Finding a way out of a real estate contract may be a bit tricky. However, it is a task that must be completed to ensure a smooth transaction. The wise thing to do is let the seller know ahead of time about any prior engagements that you may have such as meeting with at business partner to discuss the contract.

It is best if you schedule the meetings with your business partners three to four days in advance for reasons necessary to conduct business transactions. This will let people know that you are not only proficient in your particular business, but you are also efficient and well organized.

A Lot Depends On Wording

In the business of real estate investing, we have what is known as an escape clause. Anytime an escape clause is required, you should use a standard contract, altering words to best benefit you. The contracts that you present to your sellers could determine whether or not you land the deal.

In some cases, you may be allowed to take off some specific information from the contract without the risk of violation. This is to protect yourself and it gives buyers a way to earn up to a thousand dollars in repairs and list the property on the MLS.

The reason it is called an escape clause is because it is way to escape from specific deals. You will always find a section in the contract noting the amount of time that you have to take advantage of such procedures. It all comes down to the wording. If you are not knowledgeable of real estate terms, you risk being taken advantage of if you do not ask questions and seek answers in the real estate language. The first investment that you should make is the investment in yourself. Take the time to educate yourself on all things real estate related and in no time you will have more cash flowing in than you ever thought possible.

Property Options Australia
Property Options Blog © 2006 - 2009

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Real estate investment courses teach you all the facts that you need to know about investing in the property market. Most online courses provide all the important information that you will need in order to begin your career as an investor in the real estate market successfully. In fact, some investment courses are completely digital, which means that you will be able to download all of the educational materials that you need directly to your computer. Most of the time, there is not waiting involved. As soon as you sign up for the courses, you are sent to a download page that grants you access to the materials that you need.

What Exactly Will You Learn

Online courses for real estate investing offer an abundance of useful information that every investor needs to know, including:

• How to invest in real estate even when you have low income, no savings and bad credit
• How to find rent to own, lease options and foreclosure properties
• How to participate in government programs for first time investors
• Understanding the cycle of the real estate market and how to know when to buy and when to sell
• All of the real estate terms and jargon that you need to become familiar with in order to succeed
• How to calculate the true value of any property
• No money down deals: what they can do for you and what you should avoid
• How to research properties and effectively generate a positive flow of revenue
• How to negotiate successfully for the best possible deal
• Simple ways that you can increase the value of any investment property
• How to manage your property in a way that will give you the best possible return on your investment
• How to be a landlord and manage tenant relations

Property Options Australia
Property Options Blog © 2006 - 2009

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This is the final installment of our series on understanding real estate terminology. I hope that you have found this series to be useful and beneficial.

• Principal is the amount of money that you borrow. Every time you make a payment on your mortgage you reduce the principal.
• Rates are the annual, quarterly, half-year or monthly payments that need to be paid to the local shire councils for things such as water, sewage, garbage collection and other various amenities. Some rates are also levied to help cover the cost of improvements to the roads and parks. Council Rates are a separate form of property tax that is influenced by property values. The more your property is worth, the more you will be assessed for rates. The rate that you pay will increase as your property value increases.
• Repayments are estimates of how much the minimum amount of money you would need to pay in order to pay off your home over the full term of the loan. Be careful when reading these, as they can be pretty scary.
• Restrictive Covenant is a promise that you agree to refrain from doing something. Some properties have restrictive covenants that prohibit building within so many feet of a body of water. Restrictive covenants can be enforced by a third party.
• Strata Levies vary depending on the age and condition of the building. In tall buildings, or high rises maintenance on the lift can cause the strata levies to increase. Typically these levies range from $300-$3000 every quarter.
• Tenant is a person who pays you to live on your property. The property still belongs to you, but they are paying for the right to live there under a contract. Real Estate agents can take care of helping tenants find a place to live and bringing qualified tenants to landlords.
• Timeshares are buildings or condos that are owned by a large number of people who have the “right” to use their share of the property for one to two weeks a year depending on the terms of their contract.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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Here’s another installment of real estate terms as we work our way through the alphabet for a better understanding of property investing and related transactions.

• Mortgage is a pledge that you make to a creditor as security for performance of an obligation to a debt or to repay that debt. Your Australian mortgage can be negotiated so don’t be afraid to ask.
• Mortgage Indemnity Insurance is insurance that you pay that benefits your lender. This type of insurance is designed to reimburse your lender if you borrow a high proportion of the value of your property and can’t keep up with your mortgage repayments. Your credit provider can insist that you pay for this type of insurance under Australian law.
• Mortgage Offset Accounts allow you to offset the interest charged on your mortgage by using a credit balance against the mortgage debt. For example is your mortgage is $200,000 and you have a credit balance of $50,000, the interest is only charged for the net balance of $150,000. These type of mortgages provide a lot of security by allowing you to access funds in the event of an emergency.
• Neighbors are the people and building that are in close proximity to your dwelling. Neighbors play a very big role in your happiness or unhappiness in an area. Make sure you check out the property that you are interested in at many different times of the day and night to get a feel for what your neighbors are like at these times. This way you can be sure that you are not moving in next to the all night parties, or the early morning noise makers.
• Open House is when a real estate agent opens up a house for a pre-determined amount of time to allow the public access to the home to view it. Open houses usually only last for a couple hours and are considered to be low pressure ways to generate a sale.
• Option Fee is a deposit that you give to a real estate agent to hold an option period allowing you to further consider purchasing the property without putting any money down on it. The money spent on the option fee will go to the vendor if you decide not to buy the property.
• Over Capitalized means that you have paid too high of a price for a property or that the property has been upgraded so much that it is worth much more than similar properties in the area. When real estate has been over capitalized it is difficult to recoup the investment.

Check back next time for the next installment to help you get a better understanding of real estate terminology.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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And now, the latest installment of definitions to help you understand the myriad of real estate terminology.

• Home Equity Loans are a line of credit that is secured for the purpose of buying a home. This is a first registered mortgage over your residential property.
• Investment Property refers to a piece of property that has been purchased with the express purpose of netting a profitable return on the property. In Australia right now a good investment property would be any rental residence. Investment properties that meet the demand of renters can net a good profit especially along the Gold coast.
• Interest is the fee that is paid to the lender of a loan. There are two different types of interest. The first is called ‘simple interest’ or ‘flat rate interest. This type of interest has a fixed amount of interest that is paid each year on the amount of money that has been borrowed. The other kind of interest is called ‘compound interest’ Compound interest is calculated on the initial principle as well as the accumulated interest over previous periods.
• Land is whatever the deed holder owns up to the sky and down into the Earth. A few exceptions are mines and minerals which are owned by the State and the air space is limited to reasonable usage.
• Lease is a verbal or written document that allows a person to gain possession of a property for a specific amount of time without actually owning the property. The lease usually outlines terms and agreements in relation to the property in regards to rent and time of occupancy.
• Leverage happens when you borrow money to purchase an investment. In order to magnify the rate of your profits from capital growth or your income from the investments. Often times investors will leverage one property in order to purchase another.
• Lien is a form of security interest that is granted over an item of property to secure the payment of a debt or performance of some other obligation.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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