Aliko Dangote to Invest $12 Billion in Nigeria

NIGERIA - Aliko Dangote, speaking at the World Economic Forum, being held in Nigeria, Dangote told the forum that his company would invest a total of $12bn in Nigeria, and $4bn outside the country, over the next four years. The Dangote Group has interests stretching from cement to food.

The businessman - who is Africa's richest man - also China also promised further investment in Africa. Chinese Premier Li Keqiang gave a speech in which he pledged "no strings" support for an African plan to develop a continent-wide high speed rail network. He said China had set aside $2bn for an African Development Fund.

UK Economists Fear Real Estate Bubble Amid Housing Boom

LONDON—The U.K.'s two chief financial-policy makers warned Thursday of a potential real estate bubble as the government moved to enact new powers to curb mortgage lending amid a gathering boom.

Britain's concerns highlight a central challenge to policy makers in the era of low interest rates: how to curb bubbles without slowing economic recovery.

The U.S. and euro zone have also established new bodies to keep watch over the financial system, but the U.K. has gone furthest in equipping its central bank with specific tools to tackle housing-market risks.

The U.K. is trying to control housing prices without resorting to raising interest rates.

The BOE will have wide new authority to restrict lending by limiting how much home buyers can borrow relative to their incomes and how much they can borrow as a proportion of a property's value.

The International Monetary Fund warned Wednesday the U.K. was one of many countries that need to guard against housing-market booms, for fear a bust could lead to a systemic banking crisis.

Australia, Canada and France were also highlighted as countries where housing markets appear overvalued in relation to average incomes.

Understanding Short Sales

Short sales are purchases negotiated with the owner and lender(s) before foreclosure. Typically the purchase price negotiated is less than the balance owed on the property.  For investors, short sales present an opportunity to buy real estate below market value and help borrowers avoid foreclosure.

Short Sale Process

• Both parties consent to the short sale process, which allows them to avoid foreclosure, which involves more fees for the bank and foreclosure being reported on the borrowers credit report. However, this agreement does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
• The bank or mortgage lender agrees to discount the loan balance because of an economic or financial hardship on the part of the borrower.
• The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender.

Short Sale vs Foreclosure

• Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem.
• Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment.
• Borrowers are able to limit damage to their credit history, and partially control the debt.
• A short sale is typically faster and less expensive than a foreclosure.
• It does not extinguish the remaining deficiency balance unless settlement is clearly indicated on the acceptance of offer.

For more information about short sales visit Carlisle Mitchell - Real Estate Tips for Investors

The 14 Best Places in the U.S. to Flip Properties

The 14 Best Places in the U.S. to Flip Properties
The best places for flipping properties are currently concentrated along the East Coast, but it's a popular practice across the country.

If you're interested in buying low and selling for significantly more than you paid, RealtyTrac came up with a list of locations with the best opportunities:

14. Middlesex County, N.J.

Average purchase price of flips: $200,015

Average sale price of flips: $264,742

Average ROI: 32.36%

13. Nassau County, N.Y.

Average purchase price of flips: $316,060

Average sale price of flips: $422,858

Average ROI: 33.79%

12. Monroe County, Fla.

Average purchase price of flips: $311,701

Average sale price of flips: $429,564

Average ROI: 37.81%

11. Berks County, Pa.

Average purchase price of flips: $117,846

Average sale price of flips: $162,774

Average ROI: 38.12%

10. Montgomery County, Md.

Average purchase price of flips: $347,682

Average sale price of flips: $482,969

Average ROI: 38.91%

9. Bergen County, N.J.

Average purchase price of flips: $320,010

Average sale price of flips: $450,492

Average ROI: 40.77%

8. Wright County, Minn.

Average purchase price of flips: $105,058

Average sale price of flips: $152,563

Average ROI: 45.22%

7. Anne Arundel County, Md.

Average purchase price of flips: $197,355

Average sale price of flips: $291,243

Average ROI: 47.57%

6. Saint Marys County, Md.

Average purchase price of flips: $180,411

Average sale price of flips: $268,254

Average ROI: 48.69%

5. New Castle County, Del.

Average purchase price of flips: $127,795

Average sale price of flips: $195,246

Average ROI: 52.78%

4. Campbell County, Ky.

Average purchase price of flips: $75,253

Average sale price of flips: $127,848

Average ROI: 69.89%

3. Baltimore County, Md.

Average purchase price of flips: $131,186

Average sale price of flips: $224,089

Average ROI: 70.82%

2. York County, Pa.

Average purchase price of flips: $88,063

Average sale price of flips: $151,871

Average ROI: 72.46%

1. Prince George's County, Md.

Average purchase price of flips: $125,011

Average sale price of flips: $229,275

Average ROI: 83.4%

U.S. Foreclosures Hit 8 Year Low

Foreclosure activity across the United States dropped to an eight-year low in May as banks reclaimed fewer homes and foreclosure starts saw their lowest levels in years, RealtyTrac said in a report on Tuesday.

RealtyTrac, which tracks and maintains housing market data, said 109,824 properties across the country were at some stage of the foreclosure process in May. That marked a 5 percent decline from April and left foreclosure activity -- foreclosure notices, scheduled auctions and bank repossessions -- 26 percent below the year-ago level.

Carlisle Mitchell - Houston - Judicial Foreclosures

Carlisle Mitchell - Houston - Judicial Foreclosures.
Judicial Foreclosure is a foreclosure proceedings in which a mortgage lacks the power of sale clause. In such an instance, many states require the foreclosure to be processed through the state's courts. If the court confirms that the debt is in default, an auction is held for the sale of the property in order to acquire funds to repay the lender.

This differs from non-judicial foreclosures, which are processed without court intervention.
Many states require judicial foreclosure to protect equity the debtor may have in the property. Judicial foreclosure also serves to prevent "strategic disclosures" by unscrupulous lenders.

In instances where the sale of the property through the auction does not generate enough funds to repay the mortgage lender, the former homeowner will still be held liable for the remaining balance.

Income Property

Income property is property bought or developed to earn income using various investment strategies. 

Income property can be residential or commercial. Residential income property is commonly referred to as "non-owner occupied". A mortgage for a "non-owner occupied" property may carry a higher interest rate than an "owner occupied" mortgage as it is viewed by lenders as a higher risk.

A common practice during periods of home price appreciation is for investors to purchase residential income properties with the intent that rents will cover their monthly expenses for a period of time until the property can be sold for a large capital gain. 

As with all markets during times of fast price appreciation, and as with all market bubbles, investors that enter the market first and get out first usually do well. Investors that enter the market later, and get out last usually don't do as well.

Short Sales

Short Sales
A home that is listed for sale at a price lower than the amount owed on the mortgage. Homeowners hope to sell their home as a short sale to avoid penalties associated with going into foreclosure. What can make it difficult to buy a short sale is that there are often two mortgages on the home and both lenders must approve the sale. The ownership of the mortgages on a short sale home usually belong to more than one party, so you'll likely have to convince multiple banks and lenders to take a loss on their original loan. This is why it often takes so long to approve a short sale offer. If the short sale fails and the homeowner can't afford to pay his mortgage, then the bank forecloses on the home.

U.S. Home Prices Highest in 7 Years

U.S. home prices jumped 12.2 percent in May from a year ago, the most in seven years.

Real estate data provider CoreLogic said Tuesday that home prices rose from a year ago in 48 states. They fell only in Delaware and Alabama. And all but three of the 100 largest cities reported price gains.

Prices rose 26 percent in Nevada to lead all states. It was followed by California (20.2 percent), Arizona (16.9 percent), Hawaii (16.1 percent) and Oregon (15.5 percent).

CoreLogic also says prices rose 2.6 percent in May from April, the fifteenth straight month-over-month increase.

Steady hiring and low mortgage rates have encouraged more Americans to buy homes. Greater demand, a limited number of homes for sale and fewer foreclosures have pushed prices higher. Prices are still 20 percent below the peak reached in April 2006, according to CoreLogic.

Sales of previously occupied homes topped the 5 million mark in May for the first time in 3 ½ years. And the proportion of those sales that were "distressed" was at the lowest level in more than four years for the second straight month. Distressed home sales include foreclosures and short sales. A short sale is when a home sells for less than what is owed on the mortgage.

Home sales are expected to increase in the coming months. That's because the number of people who signed contracts to buy homes rose in June to the highest level since December 2006. There's generally a one- to two-month lag between a signed contract and a completed sale.

