Michael Mergell

by Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

We all have been hearing about the new "Stimulus Package" that congress is "going" to pass, right. If you haven't you must never turn on your tv, radio or log onto the net. It seems that congress is clogged again with arguments between the two parties, separate agendas and a disagreement between what's best for the American people.

Three things need to be evaluated as most important. Jobs, Real Estate and Small Business. They all agree publicly that the housing or real estate market is at the heart of a recovery (as it has always been and has pulled us out in the past). I once read that for every one home sold 27 jobs are created. From real estate agents to title companies to movers to inspection companies to contractors to... and so on and so on.

It always blows me away that we even let these politicians decide such matters..business matters. Virtually all of them have Never been in business for themselves much less understand the very principle of making a profit.

So congress agree on something and do it quick. our wasting our time and our money. More on congress cut back suggestions from me to come, next time.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

by Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

Everyone moving to a new city or state faces important decisions about the best place to live. Where you buy a home really depends on what is essential to you - are you looking for a quiet place to retire, a place where your children can reach their educational goals, or a metropolis where you can enjoy fine dining and theater? Once you've decided on what you are looking for, you can choose the lifestyle and location that's right for you.

For the most affordable home prices, Indiana, Ohio, Texas, and even an area of New York called Tonawanda allow singles or families to buy a home for much less than you'd expect. Northbrook, in Ohio, is a Cincinnati suburb known for its charming character homes and laid-back living. With the average new home at around $85,000, Northbrook is quickly becoming one of the top places to live in America for both home buyers and those who want a great real estate investment.

Houston and some of the surrounding areas like Fort Bend County, which features living at it's best, and Missouri City, which has some of the best schools in Texas, are increasing in popularity. New homes with all of the modern amenities start at around $150,000, which is attractive to professionals who work at the nearby NASA or Boeing plants as well as retired vacationers interested in a second home. Missouri City is one of the top places to live in America because it offers gorgeous properties and modern condominiums for a fraction of the price home buyers would pay in almost any other U.S. location.

Tonawanda, New York, is a drastic departure from the multi-million condominiums and homes of Manhattan. You'll pay around $100,000 for a beautiful ranch-style home with three bedrooms in this city that runs along the Niagara River. Because of their low cost of living and high quality of lifestyle for homebuyers, these three cities are considered some of the top places to live in America.

Indianapolis'Metro areas have long been a location for making your family housing dollar stretch. Although Indianapolis has not seen the dramatic 10-20% increase in values yearly like once in Florida or California, its a good thing. Good in that Indy does'nt typically see those prices burst and float down to half price discount homes. Right know there are deals from $50-150k in Indianapolis that would make any homeowner or investor smile.

To many families with young children or college students, the quality of education is their utmost concern when relocating to a new city. For academic excellence, Houston, Texas has the top schools for gifted children, and those seeking a career in engineering or science. Houston is home to a lot of the best schools in Texas.

Florida attracts the artistically inclined with the respected Dreyfoos School of the Arts, while Little Rock Central High School in Arkansas has one of the highest percentages of graduating seniors in the country. For academics, Texas is definitely one of the top places to live in America: their public and private schools continuously make up the highest-ranked educational institutions in the country.

The top places to live in America for low crime rates are Honolulu, Hawaii, metro areas of New Jersey, and New England. These cities are considered very secure, have a respected police presence and year after year have some of the lowest violent and petty crime rates in the entire country. Residents of these towns have a lower risk of facing a violent crime than anywhere else, compared with high crime rate states such as Kansas, Miami and Arizona.

If it's the bustling city life you're after, consider Chicago or New York. The cost of living is higher for homes in these cities, but there are plenty of job opportunities for skilled workers in both, as well as top notch restaurants, theaters and sporting arenas. Chicago, which earned the spot of the top city to live in for 2007, is home to Wrigley Field, where fans can take in a Cubs game, while New York has the lights of Broadway as well as a number of tourist attractions and landmarks. If you've got money to spend - expect to pay around $350,000 for a small condominium in an up-and-coming area of Brooklyn - then New York could be the perfect place to settle.

