Experience International recommends their clients base their property purchasing decisions when looking for property for sale abroad based on the following 5 key principles:

• Credibility
• Ease of Purchase
• Security
• ROI
• Exit Strategy

These stringent principles should be used on every property to ensure it is priced correctly.This is even more important considering the current economic climate to ensure their capital invested provides maximum returns at minimal risk. Through investing in a property using these principles ensures you are buying the right property and at the right price.

Credibility
Credibility is the key to working out the current price of a property and is derived from: Location, Quality of build, Developer’s track record and other comparable projects.  By ensuring the credibility of the development gives strength and guidance on what the asking price should be.

Ease of Purchase
The purchase procedure in every country varies hugely.When reviewing the asking price of a property also ensure you are aware of all the extra costs included.operty.And can include: payment plan options, taxes, solicitors fees, notary fees, finance and mortgage costs as well as the ongoing costs once you have purchased such as maintenance and service charges. The availability of mortgages or other finance should also be fully checked.

Security
As a standard procedure Experience International carry out strict due diligence on every project that they sell, however we also advise all clients to do their own research.Varioua checks need to be done including: seller has clear land title, Correct Licenses for the country, correct planning permission, Developer, banks lending criteria, valuations, comparisons against other developments and security of your deposit.

ROI
The sustainable income achieved from your property during its life time will ultimately be its future value.Buying property during the current economic climate is a real buyers market.The yield and future capital value are vital in determining the success of your investment.

Exit Strategy
A lot of the time clients do not think about their exit strategy during their purchase decision.  The profit is always made when you buy a property not when you sell, this means purchase a property wisely. Knowledge of your exit strategy options is very important to understand such how you will sell, what market exists, how demand and supply trends are moving, your current discount to market value, long term rental market if holding along with risks, what you can do to mitigate these risks and the worst case scenario.

A Case study
Zambrone Villas in Italy is a newly completed property in Calabria development is the perfect example of a holiday home that would suit the typical British holiday maker.  

Its asking prices are from €127,500 (£113,570) which you get a 2 bed, 1 bath semi-detached villa, with terrace, garden and sea views.

Location – Zambrone is a stunning area of Calabria, situated on the coast and boasts one of the best beaches on the Costa Degli De and close to the marina and centre for restaurants, watersports and recreational activities.

Size – the total plot including internal, terrace and garden is 263.95 sqm (£430 per sqm).This is way under current market prices and comparables considering this property is located at coastal location which often carries a premium.

Quality – This completed development has been built to very high standards and is currently being offered at off plan prices.Every property has already been registered at the local Building Registry ensuring purchasing in this development is safe and secure.

Specifications – research properties available nearby.The Zambrone villas are a gated development with a communal swimming pool plus all villas have fantastic sea views.

It is a good idea to compare like for like, so be sure your comparable properties are of a similar specification in terms of the number of bedrooms, bathrooms, reception rooms, furniture included etc. 

Rental Income – When looking for a property to draw in a strong rental income many of the above points will be very important in assessing rental values.  Every factor of this purchase indicates a very strong rental potential.

If you are looking at an investment property you need to work out the potential the weekly rental rate (or monthly if targeting long term local market) and likely occupancy rate. Local rental companies are an obvious source although you cannot always be sure you are getting the full picture. The internet is now an excellent tool for assessing rental values and demand so use it well to ensure the investment stacks up and the comparables you are using for the price will also provide some rental data. So in the case of the Zambrone Villas in Italy then simply do a search for Calabria property for rent in similar locations with the same or similar features and specification.

We hope these tips help and that you find happiness and success with your overseas property purchase and investment.

No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is happening now.  But challenge always gives rise to opportunity, and opportunistic realestate.BryanEllis.comreal estate investors are rising to the challenge.

The real estate investing strategy du jour is called ‘Bulk REO Investing‘ and is a a real monster.

Consider with me, if you will, the fundamentals of the Bulk REO business.

Understanding of the foreclosure process is central to understanding Bulk REO investing.

A home owner who misses one or more mortgage payments is faced with an ever-increasing volume of threatening correspondence from their lender.  The official foreclosure proceedings begin subsequently, as directed by the lender.  ‘Pre foreclosure’ is the name given to the time between implementation of the foreclosure proceedings and the public auction.

To complete the foreclosure process, the property is auction to the public.  If there are no buyers for the property at auction, the property is returned to the lender.  The designation of ‘REO’ (Real Estate Owned) is then attached to the foreclosed property.

Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale.  However, REO properties are now frequently sold for far less than their ‘book value’.  But the price of receiving such great pricing is the need to purchase multiple REO properties (a ‘package’) rather than individual properties.

Qualified real estate investors are increasingly finding once-in-a-lifetime opportunities in these REO packages.  Bulk REO Investors are most successful when they have a well-established source of funding for their REO packages.  Some sources of funding for these transactions are:  personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds.  One excellent source of funding for Bulk REO Investment transactions can be found here:  Bulk REO Investment Training.

Many homeowners have heard of a “1031 Exchange,” but few understand the basics of what an exchange actually entails. Today I want to cover just a few of the basics of the process, as it can be an invaluable method of homeownership for investment homeowners.

What is a 1031 Exchange?

