Purchasing A Short Sale Property

By Thierrie Anderson

For real estate investors, purchasing short sale houses be able to be a enormous opportunity. Investors familiar with short sales know the benefit of being able to buy a property at fire sale prices. For investors looking to get into buying short sales, the return can be phenomenal.

With this in mind, how does one go about buying a short sale property? To get started, you must understand that a short sell is only purchasing a property for less than the mortgage value. The benefit to the buyer in this type of transaction is clear. . However, because the lender will ultimately lose cash on the deal, there are a number of processes and potential pitfalls to be aware of. Because of this, a enormous deal of patience is needed through the buying process

Before trying to buy a short sale, you must be aware of the roles that each participant will play in the process as well as their motivation. Obviously the property owner is a big factor in the transaction and may be going through some financial turmoil which is leading to the need for a short sale. Before even beginning the short sale process, be sure that the property owner is willing to complete the transaction and understands the implications.

The next player in the process is the loss mitigation department of the bank. As a financial institution, a lender will only agree to let an investment or mortgage go if the cost of owning it is going to be greater than the payoff. The majority lenders will only agree to short sales if the property is facing foreclosure or non-payment of the loan. Because that is a guiding principle, you must create a circumstance where the bank sees the short sale as the best option.

Now that you understand these two players, the process of convincing each to short sale the investment property to you is a process of working with both parties to create a proposition that will satisfy the needs of both the property owner and the lender. To create a short sale package that you will use to plead your instance to the institution, work with the owner to craft a letter and substantiation that shows an inability to continue to pay the mortgage. Locate any and all areas of disrepair on the property and take pictures of them, and get an appraiser to come out and give an appraisal based upon the lowest marketable value of the home.

The next step is only offering to purchase the property at a given price and submitting it to the institution for approval. Submit your purchase proposition along with the short sale package to the bank and gently push it through the approval process. It the request is approved, your purchase of the short sale goes through. If not, only modify your proposal and submit it again. - 23200

About the Author:

If you would like to find out more about how to invest in short sales or download a free copy of the IP Ware real estate investment software visit our real estate investment site today.

Trading System (Part I)

By Ahmad Hassam

At one point in your trading career that might come soon rather than later, you would want to switch over to a mechanical trading system. Using a mechanical trading system not only helps traders to make decisions and increase profits but it also provides great psychological comfort to the traders.

You will also have to develop a systems approach to your trading. You will find most of the traders using a trading system approach to trading. You will realize the necessity of switching over to the system trade in order to lower the psychological pressure experienced when making every market transaction. Some of the traders may use a discrete trading system while others prefer a mechanical trading system. Trading without a system can be stressful.

The mechanical trading system lacks fundamental analysis capacity. However, the mechanical trading system set of rules may be translated into a computer program for automated trading.

The trading system then generates trading signals that can be used by traders having access to the trading system. The creator of such a mechanical trading system then becomes just another user of the trading system monitoring the computer generated signals.

Many traders over their trading careers develop their own trading systems. Besides the traders using their own trading systems, there are now many actively developed trading systems for sale as computer programs. These trading systems may be taken as grey and black boxes. Their prices might vary from a few hundred dollars to hundred of thousands of dollars.

The most significant thing about these programs is that the traders should be able to accomplish transactions in accordance with the signals generated by the trading system. Sometimes theses trading systems are developed for big banks and corporations.

Majority of the successful individual traders use self developed mechanical trading systems. However, it is very difficult for a mechanical trading system to cope with different market conditions.

Change of market behavior leads to negative results from a previously effective trading system which obviously would require replacement. For example, many trading systems that are satisfactory in trending conditions become highly ineffective in nontrending environment.

Many trading systems now depend on complex mathematical formula which is not understandable by the trader if the trader is not the author of the trading system. The most common disadvantage of these trading systems is the negative balance between he profitable and unprofitable trades.

What you need is a forex trading system that is profitable in the long term. In other words, it gives more winner than losers. Obviously the trading system can only be profitable in the long run if the ratio of the profitable trades is higher than the non-profitable trades. In other words the average profit of each profitable transaction is greater than the average loss of each unprofitable transaction.

