Posts Tagged ‘real estate investing’

It is Best to Use Private Money For Real Estate Deals

Dec 25, 2009 Real Estate

This article is by Alan Cowgill that I interviewed on Investing with the Stars.

This topic is near and dear to my heart. When I started my RE career, I heard about the necessity of finding private lenders. In fact I even found two. But then I stopped. For four years I PROCRASTINATED. I didn’t get it!!! For four years I continued to go to banks and jump through their hoops. I also had used hard money lenders, but found them VERY expensive.

It wasn’t until I quit my J.O.B. and found that banks wouldn’t loan me money that I realized that I needed to bring private lenders into my life quickly.

When I took that step, everything changed for the better.

What are some of the advantages of using private money for your real estate investments? Well, if you haven’t decided whether or not to use private money, I decided to lay it on the line here for everyone to see.

* Fast & you can buy at a discount

* No credit check & doesn’t show up on your credit report

* Unlimited funds

* Control, you set the rules

* Help friends, family & meet a great group of people

* Get some of your profit when you buy

* Cash flow

* Flexible

* Can make offers with confidence

* Can structure quick and more profitable exit strategies

* Saves you money

* Cheaper than a partner

* Fund the purchase of defaulted paper

* It is the foundation for a very profitable brokerage business

In this business when a deal comes along you have to move fast. Many investors have watched a deal slip through their hands while they waited for the bank to approve their loan. Once you have private money available, that won’t happen to you! You can make an offer knowing you can go ahead and set a closing date. Meanwhile, your competition is wondering how you did it so quickly!

Want to find out more about Finding Private Money and claim your free real estate investing newsletterkAlan Cowgill, then visit Nancy Geils’s site on how to choose the best Program to learn quickly about finding private money private money lenders for your needs.

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Twitter Can Help You In Your Real Estate Business

Nov 30, 2009 Real Estate

At every real estate conventions, boot camps, or seminars the topic of marketing comes up. Someone will mention Facebook (that’s a whole different story) which is always closely followed by a comment about Twitter. So… let’s evaluate is Twitter worth it? If it IS worth it, how can you best use it for great results? First, lets look at just what Twitter is and what it can do for your marketing efforts.

Twitter.com is a website where anyone can create a profile and become a “micro-blogger” Twitter is like a regular blog (aka web-log) in that it lets you say anything you desire to say to anyone and everyone who will see it - with one exception. Twitter only allows you to express yourself–0 characters at a time. So it’s a little like using you cell phone to send the world a text message. When you find a profile of someone whose–0 character Twitter posts (called “tweets”) you can “follow” them - whenever they post something new, it will appear on your Twitter home screen. If someone finds YOUR profile and follows YOU, then you will be notified that someone is “following” you. Now that you know the basics, let’s talk about making this a useful and PROFITABLE tool for you.

Because the old saying “Out of sight, out of mind” is absolutely true, you’ll need to remain active with your “tweeting”. You should be posting at a minimum, once a day. Find something to “tweet” specific to real estate - something that your “followers” will find useful. If you just start sending info about homes you have for sale, it probably will not get you as far as you planned. Think about it this way - when was the last time you opened and really read an email from someone attempting to sell you something?

When you give your followers something they can use or something they find fascinating (even if it ISN’T about the real estate industry) then you’ll have a chance to maintain their attention. When you gain their friendship, they’ll be more open to review what you have to say when you want to offer them something you’ve listed.

Twitter, like other social networking sites, is a good way to connect with others - just keep in the forefront of your mind that they’re people and want to be acknowledge like people. They aren’t money makers. So connect when a person follows you, send them a short personal message letting them know you appreciate it.

Remember that being upfront and transparent with people and giving thoughtful data is what Twitter is all about - the money will come if you treat people like people and post often so that your Twitter marketing is consistently on the radar! The more you do that, the larger your following will be - and the larger your following, the greater your chances of communicating with someone who needs to make a deal - which, of course, means a better chance for you to profit!

REOGoldMiner.com is a site that helps you identify REO deals and valuate them at the click of a button. We have a passion for Real Estate, internet marketing, and helping investors become the most success they can be in their real estate business.

