June « 2011 « Entre Realty

June, 2011

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30
Jun 11

Ebay Vs. Garage Sales: Which Is Best?

There are literally thousands of dollars sitting around your house – right under your nose! The problem though is what to do with all these unused and unwanted items.

Do you go online and sell them through eBay or would it be better to hold a garage sale? Both of these methods can be great to unload these items and make a bit of money while doing it.

The following article will help you determine if it’s better to sell your items on eBay or at a garage sale.

THE BENEFITS OF USING EBAY

eBay is arguably the best place to sell your items online. The sheer volume of people looking for items is enticing enough to sell your items. No doubt you’ll find someone that is interested in your items.

With millions of items for sale on eBay, you can correctly gauge the price of your items so you don’t have to haggle with those trying to buy in person.

Additionally, because you can set your eBay listings for multiple days you don’t have to worry about the time restrictions as that presented during garage sales.

WHY EBAY MAY NOT BE FOR YOU

eBay, being an online auction platform does come with it’s pros and cons.

With each listing you’ll not only have to take the time to create a picture, write a description but you will need to pay listing fees.

If your items do not sell, you will be stuck having to pay for your fees which will cut back on the overall profit you could have made.

THE BENEFITS OF HOLDING A GARAGE SALE

Garage sales, unlike eBay, allows you to sell your used and new items to your community.

With actual foot traffic coming to your garage sale you can command your own prices and even make additional sales by throwing in incentives.

One good customer at a garage sale could come through and sweep all of your items within a few hours.

Additionally, garage sales can be a lot of fun because you’ll be able to clean out your house and get to know your neighbors and community.

WHY GARAGE SALES MAY NOT BE FOR YOU

Garage sales can be great when comparing it to eBay but one problem that arises is that you’re going to have to put forth the physical effort of setting up your sale.

If you spend hours setting up tables, placing signs and spending hours sitting, waiting for people and no one comes than a lot of time and effort is wasted.

THE BEST APPROACH TO SELLING YOUR ITEMS

Although there is an endless debate on wither eBay or garage sales are better for selling your items the best approach is to utilize a hybrid method.

Use eBay to find competitive pricing and sell items which would catch you a larger profit while a garage sale can be perfect for getting rid of the rest of your items.

After all is done, you could always list your items on eBay that didn’t sell or donate them to a local charity.

FINAL THOUGHTS

In all, eBay would be perfect for those that are willing to take the time to list their items for the best price.

Garage sales are great for those that aren’t entirely technical and just want to hold a short sale.

With enough effort and the right platform you’ll be able to make a great deal of additional money and sell off your unused/unwanted items.

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28
Jun 11

Student Funding & Bank Loans

http://hubpages.com/hub/Banking-preys-on-students

In this article I am going to outline some of the problems students encounter whilst studying, once they obtain their qualification, and also debt problems young people in general find themselves in. I was inspired to write this hub because I was a student myself and had to survive some financial stumbling blocks along with friends of my own who have similar problems. Referring to the title of the hub, I would like to outline some problems I see with banks marketing strategies and how you can avoid being bamboozled by your ‘friendly’ advisor.

To begin with I will start by telling the story of when I first entered university at the age of 21. I had recieved my student grant from the student loans company and this was to cover my tuition fees, rent, equipment, food etc. I managed fine with this and didnt go over board with the partying, being away from home at beautiful Swansea was fun enough for me. However, by the end of the year my old computer I had taken with me decided to conk-out. My parents advised me to talk to the bank about their student loans, Royal bank of Scotland who i was with said I could have upto 1500 pounds. This was perfect studying graphic design, I went straight out with my friend to PC world and bought myself a new iMac G4 for around a grand.

Just like a friend of mine who studies sound engineering, I was excited about giving my life some direction and didnt know about the realities of finding work once I had graduated. My friend has bank loans after graduating this year and now realises why I was desperately trying to save while he was still partying. I have had numerous job interviews for companies requiring a studio graphic designer, but most of them require extra skills which we were not taught such as printing operatives. I have managed to create a portfolio of freelance work, although companies ask questions like ‘ why do you want to change from freelance work’ and demand work experience which graduates do not have.