Singles who are looking for love have the best chance of meeting that special someone in Durham, New Hampshire or in the University of Massachusetts town of Amherst Center. Both of these cities are considered to be the top places to live in America for singles activities. New Hampshire boasts a great art community as well as some legendary restaurants and pubs. Amherst Center is constantly alive with new students and long-term residents, and the cultural attractions and social activities for students make this town a haven for singles seeking a partner.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

by Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

Refinancing a mortgage loan basically means that the homeowner is changing mortgage payments and terms of the loan to new terms and monthly payments. Homeowners refinance mortgage loans for several reasons. Mortgage payments are one of the largest monthly expenses for any family. Reducing the payments gives extra cash to the homeowner to manage other expenses.
First and one of the best reasons could be to lower their monthly mortgage payments. Interest rates for home loans change all the times based on economy. If the mortgage interest rate goes down then it may be a financially wise decision for the homeowner to refinance the mortgage loan. This way the homeowner can reduce the monthly payment of the mortgage loan and can have substantial free money to utilize for other expenses.
A second good reason could be to change the financing term from adjustable rate loan to fixed rate loan. Depending on the individual financing condition when people buy real estate they opt for adjustable rate loans which gives flexibility to home owner to pay lower monthly mortgage payments. Adjustable mortgage interest rate is normally tied up with economy and as the interest rate raises the mortgage monthly payments goes up. Adjustable mortgage loans give uncertainty of monthly home payments and homeowners are usually uncomfortable to have that fear. By refinancing the adjustable mortgage loan to a fixed mortgage loan it gives the homeowner some security of having the same monthly payments for the term of the loan.
A third reason, and most common, could be to take out the equity or get line of credit for personal financial reasons. Home renovation, vacation, debt consolidation could be reasons homeowners may want to use equity.
Mortgage Refinancing is a term used for taking another loan to replace the previous one with the same asset as the collateral. Refinancing can be worthwhile, provided you choose the one that is according to your requirements and situation.
Primarily, refinancing is done to reduce monthly payments. Refinancing your mortgage helps you in bringing down the monthly payments either by shifting to the current lower rate of interest prevailing in the market or by reducing the length of the period of payment, or both.
Refinancing lets you benefit from the present lower interest rates of the market. Initially, the interest rates may have been higher than what they are now but that does mean you need to continue paying exorbitant rates. The extra cash saved can be utilized for meeting other expenses.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

by Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

Knowing how to negotiate and close a deal is one thing. Being able to structure different types of transactions and think on your feet when in front of a seller is quite another. You need to become a transaction engineer so whatever comes your way you can handle. Here are some examples to work from and build your real estate portfolio.

1. Buying a property in pre-foreclosure involves approaching the borrower/owner and offering to buy the property outright. The borrower/owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history. The buyer has time to research the title and condition of the property and can realize discounts of 20-40 percent below market value.

If the loan is not reinstated by the end of the pre-foreclosure period, potential buyers can bid on the property at a public auction. Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand; however, a public auction often offers some of the best bargains and avoids the unpredictability of dealing directly with the borrower/owner.

2. Owner financing (also called seller financing or owner carry-back) is when the seller of a property allows the buyer to pay all or some of the purchase price over time. Typically, the transaction is set up as a private mortgage which means that the seller holds a lien on the property just like a bank. In many situations, this may be an optimum solution for both the buyer and seller.

With owner financing, sellers have the opportunity to attract a larger number of buyers, and overcome potential valuation problems, which can result in a higher sales price of their home. Buyers can obtain a mortgage when they might not qualify for one otherwise, and can achieve lower closing costs which could result in thousands of dollars in savings.

