Real Estate Scams to Watch out For – MD Properties Qatar

Whenever you discover a movement money involved you are certain to discover scam artists who are more than prepared to part you with your well-deserved money. Real estate is same and there are many scams that people with less than honest intentions will try. By being aware of these regular real estate scams you can make sure you don’t become a victim yourself and if something does seem too good to be true have an idea of where you can burrow for more information.

REAL ESTATE SCAMS THAT TARGET RENTERS

This specific scam targets both home sellers and individuals looking for a place to rent. The scam artist in this scam will take photos of a home for sale from a real estate website and then post those photos on rental sites hoping to draw in potential renters. Some portion of the scam also involves not actually getting you into the rental home by saying it is occupied so only pictures will be used. Even if you are allowed into the rental home you still need to be careful as there are some rental companies that let anyone in through a home unattended so long as they provide some identification and a credit card. The scammers can get in using stolen identities or using your own information you gave them on an application.

Generally but not always the rental amount they promote the place at seems too good to be true. For example you might see a rental advertisement showing a nice home for rent for only $700.00 where regularly such a home would rent for $1200. The price difference for rent rates should set off alarm bells in your mind but the rental scammer is hoping to con you by urging you to be quick since a house renting at that rate won’t keep going long.

The initial parts of the scam may even make the whole thing seem legitimate. The rent scam artist will usually have an official looking application, request money for credit/personal investigations and may even ask for request references. If the scam artist is interested in a quick dollar then they will just take your rental money and run. Others may utilize the data you gave on the rental application to steal your identity as well.

The final part of this scam usually plays out when the scam artist tells you that you have been approved and that you are required to provide money to include first month’s rent plus a security deposit. The scam artist may ask for cash or money order and will even go as far as giving you a key to the rental home. Unfortunately for you and for others who fall victim to the scam you and a number of other people will show up at the same property with fake keys. Meanwhile the home seller is just as confused as the victims as to why so many people are showing up saying they are there to move into a home that is really for sale.

The best ways to avoid this scam is to follow the old adage if it looks too good to be true it usually is. Before giving out your information or money on rental applications that may be fake attempt to verify that the home is for rent and not for sale. A simple google search of the address may show you if the home is for sale instead of for rent from the results that pop up as real estate listings are usually the top result for home address when they are on sale. You need to view the inside of the home too to see if the person claiming to offer it for rent can actually get you inside. Given enough notice a property owner or landlord can get you inside a rental home to see it, if it is truly for rent. If the scammer won’t let you in and keeps making excuses it may not hurt to knock on the door and ask whoever is living there if the home is indeed for rent and soon to be vacant.

Other ideas to avoid this scam include checking county records to see who owns the property. If you see a company LLC name as the owner of the property it is more likely to be a rental unit. Above all don’t be pressured to rush into providing an application due to the rent being low and time being of the essence. These types of scams rely on everything moving very rapidly so that the scam artists can take the money and run before they are caught.

MORTGAGE FINANCE SCAMS

These types of mortgage finance scams can affect both home buyers looking to get a mortgage to buy a home and homeowners who may be looking to refinance their home loan. Often times these fake mortgage lenders advertise on social media groups, Craigslist and other online venues offering to help people with no credit or low credit scores to get a loan. Part of their scam may involve charging application fees for borrowers when they submit their application. The application is also designed to extract as much personal information as possible for use in identity theft. After paying an application fee and providing your personal information you may be asked to pay more fees to cover random things but the end result is the same, you will not get any money to buy a home.

The best way to avoid this type of scam is to only use licensed mortgage loan providers. Most states require mortgage providers to register with the Nationwide Mortgage Licensing System (NMLS) and most mortgage providers as a result will have an NMLS number to show they are in fact legitimate licensed mortgage providers. If a person trying to help you get a mortgage loan or refinance is not listed on NMLS website or does not work for a company listed with that website you should look elsewhere for help.

Additional signs of a mortgage scam include a contact email address from a Gmail, AOL, Yahoo, Hotmail or some other publically available account. Most legitimate mortgage providers will have their company name in their email address. Better options to get a mortgage include talking to local bank and mortgage providers, getting recommendations from family, friends, and your Realtor to make sure you only work with legitimate lenders.