My friend now has a temporary job at a next clothing store while he looks for a sound engineering job, I don’t know how hard he is looking but he told me he now doubts his plan of a career in it. I have done a quick search for sound engineering jobs on the internet and many came up blank or just small jobs such as recording bands. He also told me he is trying to arrange a appointment for a credit card from his bank.

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27
Jun 11

Tips on giving an effective sales presentation

Anyone who is or has been involved in sales would agree that selling is not easy. To be an effective salesman, one has to be confident, persuasive and determined to talk the customer into buying the product. However, as customers nowadays are, not only more sophisticated, but they also try to save as much as they can, the job of salespeople becomes harder and harder in their effort to develop their sales potential to sell and make profits.

Sales presentations are valuable tools that help salesmen to present a firm’s products and services before a buying audience. Being, in effect, the first contact of consumers with the company, sales presentations shape consumers’ perceptions about a firm or a brand name. However, sales presentations are not plain PowerPoint files. They primarily involve the personality and character of the salesperson, which is reflected on the way the product or the service is presented. The way a salesman talks, moves around the room, answers questions and seems confident about the product he/she presents makes an effective sales presentation and can definitely enhance the reputation of a firm by shaping a high opinion about its products, services and people. Ultimately, this can lead to enhanced profitability and can make the firm really viable in the competitive marketplace.

There are certain rules that a salesperson should follow in order to give an effective sales presentation and manage to impress consumers in the hope of converting them into potential customers.

Rule #1: Have a comprehensive case

A sales presentation is useless if there is no case around which it evolves. Often, salespeople use a lot of data to support a story that, in reality, is not even there. It’s all about fiction; a fiction that customers get aware of and, ultimately, walk away of the sale. Without a comprehensive case, there is no point in making a sales presentation. By giving to clients information they already know will most likely overwhelm the presentation, forcing the audience to find out on their own what’s the big deal about it. This is, in effect, a kill sale.

Rule #2: Know the audience

Even the best salesmen with the highest sale records in the company cannot sell a product if they are not familiar with their audience. To be able to sell, they have to know what their customers need. The key to achieve that is to do a thorough research in the company’s website before the presentation to discover the customers’ business. However, as nothing is better than human contact, getting in touch with the company’s top management or public relations specialists will enable salespeople to get a deeper idea about the company’s vision and objectives. Prospect customers expect that salesmen can read behind the lines and understand what they are doing and what they need from a particular product or service. In this aspect, the sales presentation needs to be adjusted according to the client’s goals and objectives.

Rule #3: Use interaction

Even the most impressive presentation is boring if the salesperson does not involve the audience. Salespeople need to find ways to be creative and interactive so that customers respond to questions. In the process, new information about the product or the service is generated through interaction. This enables customers to determine the key factors that will eventually play the most important role in their decision to buy the product or not. Many salespeople use one of the most widely known advertising models, the AIDA (Attention, Interest, Desire, Action) model, which aims at attracting attention of customers, maintaining their interest, creating desire, and getting action.

Rule #4: Show professionalism

Many salespeople, although they may have a great sales presentation, they kill the sale by lacking professionalism. They often forget that the very purpose of a sales presentation is to present effectively a product or a service in the aim of selling it and they just use the visual aid of PowerPoint to show a great case. However, a professional sales presentation requires analytical skills, steady and authentic voice, confident body posture, smile, interaction, and communication. Prospect clients expect enthusiasm, positive attitude, and authenticity so that they get convinced about the product and believe that everything they hear is true. This will open the door for a future cooperation and sales opportunities.

Rule #5: Keep it short

Lengthy presentations make audiences lose their interest. Salespeople should focus on the features and benefits of the product they aim to sell and keep their presentation short. Otherwise, customers will soon get disinterested and will get lost in numbers, slides and charts that will mean nothing more to them than a waste of their valuable time.

Overall, salespeople should love their job in order to be able sell the products and services of the company they represent. Being a salesman requires loving to be around people, meeting new people every day, interacting with them, be responsive, and establish long-term professional relationships. Otherwise, any effort to sell through a sales presentation will seem like fake and not genuine. Above all it requires genuine love for the profession of sales to make an effective sales presentation. It has to come from inside and to be improved with practice and persistence.

