Real Estate Investing – Using Options to Purchase Property | Real estate

Did you know that by using real estate options you can legally take control of valuable properties to generate quick income with only a small amount of money. Learning to understand and use this valuable technique can be extremely valuable to the success of a new or seasoned real estate investor.In order to take full advantage of this great technique, you only need to understand how the technique works and become familiar with, and follow, your local state laws. Having learned how to use this technique and the law, you will soon be on your way to a great return on your investing efforts.Here are some very important questions concerning real estate options…What is a real estate option? Is that the same as a Lease Option? I thought real estate options were illegal! What are the steps in a real estate option transaction? And – How are options used to purchase real estate at discounted prices?What is a real estate option?A real estate option is a unilateral agreement:Between an optionor (The Seller) and an optionee (The Buyer, for the rest of this article I will refer to them only as the Buyer and Seller)Binding only on the SellerWhere the exclusive, unrestricted, and irrevocable option to purchase is exchanged with the Buyer for valuable considerationThe purchase of the option does not impose any obligation upon the Buyer to exercise the option and or purchase the propertyHowever, the Seller is bound by the agreement to sell the property at the agreed price to the Buyer should the Buyer choose to purchase the property within the option time periodThe elements that must be spelled out in an option agreement are:o Price (consideration) to be paid for the optiono Time-when will the option start and when will it expireo Strike Price-the mutually agreed purchase price or property during the option periodo Other terms and conditions of the option agreementIs a real estate option the same as a Lease Option?Yes and No! The option part of a lease option agreement could be exactly the same as the option agreement we are discussing but the lease option includes a lease for the property.
I thought real estate options were illegal!Real Estate Options of some kind are legal in most free countries in the world. It is the lease part that may cause some legal problems in certain American States. In order to avoid any problems, be sure to consult with a real estate attorney before entering into any real estate agreement.
What are the steps in a real estate option transaction?Here is a step by step overview of an option transaction:1. The Buyer and the Seller enter into an agreementAnd the Buyer pays an option consideration to the Seller The Seller grants the Buyer the exclusive, unrestricted, and irrevocable option to purchase property at a fixed purchase price
during a specified period of time.2. The Buyer eitherSets up a closing and purchases the real estate during the option perio sells the option to another investor or Lets the option expire by not purchasing the property during the option period
How are options used to purchase real estate at discounted prices?Investors may use options to gain control of a property for short time. During that time, the investor can seek out another buyer to sell to for a higher price than the option amount. The profit is the amount of difference in the amount of the option and the sale price.But a more creative use of an option would be to locate a seller having a hard time selling their property. Then convince that seller to sell you an option to purchase but with the right to sublease it immediately. The investor may then rent out the property on a rent to own agreement. This will allow the investor to generate some income while helping their renter get into the position to purchase the property from them at a substantial profit.Options are a great way to tie up property for a small amount of money. Some of the benefits of using options to purchase property are:Saving the closing costs of purchasing and selling the propertySaving the holding costs involved in purchasing a propertySaving the maintenance and many other holding costs of owning a propertySaving time by avoiding the loan process–setting up and going to closingsPutting time to use on more productive efforts like finding more optionsOne other thing to keep in mind is that a real estate option will expire when a Buyer fails to exercise the real estate option within the option period of the agreement. At that point the Buyer will not only lose their control of the property but also their original option payment.

Crisis Or Opportunity – The Truth About The Arizona Real Estate Market | Real estate

