“Ignore the Headlines!”

If you are looking to invest money, don’t even think about buying stocks if you do not own a home. That should be your first investment because an owner occupied home is nearly ALWAYS profitable.

When prices are falling, few people have the discipline to buy a house. But those that do take advantage of the market tend to excel in the long run.

Let’s say that you are emotionally ready to become a homeowner. You have good credit and plan to stay in your house for five years and have been waiting for the right time to buy. Now is the time before the interest rates start to rise!

Check this out…

Buy a house TODAY for $218,900. Put 20% down and get a 30 year fixed rate mortgage at 5.5%. Monthly payment will be $994.31.

Wait 12 months. Price drops 10% to $197,010. Mortgage rates are now at 6% because recession is ending. Monthly payment will be $994.94.

You save NOTHING by waiting a year and you’ve been throwing away your rent money every month!

If you already own a home and it appears you will be trapped for a few years, try to refinance at today’s lower rates.

Real Estate is Boom in Charlotte, NC

All you hear about these days is the real estate crisis which has hit the nation. So many areas are devastated because of the amount of foreclosures. Lenders are going out of business faster than you can blink. The average home values are falling. Sales prices are declining. It has become almost impossible to finance any type of real estate. This is not true in Charlotte, North Carolina.

Charlotte real estate is seeing almost a 6 ½ % increase in home values each year. This has been a slow and steady increase. It does not look like it is going to change any time soon. This steady increase, in stead of a fast market growth has allowed the Charlotte real estate market to grow quietly and steadily for many years.

With over 1 million people living in this city now, and 80,000 new residents each year, the housing market is growing. The average age for the new comers is the 25 to 34 range. This is the perfect group of people for business. Charlotte has business. They are the second largest city, next to New York for banking.

While the average home cost in America has fallen to roughly $187,000, the average home in Charlotte is on the rise. It is now estimated at around $225,000. So what will a quarter of a million dollars buy you in Charlotte? Room. Many of the homes available have over 5,000 square feet. Just to let you know, the homes are appreciating at almost twice the national average. This means Charlotte real estate is the perfect investment for anyone.

In January of 2008 homes in the Charlotte real estate market sold in an average of 78 days. This is a very short time frame. The time frame seems even shorter when you take a look at some of the national averages. The other great news is that 96.52% of these homes sold for the asking price. Ninety six out of every one hundred homes sold for the list price. In the wake of so much bad news about real estate markets around the country, these figures are fantastic.

More and more people are realizing their retirement dreams in Charlotte. Real estate is being bought by many seniors who changed their minds about Florida. It is reported that North Carolina is becoming the number one retirement state in the nation right now. The weather is perfect. The economy is booming. You have mountains on one side and the ocean on the other. There are so many things to do it is no wonder people are moving in and snatching up the Charlotte real estate so fast.

The economy is stable. The growth rate is steady but fast. There is no want for jobs in Charlotte. Real estate is being sold left and right to people who are advancing their careers when they move to Charlotte. Real estate agents are having to move quickly in order to house the population influx. Things could not be better. It is a breathe of fresh air to see how good the Charlotte real estate market is. It does not look like it is going to change any time soon.

By Ken Lutz

Top 3 Bailout Strategies for Real Estate Investors

Real estate investors and vacation home buyers represented 35-40% of all residential property purchases in the years before the market downturn. Yet, many of these same investors are now experiencing serious negative equity and cash flow issues, and they are wondering if and when they will start seeing some relief. “Although the economic stimulus and housing rescue plans have not been specifically targeted at investors, there are three strategies that can be built around all these new laws that benefit real estate investors,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

Strategy #1 – Reverse Mortgage for Purchase Transactions

“Until the end of 2009, an investor who is age 62 or older can purchase a 1-4 unit property worth up to $625,500 with a 30% – 35% down payment, live in one of the units, generate income by renting out the other units, and never have to make a mortgage payment for the rest of their entire life,” Nicholas said. “This opens up a lot of options for seniors and investors who are wondering how to supplement their retirement income now that their house values and retirement accounts have taken such a huge hit.”

The reverse mortgage for home purchase transactions became available on January 1, 2009, and the higher loan limit of $625,500 became available a few months ago as part of the 2009 economic stimulus plan. Investors who are trying to sell their duplexes, triplexes, or four-unit properties can utilize this strategy in their marketing as a way of stimulating potential buyers. “This strategy has been lost in all the noise of the last few months and very few people are aware that it can be done,” Nicholas said. “The $625,500 higher loan limit really opens up a lot of options, but it expires at the end of the year so you need to take action now.”