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25
Jun 11

Foreclosure Cleaning Services Clean up Hud Properties

Property Managers need help from cleaning services

Cleaning and maintaining foreclosures can be done for more than just realtors and mortgage companies the other types of businesses that need trashout services include property managers who have rental properties and commercial properties that need foreclosure cleaners and foreclosure cleaning services to clean out, cleanup vacant apartment buildings and business office buildings.

Home builders need help with newly constructed vacant homes

Home builders also have lots of newly constructed homes that are now vacant due to homebuyers not being able to get a home loan or credit to purchase the newly constructed housing tracts.

The increasing amount of houses in foreclosure is partly due to the slowing of housing sales and the impact of rising monthly mortgage payments of homeowners who took on adjustable rate loans and sub-prime mortgages. This will increase the demand for foreclosure cleaning services.

The types of property inspections include: occupancy inspections, initial vacant property inspections, vacant property inspections, voluntary pre-conveyance Inspections and eviction Inspections.You can use the HUD guidelines to figure out the pay structure for each, it can vary depending on who you work for. You will be verifying and determining occupancy most of the time.

Types of Property Inspections

The following are the types of inspections that many who will be entering the field of property field foreclosure will have to be familiar with in areas such as: Eviction inspections, Voluntary pre conveyance inspections, Vacant property inspections, Occupancy inspections.

Foreclosure Inspection

As an inspector you will determine the overall physical condition of the property and occupancy status of the property. Contact may be necessary during this inspection. You will be required to report observable damages as well as property secured status for secured or not secured, also utility status for active or not active and other maintenance needed and considered important for this type of inspection.

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24
Jun 11

Some Tips on Short Selling a Stock

Short selling a stock ?

First of all lets understand what short selling actually means.It is the practice of selling securities,which is borrowed from third party and in a hope to buy that security back at later date to return to lender.If the price of security decreases then the person(short seller) will be in profit and if the prices move on then he will be in loss.

It is just opposite of going in long position where the purchased buys a stock,believing that prospects for the company are good and the stock will raise.While in short selling seller thinks that the market price of share is in overbought condition and he can make profit by selling it now and then cover back it after some time.

Following technical indicators can be useful in finding short sales moves.

You have to find an overbought situation or a trend that is reliable.You can use these tools to find overbought situation.

Relative strength index (RSI)
Stochastic oscillator
short-term moving average

These oscillator,can help traders in finding the limit of the prices and also when the market will run out of buyers.You also need to set your stop loss for your short selling. When you place stop for short selling you have to place it above the entry price. You may place it few ticks over previous resistance, or place it few ticks above highest price of the day if you are swing traders.The danger of short selling arises when short sellers buy to cover their losses, the price continues to rise, triggering more short sellers to cover their losses, etc

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23
Jun 11

Short Sales as a New Option

Like any other individual, everyone aspires to own his dream house, but the problem is it is too expensive which is why people go to banks and lending or financial institutions to obtain loans to acquire it. In turn, a mortgage is executed on the property until the loan has been finally paid. However, it is a common reality that homeowners sometimes fail to meet the monthly amortizations and in the process, the amount due continues to pile up. This is when the harsh and painful consequence sets in, of losing the dream home we have so yearned for, causing grave damage to our credit rating, and finally forfeiting all those payments we had already made. All these happens when lenders are forced to foreclose the mortgage on the property because of the inability of the borrower to pay those amounts which he should have long settled.

Nowadays, people resort to short sales instead of resorting to foreclosure proceedings. Short sales have proven to be quite famous in the recent years as both borrower and lender surprisingly choose this option over the traditional foreclosure. On the part of the borrower, he is given the chance to redeem himself, as he is given the chance to settle those arrears by paying an amount less than that which is demanded. He is now content that he will not be losing his property and is now given the opportunity to get back on track in making good those monthly payments with respect to the remaining balance. Why would the lender agree to such an arrangement? From the point of view of the lender, it is actually better to receive something than getting nothing. Though it will pass of as a loss, at least only a portion of the arrears would be reported as a loss and not the entire amount. Both sides prefer this arrangement because they both get something out of it, neither party getting an undue advantage over the other. The process is actually more simple and much more economically viable, which is probably the reason why it is now a new option being entertained when it comes to problems on mortgaged properties.

