Monday, November 30, 2009

Creative Financing - Use it To Get A Better Real Estate Deal

Creative Real Estate Finance

Use it To Get A Better Real Estate Deal

Peg Holland - Dec 4th, 2007

When it comes to real estate investing, there are plenty of reliable resources that provide some creative financing options:

Get A Seller's Concession: In a slow market, such as we have today, a motivated seller may readily concede a portion of the closing costs to offset the buyer's financial burden at the closing. For example, if you, as the buyer, are purchasing a property for $100K, ask for a seller's concession of 3 to 5 percent, which is within the guidelines that most banks allow, depending on the amount financed. If you ask for a 3 per cent concession, which in this case is $3,000, the seller is agreeing to receive $97,000 at closing. Once you have this agreement in place, be sure to include it in the contract.
Get 100% Financing: Because of the slow market we are in today, you will find many in the lending industry tightening up their practices. However, there are still plenty of mortgage products to meet most buyers' needs. As an example, there is an 80/20 mortgage that allows for the entire cost of the property to be financed by the bank. This is especially beneficial if you do not have a down payment. Here's how it works: The primary loan (i.e. the first mortgage) represents 80% of the mortgage and the secondary loan (i.e. second mortgage) represents the remaining 20%. It's best to try to get a fixed rate on the first mortgage because more than likely you may have to pay a higher adjustable rate on the second mortgage. Go to banks who have been in business for a long time or mortgage brokers who have access to a wide number of lenders and ask them what type of mortgage products they offer. Recognize that although this will be 100% financing, you still may need to pay closing costs for the loan, so ask, at the very beginning, what fees are involved with the funding.
Find A Program Or Organization: National programs abound for first time homeowners and investors also. There are programs that offer down payment assistance to first time home buyers with low to moderate income. Look up the Neighborhood Assistance Corp of America (naca.com) which offers its members counseling, low interest mortgages with no down payment or closing costs and also renovation assistance. There may be rules and restrictions, so be sure to do your due diligence before making a decision.
Use OPM: That's right...buyers can use other people's money by partnering with investors, friends, colleagues and even family as well as your traditional bankers and mortgage brokers. Your agreement with your partner should specify the loan amount, the interest rate, the payback period and any other stipulations you might make. It's best to set up the proper paperwork through a real estate attorney.

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About the author: Peg Holland

Peg, owner and CEO of Paragon Enrichment Group, a consulting firm for home based internet businesses, has been involved with network marketing for several years.

Prior to that she had held corporate managerial positions where her financial skills were used daily as she forecasted various new business opportunities.

Also, Peg had previously been a licensed Realtor, hence her continued interest in the Real Estate/Mortgage Industry. http://www.6figuresasap.info

Visit www.6figuresasap.info

Wednesday, November 25, 2009

3 Reasons to Hire a Property Management Company to Run Your Real Estate Investment Property

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3 Reasons to Hire a Property Management Company to Run Your Real Estate Investment Property

By Joel Teo

The recent downturn of the global stock market saw millions of 'every day' investors having their fingers badly burned. Overnight life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy to say the very least.

Real Estate Investment sounds like a cool thing to do during the weekend but the problem arises when you start having to many properties to handle. The solution to your real estate investment problem would be to hire a property manager who can then run your property for you and deal with any problems that may arise. The key is to get a reliable person who can then do any repairs or maintenance work for you.

This article will highlight three additional reasons why you might want to hire a property management company to look after your real estate investment property for you.

The Time Element

Firstly, you might be a busy professional or business person during the weekdays and you do not want to run around looking for a plumber or roof repairer sometime during the week. Time is valuable also if you have several properties that you own and it does not make sense to baby sit your properties.

Opportunity Cost

Thus you would do well to remember that your monthly income is dependent on the number of deals that you can find to add to your real estate investment portfolio. Get your focus right and you will make more money from your real estate investments.

Proximity Is A Key Issue

Secondly, proximity is a key issue. One real estate investment author states that he does not own property unless it is within one mile from his own residence. If you want to look after your own properties it is fine but you must be able to go down and take a look if there is any issue arising from your properties.

Note that returns from both offshore rentals and capital appreciation currently in places like Dubai might prove more lucrative so if you are looking into offshore real estate investment, hiring a property management company is a must. Similarly, if you are looking at investing in property outside the state that you reside in, it will be necessary for you to hire a property management company to look after your property.