Making correction in any mechanical trading system in the process of the trade is almost impossible. The trader must accurately and unconditionally follow the trading system without making any attempt to adjust it to the market conditions. - 23200

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Discover a Revolutionary Forex Robot Trading System. Read about a Forex Trading System with an ROI of 3000% per month.

LEAP Options

By Ahmad Hassam

One person who made history with options was George Soros who is famously known as the man who broke the Bank of England. Great Britain was finding it difficult to stay within the tight exchange rate band set by the European Monetary Union (EMU).

George Soros is a famous name in the world of investing. He is famous for his speculative attacks on currencies that he had the intuition of being intrinsically weak. He had always believed in contrarian investing. Contrarian investing means doing exactly opposite of what the crowd is doing. George Soros had this intuition that the Bank of England could be forced to devalue British Pound. So he bought call options on German Marks and put options on British Pound. He made a bet of $10 Billion by leveraging all the assets in his hedge fund.

Bank of England had made a number of public statements regarding its intention of staying within the EMU. However, within a few days of the speculative attack on the British Pound, Bank of England was brought to its knees as it was unable to sustain the immense selling pressure on the British Pound. Bank of England was forced to devalue British Pound in view of the speculative attack on the British Pound.

In a matter of a few days, George Soros made a cool $1 Billion profit on his bet. Can you make such a bet? Maybe not but this one example show the immense power options have if used correctly. Options are risky; there should be no doubt about it.

Options contract give you the right to buy or sell an underlying security like stocks, futures, commodities or currencies at a price before a certain date. This price is known as the Strike Price. This date is known as the Expiry Date. However, in European Style options you can only buy or sell on the expiry date not before that. Most people who trade options lose money, plain and simple.

Time factor is very important when valuing an option. Further out the options contract is from expiration, you will have to pay a higher premium. As the options contract approaches the expiration date and if it is out of money, it loses its value very fast.

LEAP stands for long term equity anticipation. Have your heard about the LEAP options? So what are LEAP options? It basically means that the option is much like the regular option except that the timeframe to expire is greater than 1 year. LEAP options are basically long term options. Leap options can help you profit over the long haul. You can use LEAP options in options strategies like the covered calls, straddles, spreads and so on.

LEAP options are risky because the option writer usually demands a hefty premium for taking on the long term risk. However, LEAP options can be incredibly profitable if used correctly. The buyer of the LEAP options has the right to exercise the option prior to expiration should the price of the underlying stock move in the money.

See, closer the out of money option is to expiration, faster its value drops. What this means is that the buyer of the options loses the premium that was paid for getting the right to buy or sell the underlying security. LEAP options can be a great trading vehicle for swing traders as they mitigate some of the time decay that is inherent in short term options. - 23200

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Learn Candlestick Charting! Know Fibonacci Retracement!

Getting the Price Right for Success in Real Estate Sales

By Jason Myers

Real estate investing normally entails marketing at one point. This price setting is what will identify how fast the home will sell. But how do you get this cost correctly?

For most house sellers, enlisting of the appropriate cost is dependent on how much they believe the house is worth. But as it has been discovered with this process, the odds of getting it right are very small to none. Sure, the laws of probability asuures you a chance in getting it right by pure estimation but that just about never occurs.

For the greatest price, you need to do a single thing, and that is a house inspection. You need to hire a professional to make the cost estimate of the house and provide details to you with it. That will provide you the margin of pricing the house. These people are so accurate in their dealings and with all concerns being made, like the current trends in the real estate market, they will deliver a nearly exact figure of just how much your property is valued inside and out.

There are a number of instances where you may not be happy with the figure, but you are more than welcome to do improvements that will elevate the price to a bigger number that you can be contented with. You can invest in renovating the home, redoing the paint jobs and swapping a thing or two, up to the time you feel like the general value has appreciated.

The second thing you can do is to wait until the house selling season comes around, but with the unpredictable financial turns, you would not be assured of that actually occurring.

When marketing your house, you must not even think about competing with foreclosed homes because their costs are much lower and attempts to match them would only bring about loss. - 23200

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!

