Real Estate Investing

Finding and Evaluating Property for Real Estate Investing

2012-01-23T15:29:00.000-08:00

Today, investing in real estate can be easier and more profitable than ever. But whether in a healthy market or a down one, and with new tools to find and evaluate potentially profitable properties, you can still lose a lot of money in a short time.

To maximize the odds of winning, consider these tips...

The process of finding those 'diamonds in the rough' of real estate investing has been revolutionized by the Internet.

You can spend hours online finding, evaluating, and comparing descriptions, prices, photos, and useful legal info about properties close by your neck of the woods, or thousands of miles away. Unless you restrict yourself to FSBO (For Sale By Owner) ads on eBay, Google Base, or Windows Classifieds, though, prepare to pay sometimes hefty realtor fees.

Visit Realtor or estate agent businesses.

If you can afford it, obtain an MLS, a multiple listing service, and get the same information they get. In some locations, a license is required, even if you have the cash to play.

Even if you use the web to find a great value, be prepared to do some 'leg work'.

The only way to judge property properly is to do due diligence. You have to visit the property and the surrounding area. Is the neighborhood maintained in a way that won't depress the selling price? While you're driving around, look for FSBO signs, For Rent signs, and talk to some of the neighbors. After all, the next door neighbor might know something about that impressive yard...like it turns into a swamp after a few days of rain!

Be prepared to make more than one visit, in different kinds of weather and at different times of day, if possible. Property, land and houses, look and act different in the cool of the night than they do in the heat of the day.

And the best way to check for a leaky roof is to go when it's raining - exactly the weather you don't enjoy evaluating property in...right?

Well, neither will your competitor for that property. Going that one extra step could be what puts you ahead in the race.

Information is power.

After the informal inspection, you can strike some sort of contingent deal.

'Contingent', here, usually means the deal is dependent on a satisfactory professional inspection. Find an inspector who is experienced and reliable, even if you have to pay a little more. The price will be repaid many times over, especially if you use them regularly in the future.

Learn the craft yourself if you have time and interest, but at minimum learn at least enough to keep the inspector honest. Most are, anyway.

Review the report carefully. It's not required that everything is 100%, but every major and minor flaw should be recorded. Leaky plumbing or roofs, stained carpets, damaged walls or floors, inoperative air conditioning or heating systems, etc. Look especially for any standing water in basements, near foundations, etc.

Everything is negotiable, so there's no rule about who pays for repairs, if anybody. But information is power. Still, be realistic. Very few properties, even newly constructed ones, are perfect. If they are they're expensive enough to eliminate your profit, unless you plan to keep the investment for an extended period.

If you are really serious about real estate investing, educate yourself. One place to get started is at your local library. There are also many publications and services available online, but, before you shell out a ton of money, pick up a copy of "Investment Property Success", and study it carefully. You can download a free chapter to get a feel for the book, and, if you like what you see, you can order your own copy for immediate download for less than $30.

Now, I am going to be a smart-aleck.

If $30 is too much for you to pay for a quick, in-depth look at the world of real estate investing, then you do not have enough money, or moxie, to get into the field. If you just want to jump in feet-first without at least studying some equivalent training materials, you will kiss a lot more than $30 good-bye! If you spend the $30 and realize that real estate investing is not for you, you just saved yourself thousands of dollars.

Real Estate Investing - Creative Financing For Investors

2012-01-03T14:21:00.000-08:00

For decades, just about the only way to finance a property purchase was 80-20, i.e. 20 percent down, 80 percent on loan.

Certainly, there have been many who put more down, but 20 percent was considered the bare minimum.

Happily for the real estate investor, things have changed.

There are now a dozen or more ways to finance a property purchase, whether for pure investment or to acquire a primary residence. One common method is to have more than one loan, usually in the form of a second mortgage, which is often used to finance the down payment.

The buyer puts 5 percent in, and effectively borrows the other 15 percent on a separate loan, usually at a much higher interest rate.

While it's nice to invest less for the same property, the downside is not limited to the higher interest rate on the second mortgage loan. Since the buyer doesn't meet the standard 20 percent minimum, lenders almost always require PMI (Private Mortgage Insurance). Fees can be pretty hefty for this coverage.

Though it's certainly theoretically possible to have the lender remove the PMI requirement after enough payments have been made, it rarely happens in the real world...or "real estate" world. In theory, once the loan(s) have been paid down so that the LTV (loan-to-value ratio) is at 80 percent — usually by a combination of paying down the second mortgage and appreciation of the value of the property - the lender will be willing to consider removing the PMI cost from monthly payments.

Most often, before that happens, the loan is refinanced or the property sold.

The ambitious real estate investor, however, can find other sources of financing. When considering property in a new development, such as a planned community or new housing tract, manufacturers will often be willing to fund a home loan for early buyers. Such loans are frequently available at only 5 percent of the purchase price.

For the really daring in the world of real estate investing, it's possible to 'buy' a property, then sell it, without ever owning it - at least not for long. It is indeed possible to buy a property, establish a contract, and then sell the contract for anywhere from $500-$5,000 without ever taking possession or even being on the title. Profits on this form of real estate investing are usually smaller, but the cash is obtained quicker, though such deals require excellent credit.

'Sub2' deals are another form of creative financing. The typical 'subject-to' deal involves having a seller deed you the property while leaving the existing mortgage in place. You, the real estate investor, never legally assume the loan, but simply start making the payments. There are lots of variations on this new way of buying property.

This one is NOT recommended for the beginner.

Another way to finance a property investment is by forming a limited partnership. Types of arrangements cover the spectrum. In some, each partner puts up some percentage of the cost, usually half and half, but sometimes profit is apportioned according the original percent invested. In some cases, it's possible for one partner to invest money, while the other(s) performs services...such as repairs on a 'fixer-upper'.

The deals are as varied as the people involved.

For those with low incomes, with military service, or other special circumstances various government loan programs are available - though they're usually not good for serious real estate investing as they are commony limited to individuals intending to occupy the property.

In the last few yeras, it's even become possible to fund a property purchase with personal credit cards, but there are several obvious downsides to this method. Apart from the substantially higher interest rates, lenders will look at all outstanding debt when judging whether to grant a loan on the remaining balance. Taking out a cash advance to cover a shortfall between the needed 5-20 percent down will usually get you turned down.

Friends, family, and other sources of money are usually viewed the same way, unless you can prove to the bank that the money is a gift and not just a loan.

Mortgage lenders have seen it all! Don't try to fool them.
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REAL ESTATE INVESTING

Commercial Real Estate Investing: Complicated but Profitable!

2011-12-24T07:10:00.000-08:00

According to a recent study in The Economist, residential property investment in developed countries amounted to $48 trillion, while commercial real estate investment (CREI) was 'only' $14 trillion. Though the number may be smaller, CREI is much more complex.

