Monthly Archives: July 2016

Sparkling Future For Estate Agency

These days the growth factors have been taking a very vast and quick turn which is entirely leaps and bounds and coping with these immediate changes is something very challenging for the different industries. Every industry has its own setup and this may move according to the demands made and the changes evolving. The technology industry needs a very quick response if a business needs to be in the market for a future intent. However, the property and estate agent industry has now been on a steady position and there are bright chances for it to remain income generating in the future. On the other hand, the internet service providers which used to offer the card system have become extinct.

When it comes to focusing on the real estate business specifically one may expect the brightness of future for a number of reasons a few of these reasons may include the following:

Boom of Residential Spaces

These days at every point what we see is the construction of a new residential space which may be a bungalow or a huge building. The population is increasing day by day and with this the demand of residential properties is also increasing with the same pace. Therefore the future of estate agencies here may prove being a very outstanding one because when it comes to the sales and purchases of these residential spaces there is a major chance of the business of real estate to take a boom. The relation between the real estate and the residential properties is a direct one because people need a home for shelter and real estate may give a perfect deal.

Trend of Shopping Malls

Another very commonly increased concept all over the world is the prevailing concept of shopping malls. Previously people accustomed to run after the differed shops in different corners but with the passage of time these malls are taking very significant place in the lives of every individual. In this regard, the development of malls may leave out numerous shops and stores on individual basis which may need a selling agent and here the role of the real estate is something essential. Many builders may approach different agents for the purpose of either purchasing the individual shops left out or the builders working over the mall projects may move towards real estate agents for huge lands. In every case, the future of the real estate agency is a brighter one.

These two factors add a lot to the future of real estate agency and with this the reliability possessed by the agents makes people prefer professionals who are also a plus point for the business of real estate and this is why estate agent jobs are growing.

Candidates can search a range of estate agent jobs, throughout the UK & Ireland at estateagentvacancies.com

Article Source: http://EzineArticles.com/expert/Daniel_Leahy/2193167

Six Characteristics of a Good Note

The six critical factors to be aware of when buying or creating a real estate-backed note include the buyer/borrower, the collateral, the down payment, the terms of the note itself, seasoning and the associated paperwork. We’ll go through these one at a time.

The most important of these is the person buying the property and getting a loan from the seller. Most seller-financed loans are created for people with a credit score of 600 or greater, although most banks have a 620 minimum. Just like with banks, the better your score, the better the interest rate you can get.

If you are creating a note you can protect yourself from an applicant with poor credit by getting a larger down payment and charging a higher interest rate. These are things a note buyer will look for when considering the purchase of a loan.

The second thing to analyze is the property being offered as collateral. A pretty 3-bedroom home in a nice suburb would be worth more than a single-wide on 35 acres, 20 miles from the nearest grocery store. A well-built apartment building would be worth more than 50 acres of dirt.

When buying a note you must affirm that the property is correctly valued. If you get that number wrong, the whole deal starts off on shaky ground. While you may want to check a home’s value on Zillow, or Trulia, or eppraisal.com, your most accurate number will come in a BPO (Broker’s Price Opinion) created by a local realtor who has actually driven out to see the property. Sold comps and listing comps will be more accurate than anything produced by a software package like Zillow.

The third factor to consider is the down payment. Consider two people who each by a house worth $50,000. One puts down $800 and the other puts down $5,000 (10%). The note that has the great down payment will be worth more than the other if everything else is equivalent. If a buyer has enough “skin in the game” they will be more likely to make paying their mortgage a top priority since they have more to lose if they default.

The fourth thing to look at are the terms of the loan. What is the interest rate? Currently, a rate between 8 and 10% is pretty common in the seller-financed world. Much above that will make it difficult to pay. A note with a rate of 5 or 6% may pay too little to make it attractive to an investor who will be forced to deeply discount their offer to get their required yield.

The payback period can also affect the perceived value of a note. Generally, a short amortization period is more attractive because an investor will get her money back quicker.

If a note has a provision to collect escrows for taxes and insurance, that should bring a better price when sold than one that doesn’t. In the latter case the lender is counting on the buyer to set aside funds to take care of these payments, but that’s asking for a lot of self-discipline from someone who has shown via their credit score that they may not have much.

If the buyer can’t make the insurance payments, you as the investor may have to attach forced-place insurance, an expensive option to keep yourself covered.

Property taxes will be collected eventually and generally have a lien position ahead of the first mortgage. Non-payment over a period of years can lead to the loss of the property at a tax sale.

The last thing to look at on the note itself is the overall payment. An investor making an offer to buy a loan will want to feel comfortable that the buyer can afford to make the payments and still have enough left over for all their remaining living expenses. Also, if local rental rates are higher than their mortgage payment, that’s another incentive for the buyer to keep up their obligation to pay on time.

The fifth factor is called seasoning. That’s simply the amount of time the borrower has been making payments. A note buyer will offer more for a note with three years of seasoning than one where the new owner has only made three payments. A good track record gives an investor confidence that payments will continue being made on time and can even offset the negative affect of a low credit score.

Sixth and last, all the ancillary paperwork contributes to the overall value of a note. Here’s a list of documents to ask for from the note seller: title policy, tax certificate, mortgage or deed of trust, the allonge (showing the transfers of the loan), the mortgage transfers, credit report, payment history and original application including the social security number of the borrower. If you are creating a seller-financed note, having all these documents will keep the value of your note as high as possible.

So whether you’re buying a note or creating one, the same six pieces of the puzzle will be responsible for the size of the discount offered when a note is sold.

Article Source: http://EzineArticles.com/expert/Les_Goss/291877