My Florida Home Builder

A short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage.

I’d like to make you familiar with the hardship tests required to qualify a home owner for a short sale. This information will help you understand the market better as an investor and aid you in zeroing in on the best deals.

It goes without saying that lenders are unhappy with short sales because, like anyone else, they hate losing money! This means they consider a short sale a last resort, and they’re going to make sure the defaulting owner meets their hardship tests before anything else occurs. In this article, I describe the typical tests that must be met before a property qualifies for a short sale:

Bad Health Chronic or catastrophic health issues can have a huge negative impact on a family and its finances. With today’s ever-rising medical costs, it doesn’t take much time to empty a family’s bank account. When this happens, debts accumulate fast, and soon the borrower can’t meet the mortgage payment.

Death A spouse’s death, especially if they were the primary bread winner, can create havoc with a family’s finances, especially if they bought too much house to begin with.

Divorce No secret–divorce can be expensive! In some cases, when income drops dramatically, this requires that a jointly-owned home be sold.

Military Call Ups When soldiers are called up, they can take a big hit in terms of income, especially if they’re required for long tours of duty. Note: Lenders consider this a true hardship since it’s out of the control of the borrower and in service of the country.

Job Transfer In some cases, an employer transfers a borrower to another area and his or salary drops instead of increasing. If the owner is unable to sell or rent the property, then the hardship test is met.

Disability When a borrower suffers an injury or disease severe enough to cripple or end income, then, often, he or she can’t meet the mortgage payments, and the property is taken back.

Job Loss When borrowers lose their jobs due to downsizing, company closings, or other factors, they’re often unable to meet mortgage payments because most haven’t saved enough to cover expenses.

Additional Factors Beyond the standards listed above, there are sometimes other factors that create a short sale situation.

One factor is that a property was bought at an inflated price. In the meantime, the market has dropped dramatically due to various economic conditions.

Another factor occurs when a property has been refinanced at, for example, 125% of value, and that value was based on an over-inflated property appraisal report. Then, the area in which the home is located takes a severe economic hit, dramatically dropping property values.

A third factor happens when due to economic conditions (local or national) beyond the owner’s control, the home’s value drops to a value below the loan balance.

A fourth factor concerns the “as-is condition of the property. Sometimes, properties deteriorate almost beyond repair, making it impossible for the lender to put it back into resale condition.

A final factor prompting a short sale is when the purchase price of the home is more than the lender is able to sell the property for after foreclosure.

To conclude, short sales are an unhappy time for anyone for obvious reasons–except the knowledgeable investor. However, remember that short sale opportunities don’t occur all that often when compared to other types of investments. Yes, you can pick up some wonderful bargains, but you will definitely have to invest more “sweat equity” in terms of time and patience than, for example, foreclosures, rehabs, and other forms of deals.

Key Point: Be completely familiar with the entire short sale process before engaging in this market.

Spain has many beautiful areas and one of most beautiful cities is Almeria cocooned in the coastline. Sunshine fills the sky during the day with the nights filled with activities. For most Almeria is a perfect spot to take their vacation, but many of those visitors have decided to relocate to Almeria making it their new and permanent home.

The last ten years has shown popularity for Almeria, which has caused the property values to increase exponentially. One of the main reasons for Almeria becoming so popular is the tourists who have discovered the secrets hidden in Almeria as well as the potential investors. Word has followed tourists home to be spread throughout and investors have found the hidden potential. Travellers from the UK and other European countries have decided Almeria is the top place to visit, a must that shouldn’t be missed.

Almeria has plenty to enjoy from the authentic Spanish homes, food, and culture to the coastline resorts. It is a quaint town that has been influenced by the modern. It is such an interesting mix of culture and heritage that one can spend days trying to understand the underlying juxtaposition. The Almeria residents have kept their culture alive even with the culture influences of the outside world.

The decision to move to Almeria as a permanent resident can be difficult, but it is a perfect financial decision. The property values are still priced at a reasonable cost to which you will have a return on any investment. Young families and other residents researching Almeria to live with find the investment is perfect and there is a range of property types. There is something in Almeria for every potential newcomer.