Familiarity With The Documentation, The Procedures

Thirdly, if you are new to the type of property class, you might want to consider employing the services of a property management company. For example if you have been involved in residential real estate for a long time and you decide to expand to commercial real estate, you might not be familiar with the documentation, the procedures and the possible problems that may arise from such real estate. Hiring a property management company therefore may help you solve some of your transition problems and like mentioned earlier free you to explore other real estate investments.

In conclusion, real estate investment property when done on a small scale in your locality may be okay for a while but when your investments start getting numerous and unwieldy, you might want to tap on the services of a property management company to help you manage your properties thus freeing you to look for more property deals.

Joel Teo is the owner of several websites and takes a keen interest in real estate investment.
Learn more about real estate investment at http://www.realestateinvestment101.info

Article Source: http://EzineArticles.com/?expert=Joel_Teo
http://EzineArticles.com/?3-Reasons-to-Hire-a-Property-Management-Company-to-Run-Your-Real-Estate-Investment-Property&id=197571

Home Equity Loan: What You Should Know

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Home Equity Loan: What You Should Know

By Bill Darken

Many people are talking about a home equity loan, at work, weekends and even at the dinner table. Why is it the flavor of the month and what should you know about a home equity loan to ensure you stay out of strife if you decide to enter this realm.

Owning your home is a valuable asset for anyone in a lifetime. If you agree to a home equity loan, you are in fact putting this great asset at risk. Home equity loans are appealing due to the low interest rates and (in some cases) the tax deductibility of interest, but they also represent a risky business.

It sometimes has to be faced, if things don’t work out. Consider a significant expense and not to having the necessary cash to cover it. Examples of such expenses are medical bills, major house repairs or a child’s college education. A home equity loan could be the solution to your financial problems, at least for a short term. By using the equity you’ve built in your home over time you can borrow a significant amount of money. You have to repay the amount borrowed plus a (usually) low interest over a fixed period of time. If you fail to do this, you may lose your house.

Usually, in order to pay off the entire loan until the fixed time, you are required to make equal monthly payments. The lenders are obliged to disclose all important facts of their home equity plan, all terms and costs, such as the APR, different charges, and payment terms. After you have received this information, lenders do not normally charge any other fee that has not been specified in the plan. When you take on a home equity loan, you have normally had a few days from the day the account was opened to cancel it.

There are some basic although important things you should consider when you’re considering a home equity loan, in order to avoid a life changing mistake sometimes.

Firstly, if you have money problems, you must consider other options too, before using the equity in your home. Talk to your creditors or contact a budget counseling organization. A plan that would consolidate or reduce your payments might be enough to get you out-of-trouble. Also ask the opinion of someone other than the lender offering the home equity loan. someone you trust and who is reasonably knowledgeable.

If you decide a home equity loan is what you want, you should research the offers of several lenders, including banks or a credit union.

There are many lenders who make use of abusive lending practices and you must be aware of these practices if you want to minimize your risks. Here are some scenarios of such practices.

• Equity stripping. You have built up equity in your home but you don’t have much income coming each month and you need money. A lender encourages you to make a home equity loan, even if you explain that your income is not enough to keep up with it. Of course, the lender doesn’t care if you are not able to pay, he has nothing to lose, on the contrary, he wins a lot. If you are not cerebral enough to get a realistic view of things and let yourself be easily persuaded you will probably lose your home.

• The balloon payment. You’ve already made a home equity loan and, fail to pay the mortgages and you’re very close to losing your home. Another lender offers to save you by refinancing and lowering your monthly payment. You have to be very attentive regarding the loan terms. The reason why the payments are lower may be that he asks you to repay only the interest rate each month. At the end of the term, you may find you still have to pay the entire amount that you borrowed. This sum is called a balloon payment.

• The home improvement loan. A contractor offers to remodel your kitchen, or install a new roof at a low price. You explain you can’t afford this, but he offers to arrange finance through a lender he knows. You agree and he begins work. At some point, you are being asked to sign a lot of papers without having enough time to read them and you sign them. Later, you realize you’ve signed a home equity loan, and even one with aberrant terms and interest rates.

By using the equity in your home, you can benefit by receiving a significant fixed amount of money, repayable over a fixed period, available for any kind of use and at a low interest rate. You may also be allowed to deduct the interest, under the tax law. At a first glance, the home equity loan sounds appealing. But, on the other hand, if you fail to repay, for one reason or another, you may lose your home. Bottom line is that a home equity loan is a good thing if managed and used carefully. If you are considering a home equity loan, you should carefully balance costs vs. benefits, before charging ahead.

About the author:Bill Darken

There are highly informative eye opening articles and up-to-date loans news as well, see it here at home equity loan or if the previous link is not working, you can paste this link in your browser - http://loans-only.com

Article Source: http://EzineArticles.com/?expert=Bill_Darken
http://EzineArticles.com/?Home-Equity-Loan:-What-You-Should-Know&id=332459

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Monday, November 23, 2009

Exposed! The Real Estate Wholesale Quick-Turn Flipping Deal

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Exposed! The Real Estate Wholesale Quick-Turn Flipping Deal

Alain Diza

Wholesale real estate investing (i.e. "quick-turn" or "flipping" real estate property) is conceptually very simple. Here's how it works:

First, "Investor A" finds a great real estate deal with a lot of equity.

Typically, Investor A will have spent a significant amount of time, money, and expertise to find the deal, negotiate the terms, and get the property under contract. By putting the property under contract, Investor A now has control of the property, and the equity in the property.

(For this example, imagine that Investor A has found a property worth $200,000 and has set a purchase price of $115,000 and he also knows that there are $15,000 in repairs, which leaves an equity position of $70,000).

Second,"Investor A" finds another party, "Investor B".

Investor B recognizes that the contract that Investor A has established is worth $70,000 in equity, and so he strikes a deal with Investor A to turn the deal over to Investor B in exchange for some amount of cash, called an "assignment fee" (we'll use the value of $12,000 in this example).

So Investor A is giving up $70,000 in "potential" profit in exchange for $12,000 in current profit. And Investor B is paying $12,000 because he believes he can make more than that on the deal, since there's a full $70,000 of equity built in.

This deal between Investor A and Investor B is called an "Assignment", because Investor A is assigning the contract to Investor B.

Third, Investor B does his "due diligence"

Due diligence in this case consists of inspections, appraisals, etc. to confirm that the deal is as good as he/she thinks it is.

Finally, at closing, Investor B closes the purchase of the property.

At this point, upon closing or completion, Investor A receives the assignment fee from Investor B.

This is obviously, a simplification of the process. But this is essentially how the "quick-turn", real estate flip deal works - not so difficult now, is it?

Now, get out there and hunt them deals down!

What? Not sure where or how? I can show you 3 quick sources to get you started right away...

About the Author

Alain Diza makes it easy to understand the mechanics of the real estate wholesale quick-turn flip. Learn this principle and private strategies the 'gurus' are charging thousands for. Get your free e-course at: Free Course

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Don't Cross Collateralize Your Loans

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Cross Collateralization - there is a better way

Does It help or hinder you?

Cross collateralization occurs when the bank uses the security for one loan to secure another loan.

What you want to aim for is to have any property you own, investment or otherwise, financed with free standing finance.

How Can It Help You

For property investors just starting out, using your home equity can help you get your first investment property most easily. The advantage of using cross collateralization is that you can borrow 100% or more of the price of your next property plus the costs of purchasing (usually about 5% - 6%).

How Can It Hinder You

The biggest disadvantage of crossing your collateralization is that it ties you to one financial institution.

I'm not saying your current bank is a bad bank, they may have served you faithfully and well for many years, but you are embarking on a new business venture here and your current bank may not be able or willing to meet your needs going forward.

Yes you heard me right, every piece of investment real estate you buy is like a new business venture. It works for you producing a cash flow week in week out and will produce long term capital gains profits that are reliable, rock solid and way beyond what you could earn by working or saving.

However cross collateralisation can bring your real estate investment financing plans to a standstill.

For example it is usually mandatory that the properties being cross collateralized be in the same state. If you want to be free of restrictive banks lending rules then use a line of credit to borrow the funds you need instead.

When you are planning to purchase a real estate investment and you approach the bank to get a loan amount pre approval, the bank will usually assume that you are going to cross collateralize your home to purchase the investment property.

Why Should You Avoid It

For most property investors this is not what you want. By asking that the equity you have in your home or other real assets be made available to you as a LINE OF CREDIT you are put in a much more flexible position.

If you are sure that you only want to purchase one investment property, cross collateralizing your home may serve your purpose.

