As many of you know, I have been on an interesting journey since making my debut in Real Estate Reality Television by virtue of the HGTV hit series “My First Place.” One of the greatest joys for me has been meeting a variety of new people who share my passion for real estate and my love for the emerging media called reality television. I have had the good fortune of getting to know David & Melina Montelongo and Armando and Veronica Montelongo all from the A&E show “Flip this House,” and successful real estate investors from San Antonio, Texas.

And it’s from the United States Government.

No, really.

The Federal Trade Commission has recently issued a helpful guide that helps new buyers or sellers with some frequently asked questions concerning real estate. Titled Selling Your Home? Tips for Selecting a Real Estate Professional, the guide focuses on the proper amount you should expect to pay for a real estate commission, the ins and outs of contracts as well as business models.

While the guide is a bit slim, weighing in at only four pages, it does come with some useful info. Under the section about commissions, the guide explains that while six percent is the industry standard, it is negotiable, and if your real estate agent tells you there is a local or federal law on the books that says the commission must stay at that rate, they are lying and it’s probably a good sign to find a different broker who will be honest with you.

The guide goes on to encourage prospective clients to try to negotiate for a lower commission, since the broker needs your business just as much as you need theirs.

In the next section, the guide explains the difference between full-service real estate brokers, and discount brokers and emphasizes that if you go with a discount broker, you may have to do more of the leg work yourself. The guide also says that while a full-service agent usually provides all needed services for one flat rate, the discount broker is more likely to have an “a la carte” approach, where for each additional bit of help, there is an additional cost.

The guide goes on to provide advice on negotiating contracts in your favour and not the banks, as well as info on hiring a trustworthy real estate broker.

While taking advice from the federal government on, say, invading Iraq may not be a good idea, this pamphlet may end up being a godsend for those needing basic real estate advice. The pamphlet can be picket up at the FTC’s website ftc.gov/credit.

(c) Copyright 2008-2009 James A. Holmes. All Rights Reserved.

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James Holmes, Global Team Builder, Coach and Trainer, combining
online and offline techniques to help you grow your business. To request a free
30 minute consultation contact James by phone at 303-523-9503 or email at
james@AskJamesHolmes.com

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Note: If you’d like to reprint this article on your blog or in
your newsletter you have permission to do so as long as the copyright
information and the resource box above remains with the article.

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For many, wanderlust is just a part of life. You buy a beautiful home somewhere, settle down, have a family, but there is always a part of you that’s itching to get away. Vacations are part of that wanderlust; the chance to get away someplace beautiful. And then you see it. The local newspaper at your vacation destination, and lo and behold, there is a real estate section right there. Dare you even look? You can’t afford it, can you? Two homes? Is dual home ownership for you?

A second home can work for you, but you have to go into the process knowing what to expect. If you’re looking to get rich quick, don’t count on it. According to recent data, the price of real estate in areas that are deemed “Vacation Markets” has risen twice as fast as real estate in other areas. So, not only is a second home in your destination of choice going to cost you a pretty penny, it’s no longer a well-kept secret anymore and the chances of you flipping it to make a quick buck are slim.

The best piece of advice a possible vacation home buyer can heed right now is to buy for love not for money. Recent sharp downturns in vacation markets like Naples, Florida, Lake Tahoe, Nevada and Cape Cod, Massachusetts, have shown that trying to turn a profit in a vacation market is close to impossible. But there is a bright side to all of this. With the housing bubble going poof all across the country, those that are looking to sell will be doing so at lower prices. Now could be a great time to buy a place that you’re planning on keeping for a long while.

But how do you know if you have your head on straight about the whole thing? Well, take some time and evaluate the pluses and minuses of buying another home. Once you’ve decided on a area, spend some time there to make sure you like it. If it’s going to be a vacation home, you’ll want the scenery to be relaxing (if that’s what you’re looking for) or exciting (if that’s what you go on vacation to experience). A final check should be the bottom-line cost. If the price of the two houses makes up more than one third of your total income, you’ve spent too much.

Buying property is a huge investment for everyone, even the rich. Take the time to properly evaluate the pros and cons before you decide to own a second home or you could find yourself on a permanent vacation.

(c) Copyright 2008-2009 James A. Holmes. All Rights Reserved.

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James Holmes, Global Team Builder, Coach and Trainer, combining online and offline techniques to help you grow your business. To request a free 30 minute consultation contact James by phone at 303-523-9503 or email at
james@AskJamesHolmes.com

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Note: If you’d like to reprint this article on your blog or in your newsletter you have permission to do so as long as the copyright information and the resource box above remains with the article.

