The 1970s was the beginning of the end for widespread asbestos use in heavy industry as the health risks of asbestos became apparent. mark attwoodCertain types of respiratory disease like lung cancer and asbestosis were alarmingly prevalent among miners and other workers who worked closely with asbestos. After nearly a century of high usage, this development posed quite a concern. Its low cost, fire resistance, and durability made asbestos fiber an attractive, easy-to-use ingredient in thousands of products. The presence of asbestos materials in homes and commercial properties persisted despite the knowledge of its carcinogenic side effects.

With this knowledge, the demand arose for professional asbestos removal companies to decontaminate homes, commercial and rental properties, and public buildings. If left undisturbed or properly contained, stable asbestos materials pose no serious threat. However, asbestos can be easily disturbed, at which point it becomes dangerous, and this has created a demand for certified asbestos removal contractors and workers. For commercial properties, asbestos removal or encapsulation is required before any renovation, reconstruction, or demolition can take place. mark attwoodAsbestos removal muppetville makes sense not only as a health issue, but also from a resale standpoint. If you wish to one day resell your property, not disclosing a known asbestos problem could stick you with unwanted legal problems.

You can avoid these issues by hiring an accredited company for the asbestos removal. Detection of asbestos material in your home or commercial property is relatively simple, and if it is found to pose a health risk, it can be dealt with effectively. Remember, it is safer to leave stable asbestos materials alone than to attempt to remove them without the necessary precautions in place, for the hazards of asbestos are well known. If asbestos is crumbling or flaking, it might already be airborne and very hazardous, and that is when you should leave the work to the experts. Take the hazards of asbestos and asbestos removal seriously by doing yourself the favor of hiring a professional. Mark Attwood

Popularity: 8% [?]

Here is another free gift to help accelerate your real estate investment business.

This a 37 page PDF with lots of photos and worksheets to help you quickly and easily estimate rehab costs. We see new or young investors underestimate rehab cost all the time an get them self into trouble because they paid to much or run out cash to finish a rehab. Use this guide even if you are experienced to improve your estimates.

The Rehabbers Survival Guide

Thanks

Please tweet this as a way to share with your friends.

Mike

Popularity: 32% [?]

This is great article by By James Kimmons, About.com Guide

On January 15, 2010, David H. Stevens, Assistant Secretary for Housing – Federal Housing Commissioner, waived the 90 day flip rule for FHA mortgage insurance. This move is being heralded by many real estate investors as a boon to their ability to buy, rehab and resell foreclosed homes on a more efficient time line. By increasing the ability of investors to flip properties sooner, the hope is that they will become more active and help to reduce the growing inventory of foreclosures, many now held by the FHA itself.

Why The FHA is Waiving the 90 Day Flip Rule

The government announcement states: “To help facilitate the return of repaired and habitable properties to the market in a timely fashion, additional exemptions to the 90-day resale restriction period must be granted for the purchase of properties by investors. This policy change will help to sell properties that may otherwise remain vacant for up to 90 days, while offering affordable housing options to buyers wishing to use FHA-insured financing.”

To support this decision, the government issued these findings:

* Since the restriction has been in place, foreclosures have increased rapidly, and inventories are rising.
* FHA now owns a great many homes, and waiving this restriction will help to move them in the market.
* Many buyers aren’t able to get financing today unless they can go FHA, so this will allow more buyers to get financing.
* Most foreclosed properties are sold “as-is.” This gives investors the incentive to do rehab work, as they can sell the property sooner, cutting holding costs & risk of vandalism.
* The fact that purchase, rehab and resale can be accomplished in less than 90 days makes this decision one of responding to market needs.

The Basic Criteria To Qualify

The waiver is set to expire one year after its effective date of February 1, 2010. FHA plans careful monitoring of defaults, checking to see if there are more than desired among properties taking advantage of this waiver. If so, the program can be canceled at any time. All transactions must be arms-length. The seller must hold title to the property, meaning the one delay will be the wait for proper recording and deed. LLCs and other corporations will be scrutinized by lenders for legality and arms-length status. There can be no flipping activity for the same home during the preceding 12 months. And finally, the property must have been marketed openly, via an MLS listing, auction, For Sale By Owner offering or developer marketing. Special scrutiny for irregularities will be done on any deal with an “assignment of contract of sale.”