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Business Lines of Credit for Real Estate

Nov 22, 2009 Real Estate

Because Investing in real estate has become a new lifestyle choice for thousands of people all over the world. With the increase in foreclosed homes and auction sold properties in the last year; there has been a dramatic increase in the possibilities of finding great houses for bargain prices. Investors are buying foreclosed properties, doing them up and selling them on for great profits. Flipping houses has become a new trend in real estate, and has proved to be a great way to make money. Having money readily available to refurbish the properties however is one of the biggest problems that new investors face, but business lines of credit are providing them with the ultimate solution.

Business lines of credit are a revolving credit facility provided by banks and financial institutions. Investors can apply for a line of credit with a bank which is typically given as either a cash credit or in the form of an overdraft. The agreed credit limit is then readily available for when the need arises, and the money can be used to flip a new home.

Business lines of credit are proving to be very beneficial to businesses worldwide. Unlike the traditional loans; lines of credit can be drawn upon and repaid at any time, and interest is only charged on the outstanding balance. There is no term time for business lines of credit, so the money can sit in your bank until it is needed. There is typically an annual review conducted with the financial institution, where credit amounts can be changed if desired.

Real estate investors are finding business lines of credit a very valuable asset. The increased cash flow enables refurbishment and renovation work to be done on a property without the need of having to use your own money. Cash can be drawn out of the bank and used to decorate and do up a property, and can be repaid upon the sale of the house. Business lines of credit provide investors with a new flexibility which is proving to be highly valuable.

Having money readily available to buy and do up a property is one of the biggest problems that a new real estate investor can face, and business lines of credit are solving that problem. After having purchased a home in need of revamping; money is at hand to fix up the house to a great standard. The property can then be put back onto the real estate market and be sold for a large profit to a new buyer. The money made on the sale of the house can be partly used to repay the financial institution or bank, and the rest is pure profit. Once a new investor has flipped their first house, it becomes easier to do a second, and eventually to manage a larger property portfolio. Business lines of credit are allowing new investors to find the means to buy and do up homes and to realise their dreams as real estate investors.

For more information go to: www.cashforrealestate.com

Learn more about Cash For Real Estate. Stop by Nancy Geils’s site where you can find out all about real estate investingReal Estate Investing and what it can do for you.

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Now More Than Ever, Real Estate Investors Need Cash

Nov 21, 2009 Real Estate

There’s a challenge in the real estate investment industry. There are many opportunities for real estate investors to buy inexpensive properties and fix them up and exit profitably… but they need something vital to make it happen. They need cash.

Real estate investing is a capital-intensive business because it requires tens of thousands of dollars up front in order to get started. You need to put some money down on the property, you need to fund repairs, you have carrying costs. Once you’ve covered all of those, you can sell the property (or rent it) and make a lot of money but it needs to have the cash up-front first.

Many brand new real estate investors make the mistake of using their own money to fund the deal. They use credit cards and they borrow against their mortgage. Unfortunately, those tactics have limitations:

* Credit cards have high interest rates and if a deal goes bad (and sometimes they do), the real estate investor may have a high amount of money to pay down on his or her credit card with exorbitant interest to pay, too. This can damage credit ratings!

* Borrowing against the mortgage is another way that real estate investors pay for their deals. Although the interest rate is lower, there is still substantial personal risk should the deal ever go south. The borrower could end up with their home repossessed.

Worries about Credit rating, high interest rates, and even the threat of eviction are all challenging problems that face the real estate investor using their own money.

But there are other options. Real estate investors need to apply the principle of “OPM” - “other peoples’ money” - in order to invest successfully. When they do that, they put other people’s money to work for them and they can get better rates of interest and they reduce their personal risk.

There are several ways to get access to other people’s money:

1. The real estate investor can contact his or her family or friends and ask them to invest. Sometimes this is a good idea, especially if the real estate investor has a successful track record and the know people with money. However, this can be risky because they could lose their friends or family should a deal ever bust.

2. The real estate investor can go to a lender - like a lending institution. A lending institution might lend them money or they might not, depending on the investor’s credit rating and how much risk the lending institution is willing to take on.

3. The real estate investor can find a group of investors - both individuals and corporations - who are willing to invest. This takes more leg work on the investor’s part but it can release a great deal of money to the real estate investor to invest. And there are many investors out there!

For more information go to www.realestateinvestingnewsletter.com
for your free newsletter subscription!

Want to find out more about lines of credit, then visit Nancy Geils’s site on how to get your free newsletter real estate investing for tips.

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The 3 Common Misconceptions of Flipping Apartment Complexes

Nov 9, 2009 Real Estate

The average real estate investor assumes that investing in apartment complexes is expensive and difficult. The process of wholesaling multi-family units is very similar to that of single family homes and much easier to get involved with than most people are aware of. The current economy has created a perfect storm for investors who are educated.

Here are a few common misconceptions about multi-family units (apartment complexes)

1. You need good credit to get involved in apartment complexes FALSE! The truth is, banks care even less about your credit score when investing in apartment complexes. This is because banks understand that most private citizens can’t afford such a big down payment on large multi-family complexes so they look to the actual complex itself as the sole collateral (also known as a non-recourse loan). Your credit score becomes irrelevant.

2. You need a lot of money to invest in apartment complexes FALSE! Apartments, as part of the commercial asset class, have a long-standing tradition of being bought with other people’s money. The use of limited partnerships and syndicates bringing together private investors to do these deals is very typical. And with the current economy there is no shortage of people realizing the HUGE income potential and tax benefits of investing in apartment complexes.

Myth 3… Apartment deals are tougher to get and close than flipping single-family homes. Not true! They are easier than single family homes. There are property management companies out there hungry for opportunity. Finding buyers for apartment complexes is easy, and because of the prominence of these myths, there is almost no competition for these deals. Most investors are scared off by the huge numbers in these deals. What that really means, is more zeroes in your assignment fee payment.

Flipping apartment complexes is incredibly profitable. Dealing with larger profit margins, an abundance of buyers, and using other people’s money makes it the perfect opportunity for today’s investing conditions. They just aren’t the problematic real estate investment they are often made out to be. If you are a professional real estate investor, take a serious look at this oft-ignored avenue of investing.

Michael Kimble is a successful real estate investor, specializing inWholesale Real Estate, and has 7 free marketing systems for other investors. Go there to sign up for them right now.

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Short Sale Guide

Nov 6, 2009 Real Estate

Lenders have been doing them for years. However, due to the increase in mortgage delinquency due to our current economic situation, the lenders are now overwhelmed with request for short sales. Lenders have been very slow in their response to short sale request. Chase has indicated that they are still working on request made in June, 2009 and we are now closing in on November, 2009.

What’s a shortsale?

If you own real property and you owe more on your mortgage then the home would appraise for and you have a hardship, then you may be able to short sale your property. A short sale is when the lender is willing to accept less than the full amount you owe.

In order for your lender to consider this option the following must apply: Your property must be listed with a realtor and must have a contract based on the comparables in the area the property is located. Owner must have a financial hardship. financial hardship could occur from divorce, loss of job, pay cut, illness, accident. etc. Owner’s expenses exceed their income, this is considered a hardship. Expenses must be legitimate expenses. One cannot have a $300 dollar a month clothes shopping addiction. Real expenses including; electric, water, rent, insurance, car payments, gas, groceries, health insurance, etc.

Once a financial hardship has been established on behalf of the owner, all of the required documents that must be submitted to your lender are below: 1. Bank Statements - Last two months 2. Pay Stubs - Last two pay periods 3. Tax returns for 2008 and 2007 4. W’2s for 2008 and 2007 5. Financial Worksheet

The realtor will provide the following in order to submit to the lender: 1. Listing Agreement 2. Comparables ( active/pending/sold) 3. Listing History 4. Contract offer ( The accepted sales price, should be on or around the current market value) If the contract offer is not acceptable, then the agents should leave the short sale addendum un marked on #5, to allow additional offers to be submitted. But if the original offer submitted is sufficient, this clause should be eliminated.

A Title company will provide the following: 1. Title search 2. Preliminary Hud 3. Complete Lien search, including: Code Enforcement, Open Permit and Water balance search.

We highly recommend that a title search and lien search be completed on the property being sold in order to make sure that there are no judgments, liens other than the existing first or second mortgage. If a title search is not completed and a Preliminary HUD -1 Closing Statement is submitted to the lender, which does not reflect other items such as: Code Enforcement liens, Outstanding Water Balances, Open Permits, HOA Liens, Certified Judgments, delinquent real estate taxes, you can get your approval. However, once you have completed your title search and lien search and they show any of the items above, at that point you have to re-negotiate with the lender.