Property such as farmhouses, villas, apartments, and beachfront condos are all available. There are also a number of land parcels offered. A buyer interested in their dream home can custom build rather than buy something prebuilt. The home can be built for a fraction of the cost in other destinations.

Property prices are very wide in range with 50,000 to 200,000 being the most sought range. The ranges are dependent on the location as well as the budget of those relocating to the area. There are various fees and associated costs to purchasing in Almeria, however these fees will be seen anywhere. It is a good policy to use a local lawyer for the transaction or a real estate professional to help during the process.

The professionals are familiar with Almeria as well as the purchase transactions required. The added benefit of speaking the language can help you speak with the sellers and other individuals involved in order to make the process less of a problem. The skills of the professionals allow for them to seek out information for you that is in your interests rather than others.

Almeria, Spain has much to offer all who decide to make a new home here. Whether it is a young family looking to move abroad or an older couple wanting to spend their retirement days under the warm sunshine, this is the perfect place to make dreams a reality.

A short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Here’s an example of such a situation:

Assume that “Joe”, a home owner, has debt on a house that’s greater than the amount for which the property can be sold. In fact, Joe has an unpaid loan balance of $140,000; however, the property will only sell for $120,000.

Obviously, this is terrible situation for Joe, but it’s also bad for the lenders. They’re losing money! So, to keep their losses down, the lenders are willing to accept less than the total amount due.

So, in this situation, the lender accepts that $125,000 as full payment from an investor or other buyer. This amount is clearly “short” of the full $145,000 payment. And that’s where the term “short sale” comes from.

At this point, you may be wondering, “Why in the world would a lender consider a short sale?” Well, there are many reasons often related to “hardship cases”; e.g., the homeowner has permanent injuries; financial insolvency; convictions; job layoffs; military call ups, etc. In such cases, lenders are willing to consider a short sale as part of their “loss mitigation” policy.

However, lenders don’t go into business to lose money, so they consider short sales a last resort! Foreclosures can be a better option for them. So, as an investor, should you consider short sales as a money-making opportunity?

The answer is “Yes” if you’re an experienced investor. If you’re a beginner, stay away until you’ve gained enough knowledge to work successfully with lenders. If possible, find a mentor to guide you through short sale deals.

Good deals are available in this market, but short sales are definitely not the ticket to “instant wealth” as some gurus noisily proclaim. Also, these gurus usually forget to mention that short sale transactions can be very difficult to execute (compared to conventional deals). I describe some of the complications you have to deal with below.

Short Sales and Their Complications Several elements are involved in short sale transactions, and that multiplies the complications you have to master in order to achieve success in this market.

First, there are the loan mitigation policies of the lender and third-party investors. These policies (and the attitudes of the lenders) aren’t always easy to deal with. You have to both master the details of the policies and master the “politics” of dealing with lenders in the loss mitigation department.

Factor 2: the property’s as-is value compared with the as-repaired expenses. You have to do full due diligence to make sure a short sale purchase will make a profit after the expense of “rehabbing” it.

The third factor concerns approval for short sale. It needs to come from the investor who’s actually the owner of the loan. This can lead to more complications as you may need to work with several people involved in the sale of the property.

The fourth factor, depending on economic conditions, is that investors can flood into the market, increasing competition.

So, how can you determine if a short sale is worth pursuing? Here are the general steps to follow in order to make that determination

Short Sales-General Steps to Follow The steps described below occur in most short sale transactions. They may vary, depending on your area.

Step 1 Identify potential short sale properties (e.g., contact a listing agent, check the public records, etc.).

Step 2 Check the lender’s loss mitigation policy. For example, if they deal with short sales on a fairly regular basis, they’re a good choice. If, on the other hand, they seldom or never accept short sale offers, don’t waste your time.

Step 3 Determine the number of liens recorded against the property and the total amount of money in those liens.

Step 4 Determine the borrower’s present financial condition.

Step 5 Analyze the type of loan that’s in default and its current status.

Step 6 Determine both the property’s as-is market value and its as-repaired value.

Step 7 Analyze current real estate market conditions.

Specific Steps to Take In a Short Step Situation Once you determine a short sale is worth pursuing, then you’ll need to take additional steps.