No Money Down property Investment

This is usually achieved by using a cross collateralization. But using the techniques on discussed on the REFINANCEING REAL ESTATE INVESTMENT and HOME EQUITY LINE OF CREDIT pages you can use more advanced techniques to buy investment property with no money down.

Remember, what you are aiming for is to have any property you own, investment or otherwise, financed with free standing finance. This is achieved by making use of a line of credit secured against your home initially. As the value of your property investment portfolio increases you can set up more lines of credit to access the available equity you have in your real estate investment portfolio.

See these related related articles in
Wikipedia and EzineArticles for more information

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Cross Collateralization
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Real Estate Investment Property can give you Financial Freedom

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Financial Freedom Is Within Your Reach With Real Estate Investment Property

Financial freedom can be yours with real estate investment property.
You can have financial freedom, sooner than you think. Here is a quick overview of how to do it.

Start with an evaluation of your current financial position. See this real estate investment finance for an effective strategy to get favourable (lending) results from a bank or other financial institution.

How To Build A Cash Flow Model For Your Real Estate Investment Property

By Joe Tosolt

About To Start Investing In Real Estate?

Are you about to start investing in real estate? Or perhaps you've already put your toe in the water but want to learn more. Here is an overview of the factors you need to take a look at in order to project your potential return on an investment.

Purchase price - obviously, the amount of money you put out for the property is significant in determining your investment outcome.

The annual appreciation rate at which you expect the property's value to increase.

How many years you expect to hold the property. Combined with the 2 figures above, this will enable you to estimate a future selling price.

Number of rental units, and rent you expect to receive from each unit.

Annual rate of rent appreciation.

Expected unoccupancy rate - it's important to remember that tenants come and go, and will occasionally leave you with empty rental units. It's best to plan that into your projection.

Any miscellaneous revenue you anticipate (laundry facilities, etc.), and the rate at which you expect those revenues to grow.

Property management fees. Even if you expect to manage the property yourself, it's best to budget in an allowance for professional property management. First, this rewards you for the time and effort you invest. Second, it ensures that you are covered if for some unanticipated reason you need to turn the management over to a pro at some point in the future.

Last, but not least, you need to know your opportunity cost, something that big investors would call the 'cost of capital'. For example, if you can earn 5% by keeping your money in the bank, you're going to want a lot more than 5% for taking on the risk and time investments required by a rental property!

Annual operating expenses, and the rate at which you expect those expenses to increase over your term of ownership.

Property taxes and rate of annual increase.

Insurance and rate of annual increase. It's critical to insure your substantial investment!

Any miscellaneous expenses, and rate of annual increase.

Depreciation expense. To determine this, you'll need to estimate the building's assessed value as a percent of the total purchase price.

Your annual capital investments in the property. You were planning to budget on capital improvements, weren't you?

Downpayment - how much cash are you putting in upfront?

Bank fees - how many points do you expect to pay, and what closing fees do you expect to incur if you will putting a mortgage on the property?

What mortgage interest rate do you expect? And how long will the payback period be?

Now that you've got all the numbers laid out in front of you, you 'just' need to build a financial model which will allow you to project cash flow throughout your ownership term, and then use time value of money calculations to create a present value of those flows. Compare the present value of your future cash receipts against the amount of cash you will outlay upfront. If it's greater, congratulations- you have positive Net Present Value, and this property looks attractive. If the result is negative, it's a red flag-- you need to take another look, because this may not be a good deal for you.

The obvious comment you might have is... "This all sounds awful hard! Aren't there tools which can help me?"

The good news is that there are! In fact you can use an online investment property calculator which will do all of the heavy calculating for you. You simply plug in the numbers, and review the results. Now THAT's some smart investing!

Here's some great news: thorough financial analysis doesn’t need to cost a lot of money or take up much of your time. The Real Estate Genius investment property calculator runs the numbers and calculates the cash flow instantly– you just gather the facts, and plug in your assumptions.

Joe Tosolt is the president of Real Estate Genius, LLC, which empowers property investors with fast, powerful tools for performing discount cash flow analysis and projecting financial returns on prospective property investments. Learn more about this easy-to-use tool at Real Estate Genius.

Article Source: http://EzineArticles.com/?expert=Joe_Tosolt
http://EzineArticles.com/?How-To-Build-A-Cash-Flow-Model-For-Your-Real-Estate-Investment-Property&id=510360

Tuesday, November 17, 2009

Make Money Flipping Property

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Make Money Flipping Property

Would You Like to Make Money Flipping property?

