Posts Tagged ‘foreclosure properties’

Purchase A Home In Miami Foreclosure Market

Saturday, April 30th, 2011

You do not have to be expert in order to enjoy an amazing deal in buying a quality home in Miami foreclosures. The market is filled with thousands of foreclosed and bank-owned properties that come in single family home to condos.

What you need to do is to pay attention with the fine details that are involved in the acquisition in order to ensure to get your money’s worth in buying a quality home in the foreclosure market in Miami.

The first thing that you need to consider is the type of home that you want to purchase. As mentioned earlier the market is filled with different properties that are available for sale. You can easily find single family homes, luxury condos, apartments and vacation homes in the city and you have to determine your needs and want in order to pick the right one.

You have to make a checklist of specification of your ideal home such as number of bedrooms and baths, kitchen furnishings, size of the home, its interior design, garden, playground, swimming pool and the likes. Having all of this information ahead of time will help you easily decide the type of home that you need and want.

As you make your plans, you have to include planning for the perfect location. You have to determine ahead of time the location in the city where you plan to settle down. You have to determine whether you want to live in a waterfront property or in the middle of the city. It is also important to determine the neighborhood that you prefer.

Properties in Miami are known for their expensive price. But if you want to have great deals on these properties, then try to consider checking the Miami foreclosure market. Properties in this market are cheaper than in any other market but this does not mean that you will skip the planning stage of home buying. You have to check out your financial reserves in order to determine how much you can safely dish out for this project without putting yourself in financial trouble in the future. If you do not have enough reserve to afford your ideal selection, try to look for additional funding by checking out home mortgage that offers low interest rate and easy terms.

If you think that you knowledge and skill is not enough to deal with Miami foreclosure market, then you can always ask for help from those real estate agents that specialized with foreclosed properties. They can easily help you find the best property for you by pulling out all their resources. They can easily process all the necessary requirements to get the property under your name in the shortest possible time.

Ella Ayson
Miami Foreclosure

Article Source: http://www.articlesbase.com/real-estate-articles/purchase-a-home-in-miami-foreclosure-market-4699382.html

About the Author

Ella Ayson writes for Jump2top.com – SEO Company

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Fractionalize your foreclosure property

Thursday, April 28th, 2011

Let me tell you about an investment strategy that very few investors think about doing with their foreclosure properties.

You purchase a luxury foreclosure property in a vacation destination such as Florida, Arizona, California, Nevada or Colorado at a foreclosure auction or from the bank directly such as a REO property. Then, you turnaround and sell fractional shares to buyers who want to use it as a second home and/or vacation property.

It’s better than a timeshare because the buyers actually own an interest in the property. This is a great niche market for anyone who has a property that he or she is having a hard time selling, too, because fractionalizing allows you to sell the property to several buyers at one time for more than one buyer alone would be willing to pay.

Here’s how it works:

You can sell your property based upon a calculated formula such as the one below:

1/4 ownership buyers get 13 weeks each out of 52 weeks total (with no unused weeks)

1/6 ownership buyers get eight weeks each out of 48 weeks total (four unused weeks)

1/7 ownership buyers get seven weeks each out of 49 weeks total (three unused weeks)

1/8 ownership buyers get six weeks each out of 48 weeks total (four unused weeks)

1/10 ownership buyers get five weeks each out of 50 weeks total (two unused weeks)

1/12 ownership buyers get four weeks each out of 48 weeks total (four unused weeks)

1/13 ownership buyers get four weeks each out of 52 weeks total (no unused weeks)

1/17 ownership buyers get three weeks each out of 51 weeks total (one unused week)

It is always a good idea to keep at least two weeks free for maintenance and repairs.

You sell each buyer an ownership interest in your property and in exchange give them an ownership deed for their proportional interest, which represents the number of weeks they receive based upon a formula you select.

All the buyers enter into an operational agreement with each other, sharing the costs of maintaining the property, including taxes, insurance and repairs and setting forth the number of weeks and which weeks each buyer gets to use the property. They can rent out their weeks if they decide not to use them. Typically, the owners also enter into a management agreement with a management company so that the owners don’t have to worry about managing the property.

Why it works?

This strategy works because any seller can convert his or her luxury property into fractional share real estate, providing the property complies with state or local laws and any governing homeowner association’s rule and regulations. It is a good idea to talk to a real estate attorney in the state in which you purchase the property first to make sure your property qualifies and is in compliance.

What are the benefits?

Keeping a portion of ownership in case you want to use the property or rent it out

  • Selling a property that has been sitting on the market for awhile for more than if you sold it to one buyer
  • Buyers are willing to pay more than market value because they get an appreciable resort-style property that they could not afford on their own to use as a vacation or second home, and the costs of maintaining the property are shared with the other owners.
  • It’s a hassle free way to own vacation or second home property without the burden of home ownership.

Fractionalizing real estate is a win-win strategy for the seller and the buyer.

The seller gets to sell their property for more than they could if they were selling it to one buyer or investor, and they can still reserve the right to use the property or rent it out. The buyer gets to purchase a luxury property without the responsibilities of home ownership.

Right now is a perfect time to buy a foreclosure property at a discount price and fractionalize it or fractionalize a property that you already own that you have not been able to sell.

 

Article Source: http://www.articlesbase.com/real-estate-articles/fractionalize-your-foreclosure-property-4693414.html

About the Author

Foreclosurefreesearch.com is the source for homebuyers and investors. Search all foreclosed homes for sale in your area for a home 30-50% below market value.

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