* Contact the homeowner and analyze their financial condition. * Do due diligence on the property’s condition. * If your analysis determines that both the financial and property condition are suitable, ask the homeowner to give you written authorization to contact the lender’s loan loss mitigation department. * Contact the decision-maker in the loan loss-mitigation department of the lender and give him or her with a copy of the authorization signed by the homeowner. * Discuss the short sale and ask him or her to send the appropriate short-sale documents to the homeowner. * Instruct the homeowner to gather all documentation in order to prove financial hardship. * Get repair cost estimates from a minimum of three licensed home improvement contractors. * Determine the value of three similar neighborhood properties sold in the last six months (a comparable value study). * Return the short sale proposal to the lender’s decision-maker. It should include a signed purchase agreement for a percentage less than the amount owed to the lender; e.g., 20%, 30% less, etc. * At this point, the lender’s decision-maker reviews your proposal and orders a BPO (”broker’s price opinion”) to determine the property’s as-is and as-repaired values. The BPO is normally a realtor giving his or her opinion on the property. You’ll want to meet with this realtor and influence his or her opinion as much as possible. It’s perhaps the most critical aspect of getting a short sale offer accepted and closing the deal! * The decision-maker accepts your proposal or rejects it. * If the decision-maker believes a short sale is appropriate, he or she makes a counteroffer. * You accept or reject the counteroffer. * In the event you accept the counteroffer, you close on the transaction within 30 days.

Additional Points Always remember that all short sales are cash transactions; therefore, you’ll need to have cash on hand and verifiable proof that you have that money. If you don’t, lenders will not do business with you.

In addition, keep in mind that short sales can’t be made to relatives, family members, or close friends of the homeowner. If a lender finds out after the sale that, say, the homeowner’s sister bought the property, then that lender can sue to have the sale overturned.

Key Idea: Short sale transactions are not for amateurs; be fully knowledgeable, experienced, and professional before approaching the loss-mitigation departments of lenders in this market.

The most basic of real estate strategies is “flipping.” It’s basic because it involves the simple process of buying a property, fixing it up, waiting for a short time, and then re-selling it for a fast profit. This is called “rehabbing.” A variation is to “wholesale” the property. In other words, you buy only the contract and then immediately sell it to another investor without getting involved in any rehabbing.

Flipping is essentially a speculative strategy. Investors bet that the market value of a property will rise to the point at which they can make a quick profit before they close on the deal.

With flipping, there’s the potential for big profits; however, there’s also the potential for big losses. This article looks at the pros and cons in turn so you have both sides of the picture.

The Upsides The first–and primary–upside is investing a very small amount of money for substantial gains. Here’s a rehabbing example to illustrate this point: * Let’s assume you put down $12,500 (5%) on a $250,000 house. * Then, you spend $5,000 and 60 days fixing it up and another $3,500 in payments. * So, your cash investment equals $21,000. * If you then sell the house for an $80,000 profit, the return on your investment is a great one. For that investment and two months’ worth of time and money, you’ve made $59,000.

A second benefit of this approach is that you can do flipping full-time or part time. The part-time option can be a good way to work your way into real estate investment because you learn the rules as you go along.

As I mentioned earlier, flipping is the most basic of all real estate strategies, and that means it’s the easiest to learn. This leads to the third advantage: You don’t have to be a real estate “genius” to get started in the field. Flipping is the simplest strategy to master.

The Cons of Flipping To be blunt, the risks of flipping can be considerable. First, if you don’t stay on top of things, the cost of renovations, mortgages and time can exceed your profit margin. You can lose money instead of making it!

The second downside is that there’s the chance that too many speculators can get into the market. If that happens, prices can drop very quickly, and there goes your profit!

Third, if you fail to do thorough due diligence, it can cost you a lot of money. Hidden property problems can turn what appeared to be a good deal into a nightmare. Leaky plumbing, faulty wiring, roof problems, termite damage, etc.-they can all cost you dearly.

The fourth downside is that if you don’t flip a property fast enough, a tax audit may result By that, I mean that if the money made off the flip doesn’t immediately roll into a similar investment (another house flip), then the profit may be subject to a capital gains tax.

