Ways to Succeed in Real Estate

If you are considering the idea about becoming a real estate investor you need to make sure to do your homework before jumping right in. Real estate investing can be enormously lucrative for those who approach it in the right way and learn how to stay ahead of the competition.

Step 1: Get Your Finances in Order

You need to have all your personal finances in order before making the first step to entering the real estate market, you need to consider this: while many investors see very lucrative returns from real estate transactions, you won’t receive those amounts of money  if you don’t have a required a solid plan and patience. Don’t underestimate or neglect to figure out all of the possible expenses that come along with buying property, such as renovations, utilities, maintenance, legal fees, etc. If you’ve decided to become an investor but don’t have resources stashed away to pay cash outright, you’ll have to consider financing options as well.

Step 2: Define your Role

There are diverse roles that investors can play in the market. Some select to be landlords and others buy exclusively to restore and resell. Knowing which type you prefer to be from the beginning will help narrow down the selection of properties in your local market to match your specific investment approach. It also it is about how much time they actually want to put into their real estate.

Step 3: Study the Market

Most successful real estate investors put an effort to study the location they do business in and know its history, neighborhoods, schools, transportation and planned developments like the back of their hand. They compare current prices in an area to understand where the demand for the property is as well as helps you to begin to distinguish fair from overpriced properties.

Step 4: Think Outside the Box

Finally, to be as efficient and successful as possible, there are numerous options to choose from, while you’re looking in your most desired locations, keep an eye out for signs of a developing area nearby. New construction can mean big returns if you get in on the ground floor of something that’s about to be a booming community.

Investing in real estate can be just as fun and exciting as it is profitable. Use your connections and local resources as much as possible to find your niche in the business.

So if you are thinking about investing in real estate, take a look to our website http://www.fciexchange.com

HOME BUYING AND SELLING LATEST TRENDS

 

1. Home Sell fast, no discounts: In most parts of the country the homes are selling really fast and they are being sold near or above the listed price so forget the days of low estimated offers on homes, sit back and wait for desperate sellers. In a latest study by ZipRealty about the market, homes have selling at or above the listing price and that included different states like San Francisco, Seattle and Washington DC.
2. More homes hit the market, but not enough: as home prices climb and more homeowners start to regain equity , home owners will be more likely to list their homes for sale, the number of homes for sale in US including condos had increased in the last months of the year, but you need to have reasonable expectations, price your house at the right price so you can sell it quickly.
3. Mortgage rates rise: the low rates have become part of history; however, rates are heading up and they are unlikely to return to the low levels again.
4. Say goodbye to rates in the 3 percent range and get use to rates in the 4 percent range. This means that as mortgage rise, shorter-term adjustable-rate mortgages may become more attractive to some homebuyers and refinancers.

                         

DO YOU KNOW THAT ONE OF THE MOST PERFECT PLACES TO INVEST MONEY IS ACTUALLY REAL ESTATE?

There is a ton of emotional sellers that you can make money off.

If you are looking to invest in real estate you need to have something clear: you can always find a deal as long as you look for it. If you have some fortitude and some patience, investing in real estate might be an excellent time to invest in real estate.

You don’t need to be experienced to learn about the deals and start connection to be successful. You can understand market trends and bargains so you will be more likely to make money.

You should only be bidding on properties that have been on the marketplace for 6 or more months, and you should always be cash-flow-positive with any property.

Don’t take features like schools districts for granted because homes with these types of desirable characteristics usually sell fast. Plus, homes with good school districts frequently have a lower crime rate.

You should consider another important fact, when you are looking to invest real estate, you are thinking about buying a new property and then selling it. But the truth of the matter is that buying and selling foreclosed properties is far more profitable than dealing with new ones. Why is that? When you buy a new property, you will be purchasing its value as its value market; however, with foreclosure properties you are buying far below the market value.

In conclusion, if you are looking to invest in real estate, there is always going to be an opportunity to you to earn money buying and selling properties. One of them can be find on http://www.fciexchange.com, dare yourself to start new things.

HOW WILL NEW MORTGAGE RULES AFFECT ME?

The Home Loan business will soon have to adapt to new mortgage rules that will offer borrowers more protection. These rules will go into effect next year so if you are a lender or borrower make sure you know if it affects or benefits you.

The Mortgage Servicing Rules address the servicing of mortgage loans, and are implemented in both Regulation X and Regulation Z.

