a 4,000 euro decrease in one year. With this result, foreign buyers are able to buy houses in the United States for less of an investment than local buyers.
The exchange rate has definitely provided support for increased spending power in many locations. In certain areas, like New York and Chicago, the demand has definitely increased. In some cases, the demand has grown so much that it is actually outpacing supply.

California and Florida are also proving to be popular with foreign buyers and investors.

The latter two markets, which have been among the hardest hit, are embracing the relief with open arms. Florida, in particular, is still struggling with the crash of the condo market.
Sellers and agents have quickly latched onto the idea that the place to look for interested buyers could very well be overseas.

As a result, many properties are now being marketed specifically toward foreign buyers. High-end luxury homes that have languished on the market for months are some of the first to be targeted for interested foreign buyers.
The internet has proven to be a highly successful marketing tool in the wake of the foreign buyer interest increase. Sellers and agents have discovered it is the easiest way to sell homes fast to this new market. Compared to other advertising means it is often far less costly and allows them to reach a much broader audience. When targeting properties toward foreign buyers, this can be doubly important.
Foreign buyers may not be the complete salvation that homeowners and real estate agents need to fully recover from the housing crash, however, they are are definitely offering a bit of welcome relief in many markets and for many homeowners looking to stop mortgage foreclosure.

Flood Risk Is the Number One Natural Disaster

2008-08-29T15:57:00.000-07:00

Regular homeowner’s insurance doesn't cover damage due to flooding which is a travesty because flooding is the number one natural disaster in the United States.
While not everyone lives in a flood plain, everyone lives in a flood zone and any property in the United States is susceptible to flooding.

It's just a matter of level of risk. Flood insurance is mandated for those whose homes are built on a flood plain because these areas carry a high level risk for flooding.
Much of Austin can be at risk for flooding.

The Cedar River, the Little Cedar River, and the Upper Iowa River have been known to jump their banks during heavy rainfall. Regardless of your level of risk, though, it’s a good idea to become savvy about the risks of flood damage and insurance coverage in your area.
Austin is located right in the middle of “Flash Flood Alley”, in Central Texas. This means sudden flooding may occur after a heavy rainfall.

The many small creeks and rivers running throughout the Austin region can suddenly overflow their banks and cause havoc. The City of Austin has worked to minimize the risk of flooding for this reason and, as a result, the Federal Emergency Management Agency (FEMA) will be releasing new flood plain maps to take effect September 26, 2008. You can find more information at this Austin City Connection website.
Some areas of the city have been moved out of the flood plain, while others find themselves moved into it.

Those who find themselves moved into the flood plain area should consider purchasing flood damage insurance by August 11, 2008 – 45 days before the maps' effective date – in order to take advantage of better rates.
Because Austin participates in the National Flood Insurance Program, federal flood insurance is available to residents through FEMA.

This means that Austin residents get a 15% reduction in insurance fees, making decent coverage affordable. For example, an average premium costs $400 a year for $100,000 worth of coverage. If you find you are one of those whose property has been moved into the flood plain area, you should contact your insurance agent to inquire about the federal insurance.
Here is another option to purchasing flood insurance, but it carries less certainty with it than the insurance option.

If the president declares a federal disaster due to widespread flooding in your region, you have the option of applying for Federal Disaster Assistance.

This aid takes the form of a loan that is repayable in full, plus interest. So, for example, if you should apply for and receive a $50,000 disaster assistance loan, it will cost you about $300 a month for 18 ½ years to pay it back. Insurance will pay for your covered losses whether or not the president declares a disaster.
Still, it's a good idea to have a look at your insurance options, regardless of the risk of flooding in your neighborhood.