3. Investing in pre-foreclosures with short sales has never been better. You'll need a good Realtor for this. Short sales allow the real estate investor to discount the loan from the lender. You must know this technique if you want to be competitive in today's market.

4. A lease option is just a technique that involves gaining control of a property, but not ownership. Just the right to posess a property and purchase that property at some future with terms you define today.

5. Subject to is getting the deed to a property without getting a new mortgage Instead, the seller signs over the deed to his or her home "subject to the existing financing" staying in place. The buyer in this case makes the mortgage payments on the old loan, but does not get a mortgage themselves to acquire this home.

Both of these techniques usually require little or no money down. In both of these techniques it is possible for the buyer to get money from the seller or the purchaser (or both) in the beginning of the transaction. These techniques, when used properly, can provide for huge profits. They are awesome strategies and when used hand-in-hand, are almost an unbeatable pair!

6. Retailing a property as an investor usually involves buying a junker subject or with money from hard money lender, doing the necessary repairs and selling for a profit. While this can be one of the most profitable ways to make money in the business, I don't reccomend it for a beginner in the business. Doing a lease option on a property you aquired subject to on a pretty house is one of the easiest ways to get started.

7. Wholesaling It is simply finding a bargain property and passing it on to a bargain hunter. That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income. Your profit as a wholesaler should be between $5000 and $15,000 on each house. In some cases it will be higher than $15,000 and on some deals your profit may be a little lower than $5,000.
Real estate investors choose to wholesale properties for a few reasons. They could be:

Quick cash, it is possible to turn a property around anywhere from 7 to 45 days and get cash in your pocket. If you need to get your hands on some cash quickly, this would be a reason to wholesale. Or, you may not need the cash immediately. You might just want to build your cash reserves. Wholesaling is a good way to do this quickly. BUT BE CAREFUL, in many states like Indiana it may be considered brokering of real estate. Brokering without a license is bad business and a quick way to blow profits defending yourself on state charges. Use a Realtor to be safe.

Too many houses - maybe you're good at finding houses, but you find more than you need or can use at any given time. If this is the case, wholesaling is a smart move for you. You can still profit from your locating skills, even if you aren't going to keep the property for your personal portfolio.

Flexibility - at any given time, you can determine whether you want to keep a property or sell it. This gives you flexibility as you locate and purchase properties.

Probably the most important thing that you need to remember when you decide to wholesale is, your buyer should get the majority of the profit! This is important because your buyer will be the one to purchase and rehab the property. There has to be enough room in the deal for your buyer to do this and still retain a nice amount of money for cash out and/or equity.

This does not mean that you find properties and give them away for $1,000. If you did that, you would be a bird dog, not a wholesaler. Your profit will vary depending on the house, but the better you are at locating properties and putting together offers, the greater your profit will be while still maintaining an excellent profit for your buyer.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

by Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

Homeowners who have the option of completing a short sale in order to avoid foreclosure may be better served by saving their home in this manner. In some cases I can actually renegotiate the term, monthly payment and back debt to a more comfortable payment allowing you to keep your home.

You owe more on your home than it is worth. Perhaps you have lost your job and are behind several payments. Maybe you are dealing with an increasing payment from an adjustable rate mortgage and are now facing foreclosure. A short sale is a way of selling your home for less than what is owed on it. By negotiating with your mortgage company's loss mitigation department to accept a lower payoff, a short sale can be accomplished.

We first need to meet and discuss your specific situation. I'll be able to put a plan together that best works for you and what's going on with you. Then after gathering a few documents from you, I'll be able to contact your mortgage company directly on your behalf.

Our team of specialists are here to assist you with a mortgage loan modification. We will negotiate with your mortgage lender(s) in an effort to stop foreclosureand produce a long term solution to your problem. Whether you are facing foreclosure, your rate is adjusting or you just cannot afford your mortgage fha va payments any longer, we can help. The hardest part of getting help is making a simple phone call to one of our specialists.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET