So you've done your scouting and think you've found the perfect deal. It's time to do your research and take the plunge!

The Benefits of Using the Internet

Over three percent of all online web shoppers buy real estate on the internet. It’s amazingly popular to buy property online thanks to the accessibility and ease in which information is available via computer. Industry experts are anticipating the current 3% of internet real estate buyers to increase drastically over the next 5 years. They are also expecting financing that’s arranged online to increase substantially in the near future.

In this age of abundant information, you can take an online video home tour, narrow your property search by factors that are important to you, and find a real estate agent that specializes in your niche market. You can even use the internet to calculate out mortgage payments, and ask the mortgage broker questions online.

Finding Your Investment Online

There are thousands of websites that list properties for sale. Much like the classifieds and the Real Estate section of every city’s newspaper, these sites provide photographs, descriptions, and pricing information. There are companies that focus all of their marketing efforts online, as well as tradition real estate agencies who also maintain websites for their property listings.

Here is a listing of a few of the many online companies that offer real estate listings:

http://www.realtor.com
http://www.homestore.com
http://www.realestate.com
http://www.zillow.com
http://www.truila.com

Use a search engine to find websites that offer foreclosures if you are interested in investing in that type of property.
After you find properties online that look interesting to you, you will need to go visit the property in person. Always personally inspect a property inside and out before deciding on a price!

Getting Your Financing the Smart Way

As you enter the search for a new property, it’s best to have your financial cards in place. By pre-qualifying for a loan, the lender is telling you the most money they would give you if you were to go through with the mortgage process. The pre-qualification process will help keep you on track and ensure that you are looking for homes within your price range. Use online mortgage calculators to help visualize what your monthly payments will be, as well as many other valuable calculations.

Use the internet to educate yourself on current interest rates and to research lenders to find one that has a good reputation and desirable financing package.

It’s important to shop around for the best interest rate. The difference of a half point on your interest rate can get you approved, or rejected, for a loan. Loans are granted in part on your income ratios, and a measly half point can push you outside of the acceptable margins for qualification.

When investigating various financing packages, ask about fees and any other charges that might be added on at the end. It’s expected that you will need to pay for an appraisal, copies of credit reports, flood certificates, points on your mortgage, and other fees.

If you are denied credit based on your credit history, you have the right to request a copy of your credit report from the reporting agencies. Review it closely to be sure there are not any errors on your report.

Picking the Home That’s Right For You

You’ve found the handful of properties that you’d like to investigate further. The next step is to carefully research each one to get a complete picture of the properties. Many towns have public listings online of property, assessed values, past sale prices, etc. With this information, you can see what the current owner paid for the house. If you cannot find this information, you should be able to see what comparable properties have sold for in the area. Many states and municipalities have their own websites.

Before the internet, to get this comparable information you would have to go through a real estate agent or sift through complicated paper land records in your town’s records. Now, arming yourself with this essential information is just a few mouse clicks away.

If you are unsure about which town you should live in, simply go online to see what the tax rates are in the various localities within your region. Also check out if your state or town has any tax credits, like first time home buyers, senior citizens, or veterans.

Another great tool on the internet is a Cost of Living Calculator. This is useful if you are thinking about relocating to another state. Finding out what it will cost you to live in Marietta, Georgia vs. Oakland, California is certainly helpful in the decision making process. Try http://www.homefair.com/calc/salcalc.html for starters.

If you have kids and you are moving to a different school district, you’ll want to research your new town’s schools before buying property. Check out the many different online tools to gauge a district’s graduation rates, SAT scores, college attendance rates, and more.

Almost every aspect of moving can be handled online. You might be able to use the internet to set up your utilities, or transfer your existing ones.

If you are moving your primary residence, you will need to change your address with the postal service. You used to have to fill in a form and mail it. Now you can finish this task in minutes online.

Finding the Best Real Estate Attorney or Settlement Agent

For a smooth real estate transaction, it is essential to have a seasoned real estate attorney or settlement agent that knows the ins and outs of the business. Look for an attorney that has experience specifically in real estate. Find someone who is comfortable online and will be able to communicate with you via email and fax. Most of the paperwork and documentation process can be handled this way, minimizing the number of time consuming face-to-face visits.

A real estate attorney’s role is relatively small until the end of the transaction, unless there is a problem. Your lawyer MUST fully understand the local process for real estate transactions as well as the local, state, and federal laws. It is very important that they are on top of the latest changes in the law to be able to properly represent you.

The real estate attorney can help you complete the lender’s paperwork, and can anticipate problems before they occur to handle them efficiently. This includes liens, title problems, etc. Their purpose is to create a stress-free transaction. To find out more information about the closing/settlement process, go to: http://www.stressfreesettlements.com.

Selling Your Property Online

There are two ways to sell your home: by listing it with a real estate broker or by selling it yourself. There are pros and cons to each method. When using a broker, your home will be listed in the popular industry database called the MLS (Multiple Listing Service). They will represent your interests throughout the process, and they will do all of the legwork needed to show and sell your home. In exchange for their professional help, you will pay them a percentage of the home’s sale price, which is typically about 6%. Choose wisely when hiring your agent to be sure you have the best person representing you. Find out about their marketing plans for your home, and where they list properties online. Will you get the exposure you need to sell your property for the most money possible?

By selling For Sale by Owner (FSBO), you’ll be representing yourself and serving as your own agent. You will be the one who arranges the advertising, marketing, placement, and open houses. Recent studies have shown that 13% of all homes sold are sold FSBO. The national average per transaction is $9,000 saved on commission costs. With careful research, patience, and common sense, you can successfully sell your own home for a hefty profit!

If selling FSBO, you will quickly find the internet to be an invaluable resource in your sales process. There are many recommended websites that you should review prior to deciding to sell your property on your own. Try http://www.owners.com . Make sure you compare the different online FSBO services before signing up, because they can be expensive. Check to see what the packages include, and the length of each level of subscription.

Whether you use an agent or not, use the internet to determine the best asking price for your house.

Conclusion

Investing in the real estate market - either through buying foreclosure property, tax lien certificates, income generating rental property, or properties found online - can be a profitable business ventures.

Before getting started investing, get your financial house in order. Reduce your personal expenses, and decrease your liabilities wherever possible. Save your money in high yield deposit accounts until you’re able to jump into the real estate investing. You will need assets in order to get a lender to give you a loan.

Get your money to start working for you. By having several different residual money makers in place, you can break out of the linear-income cycle and start receiving money on a monthly basis, with only working once to set it up. It’s your ticket to financial freedom!