Real estate, unlike stocks or other investments, is always local - property is always somewhere, but somewhere specific. The actual investor may be far away, but the property has a location that forms part of its local market.

That affects how it's appraised, bought, used and sold. Unlike residential property...even though one in four homes are bought by investors...commercial property is usually intended to be used for a business purpose.

It may be a multi-dwelling apartment complex used as residences by others, but to the investor it's a commercial enterprise. As often, the commercial property is a multi-tenant commercial building on land zoned for that purpose. That introduces different considerations for valuing, financing, leasing, maintaining and a host of other tasks.

The commercial real estate investor has, usually, to invest a larger amount...requiring superior credit and incurring greater risk...and to estimate capitalization rate (cap rate) and Gross Rent Multiplier (GRM).

The cap rate is calculated by dividing a property's annual net operating income by its purchase price. Historically, good investments had a 10% cap rate, but the last few years has seen that decline to 8% corresponding to a greater risk and lower expected return. The GRM is arrived at by dividing the purchase price by the property's monthly gross operating income. These, along with consideration of assessed vs appraised value, and comparables, total income and replacement costs form the hard-fact base for estimating the worth of a deal.

Commercial real estate investment properties are at greater risk of unpredictable changes in general economic conditions. A building that enjoyed a 100% occupancy rate can quickly become only half full because of factors far outside the local market. Events in Asia or elsewhere around the globe can turn business conditions for some upside down overnight, whether the tenants are located in California or Barcelona.

Commercial property real estate investment requires increased knowledge of law, maintenance and finance. Zoning, leasing regulations, and other legal issues are more complex than for residential property. Where properties are rented, rather than just bought and sold — often the case with CREI — owners usually have to consider large electrical, air-conditioning and security systems, along with fire suppression, telephone and Internet facilities. Even plumbing is more complicated in commercial structures. Mortgages are more complicated and insurance is more costly.

The exception is the triple-net lease. In this arrangement the tenant is responsible for all the expense and arrangements for maintenance and repair as well as insurance.

But not to be gloomy, there are great potential rewards from CREI. The risks are greater, but often the return is as well — especially during good economic times. And the satisfaction of being part of sustaining and helping grow the dreams of other entrepreneurs is a great bonus for the commercial real estate investor.

And, after all, sometimes, "more complicated" means "more interesting".
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REAL ESTATE INVESTING

Cheap Repairs Can Make for Big Profits When Investing In Real Estate

2011-12-20T10:34:00.000-08:00

You want the most profit you can get for that property you sweat blood to buy. Is there anyway to improve your chances, without investing a lot more? Fortunately, there is.

Even a person who is not really very skilled in carpentry, plumbing, and other traditional trades can improve the saleability of a property with modest effort and a few common tools.

One of the first things a potential buyer will notice when viewing your property is the condition of homes and other properties around it. Encourage your neighbors to clear away children's toys, junk cars, or other unsightly objects before buyers come looking.

If necessary, you can offer to mow the lawns of those to the left and right, or take their trash to the dump as an incentive. A small cash offer oin the event of a successful sale might also motivate cooperation.

At the same time, you can show them that you're getting your own house in order.

Curb Appeal

Mow the lawn carefully and repair any bare spots. Trim the edges. And invest in a few dozen inexpensive flowers and plants if the season permits it. The exterior is always what is seen first and first impressions linger.

Since a professional home inspection will almost always be done prior to a final bargain being struck, take the opportunity to make those inexpensive plumbing repairs BEFORE showing the house. Some of the more expensive ones might wait, and may even be used as a bargaining chip. But fix that leaky sprinkler head that sprays outside the tub and replace that dripping bathroom faucet.

Replacing the carpeting in a house, or even one room, can be expensive. But getting it cleaned can cost a lot less. Repair any small damage or try to cover it with a piece of furniture. Clip a piece of carpet from the back of a closet and patch the room carpet with that if necessary. Eventually, you'll have to show every flaw when you have a concrete deal. But it doesn't need to be the first thing they see. Replace those old welcome mats and small entrance rugs with new ones.

New screens are another low priced quick-fix which can make the exterior look fresh and new. To save even more, you can replace the screen itself with mesh and rubber kits, provided the frames are still in good shape.

Definitely, replace any cracked or broken windows. You'll usually have to do this anyway as part of closing the deal. Of course, all the windows should be cleaned thoroughly to give that shiny new feel. Even a brand new house that's dirty will fetch a lower price.

If your house has air conditioning and heating ducts, replacing defective or worn conduits can get very costly. But many parts in a house that are not seen use silvered duct tape anyway, so patch any holes carefully to give a professional look. Replace old filters to give the appliances a newer look and the air a fresher smell.

A bit of spackle and a coat of paint on those rooms that have seen accidents needn't cost a lot and don't take a lot of effort. Be sure the work is done carefully, though, or it can come out looking worse than before you started.

A buyer that sees that you've made efforts to keep the property up will be more inclined to offer a better price. Think of the last time you bought a car. Didn't you favor the one that was well maintained? You were probably willing to pay a little extra to get that one. They will be too.
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DO IT YOURSELF LEASE AGREEMENT

Real Estate Investing - The First Time

2010-07-12T18:47:00.000-07:00

Buying a property for the first time, whether as a home or purely an investment, is exciting and risky — and one because of the other. You read or hear about rapidly rising prices and think 'I gotta get me some of that!' Excellent idea — if you keep in mind, too, that there are risks. Here are some suggestions about how to keep the excitement, profit from the opportunity, and minimize the risks.

Before investing in your first property, do some homework. You don't have to get a PhD in Real Estate, Finance, or Law, but you need to get a good chunk of information and think about your own situation realistically. Buying and selling real estate is not so simple as changing cars.

Familiarize yourself with the market you're interested in and find out what the average property is going for. It can vary considerably even within a single housing tract. That information is easily gained by talking with local Realtors or looking on the Internet.

Study a little bit about legal restrictions and requirements, about contracts, escrow, titles, insurance, closing procedure, and the roles different individuals play in the process. Each has a cost. Shop around.

Once you're ready to take the plunge the next step is to find a potentially profitable property. The Internet makes that a lot easier these days, but you need to drive around the area, too. Look for 'For Sale By Owner' signs and scour the local newspapers for 'For Rent', abandoned properties, etc. And talk with friends, family, and local Realtors.

Look at properties nearby. Are they maintained in a way that will not depress the selling value of your property? Even if you buy a 'fixer-upper', and turn it into a castle, it can be tough to sell profitably in a deteriorated neighborhood.

