Bryan Ellis comments on Virtual Real Estate Investing
Landlords and rehabbers take notice - you may soon be focused on the new concepts of “Virtual Real Estate Investing“. What is meant by “Virtual Real Estate Investing” ranges from online games like SecondLife (where real profit can be made) to the use of internet technologies to make normal real estate investors more profitable.
In order to figure out the truth of the matter, I sought out Bryan Ellis of BryanEllis.com, whose experience in the fledgling industry is truly impressive.
When I began using the term virtual real estate investing in the late 1990s, I did so because I saw clear parallels between the strategies used for profiting from physical real estate and those that would create income in the online world, said Ellis.
One example of the parallels between virtual and physical real estate Bryan Ellis cites is the similarity between the monetization of domain names versus physical property. “These types of assets - websites and physical real estate - can be monetized in very similar ways like buy lo/sell high, leasing/rental and advertising opportunities” he says.
The similarities really are obvious. For example, if you’re the owner of a desirable property, its desirability is (in a business context) largely due to its being in a location that is of interest to others. Likewise, if you own a desirable domain name, others will find value in it because it serves their purposes. So it doesn’t matter if you own physical real estate or virtual real estate - you’ll likely use similar strategies to turn them into money in your pocket.
In our next installment of this series on virtual real estate investing, Bryan Ellis will share the internet analogies to the physical concept of real estate development.
Property Index: Your Recognized Universal Real Estate Information Hub
Even though PropertyIndex.com is really a recent firm, they were set up only in March of 2007, they have proven their mettle very quickly. They’re a incredibly unassuming firm specialised in offering guidance to any individual who is meaning to let property in most popular areas of the world. Their guarantee: to lend you a hand to uncover smack what’s called for fast plus, even better, unproblematically.
Real estate is being offered in many parts of the world at the moment, unquestionably the swankiest area being property available in Dubai. It’s a no brainer to tally the fantastic property available for sale in Dubai, one motivation for picking realty here being realty available for sale and the chance of living together with such a spirited people. This is one of the most favored regions of the world at the moment, and considering the lovely landscape and great sunshine that surrounds you night and day, how could you conceivably go wrong? Real estate in Dubai is very rich in history, culture and art, this area of the world is and has always been home to a fair number of cultures.
Property Index are specialists for property in Dubai, view the site to see the different properties.
Only twenty years ago there’d be just a dribble of UK citizens in search of property in Dubai. Just ask any person who has removed to Dubai and they will tell you the same thing. Plenty of people would tend to view it as a basically irrelevant rage and others tend to view it as a practically an addiction! Customers that are looking to migrate to this place range from young freshly weds who are looking for a bit of a new challenge in life to elderly people who intend to rest and enjoy themselves. Do bear in mind, however, that there might be hindrances when trying to purchase property abroad — there’ll be a million actions when working out a plan, inspecting or actually purchasing. Even if but a single minor action is missed that is sure to definitely bring about far-reaching hindrances plus, even more importantly, a financial hammering.
Naturally, as is to be counted on with this fashionable location, property may well be incredibly upscale in this destination and that’s simply a consequence of the wide spread market pressure. Regardless of this real estate buyers presently are very spoilt in terms of choice in such a location blessed by fantastic terrain. It’s certainly got the lot one could conceivably crave, and lots more.
Buying Investment Property in North Cyprus
As far as buying property and overseas investment goes, North Cyprus is one of the most celebrated places in the world. Since 2000 prices have been soaring from £2000 per donum to £30,000 per donum in 8 years (in UK terms, that’s £6000 per acre to £90,000 per acre in 8 years). And prices are expected to continue appreciating; with reunification of the island, many experts are arguing that prices could accelerate because of the respective strengths of the two parts of the island, with the already established tourist industry of the Cyprus merging with the continuing boom in Cyprus properties in North Cyprus.Before the election of Christofias to presidency in the Republic of Cyprus, the reunification issue was almost redundant; that is to say that, whilst the rest of the world hoped for some solution, the respective presidents of the two sections of the island were strongly opposed to any discussion of the issue. Tassos Papadopolous and Rauf Denktash, who both held their posts for a number of terms - including, in the case of Denktash, the début presidency for the TRNC, which he held until as late as 2005 - continually refuted any international attempts for a reconciliation of the two parties. In fact, when it came to the Annan Plan Referendum of 2004, when citizens of North Cyprus and the Republic of Cyprus were given the chance to vote either for or against a settlement on reunification, both leaders strongly urged their citizens to vote against the move. Despite that, North Cyprus citizens voted in favour of Cyprus reunification, though Republic of Cyprus citizens rejected the referendum. Because it was agreed prior to the vote that both sides would have to agree, the reunification plan was scrapped. During the talks though, it became clear that in North Cyprus there was a number of politicians who were willing to challenge Rauf Denktash, and one of the most prevalent was Mehmet Ali Talat, who was at the time prime minister, and took over from Denktash as president in 2005. He publicly urged citizens of North Cyprus to vote in favour of Cyprus reunification, so that when he took presidency the international community rejoiced. Cyprus Reunification and the Rise of Property in Cyprus It was in 2004, during the Annan Plan Referendum, that property in Cyprus saw its first price acceleration. Prices on Cyprus properties had been rising steadily for some four years up to that point, but the price rise seen around the reunification talks was notable indeed, and they sparked the rise in price now, where rekindled reunification talks between pro-unionists Mehmet Ali Talat and Dimitris Christofias are having a similar effect. The two reunification pushes of the last 10 years have established North Cyprus property as some of the best real estate in the world. Prices are still far lower than those in the south, but could rise, according to some experts, by almost 200% in two years. North Cyprus, then, is the very definition of real estate investing.
