The Bitch Ditch

A newcomer to the world of investments in the notion of “Virtual Real Estate Investing“. Everything from using the internet as an avenue to make more money in real estate to online games such as SecondLife seem to be included in the popular definition of this term.

To find out the real story, I had a conversation with Bryan Ellis, widely considered to be one of the originators of the concept of Virtual Real Estate Investing.

“I began using the term ‘virtual real estate investing’ in the late 1990’s when I realized the clear similiarities in profit strategies, regardless of whether the “real estate” is “virtual” or “physical” 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. He points out that control of a domain name or even a specific web page is much like controlling a real estate property ” those assets can be monetized in similar ways: By selling them for a profit, by leasing them, by offering advertising, etc.

I must admit: Its easy to see the parallels. After all, if you own a valuable piece of real estate, it’s “valuable” because other people are interested in that specific piece of property. Likewise, if you own a desirable domain name, others will find value in it because it serves their purposes. Regardless of the type of asset, you can sell or lease or use any number of strategies to turn the assets into cash.

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.

Find the best selection of Dubai properties here!

Regardless the fact that the Property Index service may be considered a rather young house, they were set up in March 2007, they have quick gained in reputation. De facto, they are a unbelievably hassle free house focusing on offering their expert guidance to everyone who is contemplating to rent real estate just about anywhere. Their guarantee is to be of help to you to uncover bang-on what you crave quick plus painlessly. Real estate can be located just about anywhere at the moment, possibly the elite area being property you can purchase in Dubai City. It’s quite easy to chart the ripping real estate on the market in Dubai City, one argument for choosing real estate here being properties available and the opportunity to live surrounded by such a passionate population.

It’s one of the truly sought after regions at the moment, and considering the scenic beauty and great climate surrounding you here, how could you conceivably go wrong? Real estate in Dubai City is very rich in history, culture and art, this geographical region is home to several sophisticated cultures. Around 30 years back you’d find merely a tiny number of Englishmen looking for real estate in Dubai City. Ask any individual who has chosen to relocate to Dubai City and they are certain to back it up. Many would insist on seeing it as a vogue and others insist on seeing it as a near to a fetish. People actually moving to this area generally range from young freshly weds keen on some new challenge in life to the retired intending to settle down.

Note, though, that you are liable to encounter some complications when trying to purchase real estate abroad — as can be expected, there are dozens of actions whether planning, popping in or signing the documents. If you only miss a single procedure that is liable to generate wide-reaching complications and, critically, financial damage. Obviously and expectably with this trendy region, real estate could well be dear in this destination and this, of course, is basically a consequence of the wide spread buyer demand. Regardless of this property buyers are patently spoilt for choice in such a place blessed by happy panorama. It’s got the lot a patron could covet and then some.

New range of UK style mortgages to be expanded The range of UK - style mortgages being offered to British and Irish citizens interested in buying property in North Cyprus is set to be expanded. British company Lewis Finance says the scheme, which is already receiving a lot of interest from expats and people looking to buy holiday homes on the island, will grow to include “TMD” property- given to Turkish settlers - from June. The 70 per cent mortgages being offered already cover both pre - 1974 Turkish title deed land and “esdeger” or exchange land and homes. James Budd, the North Cyprus representative for Lewis Finance, said: “Nothing has been confirmed yet. As more mortgages go through the system we are able to make improvements. “We are already getting a lot of applications through. Unfortunately many people who have been told that they couldn’t get mortgages in North Cyprus previously don’t keep looking for them. We are trying to get all the estate agents and construction companies who are offering the mortgages to highlight what we are doing on their websites. The mortgages, being backed by several of Turkey’s largest banks, start from £26,000 and run from five to 15 years. With the holiday season starting more people will be coming over who may want to buy out here, so we want to make sure they know that they can get a mortgage.

There are mobile homes for sale, for much less than stick-built houses, in most areas of the country. Despite persistent predjudice against them, and sometimes the people living in them, mobile homes are the cheap housing choice of millions. The advantages are not always obvious, but they are real.

First of all, let’s acknowledge the big “truth” about mobile homes and appreciation or depreciation. It’s true in most areas that mobile homes in parks go down in value over time. That’s why I don’t recommend buying in a park, unless you absolutely can’t buy real estate, and you have done the math to see if you are better off than renting a nice apartment.

To “do the math” consider lot rent, payment, and the remaining value of the mobile when you put it up for sale, minus what you will still owe, when you are likely to move. These are guesses, but still better than nothing if you are as objective as you can be.

