No Credit, No Money, No Problem! Getting Started in Real Estate Investing

Despite what the "no money down" courses suggest on television, having money does make real estate investing much easier. In real estate, cash is king.
When you have lots of cash you can buy properties at a deep discount by offering all cash. You can rehab a property easily. You can swing deals that just can't be done in time by someone applying for loans. Cash makes life easier.
What if you don't have any cash at all? Worse, your credit is destroyed and you have to work at McDonalds at night to pay your bills. You don't have much time, you don't have credit, and you don't have money. Are you just hopeless? Are your dreams of profiting from real estate dead?
No. You can still make money in real estate. Believe it or not, there are still lots and lots of ways you can profit. Let's cover some of them.
Partnering or investing with another person or persons is on method. Find someone with credit or cash. You offer to do all the work of finding the property, and put the deal together. They put up whatever cash is needed, and then you split whatever profits are made. It's much better to have 20%, 40% or 50% of something than 100% of nothing. Both you and your partner will profit.
Manage properties. If you have management skills you might offer to manage an apartment building in exchange for a management fee or even a free apartment. You can get a free apartment by managing storage units as well if you are willing to put up with constant interruptions.
If you manage a building successfully for a while, you might ask the owner for an option to buy the building should he or she ever decide to sell. They know you; they trust you, especially if you do a good job. A "no money down" sweet deal is in your future if you treat that owner right and do an excellent job.
Getting a license and working as a real estate agent is another way. A lot of people overlook this entry way into investing. There are many agents already in your area, and you would be new and inexperienced, so it could take time to earn a living. If you did it part time however you'll still know the market well and you'll have access to "players" or people that invest. They might be your future partner if you do a good job for them. Find an investor a few juicy deals and they will be your friend for life. Offer to partner with them in the future and they might just take you up on it.
Be a Notary Public. A Notary is just someone that has taken an easy test, licensed by the State, who can put their seal on documents to certify that the parties signing are who they say they are. It's super easy to become a Notary. Why would being a Notary Public help you in investing: for the contacts. Investors need documents signed and notarized sometimes in the middle of the night. If they know you can perform this service for them, they will come to you. They will have your business card with them at all times. Having people with money, especially real estate investors and agents, knowing your name can launch you into a nice investment if you play it right.
Wholesaling properties or bird dogging can make you instant income without credit, financing, or the need for cash. A bird dog finds run down properties, or even just great deals, for other investors. They either get the deal under contract then assign it to an investor for cash, or they sell the lead to an investor. Whole books and courses have been written on this method of making money with real estate.
As you can see, if you have nothing, you can still make money in real estate. Don't let anyone tell you it can't be done. It can.