To know more about Short Sale and Short Sale Software visit http://www.shortsalesoftwarepro.com/.

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22
Jun 11

Foreclosure Preservation Property Inspection Jobs

Working in foreclosure preservation is big business for those who want to profit from cleaning out REO trashouts. The great recession caused many to lose employment. Thinking of starting a new career in foreclosure trashouts, this business opportunity will grow as more REO banked owned properties go into default. Homeowners are unable to pay their mortgage causing lenders to have to reclaim the homes for resale.

Stop foreclosure programs are trying hard to help people stay in their homes, through loan modification and lower interest rates but with adjusable rate mortgages resetting many are choosing to walk away from the property with strategic foreclose.

Entrepreneurs can take advantage of the business opportuntiy to become a property preservation contractor, handling many of the initial vacant property inspections. Real estate investors are paying cash for homes that they intend on flipping for a profit. You can offer services such as: Lock changes, Winterization, Debris removal, Grass and grounds maintenance, Initial Securing, HUD Conveyance Preparation, Eviction services, Code violation abatement, Repair and Renovation.

Income potential will vary depending on the city or state you live in.REO listing agents will have the largest number of MLS listings. Short sales are becoming more popular for homeowners who want to rent back the home after selling it at a lower asking price below market value. This may be a better option than going into bankruptcy which will cause people to damage their credit for up to 7 years making it difficult to buy another home.

Real estate foreclosure inspection jobs are being advertised in many job boards and career employment websites, by national property preservation companies that need to hire subcontractors to help with the huge work load. Those who want to buy a pre-owned home they need to have a foreclosure inspection to make sure everything is in order before they make an offer.

When it comes to pre purchase foreclosure inspection are conducted before the home is sold, during a walk-through, your job would be to review electrical and mechanical systems along with heating and cooling systems. A full home inspection will address all areas of the home and provides a report that the prospective buyer can use to evaluate the value and structural workmanship status of the home, for any needed repairs.

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21
Jun 11

How to short a stock

Most investors purchase stocks at a low price and they expect their return from an increase in value. However, if investors believe that a stock is overvalued and want to take advantage of an expected decline in price, they may sell the stock short.

A short sale is the sale of a stock that an investor doesn’t own with the intent to buy it back later at a lower price. The investor basically borrows the stock from another investor through a broker, sells it in the market and then – hopefully – replaces it at a lower price than the price he had originally sold it. Similarly, the investor who had lent the stock gains the proceeds of the sale as collateral and invests these funds in short-term, risk-free securities. Although a short sale has no time limit, the lender of the shares can decide to sell the shares and the broker should find another investor willing to lend the shares.

Example

We assume that a short seller borrows 100 shares of company X at per share and then sells the shares for ,000. If the share price falls to , the short seller buys back 100 shares for 0, returns the shares to the lender and realizes a profit of 0 (00 – 0) minus the fee for having borrowed the shares. However, if the share price rises to , the short seller would realize a loss of 0 (00 – 00).

Short selling is a risky exit strategy, typically used by risk-taker investors. Short selling is always the mirror opposite of the market. To achieve effective short sale, investors need to do it at the correct timing, when the price of the share guarantees profits.

Three technical points affect short selling. First, a short sale can be made only on an uptick trade meaning the price of the short sale must be higher than then last trade pride. This is because the exchanges do not favour forced profit from traders on a short sale by pushing the price down through continuously selling short. Therefore, the transaction price for a short sale must be an uptick. For example, we assume the following set of transaction prices: 50, 50.25 and 50.25. The investor could sell the stock at 50.25 even though there is no change from the previous trade of 50.25 because that previous trade of 50.25 was an uptick trade.

The second technical point relates to dividends. The short seller must pay any dividends due to the investor who has lent the stock. The buyer of the short-sale stocks receives the dividend from the company and then he should pay a similar dividend to the lender.

The third technical point relates to the margin requirements. Short seller must post the same margin as the investor who actually owns the stock. The margin can be in any unrestricted securities owned by the short seller.

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19
Jun 11

Beware of the wash sales rule!

