Showing posts with label Real estate dictionary. Show all posts
Showing posts with label Real estate dictionary. Show all posts
Saturday, 26 May 2012
Real Estate Dictionary
Welcome to the Real Estate Dictionary. This website is being created to help people understand all aspects of Real Estate. Each week a new topic will be added to the Real Estate Dictionary. If you have any information pertaining to Real Estate please feel free to share it on the blog. Please contact me for any questions at clinton.muehlenbrock@yahoo.com. I think forward to helping everyone have all the information needed to maked an informed choice before investing in Real Estate. Once again thank you for contributing to Real Estate Dictionary.
Sunday, 13 November 2011
We Buy Houses Scam
The Real Estate Dictionary topic of the day is, the increase in companies saying that they will buy houses. These are known as We Buy Houses Scam. We Buy Houses Scam is conducted with less then transparency. The Real Estate Dictionary feels this is a disgusting scam that preys on the weaknesses of peoples financial hardships. This scam uses many tactics to rip people off.
The Real Estate Dictionary has identified many methods they use. The first method they will use is the sign over responsibility contract. We Buy Houses Scam preys on people who are in threat of foreclosure. They will get the owner to sign over the rights to the house with a option to buy. They will then find a renter and hope the market recovers and try to find a buyer. If they do not find a buyer they turn back over the responsibility to the owner and they have profited off of rent money and then the owner still loses the house.
The second method The Real Estate Dictionary has identified is offering to buy the house for the price of pennies on the dollar. This is done through a short sale. A short sale is not a bad thing or a scam until the We Buy Houses businesses utilize it. They will work out a deal to get the home for pennies on the dollars with the approval of the current owner. They will then lie to the current owner and say to them you take on the difference in debt and we will reimburse you. Many times the reimbursement never occurs.
The Real Estate Dictionary has created a scenario in which the scam may be used. An example of We Buy Houses Scam goes as follows: A home owner is getting ready to be foreclosed on. The total outstanding loan amount is $150,000. The We Buy Houses Scam companies will convince the current owner to sell their home to them for $100,000 dollars and the owner and the bank agrees. In this case the bank only agrees to $120,000. The scam company convinces the owner to make a debt repayment plan to cover the difference. So the bank absorbs or loses $30,000 and the owner absorbs $20,000 in debt with the promise to be reimbursed by the scam company. The We Buy Houses Scam company gets the home for $100,000 and the home owner still goes bankrupt and their credit gets destroyed because they did not do as promised to the owner.
The Real Estate Dictionary has released this post in order to teach you to be very careful who you sell your home to. Yes these companies will buy your home but most likely yes you will be the one losing in the end.realestate-encyclopedia.blogspot.com
The Real Estate Dictionary has identified many methods they use. The first method they will use is the sign over responsibility contract. We Buy Houses Scam preys on people who are in threat of foreclosure. They will get the owner to sign over the rights to the house with a option to buy. They will then find a renter and hope the market recovers and try to find a buyer. If they do not find a buyer they turn back over the responsibility to the owner and they have profited off of rent money and then the owner still loses the house.
The second method The Real Estate Dictionary has identified is offering to buy the house for the price of pennies on the dollar. This is done through a short sale. A short sale is not a bad thing or a scam until the We Buy Houses businesses utilize it. They will work out a deal to get the home for pennies on the dollars with the approval of the current owner. They will then lie to the current owner and say to them you take on the difference in debt and we will reimburse you. Many times the reimbursement never occurs.
The Real Estate Dictionary has created a scenario in which the scam may be used. An example of We Buy Houses Scam goes as follows: A home owner is getting ready to be foreclosed on. The total outstanding loan amount is $150,000. The We Buy Houses Scam companies will convince the current owner to sell their home to them for $100,000 dollars and the owner and the bank agrees. In this case the bank only agrees to $120,000. The scam company convinces the owner to make a debt repayment plan to cover the difference. So the bank absorbs or loses $30,000 and the owner absorbs $20,000 in debt with the promise to be reimbursed by the scam company. The We Buy Houses Scam company gets the home for $100,000 and the home owner still goes bankrupt and their credit gets destroyed because they did not do as promised to the owner.