Once you've found that diamond in the rough, unless you've won the lottery or invested well in the stock market, you'll need to finance the purchase. Bzzz! Mistake number one. You should have your financing in place BEFORE you find a property.

Talk to mortgage lenders — banks, mortgage lending companies, Internet home loan businesses. Discuss how much you want to invest and answer their questions about income, etc. They'll examine your credit history, so make sure your report is clean of any outstanding negative marks.

Ask them about financing options. Today there are a dozen different ways to fund a real estate investment, with variations in rates, up front funds required, and tax consequences. You're about to put out a chunk of money, but also to take on a substantial liability. Be prepared.

Got that dream deal and ready to buy? Perfect. Negotiate the best price you can, without expecting to get something for nothing. The seller wants to get as much as possible, and you want to pay as little as possible.

Out of that tension can come two satisfied parties, or two individuals who both lost. Be firm, but prepare to compromise. You want the seller to repair that bad water heater prior to closing, the seller wants you to give them an extra two weeks before having to move. Give a little, get a little. The alternative is usually a lot of expensive and life-draining legal action. Strike a mutually beneficial arrangement and you'll save money and stress.

Enjoy your first time. It's an adventure!

Acting Into Appraisals

2010-07-03T18:17:00.000-07:00

Investments, terms for loans, processes, and other parts of real estate can often be overwhelming to someone who hasn't received a degree in real estate. If you are looking for definitions and actions behind those definitions, then don't forget about getting the right appraisals. This will help you if you are looking for the right market for your home.

An appraisal consists of a professional opinion that is made about a property. Included in this opinion are several factors that allow for this statement to be made. Overall, the appraisal will lead to the conclusion of what the market value is. If the market price can not be defined easily, then someone can look at the different parts of the property and determine what they believe the market price should be. Usually, this will be done by an inspector looking at the various mechanics that may have been swept underneath the rug.

An appraisal is a necessary requirement when one is looking into selling a home or having the property insured or financed. It may use several external resources and definitions of what market value may include in relation to the opinion being made in order to determine the price value of a home. When getting an appraisal, you can expect that the estimates will be based around the various factors that are related to the market at the time. Instead of just examining the parts of the property, an appraiser will also examine the neighborhood and see what everything else is worth in relation to the property.

By appraising a property, you will know how much the home is worth in relation to your own needs on the property and in relation to everything around it. By observing the standards that are set both inside and outside, you will have the ability to know when the timing is right to get involved with your piece of real estate.

Real Estate Investing - Rental Property Resale

2009-03-09T05:09:00.000-07:00

How to Buy Rental Property and Budget For Resale Profits
By James Kobzeff

The object of investing in real estate is to make money. Whether a rental property is purchased and held for months or for years, the goal of every real estate investor is to sell investment property for a profit.

In this article, we want to discuss how to budget for that resale profit by estimating the eventual sales price of a rental property less the total amounts that you will invest from purchase until resale.

Estimate the Sales Price First

Resale price is always dictated by the buyer. Buyers determine the price at which you can sell your income property. Never add your dream profit or rehab costs to your purchase price to estimate a future sales price for that income property. When you plan for profits, start with the price that a reasonably well informed buyer will pay for your property.

How do you determine that price? Research recently sold properties that most closely resemble your building. It is difficult to compare a 5-unit apartment building to an office complex, therefore select properties that are mostly identical to your property in configuration, condition, and location.

Appraisers and tax assessors typically use a market cap rate to estimate rental property value. So determine at what cap rate those properties on your list sold for and apply it to your own property. Don't be shy to confirm the cap rate you plan to use with a local appraiser or a qualified real estate professional.

Stay conservative. Beware of pricing your property as if it were a cut-above the rest. For budget purposes, stay on the safe side and aim for a sales price that sits somewhat below the highest-valued income property in the area. The closer you push toward (or above) the top price limit of the area, the more difficulty you will face in trying to get your price---even when your property is expected to show clear superiority over the others.

Estimate Costs

After you've set a realistic sales price for the property, develop your cost estimates--what it will cost you to achieve that sales price.

Just bear in mind that investors are only going to pay you for the income that the property generates. Cost-plus pricing doesn't work. Investors aren't going to care how much money you put into the kitchens or landscaping, they will just be concerned about how much rent the tenants are willing to pay due to those improvements.

Structural issues, of course, are a different matter. The building must have a sound infrastructure such as a roof, electrical, and plumbing. The warning here is simply not to expect an investor to pay you for a superfluous grand over-hauling of the building.

Learning how much you might spend to upgrade the property is a skill that should develop through experience. In the meantime, until you get the hang of it, you can follow these suggestions.

1. Research materials cost. Visit home improvement suppliers, lumberyards, and hardware stores. Talk with knowledgeable store personnel. Learn alternative solutions to various types of common problems and price/quality trade-offs.

2. Educate yourself. Many home improvement centers offer classes and seminars for beginning remodelers, renovators, and rehabbers. Study books and magazines devoted to this subject.

3. Consult property inspectors. Accompany your property inspector as he performs your pre-purchase inspections. Ask for advice about potential costs and remedies.

4. Secure multiple estimates. Contractors and trades-persons typically provide free cost estimates. Discuss with them alternative ways of curing any property deficiency.

5. Talk with property owners. Ask those who have improved their properties to tell you what they know. Learn from their experiences.

Sales Price - Costs and Profit = Acquisition Price

Let's look at an example: You find a property for sale at $500,000 that after your improvements is expected to sell in one year for $780,000. You further figure that your costs and profit to achieve that sale in one year will total as follows:

Acquisition expenses and closing costs = $5,000

Cost of borrowed funds (interest) = 20,883

Selling expenses @ 6% = 46,800

Materials for fix-up = 42,000

Labor = 22,000

Closing costs at sale = 7,800

Profit = 25,000

Total = $669,443

Result: $780,000 equals what you estimate to be the realistic selling price of the income property so you should not pay more than $610,567 for the property.

Your sales price $780,000

Less: Costs = 144,433

Less: Profit = 25,000

Maximum acquisition price = $610,567

There it is. By setting a realistic (conservative) future resale price and then backing out your costs (also realistic) and required profit, you set a top limit for your acquisition price. With this technique, as long as you accurately estimate all of the costs associated with purchasing, repairing, and disposing of the rental property, you guarantee yourself a profit in your next real estate investment.

About the Author

James Kobzeff is the developer of ProAPOD - superior real estate investment software since 2000. Start working with rental property today. Discover how to create cash flow, rate of return, and profitability analysis presentations in minutes! See how at => http://www.proapod.com

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Real Estate Investing

Real Estate Investing Requires Money - Where to Get It

2009-02-19T05:05:00.000-08:00

Real Estate Investors Who Need Money Should Consider Private Money Lenders
By Mike Lautensack

Real estate investors are unable to find traditional mortgage lenders who will meet their financing requirements? Then you might want to consider locating a private money lender. Private money lenders are investors who, for the right investment opportunity, will loan you the money to buy real estate investments. As long as you have equity in the property and an exit strategy to pay them back, a private money loan should be easy enough for you to find. Here are a few places to locate your private money lender.

