Real Estate Information

Luxury Real Estate Information

Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties

Oceanfront Estate Near Trump National

Related Information

Loan Information
Real Estate Information
Mortgage Refinance Information

Cutting Edge Real Estate: Is There Anything New? Part 1

The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago. The basic principles will never change. Is this true? Only part of it? Well, lets look at what is different in the real estate world. Also, lets see what is the same.

Because of the unbelievable appreciation of land in recent years the real estate industry has grabbed the attention of Americans and also the world ( investment opportunities are worldwide) like it hasn't done for a long time. There were certainly periods in the USA's history where people were absolutely overtaken with the idea of making money from and possessing real estate.

Take the decades in the 1800s as an example when people risked their lives to go west. The risks were amazing but the idea of a better life and of having their own land made it worthwhile. This is certainly a situation that could be described as being one that hasn't changed much because people are still looking at real estate investments, land development, land deals, building homes,acquiring land, and just looking for a better life. That will never change I believe even if some day, hundreds of years from now it means buying land on space cities and maybe even the moon. Heck, I don't think the idea of buying condos in space is really that far away actually. It will happen. ( Ok! This example can be described as a BIG difference.)

Then again citing the 1800s people can also say things are dramatically different now than they were 175 years ago. The price for one. Remember the Louisiana Purchase? I think the US bought about the states for the price of a pickup truck now days. Or in a more recent example,how about our purchase of Alaska from Russia? Another good speculative real estate deal for the US. Sorry to all the Russian and French readers out there. One thing the US has always seemed to be pretty good at is acquiring land at a good price. We haven't done that in a while though and I won't get into the reasons why not, as that would make this article an e-book for sure. Oh yes, the Manhattan deal was a good one for the USA also. We won't go into the political discussions of what happened to the Native Americans here either.

So what is really new now? How about creative financing? This has been a big change in the last twenty years or so. It's all about getting more people able to buy homes. This helps the whole real estate industry as a whole. Not just the lower income levels who are able to buy the more expensive homes now days, but also the rich people as a kind of reverse "trickle down" theory.

I will name this my trickle up theory. The original trickle down theory, which I was never a big believer in by the way, was about cutting taxes for the rich and making things easier for them in a business sense and then the money will trickle down to the middle and lower classes because the rich will be spending more money, thus creating more jobs and more wealth for the lower classes.

This doesn't really work as well as some think in my opinion because the wealthy many times just keep their money in investments which don't trickle down as much. They trickle down but a portfolio of millions or billions doesn't really create as many jobs as would be created if all that money was in the hands of middle class workers where it would be put right back into the economy. But when lower income people can buy homes it certainly helps upper class investorsbecause this creates more demand and with less supply the prices go up for everyone.

Something else that is new and getting more and more common is interest only mortgages.

This also allows more people to get into the home buying market. Some believe the interest only mortgages will be a bad thing that will help burst the current so called housing bubble or real estate bubble. That is yet to be seen, but what is clear is that these creative financing solutions are helping thousands buy their homes. The interest only loans are also helping the real estate investors quite a bit, especially those who are looking to buy, repair and sell. Or those who are looking to buy a piece of land, build on it and flip it ( sell it ). These people like the no interest loans because they don't really care about paying down the principal.

The wrap around mortgage is a mortgage that isn't new. It has been around for a while but after losing popularity in the 70s it may be making a come back. Check out this link that describes it in more detail and has an e-book that goes into greater detail about the "wraparound mortgage";The Secrets of the Little Known Wraparound Mortgages.

Here's another very popular newer type of loan, the non-income verification loans, also known as NIV loans and stated income loans. This has also been a part of the creative financing process of finding ways to get more people into loans. Actually it just shows that banks and mortgage companies have lowered the qualifications and standards to buy a home. That is a good thing as far as I am concerned. The rich may be getting richer but at least the poor have a better chance of owning a home. The middle class also. Statistics show that the home owners percentage is at an all time high in most areas. This has a lot to do with these ideas such as the "stated income" or 'niv loans'. Here is an article about the 'NIV loan;

The real estate industry is the best industry in the world I believe but first make sure you look at as much information as you can find before investing. Well, to a certain extent anyways. Don't wait too long. At some point you need to take action whether it is buying your first home, second home, investment home or a development. Don't be one of those who says " I wish I had bought a house way back when."