The present real estate market is acting just as it should on the heels of the greatest real estate boom in the last 40 years. There is a long way to fall to get back to “normal”. This falling back into a normal market, coupled with the contraction of the sub-prime mortgage market has the real estate consumer, and many homeowners in a state of fear. The various media continue to depict a very grim picture of the markets in general without distinguishing between the national market and local markets, such as the Arizona real estate market, with factors unique in the ways of population growth and investor activity. I have seen numerous articles referring to the sub-prime debacle as a global crisis. That may be taking it just a bit too far.The truth is, there is no geopolitical significance to recent events in the U.S. real estate market and the sub-prime crisis. To rise to a level of significance, an event — economic, political, or military — must result in a decisive change in the international system, or at least, a fundamental change in the behavior of a nation. The Japanese banking crisis of the early 1990s was a geopolitically significant event. Japan, the second-largest economy in the world, changed its behavior in important ways, leaving room for China to move into the niche Japan had previously owned as the world’s export dynamo. On the other hand, the dot-com meltdown was not geopolitically significant. The U.S. economy had been expanding for about nine years, a remarkably long time, and was due for a recession. Inefficiencies had become rampant in the system, nowhere more so than in the dot-com bubble. That sector was demolished and life went on.In contrast to real estate holdings, the dot-com companies often consisted of no real property, no real chattel, and in many cases very little intellectual property. It really was a bubble. There was virtually, (pun intended), no substance to many of the companies unsuspecting investors were dumping money into as those stocks rallied and later collapsed. There was nothing left of those companies in the aftermath because there was nothing to them when they were raising money through their publicly offered stocks. So, just like when you blew bubbles as a little kid, when the bubble popped, there was absolutely nothing left. Not so with real estate, which by definition, is real property. There is no real estate bubble! Real estate ownership in the United States continues to be coveted the world over and local markets will thrive with the Arizona Real Estate market leading the way, as the country’s leader in percent population growth, through the year 2030.As for the sub-prime “crisis”, we have to take a look at the bigger picture of the national real estate market. To begin with, remember that mortgage delinquency problems affect only people with outstanding loans, and more than one out of three homeowners own their properties debt-free. Of those who have mortgages, approximately 20% are sub-prime. 14.5% of those are delinquent. Sub-prime loans in default make up only about 2.9% of the entire mortgage market. Now, consider that only 2/3 of homeowners have a mortgage, and the total percentage of homeowners in default on their sub-prime loans stands at around 1.9%. The remaining two-thirds of all homeowners with active mortgage prime loans that are 30 days past due or more constitute just 2.6% of all loans nationwide. In other words, among mortgages made to borrowers with good credit at application, 97.4% are continuing to be paid on time.As for the record jumps in new foreclosure filings, again, you’ve got to look closely at the hard data. In 34 states, the rate of new foreclosures actually decreased. In most other states, the increases were minor — except in the California, Florida, Nevada, and Arizona real estate markets. These increases were attributable in part to investors walking away from condos, second homes, and rental houses they bought during the boom years.Doug Duncan, chief economist for the Mortgage Bankers Association, says that without the foreclosure spikes in those states, “we would have seen a nationwide drop in the rate of foreclosure filings.” In Nevada, for instance, non-owner-occupied (investor) loans accounted for 32% of all serious delinquencies and new foreclosure actions. In Florida, the investor share of serious delinquencies was 25%; in Arizona, 26%; and in California, 21%. That compares with a rate of 13% for the rest of the country. This makes for some great buys for the savvy Arizona real estate investor in the area of short sales, foreclosures, and wholesale properties.Bottom line: Those nasty foreclosure and delinquency rates you’re hearing about are for real. But they’re highly concentrated among loan types, local and regional economies, and investors who got their foot caught in the door at the end of the “boom” and are just walking away from those poorly performing properties. Most of those investors still have homes to live in, maybe more than one.In the wake of the boom years, we now have a high inventory of homes on the market, Investors and speculators who quickly bought up homes dumped them just as quickly back on the market in hopes of a fast return. The frenzy of investors purchasing homes put pressure on inventories and drove prices up, further increasing investor activity. Then, as if all at once, many of those investors put their properties on the market, creating an imbalance in the reverse direction. With so many homes on the market, prices began to stall and then fell. Prices will continue to fall until demand chews up excess inventories.With investors no longer a big part of housing demand, primary homeowners are slowly chipping away at the existing inventory. The Las Vegas housing market will rebound in March 2008, according to the largest and most respected appraisal firm locally. The main contributing factor to the sooner than later rebound of this southwestern city is a growing population and thriving local economy.Arizona and Nevada are expected to lead the country in percentage population growth for the next 20-25 years. The population of Arizona is expected to approximately double during that time so we can expect a strong housing demand going forward. Normal inventory levels for Phoenix real estate are about 6-8 months. Current inventory is about 10-12 months. So, we are not far above “normal” inventories in Phoenix. There are, however, outlying cities in this large metropolis that have inventories in excess of 1 year. Queen Creek real estate inventory is the worst with approximately a 2-3 year surplus of homes on the market, mostly due to the large percentage of new homes purchased by investors and then quickly flipped back onto the resale market. Surprise and Peoria real estate markets have a 1-2 year inventory for largely the same reason. We are already seeing some Scottsdale real estate and Paradise Valley real estate prices increase in value. Billions of dollars are being poured into the local economy in the way of commercial development from the downtown area to Northeast Phoenix and Scottsdale.The demand for Arizona homes will remain strong in years ahead as new populations create the need. The demand for housing across our great nation will remain strong as this next generation of young debutantes steps onto the home buying stage. Interest rates are still at historic lows and the lending institutions will continue to offer creative financing options. Sure, some hedge funds lost the air in their tires, but financing sub-prime loans is a high stakes game for the super rich and is not of geopolitical significance. They will find other ways to lend their billions for huge profits in the wake of this sub-prime debacle. Let’s not be gripped in the fear created by reports from all media types trying to “make news”. Let’s face it, the real numbers are not that bloody exciting. Ask yourself, is this an Arizona real estate crisis, or the perfect time to buy an affordable Arizona home? Proper timing and negotiating techniques make all the difference in the current Arizona real estate market. When choosing an Arizona realtor, trust the expertise and experience of Equity Alliance Properties.