Do You Really Want a Mortgage at Retirement Age

2008-08-29T15:26:00.000-07:00

When you’ve reached retirement age and are ready to kick back and take life easy, it's not a good move to put yourself in the stressful position of having to pay a mortgage. Whether it's for a new house or second vacation home, if you have the savings, many financial advisors say pay cash.
Mortgages increase risk at a time when it should be avoided. As you move retirement accounts from high-risk stocks to low-risk money market funds as you get closer to retirement day, it's just as prudent to avoid the financial risk of a mortgage at this time.
That said, there are some cases in which it might be advantageous to the retiree to assume a mortgage.
The tax benefits come to mind first. Taking advantage of this may require some fancy paperwork with your retirement accounts, though.
One advisor has recommended purchasing a higher-priced home and using the income from your IRA to pay down the mortgage.
The individual approaching retirement age, either sells his or her current home or purchases a second home – one that is more valuable than the current home. The individual then increases the cash flow from his or her IRA or other retirement account to pay the mortgage.
This strategy works easily for those whose retirement savings have accumulated a value of $2 million or more, though. And, as this is not most of us, we should probably consider the advice of the Finance Guy, John Henry McDonald, at News 8 Austin who echoes those advisors warning of mortgages in the retirement years.
Take the very public example of Ed McMahon. Mr. McMahon was reputed to be worth over $200 million in real estate. He was still actively working into his retirement years and therefore was confident he could easily meet the mortgage payments on the $4.8 million in loans he was carrying.
Then he fell down. Literally.
After an unfortunate accident, in which he broke his neck, he found himself unable to work. A series of operations to repair the damage set him back further. Couple this with the national real estate market on its current downward spiral, and you have a recipe for disaster that any retiree can ill afford.
Mr. McDonald says the majority of baby boomers – 55 percent – believe they can keep working, and carrying a mortgage, well into their 70s.
He advises those approaching retirement age to make every effort to pay down the mortgage – doubling up on payments if they have to.
He recommends refinancing at age 55 with a 10 year adjustable rate mortgage and make large monthly payments – double payments if necessary – to pay it off by age 65. He suggests that it may be necessary to downsize your residence in order to have a mortgage that is manageable.
The bottom line here is, if you're not fabulously rich – and most of us aren't – it doesn't make financial sense to carry a mortgage into your retirement years.

Escrow Eases the Home Buying Process

2008-08-29T15:16:00.000-07:00

Escrow is a term that will undoubtedly be discussed during the course of purchasing a house. Putting a down payment on a home begins the buying process. As there are several steps necessary to complete the process, it is important to guard this down payment. Hence the purpose of escrow, which is an account opened and maintained by an unbiased third party, which is not associated with the buyer or seller in any way.
Selecting an escrow agent is a joint decision between the buyer and the seller, usually the realtor has one that they recommend.
Make sure that the agent you choose has experience in handling escrow. Also, before agreeing on an escrow agent, it is wise to investigate the company the agent works for.
Is Escrow a Requirement?
You are not required to use an escrow agent in real estate, but you will have a hard time finding a bank or lending institution that does not require escrow.
This is due to the amount of money which is changing hands in the transaction. Escrow acts as a defence against either side not honoring the terms of the transaction.
Escrow: Things to Keep in Mind
Once escrow actions begin, be sure to have your photo identification and bring along the information on the home insurance you are purchasing.
Closing normally occurs within 30 to 60 days, long enough for you to get financing and the seller to meet his obligations, and the escrow account provides a guarantee that the money placed in it be paid out when all terms of the contract have been fulfilled.
Buying a home can be a hectic and nerve-wracking time.
You will need to secure homeowner's insurance and have your new home inspected and assessed for financing. It is important that you keep in touch with your escrow agent. Do not be afraid to call him or her with any questions, that is their job. An escrow agent can explain all escrow-related matters so that you will be able to execute any deadlines.
If there are obligations the seller has agreed to, you must inform the agent if you are not satisfied. Make sure to inspect each document for correctness, and inform your agent any changes that need be made for accuracy.
Just like closing fees, escrow costs can vary depending upon where the contract is being executed and the company handling it.
Once the transaction has been completed, you will receive a closing statement from the agent. This statement will show the money you paid into the account, the escrow agent's fee, the price of the property, and any other claims on the property, such as liens.
If you have overpaid, you may also receive a refund check.
Once you have received the closing statement, do not lose it. You will need to provide it to your accountant, to ensure accuracy on your tax returns. Also, the Internal Revenue Service may want to see your closing statement to prove that you paid the money you state for the property.