Cape Verde Property Buying Guide

Emerging Cape Verde property market has been in conjunction with growing visitors to the tropical island with surfing and year round sunshine. Infrastructure expansion is greatly planned with an international airport, 4 or more tourist designated islands, road networks and inward investment relaxation of rules to accommodate foreign property buying. Cape Verde government is keen to attract many visitors on prolonged stays and as tourists to the number of islands earmarked for tourist development. Good returns for property developers that wish to build houses and apartments for holiday rentals to sell on or sit back and take high rental yields. Of course tax is due on rental profits, although substantial incomes can be made investing in the right property or land for development. Risk is always present buying property in an emerging market, although Cape Verde seems very promising as a long term property investment proposition.
Buying Process Cape Verde Property
Search for property and putting in an offer is the first stage of property buying. Estate agents and property developers can help with land and buildings for sale or you can locate property for sale on many websites and deal direct with owners and house builders and save money in the buying process. Good idea to conduct searches on the local area and property through Land Charge searches at the Municipal Authority and Land Registry Offices in Cape Verde. Searches here will provide a lot of information on the property:
- Debt attached to the property. Check to see all taxes, utilities is paid on the property as the new owner would inherit all financial liabilities.
- Restrictions on the property, property transfer and title.
- Valid habitation permit that goes with a valid conveyance of the property.
- Land register certificate "Certidao do Registo Predial".
- Map location of the property "Planta de Localizacao".
- Tax information on the property "Certidao Matricial".
Retain the services of a good lawyer who will arrange for the initial contract to be signed and agreed by both parties in property buying, and all other legal matters. Of course have a lawyer check all the details above and if the property is registered and in the sellers name and has the right to sell the property.
- Get hold of a tax card that is required when buying property and paying taxation due.
When signing the initial contract in the lawyers or builders (Promissory Contract of Purchase and Sale "Contrato Promessa de Compra e Venda") office a deposit is due and the contract is binding, meaning you must buy the property and the sellers must sell you the property. Contracts are as mentioned signed in a lawyer's office known as a Notary Public in Cape Verde.
When you have completed all the searches on the property and your lawyer says that everything is no problems with the property and the survey check on the property is all clear the final contact will require to be signed. Escritura is the final deed of conveyance that gets signed in a Notary Public in Cape Verde and provides the buyer of the property a document proving they are the rightful owner of the property. The Notary will register the title deed with the local land Registry and local Municipal Authority enabling enforceable title, also your lawyer can register the property. Final balance due on the property is due at this point.
Notary, lawyer, survey fees are also due, and stamp duty at present 2.5% of the final property buying price, all which are payable at the time of the final contract signing.
- Taxes are payable, please remember. Capital gains taxation when buying land for building is payable at different rates according to the sales price of the end user of the property. Sales vales in excess of 100% of purchase price of the land are then due, with other capital gains tax levels due if the increase in selling price is 30% or more.
- Transfer tax at 3% payable at the final contract signing stage.
- Annual taxes are due at present in excess of 3% per annum.
- Capital gains tax is also payable at 3% presently for the property and a "Declaracao de Mais Vallis" Capital Gains Tax Statement is also required to be sent to the Cape Verde Government within 30 days of the deed being issued.

A Traveler's Guide to Italy

Italy, a founder member of the EU, is a relatively young country which was only unified as a nation in 1861. It has land borders with Austria, France, San Marino, Slovenia, and Switzerland while the Vatican City is a separate state within Rome.
The country's long coastline, stretching some 7,600km, has contributed to problems with immigration control. Besides deep rooted problems, such as the need to import most raw materials, the country is also plagued by corruption and crime.
The economy is divided by the industrial north and less developed and poorer agricultural south.
As in much of Europe, property prices have been rising. According to the Royal Institution of Chartered Surveyor's European Housing Review 2005, the housing market has been on 'a sustained upward swing for five years'. Last year 'agents were reporting that market activity was still brisk - although it had fallen below its peak'.
Most Italian property is sold as freehold although Italian property law recognises various other property rights and tenures. Usufruct is a right to use the property of another for a fixed period but not to change its nature. Leasehold rights, which may be for a fixed period of 20 years or more or in perpetuity, allow the lessor to use the property as if he or she were the owner, subject to a requirement to improve the land and pay a rent. Building rights entitle the holder to construct a building on land belonging to a third party, or maintain a building standing on land belonging to a third party.
Building rights may be for a limited or unlimited period of time, but if for a fixed period, ownership of the building reverts to the owner of the land on their expiry. Italian property transfer processes have some similarities to France. Based on land registration, the state regulated process involves both purchaser and seller using the same state appointed notary to complete the transaction.
The process begins with a formal and nominally binding offer to purchase arranged through an estate agent. If accepted during the set period of the offer, this is followed by a preliminary contract signed by both parties (at which point a deposit will be paid). Finally comes formal completion.
The notary, in front of whom the completion documents must be signed, will verify that the documentation is correct, that the property is free from registered encumbrances and checks the identities of the parties involved. Searches beyond what is included in the registry are unlikely to be exhaustive. The notary also collects the taxes and duties involved. These vary between Non-resident property purchasers are treated differently to resident purchasers in a number of ways. In particular they will be obliged to pay higher registration fees, although residence can be claimed within a fixed time subsequent to the purchase.
Total fees and charges are likely to amount to between 5 per cent and 20 per cent, including estate agents fee, if applicable, registration fees or VAT if a new property, and the notary's fee. Fees in the order of 8 to 10 per cent are also payable on sale of a property.
Some charges are based on the registered value of the property, which is likely to be less that the actual purchase price. This also applies to local property taxes, the amount of which varies from region to region. The Imposta Comunale surgli Immobili is paid by both resident and non resident owners - although the amount is halved for property that is not habitable. In addition there are likely to be charges for local services.
Italian taxation is undergoing reform. From the start of 2005 personal tax rates have been set on a graduating scale ranging from 23 per cent to 39 per cent, with a 4 per cent supplement for income in excess of 100,000 euro.
Property owners are obliged to file annual tax returns but are only taxable on income arising in Italy. However, there tax is levied on the notional rental value of the property (based on its registered value) whether or not it is rented out. Both residents and non-resident property owners are subject to Italian inheritance law and tax. But the good news is that currently there is no capital gains tax to pay on property gains.