WE BUY HOMES FOR CASH SCAMS

There are a few legitimate companies out there who will buy your home for cash regardless of its condition.  While you will be better off working with a Realtor to do some minor preparation and put your home on the market these cash for homes companies do offer you a quick way out of your home.  As a result of their success scam artists also have decided to take advantage of homeowners desperate to sell their home.  Sometimes these scam companies will charge application fees or some other type of fee and then do nothing to buy your home.  Anytime someone is asking you for money up front to buy your home you should think twice about giving them any money.

Other cash for homes scams may involve having you transfer the deed for your home to the buyer yet leaving all the mortgage debt or any other tax debt still in the seller’s name.  End result is you may have gotten some cash for your home but the debt collectors will still come looking to you to pay off any debts that still exist on the property.  Best bet to avoid these types of scams is to hire an attorney to review any and all contracts you have to sign before you sign the documents.  If the buyers don’t want you to bring in an attorney or just want things done as fast as possible then you may want to reconsider.

SCAMS THAT TARGET HOME BUYERS, HOME SELLERS AND REALTORS

This scam in particular is more devious in that it relies on hacking into emails that are sent from the home seller, home buyer, Title Company or Realtor and using that information against the seller or buyer. Once hackers have access to some information regarding a real estate transaction they will usually send fake emails disguised like official email from the Title Company, Realtor, or Mortgage Company that state the buyer, seller or Realtor will need to have money wired as part of the transaction for selling a home. In many cases wire transfers are rarely done during a real estate closing and instead title companies prefer the parties to bring a certified check. If sent by wire the money is wired to a foreign account and never to be seen again by anyone.

If you do get an email requesting you wire money as part of a real estate transaction always call to confirm that the email was in fact sent by some who needs to have the money to help close the deal.  As mentioned above it is rare for the sale of a home to involve the use of wire transfer for money. If you do get directions or requests for wire transferring of money talk to your real estate agent, closing processor and mortgage loan officer to confirm if the request is a real one and not a scam designed to cheat you out of your money.

MD Properties - Qatar

Documents Needed When Applying For a Mortgage

You are excited about the prospect of owning your own home, have worked hard to ensure your credit score is decent, and believe you are just about ready to discuss loan options with a lender. Before meeting with a lender, or going out house hunting, you need to start gathering the documents needed when applying for a mortgage. While some mortgage application delays are out of your hands, being proactive and having the documentation available upfront will ensure the process is as smooth as it can be.

While each situation is different, and some documents may not be necessary for your loan program, here is a generic list of the documents you will need to have handy when ready to begin the home loan process.

Required Mortgage Information:

Based on the new Qualified Mortgage rule, enacted by the Consumer Financial Protection Bureau, there are certain documents that loan officers will ask for in an attempt to eliminate risky lending practices. Some lenders may require more data depending on your unique situation and their lending policies. Below are documents frequently needed when applying for a mortgage?

·         Primary identification for Patriot Act compliance

·         Secondary identification (Social Security Card, passport, or alien registration green card)

·         Current credit report

·         Work history for last 2 years

·         Name, address, and phone of employer

·         Home address for last 2 years

o    Name, address, and phone of landlord for verification of timely payments

·         Pay stubs for last 2 pay periods

·         Bank and asset statements for last 2 months

·         Full tax returns and W-2 forms for last 2 years

o    If you cannot find a tax return, request it from the IRS  on Form 4506

o    Alternatively, complete and sign a Form 4506-T- or 4506T-EZ to permit the lender to access to your tax return

·         If self-employed, in addition to the above items, have these documents ready:

o    1099 for last 2 years

o    Form 1120S or K1

o    Both personal and business full tax returns for last 2 years

o    Proof of self-employment (signed letter of business from a CPA or employer liability insurance letter)

o    Current balance sheet and profit/loss statement

·         If retired or disabled, the following documents need to be available:

o    Pension award letter

o    Social security award letter

o    Supplemental security income benefits

o    Permanent disability award letter

o    Recent retirement account statement

·         Signed sales contract and appraisal

·         Name, address, and phone of closing attorney

Additional Loan Documents:

These are all documents that you should have access to in-case your lender wants to see them during the mortgage process. Some of these items you will need regardless of the type of loan requested while others may only be necessary based on the loan type. As a fail-safe, have as many of these documents in your possession and avoid possible delays. While not all-inclusive, this is a good representative list of additional loan documents you may need to provide lenders.