20% or Higher Sale Than Acquisition Cost Brings More Rules

In cases where the sales price of the property is 20% or more than the acquisition cost, a new set of rules kick in. The first important thing for the investor to do is to document every dollar of acquisition and rehabilitation cost. Once the 20% threshold is reached, the waiver will only apply if the lender:

* justifies the increase in value by retaining in the loan file supporting documentation and/or a second appraisal which verifies the rehab and subsequent increase in value.
* if no work is performed, gets an appraisal providing adequate explanation of the increase in property value since the prior transaction.
* provides a property inspection report to the buyer, and it can be charged to the buyer. The inspector cannot get paid by any entity other than the lender, can’t take or give referral fees for the inspection, and can’t recommend repair companies or be involved in repairs.
* make sure this inspection is thorough, covering structural, roof, plumbing, electrical, heating, air conditioning, fireplaces, balconies, walkways, decks, driveways, and solid fuel burning appliances.

This waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for Purchase program. The full text of the waiver is at this link. For those real estate investors who have avoided deals because of the 90 day flip rule, go out now and take advantage of the huge inventory of foreclosure bargains.

Popularity: 14% [?]

They’re out there, again, constantly searching for and scooping up South Florida homes at steep discounts, hoping to turn a nice profit. A house might barely have time to get listed before it’s gone that is, before it’s back on the market a few months later at a 20%, 30% (do I hear 50%?) markup.

Yes, the home flippers are back, beginning to dominate the real estate landscape in one of the epicenters of the housing crisis. Sounds like 2003 all over again? Are they harbingers of another housing free fall? (See the best business deals of 2009.)

Real estate analysts say not to panic yet. This new cohort of investors is kinder, smarter, less predatory. It might even mark the era of what experts are calling “the good flipper.” “The first group blew it they don’t have any money left,” says Bradley Hunter, who heads the South Florida office of Metro Study, a housing-consulting firm. “The current group of investors is made of [genuine]investors and not momentum flippers.”

Those who bought seven years ago didn’t care how high the price might be they just assumed the price would keep going up. Things are different now. “Today’s investors are saying, ‘It’s all about the price,’ ” Hunter says. Jack McCabe, a real estate consultant in Deerfield Beach, Fla., agrees. “These are not the cocktail-party investors of 2005,” he says. “Today’s flippers are generally long-term real estate investors with war chests of cash who were waiting for the debacle to unfold and for the opportunities it would present.”

The current crop of investors, analysts say, are playing a crucial role in reviving the housing market, buying up homes that have been foreclosed on and often torn up by the previous owners and getting them back into shape. Many former owners hauled appliances away and ripped out the wires. Some got so boiling mad that they pulled off cabinet handles and smashed glass doors. Somebody’s got to clean up those messes, and that’s what the good flippers do, observers say. They might try to sell right away or rent the houses for a while. Either way, it’s good for the whole neighborhood, because a house that might have sat fallow is now rehabbed, preventing drops in value all around it. “They’re vital,” Hunter says of the good flippers. “I can’t think of a conceivable way that we could turn the market around without them.”

A group of investors that goes by the name Pudlit has bought up 59 homes in Palm Beach County since the fall. A three-bedroom house that the group bought in September for $95,700 is back on the market for $148,900 a 55% bump. David Dweck, an investor and mortgage broker who founded the Boca Real Estate Investment Club in the 1990s, says he’s done 50 deals over the past year as either the buyer, the broker or the lender. “Are you sitting down?” he asks, then describes a three-bedroom house he just snatched up, in the admittedly “spotty” West Palm Beach neighborhood of Northwood Hills, for $26,000. “It’s got great potential,” he says. “I can either sell it or rent it. It doesn’t matter to me.”

But even Dweck cautions against placing halos over South Florida real estate investors. Are some people out strictly for the quick hit that will inflate prices artificially? “Without a doubt,” Dweck says. “We are in the fraud capital of the country.” Even good flippers sometimes cut corners on home improvement, putting new doors on old cabinets in one Pudlit house just in time for potential buyers to be escorted on a tour.