Bank Reference Letters Treated As Suspicious Transactions

Executive Summary - It has come to our attention that the USA is starting to treat "Bank Reference Letters" as "Suspicious Transaction" events that require reporting to the USA government. We highly suspect that many other governments are doing the same thing with their banks when a reference letter is requested.
Many clients have noticed in recent months that many banks are reluctant to issue one and many banks outright refuse to write it. The banks are refusing to issue reference letters because they would then have to write a suspicious transaction report and they try to minimize the amount of these that they generate to avoid government audits and investigations. Panama banks all require a bank reference letter even if you are opening the account in person. This is the case with almost all the banks around the world. Do not do this. We can assist with opening a bank account where a bank reference letter is not required.
Apostille - The next alarm bell concerns getting documents apostilled. An apostille is a government worker who certifies notarized documents. Basically they are there to certify the fact that the notary is in fact a notary. In many countries the apostille works for the national government. In the USA the apostilles work for the various state agencies, generally found in the Department of State that each of the states has. Many offshore banks ask their new account applicants to notarize and then apostille documents like passports. Panama banks all require this unless you open the account in person.
Recently the apostilles in the USA are starting to ask the people to fill out a form explaining what the apostille is to be used for. This is similar to the bank reference letter in that it is probably being reported whenever anyone wants a copy of a passport to be apostilled. Do not get any ID documents or anything else you want to keep private apostilled. Notarized only. So far we have not been seeing any notaries report any suspicious events or even ask what the notarized document is to be used for. Do not use a notary at a bank, credit union, savings and loan, or a stockbroker's office. These are tightly regulated businesses that are required by law to report any and all suspicious transactions. No apostilles is the safest course of action.
Implications - It is a common practice for the offshore banks around the world to require a bank reference letter when opening a new account be it a corporation, trust or a personal account for a foreigner. It would be rare for a country to require a bank reference letter for citizens of their own country. Bank reference letters are required when opening a bank account in another country. It is the early warning flag to the government about an offshore account being opened. Opening bank accounts requiring a bank reference letter are now ill advised. Under no circumstances should one obtain a bank reference letter. We can arrange bank accounts that do not require such a bank reference letter in a few select banks located in tax havens with bank secrecy.