·         Veterans Certificate of Eligibility

·         DD 214 or statement of military service

·         Written salary and position verification

o    Some lenders call your employer during the underwriting process to ensure you are still employed

·         Cancelled rent/utility checks

·         Bankruptcy documentation

·         Gift letter

o    Proof of withdrawal and deposit

o    Amount of gift

o    Statement that funds are a gift and do not require repayment

·         Divorce decree or separation agreement

o    Alimony/Palimony payments receipt

o    Child support payments receipt

·         Most recent IRA/Retirement/401K statement

·         H-1 / L-1 visa for non-resident aliens

·         Copy of business license

·         Bonus information

·         Copy of bond insurance

·         Rental property income

·         Existing consumer debt information

Refinancing / Own Additional Property Documents:

This is a representative list of documents you may be asked to provide if you are refinancing your primary residence or own additional property. If you utilize the same lender who originally provided your mortgage, less documents may be required. Each situation is different, and lender requirements can vary, so be prepared if you are asked to provide additional documentation or new forms.

·         Property tax bill

·         Deed from current loan

·         Note from current loan

·         Homeowners insurance policy

·         Title insurance policy

·         Existing home equity loans

·         Current home appraisal

·         Homeowners association statement

·         Rental/lease agreements

·         Mortgage statements for all owned properties

·         Name, address, and phone of condominium management company

The home mortgage loan process does not need to be difficult or confusing, and if you are working with a buyer’s agent, lean on them for quality advice. A little work on your part to ensure you have the documents needed when applying for a mortgage will speed up the process and ensure your experience is a good one. Keep reminding yourself the prize at the end of the process is your dream home or a refinanced home loan that better suits your current situation. As always, happy house hunting!

MD Properties - Qatar

Top 6 myths about home pricing

Overpriced home don’t sell.

First of all understanding how real estate work is critical to seller’s success to the selling quickly at the best possibilities (price).  If you want best result don’t buy into the following myths about the pricing your home to sell. You will only be setting up for failure.

1.      An offer that comes in fast means the home is price too low

If you get offers in the first few day then you have prices it correctly. Fear not if you are thinking you prices it too low because you may get multiple offers taking you over asking price.

The market will adjust for you. In a seller’s market the inventory may be low with a limited number of homes available to buy. In this situation you may find that offers come in quickly.

It is critical that you find a real estate agent you can trust who knows the market and how to the price a home so you will get the best possible price.

2.      Just wait it out and the offer will come

Many people assume that if they wait long enough a good offer will come. I have heard so many times from sellers that they are in “no rush” and can wait for that high offer to roll in months down the road.

Most homes priced correctly will sell in the first few weeks. Serious buyers have seen all that in on the market.

The result is the buyer wait for the best possible home to come on the will assume that there is something wrong with it or it is grossly overpriced.

The market will determine the price and if you don’t get any showings at all in the first weeks you can assume it is highly overpriced and the buyers are waiting for you to get real.

The longer the home sits on the market the less negotiating power you have. Buyer will assume you are desperate.

3.      More marketing brings higher prices.

The market value of your home has nothing to do with how many ads you run or how extensive your social media marketing is.

You may expose your home to qualified buyers but without the right price they will not be making an offer anytime soon.

Remember that real buyers are represented by an agent and have been pre- approved by a mortgage lender. Their agent will be sure to do their homework on any property that they are interested in and advise them as to the fair market value of the home.

They are representing their client’s best interests and will not let them overpay for the home.

The risk here is that the property may not appraise and they will not get a mortgage.

This will be due to a low appraisal value on the property. Overpricing wastes everyone’s time.

4.      What about room for negotiating? Let’s go high

This is very common myth and if you set the price too high you will never reach a middle ground if you happen to get a low offer.

If the price is too high buyers will be lower or more realistic price be offered and the homeowner become offended and refuse to work with these buyers.

Negotiating is very important and your agent will price your home correctly leaving you some wiggle room. Trust their experience and let them guide you.

5.      More Open house will bring high price

A common real estate myth is that an open house is a great way to sell a home and get a high price for it. Many seller want and expect their agent to do open houses every weekend and are under the false impression that this will bring in a higher price and sell faster.

In all the years I have been in real estate I have only sold 3 houses as a result of an open house and none of these resulted in bringing in a higher price than fair market value.

6.      Let’s just wait for right buyer.

You just know that the one buyer is out there and if you wait long enough they will come. In working with buyers and sellers over the years I have heard many times that “oh well, I guess it wasn’t meant to be.”

They just have to wait longer for that one in million buyer that is not represented by an agent to come along and pay more that the home is worth.

