You are better off looking for a mortgage broker. Mortgage brokers are professional individuals or companies who act as the intermediary between borrowers and lenders during mortgage transactions. Using the services of a mortgage broker will cut out all the leg work – or the Internet searches – as mortgage brokers have all the information you can access – and much more – at their finger tips. Getting your mortgage through a mortgage broker will give you a much better chance of getting the best mortgage deal for you.

Mortgages come in many different shapes and sizes these days. There are tracker mortgages, discounted mortgages, variable rates, fixed rates, adverse credit mortgages, sub-prime mortgages, CCJ mortgages. It can be very confusing! Mortgage brokers understand all the terms involved and will be able to explain it all to you. In fact, of course, they will cut through all the terms that are irrelevant to you and concentrate on getting a mortgage to suit your own personal circumstances.

What a mortgage broker will do for you is not something you want to spend time doing for yourself. Yes, you could trawl the Internet and find all the terms and all the different mortgage types and come to your own understanding, but why bother, when a mortgage broker can do it all for you?

Mortgage brokers need not cost you the earth. In fact, many offer their services to you for free, because they will get paid commission by the mortgage provider. But be careful of this, as you don’t want a mortgage broker to advise you for his own benefit. Ask your mortgage broker to explain all the fees that he is receiving at every step of the way. He is obliged by law to tell you what fees he is receiving and from whom.

Your mortgage broker will also tell you about all fees associated with your mortgage. These might include arrangement fees, booking fees, reservation fees. They are called different names, but you just need to know how much it’s going to cost you, and when. Your mortgage broker will not hide this from you for any lender’s product, because he should not mind which one you choose, so long as it is the right one for you.

So, don’t spend your time looking for mortgages or charging up and down your High Street looking for mortgage providers. Instead, spend your time talking to two or three mortgage brokers – and choose the best one of those to start your mortgage search.

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I do agree as I work with these deals all the time. However real estate investing can be a risky business and a very slippery slope. One thing that is indisputable, investing in Real Estate involves MATH.

Yes our favorite subject. But it is really quite easy and Here it is:

INVESTOR + REALTOR LOYALTY= SUCCESS

1. First, you must, not it would be nice if you did, but you must interview local real estate agents in the area you are thinking of investing, because they are in the trenches every day with buyers. Realtors know what buyers want, what neighborhoods are in transition, declining, revitalizing and which areas will likely bring investors the best return on their investment down the road.

2, Once you have interviewed several Realtors to see which ones are selling, not just listing the properties in your chosen area then commit to them. Let me say this again….commit to your Realtor because they will work hard to make the entire transaction smooth and bring it to its ultimate conclusion….closing. 

There are many, many steps along the way from contract to closing. If you are loyal to your Realtor, they will be loyal to you and will be a considerable asset in your investment plans. As a good investor you must realize the importance of having a good real estate agent in your corner. It can mean the difference between success and failure. Your TIME is money and your Realtor saves you an incredible amount of time, from negotiating the contract, to setting up the inspection, to working with the lender, appraiser and the closing attorney, the list goes on and on.

3. If you buy to renovate and resell, guess what? The Realtors are a wealth of information when it comes to contractors who they recommend for your project. They have had the opportunity to see how these contractors work, their fees, their reliability, etc. Bad contractors can eat away at your profits quickly, so you need good ones.

4. Okay, so now you are ready to resell the property. It is here where many investors think the hard part is over. They think they will just put a FOR SALE BY OWNER (FSBO) sign in the yard and sell this thing on their own. BIG mistake in this market. Now more than ever you need a Realtor working hard to get the home sold. They have access to buyers that you do not, when a buyer does comes along, again the negotiation process starts and you do not have to deal with that buyer face to face. As an investor there are significant benefits in NOT having to deal with the buyers directly. Remember TIME is money and many investors mistakenly think, hey I can sell this home on my own and save thousands in commission, but forget to realize that they will likely hold onto that property for a longer period of time than if they had used a Realtor from the start. 

Here is what happens so many times. Investor puts the home on the market on their own, it sits there unsold for a few months or more and THEN they call upon the Realtor. Well they have just lost equity by having to pay their mortgage note for the months that the home sat unsold on the market. Realtors will tell you, the longer it sits, it becomes stale and you will most likely have to reduce your price to sell. 

Depending upon your margin, you may have lost most if not all of your profit/equity…not a good situation, but one in which many investors fall into.

5. If you use a knowledgeable Realtor to buy the home, use the same Realtor to sell the home (why not, they know all about it from start to finish). If you stay loyal to the Realtor, guess what? They will become a “bird dog” for you and start finding YOU the deals. Now that is what I call Success!

Investor + Realtor Loyalty= Success.  There is NO fuzzy math here….Agreed?

Now go out there and do good things! Invest in Real Estate Today but do not go it alone, get the training, coaching and mentoring you need to reap the rewards this business can bring to you.

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•Thirty year fixed rate mortgage

•Fifteen year fixed rate mortgage

Best fixed rate mortgage loan can be obtained from the Unique Mortgage Group. The main goal of the unique mortgage group is to provide service to the customers with integrity, stability and honesty. This mortgage company is mainly enhanced with providing of best fixed rate mortgage to the clients with the lowest interest rates and with the minimum closing costs. The company provides a helping hand to the borrowers to overcome the milestones in the process of securing a long. The Unique Mortgage group provides best fixed rate mortgage to the customers with no hidden costs, false interest rates and improper promises. Unique Mortgage group is considered as the best company for offering loans and does not pressure for sale techniques.