Mobile Homes For Sale With Real Estate

When looking at mobile homes for sale on land, however, you are looking at an entirely different investment. My mobile home in Michigan doubled in value in the twelve years I lived in it. That’s because even as the home deteriorated a little over time (don’t all houses?), the value of the land continued to rise. You also can do what you like with the home when you own the land. For example, I took in more money from my home than it originally cost, by renting out a room or two over the years.

As mentioned, mobile homes usually sell for less than other houses, and this means lower payments. Also, because of the shortened amortization and lower loan amount, you will often build equity faster in a mobile home than in a more expensive house. A quick example follows, for the skeptical among you.

Equity Building With Mobile Homes

If you buy a house with a $100,000 mortgage loan amortised over 30 years at 6% interest, you’ll have a payment of $599.60. Of the first payment, $500 will go towards interest, $99.60 towards principal. In other words, you only built equity of $99.60 (I’m ignoring appreciation, but only for the moment).

Second scenario: Find a nice mobile home for sale, and borrow only $30,000, at 8% interest, amortised over 10 years. Note that higher interest is always the case with “factory built home mortgages.” The shorter term is normal too, but least you’ll own your home free-and-clear in 10 years instead of 30. Despite higher interest and a shorter term, the payment will be only $363.99, and the first month only $200 will go towards interest. That means the other $163.99 goes towards principal. You bought more house (built more equity) in this scenario.

It’s true that a mobile home on land might appreciate more slowly than a “regular” house, but the faster loan pay-down probably more than covers this factor. If you also chose to bank the difference in payments ($235.61 per month), you’d definitely be better off financially with the mobile home versus the more expensive home.

Pay less per month and build more equity! Don’t expect your real estate agent to tell you this. Don’t expect him to even agree with me after you explain it. I sold real estate years ago, and math skills were not a big part of the licensing requirements.

Mobile Homes For Sale; Other Advantages

Mobile homes are cheaper to maintain. Years ago I had a mobile home as a rental, and the furnace in it died. This is the most expensive repair you’ll have in a mobile. I had to replace it for $1,200, but that was still less than a furnace for a larger home. Consider that for $200 you can tar the roof of your home, or $30 if you do it yourself, instead of $5,000 to re-shingle a traditional roof. The windows, plumbing, doors - all cheaper.

Property taxes will cost less, because they’re based on the value of the property, and mobile homes for sale on land have lower value than stick-built houses. Insurance may cost less too, again because you are insuring less value. The only precaution to remember here is to be sure you can get insurance. Very old mobiles may be uninsurable in some areas.

Should You Buy A Mobile Home?

Don’t buy a mobile home if prices for houses in the area are just as low. Believe it or not, this is the case in some areas. We bought a house near Butte, Montana for $17,500 - less than mobile homes for sale there (See a photo on our site www.HousesUnderFiftyThousand.com).

Houses do generally hold up better. Then there are the issues of whether your own needs and predjudices will let you be comfortable in a mobile home. They are sometimes for sale in areas you don’t want to live in (Certainly true of houses as well). These are personal things you have to consider.

The advantages are clear for many young people starting out. It may be their only option, but it may be your better option. Besides a lower initial price, you get simpler, cheaper maintainance, lower monthly payments, less property tax, less for insurance, and faster equity build-up. So don’t automatically pass on those mobile homes for sale when you’re out home-hunting.

Steve Gillman and his wife Ana have converted their mobile home in Michigan to a rental and moved to Tucson, Arizona. He and his wife also lived for a while in Montana, where they bought a beautiful house (not a mobile) for $17,500. That experience lead to the creation of their website, http://www.HousesUnderFiftyThousand.com

I have heard that WET FEET are NOT bad for ME-

-says the River Birch tree.

For humans, wet feet are VERY bad and cause “Athlete’s Foot” fungus on the skin. The soles of our feet are where the most sweat cells, the densest concentration in our whole body, are found. That’s why athletes who sweat so much often get the foot problem which also got their name. And what happens to our skin when we stay in the bathtub or swim too long?

As for trees, some trees actually DIE if the soil that immediately surrounds them is very wet. CONSTANTLY wet. Just ask any Norway Spruce tree.

Maybe you want to drink a lot of water when you run, or do a workout, or heavy physical labor. Well, similarly, trees that grow fast and grow large, want to drink a lot of water too. But, they don’t want to stay permanently immersed in it!

That’s part of the problem with clay soil, the poor drainage and moisture retention. Some clays can hold water over 40 times their volume. Wow.