Mortgage Consultant

Investment Clubs

Real Estate Seminars

Other Investors

The Internet

Mortgage consultants who deal in your type of financing can be a reliable source to start your search if you don't know where else to look. Other places are investment clubs. Investors are a terrific source for referrals of private money lenders and many private money lenders actually belong to or attend investment club meetings. Many of these clubs you can join on the Internet for a nominal monthly fee. They will provide you will all sorts of valuable information and access to financing and private lenders.

Attending real estate seminars is another place to meet lenders. The speakers may even be a private money lender. It's a great networking venue. If you Google private money lenders, many companies come up on the Internet. Now that you know where to look for these lenders, once you find them, keep them because you will need to go to them for your next deal.

Who are Hard Money Lenders?

Private Investors

Hedge Funds

Institutional Investors

Portfolio Lenders

Real Estate Brokers

Agents of REO (bank owned properties)

Why Use a Private Money Lender?

A private money lender provides a quick interim financing for you to purchase, rehab and resell a single family residence or commercial property. They do not require any credit checks or traditional guidelines such as banks and other financial institutions. Basically, private money lenders are looking for a deal that makes sense with a quick return on their investment. They also provide short term bridge and gap financing. It can take as little as 5 days to get your financing. So if time is of the essence, a private money lender is the answer to your prayers. You can get fast cash for real estate foreclosures and other hot investment deals.

In these tight financial market times, it makes much more sense to you use a lender instead of a traditional mortgage lender. Why waste time and get turned down missing your investment opportunity while you are waiting for loan approval. You should be compiling a list of private money lenders so when you do find a great investment, you are ready to go. You will never have to worry about how you are going to fund your project, just where you will find your next deal. This way you can concentrate on rehabbing your property and selling.

I invite you to learn more about Private Mortgage Lenders and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://realestatewealthtoday.com/FREE-eBook.html.

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Kit.

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Real Estate Investing

Real Estate Investing with Rental Properties

2009-02-10T04:44:00.000-08:00

Real Estate Investing For Profit - Rental Properties For a Monthly Paycheck
By Serena Lewis

Investing in rental properties can be very profitable and provide you with a steady income. As the housing loan market gets tougher, more and more people are turning to renting instead of owning.

For a person who has access to the funds to buy a rental property this is tried and true way to make good money in the real estate world. Running a rental property may not be for everybody, but for those that own them, they tend to be a very profitable source of steady income.

Some of the things to consider when thinking about going into the rental property business include, can you afford to have your invested money tied up for a number of years, are you prepared to have complete strangers living in your rental and are you prepared to do the work it takes to maintain a rental?

Let's take a look at each of these statements, first buying a rental property means that you are investing for the long run, in other words you will not see and immediate profit as you would from the sale of a house. For most rental owners this not a problem, in fact it is the reason that most of them go into the rental business in the first place. Once you have paid the purchase price of your house off, then the money you have coming in is mostly profit with the exception of yearly taxes and repairs.

Second you must have access to enough funding to pay for any repairs that may come along during the year, some of them will be minor like leaky faucets, other may mean large financial outlays like replacing the roof. Having to borrow money tends to cut into your profit margin rather heavily. Many landlords save money by doing most of the repairs themselves, the only problem with this is you have to be prepared for those two am phone calls.

Lastly you have to be a good judge of character when it comes to finding a tenant; this can be a very difficult thing to do. Picking the tenant who will take care of your house as if it were their own is not an easy task. Many landlords turn to a rental property management company to avoid dealing with this part. Using a rental agency can give a landlord peace of mind, as the agency takes full responsibility for the tenant should anything happen to the house.

Running rental properties can be a very financially rewarding experience for a person who is looking to make money in the real estate business, the payoff is not instant but rather over an extended period of time. It will provide for a steady return on your investment as long as you manage your rentals properly, keeping them in good shape and rented out.

If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read the amazing, true story, in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too.

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Real Estate Investing

Real Estate Investing - Buy the Worst House?

2009-02-05T06:31:00.000-08:00

Real Estate Investing - Buy the Worst House in the Best Neighborhood
By Bill Carey

How can you compete with Investors who are on the look out for the great deals? A way to get a deal for yourself is to limit your search to areas and neighborhoods that you know or can learn quickly. With foreclosures and bank REO's in every neighborhood you should fine tune your search habits.

Check with your local Chamber of Commerce and Board of Realtors each has publications of current sale trends in your city, town or region. Look for the median price range of homes sold and the neighborhoods with the most active number of sales. This is an easy test of what is considered the best areas for most of the buying public.

The real work starts with you researching each neighborhood and the surrounding areas. Your local Realtor Association may have an online access to the basic information of current listings. Or you can work with a realtor and get the all the information. City and County websites have links to property and tax records which is a good place to confirm sold prices if you are not working with a Realtor.

Having identified your best 2, 3, or 4 neighborhoodslocate every property on the market, every vacant property and every property in foreclosure. You want to compare the current listings to the median price range and what was the highest sold price and the lowest sold price.

Start with the lowest priced property. Remember the buying formula and apply it to this property. (formula: Listing sale price = ARV less 3%, Your Buy Price is ARV less 20%+ profit, less 2 - 3 months carrying costs, less repair & upgrade costs, less your purchase costs & closing costs) What will it take to make it the best or close to the best in the neighborhood? Your realtor can help you work on the fianl sale price with a CMA.

Make your offers with knowledge not guess work. You can apply this to any area with any price range just stay around the median for for area. It works for Buy and Hold and for rehabbers and is a way to get your wholesale business moving with good deals to your rehab buyers.

And now I would like to invite you to claim your FREE access to 2 recent articles "9 Tips For You to Make Real Money in College Rental Properties" and "9 Steps to Save Big Dollars For Your Student With In-State Tuition" at https://www.collegetowneproperties.com/Free_Helpful_Articles.html

Bill "The College Rental Investment Guy" is a leading expert on College Rental Investment Properties and Off-Campus Housing.

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Real Estate Investing

Investing In Real Estate and New Regulations

2009-02-01T08:34:00.000-08:00

Investing in Real Estate - The Benefits of New Regulations to Home Buyers - What You Need to Know
By Jack Sternberg

Did you know that the "closing instructions" (the instructions each Title company needs to follow when closing on a property) vary from state to state?

And did you know that's all about to change when the new Uniform Closing Instructions go into effect?

