I would never recommend a buyer to pass on a home inspection. It is important to know the real condition of the property you are buying.
US Inspect came up with a list of the top 10 defects found in most homes, they were based on over a half million inspections.
Many of these defects could cost you thousands of dollars.

1. Roof leaks due to poor flashing and / or roof material failure due to poor installation

2. Water penetration in the basement or crawlspace due to poor surface water control

3. Electrical safety issues due to age of home or homeowner alterations

4. Deterioration of the interior wall material behind shower and tub surround areas

5. Safety concerns associated with improperly installed decks, stairs or railings

6. Heating unit and distribution system problems due to age and workmanship or alterations

7. Structural concerns due to improper construction and/or alterations, or excessive unbalanced load

8. Fire safety issues related to fireplace chimneys

9. Wood deterioration caused by termites or other wood destroying organisms due to local environment or conducive conditions

10. General fire and safety issues with home ownership

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence (new home or resale) on or after January 1, 2009 and before December 1, 2009. The tax credit is equal to 10% of the home’s purchase price, up to a maximum of $8,000.

It is unbelievable the number of people who don’t know about this wonderful opportunity.

In 2008, nearly one out of every two homebuyers were buying for the first time, the first-time homebuyer credit is making it easier for first-time home buyers to enter the housing market this year.

Yes, you need to be a first-time home buyer, but wait, what does it really mean? Well, by law, you qualify as a first-time homebuyer if you have not owned a principal residence during the three-year period prior to the purchase. The purchase date is the date when closing occurs and the title to the property transfers to the homeowner.

Remember that any home that you will used as a principal residence will qualify for the credit, for example, single-family detached homes, condominiums, town-homes, mobile homes even houseboats.

Also, consider that owning a vacation home or rental property not used, as a principal residence does not disqualify a buyer as a first-time homebuyer.

Income limits for claiming the tax credit.
For single taxpayers is $75,000; for married taxpayers, filing a joint return, the limit is $150,000.
Something else, if you are a buyer with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return, the tax credit amount is reduced. The range is equal to $20,000, meaning the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
Basically, if you are single, you get the full credit if you earn $75,000 or less, and no tax credit if you earn $95,000 or more. For those married and filing jointly, the amounts are $150,000 and $170,000, respectively.

For more information consult a tax specialist before proceeding on your eligibility and proper deductions on your returns.

Reference: www.ustreas.gov U.S. Department of the TREASURY

If you want to become a real estate investor and specialize in distressed properties like foreclosures, it is essential for you to learn how to put deals together. The first step is finding the right properties.

Here are a few places where you can start your search.

1. County courthouse or registry of deeds
2. Multiple Listing Service (MLS)
3. Realtors Auction Companies
4. Banks- ROE departments
5. Classified Sections
6. IRS auctions
7. Legal newspapers
8. Attorneys
9. For Sale by Owners (FSBOs)
10. U.S. Marshall’s Service Listing Services
11. Bankruptcies
12. Probate Court
13. Doing your own advertising

For more information about how to find/buy foreclosures give me a call (214-923-9615) or send me an e-mail (alba@casabyalba.com) with your questions.

I will be continue writing more on the subject, do not forget visiting this blog.