The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date.
Overall Dollar Budget
To establish a budget for purchasing a home, you should speak with a mortgage professional prior to looking for property. In terms of your budget, keep in mind that parking is usually not included in the purchase price that is quoted by the developer. In addition, in today's market the list price of the unit is typically not negotiable.
The best way to establish a budget is to determine how much money you will need as a down payment and how much money you will need as a down payment and how much you feel comfortable spending, based on your gross income, for monthly payments. Remember that the real estate taxes are generally included in your monthly mortgage payment and should be calculated at a minimum of 2% of the purchase price.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Saturday, December 9, 2006
Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth
In investment real estate the quickest way to wealth is through owner financing, or lease optioning. So, let's take a look at one model transaction, involving the purchase and sale of two properties on lease-option contracts so you an apply it to your own investment real estate system.
Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You've created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less.
Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can't sell the house in 13 months (this certainly won't be a problem, though), you'll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won't lose anything or have to get your own financing, when you have to pay off your second home in 13 months.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You've created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less.
Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can't sell the house in 13 months (this certainly won't be a problem, though), you'll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won't lose anything or have to get your own financing, when you have to pay off your second home in 13 months.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Apartments make for good property investments
Apartments in South Africa make an ideal property investment for South Africans living abroad, says Scott Picken, MD of International Property Solutions.
"Apartments are ideal in many ways for South Africans living overseas to get on the property ladder back home. For one, they are generally a lot cheaper than houses or townhouses, because the land cost is divided up by more properties. So from a price perspective, they are a lot more affordable, which is a major plus if you're living abroad and still travelling a lot, because you don't want a large mortgage that is going to chain you to your job until your visa runs out."
"They are also ideal because there is a lot less admin involved in owning and maintaining an apartment, compared to a house. A lot of tenants couldn't be bothered with maintaining a garden, for example. They live in your house for a year or two, and when they move out the garden is in a complete state - which makes getting the next tenant that much more difficult. The hassle of co-ordinating a garden service is not an issue with apartments, sometimes even if you're on the ground floor and have your own private garden, as the body corporate will take care of it for you. External areas like the walls and roofs, as well as communal areas like the swimming pool and clubhouse, are also maintained by the body corporate, which reduces the hassle, especially for buyers that live overseas."
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
"Apartments are ideal in many ways for South Africans living overseas to get on the property ladder back home. For one, they are generally a lot cheaper than houses or townhouses, because the land cost is divided up by more properties. So from a price perspective, they are a lot more affordable, which is a major plus if you're living abroad and still travelling a lot, because you don't want a large mortgage that is going to chain you to your job until your visa runs out."
"They are also ideal because there is a lot less admin involved in owning and maintaining an apartment, compared to a house. A lot of tenants couldn't be bothered with maintaining a garden, for example. They live in your house for a year or two, and when they move out the garden is in a complete state - which makes getting the next tenant that much more difficult. The hassle of co-ordinating a garden service is not an issue with apartments, sometimes even if you're on the ground floor and have your own private garden, as the body corporate will take care of it for you. External areas like the walls and roofs, as well as communal areas like the swimming pool and clubhouse, are also maintained by the body corporate, which reduces the hassle, especially for buyers that live overseas."
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Saturday, December 2, 2006
5 Factors of Selling a Home
There are five major factors to consider when selling a home. These factors will greatly influence not only the final price you will get for the property, but also how quickly it will sell and how much grief you will suffer through the sale.
Location
Over history it's been said the three things to look for in buying a property are (1) Location, (2) Location, and (3) Location. There are positive and negative factors to almost every location. Let's pretend your property is right next door to a fire station. You need the kind of marketing professional that can sell the benefits of not having to worry about your new home burning down, or perhaps the savings on fire insurance. Seriously, no matter where your property may be located, there is a ready, willing, and able buyer in the marketplace. The "problems" with the location of a property can be overcome, you just need a Realtor who will work hard to do so.