These new regulations are about to change the way you can structure your real estate deals. They were designed by The American Escrow Association, The Mortgage Bankers Association, and The American Land Title and Trust Association who decided to standardize the instructions to make the whole closing process work better.

Real estate investors interested in pre foreclosure investing, flipping properties and creative real estate solutions should be concerned about how these new regulations are going to restrict their ability to turn a profit. However, here's a list of the benefits of these new regulations to homeowners:

Benefit 1: The UCI speed up the Single Family Home real estate buying process and make it more cost effective. E.g., previously, if a retail home buyer changed lenders midway in the process it would always prolong the closing due to the different guidelines from a different lender. The new standards would prevent delays of this sort by providing a set of closing guidelines for ALL mortgage lenders.

Benefit 2: The UCI will cut costs by providing efficiency. It's interesting to note that buying a luxury automobile that costs $200,000 can take an afternoon, while buying a condo that costs less takes at least 30 days. That's due to the efficiency in standardized loan docs in the auto industry. (Though no one suggests that you should try to buy a house in an afternoon!)

Benefit 3: The UCI will help protect borrowers from mortgage fraud. Specifically, there's a whistleblower clause in the UCI that charges the loan professionals to make known to the borrower any suspect dealings in the transactions, and can make them liable for not disclosing such misdealing.

Benefit 4: The UCI will help protect borrowers from identity theft.

Benefit 5: The UCI will help pave the way for automated processes in the industry, including new, online E-mortgages, and reduce the expenses of operation for mortgage companies.

Benefit 6: Create a fiduciary responsibility for all title companies to abide by and protect the mortgage companies. This would essentially compel title companies to be at the vanguard of mortgage fraud defense and help protect the mortgage industry.

Once put into place, the UCI will have two profound effects:
First, the committee feels these instructions will give consumers a gold-standard protection against fraud without need of Congressional action.

Second, (and here's where you really need to pay attention), it will spell the end of "non-traditional" deals-short sales, flip sales, double closings, etc. This means there will be a shift back to conventional mortgage practices and "traditional" investment strategies.

To find out more, claim your free report below, which reveals what you need to know NOW about these new regulations. The more prepared you are for what lies ahead, the more opportunities you'll have to make money investing in real estate. Those who are left in the dark about these new regulations may find themselves leaving the closing table without a check..

Jack Sternberg is a nationally recognized expert on real estate investment who's been in the business for more than 30 years. His deals have totaled over $750 million.

Get the full FREE 48-page report, "The Uniform Closing Instructions Exposed: Critical Factors You Need to Know In A Dramatically Changing Real Estate Investing Environment" at http://www.uniformclosinginstructions.com while it's still free.

Article Source: http://EzineArticles.com/?expert=Jack_Sternberg http://EzineArticles.com/?Investing-in-Real-Estate---The-Benefits-of-New-Regulations-to-Home-Buyers---What-You-Need-to-Know&id=1925761

Investing In Real Estate

Investment - Your Home - The Home Plan

2006-08-20T02:34:00.000-07:00

Your Home Plan as Investment
By Donovan Baldwin

Today, a home is not just a place to live or a shelter from the weather. Many who buy a home plan to sell it. Purchasing a home has for many become something of a home business - no pun intended.

While a home also reflects the personality of the people who live there. At the same time, the home has now become a personal investment. Many people, like one of our close friends, invest their money in their own home rather than an IRA, stocks, FOREX, bonds or other forms of real estate. For many homeowners, this can be a huge and rewarding investment.

Most people, hearing the words home plan think of the planning for building the structure itself. However you must also have a "sell your home plan" if you are intending to use your home for an investment. Either home plan can seem to be a complicated thing, because of the many factors involved in each. You have to sort through all the factors of your intial home plan to get the house you want to live in, and you have to take a look at all the factors of your "sell your home plan".

As in many important decisions, a personal list of positive features and expectations, followed by negatives should be one of the first steps in establishing a home plan or in planning how, when, why, and for how much to sell your home. Next, talk to friends and perhaps even professionals in the home planning field. Read a few magazines. Look at the pictures. Whether your home plan is intended to please you and your family, or to make a home that you plan to sell for the most profit at a later date, it is important to include as many assets as you can.

You may choose to plan a home that has never been seen before. You may wish it to be airy and spacious. You may wish to include the most up-to-date electronics or energy efficient features which will bring value to you and your family while increasing the investment value of your home when your "sell your home plan" says the time is ripe.

Another factor that is important when you begin your home plan and later when you plan to sell your home is location. Your should you plan the home to fit in with the surrounding environment. The location of the home should be pleasing to you, but it should also be such that when the plan says it's time to sell your home, it will be a valueable asset attracting homebuyers.

Whichever end of the home plan process you are looking at, there are professionals to help you with decisions, and there is even software to assist you in everything from planning your new home to planning to sell your home. There are many sites on the internet where you can find people and information to help you with both sides of the home plan process...the plan to build or acquire a home, and the plan to sell your home.

Whether you design a home planned to satisfy you and your family, or you plan your home with investment in mind, a little thought and effort will be rewarding. Your home plan is important.
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Have you tried FOREX trading?

Real Estate Investing: Investment Clubs

2006-03-22T20:10:00.000-08:00

Real Estate Investing
Real Estate Investment Clubs?
By Steven Gillman

Your local real estate investment clubs or associations will educate you. It won't be book education, but useful knowledge about your local real estate market. The people there are investors, many who have gotten wealthy investing right in your town. This means you'll get meaningful and specific advice on what is working in your area, where to go for an inspector or property manager, and many other tips and based on real experience.

There are also the actual money-making opportunities that you'll find. People there may need a partner with money, or a partner with time to find deals. Some have properties for sale and want to save the sales commission by selling to one of the members. Also, if you have a business that's in any way related to real estate, you can make valuable contacts. Handyman or landscapers can often find business at our local real estate investment club meetings.

Real Estate Investment Clubs - An Example

The local association that my wife and I belong to is AZREIA, or "The Arizona Real Estate Investors Association." I'll tell you a little about it. If you don't have a similar organization in your own town, this may give you ideas for what to include if you start one.

The association sponsors many educational events and seminars for reasonable fees, but the regular meetings are once each month, and included in the membership fee. It cost $195 per year for the two of us to join. As I write this, I am looking forward to tomorrow's meeting, which will include a winner of the TV show "The Apprentice," Kendra Todd, telling us how she made her first million in real estate.

Speakers are great, but I also like the regular events. Every meeting starts with "Open Networking," for thirty minutes or so. It's an opportunity to meet people, learn a little, and take down names and numbers. We each have a name tag that also tells everyone what our primary interests are, ranging from rental properties to fixer-uppers to wholesaling.