The Thriving International Real Estate Market Space — Made Easy by The Property Index
Property Index - for the best help in international properties investment.
Even though the Property Index service is only a pretty young house, (they were founded in March 2007), they were fast to prove their mettle. In point of fact a extremely down to earth house specializing in catering to every visitor designing to let real property across the globe. They avow to assist you uncover smack what you crave very swiftly and, obviously, easily. Real estate is at your fingertips everwhere today, one of the swankiest areas being property available in Dubai. It’s no big deal to write up the tremendous land available in Dubai, one motive for choosing realty here being the houses and apartments on the market and the phenomenal option of spending your life surrounded by such a bouncy population.
This is one of the truly fashionable regions today, and with the lovely landscape and agreeable climate surrounding you all year long, how could you conceivably say no! Real estate in Dubai is immersed in culture, art and history, this region has always been home to various cultures. Some 25 or 30 years ago there’d be merely a dribble of Britishers keen on land in Dubai. Ask any person who has chosen to remove to Dubai and they will tell you the same thing. Quite a few people would prefer to view it as a basically irrelevant fad and others prefer to view it as a approximating to an addiction. Shoppers that remove here extend from young couples in search of some new life perspective to pensioners looking to enjoy their retirement.
Note that you might hit on some hindrances when attempting to buy land abroad — it stands to reason that there are 100s of heterogeneous, rather complex, actions whether strategising, popping in or purchasing. If you miss out on one single minor step it is liable to create wide-ranging hindrances as well as, most importantly, financial loss. Naturally, as is to be supposed with this favored area, land may well be unbelievably upscale in this place and that’s merely caused by the high market pressure. Despite this the customer presently is spoilt in a location so richly blessed by cheery site and surroundings. It can boast the whole shebang a buyer may hanker after and more.
The Exploding Trans National Land Market Space — Simplified by The PropertyIndex.com Company
There are a range of properties in Spain for sale on Property Index, from villas to apartments.
Even if Property Index is still a rather young firm, (they were established only in March 2007), they have quickly proven their mettle. On closer look, they’re a extraordinarily simple firm dedicated to offering instruction to any individual dedicated to let, sell, rent or buy property in a wide selection of areas across the globe. Their affirmation is to lend you a hand to hit upon smack what’s looked for quick plus, of course, in a trouble-free manner. Real estate can easily be purchased in many parts of the world now, one of the swankiest areas being real property you can purchase in Spain. It’s a no brainer to list the mega cool realty available in Spain, the explanation for hunting for estate here is the houses and apartments you can purchase and the chance to live between this robust and passionate people.
It is one of the most popular regions now, and considering the lovely landscape and wonderful sunshine that surrounds you all year, how could you ever say no? Real estate in Spain is immersed in culture, art and history, this area of the world has been and still is home to quite a number of sophisticated nations. Around twenty years ago there’d be only very few of British people who are looking for realty in Spain. Just ask anyone who has chosen to remove to Spain and they’ll tell you the same thing. There are those who would will call it a transient trend and others will call it a more or less a fixation! Buyers that are willing to remove over here generally range from yuppies in search of a perspective to senior citizens looking to put their feet up.
Do bear in mind, though, that there could well be perplexities when looking to buy realty abroad — as is to be expected, there will be hundreds of disparate procedures when strategising, calling in or completing. If you miss out on just a single minor procedure this is certain to bring about sweeping perplexities not to forget, more importantly, a financial trouncing. Obviously and expectably with this favored destination, realty might be quite upscale in this location and that is absolutely because of the increasing demand. Nevertheless buyers actually are spoilt in such a location boasting such a pleasant countryside and view. It’s presently got the whole shebang a property buyer may ever require and lots more.