Many beginning real estate investors get started by flipping real estate to make quick cash.

If you would like to make more money by investing in real estate, you need to know a few essentials.

A Simple Definition of Flipping: Buying property and reselling quickly, hopefully for a large profit. Usually, people think of flipping houses, or the buying and selling of a home fast, as the only way to make money flipping real estate. However, some investors specialize in other types of real estate such as land or strip centers.

Some confusion arises over the process of making money flipping property.

People who specialize in finding bargain real estate, obtain a purchase contract, and then sell the contract before taking title to the property are known as Bird Dogs.

These beginning real estate investors get started with no money down by:

Finding a seller under stress with a bargain property
Securing a sales contract
Selling their contract for roughly $500 to $5,000 to a seasoned real estate investor

Isn't real estate flipping illegal?

Flipping real estate isn't illegal. However, many unscrupulous investors committed mortgage fraud to make fast money.

Some of these investors, working with mortgage brokers and appraisers, resold houses to unqualified buyers inflating the property value and home buyer's qualifications. Often these home purchasers had no money or little money down.

When these new home owners defaulted on the mortgage payment, the mortgage lenders lost money because the house wasn't worth the inflated purchase price.

To avoid legal problems in real estate flipping, don't commit mortgage fraud.

To Make Money Real Estate Flipping

Prepare your financing so you can close on a deal quickly.
Learn your market so you know what makes a good deal.
Find a bargain property owned by a seller under stress to sell.
Secure a purchase contract in your favor.
During escrow, plan your selling actions.
Close on the property on time.
Immediately set your selling plan into action. If the property needs fixing, be prepared to get this done right away.
Market your property to your target market. Don't just list the property and hope for the best.
Find a qualified buyer. Have a loan officer check to make sure your buyer meets all the mortgage requirements.
Stay legal. Don't use an inflated appraisal. Don't help your buyer create false W2s, write phony credit letters, or prepare any false documents. You can pay many of your buyer's closing costs to make the purchase easier.

Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits!

You can make money Flipping property.

Buy low, sell for full-market value, avoid mortgage fraud, and enjoy your profits! See the article on
Equity Discount Property Investing -- to discover how you can increase your net worth by $20,000 to $100,000 on every deal that you do.

About the author: Jeanette J. Fisher

Jeanette teaches beginning real estate investors how to find, finance, fix, and sell houses for top dollar.

To find out how to make more money using interior design and get a free ebook on Flipping Houses, see: www.doghousetodollhousefordollars.com.

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Monday, November 16, 2009

Succeed Financially by Using Credit Wisely

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No Debt Is Good: Aiming For A Debt-Free Life

Did you know that you're being deceived? Right now, everywhere. On TV. In the newspaper. On the radio. In magazines. You're getting the same message over and over again: "buy now, pay later"; "consolidate your debt into one easy monthly payment"; "get a secure line of credit". Or the perennial favorite, "don't worry, it's good debt".

The truth is, there is no such thing as good debt. Debt is debt. It's money you owe someone, money that needs to be paid back at some point in the future. "Good debt" is a misnomer. There's better debt, sure, because there's also really bad debt. But debt is never good. Not really.

We Live In A Debt-Ridden Society

We're encouraged to buy things on credit all the time. Why? Because it's a profitable business for lenders. They're not doing it out of the goodness of their hearts. They're in it to make money, and their target is you.

Of course, it's hard to live entirely without debt. To buy a home these days you almost always need some kind of mortgage, this is true -- few people can afford a house outright, especially at the beginning of their careers and families. But you don't have to be in debt for the rest of your life. A mortgage is meant to be a temporary debt, one backed by the (normally) stable value of the property you purchased with it. It should be for a reasonable, affordable amount that can be paid back within 10 to 20 years of the purchase. And you should have some of your own equity in the house right from the start. But that's not what people do anymore. They get mortgages for 100% of the appraised value of the house. Worse yet, they get interest-only mortgages that leave the principal -- the amount you borrowed -- untouched. Is it no wonder that these people eventually find themselves drowning in debt?

