With the Real Estate market where it is ..sellers and investors are more creative than ever. Builders, Land Developers and the like have suddenly found themselves sitting on product with minimal qualified individuals to purchase. There are a lot of builders and house "flippers" that have built a spec home or a "fixed up" a distressed house now cannot find buyers.

These investors need to cover their payments or they are at risk of losing their investment and the house to foreclosure. Herein comes the Lease to Own. I have incorporated this into several houses that I own and could not sell. Investors are more likely to look beyond some credit blemishes as long as you can prove that you can make the monthly payment. It is a win-win. This is a great way to save for a down payment.

How? Well in addition to any contributions towards your savings account monthly and being "Disciplined" as previously mentioned you can maximize your savings through a lease to own. If you are currently renting with a payment of lets say $1000.00 per month you are currently giving 100% of the payment to the landlord.

In a lease to own scenario, the Landlord agrees to set a percentage of the payment towards a down payment to purchase the home. This percentage will vary and can be negotiated. For example, a landlord may agree to allow 30% of the payment to apply towards the down payment to purchase the home. This would equal $300.00 per month of the $1000.00 overall rent payment to be put in a kiddy which equals $3,600 per year. Lets say you are already saving $300 per month outside of your existing rent you now have doubled your savings from $3,600 to $7,200 in just 12 months.

Lease to own deals are common and just take a little research to find. You can also approach existing Builders and investors, in your market, and see if they are willing to entertain the thought. Watch the local paper and trade magazines in your area for houses that have been on the market for a period of time and or express "Motivated Seller" or "Creative Financing Available". These sellers will be more open minded. And for the sellers who are not promoting this but have been sitting on their house for a while may just need to be educated to the idea. This is a great way to move into a house now in which you begin building equity from the start in addition to automatically saving towards a down payment monthly. This is also a great option for individuals who can afford a monthly payment but are strapped with being able to save anything additional. .. this is a cycle that a lot of Americans find themselves in these days. Of course you will need to research the subject a bit and get familiar with the concept if you are not already but this can be one of the best ways to build equity and savings for a house.

Good luck to you

Sean McAlister”

When it comes to selling or purchasing a home, it is a big deal and can be one of the biggest transactions you will ever enter into during your life. As with most transactions of this sort, a contract is required. Ah, but what if you are not a lawyer?

Let's start off with the basics. A contract is simply an agreement between two parties in which each promises to do something. In its most basic form a real estate sales contract is an agreement wherein the seller promises to exchange title to the property in exchange for the buyer's promise to hand over a boat load of money. If one party fails to live up to its promise, then that party is in "breach" of the contract and a court action can be filed to enforce the promise.

If you have ever purchased a home, you know a real estate agreement -or- sales contract can be more complex than the simple example in the previous paragraph. You might not know why exactly, but the sheer thickness of the agreement tells you as much. So, what is all that extra stuff? More importantly how can you gain quick access and knowledge to all that extra stuff?

Well I have the answer
Complete Real Estate Forms

With the click of a button, you can download a legal and binding contract in seconds, easily customized to your particular needs. These contracts are approved for all 50 States.

Are You Selling A Home?
Access all of our Real Estate Forms. Forms include: Real Estate Sales Contract, Offer to Purchase Real Estate, Property Disclosure Form, and more.

Need a Real Estate Form Today?
All of these forms open in your Word program. All you have to do is Open, Edit, Save or Print. You will also receive a follow up email with your download link. This link allows you to come back anytime in the future to access your forms.

You will find contracts and agreements such as:

Offer to Purchase Forms
Real Estate Sales Contract s
Quit Claim Deed s
Condo Sales Contracts
Residential Leases
Rental Applications
Property Disclosure Forms
Real Estate Articles's

as well as other resources such as:
Online Listings - Sell your Home Online in your Area's
Real Estate For Sale by Owner Help's
Real Estate Investment Tools and Resources

Real Estate contracts are vital when it comes to buying and selling real estate. For this reason I will be conducting a 4 week course specific to Real Estate Contracts. This course will cover different types of contracts what they mean and when they should be used.

Feel free to link to this site or grab the RSS Feed so that you can have instant access to this valuable information and the 4 week course.