Your Realtor and his/her Company
Not all Realtors are the same. We each take different approaches to the marketing of your home. These range from as basic as placing the home on the MLS system and hoping it will sell, to Realtors who actively market the home through newspaper advertising and the Internet.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Location
Over history it's been said the three things to look for in buying a property are (1) Location, (2) Location, and (3) Location. There are positive and negative factors to almost every location. Let's pretend your property is right next door to a fire station. You need the kind of marketing professional that can sell the benefits of not having to worry about your new home burning down, or perhaps the savings on fire insurance. Seriously, no matter where your property may be located, there is a ready, willing, and able buyer in the marketplace. The "problems" with the location of a property can be overcome, you just need a Realtor who will work hard to do so.
Your Realtor and his/her Company
Not all Realtors are the same. We each take different approaches to the marketing of your home. These range from as basic as placing the home on the MLS system and hoping it will sell, to Realtors who actively market the home through newspaper advertising and the Internet.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Florida Investment Real Estate and What Are Considerations Before Buying
Investment Real Estate, First Things First
Considering investing in property? What are some pertinent things to consider before taking this leap? Of all the investment possibilities, investment in land generally produces the most positive results. It is vital, however, to carefully investigate the pros and cons, benefits and deficits of real estate investment. Most people look at investment real estate as risky and feel woefully inadequate to tackle this form of investing. They feel lost, not knowing where to even begin!
A multitude of information is available and knowing how to search can seem daunting. A web site search will produce boatloads of information, some valuable and some not. Some key words to search are real estate investment, investment property, and investing in real estate. This will begin the process for you. Not all available information is worth your time, however. Beware when the site promises high return for little down. Also beware of sites whose main goal is to solicit your money. Web searching is one form of research. Another is talking to a reputable real estate broker or real estate lawyer. One of the best sources of information is a friend you trust who has done real estate investing. A trustworthy friend who started as a novice and progressed to real investing is probably your best source of reliable information. Their voice of experience rings the loudest since they are a layman like you who had to discover for themselves each step of the way how to make successful investments.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Considering investing in property? What are some pertinent things to consider before taking this leap? Of all the investment possibilities, investment in land generally produces the most positive results. It is vital, however, to carefully investigate the pros and cons, benefits and deficits of real estate investment. Most people look at investment real estate as risky and feel woefully inadequate to tackle this form of investing. They feel lost, not knowing where to even begin!
A multitude of information is available and knowing how to search can seem daunting. A web site search will produce boatloads of information, some valuable and some not. Some key words to search are real estate investment, investment property, and investing in real estate. This will begin the process for you. Not all available information is worth your time, however. Beware when the site promises high return for little down. Also beware of sites whose main goal is to solicit your money. Web searching is one form of research. Another is talking to a reputable real estate broker or real estate lawyer. One of the best sources of information is a friend you trust who has done real estate investing. A trustworthy friend who started as a novice and progressed to real investing is probably your best source of reliable information. Their voice of experience rings the loudest since they are a layman like you who had to discover for themselves each step of the way how to make successful investments.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Friday, December 1, 2006
Buying Country Acreage and Rural Properties, To Buy or Not To Buy
Almost anyone can become a rural property owner; if you are willing to set goals, establish what your purposes are, plan ahead and set targets that are all aligned toward the same result. And, if you can be patient instead of requiring instant gratification.
There is no more $50-an-acre land; unless you count some of the inaccessible and unusable properties that are sometimes available in blocks of 10,000 acres or more; and even these properties are rare. But you can get rural properties more reasonably now than in the past IF you are willing to be creative in your expectations and in the ways you use and modify the property.
If you are in a big hurry to find rural property, you will likely not be able to find what you are looking for. Rural properties have fewer buyers who want to purchase them, but there are plenty of dreamers who have not considered the realities. There are seldom bargains available because most folks who own rural properties know exactly who to call first when they want to sell. If the property really is a bargain it is gone with one of the first ten phone calls the seller makes. However, if you are willing to "think outside the box" of convention you may end up with what is a bargain property for you.
