By Brad Wrigley
Well, according to 15th century Western Philosopher Niccolo Machiavelli, "As long as the great majority of men are not deprived of either property or honor, they are satisfied". Dear Niccolo how wonderful to live in a day impervious to the wrath of subprime mortgages, interest rates and stamp duty. There is little question that the home buying equation in the 21st century is a different beast entirely. Whilst Cromwell's key decision may have been how many soldiers where required to take Trim castle in 1649, property buyers must answer the following 3 questions: the Why, the Who and the What before a single sample of Zuber wallpaper is even entertained.
Why Buy Now?
I feel that even now, at a time when relatively high interest rates within Ireland may be jamming the door shut for the heavily mortgage reliant resident purchaser, the door has swung freely open for the opportunist international and the domestic mortgage free/cash rich investor. The secret to success, if you want to call it that, is for the buyer to be in the right place at the right time, and in a position to act expeditiously and aggressively. With a number of shrewd investors already out there snapping up the bargains, time-poor home buyers will be left with the scraps.
There are also two many "glass half empty" organisations publishing reams of doom and gloom on the Irish property market. If an investor has the gift, and the richest ones usually do, to take a step back and have a look at what the current climate is actually telling us it isn't all that bad.
According to TSB/ESRI house prices have declined by 4.7% in the last 12 months. If we look at this in comparison to the 36% drop in the ISEQ general index since last February then this is positive news as far as our clients are concerned. From an investment perspective we are finally seeing a glimpse of realism in what has been an over inflated market for too long to remember. A house should only be worth what a buyer will pay for it and not as much as a vendor demands for it. For investors, this means that a 10-15% bid below asking price must be taken seriously and is a far cry from the bidding wars that regularly took properties 25% above their AMVs 12 months ago.
It's so important to remember that a large number of the wealthy elite in Ireland at present are the home buyer generation from the 80s who bought when the market was at its lowest. The sensible may buy during a bull market but the richest are the bears. In addition some reassurance for the prospective purchaser must come from Michael Hennigan of Finfacts belief that regardless of the bearish sentiment the economy is expected to continue to grow albeit at a much lower level.
Who is investing?
Our Property Finder clientele are from a variety of professions, locations and backgrounds and they are all bestowed the same absolute confidentiality and anonymity. We aim for a very specific market and offer a very exclusive service. Consequently, our clients can be in the public eye or may just wish to keep themselves to themselves.
What we have found though is that up to even 6 months ago there was a growing interest in the higher end of the property market from an international audience. At one stage the demographic was split between the USA, UK and Ireland at 50%, 35% and 15% respectively. Uncertainty in the US economy and the decline of the dollar has halved even the initial enquiries from our American market. My belief for the year ahead is that interest from the UK and from the domestic investor will increase. Renovations and remodelling of high-end property is a great way to add value to a home and we would envisage that many investors will be requesting us to look for these opportunities.
Economic growth here in the past decade has made Ireland one of the most desirable places to live in the world. Long gone are the days of high emigration and, thankfully, expats and their families are returning to this beautiful country. Ireland has so much to offer and improvements to the country's infrastructure mean that more and more families are happy to reside outside of the major cities and commute on a daily basis if necessary. This has, however, increased the demand for properties with designated helicopter pads! Of course, being able to move outside of a major city commuter belt also allows buyers to pick up so much more for their buck.
What's the next step for an investor?
Acquiring a dream property should be an enjoyable process. Every person has different lifestyle aspirations and these should be managed to deliver a very special home at the end of the project. Sometimes this is simply finding the perfect property but sometimes this is redesigning a property to exact requirements.
Of course hiring a property finder is not the best solution for everyone. Curiously this has little to do with additional cost as fees are usually absorbed within the negotiated final purchase price anyway. It is more down to necessity. A buyer looking for 3 bedroom semi within 10 miles of Cork City will find a plethora of options available to them on any of the property search engines. If they are not constrained by time or their location then a few phone calls later should have them viewing that dream home.
However, property finding can be an expensive and energy sapping process for the time poor or international buyer. Giving up your annual vacation or holiday, or even your weekends to trawl estate agents all over Ireland will squeeze the enthusiasm out of even the chirpiest buyer! In these circumstances, a good property finding company will prove both cost efficient and sanity preserving for their Clients.
Regardless of whether an investor or home buyer uses a service such as ours I would always advise buyers to approach any investment remembering that we are in a buyers market. Negotiate hard and do not be afraid to walk away if a property is valued above what you believe it is worth. I think you will be surprised at how many call-backs you receive on a Friday afternoon.
