For those studying the current decrease in real estate market prices these days, inflation is most commonly observed in relation to these very decreases. Inflation consistently affects the price of real estate across the United States. To first understand what inflation is, proves important in grasping why it can have so much affect on the cost of housing.

So, what exactly is inflation? Generally speaking, inflation is the increase in services and goods, that makes your United States dollar worth less. This can affect the purchase of groceries, travel, vehicles, and especially the housing market.

There are many theories on inflation that have been studied over many years. Authors and business persons write books on the topic every day, whiles others read the books and try to create their very own theories on the subject. At this point in time, there are two types of inflation changes that can drastically affect the status of the economy – therefore, real estate. The first, and most significant in relation to housing, is cost-push inflation.

Cost-push inflation is when price of goods and services go up to the consumer, as the costs to own and operate the companies that create these goods and services, begins to increase. In a sense, the companies ‘push’ their increase in operating costs onto the consumers of their goods and services.

In relation to the housing market, companies that may build homes, give or broker loans, sell construction materials, etc. must also then push their costs onto the consumer. This making the real estate market prices rise for those looking to buy. In which case, market researchers would deem this point in time a ‘sellers-market’ in real estate.

So, how does inflation relate to the decrease in housing costs? When inflation hits its peak, or as market researchers define it, when the cost of living becomes too high for the consumer to handle, the cost of housing decreases. We as the United State are currently in this market, which we know as, a ‘buyer’s market’. As the cost of goods have hit an irregular high, the cost of real estate across the globe has become outrageously affordable for all.

Real estate investors wait for moments in time, like now, to invest in rental properties, home upgrades, and other investments they can hold onto until the market turns. For the average family, the cost of buying a new house, or constructing a new house is also at an all-time low.

So, whether you have been waiting for the right time to invest in Nacogdoches real estate, or property in Maine, inflation has temporarily made this cost-effective pricing window available. Inflation will make a change again, soon enough, so why not take advantage of the low prices the real estate market currently has to offer? Invest in your dream home today.

The Danville Real Estate has displayed varying market activities depending on the type of properties sold in the neighborhood. The Diablo Highlands neighborhood features both smaller lot detached homes and larger ones. The smaller lot homes or the “Diablo Highlands” has been reported to have an increased activity recently. On the contrary, the larger-lot single family homes, or the “Diablo Highlands Country Estates” has shown less activity recently due to fewer available homes on the market. The following tells of the specifics of the market activities of both the “Highlands” and the “Country Estate Homes”.

Diablo Highlands

In comparison to the previous six months which had 4 closed sales, this most recent six-month period has better sales turn out with nine sales closed. Moreover, three homes are actively listed and one sale under contract (or pending sale).

The three active properties were listed for an average price of 601,183 which equals to $331 per square foot. These listings have been available on the market for an average of 71 days. The Glasgow property is a short sale.

The property on Glasgow Circle is the only pending sale and it is listed for $635,000 which translates to $251 per square foot. It has been available on the market for 53 days and is REO.

The nine properties were closed for an average price of $676,222 or $292 per square foot. These homes stayed on the market for an average of 30 days. They were sold for about 96% of the asking price. 185 Gardner Place and 190 Glasgow Circle were short sales.

Diablo Highlands Country Estates

Diablo Highlands Country Estates has one active listing and one pending sale. The once active listing has an asking price $975,000 or $323 per square foot. It has been listed for 14 days and is not distressed (short sale or REO).

The one pending sale is located on Ross Court, and is listed for $1,290,000 or $326 per square foot. This property has stayed on the market for 40 days. It is not a distressed property.

Diablo Highlands Neighborhood of Danville had three closed sales last year. The three homes’ average closing price was $1,203,000 which was equal to $296 per square foot. This amount was about 98% of the properties’ asking price. On the average, the homes were available on the market for 49 days. None of the properties were short sale or REO.

This is the most asked question that new investors ask. They ask it for obvious reasons; to know when they will get their investment in the course back, to determine if it is worth their time or because they are desperate to make money.

I have heard all sorts of claims by national gurus that it should only take a week or 30 days for a new real estate investor to get a deal. Let’s start by defining what a “deal” is and what it is not. A deal is a completed real estate transaction, both a purchase and a sale, where the investor makes a profit. It is not simply getting a property under contract and hoping for the best. It is not buying a property at 5% below the listed price on the MLS® and going to rehab it. It is completing the life cycle of a deal from purchase or contracting to sale.

An investor can start in the conventional manner of buying a property and reselling it to an end-buyer or he can look to do wholesaling to other investors to start. We will look at both options to show the dramatic differences.

Wholesaling – I mentioned contracting above because in wholesaling an investor only needs to contract the property to sell it. He does not have to purchase the property, close and wait for a buyer. This is true for those investors who understand the real nature of wholesaling. This is the fastest way to get a deal closed and cash in the bank for new investors.

Rehabbing – If the investor wants to and has the money to purchase a property, he can simply find one on the MLS® that needs repairs and go for it. If he wants to stay in the business long-term, he will have to develop marketing techniques to find good deals – essentially what wholesalers do. His time frame to make a completed deal will usually be in the area of 2 – 3 months and longer if the buyer of his rehab has to get conventional financing. Some deals will take longer to complete, but they will all require the money for the purchase, carrying costs and the expenses of the rehab.

The process of getting a deal first entails finding one. There are at least fifty ways to prospect for motivated sellers to find a property for sale. The next step is to determine if the seller is motivated, if not, it is a waste of time for the investor. This isn’t to say the seller won’t be motivated in the future, but currently the seller’s interest is only the price he will get. Experienced investors know that the real money is in the follow-up and not the initial offer.