Twenty and thirty years ago thousands of folks bought into the "live on a farm and make a fortune" dream of owning a chicken house, home and acreage in Sussex County Delaware -- the chicken capital of the world -- where there are several million chickens for every person who lives here. For a short while it was possible to take the "contract" from a chicken plant to the bank and with only that as collateral, get a loan for about 10 acres, a home and at least one chicken house. Many folks soon discovered that the so called contract had fine print and clauses that were all in favor of the chicken plant and none in favor of the chicken grower. Soon most chicken growers were working full time to help support the chicken business they had bought, along with it's mortgage of $200,000 or more, sometimes much more.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
There is no more $50-an-acre land; unless you count some of the inaccessible and unusable properties that are sometimes available in blocks of 10,000 acres or more; and even these properties are rare. But you can get rural properties more reasonably now than in the past IF you are willing to be creative in your expectations and in the ways you use and modify the property.
If you are in a big hurry to find rural property, you will likely not be able to find what you are looking for. Rural properties have fewer buyers who want to purchase them, but there are plenty of dreamers who have not considered the realities. There are seldom bargains available because most folks who own rural properties know exactly who to call first when they want to sell. If the property really is a bargain it is gone with one of the first ten phone calls the seller makes. However, if you are willing to "think outside the box" of convention you may end up with what is a bargain property for you.
Twenty and thirty years ago thousands of folks bought into the "live on a farm and make a fortune" dream of owning a chicken house, home and acreage in Sussex County Delaware -- the chicken capital of the world -- where there are several million chickens for every person who lives here. For a short while it was possible to take the "contract" from a chicken plant to the bank and with only that as collateral, get a loan for about 10 acres, a home and at least one chicken house. Many folks soon discovered that the so called contract had fine print and clauses that were all in favor of the chicken plant and none in favor of the chicken grower. Soon most chicken growers were working full time to help support the chicken business they had bought, along with it's mortgage of $200,000 or more, sometimes much more.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
10 Home Purchase Abroad Tips For Success
Are you seeking your little corner of sun drenched heaven on earth? If you are you're certainly not alone!
Many Northern Europeans, Americans and Canadians are looking overseas for investment real estate or for a holiday bolt hole and if you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 home purchase abroad tips for success should set you off in the right direction.
1) Legal Advice
Legal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way! To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it's essential to seek independent legal representation in the country you're considering buying property in.
This is especially true if you're buying property in a country where you do not speak the language. You will be putting your name, signature and bond to contracts and legally binding documents…and however pleasant and helpful the real estate agent or vendor are it's in your own best interests to make sure you have a local lawyer who's in your pay representing you at such times.
2) Build Times
If you buy off plan or you're self-building or renovating abroad you need to factor contingency into your overall time planning. Weather, seasonal pressures, holidays, availability of essential building materials - the list of factors that can adversely affect the build time of a house is almost endless! Your builder may confidently assure you that your property will be completed by a given date, and yet, depending on where in the world you're buying your property, the completion date is likely to always be delayed! It's just 'one of those things'.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Many Northern Europeans, Americans and Canadians are looking overseas for investment real estate or for a holiday bolt hole and if you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 home purchase abroad tips for success should set you off in the right direction.
1) Legal Advice
Legal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way! To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it's essential to seek independent legal representation in the country you're considering buying property in.
This is especially true if you're buying property in a country where you do not speak the language. You will be putting your name, signature and bond to contracts and legally binding documents…and however pleasant and helpful the real estate agent or vendor are it's in your own best interests to make sure you have a local lawyer who's in your pay representing you at such times.
