Hard Money Loans

Third-quarter residential production by U.S. lenders fell 3 percent from the second quarter, the Mortgage Bankers Association projected. The trade group has fourth-quarter production falling another 34 percent. But MBA’s forecast conflicts with third-quarter reports from major lenders as well as forecasts from Fannie Mae and Freddie Mac — all which indicated that third- and fourth-quarter volume will end up higher.

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Boston, MA, United States (AHN) – Two investors of Genzyme Corp. are suing the biotechnology company for rejecting an $18.5 billion takeover offer from Sanofi Aventis.

According to Bloomberg, the investors have filed a lawsuit in a Boston court accusing Genzyme of depriving investors the right to “to receive maximum value for their shares.”

Sanofi began a hostile takeover of the Massachusetts-based company early this month. The French pharmaceutical giant made a non-binding offer in July to acquire all of Genzyme’s outstanding shares of common stock for $69 per share.

Genzyme chief executive officer and board chairman Henri Termeer had deemed the price too low and called the offer “opportunistic.”

Termeer had sought a better offer, citing Genzyme’s plans to reduce costs and raise production, and the firm’s outlook for its multiple sclerosis drug, alemtuzumab, as well as for Cerezyme, which is for patients with Gaucher disease, and Fabrazyme for those suffering Fabry disease.

Genzyme’s board last week unanimously rejected the latest proposal from Sanofi because the bid is “based on identical financial terms to two previous unsolicited proposals.”

“The offer fails to compensate shareholders for the value of Genzyme’s existing business, which delivered compound annual revenue growth of 23 percent from 2002-2009,” the board added. “The offer price does not adequately compensate Genzyme’s shareholders for the strategic importance and financial benefit to Sanofi-Aventis of a potential transaction with Genzyme.”

The board urged shareholders not to take action, saying a program had been initiated to inform them of “intrinsic value of the company.”

Sanofi insists the amount represents a premium of 38 percent over Genzyme’s unaffected share price of $49.86 on July 1. The drug maker also said discussions with shareholders who own more than 50 percent of Genzyme revealed that shareholders were “frustrated” with the biotech firm’s “persistent refusal to have meaningful discussions.”

Genzyme is one of the world’s largest biotech companies. Founded in Boston in 1981, it specializes in producing drugs for rare genetic disorders, transplant and immune diseases, and cancer.

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Thousands of people will be employed as part of a new scheme in Gauteng, but government has warned that “decent” jobs won’t be on offer.

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Toronto, Ontario, Canada (AHN) – The battle for a larger share of the $16.8-billion Canadian cellphone market continues to be waged by industry players.

In a bid to make as many hand held units available to consumers, more Canadian supermarkets are including mobile phones on their aisle offerings.

Loblaws announced on Wednesday new partnerships with majority of Canada’s cellphone makers, which would add five new brands to over 500 Loblaw chains across the country. Loblaws has actually been offering cellphones in its retail outlets since 2005.

Shoppers Drug Mart made a similar move in July when it carried Rogers Communications hand held units in its 36 stores across Ottawa. The deal with Shoppers, which sells cosmetics and drugs, was timely for Rogers which ended its dealership with electronics chain The Source after the latter was purchased by Rogers’ rival Bell Canada in early 2009.

Loblaws Vice President of Telecom Services Maria Forlini said the company decided to expand its cellphone offerings because of their belief that the market still has room for growth. Forlini cited Canada’s 70 percent mobile phone penetration rate – which is one of the lowest in the world.

Forlini said with 13 million consumers shopping at Loblaws weekly, the supermarket chain could be a major retailer of cellphones in Canada.

Even new telecom companies such as Wind Mobile and Public Mobile have entered into deals with supermarkets to make their products within reach of more consumers in an attempt to have a larger share of the cellphone market.

According to Bank of America Merrill Lynch estimates, cellphone subscriber growth would continue to expand at an annual rate of 7.5 percent. That would translate into at least 3.9 million new clients.

The growth is also expected for the more expensive smartphone market, particularly in the U.S. Technology trends company ComScore reported on Wednesday that Research in Motion’s BlackBerry is still the top smartphone in the U.S. with a 37.6 percent market share, followed by Apple’s iPhone with 24.2 percent.

On third spot were phones that use Android operating systems, which includes Samsung, LG and Motorola.