Even when rainfall is below average, there are areas on most any property where water collects and the ground is especially wet.

So, look for low spots, look where perhaps where there are springs where groundwater constantly rises, and what about looking for where gutters and storm drains empty? Then, plant a River birch Tree right there and watch it grow! The following web sites provide River Birch trees in the Plumsteadville area: http://www.seedlingsrus.com http://www.zone5trees.com http://www.highlandhillfarm.com

Albeit Property Index may be considered a rather young corporation, incorporated in March 2007, they have established expert status very quickly. On closer scrutiny, they are a rather incredibly incomplex agency and focus on offering guidance to anyone expecting to buy property almost anywhere in the world. They pledge to offer you assistance to detect smack what’s looked for quick plus in a trouble-free manner. There are a range of properties in France for sale on Property Index, from villas to apartments.

Land is being offered all over the place today, one of the hippest areas being land available in France. It should really be simply to list a slew of the superb realty you can purchase in France, one motivation for wanting properties here being a combination of the houses and apartments on the market and the fun opportunity to live among this eager and spirited people.

It’s one of the truly trendy markets currently, and in view of the beauty and the climate surrounding you all year long, you can’t say no… Estate in France is steeped in history, art and culture, this country is and has always been home to a fair number of indigenous cultures. Some 20 years ago you’d find a mere trickle English looking into property in France. These days that trickle become a veritable flood. Just ask any one single person who has chosen to remove to France and they’re likely to tell you the same…

The conditioning process adopted by some agents is one reason for the bad reputation that real estate agents have in Australia. Conditioning has become part of the real estate market because many agents lie to property owners about the value of their property.

The Process

When valuing a property some real estate agents will quote a value in excess of the property’s true value in the belief that the owners will list their property with the agent that gives them the highest valuation.

A typical Australian real estate agent’s selling agreement will tie the property owner to that agent for 90-120 days. If the property is sold during this period the agent will earn their commission whatever the sale price.

Having secured the listing by over quoting the property’s value the agent knows that they must get the owner to accept a lower price for a sale to occur.

The conditioning process begins. The agent will ensure that plenty of “buyers” come to view the property; this activity is often interpreted by property owners as the agents earning their commission. However many of these buyers will have budgets below the asking price of the property, some may not even be buyers at all but friends of the agent!

The real estate agent will start pointing out all the negative aspects of the home, talk of the market not being as strong as it was and giving feedback that the market feels that the property is over priced.

If the property owner elects to sell via auction the conditioning pressures are massively increased on auction day. Often the owner will be pressured into putting the property “on the market” despite the bidding being below the reserve price previously advised. Agents will claim that by putting the property on the market interested parties will raise their bids or even start bidding if they have not previously shown any interest. The logic for this argument is difficult to follow but one thing is certain, by putting the property on the market the real estate agent will get their commission

It is far easier for a real estate agent to persuade a vendor to accept a lower price than to extract a higher price from a buyer. The agent only has one party to focus on in the vendor but may have many buyers to try and convince. Through the listing agreement the vendor is tied to the real estate agent. Agents can treat vendors appallingly and the vendor has no option but to stay with that agent until the selling agreement expires. A buyer on the other hand can walk away at anytime.

The agent is typically entitled to their commission if the property is sold during the period of the sales agreement even if they have never met the purchaser. If the owner finds a buyer through their personal network the agent will still get their commission.

Unfortunately many agents who should be working for the vendor are in fact working for themselves.

Conditioning damages the value of your property

The conditioning process is not just stressful but can damage the value of your property.

Initially many vendors are reluctant to lower their asking price from the valuation that the agent provided to secure the listing. If after a period of time the property has not sold the owner may agree to lower the asking price.

But by now the property will have become stale. Buyers will know that the property has been around for a while without selling and will wonder what might be wrong. The property will have earned the reputation of being a lemon and the vendors may need to accept a price lower than the property’s true value in order to make a sale.

Commission does not guarantee agents will work to achieve higher prices

Many real estate agents will claim that the commission system means that the agent’s goal and the vendor’s goal are aligned as a higher sale price results in more commission for the agent. Simple mathematics and common sense show that this is often not the case.

Assuming a typical commission rate of 3% an agent who works hard to achieve and extra $10,000 for the vendor will earn an extra $300 commission. Yes this is an incentive for the agent to get a higher price but there is a risk that by pushing for the higher price they may lose the sale altogether and no sale means no commission.

It is better for the agent to sell the property at a lower price and move on to the next property than to invest the time in trying to achieve a higher price for the vendor.