2) Build Times
If you buy off plan or you're self-building or renovating abroad you need to factor contingency into your overall time planning. Weather, seasonal pressures, holidays, availability of essential building materials - the list of factors that can adversely affect the build time of a house is almost endless! Your builder may confidently assure you that your property will be completed by a given date, and yet, depending on where in the world you're buying your property, the completion date is likely to always be delayed! It's just 'one of those things'.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Mortgage Broker Training: How to Secure Loyalty From Realtors
So you've just returned to your office after delivering an Oscar worthy presentation to a real estate agent. They're impressed and ready to do business with you. In fact, they promised to refer their next buyer to you. Good job, now you can kick your feet up on your desk and wait and wait and wait….
Does this sound familiar? Have you had agents promise you deals that never appear? So what happens after the first meeting? Why do Agents have such short -lived memories of promises they've made to you? Has it reached the boiling point - the point of giving up on Agents altogether? If so, keep reading because you'll find the mistake you've been making that by correcting it could dramatically turn things around.
Practice Like a Trial Attorney
If you consider it for a moment, trial attorneys are one of the great persuaders among professions. They spend their careers in courtrooms convincing juries if someone should be deemed guilty or not. So why not take a few cues from them and adapt as part of your strategy for building loyalty with agents.
Like an attorney's opening argument expresses his point of view, in your first meeting with an Agent, you share compelling reasons for doing business together.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Does this sound familiar? Have you had agents promise you deals that never appear? So what happens after the first meeting? Why do Agents have such short -lived memories of promises they've made to you? Has it reached the boiling point - the point of giving up on Agents altogether? If so, keep reading because you'll find the mistake you've been making that by correcting it could dramatically turn things around.
Practice Like a Trial Attorney
If you consider it for a moment, trial attorneys are one of the great persuaders among professions. They spend their careers in courtrooms convincing juries if someone should be deemed guilty or not. So why not take a few cues from them and adapt as part of your strategy for building loyalty with agents.
Like an attorney's opening argument expresses his point of view, in your first meeting with an Agent, you share compelling reasons for doing business together.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
High Profit Real Estate Investing--Make a Good Deal Every Time!
Knowing what a Good Deal is - Is the Key to Success in Real Estate.
Dear Investor,
Take this little survey: The most important key to Real Estate Success is:
1. Finding Motivated Sellers
2. Funding Your Deals
3. Negotiating
4. Knowing a Good Deal when you see one.
Yes all of them are important. And if you answered #4 - you're right on the money. Why, because if your deal is a not good one, all your other skills and marketing and power will not make you money, and may even lead to disaster.
On the other hand, if you can unfailingly target good deals, you will always be successful and all the other skills and your marketing methods will serve to increase your success.
What is a Good Deal?
It's a lot easier to state the question than give the answer. Why? Because it depends on many factors like:
- Market value and purchase price
- Expenses, carrying costs, repairs
- Cashflow and profit
- Holding time
- Loan terms
- Risk factors
- And more . . .
And most importantly, it depends on the type of deal you're doing. For example, if you have a loan on a property that you intend to rent or sell on a lease option, the terms of the mortgage, future tax increases, and current area rents are critical to consider in insuring a positive cashflow. However, if you are planning to do a short rehab job, and sell or just flip to another investor, rental income is irrelevant as are future tax increases.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Dear Investor,
Take this little survey: The most important key to Real Estate Success is:
1. Finding Motivated Sellers
2. Funding Your Deals
3. Negotiating
4. Knowing a Good Deal when you see one.
Yes all of them are important. And if you answered #4 - you're right on the money. Why, because if your deal is a not good one, all your other skills and marketing and power will not make you money, and may even lead to disaster.
On the other hand, if you can unfailingly target good deals, you will always be successful and all the other skills and your marketing methods will serve to increase your success.
What is a Good Deal?
It's a lot easier to state the question than give the answer. Why? Because it depends on many factors like:
- Market value and purchase price
- Expenses, carrying costs, repairs
- Cashflow and profit
- Holding time
- Loan terms
- Risk factors
- And more . . .