Important Items to consider regarding a short sale: Most lenders are not paying the entire amount owed fpr HOA assesments. They are comparing a short sale to a foreclosure in these cases. If a lender proceeds to the foreclosure sale, the lender is, under law, only required to pay a certain portion of the back assessments. This is the rule of thumb to go by, if the property is a condominium, the lender will pay up to 6 months in back assessments, if the property is a single family home, then the lender will pay up to 1 % of the original balance of their mortgage or 12 months of back assessments. Attorney fees are not considered, nor paid for by the lender. In most cases, the HOA will reduce the amount owed to them. However, some HOA’s are taking a stance that they will not accept what the lender is offering and they will kill the deal. Most lenders will only accept individual buyers. Most lenders do not allow; Corporations, LLC, LLP, Land Trust, Trust etc. The property must be purchased by an individual person(s). Not all companies who say they can negotiate a short sale are qualified to do so. Negotiating a short sale or even a loan modification requires a background and experience in mortgage, title and real estate. Most short sale negotiators who have a background in title insurance, mortgage, or even real estate have a better idea of the entire process and what is involved in all areas of the short sale transaction. Lenders do not have to approve a short sale, even if there is a hardship; however, most lenders are trying to accommodate the owner to some degree. Lenders will definitely deny owners short sale if they feel there is not a legitimate hardship. Second Mortgage Lenders are asking for 10% of the principal balance.

GETTING THE SHORT SALE APPROVAL LETTER FROM THE LENDER IS THE EASY PART. PUTTING ALL THE PIECES OF THE PUZZLE TOGETHER: PRICELESS!

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Tax Lien Foreclosure Properties: Tips And Strategies The Successful Investor Needs To Know

Oct 31, 2009 Real Estate For Sale

The most important thing any investor can do to take the risk out of investing is to have a solid understanding of the strategy principles, problems, and ways to effectively turn a profit. No Risk Investor provides sound education and step-by-step instruction in creative real estate investing strategies for beginners and seasoned investors alike. No Risk Investor gives members the necessary resources any investor would like to have in their arsenal in order to become successful.

Members can discuss tax lien investing subjects on our Investor Forum and even interact with other students. They can view archived training videos in the Training Center and consult the Auction Calendar in the Tax Lien Marketplace to plan their investing strategy.

Do you ever wish you knew how to access tax lien and deed County lists? This is another feature of the Tax Lien Marketplace. You can view and purchase pre-evaluated tax foreclosure properties from our Tax Property List. You can even attend County online property tax sales through the Tax Lien Marketplace.

No Risk Investor understands that it’s hard to get into that first property but also how crucial it is to acquire some real assets and not just cash flow. No Risk Investor offers pre-evaluated properties for sale to help you make the first steps to purchase on your own. A team of skilled investors researches and buys properties specifically for our members. Let’s face it, the main reason anyone learns about how to invest in Tax Lien Certificates and Tax Deeds in the first place is to get into property.

Every member of No Risk Investor has the opportunity to buy tax foreclosure properties right away. Land is available today for under $1,000 and houses for under $5,000. These homes are complete with a BPO and necessary information to help the investor make an informed purchase. Our houses are given with a Warranty Deed, meaning when you buy a house you receive the deed FREE AND CLEAR. These properties are bought through a tax deed sale and other real estate strategies and brought directly to you. Call or email us today!

Learn more about Tax Lien Foreclosure Properties . Stop by No Risk Investor where you can find out all about Government Tax Lien Foreclosure and how to find the best deals.

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How To Negotiate The Best Price For Your First Home

Oct 26, 2009 Real Estate

You submit an offer to buy a home only after you’ve done your research about your prospective home and if you’re already comfortable dealing with the seller. You still have to do some work after you’ve made your offer though. A seller can either accept or reject an offer. Be prepared to negotiate your way through in getting the price you want.

Understanding all of the terms of the contract and working on a contingency plan are just a few ways to make sure you really do get the best price for your dream home. Barron’s ‘Consumer’s Guide to Home Buying’ encourages all prospective homeowners to create a checklist of items they can practice well before the negotiation process takes place. Here are a few items to consider as you begin negotiating the price of your new home:

1. Knowing who are involved in the decision making process. Sellers usually employ the services of agents, lawyers, accountants and other third parties to transact with buyers. Knowing whom you’ll be dealing with beforehand will help you devise a specific method for negotiating.

2. Develop a contingency plan. It’s possible for the seller to refuse all your offers. While it is frustrating, some negotiations are never meant to produce a deal. Specify what you are willing to give for the house and don’t go beyond it just to come into an agreement. You have to look at other prospective homes if the seller wants you to pay more than you’re willing to give.