Social Media Marketing Services – Important Business Services for Modern Times | business services

Social media marketing services is a new concept that arose from the global market’s heavy dependence on the internet. As such social marketing consultants have become important for businesses who what to take advantage of the online market boom. It is important to know how these leading ideas work if you want to ensure your company’s success.What is social media?Social media refers to the various forms of social networks including famous platforms such as LinkedIn, Twitter and Facebook to name a few. They connect thousands, even millions, of people with particular relations, demography, and interests via the internet, thus creating an online community.What are its advantages?Its advantages depend on its user. For an individual the benefit might be to stay connected with other people, personally and professionally.A person who has an account on Facebook, for instance, can keep track of family and friends whom they don’t always see. People with Twitter accounts may broadcast their own thoughts or activities over the Internet. They can also follow the escapades of their favorite celebrities and personalities.Someone with a LinkedIn account has an opportunity to land a great career. This networking site allows possible job recruiters and companies to view resumes and seek feedback from your former employers and colleagues. It also allows users to view online job listings so they can begin job-hunting anytime.Companies may use a social market to respond to client questions and concerns. They can also use it to broadcast events and launches at no extra cost. Another possible application is to use it for contests and raffle announcements. Some companies also use it to broadcast their profiles to potential applicants.What are the social media marketing services available?Services vary from one company to the next. Some social media marketing companies may simply provide setting up and maintenance of accounts on Twitter, Facebook or LinkedIn. They will also handle design templates and eventual upkeep for comments, announcements, and posts.Some companies can go beyond these simple offerings and attach additional packages for research, event planning, product or service launching, trade shows, and more.What does a social media marketing consultant do?A consultant, in this case, is a person who plans and executes different strategies to promote a product or service using social market networks. The person might possess a degree in marketing or advertising, or have related experience when it comes to traditional media such as TV, radio, and print ads.Many consultants today have more flexibility as well. For example, they may be working in firms offering web design as a primary product while providing network media marketing on the side. Or maybe directly work for a small or large company who needs in-house social media personnel while providing the same service to other groups, assuming they’re not directly competing of course.How should I get social media services?Hiring a reliable company dedicated to performing the task is ideal. Doing so will ensure that your company has a focused team working to support you. This can include the help of several social media consultants who can design and carry out necessary tactics so your firm achieves all marketing requirements and goals.Take careful steps before heading out and employing just about any firm out there. Ask them about their experience and client lists. Study their offered packages and services; make sure you will get the best social media marketing services for your money’s worth.