The Real Estate Dictionary has released this post in order to teach you to be very careful who you sell your home to. Yes these companies will buy your home but most likely yes you will be the one losing in the end.realestate-encyclopedia.blogspot.com
Tuesday, 1 June 2010
Finding Affordable Homes
Real Estate Dictionary has identified how to find affordable Real Estate even though it appears impossible to a significant number of people. The reality of purchasing an affordable home is that it is very simple. There are literally hundreds of ways to find discounted Real Estate. The following are the most common identified by the Real Estate Dictionary:
1. Cosmetically injured.
2. Bank owned.
3. Wholesale.
The first way to find an affordable piece of Real estate is to search for a property that is cosmetically injured. Cosmetically injured is a property that appears to be a property in bad condition. These are properties that need paint, carpet, cabinet refinishing, new appliances, and updated fixtures. Each one of these items can reduce the price of a home when it comes to appraisal. The fact is that most homebuyer’s lack the imagination to see what a home could look like fixed up. It is possible to find homes like this for up to 50% below market value. Purchasing one of these properties and spending a couple thousand dollars is your first way of obtaining the dream home at a decent price.
The second way to find affordable Real Estate at a decent price is to look for bank owned property. Bank owned properties are those that the bank foreclosed on the owner due to lack of payment. The reason it is wise to search for this type of property is because the bank simply wants he amount owed. What this means is that if someone purchased a home for $200,000 in 1990, the amount left on the mortgage is going to be significantly lower. The following is an example without interest being computed:
$200,000 (Original purchase price.)
-$133,000 (Total paid by original owner over 20 years.)
________________________________________________
$67,000 (Amount the bank wants for the property.)
As you can see from the equation above, the potential for the dream home and the dream price is very real and there are literally thousands of them on the market. The only challenge of getting a property like this is finding them. Generally you will not find these on the regular Real Estate market because many banks fear it will scare potential borrowers. The way to these homes is to get a realtor that specialized in bank owned property.
The third way to find the dream home for a great price is to purchase the property wholesale. Whole sales Real Estate are homes that are purchased by an individual who specializes in being a middleman in Real Estate transactions. Generally these homes are purchased for 60% of the market value or less. The whole sale specialist then looks for an investor who is wiling to purchase the home for a couple thousand dollars more then what they paid for it. Once again these homes are cosmetic homes and the only difference is that the home search has been completed for you.
In order to find whole sale properties you have to find he whole sale specialist. Whole sale specialists can be found two different ways. The first way is by doing a simple web search, just look up whole sale real estate. The second way to find whole sale specialists is to search the classified listings on your local newspaper.
There are literally hundreds of ways to find discounted Real Estate. Using the three methods listed in this article will open up new doors to having the dream home. Finding a discounted home is simple, it takes research, ability to imagine a damaged home being beautiful, and persistence. Do not give up your future home is out there, just go find it. Real Estate Dictionary home.
1. Cosmetically injured.
2. Bank owned.
3. Wholesale.
The first way to find an affordable piece of Real estate is to search for a property that is cosmetically injured. Cosmetically injured is a property that appears to be a property in bad condition. These are properties that need paint, carpet, cabinet refinishing, new appliances, and updated fixtures. Each one of these items can reduce the price of a home when it comes to appraisal. The fact is that most homebuyer’s lack the imagination to see what a home could look like fixed up. It is possible to find homes like this for up to 50% below market value. Purchasing one of these properties and spending a couple thousand dollars is your first way of obtaining the dream home at a decent price.
The second way to find affordable Real Estate at a decent price is to look for bank owned property. Bank owned properties are those that the bank foreclosed on the owner due to lack of payment. The reason it is wise to search for this type of property is because the bank simply wants he amount owed. What this means is that if someone purchased a home for $200,000 in 1990, the amount left on the mortgage is going to be significantly lower. The following is an example without interest being computed:
$200,000 (Original purchase price.)
-$133,000 (Total paid by original owner over 20 years.)
________________________________________________
$67,000 (Amount the bank wants for the property.)