Ireland's leading luxury property finder Brad Wrigley specializes in helping international buyers or renters find their dream home within Ireland. If you want to find out more about how buying or renting a property in Ireland could be perfect for you or your family, book your free no obligation property consultation at www.emeraldhaven.com
Sunday, March 2, 2008
Does the Housing Market Affect Property Flipping Success?
By C Small
Every news story in print these days related to the real estate and housing market seems to predict disaster. Home prices diving, out of this world foreclosure rates, mortgage meltdowns, and stagnating market stories govern the headlines. As a real estate entrepreneur, shouldn't this news keep you awake at night? Shouldn't it make you rethink getting into house flipping in the first place? Shouldn't it cause some serious concerns?
The short answer, to put it frankly, is not really. The housing market should have little to do with your success as a house flipper. Your success as a flipper depends on many things: acquiring undervalued homes; making the right fixes; keeping costs small; making your property the best in its neighborhood; but it does not depend on the market itself.
Why then, are all the house flippers saying the sky is falling and the real estate business is hopeless? Because they aren't in this business with the right mindset. They are speculators, hoping to acquire a property and let the market itself boost its value. When the market stops going up, these speculators unexpectedly experience their profit dry up (or turn into huge debt) and they think the flipping business is over. When the market stops increasing for flippers, it can be a bonus, as the price for buying properties stops going up, making high end homes more affordable, making the market for the less desirable homes more saturated, and providing you with a great vehicle to sell your great home and purchase your fixer upper. The prospects for success can actually go up in a stagnant or declining housing market.
If you are beginning in this business your perspective should be one of creating equity. See your property flip as an opportunity to take something that is not worth much, add something to it, and get it to someone who will pay top dollar. It shouldn't matter that the market itself is not appreciating in value, because you are creating value and equity completely separate and apart from the market!
Remember this any time a naysayer tells you your real estate dreams are farfetched: you don't need market improvement to flourish. All market increases do is enhance your profit margins. All that is required is the right property in the right neighborhood that needs the right fixes. Find those three things and it doesn't matter what the market does, you can be successful.
C Small
Every news story in print these days related to the real estate and housing market seems to predict disaster. Home prices diving, out of this world foreclosure rates, mortgage meltdowns, and stagnating market stories govern the headlines. As a real estate entrepreneur, shouldn't this news keep you awake at night? Shouldn't it make you rethink getting into house flipping in the first place? Shouldn't it cause some serious concerns?
The short answer, to put it frankly, is not really. The housing market should have little to do with your success as a house flipper. Your success as a flipper depends on many things: acquiring undervalued homes; making the right fixes; keeping costs small; making your property the best in its neighborhood; but it does not depend on the market itself.
Why then, are all the house flippers saying the sky is falling and the real estate business is hopeless? Because they aren't in this business with the right mindset. They are speculators, hoping to acquire a property and let the market itself boost its value. When the market stops going up, these speculators unexpectedly experience their profit dry up (or turn into huge debt) and they think the flipping business is over. When the market stops increasing for flippers, it can be a bonus, as the price for buying properties stops going up, making high end homes more affordable, making the market for the less desirable homes more saturated, and providing you with a great vehicle to sell your great home and purchase your fixer upper. The prospects for success can actually go up in a stagnant or declining housing market.
If you are beginning in this business your perspective should be one of creating equity. See your property flip as an opportunity to take something that is not worth much, add something to it, and get it to someone who will pay top dollar. It shouldn't matter that the market itself is not appreciating in value, because you are creating value and equity completely separate and apart from the market!
Remember this any time a naysayer tells you your real estate dreams are farfetched: you don't need market improvement to flourish. All market increases do is enhance your profit margins. All that is required is the right property in the right neighborhood that needs the right fixes. Find those three things and it doesn't matter what the market does, you can be successful.
C Small
Foreclosure Real Estate - What You Need to Know Before Investing
By John Krajewski
Real estate investing isn't just for retirees looking to earn income. The promise of guaranteed earnings and the huge earning potential make REI one of the more popular ventures for many younger folks as well. With REI, the old adage of starting with the end in mind rings very true.
To begin, decide what type of REI you want to do before you ever look at your first house. Are you looking for a property to flip? Are you planning to renovate the property for some other use? Will you rent it out as an income-producing property? What kind of area are you looking to buy in - rural, urban, or suburban? Knowing which direction to head in will save you some time and help you find the professionals and funding that are right for you.
Once you know what type of real estate investment you want to make, start talking to area real estate agents. The right agent will know the market, and be able to offer guidance from an investment perspective. Depending of the type of REI you have chosen, a knowledgeable real estate agent will be able to help you quickly locate properties that fit your needs and your budget. Don't be afraid to let the agents know you are talking to others... REI is a huge money-maker. The promise of commission on a huge sale will be more than enough to make the real estate agents compete for your business.