An agent that represents a buyer’s best interest will be mindful of the price and ensure their client is making a sound financial decision and not an emotional one.

Even if buyers insist on moving forward with the purchase, unless they are a cash buyer, you run the risk of the home not appraising and the buyer not being able to obtain a mortgage.

Wouldn’t it be much easier to price the home correctly and sell it fast rather than constantly keep your home perfectly clean and staged for months so it would be ready for showings at a moment’s notice?

MD Properties - Qatar

7 ways to make money in real estate

At this point, most people are aware of the fact that there can be large profits in real estate. What very few know, however, is that there are many, many different ways to make money in the real estate industry. Here are some of the top real estate business ideas that you can use to tap into the lucrative property market.

This ways to make money in real estate

1.    Become a landlord.

2.    Flip property.

3.    Manage property.

4.    Bird-dogging.

5.    Do real estate photography.

6.    Become a real estate agent.

7.    Combine real estate business ideas.

1. Become a landlord

One of the longest standing real estate business ideas is to be a landlord. By owning a property and renting it out, you can make money different ways:

·         Through the income that you will get as lease every month.

·         Through the appreciation of your property’s value after some time. You realize these gains upon selling the property.

Between these two, being a landlord gives you both a reasonably good income and a solid investment resource.

Curiously, land lording for real estate benefit has been around since medieval times, when actual lords owned land and collected payments from those who worked on it.

In more present day times, real estate has created many millionaires and billionaires throughout the world.

It is conceivable, however, to do it low maintenance, particularly if you use a property management company to take care of day-to-day tasks at your rental properties. You can also run your rental business from your own home, though numerous landlords do eventually choose to set up an office for accommodation.

2. Flip property

A Standout among the most prominent real estate business thoughts, property flipping has been promoted by few TV programs over the last several years. Property flipping involves buying a distressed home, setting and modernizing it and then selling it for a benefit, more often to a retail buyer. While flipping a house does not offer the proceeding with income of rental pay, it can make huge, one time benefits on individual properties.

Numerous general contractors will purchase and flip one or two homes a year for additional cash as an afterthought. On the opposite end of the spectrum, there are real estate investors who specialize almost exclusively in flipping. Like rentals, a property flipping business can be run from your home if you choose.

3. Manage property

It’s a typical misconception that you have to own property to make money from it. If you want to jump into real estate without needing to own a property, try property management. Property managers handle maintenance, upkeep and in many cases rent accumulation for a property owner in return for an expense.

Though you could run such a business from home, it will be easier to have a dedicated business location, as you’ll require capacity for paint, drywall, cleaning supplies and other regular maintenance materials that will be utilized as a part of the properties you oversee.

4. Bird-dogging

Real estate investors need to be able to find good deals in order to run their businesses. This predictable requirement for deals has offered rise to an entirely new set of freelance real estate professionals, known as bird dogs.

The truth of bird-dogging is that it is nowhere near as easy as some people make it out to be, as investment specialists to will never pay for information about properties that are already listed. If you can seek out new sellers before a property is listed, however, you can make some real money as a bird dog. Bird-dogging can be done part-time or full-time, and most real estate bird dogs work from home.

5. Do real estate photography

Not all real estate business ideas have to do directly with the properties themselves. A few, such as being a real estate photographer, involve marketing the property. Real estate photographers take photos of homes for sellers or landlords that are then posted online as aspects of offers materials.

As a real estate photographer, your hours are generally controlled by the number and sizes of houses you have to shoot in a given day. Larger houses require more shots and therefore more time. Many real estate photographers choose to base their businesses in their homes, though most of the actual work will be done on-location at the properties being photographed.

6. Become a real estate agent

While some business plans of action, like bird-dogging and flipping, are more novel, being an agent has been a typical real estate business idea for as long as the advance property showcase has existed. Becoming a real estate agent is more troublesome than breaking into some other parts of this industry, as it requires formal training and state confirmation in most spots. Being a real estate agent is also one of the few business models in which working from home is rarely a workable choice.

7. Combine real estate business ideas

As should be obvious, the real estate industry has very diverse opportunities for aspiring entrepreneurs. One of the best ways to build a small real estate business, however, is to combine different business models that make well together.

Numerous investors choose to both rent and flip properties to give themselves more diverse income streams. If you combine multiple ways of making money in real estate, you’ll be able to discover achievement all the effortlessly.

MD Properties - Qatar