It Goes Beyond Mortgages

But it goes beyond mortgages. A debt mentality pervades our society. Once you have equity in your home, for example, the banks urge you to "free up" the money with home equity loans and secured credit lines. Use the money to better your life, they say, by renovating the house, taking that big vacation you've always wanted, or -- here it comes -- consolidating your other debt.

Your Other Debt?

Your other debt? Sure. You think the only debt people have is mortgage debt? No, they have plenty of other debt. It's a banker's wet dream out there today... Credit lines. Cash advances. Overdraft coverage. Automatic credit card limit increases. Pay nothing now. If you're not careful, you can build up a lot of debt very quickly.

That's The Problem

And that's the problem: those debts have to be repaid sometime. Rack up too much debt and soon you'll be worrying about the monthly payments. Your peace of mind will suffer, and possibly other things like your marriage and your job. Is that the kind of price you're willing to pay in order to have things you couldn't otherwise afford?

The Solution

The solution isn't debt relief or debt consolidation. It's debt avoidance. You should do everything in your power to avoid debt. Because too much debt will tear you down, physically and mentally.

What if you already have a lot of debt? There are things you can do. Yes, you can consider consolidating the debt, but that will only work if you're able to stop accumulating more debt once your current payments are lowered. Otherwise, you need to attack your debt using a step-by-step plan that involves paying off the highest-interest debt as quickly as possible, then using the money you free from that debt payment to pay the next-highest debt, and so on. It's the snowball debt reduction method, and it works.

The key to all of this is willpower. Make the commitment today to be debt free as soon as possible. The peace of mind it gives you will make it all worthwhile in the end.

Eric Giguere is a proponent of debt-free living. Visit NoDebtIsGood.com for more debt avoidance tips and resources.

Article Directory: EzineArticles

Wednesday, November 11, 2009

Property Investing Success Begins With Your Your Attitude

To Your Success

Your property investing success starts with your attitude to your investments. Look at each piece of real-estate you buy as a long term investment & it will turn into a new stream of income and work for you all the time making you wealthy.

Starting with the real estate financing and property refinancing techniques that I have discovered and will talk to you about and continuing with the real estate selection methods and property criteria that I have used to become financially independent along with all the other techniques I will cover here, you will see that successful real estate investing does not depend on picking the lows and highs of the real estate market but rather it depends on your basic attitude.

People who have become rich by investing in property all have the basic belief that selectively investing in property is the best investment they can make and the best long term use of their money.

Return From Property Investing Success
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What Are The Top 3 Real Estate Investing Strategies?

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Real Estate Investment Methods

What Are The Top 3 Real Estate Investing Strategies?

By Eric Mabo

There is a lot of information out there about real estate investing strategies. This information can be sometimes confusing, because it is never really clear what the best investment strategies are. This article focuses more on the best strategies that will work in the current real estate market. This is a biased market skewed more towards buyers. There are many homes for sale out there, however, they have very few people currently looking for a home to buy. Therefore, every investor in the market today needs to use those strategies that are most likely going to succeed in this market. He or she needs to focus more on strategies that are most likely to attract buyers or renters to their properties. Here are the 3 best options.

Buying for long-term hold: this involves buying a property with the intention of renting it out for several years prior to selling the property. They real estate investor in the situation looks for homes that have been deeply discounted, buys these homes, and then turns around and rents them out with positive cash flow. Their goal here is to make at least $200 a month after paying all of the expenses, which include the mortgage payment on the home, taxes, insurance and any other expenses related to maintaining the property. The advantage of using this strategy is that the tenants end up paying down the mortgage for the landlord. The home builds equity with time and is eventually owned free and clear by the landlord after several years of renting the property. The key here is to buy the property at a discounted price and rent it out with positive cash flow.

Buying for short-term flip: this involves buying a property at a great discount with the intention of selling it right away for a quick profit. The investor here buys the property with at least a 30% equity. He or she then turns around and sells the property to another investor leaving a 10 to 20% equity for the new owner. This is called wholesaling. (See Flipping the Contract or Wholesale Real Estate Investing) This strategy used to be very popular a few years ago. It is still being used today but it's not as popular as before. The key here is to buy the property only after you have already located a buyer. The best way to do this is to build an e-mail list of potential buyers. Another option is to borrow a list from someone else. Here is the step-by-step process: you build an e-mail list or you locate the list owner, now you locate a property with significant equity, you collect details about the property and send out an e-mail to your list, you now close on the deal and then turn around and sell it to the end buyer for a profit.

