Investing in Real Estate for $10,000 or less

Have you been thinking about Investing? What has been holding you back? Money? Know how?



Most people just don't realize that they can start investing in real estate for very little money and don't even have to get a loan to do it! You can realistically start investing real estate for $10,000 or less. You have to be willing to get a little dirty and use some elbow grease, but you can do it.



Did you know that you can use your old retirement accounts from that company you dont work for anymore? Well its true. Think about it, do you want to leave your hard earned money sitting in another companies retirment account where they control your money!You have already made the decision that they are not a good enough company to work for and yet you are leaving your retirement in there hands? Where is the logic in that thinking?



Why do I say you can invest in real estate for $10,000 or less? Why not 20k, or 30k? Well the truth is you can put as big a price tag on it as you want but you have to start somewhere. That is why I am posting this today, maybe it will get you jump started into real estate investing, maybe it won't, but maybe it at least got you thinking about the future and the future is now. If you don't start planning for your retirement in a serious manner, it will sneak up on you and you won't be ready. If retirement has snuck up on you then guess what? You can still retire with dignity you just have to make the decision that you want to and get started now.



If you have any questions please contact me and I would love to talk to you about in depth. We can set up a meeting in person at my office or just discuss it over the phone.



Wayne Trammell

Realtor

Real Living Advanced Realty

http://www.waynetrammell.com/

waynetrammell@bellsouth.net

205-901-0192

Second Homes

Hello, I wanted to talk about Second homes today. I know you might be thinking that talking about second homes in an economy like this is crazy. But it is actually the opposite, now is the time to be talking about it. Prices are low, there are a ton of vacation homes to look at, rates are at historic lows and this all means great deals for you, the buyer.

SO, if you have been thinking about owning that perfect getaway and if now is a good time too buy? Yes, it is and here are some points to ponder before purchasing:

1. Where do you like to vacation to the most?

2. How often can you realistically go to this home?(not just full vacations, but weekend getaways too)

3. Will this be a private getaway or will you share it with family and friends or even rent it out?

4. What do you want to do on Vacation?

5. How much room do you need?

6. How much can you realistically afford?

7. Do I have enough for a down payment?

If you have any questions please feel free to contact me and I will be glad to assist you.

Wayne Trammell
Realtor
Real Living Realty
http://www.waynetrammell.com/
waynetrammell@bellsouth.net
205-901-0192

Short Sales

I decided to post this entry about short sales because the more that I talk with clients the more I realize that people don't understand what the term "Short Sale" means or what a "Short Sale" accomplishes. Most people that I talk with think that a short sale is a quick sale in the aspect of time. This train of thought is incorrect. The term Short Sale means that a home owner is selling their home for less than what they owe instead of Foreclosure. In order to have a Short Sale, you must talk with the Mortgage Company first to see if you qualify for a Short Sale. You do not have to be behind on payments, however you do need to be going through a hardship (i.e. lost your job, sickness, lost primary income earner, etc). No matter what you do, do not stop making payments on your home so that you can do short sale, just because your behind does not mean that you will be automatically approved for a short sale. Short Selling is not new, it has been around for quite a few years. It may have changed names or be called different things depending on what part of the country you live in. You may be asking, "Why would a mortgage company let you sell your home for less than what you owe?" Here is the answer: A mortgage company is a business and never forget that they are about making a profit, it is how they keep their doors open and lights on. Mortgage companies (i.e. Banks) spend millions of dollars foreclosing on properties that then sit vacant being vandalized, and while all this is going on the house is losing value and deteriorating from time. Yes a vacant home deteriorates a lot faster than a lived in home. So it is imperative that the bank sells the home as fast as possible and for as much as possible. So lets throw out a hypothetical situation where the bank has an option to either foreclose or do a short sale:
1. Foreclosure: You are the bank and you foreclose on a house that has a mortgage of $100,000 and is worth $120,000, this will cost you $5,000 to foreclose and clear up any other leans on the property so that you can then re-sell it. You list the home with a reputable Real Estate firm. You ask $120,000 for the home trying to recoup your expenses and the house then sits on the market for three months (because remember in today's market you are also competing with other houses that were foreclosed for cheaper amounts and can therefore be sold cheaper than what you can sell for). Three months down the road you have dropped your price from $120,000 to $99,000 and will entertain offers that are now around $90,000. So the house finally sells for $90,000 and you have about $1000 in closing costs. So lets review: You spent $5000 to foreclose, $1000 to close, $3600 to sell, and you sold for $10,000 less than what you loaned on it, plus it sat for at least five months(3 on the market, 1 getting the previous owner out and 1 under contract). You the bank has lost $19,600.
2. A Short Sale: You approve a Short Sale on the above mentioned property before foreclosure proceedings begin. It stays on the market while you still get some form of payment from the homeowner and the house is still occupied and being cared for. Your market for potential buyers is up because a lot of buyers will not look at foreclosures. After several months, you receive and accept an offer of $95,000. Lets see now what you have got: After closing you still have the $5000 that you didn't spend on Foreclosing, You sold for $5000 more than you did as a foreclosure so you have automatically made more money and probably sold the house more quickly, and all the while you still had a tenant who was making some type of payment to you while they were there.
In closing, the term "Short Sale" refers more to the fact that the bank is selling for a smaller amount than the mortgage they hold on the property. It has absolutely nothing to do with the amount of time it would take to purchase, or that the purchase transaction will be a quick one. In fact, the process usually takes quite a bit longer, and you should know as a buyer that you will need to go into the process expecting it to take several months to get to the closing table. In the end, however, everyone can come out with a great deal.
I hope that this helps any of you that may have had questions about a Short Sale or were just wondering what the term meant. Thanks for reading my blog and remember to checkout my website for more great information http://www.waynetrammell.com/

Meeting the Public

This Thursday I will be holding a Question and Answer session from 5:30 to 6:30p.m. at my office in Gardendale (1030 Main Street). Please feel free to come by and ask questions. I look forward to helping with your Real Estate endeavors and welcome the chance to answer any and all questions concerning today's Real Estate Market. You can contact me through my website http://www.waynetrammell.com/ , use the contact button and send me an email. Also remember the only dumb questions are the ones you don't ask. Thanks for reading my blog.

Foreclosures-To buy or not to buy

Alot of people believe that when they see the word foreclosed on a for sale sign or in an ad for real estate that it is automatically a great deal and that it is deeply discounted. The truth of the matter is that the banks (fannie mae, freddie mac etc.), are listing these homes to recoup there cost on the money they loaned, lawyer fees, foreclosure fees, realtor fees and holding costs for how long it will sit on the market. On the other hand some people see the foreclosure market as nothing but dilapidated old houses that aren't worth the time to look at. The truth is that with the correct amount of knowledge a foreclosure can be a great investment or home for the right person.



You must understand what it is that you are buying when you purchase a foreclosure. You need to know if your state has "right of redemption laws", you need to know who has these rights. You need to be comfortable with the condition of the property, whether you hire a licensed professional(Recommended) or you have someone you trust with a good working knowledge of all the systems in a home inspect it. Finally, be sure that you are purchasing a home that will meet your needs and fit into your budget so that your home purchase doesn't become a "great deal" for someone else down the road.