Buying Property in Buenos Aires, Argentina

From basic information to nuance
We feel that Buenos Aires is the kind of city that you would want to not only visit, but return to time and again; to the point that staying at hotels would make no sense. To the point, furthermore, that you would want to have a place of your own to hang your hat in, every time you came down.
Buying property in Argentina is both an exciting and complex procedure which, to be sure, involves time and prudence. This holds true not only for expats wanting to make an investment, but also for locals with a desire to own their first home.
This of course, becomes far simpler when you have the right people behind you; once that is done, all else falls into place. Here is all you need to know in a very basic outline;
Buying Property in Argentina, 101:
1. Searching for and choosing your home If it's happened that you visited BA and fell head over heels in love with the architecture, the inexpensive cost of living, the people and the food; well, then maybe it's time to consider having your own place here. Be it for living 2 months out of the year in upscale Recoleta; or renting out your single-floor apartment in stylish San Telmo to turn a profit, Buenos Aires' vast options for real estate have become a solid financial investment.
2. The broker in Argentina The broker in Argentina works just as he would in the US: he gets to know what your tastes are, shows you around different neighborhoods, searches for apartments that may be to your liking, and finally - if and when you find something you've set your eyes on - sells you the place. Brokers in Buenos Aires charge anywhere from 2% to 5% commission. Also, don't forget that brokers may look friendly and act friendly, but the bottom line is that they are in this for their commission; once they collect it, they will disappear from your life, never to be seen again. Be wary of what he may want you to sign.
3. Procedure for purchase and payment of your apartment Here is where you will find the largest of all cultural differences, when buying real estate: the operation is handled entirely, 100% in cash. Simple as that. We do not have 30 year mortgages, or bank loans that can be paid over a period of time. Bear ths in mind: cash means cash, not checks or any other manner of money. The dollar bills are stacked neatly one by the other and given to the seller. You will find yourself paying the entirety of the property you have purchased in one fell swoop, within a period of days established by you and your counterpart. We handle this negotiation together with you, in order to work it out in the amount of days which best suits you.
4. Notary, escrow company & insurance company all rolled into one:
The Argentine Notary public or Escribano The work entailed by the bank, the escrow company, and the notary public in the United States is incumbent upon one person in Argentina: the notary public (known here as escribano); all responsibility is deposited on him. It is his duty - and his alone - that the deed is drawn up in a timely manner for you to sign. This, however, is the least of his responsibilities; it is incumbent upon him to give every assurance that the property is legally available for sale, that the seller has no embargos to his name, and that there are no debts on the property to be purchased.
As far as building inspection goes, even though there is many a legal ordinance to that effect, they are not heavily enforced. For this reason we recommend having the unit visited by one of our architects and/or engineers to give you every assurance that your investment is structurally sound.
5. Property taxes The city of Buenos Aires has two taxes - which in practice are unified into one bill - that are paid on real estate: a) ABL (Alumbrado, Barrido, Limpieza) which is the tax paid to the city for public sweeping, cleaning, etc., and street lights; and b) the tax on the property itself. As per local regulations, the impuesto municipal and the ABL tax are paid bi-monthly. Property tax represents less than 1% of the value of the property.
6. Utilities costs Apartment services are, for the most part, very inexpensive. You will find yourself paying, on average, a grand total of (no more than) U$ 150 on a monthly basis for gas, electric, water and phone services. Again, very inexpensive as compared to costs and utilities in any given US home.
Maintenance fees for the unit you purchase will vary, as happens in the US, depending on: a) total square footage of unit, b) age of building where you purchase your unit, c) area of the city where you purchase your unit.
7. Most popular neighborhoods The following indices show values of property in the three most popular neighborhoods (by tourist standards) of Buenos Aires. The value of any given apartment in Argentina is measured by way of a Dollars-to-square meters ratio.
For instance, if a two-bedroom apartment in the heart of Recoleta costs U$ 120.000, and has a total size of 75 square meters (807 square feet), this means the cost of a square meter for that area of Recoleta is of U$ 1600;
U$ 120.000 / 75 square meters = U$ 1600.
The list is in order of neighborhood popularity.
· Recoleta
· U$ 1700 - U$ 3000 per square meter on new property
· U$ 1500 - U$ 2000 per square meter on used property
· San Telmo
· U$ 1100 - U$ 1200 per square meter on new property
· U$ 800 - U$ 1000 per square meter on used property
· Palermo Hollywood
· U$ 1500 - U$ 2000 per square meter on new property
· U$ 1000 - U$ 1200 per square meter on used property
This is all the basic information you may need. Contact us and we'll be happy to meet with you in our offices and further discuss the particulars of property in BA.