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When you start the process of buying a home or any type of real estate, you’ll no doubt hear the term “earnest money deposit” (EMD). So what exactly is an EMD?

An EMD becomes relevant when you are ready to make an offer on a property. In most states, your Real Estate Agent prepares the offer on your behalf. The offer usually takes the form of a written contract that is submitted to the seller by way of their agent.

In addition to the offer document, sellers typically expect an EMD. An EMD is a monetary deposit submitted via check to demonstrate to the seller that you are a serious buyer. In some regions of the country, only a photocopy of the check is submitted with the offer, and the original check is delivered to the appropriate entity if the offer is accepted. Ask your Real Estate Agent to clarify how deposits are handled in your region of the country.

The check is usually made out to an independent third- party such as a Title Company, Escrow Company, Real Estate Attorney or your Real Estate Broker. Ask your Real Estate Agent to clarify who will hold the EMD.

The amount of the EMD sellers expect varies by region. The EMD amount is based on the customs and practices for a region, but is generally from 1% to 2% of the purchase price. In a competitive market place where demand exceeds the supply of homes, some buyers may offer a higher EMD than expected to impress the seller of their intent. In determining the amount of your EMD, consult your Real Estate Agent and balance the need to demonstrate your serious intent, against the good business practice of minimizing the deposit amount.

The amount of the EMD is usually applied to reduce the purchase price of the property or to cover closing costs, as you dictate. For example, if you are purchasing a $300,000 property and you give an EMD of $3000, then the remaining balance owned at closing is $297,000 (plus closing costs). Alternatively, you may direct that the EMD be applied toward the closing costs.

Once a valid contract for purchase is created, an independent third-party usually holds the EMD until the purchase is either completed or cancelled. At this point, the money belongs jointly to both the seller and the buyer.

In cases where you make an offer that is accepted but later decide to cancel the offer, the terms specified in the contract (or state law) will dictate if, and under what circumstances, the EMD is returned to you. Be aware that you could loose your deposit if you do not not comply with the terms of your contract. Your Real Estate Agent can provide you information about how EMDs are dealt with if a contract is cancelled.

Since state law varies by region and practices can differ even within the same state, be sure to consult your Real Estate agent about the rules that apply to EMDs in your region of the country. You should also be aware that the EMD is not related to any down payment that you make toward your home loan.

Many people complain bitterly about estate agents. Some of the complaints are valid, some really aren’t fair. If you want to successfully buy through an estate agent it’s essential that you understand what information you give them, how to ensure they want to sell a property to YOU and that you know when an agent is telling the truth – and when they might be telling some porky pies!

Is the Property you want Available at a Price you can Afford?
When we start looking for a home, we often have our ‘ideal’ property in mind. It might be a classic country cottage in the country or a penthouse apartment in the city. And we tend to give this ‘specific’ description to estate agents, expecting them just to hand over the property we have been dreaming of at the exact price we want to pay.

If the agent doesn’t give it to us, then we tend to think they are ‘holding it back’ for someone else, or that they are doing their job. However, it’s really not the agent’s fault if no-one is selling the property you want at the time you are buying, nor is it their fault if it’s out of your price range. That I’m afraid is down to the market and sellers!

Lesson One: How to Work with Estate Agents

Be realistic and fair! Don’t ask agents for properties at prices that don’t exist! Do your research first, even if that’s asking them the following questions:-

1.     This is what we’d like

2.     This is where we would like to buy

3.     Here is our budget

4.     Can we afford what we are looking for?

5.     If not, can we afford the home we want somewhere else, or what could we afford in the area we are looking in?

What information to give to agents
When we give information to agents, we often complain that they don’t ‘listen’ as they send us to view properties that are not suitable. For example, we asked for a three bedroomed home, but they showed us a home which had two doubles and one single when we wanted all doubles. If you don’t tell them exactly what you need – how do they know? So make sure you give a brief that explains the minimum property requirements you need, eg you’d like a garage, but it’s not essential versus you need three double bedrooms and a garden is essential as you have a dog.

Lesson Two: Give the agent a decent property brief

You’ve seen it on Channel 4’s Location, Location, Location, the buyer gives Phil and Kirstie a list of 35 things that they want in a home. Would you feel motivated to find it (especially if you earned your money from the seller)? However if someone gave you a list of ‘this is the minimum’ we need ie our must haves and our nice to haves. This is especially the case if you’ve also researched what properties are for sale at what price and know that you have the budget required.