This course will begin within the next couple of weeks and is guaranteed to provide useful helpful insight when it comes to Real Estate Contracts.

And don' forget... you can have access to a Complete Package Real Estate Forms right now!

Remember. You can do anything you put your minds to and have the resources necessary to achieve it!

Wishing you much success
Sean McAlister

MERIDIAN REAL ESTATE PRESENTS:

Buyer's Agent Smoothes Sometimes Bumpy Road to Foreclosure Purchase

By Rick Sharga, Vice President of Marketing for RealtyTrac

Whether it's the first time or the tenth, buying a home can be both an exhilarating and overwhelming experience. As with any major purchase, there's a significant amount of pressure to make the right decisions about such matters as where and what to buy, and ultimately how much to spend. How can you make sure you get the best deal possible on a property that suits your needs, or find exactly the right property to fit your budget and your lifestyle? Increasingly, many homebuyers are doing this by secure the representation of a Buyer's Agent.

Most people hire a real estate agent to sell their home, but overlook the importance of having an agent when buying a property. While in some cases it's possible to negotiate your purchase through the seller's representative, make no mistake: these seller's representatives are charged with making the sale and negotiating the best deal for their clients — the sellers! With that in mind, it's best to secure your own representation as a buyer, in order to minimize potential conflicts, and make sure your interests are represented.

In the more complex foreclosures market, a Buyer's Agent can be even more valuable. The agent can help you negotiate with the owner before a property comes on the market and can also act as a buffer during the negotiating process to make sure you've completed all the necessary steps before closing. Done right, it's like having your own personal tour guide to help you find your way through the foreclosure buying process.

For buyers looking to uncover substantial bargains in real estate, the foreclosures market does offer a treasure trove of opportunities. Foreclosure properties are some of the best opportunities in real estate today with savings of 10-30 percent below market value. Some properties offer savings of up to 50 percent or more! But like any investment offering a high return, there are sometimes higher risks involved in buying a foreclosure than in buying more traditional real estate. One of the ways to maximize the value while minimizing the risk is to work with Buyers Agents who specialize in this market, with specific experience navigating the twists and turns that come with purchasing a foreclosure.

"If you're in the market for a foreclosure property, you should really take some time to look for an agent with actual foreclosure transaction experience," explains James J. Saccacio, chief executive officer at RealtyTrac, the leading online foreclosure marketplace. "The nuances of this market make it a different animal from conventional real estate, so buyers owe it to themselves to secure a seasoned agent who's familiar with the foreclosures process, and has knowledge of local, regional and state laws."

RealtyTrac's National Agent Network connects prospective buyers of foreclosure properties with local agents who specialize in foreclosures. Homebuyers can go to www.realtytrac.com to identify and research potential home purchases, as well as to find all the tools and professional resources they need to help them close the deal.

Of course, it's also important to consider the agent's knowledge of the area where you wish to purchase property, their ability to close a deal, and their access to other professionals such as attorneys, lenders, and title companies. It's often a good idea to interview two or three agents to ask about their credentials and to test out chemistry, just as you would when selecting any valued business partner. Ask for references from previous buyers to see what people who have been in your shoes have to say about the agent's credentials and demeanor. Ultimately, your agent should make you feel confident that they know how to steer you correctly through the foreclosure buying process.

Here are some questions to ask a prospective buyer's agent if you're buying a foreclosure:

• Are you a licensed, full-time an agent?


• Are most of your clientele buyers or sellers?


• How long have you worked with foreclosure real estate?


• How many clients are you working with presently?


• Do you have former clients I can contact as references?


• How will you help me contact owners in default?


• Are you familiar with the foreclosure laws in this area?


• How much commission will I pay as a buyer?

Once you've selected an agent, you'll need to set up some ground rules for how you want to work together, such as times you are available to view homes, expectations regarding the agent previewing properties on your behalf, and courtesies expected by both parties.

Keep in mind that even the most intuitive agents are not mind readers. You need to make your preferences, priorities and spending limits clear up front, so neither party wastes valuable time looking at properties that don't meet your needs.

