Valencia Land Grab Link To Sipps Warning Feng Shui In Real Estate Sales My Third Real Estate Investing Deal Another True Nothing Down Deal Motivated Sellers How To Find One
The leading residential firms in the Valencian Developers Association have been warned that British buyers, who currently account for one property sale in three in the Spanish province, have already established a clear link between the “land grab” controversy that required EU edicts to resolve earlier this year and the forthcoming SIPPs property pensions expected in April 2006, following UK taxation changes.
While strong EU intervention has outlawed “land grab” planning in Valencia, forcing the provincial government to change the laws and provide compensation, the British public remains wary of buying in some parts of the Costa Blanca, the upcoming Costa Azahar and along Costa Valencia itself where the Americas Cup is being staged.
This was the message brought by UK delegates to the extensive four day Feria Valencia Urbe Desarrollo 2005, at which scores of residential builders staged displays and attended the VIP luncheon of the Valencian Developers Association.Top table guest, Terry Walker of leading online specialists PropertyInSpain.Net said the so-called Valencian land grab activities remained firmly in the minds of many UK buyers and a strong link with the new SIPPs (self invested personal pensions) had been established in many cases.
He told the property chiefs: “Buyers using their pensions require maximum safeguards on the provenance of the properties they are being offered. They also have institutional trustees responsible for looking after SIPPs trusts who will be ultra careful with all investments.
“They and buyers know about the land grab scandal and are already making a link to possible purchase using the new freedoms brought about by SIPPs. Buyers need new legal assurances and to be welcomed into Valencia and its many property opportunities.”
Jose Luis Miguel Belanguer, President of Feria Valencia and director of Valencia-based developers, Grupo Onfre Miguel, said: “We know about the extensive land grab coverage in the UK media and wish to provide full legal assurance to new British buyers. We will invite them to come and live in Valencia and share the many benefits of being part of our community.”
Some leading Valencia developers are already marketing their new homes for offplan purchase using the Independent Legal Surety pioneered by PropertyInSpain.Net in which Anglo-Spanish legal firms check the developer and planning status of each new phase before it is tagged with a “Legal Surety” and displayed on the firm’s top ranked website.
This is provided free to buyers and can be reinforced if they optionally contract with the legal firm to act for them in any resultant purchase. The solicitors are also members of the British Law Society and carry the require professional indemnity. Any dispute can then be resolved more easily in the UK, especially important for SIPPs pension buying.
One major Valencian developer, Blauverd-Habitat released their biggest yet development, Cerezos de Finestrat, for the Feria Valencia, with the first 400 apartments, townhouses and villas already gaining the Legal Security tag. Their UK director, Jose Ivars said:” We are happy to provide all assurances on the legality of our properties, but it took some weeks to be able to comply with this Legal Surety. We have changed our sales contract to make it more acceptable to SIPPs buyers and we are launching in the UK as a special SIPPs-friendly development.
“PropertyInSpain.Net have taken many pre-launch reservations from British buyers with some of them wanting to switch their contracts into a SIPPs purchase when this is possible. We have added a new section in our brochures outlining the Legal Surety and it is being adopted by other developers,” he added.
Spanish Property News
Literally translated "Feng" means wind and "Shui" mean water. Deeply rooted in connection to nature, Feng Shui is the 4000 year old Chinese are of placement and philosophy that supports living in awareness and harmony with our surroundings.
As the awareness of Feng Shui increases, more real estate agents are being asked to show buyers homes with "good" Feng Shui. If a real estate agent has knowledge of this ancient and highly respected design philosophy will assists him/her to:
Increase the value, marketability, and emotional appeal of a home.
Build confidence with Feng Shui savvy buyers and sellers.
Provide solutions to remedy a home's Feng Shui energy challenges.
Build referrals by selling "Feng Shui friendly" homes that support the well being of your clients and their sphere of influence.
This section will explain the 5 Feng Shui tips for your references.
Tip 1 : Main Entrance
The main door is like the mouth for the house. It is the gateway between the world and the privacy of the home and air currents literally enter and exit at this point.
The positioning of a main door can determine the fortune or misfortune of the occupants. Therefore you must keep the entrance clear of any clutter to allow the energies to flow freely.
Make sure there is nothing in direct alignment with the door such as a tree or telegraph pole. To remedy this place a Bagua mirror over the door so it is reflecting the Sha Qi.
Avoid facing a dark, pokey room, an interior staircase, mirror, stove, sink, fireplace, the door of a toilet, laundry, bathroom or bedroom. To remedy this keep the doors closed or place a screen between the doors.
Tip 2 : Bedrooms
Bedrooms should be sacred spaces where an adult or child can retreat and regenerate. Most people spent roughly one third of their lives in their bedroom, so maintaining balance and serenity in this area is essential.
Tip 3 : Kitchen
In any case, it's better if you don't see the kitchen immediately upon entering the house, as this can portend digestive, nutritional, and eating problems. Having the kitchen at the entry point can also mean that guests will come over and eat and then leave immediately, and such a placement can also encourage the inhabitants to eat all the time.
Tip 4 : Windows
A house should have sufficient windows. Windows are in very important to allow sufficient light or pleasant views into the room.