When you lose money due to the value of the stock going down, you may try to get rid of that stock. There is nothing wrong in that. You plan to claim this loss on your tax return. However, when you realize that the stock is bouncing back, you may buy it again. And here you’re stuck with the wash sale rule. If you try to get replacement of the stock sold, and that too within a very short time, IRS does not allow you to claim the loss on the previous transaction.

Example – On January 10, you sell 100 shares in ABC at a loss. And then on February 2, you buy 100 shares of ABC again. In this case, the sale you made on January 10 is called a ‘wash sale’.

The wash sale rule applies to you even though you did not acquire the stock. Suppose you enter into a contract to buy stock, then also the wash sale rule applies.

The effects of wash sale:

1. You cannot claim the loss on your sale transaction due to wash sale rule.

2. This loss can be added to the basis of the stock newly purchased by you. So the benefit of claiming loss is kept intact. You will receive the benefit when you sell the replacement stock. Let us take an example to explain this. You bought hundred shares of ABC at . The stock has gone down to and you sell it off in order to claim the loss on your return. Soon, you realize some good news about the stock and you buy it again at within 30 days after the sale.

In this situation the initial loss you made of per share will not be deductible on your tax return. Instead you can add this loss as a basis to your newly acquired stock. So the newly acquired stock is assumed to have a purchase price of and when you sell it, say for , you need to report a profit of only .

So this allowance is not a disaster. It is only postponing your tax benefit for some time. You can take the benefit later, perhaps in the same year.

However, if you die before selling the newly acquired replacement stock, you or your heirs will not be benefited for the transaction. Also, if you dispose the stock to a related person, or to your IRA, you lose the entire benefit.

3. When you make such a wash sale, the period of holding the replacement stock will be added with the period for which you held the original stock. So you cannot convert a long term loss into a short term one! So if you make the wash sale of the stock you held for years and you sell the replacement stock within months, your loss will be a long term loss.

There are some finer points you need to understand about the wash sale rule. The rule applies to exactly identical stock. It does not apply to ‘similar’ stock. Also, the rule applies only to losses. So if you make a gain out of such transaction, this rule is not applicable and you have to pay taxes on your gain. So it is a win-win situation for IRS!

What about mutual fund shares? The rule applies to sales of mutual fund shares also. IRS has already plugged this loophole by making a rule that all the circumstances have to be considered in making a decision about whether a stock or security is substantially identical or not. And never think of buying your replacement stock in the name of your spouse. You’re still not allowed to claim the loss.

How to avoid this rule? Try to plan your sale keeping a minimum gap. If you are really convinced about the bouncing back of the stock, then just go ahead and buy it. You will cover your loss against your gain in the future anyway!

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18
Jun 11

Hardship Letters For Short Sales

Many homeowners who are behind on payments, owe more than their house is worth, and wish to avoid foreclosure are turning to an alternative way of selling their distressed property: short sales. When asking the bank for a short sale, the real estate professional needs to prove 2 main things to the bank: the property is in distress and the homeowner is in distress. Part of proving that homeowners are in distress require homeowners writing hardship letters to explain why they are unable to pay their bills.

Advice: if you are a real estate professional and require your clients to write hardship letters, give them some guidelines on how to write it. Don’t let them figure it out on their own, or you’ll have a stack of papers as complicated and large as a congressional bill. You don’t tell them what to write, but you can instruct them on what hardship letters are and how to write them.

Simply put, hardship letters are short letters that explains what has happened to the borrower or what has changed since the borrower purchased the property, and why they are no longer able to afford the property.

Hardship Letters | 4 questions to answer

What is the hardship? Examples of hardship would be job loss, decrease in hours, divorce, medical bills, death, etc…
What has changed about the situation from when the property was purchased or the mortgage was obtained? The hardship should show that something significant has happened to the homeowner since they signed the mortgage documents and that this is the reason that the mortgage can no longer be paid.
Has the borrower explored all other alternatives such as loan modification or financial counseling or any other options for avoiding foreclosure?
The real estate professional is the best option left to work with me.
Good hardship letters are short, sweet, to the point, and explain the situation such a way that the even a bank employee can understand and empathize.

If you liked ‘Hardship Letters for Short Sales’ then you may also enjoy other articles written by Phill Grove, the REI Maverick, at http://www.REIMaverick.com.

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