Finally, in some cases, you be required to pay a realtor’s commission.

Types of Flippers There are three basic types of flippers:

Bird dogs or “scouts” This is often a strategy beginning investors follow to get into the real estate business. As the name indicates, the bird dog’s job is to scout for potential deals and then sell information on those deals to investors. Investors pay bird dogs a fee for each deal that’s closed. These fees can range from $250 to $1,000 or more, depending on the price of the property and its potential. The downside of being a scout is that you make the least amount of money in comparison to dealers and retailers.

Dealers Often called “wholesalers”, the strategy of dealers is to locate bargain properties, get control of the contracts, and then do one of two things. They can close on the properties and sell them outright; or, they can simply sell the contracts to other investors. For dealers, there’s considerable profit potential, no hassle with tenants, and no improvement costs.

Retailers Another name for these investors is “rehabbers.” They buy a property at a wholesale price, improve it, and then sell it for full retail price to buyers. This option has the greatest profit potential, but also the big risks I mentioned earlier.

Guidelines for Successful Flipping Guideline 1: Know your market There are several simple but effective methods you can use to learn your market. One is to drive the neighborhoods you’re interested in to find out what types of homes are selling well. Nothing beats seeing properties with your own eyes to get a true sense of value. Also, you can work with a realtor, if necessary, to find out the comparable worth of your targeted properties. But, be sure to dig deeper to find out everything you can about a market–property taxes, crime rates, quality of the school systems, etc. Knowledge is definitely power in the real estate business; the more you know, the better prepared you’ll be to spot good flipping deals because your radar will be well-tuned.

Guideline 2: Plan carefully before entering the market Diving into the flipping market without a plan is like trying to swim the ocean without a life jacket; it’s a recipe for a financial drowning. A better idea is to learn the basics and study the market carefully before dipping your toes in the water. To put it another way, prepare yourself for success. Once you enter the market, evaluate each property carefully and objectively to see how much work it needs in order to make it a great value for you and for any potential buyer.

Guideline 3: Put together an informal team Unless you have to ability to clone yourself, you can’t be everywhere at once, and you can’t know everything. That’s why you need an informal team to support your investment efforts. The team can supply the knowledge and experience you lack. Think of it as multiplying yourself in order to achieve maximum efficiency, effectiveness, and profitability. So, it’s crucial to build an informal support team of realtors, property inspectors, contractors, tax accountants, attorneys, etc. Also, be sure to choose the best possible people for your team. You want advice from experienced and reliable people, not amateurs or incompetents.

Guideline 4: Prepare to encounter problems It’s a certain guarantee that you’ll encounter problems when dealing with the flipping of properties. You can’t always prevent these problems, but you can prepare to handle them in the best way possible. That means setting up a financial reserve. So, be sure to save up enough money to absorb the expense of unexpected problems.

Guideline 5: Think long range There may come a time when you get hold of a property and then find you can’t flip it right away. If that’s the case, remember the basic rule that real estate investments perform well over time. So, if you can’t sell the property immediately, the options are to live in it yourself or rent it out to others.

The Flipping Process The process of flipping can vary from region to region within the country, but here’s a general description of the method so you can familiarize yourself with it:

Step 1: Determine the markets you’re interested in.

Step 2: Establish a clear goal. Know what type of flipper you want to be-a scout, a dealer, or a retailer.

Step 3: Put your informal team together.

Step 4: Identify investors and then seek out the properties they want to buy.

Step 5: Do your research by: * Reading newspaper ads * Attending real estate investment club meetings * Attending foreclosure auctions, tax sales, trustee sales, etc. * Touring neighborhoods. * Looking within a 10 to 20 mile radius of your home. * Seeking out vacant houses, houses in need of fixing up, and houses with at least 50% equity. * Contacting owners, talking with neighbors. * Checking sources (county court house, tax offices, etc.) for code violations, divorces, probate, evictions, bankruptcy, criminal acts, out-of-state owners and liens or judgments for possible leads. * Keeping track of all opportunities through voice mail services, computer tracking software, etc. * Networking with other investors. * Understanding all agreements and contracts down to the last detail!