Italy Property - Guide to Buying a Property in Italy

Overview
The Italian Property Market
An increasing number of foreign nationals have taken to purchasing real estate in Italy over the course of the past fifteen years. The increase in real estate purchases in Italy by foreign nationals really took off following the integration of Europe into the EU. With the advent of the European Union, more and more foreign nationals began purchasing different types of real estate within Italy. This included commercial, residential and speculative investment purchases by foreign nationals.
The vast majority of foreign nationals who have taken to purchasing and owning real estate in Italy are from within one or another of the European Union nations. With that said, British investors have been particularly active in buying and investing in real estate in Italy during the past five to ten years.
The prime real estate purchases in Italy by foreign nationals in recent years have been concentrated fairly heavily in rural regions of the country
Investment Property in Italy
As with the other nations that are members of the European Union, Italy has seen a growth in the number of foreign nationals making real estate purchases within that country since the inception of the EU. The common marketplace that was formed with the development of the EU is deemed to be the primary reason as to why there is so much activity in the arena of real estate buying and selling in EU nations such as Italy.
A significant amount of the movement in regard to real estate in Italy involves the buying and selling of property for investment purposes. A significant amount of activity when it comes to investment real estate has involved two primary types of property: commercial or industrial property as well multi-family properties that are used for residential and vacation purposes.
There are no real restrictions on foreign nationals purchasing real estate in Italy beyond a bit higher purchase registration tax that will be discussed later. This holds true for investment real estate as well as other types of real property in Italy.
Residential Real Estate in Italy - Single Family Properties
The biggest rush of selling when it comes to residential property has occurred outside some of the major cities in Rome. Many foreign nationals have involved themselves in this particular buying spree. Indeed, particularly people from the EU have actively made the purchase of homes and villas in rural areas of Italy to be used as second homes.
These people maintain that they are attracted to the easy going and relaxing lifestyle of life in rural Italy. (There have been some motion pictures in recent years set in such environments that many real estate experts in Italy maintain have further spurred the sales of rural residences in the Italian countryside.)
Residential Real Estate in Italy - Apartments in Italy
When it comes to finding private residences in the larger cities in Italy, apartments remain one of the most popular types of residential property bought and sold in the 21st century. Take for example the city of Rome. Apartments remain one of the most often conveyed forms of real property within the Italian capital city. (Of course, the limited amount of living space and the ever growing population of Rome have combined to make apartments invaluable residential assets in that city.)
Many foreign nationals have invested in apartments in the more major Roman cities over the course of the past decade for two primary reasons. First, these apartments are allowing these foreign nationals a second and oftentimes more affordable residence in one or another of the Roman major cities for their own purposes. Second, many people from other nations are making the purchase of these apartments in the larger cities in Italy to then be let or rented to other individuals.
Generally speaking, these investors who are purchasing apartments in Italy are renting to people who will be in Italy for an extended period of time on business. In the alternative, they are renting these apartments to individuals and families who have elected to spend an extended period of time in Italy, in one of the major Italian cities, on holiday.
Holiday Property in Italy
Vacation real estate remains a proverbial hot property in Italy at the present time. The demand for real estate in the major resort communities in Italy have sent the costs of real estate in those communities through the roof. With that said, many of the more healed foreign nationals continue to attempt to make the purchase of nicely situated real estate in the resort communities in Italy.
One of the other areas in which vacation real estate is selling at a brisk pace is in some of the more rural spots in Italy. As mentioned previously, many foreign nationals are taking to purchasing real estate and graceful homes in rural parts of Italy to be used for their second homes. Likewise, many foreign nationals are purchasing real estate in more remote and rural areas of Italy for use on family or other types of vacations and holidays.
In addition to using these properties for their own personal holiday or vacation purposes, many of these same foreign nationals are leasing these properties to other foreign nationals during those times of the year in which these owners are not occupying the properties themselves. As a consequence, many of these foreign nationals have been able to make their vacation properties pay for themselves. Indeed, there are some foreign nationals who have gone so far as to purchase more than one residential property in different locations in Italy. These individuals will use one or another of these residences at different times during the year and let them out to others the remainder of the time. These individuals have found this type of investment to be profitable.
Specific steps to buying real estate property in Italy
The real estate sales and purchasing process in Italy is fairly streamlined and not particularly complex. For the most part, a foreign national stands in the same shoes as does an Italian citizen, with one exception. When it comes to the purchase of real property in Italy, a foreign national must pay a 11% purchase registration tax after the sale itself is consummated. An Italian citizen must only pay a 4% purchase registration tax.
In Italy, the first step towards the purchase of real estate is the initial agreement between the parties. Once the initial agreement is signed and executed, there are some primary tasks that must be completed by the parties. For example, the buyer must obtain appropriate and sufficient financing. The seller must work to make certain that title to the property is free and clear of any and all encumbrances so that it can be conveyed to the buyer.
When this initial agreement is signed, the seller will post a deposit in the amount of at least 10% of the total purchase price of the real estate being sold. It is not uncommon in Italy for deposits to run as high as 50% of the overall purchase price of the property. Deposits in Italy tend to be higher than what is seen in many other countries around the world.
Generally speaking, the deposit is not refundable if the buyer simply decides that he or she does not want to buy the property. Indeed, the only real circumstances in which a buyer can obtain a refund of the deposit -- even a hefty deposit of upwards to 50% of the purchase price -- is when the buyer backs out of the deal or in circumstances when clear title to the real estate cannot be obtained within the time set forth in the initial agreement between the parties.
The real estate purchase process is overseen by a notary in Italy. The notary actually has more duties than is normally associated with a notary involved in real estate transactions in other countries the world over. For example, the notary in Italy is responsible for carrying out title searches to work to make certain that the title to the property is free and clear of any obvious defects or liens.
Many real estate experts in Italy recommend that a purchaser take the time to hire what is known as a geometra. The geometra will survey the physical boundaries of the property for sale to make sure that it actually does comport with what is listed on the legal description that is subject to a contract for sale. (These experts maintain that this particularly is important when it comes to older properties in Italy.)
The real estate purchasing process can take upwards to six months to complete in Italy. For this reason, unlike in many other countries around the world, it is a commonplace occurrence for a purchaser to move into residential property after the initial agreement is signed. In most countries around the world, the purchaser does not take possession of the property until the final agreement is executed and the deed to the property is transferred from the seller to the buyer