Put simply, it is the sale of one property in exchange for the purchase another property of similar value without the required payment of capital gains tax, all performed within a specific time frame. An example of when you might use a 1031 Exchange, as opposed to selling a home and purchasing a new one outright: you want to sell your current vacation home and purchase a new, similar one that has a few better features. You have not yet owned your current vacation home for two years, so you are subject to substantial capital gains taxes when you sell it. If you were to use a 1031 Exchange, you could “exchange” your current home for a new one and be relieved of the capital gains requirement. It is this difference between “exchanging” and not simply buying and selling which, in the end, allows you, the taxpayer, to qualify for a deferred gain treatment. In summary, 1031 exchanges are not taxable and sales are taxable with the IRS.

Important Rules of 1031 Exchange

1. The purchase price of the replaced “like kind” property must be greater than or equal to, the total net sales price of the relinquished, real estate, property.

2. All the equity received from the sale, of the relinquished real estate property, must be used to acquire the replacement, “like kind” property.

1031 Timelines and Rules

Identification period – the seller has exactly 45 days from the sale of the original property to identify other replacement property(s) that he proposes or wishes to buy.

Exchange period – the period during which the seller of the relinquished property must receive the replacement property. This period ends the due date for the person’s tax return for that taxable year in which the transfer of the relinquished property has occurred or exactly 180 days after the date on which the person transfers the property relinquished, whichever situation is earlier.

To request more information about 1031 exchange, please click here: 1031 Exchange and select the reports you would like!

There are very good reasons to obtain the services of a certified home inspector to inspect a home you are hoping to buy. The job of an inspector is to not only determine the condition of the house, but also give advice on areas of the home that can be improved upon. If there are any significant deficiencies discovered they can be used in further negotiations. Having an inspection done can assist to dodgeunwanted surprises after you purchase and/or be used to reduce the price down further. There are things you can inspect for yourself initially, but you need to have a keen eye and a proper checklist!

Having a prepared checklist with you during your walk-through of the home is essential. This will help you make a thorough inspection. It is possible to have over a hundred points included on a good checklist. Without this list, you would inevitably forget certain things as you walk through the property.

Organize your list by different areas of the home. Start outside. As you inspect the outside of the property you should be looking for items like railings that are unsafe, exterior wall cracks, damaged or leaning chimney, and roof damage to name a few. Make sure you take notes. As an example, if you see down spouts that are not draining far enough away from the home write it down as that information could become useful later on.

The inside of the house will be separated into areas on your list. Items to included on your list could be electrical, plumbing, basement floors and walls, heating and so on. It does not really matter that you are not an expert in various building trades. Just pay attention to areas that are obviously not what they should be. You can bring these up when you come back to the home for a thorough and professional home inspection.

Most home buyers will place a condition of home inspection on their offer to buy a property. This is a great way to protect your investment and it also gives you a bargaining chip to re-negotiate the selling price if the home inspection discovers significant issues. If you do lower your offer make sure it is reflective of the issues found. If the original selling price already took into account the properties problems you may not be able to lower your offer by much.

If the property you are interested looks like it may receive multiple offers you may need to have a pre-offer home inspection. This can be a issue for some purchasers since after spending money on an inspection they may still not get the home. But it can put you in a superior negotiating position if your offer now has less conditions. You can then finalize your deal more quickly if you offer is the one that is accepted.

Noticing that the roof is in need of attention or that the porch railing is loose does not need the eyes of a contracting expert. By doing an initial home inspection when visiting potential houses will help you in your quest for the perfect home. By inspecting the home yourself in the beginning you will be able to make a more informed and unbiased opinion based on facts rather than simply the decor. Your walk-through of the home should only be the beginning and you should consult an expert home inspector who can give you more information and a complete written report.

1031 Exchange Basics

When real estate is sold it is generaly a taxable event. The proceeds of that sales event need to be reported as federal income in the year the sale occurs. However, there a some cases where this general guildline is not applicable. The purpose of this article will be to explain one of these exceptions: the 1031 exchange.

The Outline of a 1031 Exchange

Per ferderal tax law, when real estate investments are exchanged under a very particular set of circumstances, taxes may be deferred. This deferral of taxes is permitted when the proceeds from the sale of real estate investments is used to purchase a property that is a like kind property as understood by federal tax law. Basically you put up for sale a real estate investment, transfer the proceeds to a qualified intermediary, then reinvest the proceeds into another real estate investment. If this is performed correctly, with the appropriate professional assistance taxes are deferred as long as the capital remains invested.

When you consider selling a property you have a few options:

1. Sell the property and pay the capital gains.
2. Sell your investment property, pay the capital gains tax, and then invest the the left over funds for you next real estate purchase.
3. Lastly, you can sell the property, work with a qualified intermediary, buy a like kind property and pay no capital gains.

Of course most of us will chose the third option if we knew the steps involved. It is highly recommended that you discuss your specific situation and needs with a experienced professional. It is fairly simple but you do need to follow the rules carefully or you may be subject to capital gains taxes. Follow the guildlines and you will be able to keep on realizing the benefits of your real estate investment without paying the capital gains should you move your investment. Of course this is quite beneficial for those who have had real estate investments appreciate considerable and would like to invest in other kinds of property.

Before you do 1031 exchanges you need to grasp the following:

1. Like Kind Property
2. Qualified Intermediaries
3. Tenancy in Common

We have looked over the specifics and more. Of course you will need to consult a professional in order to ensure you really are able to meet the terms of Section 1031 of the federal tax code.