3. Read the whole contract in detail. Know what you’re getting into before you sign your name on the contract. Review the contract in detail and take note of any provisions that are not clear to you. It is best to clarify all terms in the contract with the seller than to assume the meaning of the terms yourself.

4. Develop a relationship with your realtor. Realtors have the experience to give you professional advice about your prospective home. Spend the time to develop a positive working relationship with them. Voice out your concerns to your realtor well ahead of the negotiation process to give your realtor time to help you in making an informed decision.

5. Be prepared for setbacks. Negotiations can break down between both parties at any time. It is important for you to keep your cool, as most negotiation problems are only misunderstandings caused by poor communication skills. Lastly, be prepared to get out of the deal if you feel the negotiation will lead to nowhere.

Minnesota Realtor Alexandria P. Anderson helps people to find and purchase Minnetonka Condos, real estate, and Minnetonka Townhomes in MN.

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Property Values The Most Important Item In Investing

Oct 24, 2009 Real Estate Investments

“What is it worth?” is the most frequently asked question in investing.

Whether you find a great deal at www.REOGoldminer.com or a house on your block, valuation is a decision making process that has to be done. Every valuation poses a challenge which an investor must address and select applicable steps in estimating a specific and definite value.

Valuation can also be a form of research project, because, the investor gathers systematically the data required in the analysis. Valuation process involves the following stages: 1. Gathering of data 2. Analysis of the data 3. Making an Exit plan 4. Making an Offer

Data to be gathered for valuation analysis must be valid and authoritative. www.REOGoldminer.com not only finds you REO deals but offers access to “appraisers secrets for investors” through its comp system. We provide accurate, relevant, and recent sales data and transfer history for your deals and their comparables. Asking prices are not evidence so you must have the closed sales data ICO provides.

The collected and accurate data has to be analyzed in order to come up with the final valuation. At www.REOGoldminer.com, we provide the necessary materials to teach you what factors to use when determining valuation.

Don’t wait until the bank accepts your offer and you have closed on the property to decide how the deal fits into your investment plan. Create multiple exit strategies before you even present an offer. This will help determine your offer. Knowing whether the deal is a “buy and hold” candidate, a wholesale property, or a retail property guides the amount you will be willing to pay.

Making an offer is more than just calling a realtor and telling them what you want to get the property for. It also consists of determining the maximum you are willing to pay for a property. A wise investor has this amount in mind before they make their first offer. Spending a little time in the beginning will make you more profits in the end.

www.REOGoldminer.com will help you find the REO deals you have been looking for and help you valuate them all at the same time. A wise investor selects tools that will give them all the data and skill sets necessary to be a head of the game. www.REOGoldminer.com is the site to find the REO deals and get “appraisers secrets for investors” that will keep you one step ahead of your competition.

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Investing In REOs 101

Oct 5, 2009 Foreclosures

by Jerome Pennix

The recession in the U.S. economy has resulted in more foreclosures than experienced by any other generation of Americans. Yet as always, this challenge has given rise to a huge new opportunity for alert real estate investors.

Bulk REO Investing is the face of the new business, and its captured the interest of most well-heeled investors.

Lets take a moment to analyze the basics of this incredibly lucrative business. Understanding the notion of Bulk REOs requires understanding of the foreclosure process. When a home owner begins to miss payments on their mortgage, the lender begins to send late/overdue notices to the home owner. After a certain period, the lender will then formally begin foreclosure proceedings. Between the formal beginning of the foreclosure process and the public auction is the preforeclosure period.

The auction of the defaulted property signifies completion of the foreclosure process. Ownership of the house is returned to the lender if the property goes unsold at auction. The classification of REO (Real Estate Owned) is then attached to the foreclosed property.

Typically, mortgage companies list their REO properties with local real estate agents in desire of selling the property to a retail buyer who will spend full price. However, REO properties are now frequently sold for far below their book value. However, the acquisition of a package (or group) of REO houses is the trade-off for getting such great prices.

In the United States, the recession has yielded large returns to real estate investors looking to take advantage. One of the best ways to take advantage of Bulk REO Investing properties is to partner with a well-respected source of funding. Some funding sources for these deals are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds.

About the Author:
Whatever source of funding you use, you need to be able to find these great REO deals. REOGoldMiner.com is the place to look. At REOGoldMiner.com you can find REO deals, valuate the deals, and network with other investors just like you. Come to REOGoldMiner.com today and start finding your REO Gold!

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