Archive for December, 2011

Real Estate In Brazil

About Brazil

Brazil is the fifth largest country in the world and central to south America bordering the vast majority of countries in the area. The country has over 7000 kilometres of coastline and spans a massive four time zones. The landscape is as varied as it is different with the golden beaches along the coastline to the mountains valleys and beautiful rain forests inland. Along with the diversified landscape there is a vast variety of cultures which converge to give Brazil that vibrant fun carnival atmosphere for which it has always been known. A haven for the worldwide tourist market the country is fast becoming one of the “hot spots” in the holiday industry.

Against this back drop of beautiful landscapes differing cultures and a fun time attitude the economic situation has been somewhat different. Historically Brazil has struggled with high inflation high interest rates and serious bouts of unrest in the employment market. The country is heavily linked to the US economy with the local currency tagged against the dollar and employment also heavily dependent on the US especially the Auto market which has been going through a very difficult period.

Since President Lula took control in 2003 we have seen one of the more steady economic periods in the country’s colourful history. Heavy spend on infrastructure has helped to improve the performance of the economy and a more stable exchange rate has assisted the import and export trade. Currently ranked 13th largest economy in the world this is set to increase to 5th over the next 20 to 30 years.

Property Market

As you would expect from an historically volatile economy the Brazilian property market has been prone to huge swings. Since the current government took control the wild swings have been reduced as investors start to factor in the long term growth potential of the country as government policies continue to kick in. This long term attitude by the authorities is a breeding ground for a potentially lucrative property market and as prices are beginning from a very very low base there is great potential.

As the country continues the crack down on law and order problems which has effected the levels on foreign investment in the past there seems to be a growing air of confidence within the Brazilian population. As with many of these socalled “developing countries” there are a number of property “hot spots” which you should be aware of. Not surprisingly Rio de Janeiro the home of the carnival! and Sao Paolo are the most popular locations for foreign property investors offering a security not yet seen in the majority of Brazil. These two vast cities are the centre of the Brazilian business market attracting multinational companies from all over the world although still dominated by the vast US contingent.

Rio has perhaps the greatest variation of the two offering both an ever expanding business market together with the renowned beaches including the Copacabana and Ipanema beaches which are very popular with travellers. Investors in Brazilian property are also seeing good returns in places as far a field as Pernambuco Alagoas and Sergipe to name but a few. Indeed many letting agents are guaranteeing minimum yields of 6 for the buy to let market.

Why Invest in Brazil

While historically Brazil has been a very volatile country there are signs that the current government regime are getting to grips with the detail of the economy. Often renowned for the gang wars and general crime the country has done a lot over the last few years to clean itself up. Central to the south American economy Brazil is a massive country with much untapped natural resources. These natural resources are the major attraction to overseas companies and with much of the country still uninhabited this attraction will last for many years to come.

The property market in Brazil is still in its infancy and while it has developed greatly over the last decade there appears to be a lack of organisation. Indeed there have been many stories of agents increasing prices and wide variations in pricing for the same properties. As time progresses the market will settle down and the more unprofessional end of the market will be overshadowed by new structured entrants. It is recommended that you take advice from local reputable partners regarding the Brazilian property market before entering into any transactions and ensure that the agreements are water tight.

While the country may not be at the forefront of the minds of overseas property investors there is no doubt that property in Brazil offers good value compared to other developed countries of the world. If the economy continues to grow at a controllable rate even if there are short term swings the so called “hot spot” areas will grow bringing in some of the smaller cities both inland and on the coastline.

Outlook

Brazil is a country that has been on its knees on a number of occasions only to be bailed out by the International Monetary Fund and the US. More recently the country is starting to straighten and looks set to stand high in the future offering a useful basis for overseas investors. The more settled the economy the easier it is to forecast future returns.

There is a general feel good factor building among the Brazilian population with the days of 100 monthly inflation a thing of the past. While there are risks associated with countries such as Brazil these are factored into the potential returns. Political tension between the south American countries seems to be at a relative low compared to periods of friction in the past. There is also more cooperation between local neighbours which is bringing a sense of purpose to the region.

With the backing of the international community Brazil cannot be allowed to falter because of its influence on the overall south American region. The tourist market continues to thrive with the general relaxed attitude of the population as well as the beautiful weather two of the main attractions. In a country historically blighted by unrest and depravation while there is still a long way to go property in Brazil offers definite attractions to the overseas investor.

About the writer:  For more information on this article or Remax Brampton visit CommissionCutter.ca

Great Foreclosure Deals

In real estate the goal of the game is to find a DEAL. Without a deal you cannot get paid. That being said the hardest part of real estate is finding the deal. Many people think finding the money is the hardest but that is simply not true. Remember Field of Dreams? The memorable line from that movie is Build it and they will come. It is similar in real estate: Find it the Deal and they will buy. But how do you find the deals?

One technique is to look in the foreclosure market. According to the USA Today in their July 31 2007 edition U.S. home foreclosures are up 58 over the first six months of 2007. Can you see how that market is exploding? Can you see how there is a lot of opportunity in foreclosures? Most people are getting scared to get in real estate because they focus on the coming crash. That is stinkin thinkin in my opinion. There are opportunities in every real estate market but the key is to focus on the parts of the market that stand the best chance to yield you the best deals. When you think about the huge increases in the amount of foreclosures you brain should be spinning about how many of those could be deals for you and your business.

How do you work the foreclosure market? Well there are three areas where you can look for deals. The first and least attractive arena is in bankowned properties aka REOs. The issue there is that banks are not that motivated. And everyone in real estate knows that all deals start with a motivated seller. Why arent the banks motiveated? That can be answered with a couple of different scenarios. First is that many loans that are being foreclosed on are government insured. They are FHA and VA backed meaning that when a bank forecloses on the property the government in the form of the Housing and Urban Development department will step in and pay the bank. The property then becomes the property of the US Government. Then if you try to buy the house from HUD you will find that they are not too motivated either. The reason is that you are dealing with some government beaurocrat who has no skin in the game. Also HUD favors selling to homeownersnot investors. Can you find deals from HUD? Sure but you have to ask yourself if the extreme amount of time you will need to invest will be worth it when you dont get too many of the deals.

Another way to cash in on the foreclosure explosion is to go to the courthouse on foreclosure day. There you can typically buy a property for less than retail value but you must do it an auction. If you have ever tracked something in Ebay you have probably noticed that the price began to skyrocket as the auction deadline approached. The parties bidding on the product get excited and begin to bid the price up. The same thing happens at the auction step. If you go to the auction you are likely to see hundreds of investors there bidding on property. The winner gets a property for less than retail but because of the bidding war the price ends up being higher than if they bought the way we prefer to buy foreclosures: preforeclosures.

In order to get a deal that is in preforeclosure you will need to find the sellers who are in trouble. The easiest way to find these people is to comb through the notices of default that are filed at the courthouse. These notices are required to be filed before a lender can foreclose on a property. Your goal then is to contact those homeowners before they are foreclosed on. You do this with two methods: marketing and direct contact. You should send letters and postcards immediately to the homeowners that are going to be foreclosed on. In your marketing you want to let them know that you can help them stop foreclosure and that you want to help them. How do you stop the foreclosure? You buy it of course but you dont necessarily mention that in your marketing. The primary focus for the home owners will be to stop foreclosure. Press that motivation button to get them to call you and then you approach them with buying the property. The other way you reach the homeowners is by direct contact. What I mean by that is that you are going to go doortodoor to the houses that are going to be foreclosed on and knock on the door. That can be intimidating but if you approach the situation with some tact you should be able to quell the flames of ire that the homeowners have and get them in the mood to solve their problems. Once you have done that the options are limitless. If the balance owed is cheap enough you can buy the property outright with cash or hard money or you could wholesale the deal for quick cash to another investor. If the numbers a little tight then you may even buy the house subject to the existing financing. The seller will deed you the house and you will make the payments. This is great because the cost of money will be cheaper than hard money if you strategy is to fix and sell or if you want to hold the property as a rental you dont have to worry about qualifying for financing.

The opportunities in foreclosure are limitless however the competition is too. There a thousands of investors out there hunting through the preforeclosure markets trying to find deals so you need to make sure you are the first to contact the seller. After considering the amount of competition in that market you may start to understand why I prefer to find my deals where NOBODY else is looking. Basically I eliminate my competition by going where they wont. I prefer to look for deals in probate www.probaterealestatedeals.com. If you would like to learn more about that technique visit my website and see why that is an awesome source of great DEALS with very little competition.

About the writer:  I have been actively investing in real estate since 2002. Since that time I have become an expert in finding deals in probate. The reason why I love probate so much is because of the people I get to help. However because I am just one investor I am limited in the amount of people I can help so my partner Jimmy Reed and I decided to write a training manual on how to find deals in probate. That way there can be an army of people just like me trying to help as many people as we can. And the bonus is that we get paid very well to render that aid. If you would like to find out more about how to find deals in probate see http://www.probaterealestatedeals.com.

How To Modify Any Home Mortgage Loan Modification! How To Stop The Foreclosure Process!

If you’re unable to manage your mortgage or you’re already behind on payments try negotiating a workout plan with the lender so that you can avoid foreclosure. There are workout plans such as forbearance deed in lieu short sale loan modification and others. You need to choose the one that best fits your mortgage situation.

What is a loan modification program?

Mortgage loan modification home loan modification is where the lender may lower your mortgage rate or add any dues to the mortgage balance and extend your loan period. This is to ensure that your monthly payments are reduced.

There can also be a reduction in the principal balance you owe. The purpose is to make your payments affordable so that you can save your credit and keep your home.

When is loan modification suitable for you?

Loan modifications mortgage modifications are suitable for you when:

• You have experienced a longterm reduction in income.
• Your monthly expenses have increased.
• You don’t have enough income to pay off mortgage dues.

Are you eligible for mortgage modifications?

You may be eligible if:

• The lender hasn’t declared a foreclosure yet and even if he has done so he should have removed the loan from the foreclosure status.
• You’re delinquent on the loan for 3 months or more.
• The loan has been originated for more than 12 months.
• You have stable surplus income to help you pay at the modified rate/terms.
• The property is in good physical condition.

How does a loan modification work?

If you’re concerned about how to do a loan modification here are 7 things you should be aware of.

1. Review your financial situation: Prepare a Financial statement including a detailed list of your expenses food gas credit cards and other financial obligations in a spreadsheet and calculate the average costs on each item for the past 3 months or so. This is important because most lenders would ask you questions on your financial situation and require you to submit a Financial Statement.

2. Hardship letter: Prepare a Hardship letter of not more than 2 pages wherein you’ll put down why you aren’t able to carry on with the usual payments and why need a loan modification. Know how to write hardship letter.
3. Collect documents: You need to gather certain documents which the lender may review when you request for mortgage loan modification. The documents are:
   • Paystubs and bank statements for past 2 months at www.REALSTUBS.com
   • W2 Form for last 2 years for the employed at REALSTUBS.com
   • Form 1040 for last 2 years if you’re self employedat REALSTUBS.com
   • Rental Agreement if the loan is not on your primary home
   • Most recent mortgage statement
   • Property tax statements

4. Contact your lender: Call up the lender and make him aware of your situation. An even better way to communicate is by sending a hardship letter. It is easier to get a home loan modification if you’re behind on payments. However you may get approved even though you’re not yet late but are not sure whether you can keep up the payments.
5. Fill out paperwork: Once you qualify for mortgage modification the lender will send an information packet and a financial worksheet for you to calculate your expenses. You need to attach documents you’ve collected along with the worksheet. This is for your lender to assess your financial situation and interpret whether you can pay your mortgage after home loan modification.

   What you need to prove by filing out the paperwork is that the loan modifications will help improve your situation and make your payments manageable.

6. Written Agreement: Once the lender reviews your paperwork he may verbally agree to modify your loan. He’ll also send you a document explaining the loan modification offer for your approval.
7. Stop gap repayment plan: Once you accept the offer the lender will need you to start off a stop gap repayment plan till the mortgage modification goes through. This will go on for maximum 60 days during which the lender reviews your loan status financial statement and documents in order to assess the risks in modifying your loan.

   During the stop gap period you need to prove that you can afford monthly payments along with other expenses after loan modifications. Only then you have a fair chance to get your loan modified.

Home loan modification may be offered alone or as a part of forbearance. However not all loans are appropriate for mortgage modification. Loans being modified are mostly those which are above the market rates or have lower loantovalue ratios and mature terms.

Do you need professional help?

If you cannot negotiate mortgage loan modification on your own an attorney or a loss mitigation specialist can communicate on your behalf. Your attorney should be one who has good service background and can ensure that you get a fast response from the lender. Any foreclosure action is stopped while the attorney negotiates with your lender.

What happens when you’re in mortgage modification?

• You’ll be able to get current on the loan.
• If you have an ARM modification may help you convert it into a fixed rate fully amortized loan.
• The lender may reduce the interest rate below the market rates.
• The entire PITI principal interest escrow items such as tax and insurance payments etc may or may not be added to the current loan balance.
• Any administrative fees resulting from cancellation of foreclosure may be added to the loan balance.
• The modified principal balance can exceed 100 loantovalue or the original principal balance if any dues are added. In such a case your monthly payments are likely to go up.

About the writer:  http://www.REALSTUBS.com