Once you have an idea of what's out there for the type of real estate investment you want, start shopping around for financing. Have no credit or bad credit? Consider creative financing through private money lenders. PML's are often the funding choice for companies and well established real estate investors. They offer flexible funding terms, and can also put up money fast ... two very important things to keep in mind on deals that must close quickly. Otherwise, talk to banks and other financing companies to find out what's out there. It is best to prequalify for funding before going house hunting. This will prevent headaches later for everyone!
Real estate investing is not as hard as people might have you believe. It does take research and persistence. The income potential is amazing... there are tons of true stories out there of everyday, normal people making thousands of dollars through REI. It is possible, and it can be you. If you do your homework, and master the basics, it won't be long before people are reading your story of excellence and success.
About the Author:
John Krajewski is a 33-year old real estate investor who has spent several years building a successful REI portfolio. After facing and conquering the common REI trials and tribulations that most new investors deal with, John has poured his wealth of valuable information into one amazing e-book: Secrets to Foreclosure Profits. This powerful e-book teaches real estate investors of any level how to profitably invest in foreclosure properties using the insider secrets and little-known tips discovered by John during his direct experience with foreclosure REI. Besides real estate investing, John also enjoys snowboarding, mountain biking, networking with other investors, and spending time with his family. Learn more about John's e-book Secrets to Foreclosure Profits at http://www.4closuresecrets.com
Real estate investing isn't just for retirees looking to earn income. The promise of guaranteed earnings and the huge earning potential make REI one of the more popular ventures for many younger folks as well. With REI, the old adage of starting with the end in mind rings very true.
To begin, decide what type of REI you want to do before you ever look at your first house. Are you looking for a property to flip? Are you planning to renovate the property for some other use? Will you rent it out as an income-producing property? What kind of area are you looking to buy in - rural, urban, or suburban? Knowing which direction to head in will save you some time and help you find the professionals and funding that are right for you.
Once you know what type of real estate investment you want to make, start talking to area real estate agents. The right agent will know the market, and be able to offer guidance from an investment perspective. Depending of the type of REI you have chosen, a knowledgeable real estate agent will be able to help you quickly locate properties that fit your needs and your budget. Don't be afraid to let the agents know you are talking to others... REI is a huge money-maker. The promise of commission on a huge sale will be more than enough to make the real estate agents compete for your business.
Once you have an idea of what's out there for the type of real estate investment you want, start shopping around for financing. Have no credit or bad credit? Consider creative financing through private money lenders. PML's are often the funding choice for companies and well established real estate investors. They offer flexible funding terms, and can also put up money fast ... two very important things to keep in mind on deals that must close quickly. Otherwise, talk to banks and other financing companies to find out what's out there. It is best to prequalify for funding before going house hunting. This will prevent headaches later for everyone!
Real estate investing is not as hard as people might have you believe. It does take research and persistence. The income potential is amazing... there are tons of true stories out there of everyday, normal people making thousands of dollars through REI. It is possible, and it can be you. If you do your homework, and master the basics, it won't be long before people are reading your story of excellence and success.
About the Author:
John Krajewski is a 33-year old real estate investor who has spent several years building a successful REI portfolio. After facing and conquering the common REI trials and tribulations that most new investors deal with, John has poured his wealth of valuable information into one amazing e-book: Secrets to Foreclosure Profits. This powerful e-book teaches real estate investors of any level how to profitably invest in foreclosure properties using the insider secrets and little-known tips discovered by John during his direct experience with foreclosure REI. Besides real estate investing, John also enjoys snowboarding, mountain biking, networking with other investors, and spending time with his family. Learn more about John's e-book Secrets to Foreclosure Profits at http://www.4closuresecrets.com
Tips for Investing in Foreclosed and Real Estate Owned Property
By Simon Volkov
If you play your cards right, investing in foreclosed properties can be a very profitable venture. Although it's not quite as simple as the late-night infomercials lead you to believe, the following tips can help you prepare for what lies ahead.
Before property is labeled "Foreclosed" it must first be placed for sale through a real estate auction. In order to purchase property through the foreclosure auction, individuals must place a minimum bid equal to the amount of the loan balance, along with any other costs associated with the process, such as accrued interest and attorney fees.
Typically, foreclosed real estate is sold "as is". Occasionally, the ex-homeowner may still reside in the home and individuals who purchase the property will have to deal with having them evicted. This is not a pleasant experience, so conduct research on any foreclosed property you are interested in to determine if the home is vacant or occupied.
If your bid is accepted, it will be your responsibility to pay-off any liens and/or back taxes attached to the property. You will also be responsible for taking care of necessary repairs or renovations.
