Minneapolis Realtor Alex Anderson: Helping You To Find Your *Dream Home*!

People want to be mystified. The arts mystify them, so they ooh and ahh and compliment the artist or the writer on his or her talent. They see science as a mystery, and so they aren't even interested in what researchers are actually up to. Investment in real estate is mystifying to them, and so they assume it's a big odds game and that certain people either are extremely lucky, or that they possess an inborn gift.

They refuse to accept that succeeding in all three disciplines is simply a matter of breaking it down into steps and following your plan through to fruition. Anyone who reads the Rich Dad, Poor Dad book series by Robert Kiyosaki know that, in real estate investing, there are five important steps the serious real estate investor should follow in order to achieve success. He should:

1.Learn how to speak the language of real estate investment. This means to have a working knowledge of the basics of accounting and finance and learn to read financial statements. This knowledge give you the ability to distinguish between assets and potential drains. Also, it's important to know the basics of tax code related to real estate so that you do not make expensive mistakes, but in addition to know where the best tax deductions for real estate are. Knowing the basics of these subjects will also make it possible for the investor to know what questions to ask his lawyers and accountants when he hires them, and to grasp the implications of what they tell him.

2.Surround himself with experts. This is all about networking and studying the people who may end up on the real estate investing team of experts which he will hire to assist him in the location and evaluation of real estate. He should familiarize himself with the real estate community in the city in which he is looking to invest , and thereby get to know the city.

3.Keep a close on the real estate markets. The investor should read up on various cities and learn what the experts say about them, but he should also take a look at them himself. He should study his home city twice as thoroughly, if that is the city in which he is looking to invest his dollars. The investor should familiarize himself with the economy and learn which areas are good news, and which are bad news. He should learn what the market rents are and determine if a piece of property located in that part of town would assist him in reaching his financial goals. The investor should also visit and walk through as many pieces of property as he can with his team of experts, even if he is not ready to make a purchase.

4.He should know the right and wrong way to negotiate with a seller. Many simply have misconceptions about negotiating. They think that the object of each and every negotiation is reach a closing by any means necessary, and to bully the seller into ceding to his demands. If the buyer can make the relevant numbers add up to his advantage, and the seller will accommodate his terms of sale, then the buyer ought to proceed and purchase the property. If not, the purchaser should walk away. "The ABCs of Real Estate Investing," by Ken McElroy states that the investor should go into every negotiation assuming he will walk away in the end.

5. Take care of your properties. This comprises just what you would think. Make the necessary repairs and improvements on the piece of property and make sure to fill vacant. Make sure the renters' wants and needs are taken care of.

This is a streamlined version of the process, however it is clear to see from these steps that anyone can learn to succeed in the real estate business. There isn't a thing magical or mysterious about it.

If there is one important thing that first time homebuyers must remember, it is that they choose the right mortgage package. However, the selection process can be tricky at times even when you are coordinating with a mortgage loan officer.

This can be achieved when the basis set to qualify you is not your income ration and not exactly how much you are prepared to pay monthly. Borrowing the entire loan amount you qualified for can most probably exhaust your monthly resources which nobody would want to happen.

To prevent yourself from borrowing up to the limit that the loan officer presented, you can set your own loan amount limit. This can help you effectively manage your housing expenses based from your income bracket. There are several ways to find the right mortgage for your newly-purchased home:

1. Be informed about the tax benefits. 'Interest only' loans are those that allow deducting the entire payment from your taxes on a particular year. There are also other loans with negative amortization that won't permit deduction of interest from the monthly payment.

2. Think long-term. If you're planning on staying in the home for 30 years or more, you will be a good candidate for a fixed-interest rate loan. While these types of loans may have a slightly higher interest rate than ARM loans and other loan products, they will protect you from changing market conditions. Still, there are some drawbacks of the fixed interest-rate loan. Barron's Smart Consumer's Guide to Home Buying points out that the demands of the escrow account associated with the fixed interest-rate loan may cause your payments to increase.

3. Know the payment options. With a flexible payment option, you can maximize your funds and avoid yourself of possible debts in the future. There are mortgage loans wherein you can make extra payments towards your principal loan without a penalty. This is good because as soon as you have some extra funds in your hands, you can begin to easily pay your mortgage.

4. Find ways to keep your payments manageable. Keep your payments affordable by setting a limit on your loan amount even if you have been offered a huge amount by the lender. As much as possible, find a low interest rate, long loan term, and the ability to make interest-only payments.

5. Apply for mortgage insurance. Most first time home buyers do not have a lot of money available for the down payment, which can make a big difference to the loan amount and monthly payments. Mortgage insurance can provide for your down payment, or in some cases, allow you to apply for an attractive loan product without having to make any type of down payment.

Author: Alexandria P. Anderson specializes helping people to find and purchase Eden Prairie MN real estate, as well as homes in Eden Prairie for her realty clients.