And there is still troubling game playing afoot, observers say. At a courthouse foreclosure auction, when a novice buyer has his heart set on a property that more seasoned buyers deem undesirable, sophisticated investors will routinely team up and place bids designed to jack up the price. The novice will get his house, but he’ll have overpaid. That means he’ll have to put a higher resale price tag on it to get a return on his investment, offering less competition to the more seasoned buyers who will have paid less for their homes. It also means less competition on other purchases, since the novice buyer might have put all his eggs in one overpriced basket. “That happens all the time,” says Dweck. “They’ll bid ‘em up, let ‘em have it, and laugh.”

What’s more since “cash is king,” as McCabe puts it even good flippers can make things more difficult for the traditional buyer who needs to borrow. “It’s difficult for those buyers to get the properties that they want,” says Yanmei Li, an assistant professor in urban and regional planning at Florida Atlantic University who is researching the resales of foreclosed homes in Fort Lauderdale. “Sellers are willing to sell to the cash buyer even if it’s a little bit lower than they want.”

Artificial price inflation might be more prevalent than is generally acknowledged, she adds. For example, one Fort Lauderdale home she came across was bought from the bank at $60,000, then sold four days later for $20,000 more. That smacks of an unreasonable hike, though she acknowledges the bank may have simply wanted to unload it at a bargain-basement price. “Once the price is inflated on one property, the surrounding properties‘ prices will also be inflated,” Li says. “I’m a little concerned that the prices might be more inflated in two or three years because the investors are doing that.”

Li notes that lazy appraisals that take into consideration only price comparisons rather than looking closely at the actual quality of the housing stock are also to blame for the prospect of artificially inflating the market. In short, she says, the same age-old advice holds true: “The buyer has to be educated about the buying process.” Which might go a long way toward preventing what got us into this mess in the first place.

Popularity: 14% [?]

First time homebuyers should understand the fact that each kind of home has different maintenance costs associated with them. Knowing what these costs are can certainly help buyers make an informed decision.

Specific types of MN homes for sale have unique maintenance costs attached to them. These could range from government and local taxes to community association fees. If you are a first time homebuyer, take the time to know the maintenance costs for each house you are interested in; as this can spare you from future headaches. Below is a list of the common maintenance fees for each type of houses.

An increasingly popular choice for first-time homebuyers, living in a condo means you have access to shared living spaces and amenities. As such, you’ll need to pay fees depending on your stake in the building.

Ilyce Glink, who is the author of the book ’100 Questions Every First-Time Home Buyer Should Ask’ says that each owner must pay maintenance fee equal to his total share of ownership in the condominium. This is calculated by first getting the total expenses in operating the building and dividing this to an owner’s percentage of ownership. The total building expenses include the building’s emergency reserve account, and the final cost may fluctuate over the course of the year.

Townhouses: The fees associated with town homes are the same as any independently owned homes incur. However, some MN townhomes are part of a homeowner’s association, in which case you will need to pay a monthly fee for maintenance. These monthly association fees usually comprise of repair and maintenance costs of common exteriors and landscapes.

Mobile Homes and Pre-Fabricated Homes: Mobile home owners and pre-fabricated homeowners are usually responsible for all fees involved with maintaining and operating their home. This includes the cost of sewage, water, cable and other utilities. Mobile houses can also be located in mobile parks. Some parks charge homeowners for a fee to lease the land they locate in.

Single-Family House: Detached home maintenance costs are typically the responsibility of the homeowner. Even if the home is within a community setting, the homeowner will be responsible for maintenance and upkeep, landscaping, lawn services and other fees associated with maintaining a home. You will also be responsible for all real estate taxes and government fees; check with the realtor and a financial advisor to get an estimate on what this may be.

If you are considering to get a loan, remember that some lenders might package some of these maintenance fees into your loan. Give all the information you got from your realtor to your loan officer and inform him/her of your budget to acquire a loan that will fit your needs.

Any house, whether it is a single-family home, a condo or a mobile home, has several implicit ownership and maintenance costs. When you’re searching for the right fit, consider making a checklist or worksheet that lists all of the different home options and related fees. Compare and contrast the costs for each house by pitting them side by side with the use of a simple table or chart. Practicing this will help you arrive at an excellent decision.

Popularity: 22% [?]

Most first time home buyers in Minnesota find it both practical and interesting to have a ‘new’ house for a number of reasons: a new space to raise your family, brand new amenities and home features, and the fact that you need not to worry about costs on maintenance or renovation in the first year.

On one side though, new properties can be more costly compared to an existing one, not to mention the level of uncertainty you might be facing as a newcomer in a whole new community.

Comparing the strengths and limitations of each scenario helps in coming up with the best decision for your home buying; the following are questions you must keep in mind when you begin finding your new home

1. How much extra are you willing to pay for a new home? Brand new homes in Minnesota are priced at a premium because of the newness factor; youll be the first person to use the bathroom and kitchen appliances, will be walking into freshly carpeted rooms, and making the most of the freshly painted walls.

2. How important is resale value to you? Existing Minnesota homes for sale can have slower appreciation than newly-constructed ones, as explicated by Ilyce Glink (writer of the book 100 Questions Every First-Time Home Buyer Should Ask). If you are planning on selling your home in the very near future, a brand new home may have a higher market value shortly after you move in, making it easier to sell the home for a profit.

3. Are you willing to adapt to the neighborhood? New home construction developments can grow at a rapid pace, and if youre one of the first few homeowners in the area, you wont have a strong idea of what the neighborhood is really like until more people move in.Two important factors necessary in a household of small children or elderly are safety and security, you can discover your options to ensure that your house is safe and secure all the time.

4. Are you willing to invest your resources for home renovation? Homes that are existing can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. If youre looking for a long-term investment that can generate a high profit in a short period of time, buying a fixer upper may be your best home buying strategy.

5. Are you looking for an investment or a primary residence? Most beginning homebuyers want investment properties that they can soon turn into a profitable business. However, older and mature homebuyers prefer primary residence mainly for purposes of settling down or establishing themselves in the neighborhood. Still, the best thing to do is to weigh your short term and long term goals if you want to make the most out of your home.

Based from your goals (both longterm and short term) and the amount of money you are willing to shed off your pocket – thats when you decide to have either a new or existing home. These questions may all be helpful as you pick the best option suited to your budget and future plan.

Popularity: 19% [?]

I bought an apartment complex investing program by Monica Main last month after reading the review on Squidoo. I have been looking for a way to get started with investing in apartment buildings for about a year. Last month when searching for apartment investing I found the Monica Main Review on squidoo. After reading about her program I became very interested in giving it a try myself.

I didnt know what to think about her prison record from options violations. Her program does come with a 60 day money back guarantee though. There are a mixture of good and bad reviews and raves about Monica. It seems like people either love Monica or hate her from the reviews. The last thing I wanted was to fall for some kind of Monica Main Scam and lose money. I figured with a 60 day money back guarantee and my credit card protection I would be fine.

Her program was much like I expected from the reviews and helpful~{Much as I expected from the reviews her program was a lot like I had hoped for}~I had hoped from the riews to get a good value and I sure did}~{Her program was much like I expected from the reviews and helpful}~{Much as I expected from the reviews her program was a lot like I had hoped for}~I had hoped from the riews to get a good value and I sure did}. With well over 300 pages her program is in depth and insightful. Unlike most of the programs I have bought before on real estate the program is very applicable. There are not old out dated methods in her program.

I am on track to buy my first property this year. Monica has multiple methods in which you can use to aquire property. She also does not assume her customers will know everything. She goes to great lengths to make her program in depth and explain things. She has a clear and easy to read program on apartment investing. I would very much like to meet Monica one day. I hope to buy mostly property with over 100 units. I have yet to get government grants though. I have used her letter method and got sellers to call me. They have been very friendly and willing to work with me too.

Popularity: 28% [?]

When one looks at the historical gold prices, its not unrealistic to predict that gold could reach as high as $5000 per ounce. With the global inflation on the horizon, central banks and investor demand for gold rising and a currency crisis looming, gold prices are poised to reach record levels. See the following article from Money Morning for more on this.

gold outlook
Let me get right to the point. Gold’s going to $5,000 an ounce.