Important reasons for choosing unique mortgage group is because of the lower interest rates, processing of best fixed rate mortgages in a faster manner, offers reliable service, considered as the best for customer rewards program, best fixed rate mortgage can be processed through easy online application and no hidden fees are charged on the customers. Unique mortgage group offers thirty year best fixed mortgage rates at 5.3% and is considered as the lowest rates with the other mortgage companies.

Some of the advantages offered by the best fixed rate mortgage are it offers lesser monthly payments since it is a fixed rate mortgage, the interest rate does not raise up and the monthly payment does not exceed and stays the same amount for the period of loan taken. The disadvantages in the fixed rate mortgage are payments should be made at a higher interest rates and the interest rate remains the same even if the interest rates reduces.

Best fixed rate mortgage loans are offered at the unique mortgage group for a lesser price and the lenders of this mortgage company occupy an important role in the business sector. The main goal of the unique mortgage group is to offer customer satisfaction to the highest level and offers the best fixed rate mortgage finance to the clients at a lesser interest rate when compared with the other finance companies. The easy online application helps the clients to get immediate cash to their needs and makes the form filling process easy. Monthly payments are offered at a lesser amount according to the customers earning capacity and no hidden costs are charged by the unique mortgage group. Hence the best fixed rate mortgage finance can be availed with the Unique Mortgage Group at a lesser enhanced rate.

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The most obvious risk when it comes to real estate investing is the direct risk of losing your investment. This risk can be a huge blow depending on how large your initial investment was. While I’m certainly not trying to talk you out of investing in real estate all together it is a good idea to have a realistic view of the risks and the potential rewards.

If you are flipping houses as your real estate investment, you have the possibility to loose a little more if you become injured during the course of your work. The sad truth is, many who make an effort to break into the business of flipping houses have neither adequate insurance coverage (this is true of themselves, the property in general, and others that may be working on the property), the money, nor the time that a serious injury might entail.

Another risk common to real estate investing is the fact that things happen. Market trends tumble, companies go out of business or leaving town, the local real estate market fall in a rut, accidents happen during the course of the work, natural disasters occur, and buyers change their minds and pull out at the last minute. Each of these things can have devastating consequences and are almost always events that are completely beyond your control as a real estate investor.

If that isn’t enough to ponder, many investors fail to have a proper inspection and find out when it is too late that there are serious structural problems or other serious things wrong with the property. These things cost money to mend and cut into profits, occasionally resulting in a loss. Once you find out something is wrong with the property you are honor-bound (and in some states, legally bound) to either reveal the problem to potential buyers or repair the problems before selling the house. In the case of a flip, many major problems will undo the work that has already been done. If this doesn’t remind you of the importance of a thorough inspection, nothing will. Property inspections are important for numerous reasons and can save a lot of time and money if you have one done ahead of time.

Do not let the risks of real estate investing prevent you from taking the plunge. They are spelled out here to remind you that prudence and caution are wise when investing in real estate, not to talk you out of this potentially lucrative field of investing. If you are interested in real estate investing, there is no reason you shouldn’t take the time and make the effort to know more about its huge potential. Copyright 2008 Promotions Unlimited – websitetrafficbuilders.com. All rights reserved

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A typical short sale involves negotiating with the bank to let you buy a property at a lower price than what is left owed on the mortgage to the homeowners. This allows you to pick up a property cheap, the bank to unload a mortgage that the homeowners just can’t make payments on and the homeowners to get out from under a mortgage that’s downing downhill fast.

What Happens after the Short Sale?

Sometimes you’ll find that the homeowners don’t get away from this deal as Scott-free, as they were led to believe. The bank may say okay, we’ll let you buy this mortgage or this property for say $60,000 when the homeowners still owe $100,000, but we’re also going to court later on to get a judgment against the homeowner.

This judgment against the homeowner basically says that the now former homeowner still owes the bank $40,000, which was the amount of the write-off the bank took on the sale of that property to you. That judgment will remain attached to the homeowner for 2 years and can really mess up their ability to get into a new home. It can also attach to another house that the homeowner buys after selling you the property. So the homeowner automatically gets a $40,000 debt tacked onto their other mortgage.

The bank can also decide not get a deficiency judgment against the homeowner for the write-off on that defaulted property. While you are negotiating with the bank for that property you can also negotiate with them to not get that mortgage judgment against the homeowner. When the bank doesn’t get a judgment, it is required to send out a 1099 form to the homeowner. This 1099 form shows the $40,000 write-off by the bank as income for the homeowner for that year.

What to Do about the 1099 Form?

As you can imagine, most homeowners will be terrified by this possibility. Either they get a deficiency judgment against them for the remainder of the mortgage or the IRS views that $40,000 write-off as income. Be sure to tell the homeowner, that when they get this 1099 Form they need to see their CPA or someone who is certified to do their taxes.

The CPA will be able to tell them how to work with the IRS, so that this 1099 isn’t shown as income. The homeowner may qualify for an ‘exclusion’ from the 1099 for selling their own home if they have lived in that home for the past 2 out of 5 years.

In addition, there is a Form 982 that the homeowners may be able to fill out that shows they are ‘insolvent’ and have no funds from this sale. If they qualify through this form the IRS may not require them to pay taxes on that $40,000 write-off.

Don’t blame the banks for this little predicament that can pop up and ruin the homeowner’s deal. They are required by law to get a judgment against the homeowner or to send out a 1099 form to the homeowner. Just make sure that you lee the homeowner know in advance that if they take the short sale or note purchase deal they will face one of these two possibilities.

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