The monthly meeting then officially starts with "Structured Networking." This involves filling out 3 x 5 cards with your name, occupation, real estate experience, and investments you are interested in. This information is systematically traded with randomly chosen others. It's surprising how often profitable connections are made during this process.

The best part of the meeting is the "I have / I want" event. Members (or even visitors) can stand up and announce what they have and what they want. The host writes their phone number on the overhead projector. It is sometimes something as mundane as a microwave an investor needs to get rid of, that someone doing a fixer-upper might need. Often, it is someone who has money but needs help finding good investments. I once announced that I was looking for a mobile home park to buy, and I received three calls within a week.

The meetings are not formal affairs. The millionaires in the room are as likely to have on jeans as a suit. Everyone shares a common purpose - to make money investing in real estate. In fact, even if you have no money to invest, yuo can do just fine. Just go find a great deal, and if the numbers truly work, you can probably find the money at these meetings. It is just one more great thing about real estate investment clubs.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Article Source: http://EzineArticles.com/?expert=Steven_Gillman

Real Estate Investing

Real Estate Investing - The Strongest Investment

2006-03-11T03:40:00.000-08:00

Real Estate Investing
Why Land is the Strongest Investment Outperforming Property and Stocks
By Paul Burrows

Did you know?

89,000 people from the UK and USA in January 2006
were looking for UK land investments to purchase via the internet using google and yahoo

Why Land is the strongest investment

There is a huge shortage of Land In The United Kingdom, which is fuelling house prices and rising homeless, so buying land which is undeveloped that can be purchased is a great investment opportunity and taking into account the supply and demand situation in relation to the UK property requirements it is easy to see why.

Land value is rising steeply, and to many who thought this type of investment was only open to developers and professional investors, this is just not the case anymore.

Top Investment Properties represent Leading Property Developers in the UK who offer land investment on their Prime Residential Developments which meet the overwhelming housing demand in England – and, the planning process is handled by the Developer at no additional cost to you, with the buy back agreement in place before you spend one penny!

"One Simple investment can make over 400% return within 4 years"

Many Investors are buying because of the huge benefits of compounding on land that will give them massive profits in the near future using this proven method for wealth creation.

Land Investment Versus Property Investment
Land Investment benefits from no mortgage, tenants, voids, maintenance, utilities etc, etc, etc, as you would expect when purchasing a property for investment, this would mean no headaches and worries at all.

Also with a property investment the initial outlay is higher, and there is no guarantee you would sell at a high profit in the present climate within 4 years, yet alone over 400%.

Compounding
Land is a great low entry investment strategy with the benefits of compounding using this program, let me explain more.

There are now lots available from £10,800 upwards and with the buy back option from the developer in the period of 4 years at around 425% growth, you can make a return on investment of around £45,700.

If you now work this out and compound your land investment of £10,800 every 4 years at this growth rate with this particular land programme, this entitles you to get into more land investment deals, and because the developer is always offering a buy back option, you have the choice, to flip, resell hold or compound.

One initial investment of £10,800.00
4 years return on investment: = £45,900.00
compound for 8 years return on investment = £195,075.00
compound for 12 years return on investment = £829,068.00

So for a total of 12 years your return on investment when compounded works out at £829,068.00 from 1 investment of £10,800.

this developer has 1000s of Acres of land with potential development for investment- and the planning process is handheld by the developer, therefore has the buy back agreement in place before one penny is spent.

Paul Burrows has been providing real estate hot spot information for the last 2 years and has successfully matched Investors with Investments within the same period. If you would like to know more about Land Investment and our 6 Hot Reasons to invest Right Now then please click here http://www.topinvestmentproperties.com/land/ukland.htm

Article Source: http://EzineArticles.com/?expert=Paul_Burrows

Real Estate Investing

Real Estate Investing: Donald Trump

2006-03-08T11:57:00.000-08:00

Real Estate Investing
Investment Secrets – The Investment That Made Donald Trump Billions
By Sacha Tarkovsky

There is an investment secret that has made many of the world’s wealthiest investor’s huge capital gains.

It has out performed shares, mutual funds unit trusts and property, with lower volatility and has out performed many so called higher risk investments such as managed futures and currencies.

This simple investment secret for capital growth is open to all and only needs a minimum investment of around $10,000.

So, what is it? Read on …

It’s, investing in land

If you have never considered land, its time to start, it really is the investment secret that has made astute investors worldwide fortunes.

It’s now affordable for smaller investors and there are many specialist companies catering for inexperienced investors who can give all the advice and help you need to turn your investment into long term capital gains potential.

As Donald Trump said:

"I just love real estate. It's tangible, it's solid, and it's beautiful."

Howard Hughes was another who took advantage of this investment secret and made big gains, buying underdeveloped land in California, which is now worth billions.

You don’t have to be rich to invest in land either, anyone investing in mutual funds, unit trusts or shares should consider it as a portfolio diversification.

A recent newspaper article featured an investor who turned just a 1,000 investment into 3.5 million in just 11 years!

Now, you may not do as well as this investor but land represents a fantastic opportunity for those who know how to buy in the right location.

So where should you buy land?

The investment secret of investors worldwide is to buy land in the UK for capital growth.

Why?

Quite simply, it is one of the most densely populated countries in the world, has a rising population and a huge shortage of affordable housing.

This means land in the RIGHT location is in short supply.

Buying in the right location

To maximize this investment secret you need to buy in the right location.

Once the land is granted planning permission to build houses, investors will see a big capital gain on the land and can sell at a profit.

920% average gains!

The AVERAGE capital gain on UK land has been a staggering 920% over the last 20 years.

This is far in excess of shares unit trusts or mutual funds and many leveraged investments. Even better this investment has featured low volatility.

Keep in mind this is the AVERAGE and astute investors with good plot location have made far bigger gains.

Limited downside

The downside is limited as well. Even if a land investment does not appreciate much in value it’s unlikely to fall in value much either. As over the longer term land prices tend to rise in value anyway.

Mark Twain once said:

“Buy land their not making it any more”

That’s good advice! As you can see this investment secret is essentially easy to understand and is open to all investors.

Liquidity buy back options

If you need your money quickly, many land companies offer a solid buy back option for the land purchased, so you can cash in your investment at anytime.

Land therefore has a lot of advantages and when you add them all up they give everyone access to the investment secret the world’s wealthiest investors have known for years.