And most importantly, it depends on the type of deal you're doing. For example, if you have a loan on a property that you intend to rent or sell on a lease option, the terms of the mortgage, future tax increases, and current area rents are critical to consider in insuring a positive cashflow. However, if you are planning to do a short rehab job, and sell or just flip to another investor, rental income is irrelevant as are future tax increases.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
How to Buy a Home When Your in Your Twenties
Single's Game of Real Estate(Getting started in your twenties)
Due to the fact that most of us grow up in either a rented apartment or our parent's single family home, it stands to reason that most people, when beginning to ask themselves the question of purchasing their own dwelling, will come to the conclusion that a condo or small house is probably the way to go. That's a result of conditioning and it's a hard mindset to break! After taking the time to talk to or personally guide a respectable number of people in their twenties, I have come to find that firm, direct and accurate information can really adjust the reality of how real estate can be acquired and used to their best advantage starting with property that sets the tone for a much more profitable and rewarding future.
Everyone understands the concept of paying rent, so to begin with a great opening question to our real estate student is, "How would you like to collect that rent as opposed to pay it!" Naturally this question gets their attention and we can begin to open the door of enlightenment. I like to use the duplex example to illustrate the two homes under one roof concept. Some people are unfamiliar with what exactly a duplex is and how it works, so I simply state that quite often you find duplexes composed of one building that has two bedrooms and one bath on each side, all under one roof, some larger, some smaller.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Due to the fact that most of us grow up in either a rented apartment or our parent's single family home, it stands to reason that most people, when beginning to ask themselves the question of purchasing their own dwelling, will come to the conclusion that a condo or small house is probably the way to go. That's a result of conditioning and it's a hard mindset to break! After taking the time to talk to or personally guide a respectable number of people in their twenties, I have come to find that firm, direct and accurate information can really adjust the reality of how real estate can be acquired and used to their best advantage starting with property that sets the tone for a much more profitable and rewarding future.
Everyone understands the concept of paying rent, so to begin with a great opening question to our real estate student is, "How would you like to collect that rent as opposed to pay it!" Naturally this question gets their attention and we can begin to open the door of enlightenment. I like to use the duplex example to illustrate the two homes under one roof concept. Some people are unfamiliar with what exactly a duplex is and how it works, so I simply state that quite often you find duplexes composed of one building that has two bedrooms and one bath on each side, all under one roof, some larger, some smaller.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Real Estate Options: The Best Kept Money Making Secret
Real estate investing is currently a very hot topic because of the increasing property values and the number of investors who are looking for a safer alternative to the stock market.
In the last 10 years, stock investors lost trillions of dollars in the stock market, so they are still understandably skittish about returning to the market.
Most beginner real estate investors often start in real estate investing by a rental property using the traditional method. That is, they put down 5% to 10% and then borrow the balance from the bank. While this works, it requires more capital than most investors can initially raise, but more importantly, it creates unnecessary risks.
A better and lower-risk way is to use a real estate option, which is arguably the best kept money making secret in the industry. Having talked to thousands of investors, I have found that probably less than 10% understand how to use this very powerful technique. However, savvy investors such as Donald Trump use real estate options in almost all of his deals.
A real estate option can be used for multiple reasons (estate planning, speculation, etc.), but this article will focus on using a real estate option to quickly generate cash.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
In the last 10 years, stock investors lost trillions of dollars in the stock market, so they are still understandably skittish about returning to the market.
Most beginner real estate investors often start in real estate investing by a rental property using the traditional method. That is, they put down 5% to 10% and then borrow the balance from the bank. While this works, it requires more capital than most investors can initially raise, but more importantly, it creates unnecessary risks.
A better and lower-risk way is to use a real estate option, which is arguably the best kept money making secret in the industry. Having talked to thousands of investors, I have found that probably less than 10% understand how to use this very powerful technique. However, savvy investors such as Donald Trump use real estate options in almost all of his deals.