Finally a word about etiquette: While you don't necessarily have to commit to working exclusively with a single agent (unless you've signed an exclusive agreement with them), it's most proper to ultimately extend your loyalty to an agent who spends a significant amount of effort helping you find a property. Remember, real estate agents work on commission, so the time they spend working on your behalf amounts to nothing if you don't ultimately make a purchase through them. If for some reason, you find that your needs are not being met by a particular agent, it's best to set the record straight early in the process, either to correct the problem or to retain alternate representation.

Working with a Buyers Agent can often result in a net savings on property purchases—whether traditional resale homes or foreclosure properties, and can also help inexperienced home buyers from making costly mistakes in negotiations, contract terms and property research.

Trump: Greatest Real Estate Opportunities Have Moved Overseas
By Matt Valley

Jun 4, 2008 4:23 PM

Once the place for the world’s great investors to park their money, the United States is no longer the kingpin for generating business opportunities and has lost respect around the globe, says famed real estate developer Donald Trump, who is convinced that the situation is not irreversible.

“I look at what’s going on in the rest of the world – Russia, India, China. You don’t hear about the United States in the same breath. When the great funds of the world come to me, they want to do a job in India, they want to do a job in other countries,” remarked the charismatic Trump during a luncheon speech Monday before several hundred hotel industry professionals at the Waldorf=Astoria. The appearance of the chairman and president of The Trump Organization marked one of the highlights of the 30th annual New York University International Hospitality Industry Investment Conference that attracted approximately 2,400 attendees.

“The problem that I see with the United States is that we’re no longer respected, we really aren’t,” lamented Trump, pointing out that there is plenty of blame to go around, starting with the political leadership. “I think that [perception] can be changed. We have the greatest people, the greatest businesses.”

One important issue that needs to be rectified, Trump says, is the U.S. trade deficit with China. Trump’s solution? “Put John Gray in charge of negotiating terms with China. Guess what? I think we’d do very well.” Jonathan Gray, of course, is a legendary tough-as-nails negotiator in his role as co-head of the real estate arm for The Blackstone Group. Trump’s suggestion drew a big chuckle from the audience.

The problem is that the U.S. has diplomats negotiating trade agreements with China and Japan, not seasoned business professionals and deal makers, argues Trump. “I’ve watched this for years, where Japan would just rip us. By the way, they [the Japanese] tell me, ‘I can’t believe we’re getting away with it.’” It’s much the same with the Chinese, says Trump.


When Trump talks, the industry listens. The Trump Organization owns several pieces of high-end real estate in New York, including Trump International Hotel & Tower, Trump Tower, and 40 Wall Street. The company also is one of the world’s largest operators of hotels and casinos, including three casino hotels in Atlantic City. Fortune magazine ranks The Trump Organization No. 31 on its list of the 35 largest private U.S. companies. The Organization generated $10.7 billion in revenues in 2007.

The company increasingly is developing projects overseas. The Palm Trump International Hotel and Tower in Dubai is a 48-story mixed-use condo-hotel and residence with a 300-room five-star hotel and 360 residential apartments. The $600 million development, a joint venture with Dubai-based Al Nakheel, is expected to be completed sometime in 2009.

“From the standpoint of everybody in this room, you go where the action is, but personally I’d rather not fly to the Middle East. I’d rather not fly to Dubai.” Trump is quick to add, however, that he cherishes his business relationships with his partners in Dubai.

The financing climate is the worst that Trump has ever encountered. The global credit crunch has a silver lining for the hotel industry because it will limit supply growth, Trump says, a starkly different situation than in the early 1990s when a supply glut existed.

Trump related the story of an office developer who can’t get financing despite the fact that a tenant with a Triple-A credit rating has committed to the space. “The banks don’t have money. They’ve hurt themselves, and what they’ve done is inexcusable, and now they’re starting to hurt the world,” says Trump. The European financial markets, for example, are starting to feel the effects of the subprime residential mortgage fallout.

Still, there are pockets of vigorous real estate investment activity in the U.S. market, most notably New York where investment capital continues to stream in from abroad. “But part of the reason that New York is working is the dollar is so low,” says Trump. If the dollar were to suddenly rise, the New York economy could experience some hiccups, he says.

brought to you by Sean McAlister

Fannie Mae Has $3.55 Billion Fourth-Quarter Loss (Update2)

By James Tyson

Feb. 27 (Bloomberg) -- Fannie Mae, the largest source of money for U.S. home loans, posted a $3.55 billion fourth-quarter loss and said its slump will worsen this year as rising foreclosures send credit costs soaring.