When Your Mortgage Loan is Rejected
Sometimes due to sheer bad luck or just having bad credit can have your application for a mortgage loan rejected. To help you out during the time when the mortgage lending company has rejected you, there are still some steps that may help you out. The Equal Credit Opportunity act is a law that requires lending companies to tell the borrower in writing why he or she has been rejected.
The letter you receive must contain the following: The exact or specific reasons why you have been denied or how to be able to get information why you have been denied. The other one is the name and address of the credit report company who provided the information.
The information given by the lending company is sometimes hard to understand. So don’t hesitate to ask. Being shy will not solve your problems, the information that they will give you may even be able to help you in improving your credit in the future.
Other reasons that could be factors in rejecting your application is not being able to meet the creditor’s minimum income requirement, not being at your job or residence for the required amount of time.
If insufficient income was the main reason why your mortgage loan was rejected or has lack of funds for closing costs and down payments, you can try other loaning programs. Try to look for loan programs that help out people with low or moderate incomes or with lower down payment requirements such as the FHA or VA loan. The FHA loan is the mortgage loan that helps out people who cannot afford down payment. This loan is an insured loan by the Federal Housing Authority f the United States. The VA loan on the other hand is for American veterans or their spouses that is loaned by the United States government.
If the appraised of amount of your property is smaller by 95% than the loan, you will be denied. If this happens try the following: to cover the difference value between the purchase price and appraised value give an additional down payment, let the lender reappraise the property if you think the appraiser undervalued it, and renegotiate to lower the loan amount and purchase price.
If you have been denied due to your credit report, immediately request that copy. It is available for request within 60 days. Read it very well to make sure it is accurate and complete. After reading the copy of your credit report and see that there are mistakes, fix and dispute them with the credit report company. You can then ask the credit report bureau to fix it and resend it. Then ask if the application can be reevaluated.
The last thing to do is try other loan companies. Different loan companies have got different standards. Just try no to apply to more than four loan agencies in the span of ix months.
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Getting A Home Loan - What You Need To Know
It’s an amazing moment - you’ve found your dream house. Now you need to get a home loan to pay for it. It takes some effort, but if you follow the steps below you can find the right home loan for you with a minimum of fuss. It may even be worth undertaking the first few steps before you even go shopping for a home.
Firstly, order your credit report from the three major credit reporting agencies in the US - TransUnion, Equifax and Experian. This is a very important part of your search for a home loan, because it is something your lender will also want to look at when determining your ability to pay off your home mortgage. The credit report gives them an idea of how punctual you are when it comes to paying your bills, and also how much you have already borrowed and still owe. A good credit report gives the lender confidence that taking a risk on you will pay off. They feel reassured that you will pay them back, and certainly will make them more comfortable with giving you a home loan.
It’s worthwhile getting your credit report long before applying for a loan, so you can check them for errors or outdated entries. This is really important, because those errors may make it almost impossible for you to get a home loan. But once you know they’re there, you can follow them up and have them removed, which will improve your chances with the lenders enormously. It may even mean that you can get a better interest rate.
Secondly, take a look at interest rates for home loans and what the general trend of those rates has been. Mortgage rates fluctuate, and having a feel for what the key economic indicators are doing can help you decide whether to apply for a home loan now, or maybe wait a little while. It will also help you to decide whether you want an adjustable (variable) rate mortgage, or whether you might be better of fixing the rate right away.
Thirdly, you need to start deciding what type of home loan is going to be best for you. Most people are going to be looking for a fairly standard loan, so I’ll focus on those. Before you start looking, you need to know the answers to these questions:
- how much money do I have as a down payment?
- how much can I afford to pay in a home loan payment each month?
- how long do I plan to stay in the house?
- is it important to me to pay the loan off early?
- will I be able to occasionally make extra payments off the principal?
- how stable is my income long term?
- is my income likely to rise over time?
All of these questions are important, because they help you to understand what you’re looking for. There’s no point looking at loans that require a 20% down payment, for example, if you only have 10%. Buying a home is a big investment, and you need to make sure you get the best deal possible on your home loan. By only looking at those loans that truly fit all elements of your circumstances, you have a much better chance of finding the right loan.
Now that you know exactly what you need from your loan, you can start checking out what all the various lenders have to offer. Most will have a loan that fits your criteria, and then you can compare the interest rates, fees and other elements of the different loans. This will take some time, and is often something that a mortgage broker can do much quicker and with less hassle than doing it yourself.
It’s very easy to get confused when comparing loans. It seems that every lender uses different names for things that are essentially the same. So do your best to compare apples with apples. It’s also possible that a lender may offer special rates or waive certain fees to tempt you in the door, but over the period of the loan you actually end up paying more. Take your time, and ask as many questions as you need to.