I know that sounds preposterous to most people. In fact, some of you probably think I’m crazy.

But for a whole host of reasons, $5,000 may well end up being a conservative estimate.

So before you start posting comments that I’ve gone bonkers, hear me out…

In 2001, gold traded as low as $255 an ounce. Within eight years, its price had quadrupled to more than $1,100 an ounce. How many investors thought that was possible, or even likely? Probably not very many.

Yet, it happened.

What’s more, since hitting its secular bottom back in 2001, gold has posted a positive return in every calendar year. So far, the current bull market has been pretty orderly.

During the past 10 years, gold has indeed become the trade of the decade, beating out commodities, oil, high-grade U.S. corporate bonds, U.S. Treasuries, and yes, U.S. stocks.

A crisp $100 bill invested 10 years ago would today be worth more than $400 in gold, $357 in commodities (as measured by the S&P GSCI Enhanced Total Return Index), $268 in oil, $190 in corporate bonds or U.S. Treasuries, and only $90 in U.S. stocks.

That’s right: We’re talking about a $10 loss in U.S. stocks over 10 years. Ouch.

Meanwhile, gold has embarked upon a secular upward trend that is far from over. If the 1970′s are any indication, gold’s going much, much higher from here.

When U.S. President Richard M. Nixon opted to close the gold window in August 1971, the yellow metal had already risen from its fixed price of $35 an ounce to $42 an ounce. By the time gold peaked in 1980, it had risen to $850, rewarding early investors with a 2,400% return. My guess is that any such forecast in 1970 would probably have been met with the same kind of ridicule I expect that my current projection could attract.

Granted, there’s no guarantee that we’re about to duplicate the 1970s. (I could certainly do without the disco, bell bottoms and leisure suits). But a s Mark Twain once noted: “History does not repeat itself, but it often rhymes.”

And that could mean even sweeter returns for gold investors this time around.

In fact, let’s crunch a few numbers – just for fun.

Why $5,000 an Ounce Gold Isn’t Out of Bounds

To start with, let’s take the 1980 peak price of gold – $850 – and adjust it for inflation. That would take the price of gold to $2,400 in present-day terms.

Better still, let’s take the 2,400% gain that gold experienced during the 1970s and translate it into present-day terms. From the 2001 low of $255 an ounce, a 2,400% gain would take the yellow metal all the way up to $6,120 an ounce, making my $5,000 price projection seem a lot more reasonable.

But these are just superficial price comparisons. If we look at what the fundamentals are telling us, it’s clear that gold at $1,100 is a long way from its eventual peak, meaning it still appears cheap.

So let’s take a closer look.

Five Fundamental Reasons Gold Will Soar

Gold Fundamental No. 1: You Can’t Ignore Inflation: The 2008 stock market panic sent stock and commodity prices – including the price of oil – into a tailspin. And that launched the big debate about whether inflation or deflation would ultimately carry the day. Keep in mind that since 2001 – under benign price inflation of roughly 2.5% – gold has managed to rise about 400%. Meanwhile, the U.S. Federal Reserve is widely expected to keep short-term rates near zero through this year, leaving the door open for rampant inflation.

Meanwhile, quantitative easing to shorten the recession has caused America’s monetary base to explode. Starting in October 2008, during a very short span of only four months, the central bank doubled the U.S. money supply, going way beyond anything ever attempted in the nation’s history.

Worldwide, central banks have rolled out an unprecedented $12 trillion worth of stimulus programs, with most of the money still to be spent.

Make no mistake, inflation will win out over deflation.

Gold Fundamental No. 2: Investment Demand is Exploding: Large institutional investors – hedge funds and pension funds – are making large allocations to gold, as are individual investors.

The proliferation of gold-focused exchange-traded funds (ETFs) bears this out. The SPDR Gold Trust (NYSE: GLD), the world’s largest physically backed ETF with 1,100 tons of the lustrous metal, is the sixth-largest holder of gold bullion. Individual investors have never had an easier avenue for owning gold.

This isn’t just merely a U.S. manifestation. According to the World Gold Council, demand advanced 15% from the second quarter to the third last year.