Property in Poland its getting better for the investor

International Property investors are now looking towards Poland as a place to invest . Poland is attracting attention for a whole host of reasons Poland or Polska has a population of just under 40 million and can be viewed as an emerging economy with great potential. With European Union accession granted in May 2004 Poland is well position between Eastern and Western Europe to capitalize on the expanding EU trade.
In summary overseas buyers are attracted to the following
o Large market of almost 40 million consumers
o Low unemployment in capital cities
o Its location between emerging eastern countries and the capitalized west
o Properties sold after 5 years or monies re-invested into property have no capital gains tax
o VAT is not applied to properties over 5 years old
o Strong GP and FDI growth
So how does an overseas buyer buy property in Poland? The buying process in Poland is a little different than in most other countries, so it is important to understand it before jumping in. EU and European Economic Area citizens may buy property in Poland fairly easily, but residents of other countries must first obtain permission from the Polish Ministry of Interior and Administration. There are some situations in which EEA citizens must obtain permission, such as for certain second homes - not their primary residence - and some agricultural lands. Check with an agent or lawyer to make sure if you need to acquire permission before proceeding to buy.
A buyer may use the services of an estate agent when buying existing property in Poland, and this person can do much of the legwork involved. Because the agent works for the buyer, the buyer pays any commission to the agent. It is not customary to use a lawyer, but as a foreigner it is always a good idea to have one review the paperwork, and apply for a permit if necessary, to make sure everything is okay.
Once you have found a property you wish to purchase, price negotiation is usually done face to face with the seller. After agreeing upon a price, a notary will draw up the initial contract. This sets out the terms and any conditions, and a 20% deposit is paid. The notary typically serves as the legal authority, carrying out any property checks and searches.
Once everything is okay according to the notary - and with your lawyer, if you have one - then the final contract is written up and signed in front of the notary. The buyer makes the final payment and the seller must present a letter or document stating that there are no outstanding loans or debts on the property. This is very important, and it should be dated the day of sale. There is a civil transaction tax that must be paid, typically 2% of the sale price, at the time of sale. Once everything is complete, you may register the property with the Land Registry.