The Regulation X rule addresses:

• Error resolution and information requests (~~1024.35 and 1024.36)
• Force-placed insurance (~ 1024.37)
• General servicing policies, procedures, and requirements (~ 1024.38)
• Early intervention with delinquent consumers (~ 1024.39)
• Continuity of contact with delinquent consumers (~ 1024.40)
• Loss mitigation (~ 1024.41)

The Regulation Z rule addresses:

• Interest rate adjustment notices for ARMs (~ 1026.20)
• Prompt crediting of mortgage payments and responses to requests for payoff amounts (~ 1026.36(c)
• Periodic statements for mortgage loans (~ 1026.41)

The Mortgage Servicing Rules issued by the Consumer Financial Protection Bureau require servicers to establish certain policies, procedures, and requirements – including:

• Personnel to assist consumers who fall behind in their mortgage payments
• Contact consumers after delinquency
• Work with consumers  to be considered for applicable loss mitigation

The point of one of the main rules is simple: Lenders will be required to ensure that borrowers have the ability to repay their mortgages. In return, lenders will be protected from borrower lawsuits as long as they issue “safe” mortgages that follow guidelines.

The term “qualified mortgage” was first used within the text of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which became federal law on July 21, 2010. The CFPB was then given the task of finalizing that definition, which they did in January 2013. Here are the key features of a qualified mortgage:

a)      No Excessive Fees:  Fees paid by the borrower must not exceed 3% of the total amount borrowed

b)      No Toxic Loan Features:

•          No interest-only loans
•          No terms beyond 30 year
•          No negative-amortization loans
•          No balloon loans.

c)      Limits on Debt-to-Income Ratios: DTI ratios no higher than 43%

WHEN DO I HAVE TO FOLLOW THESE RULES?
There is something you need to have clear: these rules take effect on January 10, 2014. However, no service is required to comply with the rule until the effective date.
The 20(d) notice must be provided to the consumer between 210 and 240 days, the servicers will not be required to provide the notice when such payment is due 209 or fewer days from the effective date.

High lights

• The mortgage rules are designed to ensure that borrowers can repay.
• No excessive fees will be charged by the lender during mortgage application, processing and closing
• Homeowners will get renewed protections when they fall behind on payments.

For more info about “qualified mortgage” click on www.fciexchange.com

HOW DOES IT WORK WHEN YOU DECIDE TO BUY A MORTGAGE NOTE?

Buying a mortgage note means you take ownership of a mortgage and you receive the interest income from the mortgage, of course you have to deal with it if the borrower stops paying. However this can´t be that bad, because if the borrower doesn´t pay you can decide to start a foreclosure and claim the property as yours.

Nevertheless, there is something you need to have clear; the foreclosure process will have a cost, which is a minimum amount compared to the outcomes you´ll get after selling that house. This means you´ll get paid the monthly fee + interest + the house value after it´s sold and then subtract the amount you invested. So, do the numbers and you can see that it´s great business after all.

Mortgage notes, and any other instrument of debt, can be bought and sold, rapidly. The main purpose is to increase one’s investment yield. As an investor, this becomes a fourth level profit center.

If you have any additional questions on the process or if you want to discuss how to create the most valuable mortgage notes for resale to an investor, I suggest contacting our company FCI EXCHANGE (Click on www.fciexchange.com to access the web page) to do so, as we are a direct and independent note buyer on the secondary mortgage market.

How do I buy Notes on FCI ?

Indicative Offer and Transaction Summary:

• Indicative Offers can only be sent to Seller after Proof of Funds has been approved.
• Offer amounts, even at the Buy Now Price, are nonbinding until a Purchase and Sale Agreement has been signed.
• Following acceptance of an Indicative Offer, Buyer is given a Due Diligence Period, but still has the right to respond to any other Offer.
• Following Due Diligence and Final Offer acceptance, the transaction is a binding obligation when the Purchase and Sale Agreement has been executed by both parties.
• Buyer and Seller have the right to cancel the transaction at any time prior to the execution of the Purchase and Sale Agreement by both parties.

THE TRANSACTION PROCESS

1. Login and/or Register.
2. For Interested Loan do Preliminary Due Diligence / Purchase Due Diligence
3. Submit an Indicative Offer
4. After Offers are submitted, Transaction Summary is created. Go to My Offers to view status, responses, and continue the Transaction Process

There is significant information available on the Notes For Sale from the Seller, but Buyers should do their own research. The most popular Buyer research items not typically provided by the Seller are a current independent BPO and an Ownership & Encumbrance Report, both available from FCI under Due Diligence Options.

Please note that FCI EXCHANGE has no involvement in, or control over, a Seller’s asking price or a Buyer’s offering price. To assist in fair disclosure, Sellers are required to put down an asking price, and if a Seller counters a Buyer offer differently, the asking price will be adjusted accordingly.

No fees shall be assessed unless outlined in the Terms of Use for Trading on This Site. FCI EXCHANGE uses this performance based fee structure to ensure all Parties FCI Exchange’s lies in Closing Transactions and not simply Listing Loans.

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