Once you’ve narrowed it down a little, look at some of the other elements of the home loan package. Apart from interest rates and fees, you need to look at other factors such as frequency of payments, any prepayment penalties, requirements for mortgage insurance, any penalties for paying out the loan before a certain time period has passed, and so on. These sorts of features aren’t always discussed in the basic literature about home loans, so you may need to dig a little deeper or ask questions at this stage.
Finally, once you’ve chosen the lender for your home loan, make sure you take a look at exactly which documents are required for your loan application. These usually include a fully filled in loan application and a credit report fee. Normally you have to pay any application, appraisal or credit report fees when you make your application, so make sure you have money set aside to pay those.
The good news is that most home loan applications are assessed fairly quickly nowadays, so hopefully you won’t have to wait too long before being told whether or not you’re ready to buy your dream home.
For more great articles to help you choose the right home loan, check out Home Loan Zone Central
Second Mortgage Loan Rates
Today, there are many competitors in the mortgage business, and predictably there are also so many offers for the borrowers. To woe the borrowers there are many loan programs available in the market. But what the borrower has to keep in mind is that he should never fall into these loan traps, and the important thing to note is the loan rate.
If you have bad credit, you may expect a higher interest rate. So it is better to compare offers from many lenders to secure a better rate. A better offer can be from the flexible mortgage lenders. These mortgages can include interest-only mortgage loans, balloon-payment mortgage loans, as well as mortgages for long periods and mortgages with low interest rates.
The interest payments on a mortgage depend upon many factors like the rate on which the loan is obtained, the number of years of the mortgage loan, the down payment, and the amount financed. Even a slight difference in the interest rates can save you a lot of your hard-earned money. So it is important to get the right and relevant information.
There are different sources to get this vital information. The most important among them are the mortgage websites and the local newspapers. You can check the rates with your bank; mortgage rates fluctuate frequently according to the market trends and never remain unchanged for long periods.
It is better to check for online assistance, as there are plenty of online mortgage brokers. Here, you can check your credit score and get advice on the interest rates and terms of the mortgage loan.
Second Mortgage Loans provides detailed information on Second Mortgage Loans, Second Mortgage Loans After Bankruptcy, Second Home Equity Mortgage Loans, Second Mortgage Loan Rates and more. Second Mortgage Loans is affiliated with Florida Mortgage Loan Calculators.
How To Manage Your Mortgage Payment
Normally, banks and financial consultant will advice you to pay extra money into your mortgage. With this method, it will help you cut down the huge interest amount and reduce the period over which you pay back the loan.
For example, if you borrow $200 000 over 30 years at a rate of 5%, your monthly repayments would be around $1074. Over 30 years, you would actually pay $1074 x 360 (months), which is $386 640. That’s $186 640 in interest! What you have to do is to find an extra $246 a month, and pay $1320 a month into the mortgage, you’d cut 10 years off the repayment period - the loan would be fully paid in only 20 years. Moreover, your total payments would be $316 664, saving $69 756!
The flaw in this technique is that it ignores the time value of money. Everyone knows that money is worth less now than it was when they were younger. If you take that $1074 mortgage repayment, for instance, in 30 years time, when the last payment is due, it would only be worth $437 in today’s money.
A dollar now is always better than a dollar in a year’s time, or in 10 year’s time. You cannot simply subtract the mortgage interest amount for a 20 year mortgage from the interest on a 30 year mortgage. What you need to do is calculate the Present Value of each mortgage.
First method of repayment:
The Present Value of a 30 year mortgage with repayments of $1074 at a 5% interest rate is $200 066.
Second method of repayment:
The Present Value of a 20 year mortgage with repayments of $1320 at a 5% interest rate is $200 066.
The two repayment schemes are exactly equal. The $69 756 ’saving’ in the interest rate is really just the effect of adding the extra $246 a month into the repayments - in fact, that $246 a month adds up to $59 040 over 20 years.
Let’s think this way. What if you took that $246 a month and invested it in, for example, mutual funds? If you could get a return of 10% p.a., after 20 years you would have $186 804. With inflation at 3%, that would be worth $102 597 in today’s money.
Why would the banks recommend that you pay off your mortgage quickly? Surely the longer the income stream lasts, the better? The banks love being able to prove that their recommendations will ’save you money’. But in reality, the banks do understand the time value of money. They know the true value of that extra $246 a month that you’re giving them now, not in the future. And the shorter the time you take to repay the mortgage, the lower their risk, and the sooner their money comes back to them to be loaned out again.
There are some arguments for paying your mortgage back quickly - for one thing, the quicker you pay, the quicker your equity grows. But you should understand that every dollar you give the bank now is a dollar that you can’t invest. You then miss opportunity to invest and a return 10 percent or even 15 percent!
Dr. Drew Henry maintains a number of websites about Loans, including Small Business Loan, Student Loan, andStudent Loan Consolidation