For the vendor however the extra $10,000 is well worth the effort! The rate of return that the vendor receives for this extra effort is even more apparent when we consider the amount as an increase on equity rather than as an increase on the value of the property. Given that many homeowners do not own their home outright but with the assistance of a mortgage the repayment of the mortgage will reduce their proceeds from the sale.

For example a couple may be looking to sell their $300,000 property on which they owe $250,000 to their mortgage company. The equity that the couple have in the property is $50,000. If the property is sold for $10,000 less than it’s true value the couple’s equity has been reduced by 20%.

Poor performance from a financial adviser that reduced your investment return by 20% would be seen as unacceptable, but all too often real estate agents are able to get away with this kind of activity.

How to avoid being conditioned

By choosing to sell your home privately and having your property valued by a professional valuer you avoid the stress of conditioning.

Professional valuers have no incentive to inflate the value of your property as they earn an agreed fee irrespective of the valuation that they place on the property.

Nicholas Butler is part of the smartvendor.com.au team, which is committed to providing Australian homeowners a value for money alternative to traditional real estate agents

Visit http://www.smartvendor.com.au to view property FSBO in Australia

I have done so many appraisals where I saw obvious damage that was not reported by the other inspectors. The first couple of times I thought it was just carelessness. I came to realize it was the same agents who had found what I call pocket contractors or repeat business. Most buyers are not aware of this problem but believe me it is a big one.

I remember one very nice fairly new house and I saw what appeared to be moisture damage as soon as I pulled up to the curb. It was on the first and second floor window frames. Also there was a paladium window that leaked on the second floor of the foyer. When I got done with the appraisal, I made the report “subject to” the specific itemized repairs and termite and moisture inspection. The loan processor immediately called me and said they had a clear letter from the termite and moisture inspection and nothing was mentioned in the home inspection with regards to those problems. I didn’t change anything. A few days later the mortgage company called and said the repairs had been completed and to do a final inspection. I returned to the house. The first thing I noticed was the second floor fascia and sills looked exactly the same. Everything had been done on the first floor. We got the huge heavy ladder out which infuriated me, as I don’t like heights and that someone would try to fool me by doing the obvious, clearly visible repairs.

I climbed up the ladder and stuck my pencil in the wood, it sunk right in like a chop stick in pudding. Then a big hunk came off. I called the mortgage company and rejected the repairs. I was called again and they weren’t complete. The repairman was supposed to finish in the afternoon and the loan was to close the following morning. The new owner was a doctor at VA and didn’t have any flexability in her schedule. The carpenter apologized to me that the agent had not told him about that or he would have done it.

I didn’t tell him that I knew the agent and deceipt was her profession. He ran out of the right sized wood so I suggested that he improvise by putting a piece of trim at the top front with caulk just to prevent element exposure. I was there until 8:30 p.m. before it was complete and I could approve it. The agent is still practicing and I am sure using the same inspectors. How sad. P.S You know who you are Ann.

Suzie is a licensed real estate broker and certified residential appraiser with twenty years of experience. Other professionals in the field have contributed as well. They are brokers, agents, appraisers and educators. http://www.freewebs.com/realestatenews

Integrated marketing sounds pretty scientific. Maybe that’s why
up-and-coming marketers get a glazed look in their eyes when the
subject is mentioned.

Truth is, integrated marketing is easy to understand. It can
also do wonders for your real estate marketing program as a
whole. My goal with this article is to take you beyond
understanding integrated marketing and well on your way to
practicing it.

What is Integrated Marketing?

Here’s a definition I found on the Internet: “Integrated
Marketing: The practice of blending different elements of the
communication mix in mutually reinforcing ways.”

Fair enough. But let’s simplify it even more. Integrated
marketing is when different marketing channels (print, web,
email, etc.) work together to achieve a common goal. The “work
together” part of that sentence is critical, and it prompts me
to come up with a definition of my own.

“Integrated” is past tense. It suggests something that has
happened once and will not happen again. It’s not
forward-thinking.

So let’s call it “cooperative marketing.”

Here’s the key principle of cooperative marketing: The
individual parts cooperate to achieve more than they’re capable
of achieving on their own. In other words, the whole is greater
than the sum of its parts.

Cooperative Marketing in Action

Let’s say you’re an agent targeting buyers. The goal of your
direct marketing campaign is to generate phone calls and emails
from prospective clients. (An excellent goal, by the way, since
surveys have shown that most people go with the first real
estate professional they call).

