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December 19, 2003

RE/MAX
Valley Real Estate
Contact:  Jack Pearce
Phone: (330) 629 - 9200

<For Immediate Release>

RE/MAX Valley Real Estate
 Offers Tips For
Investors & Buyers

For Investors~ Jack Pearce, Broker for RE/MAX Valley Real Estate, warns, “Beware the pitfalls of property investments. Investors often travel a rocky road.” There are a number of ways to invest in real estate. Those who can purchase foreclosed properties at a discount, for instance, can generate substantial profits if the rental income exceeds the mortgage payment. “However,” says Pearce “such homes typically are sold as is; and buyers actually stand to lose money if major repairs are necessary. 

Fixer-uppers also are a good bet, but prospective buyers might want to look elsewhere if they are not sure they can earn enough money on the investment to cover the improvements and any surprise repairs.

“Prospective investors should always keep their eyes peeled for quality homes in prime rental areas,” Pearce reveals, “this type of search could take quite awhile because such deals are scarce in some markets.”  

Yet another option is to consider purchasing mortgage notes. “Investors must be careful though,” according to Jack Pearce, “ they could lose most of their investments if the borrowers foreclose on the property.  

For Residential Buyers~ Pearce warns, “Use caution when considering a Home Equity Line of Credit. Homeowners may want to think about tapping into the equity in their home as a means to pay off high-interest credit cards and other debts.” With a home equity line of credit, borrowers can consolidate debts at a lower interest rate and also deduct that interest from their income taxes. They can borrow only the amount they need at any time, and it may not even be necessary to make payments each month.  

“However,” says Jack Pearce, “the interest continues to add up in the meantime, and homeowners stand to lose their property if they are unable to repay the loan.” Counseling experts say many borrowers make the mistake of racking up additional credit card debt after obtaining the home equity credit line, rather than changing their spending habits to avoid stretching their budgets. 

For more information on services RE/MAX Valley Real Estate offers the home buyers and sellers in the Mahoning Valley, stop by RE/MAX Valley Real Estate located at 54 Boardman-Canfield Rd. 330.629.9200 or visit them on the web: www.OurValleyHomes.com

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