Mona Lisa Your Branding

2008-08-29T14:01:00.000-07:00

Have you mistakenly trained your branding to fall over and play dead? Do you know how to use psychology to create branding that lights up with the voltage of a thousand neon bulbs? And can you play Scrooge with your budget, yet get huge branding mileage? And if so, how? Read on and find out how you can be a Leonardo Da Vinci with your brand!
It’s Raining 3000+ Messages a Day!
I have a friend. Let’s call him Eugene. Partly because that’s his real name. Eugene positions himself as a pitch manager. Very effectively, he shows CEOs and executives (who make pitches for new and existing business) how they can use simple steps to get a powerful presentation across.
Eugene had a problem that all of us do.

His brand (or his company’s brand) was just one of three thousand new messages that bamboozle us every day through various media. To get his name welded in his customer’s brain was like being on a rocking chair. You feel the movement, but you go nowhere. Eugene’s brand was going places, but it was a slow tedious process.
He needed to get some prime real estate in his customer’s brain really quickly and without the benefit of Daddy Warbucks’ deep pockets. All he had to do was get their attention…
13 Boxes. Does That Get Your Attention?
Doesn’t your brain go nuts wanting to ask what is the significance of 13 boxes? That’s the new brand name of Eugene’s company. Can you see that immediately catching your attention? The brain is dying to know the significance of this strange sounding set of words. And it won’t let go till it gets an answer!
In this case the answer is simple.

Eugene has a system of 13 boxes in his training process that takes you from the start of your presentation to the final crescendo. The 13 boxes form the structure and the route you must follow to get results.
His company brand could be something like XYZ Training or have his own name (like accountants and law firms do) but why on earth would that excite his customer’s brain?
Another Branding Example called KeyGhost...
Here’s another example of vivid psychological branding called KeyGhost. KeyGhost is a powerful but simplistic device that monitors every keystroke on your keyboard. This spy-like product evades the scrutiny of the unobservant eye. A name like KeyGhost immediately ruffles the brain forcing it to stop what it’s doing.

Then it drives all its attention in the direction of this unusual sounding product.
This is exactly what you need. Once you’ve got a spotlight-hogging brand name, you start to own a tiny part of your customer’s brain that is yours to keep forever.
Forever Starts With a Trigger…
A trigger called Curiosity! Curiosity sounds a deafening red alert in every neuron of the brain. The brain is at its curious best when faced with something that seems irregular or uncommon in some way.
If your brand name doesn’t create a curiosity factor, you’re wasting gobs of money to just trying to cut through the communication clutter.

The sooner you get psychological exclamation marks into your brand name, the sooner you get the attention you crave for.
But What If You Have a Boring Company Name That You’re Stuck With?
Hey it happens! You inherited the brand name and there’s not much you can do with it without the shareholders going for your jugular. Well don’t fret. First you’ve got to realise that branding is not restricted to just your company name. A process/product that your company has or follows could become bigger than the company itself.
Look For The Power Of Your Processes…
With Eugene, his process was sitting under his nose all along.

In the case of 13 Boxes, it’s quite easy to draw up a dramatic scenario of how 13 boxes can get you out of your ‘box’ and give you immense confidence in your presentation skills. In his case, though, the process actually defined the company.
With KeyGhost, it’s a cinch to describe how the hardware works just like a ghost and yet link it back to your keyboard and computer.
You can be an accounting firm with a company name like “Boring, Dead and Co.” and still brand your prize-winning process and call it ‘Goodbye Extra Tax’ or ‘Corporate Loopholes.’
Do you think your clients will see you in a better light? You bet they will! So get going, get out and get working on your brand naming canvas right away!
Nonsensical Names Work Too…
One Red Dog, The Loaded Hog and other such names flout the basic principles of process and logic. Yet they seem to work powerful imagery on the brand name.

It’s the story that goes with it that creates a sense of immortality and distinctiveness around the brand.
Even if you choose to have a name that means very little and can drum up a story to match it, you’ve got yourself a winner. Which place would you rather frequent? 'One Red Dog' or 'Joe’s Café?' With a vivid name you’ve got the opportunity to weave a story -- even a story that you made up all by yourself!
Shazaam! It’s Branding With Drama!
Don’t just Mona Lisa your brand. Put some Shakespeare in it as well. Push the limits of your brand name and make it an action tool.