A real estate option can be used for multiple reasons (estate planning, speculation, etc.), but this article will focus on using a real estate option to quickly generate cash.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Investing in Real Estate Like a Stock
A REAL ESTATE STOCK PLAN
Getting out of the bleachers and into the game!
This report is going to explain or attempt to give the stock market investors a basic one-on-one interview with a real estate portfolio manager who has consistently made a profit on 100% of the investment products that were actively chosen and managed. Never a loss, always tax advantaged and sheltered.
This report will not contain any high-tech, gobbly-gook, stock market charts, graphs, trends, analyst picks, projections, company reports or insider tips. In real estate, you personally have the power to develop and create all of those things yourself and I for the life of me could never trust other people's second hand opinions or publicly disseminated information to get the jump on the herd.
Now if I were a company officer, or majority voting shareowner, or a paid agent of those individuals, I might think differently, for the simple fact that I am getting the jump and I can make some dinero if I know something the majority does not. Overall, people are told to build companies so they can sell it to the public through offering pieces of their company to the public in the form of stock. So I know from the very beginning that the owners of companies are selling me a piece of paper which they say is worth a certain amount of whatever value a dollar is worth at that time.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Getting out of the bleachers and into the game!
This report is going to explain or attempt to give the stock market investors a basic one-on-one interview with a real estate portfolio manager who has consistently made a profit on 100% of the investment products that were actively chosen and managed. Never a loss, always tax advantaged and sheltered.
This report will not contain any high-tech, gobbly-gook, stock market charts, graphs, trends, analyst picks, projections, company reports or insider tips. In real estate, you personally have the power to develop and create all of those things yourself and I for the life of me could never trust other people's second hand opinions or publicly disseminated information to get the jump on the herd.
Now if I were a company officer, or majority voting shareowner, or a paid agent of those individuals, I might think differently, for the simple fact that I am getting the jump and I can make some dinero if I know something the majority does not. Overall, people are told to build companies so they can sell it to the public through offering pieces of their company to the public in the form of stock. So I know from the very beginning that the owners of companies are selling me a piece of paper which they say is worth a certain amount of whatever value a dollar is worth at that time.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Title Insurance Protects Your Financial Investment
You purchase homeowners insurance to protect yourself financially in case something happens to your property or its contents. However homeowners insurance won't protect your financial interests if a matter arises regarding past ownership of your property. That is where title insurance comes in.
Only the title to the land and not the land itself can be purchased. So, unless a homeowner possesses a clear title, he or she risks losing his/her home and the land under it. Title insurance guarantees the title as reported.
Actually there are two types of title insurance: lender policy and the owner's title insurance. Most lenders require a loan policy when they issue you a loan to protect their interest (the amount they loaned you) should a problem arise. The policy amount decreases each year and eventually disappears once the loan is paid off. Therefore the owner should also have title insurance to protect his/her financial interest. Only owner's title insurance fully protects the buyer. Should hidden defects surface at any time challenging an owner's rights, the title company will defend the title, in court, if necessary, and cover the owner's losses up to the full value of the policy.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
Only the title to the land and not the land itself can be purchased. So, unless a homeowner possesses a clear title, he or she risks losing his/her home and the land under it. Title insurance guarantees the title as reported.
Actually there are two types of title insurance: lender policy and the owner's title insurance. Most lenders require a loan policy when they issue you a loan to protect their interest (the amount they loaned you) should a problem arise. The policy amount decreases each year and eventually disappears once the loan is paid off. Therefore the owner should also have title insurance to protect his/her financial interest. Only owner's title insurance fully protects the buyer. Should hidden defects surface at any time challenging an owner's rights, the title company will defend the title, in court, if necessary, and cover the owner's losses up to the full value of the policy.
...Read More! Article source: http://www.SparkClassifieds.com/Articles.
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