The net loss was triple analyst estimates. Fannie Mae recorded a $3.2 billion drop in the value of derivative contracts and $2.9 billion in credit expenses, according to a filing with the Securities and Exchange Commission.

``We are working through the toughest housing and mortgage markets in a generation,'' Fannie Mae Chief Executive Officer Daniel Mudd said in an accompanying statement.

Fannie Mae increased its estimates for credit losses and said home prices will decline more than its previous forecast, boosting costs for the $2.3 trillion of mortgages that the government-chartered company owns or guarantees. The prediction by Fannie Mae, which accounts for at least one in five home loans, heightened concerns that the housing market may drive the U.S. economy into recession and sent stocks lower.

``I expect it's only the beginning,'' said Joshua Rosner, the managing director of New York-based research firm Graham Fisher & Co.

Fannie Mae today raised its estimates for credit losses this year to a range of 11 basis points to 15 basis points from a range of 8 basis points to 10 basis points. Analysts including Paul Miller at Friedman Billings Ramsey & Co. in Arlington, Virginia, say credit losses will rise to a range of 15 basis points to 25 basis points this year and in 2009.

Loan Losses

The company has lost more than half its market value in the past year as the housing slump deepened. Analysts at Goldman Sachs Group Inc. and Merrill Lynch & Co. cut their recommendations to ``sell'' in the past week on concern that falling home prices will restrict earnings.

Fannie Mae fell 34 cents, or 1.2 percent, to $26.63 as of 9:40 a.m. in New York Stock Exchange composite trading. Freddie Mac, which ranks second to Fannie Mae, dropped 72 cents to $24.49 and is down more than 61 percent in the past year.

Fannie Mae's net loss amounted to $3.80 share, compared with profit of $604 million, or 49 cents, a year earlier, Fannie Mae said. Excluding some items, the per-share loss was $3.79, compared with the $1.20 average estimate of 12 analysts in a Bloomberg survey.

Foreclosures Rise

Fannie Mae and Freddie Mac profit by holding mortgages and mortgage bonds as investments and by charging a fee to guarantee and package loans as securities. They record losses when defaults rise.

Freddie Mac is scheduled to report tomorrow. The McLean, Virginia-based company had losses of $2.02 billion in the third- quarter and $480 million in the year-earlier fourth quarter.

Bank seizures of U.S. homes almost rose 90 percent to 45,327 last month from the same period a year ago, according to RealtyTrac Inc., a seller of foreclosure statistics that has a database of more than 1 million properties. Total foreclosure filings, which include default and auction notices as well as bank seizures, increased 57 percent. More than 233,000 properties were in some stage of default last month, RealtyTrac said in a statement.

Timely Earnings

Fannie Mae, by reporting timely audited financial results for the first time since 2004, met conditions for the removal of a federal limit on its $724 billion in mortgage investments imposed after a $6.3 billion overstatement of earnings. Its portfolio of home loans and mortgage-backed securities is one of its two main sources of profit.

Still, the need to bolster capital against the worsening housing market will inhibit growth this year, Miller said. Fannie Mae sold its preferred shares in December after its third-quarter loss of $1.4 billion.

``For me to get very comfortable in recommending this stock, I'd like to see something above $15 billion in capital raising,'' Miller said.

The cost of protecting Fannie Mae bonds from default have doubled this year. Credit-default swaps tied to the bonds rose 8 basis points to 87 basis points today, according to broker Phoenix Partners Group in New York.

A basis point on a credit-default swap contract protecting $10 million of debt for five years is equivalent to $1,000 a year. Credit-default swaps are financial instruments based on bonds and loans that are used to speculate on a company's ability to repay debt. They pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.

Derivatives are financial instruments derived from stocks, bonds, loans, currencies and commodities, or linked to specific events like changes in the weather or interest rates. Fannie Mae and other companies use derivatives to hedge against losses on assets and investments including home loans and mortgage bonds.

To contact the reporter on this story: James Tyson in Washington at at jtyson@bloomberg.net