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Major Difference Between Real Estate Agent And Broker – DC Fawcett

Major Difference Between Real Estate Agent And BrokerMany think that real estate agent and broker are one and the same. However, we would say, it is almost the same as there is a thin difference between the two. DC Fawcett, in this session, tells you the major difference between real estate agent and broker.

REAL ESTATE AGENTS

The fact is there are many types of real estate agents wherein not only the public but also the agents themselves get confused about the difference between them. In a crowd, there are agents who add titles to their name. They may be an associate, a real estate consultant, a salesperson or the realtors. However, they are termed as agents who cannot work as a broker without an appropriate license.

The agents who give the advice for real estate must have a respective license without which they are prohibited from advising. Most of the sites maintain online sites where the buyers or the consumers can check for their names whether they have the license are not. If they don’t possess, the license, the consumers can file a suit on them.

MAJOR DIFFERENCE BETWEEN REAL ESTATE AGENT AND BROKER

Here are the differences between real estate agent and a broker.

  1. A real estate broker is a step ahead of real estate agent. They can work either independently or hire salespersons. The broker’s exams are longer and tougher than the salesperson’s exams. They are considered to have higher standards of knowledge. Agents have licensed They are not real estate brokers. They have to work under the broker who appoints them. They cannot work on their own. Brokers are held responsible for their actions.
  2. Broker’s name is placed on the listing whereas agent’s name is not placed on the listing.
  3. A broker can directly deal with the buyers and the sellers. An agent has to work as per the broker’s instructions.
  4. An agent working under the broker works with the consumers to buy and sell homes whereas the broker handles all types of work such as administrative duties, listing homes, host open houses, and negotiate prices, etc.
  5. A real estate agent has to share the commission after the sale is closed, which covers the resources provided by the broker such as office space, training, loan assistance, and marketing etc. A broker can cut out the middlemen at his or her wish and will, thereby earning full commission by continuing to sell homes.
  6. To become a real estate broker, one has to be a real estate agent.
  7. The real estate agent course covers up the basics like, listing or selling process, contracts, taxes and financing. The broker course covers these things in depth.
  8. All real estate brokers are real estate agents but all real estate agents are not real estate brokers.

Conclusion

Many real estate agents would like to become a broker. To achieve this, they have to upgrade themselves and clear the exams to get the license. This enables them to move up to the management position to the senior or junior level.

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Down Payment Assistance Programs – DC Fawcett

Down Payment Assistance ProgramsDown Payment Assistance Programs – Purchasing residence with less money

The prices of housing are seeing a steep hike in many places in the country. This makes it a herculean task for the people to purchase a home.  As luck would have it, majority of the people can acquire a mortgage to assist in paying for a house.  But, most of the mortgages require a down payment and costs of closing.  The down payment can vary from 3 percent to 5 percent of the amount of loan. This is particularly applicable for the cheapest loans available.

The costs of closing include the lender fees, insurance, an appraisal, prepaid interest, title fees, closing company frees. It could be 2 to 5 percent of the value of the home.  On a residence worth $200, 000 a purchaser may require $10, 000 as cash to include the down payment and closing costs applying a low down payment loan on a property that is owner occupied.  If one is an investor, he will require additional money.  Fortunately, there are the down payment assistance programs and other options to mitigate the cash required to getting a house.  As a matter of fact, most of the owner occupant buyers can purchase a home with very little amount as $1,000 in the vicinity of Colorado and other states.

A skim through the down payment assistance programs

Down Payment Assistance programs exist in some way or other in most of the states.  During the past years, these programs were restricted for first time buyers of home. Nowadays most are available to any individual who stick to the income limits and qualify based on the income and the credit score.  Fortunately, Colorado has many wonderful programs that give things free of cost in the form of grants that are non repayable.  The grant is applied to clear the purchaser’s down payment and closing expenditures.  Based on which loan a potential buyer qualifies for, the grant can clear most of the minimum down payment that is required.

The actual value in these programs is that it enables a buyer to acquire a residence with an expenditure of $1,000.  Due to the fact that the grant is non-repayable, the only setback would be that the rates of interest on these programs are about .25 to .50 percent more than a loan without assistance in the form of a down payment.  A .25 percent interest rate hike would imply that your payment for the house would be about $30 extra for a month on a $200,000 loan.

Other states besides Colorado – do they offer down payment assistance programs:

Luckily, for buyers across the country, Colorado is not the only place which offers down payment assistance programs. For instance, Arizona has some important programs with similar grants but the guideline restrictions are different.

How does one qualify for down payment assistance?

Qualification for a loan with down payment assistance is direct as it appears.  Due to the fact that these loans follow normal FHA and Conventional guidelines, the individual requires a minimum credit score of 620, a solid work history, and needs to put in $1,000 into the deal.  The debt to income ratio should also be decent enough.  When one suffers bankruptcy or short sale, it makes it difficult for the individual to be eligible for the loan.

Conclusion:

Purchasing a residence can be very costly even with loans which have low down payments.  One has to be thankful enough to down payment assistance programs and other methods, the finance a buyer needs to furnish can be mitigated.  Such programs materialize the dream of ownership of a residence for those who could not purchase a residence otherwise.

Dc Fawcett , the founder of the Virtual Real Estate Investing Club, has many ideas to offer in his blogs. One can skim through these blogs to get a fine idea regarding buying a house.

 

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How to start a real estate investment in a smart way? – DC Fawcett

real estate investmentBuying a real estate is all about finding a place to call it as your own house. However, owning a property isn’t easy unless you can afford to purchase it. The wealth you earn from real estate depends on the risks that you take when you minimize the amount of time; you need to spend on attending the property. To achieve this, you need to make a smart choice upfront while buying investment property. DC Fawcett suggests some of the smart ways to start a real estate investment.

How to start a real estate investment in a smart way?

The easiest way to get financed is to build a rapport with the seller so they would be convinced to finance your purchase. However, it is harder to get these benefits through some conventional method. If you are able to make it, then you are a motivated seller.  Here are the ways to buy the property using little or no money.

  1. Owner Financing

    As said earlier, it is the easiest as well as the toughest way to persuade the seller to finance you. If you succeed in it, you get the benefits like

    • No Check credit.
    • No Loan applications.
    • No Banks
    • No Waiting
    • No Closing cost
    • No Stress
    • Better interest rate
    • None of your money.

In this way, you are paying the installments directly to the seller and build Real Estate Investment Trust.

  1. Partner Financing

    This is the other way to get financed. Like owner financing, you get the same benefits plus it is also easier to find one. However, it needs paperwork which may even involve the banks. You get lesser profits for yourself as you have to share your profits with your partner. You can attract a partner by means of good deals, tax breaks, profits, and prestige.

  2. Investors

    Using the investors is one of the great ways to finance your real estate purchase. You can pay the money with this and get more profits than your partner. Security, liquidity and a good return on investments attract the investors. When you are running a company, the investors will buy your shares based on your credibility.

  3. Credit cards

    To avoid paying from your pocket, credit cards are another way to make the payment for purchasing the real estate. When you get a great offer, it should be availed at the earliest before it expires. You can get any amount of money as long as you make the payment on time. You can get more credit that way. Credit cards act as an emergency finance to purchase the property.

  4. Notes

    It is an agreement to pay back the loan that you apply. Most of them specify the amount that has to be paid back, the interest rate, the duration or the interval of the amount paid, and the date of clearing the loan. It is also one of the greatest ways to buy the property without putting your money.

Conclusion

Most or all the businessmen do not put their money for any business they do. If they make the payment on one go to purchase the property, they would have to pay the tax.

 

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