Foreclosure is something that many American households are dealing with on a daily basis since the sub-prime mortgage disaster first reared its ugly head in 2006. Many American consumers have already lost their homes and many more will be losing theirs in the coming months.

Nobody wants to go through the experience of a foreclosure on their family home.  People want to work hard and get ahead, putting their dead rent money into their family home.

Unfortunately, things happen in our lives that leave many of us without the capacity to meet our mortgage repayments. If this has or is happening to you, then don’t think that you are alone.  More than a million properties saw foreclosure activity in 2007 and the 2008 figure is sure to be even greater again.

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(ARA) – We all understand the income potential of investing in real estate. Some people decide to buy apartments or commercial buildings to rent and manage themselves. This can be rewarding, but can also be a lot of work. What if you could have the benefits of a commercial investment, but without the many subsequent responsibilities?

Many people are finding tenant in common (TIC), or undivided fractional interest, to be an investment option that makes sense. TIC is a real estate method in which a group of people buy a significant real estate asset together, often much larger than they could obtain individually. Each investor is on the title and deed for their percentage of ownership and they own and control the property. Each owner receives rental income and the tax benefits of traditional real estate investing.

“Tenant in common ownership can benefit the individual new to real estate investing or seasoned pros. Some investors are looking for a new source of income post-retirement. Others have managed apartment complexes, mobile home parks, etc., themselves, but they don’t want the hassles of maintenance and management any longer,” says Curt Smiley, owner of TIC Investments, Inc., a real estate company focused on offering individuals access to corporate-grade real estate. “TICs open up new options for investors with many benefits.”

If you are thinking about investing in real estate, Smiley suggests you consider the following:

* Building Occupancy
How much of the building is currently leased? When investing, you should know the occupancy percentage and existing lease terms for each tenant.
* Risk Assessment
A property with a majority of the space leased to government agencies or Fortune 500 companies generally offers less risk than properties where a majority of the tenants are smaller, independent companies.
* History
Before investing, you should have adequate information about the history of the building and the history of the real estate company packaging the TIC opportunity.
* Experienced Counsel
TIC investing can be complicated. It’s best to work with a TIC representative who has years of experience and knowledge in the industry. Can they tailor a program to match your specific needs? Can they analyze the proforma to determine if the projections are realistic? All your questions should be answered in detail.

There are many benefits of TIC investing. Here are some of the reasons why people are choosing this method:

Equal Ownership
Smiley explains that TIC ownership allows each investor to have the same ownership rights regardless of the equity invested so that no individual or group has direct control.

Complete Investment
Investors work with a sponsor, who is the real estate company that packages and offers the TIC opportunity to the public. The sponsor first locates and secures the property then performs due diligence on the asset. The sponsor also obtains an appraisal, Phase 1 and the non-recourse loan thus the price the investor pays is a full, complete investment.

Control without Hassle
One of the most notable benefits of TIC ownership is the property management arrangement. The property management company works directly for the TIC owners. This characteristic enables investors to have a voice in all the substantial decision-making on the property without worrying about the day-to-day, tedious aspects normally associated with owning real estate.

Income
Historically, TIC Investments have returned a 10 to 15 percent average annualized return to owners. “Just as with any investment, there are risks, but many investors are very successful by choosing TICs. A good TIC representative will work directly with you to analyze your investment goals and risk tolerance, find the best opportunities and diversify your investment if possible,” says Smiley.

Tax Benefits
A 1031 Exchange is an IRS procedure which allows investment property owners to defer paying capital gains and depreciation recapture taxes on their equity principal. A TIC investment also allows individuals to write-off property depreciation, interest on the loan, etc., often sheltering much of the owners’ monthly income.

An investment in a TIC property offers attractive advantages, but it’s not for everyone. A TIC option may not be right for you depending on your particular tax situation or if you want complete control over the daily responsibilities of your property. However, if you are seeking a stable real estate investment that will not require your constant attention yet may provide you with reliable, monthly income, it may be a good choice.