Strategy #2 – First Time Home Buyer Tax Credit

“The $8,000 first time home buyer tax credit can also be utilized on 1-4 family properties,” Nicholas said. “The greatest thing is that not all buyers need to be first time home buyers. This means that an individual who qualifies for the credit can get their parents to co-sign on the loan and/or contribute to the down payment, and this would not disqualify the individual from taking the credit. A group of friends, relatives or investors could get together and buy a duplex, triplex, or four-unit property, and the credit can be claimed by any one or more of the investors as long as the individual(s) claiming the credit live in one of the units as their primary home for at least three years. They could claim the credit even though they are generating income by renting out one or more of the other units.”

The maximum FHA loan-limit on four-unit properties ranges from $521,250 in low cost housing markets up to $1,403,400 in the highest cost markets of the country. An investor who is trying to sell their 1-4 family unit property can also utilize this strategy to stimulate potential buyers. “This strategy just became a whole lot easier now that the FHA is allowing the credit to be utilized as part of the buyer’s down payment,” Nicholas said. “As of May 29, buyers are now allowed to borrow against the credit or sell it to their lender or another 3rd party as way of helping with their down payment.”

Strategy #3 – Rent-to-Own or Sale-Leaseback Opportunities

“There are a large number of distressed home owners who will not qualify for the mortgage modification plans announced by the government,” Nicholas said. “These home owners still need a place to live, and many will not be able to qualify for conventional or government mortgage financing for at least another 3-5 years.”

A rent-to-own strategy is where an investor or Realtor takes a potential home buyer house shopping even though the buyer can’t qualify for traditional financing. The investor buys the house, rents it to the tenant who picked out the house and wants to live there, and gives the tenant the right to buy the home at a pre-determined price at some point in the future. A sale-leaseback strategy is where a home owner sells their current property to an investor and then pays the investor rent, with the option to buy back the home at a pre-determined price at some point in the future.

“While most real estate investors are scrambling to find tenants for their vacant properties, savvy investors could utilize either a rent-to-own or a sale-leaseback strategy to find tenants before they commit their investment dollars to a specific property,” Nicholas said. “This is a fantastic opportunity for investors to work with the large population of people who won’t qualify for the government foreclosure prevention plans.”

Even so, there are a few potential landmines to avoid. “If the tenant defaults on their rent or walks away from the deal, the investor could be left holding the bag,” Nicholas said. “Also, if the investor defaults on the mortgage and goes into foreclosure, the tenant may be evicted by the new owner,” said Nicholas. The new federal housing law provides two minimum guidelines that protect tenants in these and other situations:

Tenants are now allowed to occupy the property until the end of their lease term (even after the landlord goes through foreclosure) as long as the new buyer does not intend to occupy the new home as their own primary residence.

If the new buyer intends to occupy the home as their own primary residence, the tenant must be given a 90 day notice before being forced to leave.

It is more important than ever before for investors, home owners and buyers to work with a Certified Mortgage Planning Specialist, especially with all the rapid changes that are constantly taking place in the mortgage and housing markets.

Top 5 Places to Find a Great Bargain on a House!! – A MUST READ!!!

More press hits the market and it just goes to show you that Charlotte is by far one of the best places to live and BUY!!

If you are looking for a great deal in a place where you can raise your family or just start your life!! Charlotte is Fun, and full of excitement that will keep you asking for more.

Check out the statistics below. It goes to show you that Carolina Buyers Market is your place to find great deals on Real Estate.

#1 – Salt Lake City, Utah. Builders simply built too many houses!

#2 – Raleigh, North Carolina. Again, builders built ahead of the growing spurt. The economy is picking up so take advantage of the deals while they are available!

#3 – Orlando, Florida. It’s a great time to take advantage of the “buyers market” in Florida. Orlando has so many houses on the market that you can pick and choose and deal to your hearts content.

#4 – Charlotte, North Carolina. The financial industry continues to move to Charlotte. This is adding jobs to the area but not quick enough to keep up with the unsold homes.

#5 – Phoenix, Arizona. This city has a high foreclosure rate.

Source; Matt Woolsey from Forbes February 2008