Forex Day Trading As A Career

By Tracy Bernardo

You must realize that in order to become a successful day trader you must make decisions based on a preset plan of action in order to be successful. A day trader cannot work off emotion alone, and he must spend time devising a precise course to follow to avoid trading on a whim or letting his emotions get the best of him. We have researched and devised a set of guidelines to better help the forex trader on a mission to trade daily in the forex market. Do not necessarily think of these as rules, but more some vital principles that you should follow in order to be a successful day trader in the forex market. The key guidelines will help you set a course for profit and riches while keeping your head on and your mind focused giving you the advantage in making sound trading decisions.

1. You Must Stay In Control

There are so many forex systems available to the individual trader today, that it is any wonder he can make a sound decision about what will work for his trading style. Truly the only way to find out is through a process of trial and error. Spend your time looking at reviews, forums and other material to get an idea of how to narrow down the choices in selecting a winning trading system. Test the system against the actual market signals to get the live results. If you have more questions than answers, you can get advice from other online traders or forex portals. Always make sure you know the trading basics of forex before you move too far ahead. Monitor your actions and make sure you are a responsible trader by not making novice mistakes. The worst mistakes are those that could have been prevented very easily by simply reading a bit more. Evaluate all advice before following something that is truly erroneous and could lead to large trading losses.

By testing a trading system using a forex demo account, you will alleviate substantial losses and have the opportunity evaluate different systems that may or may not work with your trading style. This is important because we all trade differently, and what may work for one trader does not work for all traders. Do not believe the sales pitch unless you are sure the system can work and has worked for other traders.

2. Have A Clear Focus

Being vigilant in your pursuit of a successful day trading career is only part of your key to success. A clear and focused approach will allow you keep your attention on the important decisions that must be made each day while trading in a very liquid and volatile market. You must be ready to make adjustments to your trading patterns at a moments notice as forex often quickly changes directions based on world events or political circumstance. Successful traders are the most focused of traders, and they trade on fundamentals or news, but never on emotion. If you are prone to react directly on your emotions, you will need to either spend time to change your behavior patterns, or you may want to move away from a career as a forex day trader. You can quickly find out if your trading on your emotions by setting up a demo account and evaluating your trading strategy and reaction to the market.

3. Keep Immaculate Records

Let history repeat itself if it puts money in your pocket. In otherwards, if you made successful trades in the past then we hope you are able to repeat those when the opportunity presents itself again. Just as important is learning from our mistakes of the past. It is very important that you track everything when trading forex online. By tracking your progress you can you learn from both your profitable and your losing trades. By repeating successful trades, you can literally train your subconscious to make the right decisions when you see that same forex fundamentals occurring in the market once again, triggering your instincts to make a positive trade by repeating a success of the past. While working with an inferior trading system, you may find you can modify or customize that particular system to meet your needs. Essential note-taking and record keeping will prevent you from making mistakes of the past, and allow you to replicate your previous successes now and in the future.

4. Fear Is Your Worst Enemy

Successful forex trading, especially when trading daily can bring with it both losses and profitablity. Don not let the losses you experience curb your enthusiasm or let fear overtake your ability to make successful trades. You must overcome any fear and be able to successfully make decisions affecting your forex trading at a moments notice. Forex trading is often volatile, and the speed and liquidity of the market make it a fantastic way to earn a living each week. You must have the ability to make decisions quickly and efficiently. At the same time, ego can kill your trading success just as quickly as fear, especially when you decide to move forward with a trading system too quickly that your not quite familiar with, or one that simply does not work for you. Forex systems are sold every day on the internet, and while many are good and have stats to backup their claims, they often do not work as well as advertised. Remember, every trader has a different trading style, so with that being said, not every trading system works with every trading style. Learn to dump a trading sytem that is not working for you, along with an ego that is draining your capital. The forex market conditions change very quickly, and they may take a toll on your health, so make sure you feel good, have a clear head, and are capable of making instant decisions about your trading, and you will be very successful at trading forex. - 23200

About the Author:

Of course, all exchange trading is risky but the hazards of trading forex are far more vast than stocks. That's why you should read Tracy Bernardo's report on the key points you should respect before forex trading in a any market.