To learn more visit www.TICinvestments.net or call 866-966-1031.

Courtesy of ARAcontent

(ARA) - Your home’s asking price is one of the first pieces of information that buyers will want to know about your property. Price it too high and you’ll scare them away. If it’s too low you risk losing money.

In order to price your home correctly, you’ll have to become educated about your local real estate market. Doing so will allow you to set an asking price that will compete favorably against other comparable homes. But don’t worry, it’s easy to do if you just follow these simple steps:

1. Know the Competition: Visit real estate websites and drive through your local area to search for homes for sale that are similar to yours in size, number of bedrooms and bathrooms, lot size and square footage. Educate yourself about their asking prices and, especially for condos, calculate the price per square foot. Trulia.com will do most of this work for you and allows you to print out a list of comparable homes, but you’ll also want to visit Realtor.com and ForSaleByOwner.com to get a more complete list of available homes on the market.

2. Visit Open Houses: Now that you know what’s on the market, visit as many open houses as you can in order to find out how your home compares to others. Your goal is to learn as much about those homes as possible, such as upgrades and renovations to the kitchen, bathrooms and bedrooms.

3. Learn About Recently Sold Properties: Your next step in educating yourself about the local market is learning how much homes have sold for in the recent past. Home sale information is public information and can be found a number of ways. Your county clerk’s office and/or local town hall can provide you with this data, but the Internet has made the task even easier. Trulia.com and Zillow.com each have a “Recently Sold” feature that will list all information about properties that have sold near any given address.

4. Get a Starting Point: For a simple, cost-effective way to get a ballpark range of how much your home is worth, consider getting an Automated Valuation Model (AVM). Similar to a real estate agent’s Comparative Market Analysis, an AVM will compare your home to similar nearby recently sold properties. The AVM won’t know if your home has an upgraded kitchen, finished basement or new roof, etc., but it will give you a suggested range to price your home. The AVM will also provide you with a list of nearby recently sold properties. An AVM tool is available at http://www.forsalebyowner.com/appraisal.

5. Evaluate Your Research: Now that you have information about homes currently on the market, data on recently sold properties and a price range, you have all the data you need to compare your home to others in your neighborhood and local area. Evaluate the information you have learned and ask yourself how your home stacks up with the others. Be honest. What condition is it in and how does in compare in location, features and aspects like a remodeled master bathroom?

6. Live in the Now: One of the biggest mistakes sellers are doing in today’s market is pricing their home at price points of one, two or three years ago. The national median home price has dropped more than 15 percent from April 2007 to April 2008 (in markets in CA, FL and AZ the median home price has fallen by more than 20 percent!), and those that price their home too high will just see it sit on the market. The homes that are selling today are those that are priced competitively to other homes are on the market, providing buyers with the sense that they are getting “a good deal.”

7. Take Advantage of Being “For Sale By Owner”: Owners of homes being sold through a real estate agent will have to fork over expensive commission fees equal to 5-to-6 percent of their home’s sale price (or $18,000 for a $300,000 home). Or, in other words, the seller of that $300,000 home will only “pocket” $282,000. As a smart “for sale by owner” home seller, you won’t have that expense and — depending on how quickly you want to sell — you have the unique ability to price your home anywhere in that $282,000-$300,000 range and still come out ahead financially compared to sellers of similar homes. You’ll also be able to get more buyers as well because they’ll be attracted to your home’s asking price.

8. Set the Price: The time has come. You now have a complete picture of your real estate marketplace. Set the price using all the information you’ve learned through the above steps.

Congratulations! You have reached a major milestone in your home selling process. Not only have you arrived at an asking price, you have become an expert in your local real estate market. Prospective buyers will be impressed with your sense of knowledge and honest assessment of your home’s value, and you’ll be able to communicate about its strengths and weaknesses as compared to other homes in your neighborhood, town and area.

For more information, visit http://www.forsalebyowner.com.

Courtesy of ARAcontent