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A consumer’s credit history is archived by three service providers; Equifax, Experian, and Trans Union and their databases are often consolidated into a single report by third party credit agencies. The report is generally referred to as a credit report and it includes a credit score issued by each service provider. The scores range from 350-850 and are graded based on a set of criteria which includes payment history, account balances as compared to credit limits, amount of recently accumulated credit and inquires, among others factors.

The following generally outlines how a variety of traits within your profile may affect your credit scores and risk profile: Length of Credit History 15%, Payment History 35%, Credit Balances Owed 30%, and Recently Obtained Credit 10%. According to Colorado based Advantaged Credit of Colorado an example of a consumer’s favorable profile would include two installment loans, three revolving accounts with balances, balances on revolving debt below 30% of the high credit limit, no collections, no public records (judgments or liens), no foreclosures, no late payments.

My advice would be to obtain a copy of your credit report annually. This can be done by contacting each of the three credit service providers directly, or by accessing free online resources such as http://www.annualcreditreport.com/ . Once you have obtained your report, review it carefully for discrepancies including inquires made against your credit files. Report inaccurate information directly to the associated credit service providers; keep in mind that the information retained by the three providers may vary and the data is often 30-60 days delayed, so some information such as account balances may not be accurate. The law provides consumer protection and false information must be removed by the reporting entity.

Bottom Line: To safeguard yourself against identity theft or credit fraud review your credit report annually, immediately report any discrepancy; ask your property and casualty insurance agent if you are eligible for premium discounts for high credit scores. It is also important to make lenders aware that you understand that interest rates are a reflection of risk and that your good credit should be rewarded with the appropriate interest rates. If you have legitimate credit problems, seek the advice of a qualified credit consultant and develop a strategy to restore your credit profile. Beware of anyone who promises that they can remove negative information from your report for a fee, legitimate information cannot be removed and you will be disappointed.

Resources: Here is the contact information for the three credit service providers: Equifax 1-800-685-1111 http://www.equifax.com/, Experian 1-888-397-3742 http://www.experian.com/, and Trans Union 1-877-322-8228 http://www.transunion.com/

(c) Copyright 2008-2009 James A. Holmes. All Rights Reserved.

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James Holmes, Global Team Builder, Coach and Trainer, combining online and offline techniques to help you grow your business. To request a free 30 minute consultation contact James by phone at 303-523-9503 or email at james@AskJamesHolmes.com

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Note: If you’d like to reprint this article on your blog or in your newsletter you have permission to do so as long as the copyright information and the resource box above remains with the article.

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This product is specifically designed to accommodate investors who want to purchase and remodel fix-up properties in order to sell them for a gain or to refinance them under conventional terms once the property has been remodeled. The program not only works for 1 to 4 residential units, but also for commercial properties which have 5 or more units. The program is offered in metropolitan Denver, Colorado and surrounding cities, also in metropolitan Phoenix, Arizona and surrounding cities. The loan term is for 180 to 360 days, depending on property type. There are NO prepayment penalties and interest only payments are due monthly.

PROGRAM HIGHLIGHTS

• Our investor lends up to 90% of the purchase price and additionally lends 90% of the improvements that the borrower estimates they will make to the property. The borrowers are allowed to do work to the property themselves as it is not required that contractors complete the work.
• We can use equity in other properties (known as cross-collateralization) for the down payment on the fix-and-flip property so that the borrower does not have to put cash into the transaction, provided that our loan-to-value and other guidelines are met.
• We allow the properties to be titled in the name of corporations, partnerships or limited liability companies. This is very popular with fix-and-flip investors.
• Borrowers who are self-employed find the loan quick and easy to qualify for because we have flexible income underwriting.
• We do not have a specific limit on the number of investment properties upon which the borrower has financing.
• We close these loans very quickly. We typically provide approvals within 24 hours and many closings occur within 1 (one) week of approval. Our quick closings often help the buyer get a contract over other prospective buyers.
• We do not have any prepayment penalties. Naturally, this is of great importance to fix-and-flip investors.
• We allow partial releases of multiple unit properties.

(c) Copyright 2008-2009 James A. Holmes. All Rights Reserved.

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James Holmes, Global Team Builder, Coach and Trainer, combining online and offline techniques to help you grow your business. To request a free 30 minute consultation contact James by phone at 303-523-9503 or email at james@AskJamesHolmes.com

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Note: If you’d like to reprint this article on your blog or in your newsletter you have permission to do so as long as the copyright information and the resource box above remains with the article.

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