Free report on land investing telling you all you need to know about investing, buying in the right location and buy back options, request your FREE copy today:

http://www.lpgroupinternational.com

Article Source: http://EzineArticles.com/?expert=Sacha_Tarkovsky

Real Estate Investing

Real Estate Investing: Idea for Newbies

2006-03-05T07:34:00.000-08:00

A REAL ESTATE INVESTING IDEA FOR TOTAL NEWBIES
Copyright © Donovan Baldwin
http://www.quit-the-ratrace.com

All right, you've seen the infomercials for people like Carleton Sheets, or you read an ebook by somebody like T. C. and Vickie Bradley, and you're hot to trot out your wallet and get rich with real estate investing...just like everybody else.

Whoa, Trigger.

Not everybody IS getting rich with real estate investing, no matter what the hype leads you to believe.

First, let's understand a couple of things. There ARE people getting rich with real estate investing. Many of these people have followed the lead of Carleton Sheets or T. C. Bradley or other real estate investing gurus. Those are facts.

Here's one additional fact. If you don't know what you are doing, you can lose your shirt in real estate investing...like a lot of other people.

That's not to say you can't learn, and it's not to say that people like Carleton Sheets or T. C. and Vickie Bradley can't teach you. What it does mean is that you can't listen to one tape, or read one book and run out the door asking for somebody to please take the contents of your wallet! You have got to take the time and make the effort to learn the facts, steps, and inside information necessary to become successful in real estate investing.

However, I realize that those dollar bills are burning a hole in your pocket and you want to get started NOW, so here's a simple way to begin your trek to the top.

Let me tell you how Lois got her real estate investing empire started in Austin, TX. She looked around until she found a small, but well-maintained 4-unit apartment complex in a nice Austin neighborhood. The price was right, so, not having the credit herself to swing the deal, she got her dad to cosign with her. Once the place was hers, she moved into one unit (no more rent to pay), the rent from another unit covered the monthly mortgage, and the rent from the other two units was hers to keep.

Not exactly a get rich quick plan, but it was a start. Since she still had a full time job, she used the extra money from the apartments to pay off bills and loans, including the mortgage, at an accelerated rate. This gave her leverage to buy another unit, and the rest is history. She now is an Austin slumlord...! Seriously, she has done well in this simple way and has grown her initial real estate investment considerably.

In his article, "Buy High Yielding Turnkey Real Estate Investments With Your Signature Alone!", Bill Young, a former bank mortgage officer and real estate investor since 1980 gives valuable pointers in getting started in this sort of deal, sometimes with no down payment required. You can find a copy of this article at http://real--estate--investing.blogspot.com/2006/03/real-estate-investing-buy-with-your.html .

While wheeling-and-dealing in real estate investments can make fortunes, there is a learning curve required to make the kind of money professionals like Carleton Sheets and T. C. Bradley do. If you are a total newbie and just HAVE to get into real estate investing, you might be well advised to follow the example of my friend, Lois, and start with small, occupied apartment units, perhaps using some of the space as a residence, as she did, and using income from the units for investment growth.

About The Author:
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The author is retired from the Army after 21 years of service. He has worked as an accountant, purchasing agent, optical lab manager, restaurant manager, instructor and long-haul, over-the-road truck driver. He has been a member of Mensa for several years, and has written and published poetry, essays, and articles on various subjects for the last 40 years. He has been an active internet marketer since 2000, and now makes his living online. To read more articles by the author, please visit his blogs on Internet Business and Marketing, Health, Fitness, Diet and Weight Loss, or Real Estate Investing.
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Real Estate Investing: Foreclosure Investing

2006-03-03T06:28:00.000-08:00

Real Estate Investing
Foreclosure Investing through Private Investors
By Paul Wells

One of the ways to get money to buy foreclosures is from private investors. This article discusses why private investors are so important to your foreclosure investing business.

A traditional way to get money for your foreclosure investments is through a hard-money lender. The hard-money lender will generally charge a percentage of the amount borrowed, or what is known as points. Three points would be three percent of the transaction. For example, if you borrowed $100,000, at 3 points, that would be $3000.

Many hard-money lenders charge interest-only on their loans, meaning they get their principal back in full and the way they make their money is on the interest. In a short term proposition this is not a bad scenario because at the beginning of any amortization schedule, the majority of the money paid out of the monthly payment goes to the lending institution. However, I have seen hard money lenders charge as much as 15 points on smaller deals to be able to fund the deal.

As I continued on with my business, and I started doing more and more deals, it become apparent that my number one need was going to be private money but without the points. So I had to put myself in the place of somebody loaning money.

Put yourself in their place. If you wanted to loan money what would you want to know about the person you’re loaning money to? Obviously, the number one criteria for someone loaning money is, how sure am I going to be that I am going to get my money back, or even a portion of my money back?

One of the most common problems with young investors is that they have no money to invest or their credit is too shaky to finance things themselves. Most banks seem to want more documentation than any person on earth can provide. The challenge in creative real estate is deals need to be done fast. Banks are notorious for not doing things at a speedy pace, but a molasses pace.

One of the exciting things about being a creative investor is that you can take ideas the average person would never have and build them into great dynasties of real estate wealth. Yes, I said great dynasties. It is potentially possible, if you have the ability to network your way through the private investment community, to add a tremendous amount of zeros to your bank account balance.

One of the true challenges for a young real estate investor is going out and finding a good deal but then not having the particular money in place at the time to pull the trigger. The power of private money can be the answer to your creative real estate financing problems and can help take you to the next level.

_________________________________________________

Paul Wells has been investing in foreclosures full-time for more than 5 years. To ask Paul a question, go to his Foreclosure Investing blog here: http://www.AskPaulWells.com

Article Source: http://EzineArticles.com/?expert=Paul_Wells

Real Estate Investing

Real Estate Investing: Ten Tips

2006-03-02T13:11:00.000-08:00

Real Estate Investing
Ten Real Estate Investing Tips
By Steven Gillman

Real estate investing tips tend to be a bit vague, like "invest in the right location," or "make sure the numbers work." Actually, tips like these are important principles to remember. However, since they have been well represented in other articles, I want to share a few more specific tips with you.

1. Listen to the market. The cabinet guy looked to me for a decision. I realized that I knew nothing at all about which cabinets people like, so I asked him which ones others were choosing, and he pointed to one that three quarters of his last forty customers had chosen. That's the one I want, I told him. Why argue with the market you are trying to sell to?

2. Do your own research. The real estate agent might show you only the comparable sales that make the property look more valuable. Do your own research. Some counties have made it easy now, with sales prices online. You can also search any number of sites with MLS listings, just to get an idea about the asking prices of other nearby properties.

3. Partner carefully. When you do a deal with partners, be the money or the management, but not both. Group decisions tend not to work well in real estate, and will cause you much stress. Once you decide on and agree to a plan, step back if you are investing the capital, and let your partner do his thing. Of course, step up and take control if you are managing the project.