As you can see from the equation above, the potential for the dream home and the dream price is very real and there are literally thousands of them on the market. The only challenge of getting a property like this is finding them. Generally you will not find these on the regular Real Estate market because many banks fear it will scare potential borrowers. The way to these homes is to get a realtor that specialized in bank owned property.
The third way to find the dream home for a great price is to purchase the property wholesale. Whole sales Real Estate are homes that are purchased by an individual who specializes in being a middleman in Real Estate transactions. Generally these homes are purchased for 60% of the market value or less. The whole sale specialist then looks for an investor who is wiling to purchase the home for a couple thousand dollars more then what they paid for it. Once again these homes are cosmetic homes and the only difference is that the home search has been completed for you.
In order to find whole sale properties you have to find he whole sale specialist. Whole sale specialists can be found two different ways. The first way is by doing a simple web search, just look up whole sale real estate. The second way to find whole sale specialists is to search the classified listings on your local newspaper.
There are literally hundreds of ways to find discounted Real Estate. Using the three methods listed in this article will open up new doors to having the dream home. Finding a discounted home is simple, it takes research, ability to imagine a damaged home being beautiful, and persistence. Do not give up your future home is out there, just go find it. Real Estate Dictionary home.
Thursday, 27 May 2010
Real Estate Possession Types
Real Estate Possession is the interest an individual has in a particular piece of real estate. Real Estate Dictionary has identified 4 types of real estate possession categories: Freehold, Lease Hold, Statuatory, and Equitable. These categories are very simple to understand.
The first category Real Estate Dictionary identified is freehold. This is the most common type of Real Estate possession. This means that an individual owns that rights to immovable land for an undetermined amount of time. An example of a freehold estate real estate possession would be an individual purchasing a home that does not have any restrictions on it. Restrictions will be discussed in further detail later.
The second type that Real Estate Dictionary identified was a lease hold Real Estate possession. This is an interest in real estate where the rights are limited. This is not ownership but ownership to certain rights granted by the person who has a freehold interest. An example of this type of real estate possession is an individual renting a house or an apartment for a certain time. There are many types of lease hold estates that will be discussed in further detail later.
The third type that Real Estate Dictionary Identified was the statuatory possession. This is a form of Real Estate possession that deals with community property. This type of deals with the legal rights of married couples mostly. This is a term that implies that a husband or wife has an undivided interest in the property.
The final type Real Estate Dictionary identified was the equitable estate. This type of estate is not an ownership in property or any possession but a claim on the property. This type deals with liens and easements. Liens and easements will be covered in further detail later. Examples of equitable estates are a contractor not being paid attaching the debt to the property owner. This means that when the house sells the contractor gets paid. There are many types of liens and priorities. Easements are the rights to access a property for certain reasons. An example would be a road that goes through a property to access another property. Easements will also be defined and further described later.
By now the Real Estate Dictionary should have given you a basic idea of the different types of real estate possession types.
The first category Real Estate Dictionary identified is freehold. This is the most common type of Real Estate possession. This means that an individual owns that rights to immovable land for an undetermined amount of time. An example of a freehold estate real estate possession would be an individual purchasing a home that does not have any restrictions on it. Restrictions will be discussed in further detail later.
The second type that Real Estate Dictionary identified was a lease hold Real Estate possession. This is an interest in real estate where the rights are limited. This is not ownership but ownership to certain rights granted by the person who has a freehold interest. An example of this type of real estate possession is an individual renting a house or an apartment for a certain time. There are many types of lease hold estates that will be discussed in further detail later.
The third type that Real Estate Dictionary Identified was the statuatory possession. This is a form of Real Estate possession that deals with community property. This type of deals with the legal rights of married couples mostly. This is a term that implies that a husband or wife has an undivided interest in the property.
The final type Real Estate Dictionary identified was the equitable estate. This type of estate is not an ownership in property or any possession but a claim on the property. This type deals with liens and easements. Liens and easements will be covered in further detail later. Examples of equitable estates are a contractor not being paid attaching the debt to the property owner. This means that when the house sells the contractor gets paid. There are many types of liens and priorities. Easements are the rights to access a property for certain reasons. An example would be a road that goes through a property to access another property. Easements will also be defined and further described later.
By now the Real Estate Dictionary should have given you a basic idea of the different types of real estate possession types.
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