Tip 5 : Dining & Living Room
Whenever possible the dining room should be separate from the living room. It is a social area for family members, thus it better to have as big as possible.
So with the above tips, you as a real estate agent when meet with a Feng Shui savvy buyer, you can use the above tips to talk with them, the chances to close the deal is high because the buyer see you as a knowledgeable in Feng Shui and the property you propose to them must be good in Feng Shui. And Feng Shui is a very good topic when come to a price negotiation with the sellers, agents with Feng Shui knowledge might be able to negotiate a better selling price for their buyers and close the sale.
My third deal as a real estate investor involved almost no money out of pocket for me at all. The home was in good shape and had only been built about 14 months earlier. The home is in a neighborhood where several builders had unsold homes on the street making it very difficult to sell a used home. The seller had an unusual motivation for wanting to be rid of the house: he wanted to forget an ex-girlfriend as he had bought the house to get married and for them to live there. The seller contacted me through an online lead site and looking over the deal I knew it was in an area that isn’t very good for retailing homes right now due to over building in the area. So what I did was offer to lease option the property from him. Like many sellers, the idea of a lease option doesn’t sound that enticing. Most sellers need all cash and have no equity. Well my seller had a little equity, didn’t need any walking money, and knew he couldn’t sell the home otherwise and had been trying for a few months with no luck.
After about a month the seller contacted me again about doing the deal. So we met at his house and signed a purchase and sales agreement, a memorandum of option, an option agreement for 72 months, a lease agreement with right to sublet and a seller’s disclosure. We agreed to a $125k purchase price and a $1038 rental payment. Other similar homes in the neighborhood were listed at $145k and this seemed like a reasonable deal to me. I agreed to start paying him rent as soon as I found a suitable tenant/buyer.
I paid to run an ad in the local paper which was my only expense. I had several interested people and took applications from a couple of prospects and selected the best applicant. We received a $3500 non refundable option fee towards the future purchase of the home at a price of $149k and a rent agreement for $1250 per month with $100 credit towards purchase for every on time payment with a 2 year agreement. With my tenant buyer we signed a purchase and sales agreement, a lease agreement, an option agreement, pet disclosure, and a couple of other papers. This is a pretty good deal as I have a decent tenant who can probably qualify for a mortgage within the 24 month time span we agreed upon giving me about a 50% chance they will buy at the end of the option period. I received a non refundable $3500 check up front against my back end profits which isn’t taxable until the option is exercised, as well as a $212 monthly rent profit. I expect to make close to $30k profit on this deal once my tenant buyer refinances and cashes me out.
What I did wrong on this deal was agree to pay the rent directly to the seller instead of having the checks made payable to the lender directly. On a positive note the deal is decently strong and I have good cash flow and if my tenant doesn’t buy I can easily put another tenant buyer in this property and collect another option fee as this is a desirable area.
Motivated sellers? My wife and I were trying to keep the renters happy, the rent coming in and the house repaired – while living 2100 miles away. You bet I was motivated. We just sold our house last month, and even got a good price, but I’ll tell you a secret. We would have sold the place for… well I don’t want to stress out the buyer if he reads this. Let’s just say we would have sold it for much less.
There’s your first clue on finding a motivated seller. If his property isn’t where he is, he’s probably ready to deal. How do you get this information? By asking. Talk to the real estate agent, the neighbors, and anyone else who might know something useful. Here are some other things to watch for that may indicate a motivated seller.
1. Relocation. If you hear that the seller is relocating for work, ask when he will be moving. He may already be worrying about those double payments.
2. Divorce. Divorce or relationship problems create many motivated sellers. Often a house payment needed both parties, and will have to be sold quickly.
3. Financial problems. A failing business, too much debt or other financial problems often force a sale. Find out if the owner is behind on payments.
4. Tenant problems. It is easy to get tired of being a landlord. It is also common to want to get out at any reasonable price.
5. Probate. If the house is in probate, and the heirs are all waiting to get their inheritance, they may be more interested in a quick sale than a great price.
6. Up-sizing or down-sizing. Owners moving into a larger or a smaller home may already have one in mind and need to sell quickly.
More Clues For Finding A Motivated Seller
Another way to find motivated sellers is to pay attention to the wording of ads in the classifieds. Statements like, “Need to sell,” “Must sell,” and “Will look at all offers,” are good indicators. “Must have a good job,” in a rental ad may indicate a landlord that is tired of tenants and ready to sell. Some other methods:
1. Find neglected properties. If they aren’t maintaining the property, they may be short on cash, tired of it, or out of town – all good motivators.
2. Use property tax rolls. Go to the county records, which are open to the public in most places. What you are looking for is properties that list an owner with an address far away. You could have found us this way, and bought our place for less than we got.
3. Use timing. Just before school starts, people are motivated to get their house sold so they can get their kids enrolled in the new school where they are moving. If an apartment building has been sitting there for sale for the whole winter, the owner may be tired of the bills and ready to get it sold fast.
The bottom line is to use your eyes and ears and look for the clues. Talking to people helps a lot. However you find your motivated sellers, the next step is to motivate them even more, by giving them what they want. Start by negotiating for a fast, easy closing for them – and a good price for you. That, however, is a topic for another article..
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