Do Agents ‘hold back properties’?
Most of the time they don’t do this as it’s not in the interest of the seller as it can restrict the price they receive and therefore their own commission. However, there are, as in any industry, some unscrupulous agents that will risk doing this.

The best way to avoid this happening to you is to ensure that you keep weekly contact (not harass) the agent, just ask ‘have you anything that’s coming up’ etc. If they don’t show you a property you would have been interested in, it’s worth then taking it up with the agent and indeed approaching the owner of the property.

All agents’ now have to belong to an Estate Agent Redress Scheme. If you think that an agent has sold a property to someone that you would have been interested in, then it’s essential to report it to the scheme they belong to. If they don’t, then you need to report them anyway as they are operating illegally!

Lesson Three: Make sure you keep your eye on the market

If it’s possible, keep an eye on internet sites, local newspapers and even drive up and down roads you are keen on, or put leaflets through doors of properties you are interested in. Don’t 100% rely on agents to always think of you when they have a property available, they make mistakes like everyone else.

Why do agents accept Offers when you’ve made one already?
It’s odd that, because the seller accepts a higher offer than the one you made, the agent is often the one to blame. However, it’s the seller who is the one to have a go at – the agent has a legal duty to the seller to pass on offers, even if you have made one and it’s been accepted.

Lesson Four: Understand how to ensure your offer is the last one made!

You can make your offer ‘subject to the property being taken off the market’ so that no-one else is shown around. It won’t stop previous viewers making an offer. Also keep in touch with the seller directly at this stage so that if the agent does accidentally (or on purpose) introduce another offer, hopefully the buyer will call you.

Make sure agents WANT to sell a property to YOU!
It might seem a daft statement, but think about how you work. If you had two neighbours both who wanted to buy your property, which one would you tell first the property was available? The nice one who is always willing to help out and a pleasure to have as a neighbour or the other one that is often argumentative, fussy and not too nice to deal with. Despite media reports, agents are definitely human (!) and it’s essential to get on with them.

1.     Be realistic about what you want, don’t make demands that are impossible to fulfil.

2.     Always feed back to agents post a viewing. What you liked, what you didn’t like.

3.     Thank them for organising viewings for you.

4.     If the seller cancels a viewing – don’t have a go at the agent, it’s not their fault!

5.     Always turn up on time for viewings and only cancel if essential – give them a good reason as the agent is the one that has to ‘let down’ the excited seller that was looking forward to your visit.

Lesson Five: Be honest with your agent!

Many people don’t tell agents the truth about what they want; change their mind half way through the process; take a property from another agent or pull out of a deal at the last minute. All this ‘buyer’ activity frustrates agents as they don’t get paid a penny by the buyer, nor anything from the seller if they don’t actually sell the property.

The more open and honest you are with an agent and the easier you are to work with (ie form a relationship with) the more likely they are to think of you first and want to sell a property to you versus other people that have messed them around.

Not all agents will reciprocate, but most will and they will be the best ones that are most likely to find you the property you want. And don’t forget, if you find an agent doing something dodgy, report them to the Estate Agent Redress Scheme they belong to.

Kate is one of the top property experts in the UK and regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express, and has appeared on BBC2, as well as featured on BBC Radio 4 and a number of local BBC Radio stations.

Kate has also been a consultant to the property sector for a number of years and is the author of a number of books, including four for Which? – Buy, Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook.

Contact Kate Faulkner at http://www.designsonproperty.co.uk/

Article Source:http://www.articlesbase.com/real-estate-articles/how-to-buy-via-an-estate-agent-1520931.html

Is buying real estate on PEI all that different from buying land and property anywhere else in Canada? With a few exceptions that are unique to our local market the answer would be no. The basic steps of negotiation, offer and closing remain the same however there are some special considerations. Tips 1 and 2 are unique to PEI, while tips 3 through 7 are common to all real estate deals.

1. PEI is home to the “islander” and while they are in general laid-back and given to helping their neighbour, the island is quite conservative and as such it is not a good idea to ‘low-ball’ too drastically on the first offer. While vendors anywhere may be insulted by a particularly low-ball offer, it seems that islanders are more prone to simply walk away from such offers. This is further complicated for non-islanders making a purchase here by the fact that PEI real estate prices are so much lower than most of the places they may be familiar with that it is hard for them to remember that a small decrease in price is actually quite a high percentage of the total price. So be guided by a comparative market analysis that can be had from a local realtor.