To persuade your recipients to contact you, you’ve decided to
offer a free home-buyer’s kit. Here’s how cooperative marketing
might help you achieve your objective:

You send a direct mail postcard to your farm area. The postcard
highlights the free (and valuable) home-buyer’s kit you’ve
created. It provides clear instructions on how to obtain the
guide.

The postcard also has a thumbnail image of the information kit’s
cover (a further enticement) and directs the reader to a page of
your website where they can view an excerpt of the info kit.

They read the excerpt and like what they see (because, of
course, you’ve chosen the two best pages for the excerpt). To
get the free kit, all they have to do is call or email you …
which, hopefully, they do.

Better still, the information kit functions as a high-value
business card, because you were wise enough to include your
contact information in it. And if the recipient passes the kit
along to friends, you’ve just extended your marketing reach and
your potential ROI, without any extra effort.

Now that’s cooperative marketing.

On its own, a marketing postcard cannot convey much
information. But when it entices the reader with a promise of
value, and then points the reader to a website where that value
can be gained in full, the postcard enjoys a whole new level of
effectiveness. Cooperative marketing has been achieved.

On its own, a website can contain a lot of valuable
information. But your prospects will never know it’s there,
aside from stumbling across it. The marketing postcard puts the
website in front of them and gives them a specific reason to go
there. Cooperative marketing has been achieved.

Lastly, don’t mistake the word “cooperative” with “dependent.”
The postcard doesn’t necessarily depend on the website for
success — nor the opposite. Each channel is capable of
generating responses on its own. They’re just capable of a lot
more when they cooperate.

Direct marketing (and marketing in general) is rarely a one-shot
deal. The whole is more powerful than the individual parts. The
parts cooperate to achieve the common goal.

Integrated marketing is cooperative marketing.

When we first considered moving to Florida, our first thought was to look for a new home in Pinellas County or Hillsborough County. After all, Pinellas County is close to all those great Gulf beaches, not to mention Clearwater and St. Petersburg. Hillsborough County had the city of Tampa. There were lots of good schools here in the Tampa Bay area, too, which was important for us since we have two children.

Inquiring around, we learned that all the neighboring counties operate under a school choice program. What this means is that you must apply for your first, second, and third choice schools and wait for an answer to hear if you have been accepted. Living nearby to the school of your choice does not necessarily affect your acceptance. Most families do end up getting their first choice school, but there is a small chance that if you miss the registration date or if that school is full, you may be assigned another school. Well, we missed the registration dates. As we considered the idea of a private school, we happened upon the town of Trinity in Pasco County, Florida. Trinity is a new master planned community just beyond the Pinellas County border. A new community means lots of new schools and newer construction for potential homes for our family. So we looked further.

What we found in Trinity and Trinity real estate was a wonderful surprise. Cows still graze the pastures here, giving Trinity a peaceful country setting. No traffic here, no congestion either. The community was quiet but growing. New businesses and shops were sprouting up along the major roads in the area. Many beautiful subdivisions were in development. We began to explore neighborhoods and get to know the area. With several great schools in the Trinity community, we’d have no problem getting into the neighborhood schools. We decided on a home in the Fox Wood Community, Trinity’s largest subdivision. Fox Wood is a gated community with two community parks, walking trails, and a covered pavilion. There are other great neighborhoods too, like Thousand Oaks, Trinity Oaks, Trinity West, Fox Hollow, Champions Club, and Heritage Springs for those 55 years of age and over. We liked what we saw in Trinity real estate.

As for the beaches, we are still close to those great Gulf beaches of Pinellas County. Trinity is only about a 5 minute drive to the border of Pinellas. Pasco County has some beaches of its own, too, like Hudson Beach and Robert K. Rees Park. We’re close to the cities of Pinellas and Hillsborough too. In fact, with the Suncoast Parkway just a few minutes away on Rt. 54, we can shoot down to Tampa in about 20 minutes. The Tampa International Airport is so convenient too, with an easy exit right off the Suncoast.

Great beaches, schools, restaurants, shops, and metropolitan cities nearby and a great choice in real estate! That’s why we love Trinity, Florida.

Joe Gibbons is a real estate sales agent with the Lipply Real Estate Group of Remax Realtec. Since moving to Florida from Fairfield, CT and choosing to live in the Trinity area, he has been specializing in Trinity Real Estate. Visit the team’s website at Trinity Florida Real Estate for more information on Trinity, Florida. Call toll free at 1-888-423-5775 to get homes available for sale in Trinity. Ask for Joe!