Key Concept: Gather as much information and knowledge as you can before you entering into flipping deals; it’s a simple market, but not one for the uninformed!

With home foreclosures on the rise, those with money just sitting earning pennies in a Checkbook IRA account can put their money to work for them. Why is now a great time to be investing in the foreclosure market? There are three reasons.

Self-Directed IRA LLC / Checkbook IRA: 3 Reasons to Invest in Foreclosures Now

Buy Low/Sell High: If you’re looking for the proverbial good deal, now is the best time to find one. Good deals, or buying a property with enough equity to sell it for a profit, are plentiful right now. So, one of the most difficult parts of making money in foreclosures is taken care of.

Why are so many foreclosures happening right now? Actually, two reasons: a recession and adjustable rate mortgages (ARMs). As ARMs adjust up and more people lose their jobs, more lose their homes. This makes homeowners and/or banks more negotiable on price.

Banks Don’t Want to Be Property Mangers: Banks are not in the business of managing property. They want homeowners to do that. So, as they become inundated with more and more foreclosures, they’re doing everything they can to sell them as fast as possible. Why don’t’ banks want to be landlords?

Because they usually wind up losing money - in two different ways. First, there’s nobody paying the mortgage when house is sitting empty. This cost banks. Secondly, when a house is in foreclosure, the bank is responsible for keeping it up until it sells. This means hiring contractors to mow the lawn, fix broken windows, clean up and haul away traffic from previous owners, etc. So, they’re quite eager to sell, sell, sell.

Long-Term Gain: Using your Self-Directed IRA LLC / Checkbook IRA account funds to purchase foreclosures now will pay off in the long run. Especially if you buy and hold properties. Real estate is a cyclical market. Meaning, what goes down will eventually go up again. When the market starts to sizzle again, you’ll be perfectly situated to take advantage of the smart investments you make now.

As investors, it’s vital for us to make the “highest and best use” of our properties. In a global real estate sense, this phrase is defined as the use of a property that makes it the most valuable to a buyer or the market.

From the point of view of an individual investor, it means one single use will result in maximum profitability through the best and most efficient use of the property. So, it definitely pays you to understand the various ways in which to change land use to get that maximum profitability. In this article, I’ll describe several methods for achieving this objective.

Method #1: Assemblage This refers to the combining of two or more adjoining lots into one larger tract to increase their total value (”plottage”). You can more efficiently develop the larger tract and increase its value through redevelopment. For example, you might buy several small tracts and combine them into one large lot in order to build a multi-unit apartment building or a commercial or industrial structure.

Method 2: Lot Splitting This is the opposite strategy of assemblage. You take a large tract of land and divide it into several smaller tracts. The result is that you can receive a much larger income than you would if you kept the land as-is. One common technique is to split a large tract into several tracts and put small multi-unit (1-4) residential properties on each. This way, you get more favorable financing as well as income.

Method 3: Use Conversion This is simply taking the use of a property and converting it to another use. An example is buying an old factory, renovating it, and then converting it into office space. Ideally, you get the original property at a low price and reap the rewards of long-term income and appreciation.

Method #4: Zoning This can be a very profitable strategy in areas where there are expanding populations. For example, assume your city is growing outward toward agricultural land, and you’ve identified this land as being in the path of progress. This means the land becomes less productive in real estate terms; that is, it now doesn’t have its highest and best use. So, you buy the farm land and then get it zoned for residential, commercial or industrial use. Since it’s in the path of progress, the land you purchased should grow in value, assuming you’ve done due diligence in the proper fashion.

The Disadvantages of Changing Land Use Often, the biggest obstacle to changing land use is dealing with local government organizations (planning departments) and local communities. Sometimes you run into communities where there’s an anti-development attitude. If that’s the case, you could have an expensive legal battle on your hands when seeking to change land use. The solution is to do your upfront research on the local conditions and attitudes. Find out if the planning commission and the community are pro-development or anti-development, and then make a decision as to whether or not to proceed.

Another potential disadvantage can be your own ignorance. Here’s an example: You buy a piece of land in order to attract commercial businesses and later find out it’s zoned only for residential use. The solution, of course, is to do your research and do it carefully so you avoid this situation altogether.