2. Some people believe that they can not, as non-residents, buy property here. They have heard of IRAC, the Island Regulatory and Appeals Commission. IRAC does control how much land you can own but you only have to ask permission if you are buying a huge amount of land, want to develop it in some special way, are buying more than 65 ft of waterfrontage (double that amount as a married couple) , or you are a major shareholder in a corporation that owns considerable PEI lands. For most people IRAC approval, even if they need to apply, is not an onerous procedure. There is a $500 or 1% fee however that should be kept in mind.

In addition to these tips that are uniquely PEI in nature there are some general tips you should follow when purchasing real estate.

3. Have a pre-approved mortgage in place. This means going to the bank or other lender and getting a certificate of approval from them guaranteeing that they will, for the next 90 days or so, create a mortgage for you in a certain sum of funds. This way both you and vendor know you can finance the purchase and your offer will be taken more seriously

4. Have a reasonable sized deposit ready. The larger your deposit the more serious you look.

5. Be prepared to be flexible on closing dates as this might make an offer that is not as as high as others look more attractive to some vendors.

6. When making an offer set the reply time so as to give the vendor time to consider and reply without leaving the door open to other offers.

7. Keep subjects to a minimum – however in PEI if you are a non-resident and IRAC approval is necessary, ensure that you add “subject to IRAC approval”.

Having a PEI real estate agent handle your offer to purchase will help to ensure a smooth process and qualified, knowledgeable help should there be ‘bumps on the road’.

R. Parker works with PEI realtors to promote relocation to Prince Edward Island and provides information on entering the PEI real estate market. PEI real estate is represents some of the best values in Canadian property.

Article Source:http://www.articlesbase.com/real-estate-articles/7-tips-to-help-you-buy-real-estate-on-pei-1360170.html

For those who have played in the real estate game, the term earnest money deposit may be old hat. However, for those new to buying a home, the phrase may be completely foreign.

In simple terms, an earnest money deposit is a good faith deposit – a signal that the buyer is seriously interested in a property. While this can be a negotiable amount, it is not to be confused with a down payment.

How much do you need to deposit?

The amount of money acceptable varies from purchase to purchase, and may take in a number of factors. In areas where the market is hot, or strong, the buyers with the larger earnest money deposit offer may show the seller that they are more serious than others vying for the home.

Depending on the part of the country, such as coastal cities, earnest money deposits could be as high as 5% (or more) of the sale price. In smaller communities, it could be as low as $500 to $1,000.

Monies can be in the form of a personal check, a cashier’s check, a money order or cash.

Don’t make your check payable to the seller!

If the seller accepts the offer, a real estate broker, or a lawyer, holds the earnest money in escrow. Once the sale reaches the closing stage, the monies are applied to the remaining costs.

Do your research before you write the check.

One story tells of a woman who claims she lost a $2,500 earnest money deposit when she gave it to a person claiming to be a real estate broker, with official business cards and office stationery. He was a fraud and disappeared soon after. When she contacted the police, she learned she was not his first victim. Unfortunately, her money was gone.

Once a contract for the offer has been signed and the earnest money has been accepted by the seller, the buyer then has a finite amount of time to come up with the rest of the deposit. During that time, factors such as securing financing, home inspections, or other considerations can be handled.

In some states, buyers can pay an Option Fee, allowing them to walk away from a deal for any reason at all, within a certain period – usually 5 days to 2 weeks. If the deal goes ahead, this fee is applied to the purchase.

If the deal falls through, both the buyer and the seller must instruct the escrow company in writing to cancel the transaction. The funds are then returned to the buyer, minus a small cancellation fee.

If the buyer retracts the offer without reason, or at some point fails to meet the terms of the contract, the earnest money is forfeited.

For information about Minnesota condos, go to MinnesotaLoftsAndCondos.com. There you can search all Downtown Minneapolis condos for sale, in addition to getting the latest market information for the Twin Cities area.

Article Source:http://www.articlesbase.com/real-estate-articles/what-the-heck-is-an-earnest-money-deposit-1304442.html