Tim Phelan is a full time internet marketer who has been self employed for the last 12 years. Real estate, the environment, art, world culture, politics are some of his other interests. Visit this site for some info on two of these interests:


Copyright Tim Phelan 2005
When using this article please keep the links intact.

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at


The Blockchain For Real Estate, Explained
There is a lot being written about blockchains, bitcoin and related technologies, and for many real estate professionals, this is part of a brave, new, confusing world of technology. Like the original internet, the blockchain is a revolution in ...

Los Angeles Times

Fox News host Sean Hannity's real estate holdings draw scrutiny
Los Angeles Times
On Feb. 6, conservative media personality Sean Hannity brought his longtime financial advisor, William Lako, on his popular radio show to talk about money. "For 25 years, you've watched me start with nothing, right, pretty much?" Hannity asked Lako ...
Sean Hannity Faces Conservative Criticism Over Real Estate DealsTIME
Sean Hannity's Real Estate Empire Includes Okemo CondoSeven Days
Will Sean Hannity's Secret Real-Estate Empire Get Him in Trouble at Fox?Vanity Fair
HuffPost -Politico -Slate Magazine
all 156 news articles »


Real Estate Market For Spring 2018 Is A Good News/Bad News Story
The Spring 2018 real estate market is a good news/bad news story. A recently released report from Arch Mortgage Insurance points to affordability slipping, inventory declining while interest rates and housing prices rise. Key findings from Arch ...

Chicago Tribune

'A Home on the Lake': Real estate and racism surface from Evanston's past
Chicago Tribune
The American dream of home ownership is indelibly entwined with our shameful history of racial discrimination. That's particularly true in Chicago, which has served as a laboratory for segregation for decades. On stage, we've seen that history come to ...


Sears Soars After Lampert Floats Buying Kenmore, Real Estate
As part of the proposal announced Monday, ESL also made an offer for Sears real estate which includes the assumption of the $1.2 billion of debt obligations secured by the holdings. Regardless of whether ESL becomes the ultimate buyer of Sears assets ...
Sears soars as Lampert floats buying Kenmore, real estateChicago Daily Herald
Sears CEO Eddie Lampert offers tentative deal for real estate, KenmoreUSA TODAY
Sears stock soars as Lampert offers to buy Kenmore brand, real estateIndianapolis Business Journal
Peoria Journal Star -Chicago Business Journal -Sears Holdings Corporation
all 85 news articles »

The MReport

Global Real Estate Market to Reach $4.2B by 2025
The MReport
Real estate spaces for commercial, retail, industrial and healthcare infrastructure are in high demand with increasing urbanization,” Grand View reported. The report indicated that the American and Middle Eastern Africa markets especially are set to ...

Updated presentation for investors of INVL Baltic Real Estate Vilnius ...
GlobeNewswire (press release)
INVL Baltic Real Estate announces an updated presentation that will be used for the meetings with investors. Compared to the presentation, which was published on 21th December 2017, the Company informs that the information related to the terms of the ...

and more »


Climate Change Is Already Depressing the Price of Flood-Prone Real Estate
New research shows that real estate properties in areas affected by extreme weather and sea level rise are losing value relative to less exposed properties. The effects are already substantial, but they may point to a looming collapse as climate change ...

DeSoto Times-Tribune

Real estate agency set for new location
DeSoto Times-Tribune
Last year, we issued 1,392 new permits for new houses, so you can see the trend. We're looking for about 1,500 permits for new houses in DeSoto County. That's 1,500 new houses that didn't exist at the beginning of the year.” “Realtors are the front ...


Turks eye-up Greek real estate despite tensions
It is no longer rare to hear Turkish spoken on the streets of Greek cities such as Athens and Thessaloniki as the numbers of Turks in such places has skyrocket by more 1,000 percent since 2015. But unlike the hundreds of thousands of Turks who holiday ...

and more »

Google News

home | site map