One worry is that higher mortgage rates could slow the housing recovery. Still, rates remain low by historical standards. And increases in rates could boost home sales. That's' because many Americans may act to lock in the lower rates before they rise further.

A survey by the University of Michigan released last week found more Americans believe it is a good time to buy a home because both rates and prices are just starting to rise.

Rates have been trending higher for two months. And the average rate on a 30-year fixed mortgage leapt to 4.46 percent last week, according to mortgage buyer Freddie Mac. That's the highest in two years and a point more than a month ago.

Mortgage rates surged after Federal Reserve chairman Ben Bernanke said last month that the Fed could scale back its bond buying later this year and end it next year if the economy continued to strengthen. The bond purchases have kept long-term rates down.

Economists say that higher mortgage rates are unlikely to stifle the housing recovery. A more critical issue is whether potential buyers can get loans. There are signs that banks have become more willing to extend mortgages.

Houston's City Centre Is a Hit

HOUSTON - City Centre mixed used commercial development has quickly become a main attraction in Houston, Texas.

City Centre Continues to Drive Development in West Houston

HOUSTON - Just a few years ago Town and Country sat at the crossroads of Interstate 10 and the Sam Houston Tollway, major North-South and East-West corridors that could potentially funnel two million people to the site within 20 minutes, adjacent to one of the wealthiest ZIP codes in Texas.

What emerged in mid-2009 was CITY CENTRE, a distinctive mixed-use development that has drawn upscale retail shops and world-renowned restaurants, plus corporate tenants and discerning individual residents.

Lease Options

Definition of 'Lease Option '
An agreement that gives a renter the choice to purchase a property during or at the end of the rental period. As long as the lease option period is in effect, the landlord/seller may not offer the property for sale to anyone else.

When the term expires, the renter must either exercise or forfeit the purchase option. A lease option gives a renter/potential buyer more flexibility than a lease-purchase agreement, which requires the renter to purchase the property at the end of the rental period.


Lease Option Explained
The property owner may charge the renter a premium for the option to purchase the property, perhaps in the form of higher (above market value) monthly rental payments. The property owner may opt to apply some of the higher rental fee toward the purchase price if the renter exercises the option.

Any premium will likely be forfeited if the option is not exercised. The term of the option may be any period on which the property owner/landlord and potential purchaser/renter agree, but is commonly one to three years. The lease-option property's purchase price may be determined either at the outset of the agreement or at its conclusion.

No Slowdown in Sight for Houston Housing Market

HOUSTON — Home buyers kept Houston-area REALTORS® hopping in February, generating a 15.5 percent increase in sales compared to the same month last year, according to the latest monthly data compiled by the Houston Association of REALTORS® (HAR). The buying spree held local housing inventory to the same level as January — 3.6 months — which is the lowest supply of homes on the market since December 1999.

February marked the 21st consecutive month of increased home sales, with average and median prices reaching the highest levels for a February in Houston.
Contracts closed on 4,407 single-family homes during the month. All housing segments saw gains except for those priced below $80,000. That suggests the likelihood of an exhausted supply of available homes at that price point. Homes selling from $250,000 to $500,000 registered the greatest sales volume increase, accounting for the price appreciation.


“The recent flurry of home buying and reduced inventory may seem unusual, but is exactly what the Houston market experienced back in the late 1990s,” said HAR Chairman Danny Frank with Prudential Anderson Properties. “The difference is that now we are seeing multiple offers and bidding wars. We are still in a seller’s market, and I would advise anyone who is considering selling their home to consult a REALTOR® who can price it right and handle all the details and paperwork, including sorting through whatever offers may come in.”

The single-family home average price increased 9.6 percent year-over-year to $220,445, the highest level for a February in Houston. The median price—the figure at which half of the homes sold for more and half sold for less—rose 7.9 percent to $161,700, also a record high for a February.

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) declined 23.4 percent compared to February 2012. Foreclosures currently make up 15.8 percent of all property sales, down from 19.6 percent one month earlier. The median price of foreclosures climbed 7.7 percent to $85,000.

February sales of all property types in Houston totaled 5,324, a 17.2 percent increase over the same month last year. Total dollar volume for properties sold rocketed 26.5 percent to $1.1 billion versus $887 million a year earlier.

February delivered positive results to Houston’s overall real estate market when all sales categories are compared to February 2012. On a year-over-year basis, total property sales, total dollar volume and average and median pricing were all up.