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Beginners Real Estate Investing Guide
Real Estate Investing - Ask
Questions Before Making an Investment
First Time Real Estate
Investor
Real Estate Investing - Planning
Your Investment Strategy
How to Find Real Estate
Investment Properties
Getting a Professional Home
Inspection
Large Profits From Inexpensive
Real Estate Repairs
Real Estate Investing - Costs
and Fees
Real Estate Insurance
and Risk Management
Real Estate Investment Risk
Part 1
Real Estate Investment Risk
Part 2
Getting The Best Return For
Your Investment
Creative Financing
For Real Estate Investors
Real Estate Investment Tax
Considerations
Real Estate Rental Properties
- Great Investment or Nightmare
Real Estate Foreclosures - Great
Deal or Headache
Flipping Real Estate for Profits
Slow Return On Real Estate
Investments
Negotiating for the Best Possible Real Estate
Deals
Real Estate - A Time to Buy and a Time
to Sell
Creating Your Real Estate
Investment Strategy
Investing and Growing
Your Real Estate Portfolio
Commercial Real Estate
Investing
Real Estate Marketing
Understanding Real Estate Law
Do You Need An Real Estate Agent?
What The Real Estate Mortgage
Lender Sees
Do You Have A Career In Real
Estate?
Rural or Urban Real Estate
Investments?
Real Estate Investing on the
Internet
Real Estate Investing
- Property or Paper? |
Real Estate Investing - Costs and Fees
Purchasing real estate requires a pretty big financial commitment - whether
you are financing the property or paying cash. If you are intending to live
on or use the property, there may be additional costs associated with making
the property liveable, moving expenses, potential storage expenses, and of
course tax considerations.
But there are ways to save money, while still obtaining the property that
you want - whether it is for your personal use or an investment. The first
cost that you will face is the down payment on the mortgage, and closing
costs. Luckily, closing costs are often shared with the seller, and they
include fire and hazard insurance, title expenses, mortgage insurance, and
so on.
Obviously, the first thing you want to do is get good financing before you
negotiate the price with the seller or agent. Shop around for your mortgage
lending company, and find the one that offers you the best deal. Again, do
this before you start negotiating on the price or the closing costs.
These days, banks and mortgage companies will happily compete for your business.
This allows you to easily find the lowest interest rate that you can get
for your credit rating. You also have the opportunity to negotiate required
fees and other charges that are commonly added to the loan. Unless you have
really bad credit, you shouldn't have to pay an application fee.
You can also negotiate the fees associated with title companies. There are
many title companies, and you do not have to use the one that the seller
or agent recommends. Shop around and negotiate the best price. Avoid using
expensive services such as rush delivery. Repeat the process when shopping
for insurance - negotiate the best deal, and know that you are not required
to use the company that the lender or seller recommends.
Depending on your credit rating, you will have various options. For instance,
you may be eligible for a no-down loan, or possibly a low down payment, such
as 5% of the sale price. Note, however, that such loans often carry a high
interest rate, and you need to know this going in.
Above all, be patient, don't jump on the first deal that is offered to you.
Again, shop around. See if you can assume an existing loan. See if the seller
will agree to pay a larger amount of the closing costs in order to close
the deal. In some cases, they may agree to pay all of the closting costs,
but beware that they aren't rolling it over into your loan.
The past several years have been what is known as a seller's market, but
that no longer seems to be the case. No matter what type of market it is,
nobody is in a position to be completely firm when it comes to negotiations.
Incentives play a big role. For instance, if a person needs to move for new
employment, or because of a new marriage, they usually have more incentive
to negotiate.
Remember that you will always keep more of your money in your pocket if you
take the time to shop around for better deals. Don't allow anyone to rush
you into anything. In fact, be very aware of anyone that is trying to rush
you too much!
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Beginners Real Estate Investing Articles
How to Advertise a Rental
Property
How to Build Equity
in any Real Estate Market
How to Find Motivated
Sellers
Developing a Profitable Real
Estate Investing Strategy
Bird Dogging: Getting Started in
Real Estate Investing
Buying Your First Home
Using Lease Options to Purchase Real
Estate
Real Estate Foreclosures
Increase Your Net Worth Through
Real Estate Investing
Interest Only Mortgages
Real Estate Investing
No Money Down Real Estate
Investing
The Power of the Lease Option
Real Estate Investing Tips
Real Estate Investments
Refinancing Your Mortgage
Loan
Paying Your Mortgage
Selling Your House without a
Realtor
"Subject To" Real Estate
Financing
Using Trusts as a Real Estate
Alternative
Search for Beginners Real Estate Investing Information
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