Using the lease purchase as an exit strategy: in this situation, you are buying a property with the intention of renting it out for one or two years prior to selling it. The first step here is to buy a property at a discount. You then locate a buy/renter who signs two agreements: the first is a lease agreement for 1-2 years, the second agreement is an option agreement. The buyer has the option to actually close on the deal within one or two we years. The investor cashes out at the end of the option agreement. The advantage of using this strategy is that you get very good tenants who actually take care of the property while paying a higher than usual rent. Thus you get positive cash flow and you serve the property at a huge profit within one to two years. The Investor also gets a good downpayment for the option agreement. So you make money up-front, during the 1-2 year lease term, and finally cash out a huge profit ($25-50K on a home selling for less than $200K). This is one of the best investing strategies in the current market.

Eric Mabo is an an Atlanta-based Discounted Foreclosures Expert. He helps people find discounted real estate deals.

http://www.AtlantaforeclosureDeals.com

Article Source: http://EzineArticles.com/?expert=Eric_Mabo
http://EzineArticles.com/?What-Are-The-Top-3-Real-Estate-Investing-Strategies?&id=923043

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Tuesday, November 10, 2009

Wholesale Real Estate Investing - Deals That Can SkyRocket Your Net Worth 10-Fold

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Wholesale Real Estate Investing

Deals That SkyRocket Your Net Worth 10-Fold

Alain Diza

So what is wholesale real estate investing? Why should you be interested in learning about it?

Consider these parameters for a real estate deal:
Property Value: $250,000, Purchase Price: $160,000, Repairs: $2,500.

If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).


          Property Value:  $250,000
            Less
          Purchase Price:  $160,000
          Repairs:           $2,500
            Leaves
         Available Equity:  $87,500

: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable and/or favorable, then:; If I offered to give you this deal in exchange for $10,000 in cash, would you do it?; Remember - this is hypothetical. The real question here is this:
Would you exchange $10,000 in cash for $87,500 in equity?: For most savvy investors, the answer is: Absolutely YES!

Wholesale Real Estate Investing

This is called "Wholesale Real Estate Investing" - the process of buying a lot of equity at a very significant discount from another real estate investor who has already done the hard work of finding a deal and getting it under contract.

Just think about that - consider how easy real estate investing would be for you if you had a network of real estate investors in your area (and maybe even all over the country) who, several times each month, offered you the opportunity to purchase significant amounts of equity for a severe discount...

...It would be quite easy to become wealthy, fairly quickly, wouldn't it?

The answer again, is: Absolutely Yes, it will.

It is through smart "wholesale real estate investing" that you can increase your net worth by $20,000 to $100,000 on every real estate deal that you do.

...Now the burning question becomes, "Where exactly do I find these wholesale real estate investing deals?"

I know of at least 3 solid sources...

You've got to admit - it will be a pretty wonderful thing when you know how to find great real estates deals in which you can trade a small amount of cash for a large amount of equity without even having to find the deals yourself...

...And that's exactly what "wholesale real estate investing" is all about.

Finding Deals Like This

So let's get right to it. Here are 3 places to find wholesale real estate deals:

Visit the local real estate investing club in your area. Almost all of these clubs have networking opportunities to work with other investors who wholesale deals regularly, and this is an easy way to find great opportunities.
Watch for ads in the newspaper, television, and in other media that advertise slogans like, "We Buy Houses", or "Sell Your House in 9 Days" or anything similar to that. Most of the time, these people are real estate investors, and they are happy to wholesale deals to people like you.
Watch your email-inbox. Why? Because if and when you choose to enroll in various free e-courses online, such as that via tm-RealEstateInvesting.com, you'll be provided with automatic notification about great local and national deals as they become available. But be forewarned - you've got to act quickly whenever these deals are announced, because obviously the response is always significant.

Happy Hunting!

About the author: Alain Diza

Alain makes it easy to step into the world of Wholesale Real Estate Investing. Learn the principles and private strategies the 'gurus' are charging thousands for.

Get your free e-course at: www.tm-RealEstateInvesting.com

Return From Wholesale Real Estate Investing
To Flipping Real Estate
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Tuesday, November 10, 2009

Wholesale Real Estate Investing

Deals That SkyRocket Your Net Worth 10-Fold

So here's a hypothetical question for you:

Wholesale Real Estate Investing

Finding Deals Like This

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