To conclude, when you’re involved in commercial real estate investment, the changing of land use can be a valuable tool for increasing property value and income. The key is to take the temperature of planning commissions and communities in order to determine their attitudes toward development before you ever proceed with your plans. If the attitude is pro-development, then you’ll have relatively smooth sailing. If it’s anti-development, you’ll have to decide if it’s worth the time and expense to fight the battle that will likely ensue. As always, consider the situation in an objective manner.

Key Point: Keep a sharp eye out for changes in land use that can increase the value of your properties.

One of the most pleasing decorating makeovers you can carry out is that of remodeling the master bedroom because this is a room where people spend a great deal of their lives but it can easily be more than just a place to sleep. In recent times, homeowners have seen the benefits of turning this room into more than just a room to sleep; for example, a reading room or just a place to relax. Of course, there is no reason why it cannot be given a sensual makeover in the same manner that the French and Italians have been doing for a long time; something that certain Western countries seem reluctant to do!

To do this requires the use of emotionally appealing colors that are more seductive like rouge or lipstick reds, subtle pinks or creamy peaches. Of course to improve upon this and enhance the atmosphere further you will need the subtle use of mirrors and candles along with some beautiful tropical plants; I am sure you can see the appeal to this already. More people prefer the master bedroom to be a place where they can relax with a good book whether on the bed or in a comfy chair placed near the bed or a window to provide views.

Be sure to provide enough light for reading, which can be done without having to flood the room with harsh reading lights by placing softer lighting throughout the room. Traditionally to achieve the best effect in a room for reading in you should look towards the softer shades of ivory, amber and slate blue. When you are remodeling you master bedroom to create a room which is more like a retreat, then beautiful throws, cushions (or pillows) and mirrors will achieve the desired look.

If your sanctuary is also a place where you intend to read then the addition of a comfortable chair and a reading lamp will be a simple matter. When remodeling a master bedroom this way, i.e. designed to create a place where you retreat from the world and unwind, it should provide feeling of total privacy which can be improved by displaying photos of friends, family, and places you love. The most comfortable colors for a sanctuary style room are darker shades like chocolate brown, deep greens and cobalt blues which help make the room feel cozy.

If you are determined to create a space that is purely self indulgent, then why not add a radio/cd system, television and traditional writing desk where you will be able to enjoy your own private little world, but this is obviously something that is dependant on available space. Even fridges are becoming more popular now for storing drinks but this really needs to be placed in a position where it will not disturb the effect you are trying to achieve. Remodeling your master bedroom may end a project that requires some compromise if there are two occupants that cannot agree on a particular them but many mentioned previously can be mixed and matched quite successfully together.

The prospect of buying a new home is both exciting and frightening at the same time. It is exciting in the sense that one is finally “free” of apartment payments, living at home, or any other distasteful situation. It can also be frightening, however, due to the simple fact that new potential home owners don’t always have all the facts necessary to make the transition into being a stable home owner.

If one is looking to buy a home, the best option is to usually go with a housing agent. Such agents can assist first time home buyers by divulging information that other home buying veterans already know. Tips in negotiating prices, information on mortgages, loans, and a wide plethora of other topics are present that many new home owners aren’t familiar with.

Second to review is the selection. If a wide selection isn’t found in the local newspaper or ad listings, it is usually a good idea to check the Internet. Online resources will commonly scan, syndicated, and synchronize with local resources to give any potential home buyer as many listings as possible for their selected area. This doesn’t always work well with rural communities, but it can do wonders for suburban and urban life.

The next step in successfully obtaining a new home for the first time is to visit as many locations as possible from the selections that were made in the previous step. Visiting as many places as possible will give consumers an idea on how much the average house should cost, which houses are inflated in price, and which are better prices and a better deal in the long run.

After the first round of tours are conducted, it is important for home owners to narrow the selection and make a second round. This can help the decision factor by getting a visual experience of the house, the neighborhood, and of the surrounding businesses and utilities. A second tour around the selection of houses will also give consumers a better idea on what they need- not necessarily what they want and can do without.