In wholesaling, the next step after a seller is determined to be motivated and receptive to your offer is to determine what price to offer. A motivated seller is distinguished from a non-motivated seller because he is interested in a solution to his personal problem, not just the price he gets. What price to offer usually entails determining the repair costs and after repaired value and then making an offer at enough of a discount to be able to resell it to another investor and make a profit spread – without having to do any repairs.

Assuming a new investor gets a seller to sign a contract and in a week he finds a buyer who will purchase the property or his contract (Assignment of Contract), the closing will usually take place in 3 – 4 weeks for a cash buyers. It is possible to close sooner but the title work can take as much as 30 days to complete.

So in summary and not counting the initial time required to find and put a contract on a property, it should take 30 days to do a wholesale deal – if all goes exactly as planned. For doing rehabs, the time after the property is found and contracted will likely be an average of 120 days in most areas.

If someone tells you that you can do a deal in seven to 30 days, you may be in for a surprise unless you have a lot of structure in your business and have continuous prospects in your pipeline. The more important question is, “can you sustain a deal every 7 to 30 days?” The answer to this question is all up to your perseverance and management capabilities as you get more and more prospects in your system and have more and more closings on the horizon.

If you are a real estate investor or if you are heavily involved in other areas of real estate, you are probably well aware of some of the difficulties of checking for clear titles in some areas of the country. A failure to do so can result in significant financial losses. This is why it can be a good idea to outsource real estate title insurance services.

When you must run your own real estate business, titles become so important that you would need a full-service, full-time team of investigators if you want to be able to keep up with your needs using in-house employees. In many cases, it makes a lot more sense to concentrate your employee resources on the business and to make use of a company that specializes in offering title insurance services. These companies know their business because they are built around investigating titles and insuring properties against losses that could result from title claims.

The important thing is that you choose the right company when you decide to outsource real estate title insurance services. The importance of your business success is on the line. You need to know that you are insured against any title claim losses. Choose a well-known, reputable company. A title insurance company’s past clients are a good place to start. How well has the company supported them? How has the company lived up to its responsibilities? If you do not have past clients to interview, it will be very hard to determine the reliability of the company. Do not forget to check the Web for reviews of title insurance outsourcing companies.

Make sure you match the size of your business with the capabilities of the company to whom you intend to outsource. If you have a large business, choosing to outsource real estate title insurance to a small company may not be the wisest move, as the company will be too small to handle your client load.

Canadian newspapers carried stories recently about the eviction of land owners in an area known as La Manzanilla, located on beautiful Tenacatita Bay, between Puerto Vallarta and Manzanillo on the west coast of Mexico.

Many owners purchased property from farmers that had previously been ejido land a tenancy not unlike Indian lands in the United States and Canada. Ostensibly the proper legal procedure had been followed and apparently many of the properties were held in Fideicomisos, the Mexican bank trust that is required for foreign owners in compliance with Article 27 of the Mexican constitution. According to information published, the prior titles to the land had been signed by Vicente Fox, president of Mexico during 2000-2006.

Unfortunately, however, a Jalisco state circuit judge ruled recently in favor of a real estate developer who had allegedly acquired the land, as private property, in 1991. Attorneys for the developer declared that it had filed the complaint in the courts in 1993.

Jalisco state police officers in compliance with an eviction order, dis-occupied the property and are denying access to those in possession.

This is a nightmare that could have been avoided. Title insurance is available in Mexico. A title policy, issued in conformance with Mexican law, will protect the amount of the buyer’s investment. In order to obtain a policy of title insurance, a title investigation must be carried out. This investigation will report potential issues and problems. If none are found, or if the issues are solvable, a commitment will be issued and the policy will be written at the time title transfers to the buyer who ordered the investigation.

If the title company reports problems that cannot be resolved, the potential buyer will at least be fully aware of the risk and can decide whether or not to proceed with the purchase. Some problems are not immediately known, however. When this happens and, if a problem arises at any time during the ownership of the party registered on the policy, it is necessary only to contact the title insurance company who is then legally bound to fight the issue and, in the event it does not win, owner is compensated up to the amount declared in the policy.

Title insurance is NOT an expensive proposition. The title investigation cost will depend upon the area where the property is located and can range from 450 USD to 3,000 USD. Actual cost will depend upon whether or not a title data base has been created. When a new data base must be created obviously more time, and hence, greater cost, will be involved. The premium, a one time payment, will run from 6.00 USD to 7.50 USD per 1,000 USD valuation, plus tax. Thus an insurance policy on a 200,000 USD property can cost $1,200 to 1,600 USD. which seems to be a small amount to pay for the security afforded. The prudent buyer will always include the cost of title insurance investigation and policy in his closing budget.

Two US companies have title policies approved in Mexico for use on properties located in Mexico. It is important that this option be made available to any and all considering a purchase of property in Mexico.

LINDA NEIL is the founder of The Settlement Company®, which specializes in real estate transfers and escrows, specializing in the Virtual Closing®. Licensed as a California real estate broker, Ms. Neil has pursued her profession in Mexico for nearly forty years. Her skills in negotiating contracts between parties from three distinct cultures have placed her services in demand as a consultant and for speaking engagements on Mexican law and customs in Mexico, the United States and Canada. She has been widely published on the subject of real property in Mexico. Memberships; FIABCI, AMPI and NAR. Linda is a two time former member of the National Advisory Council of AMPI and has served as AMPI Coordinator for the state of Baja California Sur.