4. Negotiate openly. Just ask a seller outright, "What do you want to get out of this?" It is rare that someone is offended by this simple question, and it saves you from wasting valuable time talking about things that don't interest him or her. Once you get a clear answer, you can decide if you can give them what they want, and still get what you need.

5. Invest safely. Investing isn't gambling. There is always risk, but the difference is that the odds are in your favor. If not, you are gambling. This why you shouldn't invest based on continued price increases. There is no guarantee that prices will continue up at any particular rate. Do deals that work even if prices go nowhere, and if values go up, you're that much better off.

6. Run the numbers. It is about the numbers, and if it is income property, it's about one number in particular: cash flow. Whatever the local formulas are, whether gross rent multipliers or capitalization rates or whatever, just be sure that after every last expense you'll have cash flow from the very first month.

Rules, formulas and real estate tips are really just guidelines. Even the rule above about cash flow can be broken if you know that rents can be raised soon, for example. You have to use common sense and learn from experience, and you can't replace good analysis with rules, formulas and real estate tips.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Article Source: http://EzineArticles.com/?expert=Steven_Gillman

Real Estate Investing

Real Estate Investing: Buy with your signature.

2006-03-01T16:26:00.000-08:00

Real Estate Investing
Buy High Yielding Turnkey Real Estate Investments With Your Signature Alone!
By Bill Young

The worst thing an inexperienced or time strapped real estate investor can have is cash!

Every day, new investors come to us with similar problems. They are losing money on their rentals, they are being driven crazy by tenant, toilet and trash problems and they want out!

They saw “everyone” getting rich in real estate, so they decided they wanted in. They took a couple of courses, read a couple of books and they were ready, or so they thought, to buy rental properties for passive income.

Little did they know that fully 1/3 of small property (1-4 units) owners are driven out of the business each year by the same problems they were encountering!

So, instead of trying to decide which antique letter opener to use to open this month’s rent check, they find themselves trying to decide whether shooting or cyanide is the least painfull way to escape their property’s problems.

Baby sitting tenants whose only purpose in life was to make theirs miserable was no fun. Adding insult to injury, they were paying for the privilege month after month through negative cash flow! Sound familiar?

Many had already sold, most taking losses on their once prized “investments.”

It doesn’t have to be that way.

If they had taken the time to study real estate and acquire knowledge of triple net leases, trusts and equity shares, among other advanced techniques, they could have avoided most of their problems.

Like Robert Kiyosaki, the best selling author says, if you do not have the knowledge to make money in real estate with no money, you will only lose the money you have, investing without the knowledge.

Fortunately, there is an easier way for the new or passive real estate investor to acquire high yielding investments without spending years and/or thousands of dollars on courses to obtain the required knowledge.

The solution is Turnkey Investments that produce high yielding passive income. You can buy them with your signature alone or if you do not have good credit, with seller financing in most cases.

With a turnkey investment, a knowledgeable, experienced real estate professional pre-packages the investment and sells it, ready to go, to you.

The property is occupied, producing positive cash flow monthly and there is a profit built into the buying price, along with an upfront cash payment to you in many cases!

Most importantly, there are no management, repair or maintenance problems for you to contend with. The tenant is contractually required to handle those issues himself! All you have to do is to (add water and stir!) purchase the property and supply an address where you want your checks mailed!

These pre-packaged investments make passive income a reality, even making out of state ownership feasible.

If you have a high enough FICO or credit score, (680+), you can buy the investment with just your signature, no money down!

If you do not have good credit or you just don’t want the hassle of qualifying for a bank mortgage; say you are self employed or a small business owner, you can usually avail yourself of seller financing with a reasonable down payment.

If you have an IRA or other retirement fund, you can buy the investment with your retirement funds and rake in tax free returns so high they’ll make you blush as you tell your friends about it!

When looking for a high yielding, turnkey investment, you want to make sure it includes:

· Monthly positive cash flow and at least 5 other profit centers
· No management or repair responsibilities
· No violation of the lender’s due on sale clause
· Bullet proof asset protection
· Does not produce a taxable event on sale

If you are not familiar with the meanings of some or all of these terms, you can learn about these and other advanced investment concepts at our blog, http://repg.blogspot.com

You should definitely consider turnkey, signature investments until you have the time or knowledge to go it alone.

Copyright 2006 Bill Young.
Bill is a former bank mortgage officer and has been a real estate investor since 1980. He and his associates are real estate consultants and run several real estate educational and investment websites, including http://SignatureInvestors.com and http://SellerFinanceCenter.com You are invited to visit and learn more about Turnkey Investments.
Article Source: http://EzineArticles.com/?expert=Bill_Young

Real Estate Investing

2006-03-01T16:16:00.000-08:00

Real Estate Investing:
Foreclosure Investing through Private Investors
By Paul Wells

One of the ways to get money to buy foreclosures is from private investors. This article discusses why private investors are so important to your foreclosure investing business.

A traditional way to get money for your foreclosure investments is through a hard-money lender. The hard-money lender will generally charge a percentage of the amount borrowed, or what is known as points. Three points would be three percent of the transaction. For example, if you borrowed $100,000, at 3 points, that would be $3000.

Many hard-money lenders charge interest-only on their loans, meaning they get their principal back in full and the way they make their money is on the interest. In a short term proposition this is not a bad scenario because at the beginning of any amortization schedule, the majority of the money paid out of the monthly payment goes to the lending institution. However, I have seen hard money lenders charge as much as 15 points on smaller deals to be able to fund the deal.

As I continued on with my business, and I started doing more and more deals, it become apparent that my number one need was going to be private money but without the points. So I had to put myself in the place of somebody loaning money.

Put yourself in their place. If you wanted to loan money what would you want to know about the person you’re loaning money to? Obviously, the number one criteria for someone loaning money is, how sure am I going to be that I am going to get my money back, or even a portion of my money back?

One of the most common problems with young investors is that they have no money to invest or their credit is too shaky to finance things themselves. Most banks seem to want more documentation than any person on earth can provide. The challenge in creative real estate is deals need to be done fast. Banks are notorious for not doing things at a speedy pace, but a molasses pace.

One of the exciting things about being a creative investor is that you can take ideas the average person would never have and build them into great dynasties of real estate wealth. Yes, I said great dynasties. It is potentially possible, if you have the ability to network your way through the private investment community, to add a tremendous amount of zeros to your bank account balance.

One of the true challenges for a young real estate investor is going out and finding a good deal but then not having the particular money in place at the time to pull the trigger. The power of private money can be the answer to your creative real estate financing problems and can help take you to the next level.
_________________________________________________
Paul Wells has been investing in foreclosures full-time for more than 5 years. To ask Paul a question, go to his Foreclosure Investing blog here: http://www.AskPaulWells.com
Article Source: http://EzineArticles.com/?expert=Paul_Wells