Perhaps the biggest lesson to be learned from the entire ordeal is to plan ahead. This is also true for the fact that a potential home owner should consult a bank or lender with their finances before proceeding with a home purchase. It’s best to be cautionary in buying a new home rather than to get into debt troubles later on down the road. An agent can also help in this instance, as they know what needs to be done.

Final Thoughts

In the end, the process of buying a home for the first time can be scary, but it doesn’t have to be. Opting for a “first time buyer” agent can do potential home owners a world of good in obtaining their first home. In the end, the best tip to remember is to go over one’s options multiple times- and ask as many questions as possible before making any commitments.

To be perfectly frank, for most of my private investing career, I thought of real estate agents an obstacle to success. Yet, here I am advocating in this article that you enlist them as partners in your investment team. What changed my mind?

Well, one day I woke up and realized that real estate agents are not only a fact of life, but the best way to achieve investment success simply because of their knowledge and important place in the real estate community.

In terms of working with real estate agents, I have one ironclad rule for success: Only work with real estate agents who know what they’re doing! If you don’t, you’re wasting your time as an investor, not to mention that of the buyers and sellers.

Below, I give you seven guidelines for choosing the best Real Estate Agents to work with in any investment situation:

Guideline #1: Choose a Full-Time Professional Real Estate Agent Avoid part-time real estate agents out there wanting commissions. Most are either mediocrities or amateurs who check in when the market is hot and check out when it slows. A good way to weed these individuals out is by asking for their experience, qualifications, sales, etc. Then, go with the real estate agents who have a demonstrated record of excellence over time.

Guideline #2: Choose Specialists In an ideal world, you want a Real Estate Agent who specializes in your particular area of investment. So, if you specialize in, say, the single-family home market, seek out an agent who has a lot of experience and expertise in that area. Do the same for any market–multi-unit, commercial, retail, and/or the industrial sectors. By the way, don’t just accept a Real Estate Agent’s word that they’re an expert in a particular market. Ask for proof in terms of sales within your target market!

Guideline #3: Verify Real Estate Agent Credentials Check with your state online database and other sources to make sure the agent is fully licensed and has no citations, disciplinary actions, etc. on his or her record. If a real estate agent has ethics problems, you definitely don’t want them staining your reputation, even if it’s only by association.

Guideline #4: Ask For and Check Those References The gold standard in terms of proof of success can be found in satisfied customers. So, ask real estate agents for references from customers within your target market and geographical area. Then, contact those references to get a clear picture of a real estate agent’s reputation and business practices. Naturally, you’ll want to develop a relationship with real estate agents with good to excellent reputations for honesty and fair dealing. It’ll make the entire investment process a much smoother and more profitable one for you since you’ll be dealing with satisfied customers, not angry ones.

Guideline #5: Demand Good Communication Skills In any investment transaction, clear communication is the key to success. Seek out real estate agents who listen well to you and everyone else and who keep you informed and up-to-date on all transactions. And, don’t forget that clear communication is your responsibility as well. Make sure the real estate agents you choose fully understand your investment goals so they don’t waste time bringing properties to you that have little or nothing to do with those goals.

Guideline #6: Look For Real Estate Agents with Strong People and Negotiating Skills A Real Estate Agent can have all the experience in the world, but if they don’t relate well to people, they’re of no help to you and your investment deals. Make it a point to locate agents who are great at making everyone happy while moving people toward a deal with good negotiating skills. To find out about a Real Estate Agent’s negotiating skills, talk to former clients about how effectively the agent conducted bargaining sessions.

Guideline #7: Remember Your Own Responsibilities! Once you form relationships with great real estate agents, do your utmost to keep them on your team. Bring them good deals, not “ghost” deals that never materialize. After all, your reputation is on the line too, and you need it be a good one because that reputation will build a long-term and profitable investing career for you. real estate agents who know you’re a reliable and honest investor will make it a point to bring you deals that never show up on the MLS listings or in the newspapers!

Key Concept: Find the best real estate agents for your area of investment and cultivate great relationships with them. You’ll both profit!