While it is true foreclosed property can yield a good return on your investment, it is imperative you engage in due diligence. Learn as much about the property as possible before placing your bid at auction. Keep in mind much of the real estate placed on the auction block is not worth the amount owed on the note. Therefore, you want to look for properties that do not have tax or creditor liens attached or those in need of extensive repairs or renovations.
If the foreclosed property is not sold through auction, it is returned to the mortgage company, who returns it to the bank. At this point, foreclosed property becomes real estate owned (REO) property.
Once foreclosed real estate becomes bank owned, the mortgage note no longer exists. Generally, the bank will negotiate with lien holders to remove or reduce liens placed against the property. They will also take care of evicting individuals still residing in the home. Occasionally, they will invest in repairs and renovations.
REO properties are frequently listed on bank websites. Included will be the name of the contact person, along with their phone number or e-mail address. Prior to contacting the specialist, thoroughly investigate the property and conduct research on the market value of other homes in the area where the foreclosed home is located.
If possible, obtain estimates to determine the cost of repairs or renovations. If you plan to do the work yourself, determine the length of time it will take to complete the repairs along with the cost of materials.
Keep in mind banks are just like any other business. Their eyes are on the bottom line. If you want a good deal on an REO foreclosed property, make a respectable offer and leave room for negotiation. More often than not, the bank will respond to your original offer with a counter-offer. You may have to submit several counter-offers to obtain the price you want. Be persistent and remember, virtually everything in a real estate transaction is negotiable.
Not every foreclosed property will be a good deal. You will probably have to sort through quite a bit of rubbish in order to find your diamond. But, it can and does happen and there's no reason you can't grab your slice of the real estate pie.
Simon Volkov is a private Real Estate Note Investor in Orange, California. He offers nationwide investment opportunities for serious investors via RSS feed and email subscription. His website provides resources and articles focused on today's real estate market. Subscribe to his free investment opportunities by visiting www.SimonVolkov.com.
If you play your cards right, investing in foreclosed properties can be a very profitable venture. Although it's not quite as simple as the late-night infomercials lead you to believe, the following tips can help you prepare for what lies ahead.
Before property is labeled "Foreclosed" it must first be placed for sale through a real estate auction. In order to purchase property through the foreclosure auction, individuals must place a minimum bid equal to the amount of the loan balance, along with any other costs associated with the process, such as accrued interest and attorney fees.
Typically, foreclosed real estate is sold "as is". Occasionally, the ex-homeowner may still reside in the home and individuals who purchase the property will have to deal with having them evicted. This is not a pleasant experience, so conduct research on any foreclosed property you are interested in to determine if the home is vacant or occupied.
If your bid is accepted, it will be your responsibility to pay-off any liens and/or back taxes attached to the property. You will also be responsible for taking care of necessary repairs or renovations.
While it is true foreclosed property can yield a good return on your investment, it is imperative you engage in due diligence. Learn as much about the property as possible before placing your bid at auction. Keep in mind much of the real estate placed on the auction block is not worth the amount owed on the note. Therefore, you want to look for properties that do not have tax or creditor liens attached or those in need of extensive repairs or renovations.
If the foreclosed property is not sold through auction, it is returned to the mortgage company, who returns it to the bank. At this point, foreclosed property becomes real estate owned (REO) property.
Once foreclosed real estate becomes bank owned, the mortgage note no longer exists. Generally, the bank will negotiate with lien holders to remove or reduce liens placed against the property. They will also take care of evicting individuals still residing in the home. Occasionally, they will invest in repairs and renovations.
REO properties are frequently listed on bank websites. Included will be the name of the contact person, along with their phone number or e-mail address. Prior to contacting the specialist, thoroughly investigate the property and conduct research on the market value of other homes in the area where the foreclosed home is located.
If possible, obtain estimates to determine the cost of repairs or renovations. If you plan to do the work yourself, determine the length of time it will take to complete the repairs along with the cost of materials.
Keep in mind banks are just like any other business. Their eyes are on the bottom line. If you want a good deal on an REO foreclosed property, make a respectable offer and leave room for negotiation. More often than not, the bank will respond to your original offer with a counter-offer. You may have to submit several counter-offers to obtain the price you want. Be persistent and remember, virtually everything in a real estate transaction is negotiable.
Not every foreclosed property will be a good deal. You will probably have to sort through quite a bit of rubbish in order to find your diamond. But, it can and does happen and there's no reason you can't grab your slice of the real estate pie.
Simon Volkov is a private Real Estate Note Investor in Orange, California. He offers nationwide investment opportunities for serious investors via RSS feed and email subscription. His website provides resources and articles focused on today's real estate market. Subscribe to his free investment opportunities by visiting www.SimonVolkov.com.
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