For example, 13 boxes could be presented as 13 different boxes placed on a CEO’s desk. Can you visualise the curiosity factor? What if the boxes were different shapes and different colours? Can you see the website name? The t-shirt design? The ad on TV? Can you see how extendable a picturesque brand name can be? by: Sean D'Souza

Mortgage vs. Real Estate Lead Generation

2008-08-29T13:46:00.000-07:00

It is fairly common for real estate companies and mortgage brokers to use leads. There is a difference between mortgage lead generation and real estate generation. Mortgage lead generation deals with people who need to refinance their homes or apply for loans, while real estate lead generation is a service that connects potential buyers with real estate agents.
Mortgage leads are generated in a number of different ways.
One way to create the leads is for the lender, that is the mortgage broker, to appear in a paper or online directory. This lets potential customers make the first contact. The lenders give information about themselves, like the interest rates they charge and types of lending programs they offer, along with their contact information. This allows potential borrowers to search out the lender that is best for them.
Real Estate lead generation is somewhat different.
It involves connecting prospective buyers to real estate agents.
It is usually a good idea to use a real estate lead generation service that uses only inbound leads, meaning that the buyer contacts the lead generator looking for a real estate agent. This way, the lead generator can get the most information possible from the buyer in order to find the most appropriate real estate agent.
Many lead generation services use tricks to lure prospective buyers.
Mortgage lead generation helps lenders and borrowers find each other. This service benefits everyone involved. Some of the most successful businesses on the Internet are lead generation agencies. by: Jimmy Sturo

The Rise of Real Estate Infomercials

2008-08-29T12:25:00.000-07:00

From the very beginning of the industry, real estate infomercials have been very successful. There’s something about the idea of making money in real estate that appeals to a lot of people.
In fact, most of the real estate infomercials that have appeared through the years have been scams for several reasons.
First the information that they purported to have, the secrets that only they knew but would sell to you for some small or not so small sum of money, were fairly common knowledge easily gleaned at a local library or available for free from the government.
Second, the “testimonials” from other, satisfied clients of the “plan” turned out to have been paid actors reading from a script and playing a role designed by the infomercial producers. And finally, some of them are using every advertising trick in the book to cover up the fact that they are outright lying.
The most famous example of real estate infomercials that turned out to be total frauds was a very successful program, that, to this day, many viewers remember seeing.
It stars a small, Vietnamese immigrant named Tom Vu who pitches his real estate magical formula from his mansion, his yacht or one of his many expensive cars while surrounded constantly with bikini clad swimsuit models. What was Tom Vu selling? A seminar where he would reveal how he, a dirt poor immigrant, made a fortune in real estate and how you could copy his formula and get wealthy yourself by buying the information.
What was he really selling?
Tom Vu sold the bodies of those gorgeous swimsuit models. Most people sat transfixed, watching this opulent display of wealth and flesh, hearing very little of what was actually being said and instantly got hooked. Before they knew it they were calling and signing up for old Tom’s seminar not because they were so taken with him and what he was saying, but because somehow he made them believe that they could be surrounded with beautiful women, just like Tom. If that little, funny looking guy could do it, then so can I! Somehow, this worked.
Tom has had some legal problems over this venture and the only secret he had to sell was the secret of making infomercials that mesmerized an audience into calling and spending some money without ever really knowing why.
This was early on in the growth of the industry when there was little accountability, but even so, Tom Vu was the model for almost all of the real estate infomercials that followed through the years.
Nowadays, real estate infomercials have learned how to use some of the fantastically successful Tom Vu techniques and avoid the legal problems.
They do deliver a product - a book, a guide, a history of profitable real estate transactions that could be followed and could be profitable. You’ve all seen the young, good looking guy talking about the fortune he has made buying houses for no money down, fixing them up and then selling them for a profit. Have you noticed he’s sitting poolside in Hawaii talking with one of his clients, a beautiful woman in a skimpy bathing suit? Tom Vu technique.
Or the guy telling you how he’s bought nothing but foreclosures and turned them over quickly for a healthy profit? He’ll sell you a detailed guide of how he does what he does and a list of where to find foreclosures that you can get for free from the government just by making a few toll free phone calls. Is it worth it? You decide.