In my wilder moments I sometimes tell people that I play golf. They may well conjure up images in their heads of Jack Nicklaus and myself laughing together over the round we just played, but the truth is that actually you’ll probably find me crying in a patch of overgrown wilderness with my club wrapped firmly round a sycamore and a score card that looks more like a selection of lottery numbers. Jack Nicklaus, on the other hand, who has never heard of me, is the renowned world champion golfer, and is quite good at it. I bet he’s never had an encounter with a sycamore and a patch of thistles.

When he’s not hitting birdies and eagles, Jack tends to also excel at designing golf courses, and he’s created quite a few. I just read somewhere that he has recently designed nine full courses for Polaris World. They’re all laid out nearby each other so that the lucky residents get to play through 162 holes. The article didn’t say how many sycamores there are on the course, but I’m pretty sure I’d fine most of them pretty quickly. Still, at least the lakes would be pretty to look at while wondering whether to risk diving in to find my ball. There is certainly something to be said for a lifestyle which involves living in luxurious Spanish properties, constantly bathed in sunshine, with enough golf to last a lifetime.

I wasn’t really thinking about overseas property myself, although I can’t say why. Like most people I think it’s just one of those things that other people do isn’t it? Those neighbours of yours that live two doors down and always seem to be off somewhere and even in the middle of winter they have deep rich tans that you pretend not to notice and secretly resent. They always seem happy too. Damn those neighbours. But what got me interested was the whole of idea of having nine new golf courses all nestled near each other. That sounds like any golfer’s heaven, whether your professional or an amateur. I class myself as an amateur personally. Some people don’t even think I have made it that far, but then everyone’s a critic.

This country isn’t quite like Spain, where apparently it rains mainly on the plains. In this country it rains mainly on the land, and as a result playing golf is a bit like water polo. You dress up in smart, sometimes oddball outfits, but at least clean. Unlike the television broadcasts of world class golfers playing in endless sunshine wearing t-shirts and sporting tans and big grins, playing golf over here is more like wading through mud and searching for your ball that has sunk to the bottom of another puddle.

So I have started thinking about the idea of moving to Spain and becoming a part of the lifestyle and culture we see advertised on television. I can’t just be me that thinks that the idea of walking down the steps from my stylish apartment, casually looking out to see to watch the cruise ships roll by whilst trying to decide which of the nine golf courses to play today, sounds like a good way to live life. What is also tempting me at the moment is that many of these overseas companies are offering free trips, so that you can see for yourself what it’s like. Apparently they’ll even let you play a round of golf. I feel less white just thinking about it.

Do you know what your house is worth? I had mine valued recently, and paid little attention to it. Then I saw one of those television adverts for overseas property with golf courses and sun, and couldn’t believe that the cheapest houses there were half the cost of my home, and for the price my house is worth I could get a grand villa! Imagine that - a grand villa in Spain with all that sun, a private balcony overlooking the mountains on one side and the blue ocean on the other, and 162 holes just crying out for me to try to sink a small white ball into them. And even more bunkers starting to get excited at the prospect of more company.

I know that the idea of moving there sounds too much like hassle, but then I keep looking out of my window at the gloom and grey, and think about how I get up in the morning. You know, I don’t even bother to open the curtains sometimes. There’s nothing much to look at except grey skies, gloomy faces and the rain dripping off the gutters onto the muddy patch that I laughably refer to as my garden. But I have an image in my head of how I would feel waking up in my own villa in Spain. From one window I would be able to look across at the ponderous mountains as they yawn their way towards the purple haze of the horizon, and in the other direction I would watch the yachts skip across the cheerful blue ocean. Apparently the sea is blue over there - imagine that, clear blue water on your doorstep that doesn’t mean you’ve been flooded.

I’m certainly very tempted to consider the idea of a free trip - after all, I have nothing to lose. I may even find that the more clement weather improves my golfing game. Perhaps I may even meet old Jack and challenge him to a round. The only thing that puts me off is the hassle, but then, it’s only once, and the satisfaction of having made it will be more than worth it. The adverts are certainly targeting this country a great deal, and it sounds as though they know what they’re doing. Like many people, I work from home which means that relocating means little more than moving all my gear. Except for my winter clothes; I won’t need them any more of course!