Asia, with a population that exceeds 2.5 billion inhabitants and a long-standing cultural affinity for gold, is stoking global demand in a big way. China is overtly encouraging its citizens to buy gold and silver, while offering them gold-linked checking accounts. China is primed to overtake India as the world’s largest consumer of gold. A quickly developing middle class whose members are experiencing rapid escalations in disposable income are a major bullish driver for the price of gold.

Gold Fundamental No. 3: Central Banks are Becoming Net Buyers: India’s recent purchase of 200 tons of International Monetary Fund (IMF) gold was the likely impetus that pushed gold up over the $1,200 level in December. But more important is the sea change that has seen central banks morph from net sellers into net buyers of gold. BlackRock Inc. (NYSE: BLK), one of the world’s largest investment managers, said that 2009 was that turning point. If that was the case, it will have been the first time in 20 years, as central banks have been net sellers of gold since 1988.

Gold Fundamental No. 4: A Currency Crisis is Looming: The “PIGS” – Portugal, Italy, Greece and Spain (or “PIIGS,” if you want to include Ireland) – aren’t in very good fiscal shape. And they aren’t alone. Iceland has already gone over the edge. The United States, the United Kingdom, and countless other economies are struggling. And that reality has ignited a crisis of confidence about fiat currencies in the minds of many investors. Money is nothing more than paper and ink, backed by the full faith and credit of the issuer. When investors find that their faith in the issuer is shaken, the value of that currency erodes. Additional sovereign-debt downgrades from ratings agencies are but one potential trigger of a currency crisis. Under such conditions, gold – the ultimate store of value, and the oldest existing form of money on earth – will soar as investors seek to protect their purchasing power.

Gold Fundamental No. 5: We’ve Yet to Reach the Mania Stage: As we’ve outlined before, the gold bubble that takes prices to all-time-record levels will inflate in three distinct stages. This process will start with currency devaluations in Stage One, will be fueled by growing investment demand in Stage Two and will experience its stratospheric ascent in Stage Three, the mania phase of this evolution.

Make no mistake, the $5,000 price point will most likely be reached in this third and final phase. The price of gold will behave like it is strapped to a jet pack. And today’s market prices will be dwarfed by the levels gold prices will ultimately achieve.

Keep in mind, the entire gold industry has an aggregate market capitalization (value) below that of Wal-Mart Stores Inc. (NYSE: WMT) alone (currently about $210 billion). So as the crowd piles in, the “big money” to be made will lie with gold explorers and producers, where 1,000% returns will not be uncommon, even from today’s prices.

All these fundamentals underscore that gold prices have plenty of room to run from here.

And since I expect gold will eventually reach the $5,000 range, that leaves plenty of room for investors to profit by entering at current levels.

It’s Time to Make Your Move

Everyone needs some exposure to gold in their portfolios, no matter their age or risk tolerance. Owning some physical coins or bars makes sense, but it’s complicated to do inside most retirement accounts.

That’s why the explorers and producers of the gold sector promise the biggest payoffs. Although production costs will rise, as gold prices rise, profit margins are sure to expand even faster. Once cocktail-party conversations turn to gold, for any one of the reasons I’ve outlined, gold stocks will erupt and then streak for record highs.

When will this happen? I think it will take a few years. But with bubbles, or speculative frenzies, one never knows. Just this week, in fact, Robert R. McEwen, the chairman and chief executive officer of U.S Gold Corp. (AMEX: UXG), predicted that gold could more than quadruple to hit the $5,000 level by 2012. Some experts have labeled this expected move as a looming “superspike.”

When this happens, gold is likely to create a whole new generation of millionaires, and even a few new billionaires. Despite the mania stage being several years away, the wise investor recognizes both the importance and the potential of investing in gold.

I have no doubt that today’s $1,100 gold price level will eventually, in hindsight, look like an outrageous bargain.

My advice: If you own gold and gold shares, hang onto them and buy more on dips. If you don’t, what on earth are you waiting for?

This article has been republished from Money Morning. You can also view this article at Money Morning, an investment news and analysis site.

Popularity: 13% [?]