There is no mistake about it, investing in real estate makes money. Agreed, you have to spend money to make money, but that is true in all areas of investment. Historically one of the most secure ways of making a profit in the real estate industry is the investment of capital in rental properties. That's right, being The Landlord. However, being a landlord can be a trying experience if you don't know what to expect and don't have any experience. So before you dive into the land lording game, take some time to find out what will be required of you and what the duties of a good landlord consist of.
Once you have found the property that you are going to rent, spend a little time and money doing any necessary repairs and upgrades. Make sure that there is nothing that does not operate as it should and that you have a clean and welcoming property to offer. Next don't be afraid to ask for and indeed require references from prospective tenants. Be sure to check them thoroughly to make sure they are genuine. After all, you want the highest quality of tenant available for the price range that you are asking. Also don't be afraid to deny prospective tenants if there is limited interest at the start. Renting successfully is all about finding the right tenants, not any tenants.
Ideally you will be able to find the proper long-term tenants that are little or no trouble on an ongoing basis. But sometimes, this is not the case. Will you be able to protect your investment property and remove a problem tenant? If not then you may want to reconsider this type of investment. Sometimes being a landlord is not easy and there are some tough decisions that have to be made and carried out. Keep this in mind and investing in rental properties could be the gold mine you have been searching for.
By: M Peterson
Friday, March 23, 2007
Saturday, March 10, 2007
3 Classic No Down Payment Strategies
Everyone has heard a story or read about someone who bought a property without paying a single dime as a down payment. But how does this work?
There are several "classic" methods commonly used to purchase real estate with no money down. There are an infinite variety of situations in a real estate transaction that could lead to a deal with no down payment. But for the sake of reality, I will focus on those that are most commonly seen in the current market.
1. Seller second - The buyer obtains a new first mortgage for most but not all of the total purchase price. The seller finances the rest.
Purchase price: $100,000
Buyers loan: $90,000 (90% LTV) (new first mortgage)
Sellers finances $10,000 (in the form of a new second mortgage)
The buyer has borrowed 100% of the purchase price. Thus, you have100% financing, and no down payment was paid by buyer.
This is not a difficult strategy to employ if the seller has enough equity, is willing to hold a second, and the first mortgage lender approves.
One thing that is not mentioned in most articles about this strategy is the requirement for lender approval. The lender who is making the 90% loan will have to agree to allow the seller to take back a second mortgage. In cases where the buyer has better credit, this is usually OK with the lender. But if the buyer has a lower credit score, the lender may not approve of this. If your credit score is on the lower side, but you have good documented income, you may still qualify.
Talk to your lender ahead of time and find out if creative financing options such as a seller second would be allowed. Make sure you have a lender who is used to working on investment property loans. Some mortgage companies only have programs for owner occupants. You need to go to a lender who specializes in loans for investors.
2. Another common way to obtain a no down payment loan is to utilize one of the many low or no down payment programs that exist. Many of these are intended for owner occupants, but some are available for investors. Again, it is important to talk to the right lender.
If you have an investment property that you want to sell, consider taking back a second mortgage for 5-10%. This is not a huge amount, and it can help you sell your property faster.
When it comes to finding a seller who will help you create a no money down deal, consider buying from an investor who is willing to be flexible. Some investors are willing to do creative financing simply because they understand that it helps them sell houses. It never hurts to make an offer that includes a seller second. You never know until you ask.
There are some points to remember when purchasing investment property with no money down. A key point is the comparison of monthly payments to expected rental income. When you are financing 100% of the purchase price, your payments will be higher. If you have a second mortgage payment to add to a first mortgage, your payment may be even higher. Be sure your rental income will cover the entire monthly payment.
3. More common among professional investors is buying wholesale properties, using hard money to purchase and rehab.
When the rehab is completed, you want to get a new mortgage that pays off the hard money loan. Since this is a refinance, you can take cash out of the property. You may have to bring some money to closing on the hard money loan, but you get it all back when you refinance, so you end up with no money out of pocket. This becomes not only a "no down payment" deal, but also a "cash back at closing" deal.
It works like this:
Purchase price $100,000
Repairs $15,000
Hard money loan $115,000
Purchase and repair, then get new loan to pay off hard money.
New loan is based on 90% of After Repair Value.
For our example, the ARV is $150,000
90% of $150,000 is $135,000.
New loan for $135,000. Subtract hard money loan pay off of $115,000 leaves $20,000.
You keep the extra $20,000 in cash, tax free since it is a loan, rent your house out and let the tenant pay the loan back.
Your gross profit is $20,000 cash and $15,000 equity. Total gross profit $35,000. Not too bad for a couple months work.
Down payment by definition means specifically money that is used to "pay down" the total purchase price. This does not include money for closing costs, points, interest, and other items such as insurance. But if you are buying wholesale properties, fixing them and refinancing to pull cash out, you should be able to pay all your expenses and have a nice profit at the end of the day. (Just keep some of that cash in reserve for emergencies)
If you do 3 houses per year, and you only net $25,000 total, after paying all expenses on each of the 3 houses, you are still netting $75,000 cash and equity in about 6 to 8 months. Plus, if you are renting these properties, you are also creating additional streams of income through monthly cash flow as well as accumulating equity in each property.
This is a solid strategy to achieve a retirement nest egg and ongoing income for life in less than 10 years. If you look around at the real estate investors who are wealthy, the vast majority own rental property, be it residential or commercial.
They understand the concept of buying at a discount, then holding their properties for years. They get to the point where their holdings are worth double or triple the price paid. This is free money that you can earn simply by buying and holding long term. No, this is not as easy as it sounds, but nothing worth doing is ever easy. If it were, everyone would be wealthy.
There are wholesaling companies in every major city that specialize in selling fixer upper properties that fit with strategy number 3 in this article. Look for their signs on the side of the road, their ads in the paper, or ads in local thrifty nickel type shopping papers.
Most deals do require some out of pocket cash, even if it is only temporary, until you refinance.
True no down payment opportunities are pretty rare these days, with interest rates at historic lows. If interest rates go back up, (and they will) we will see more creative financing and more no down payment opportunities in the future.
By: Donna Robinson
There are several "classic" methods commonly used to purchase real estate with no money down. There are an infinite variety of situations in a real estate transaction that could lead to a deal with no down payment. But for the sake of reality, I will focus on those that are most commonly seen in the current market.
1. Seller second - The buyer obtains a new first mortgage for most but not all of the total purchase price. The seller finances the rest.
Purchase price: $100,000
Buyers loan: $90,000 (90% LTV) (new first mortgage)
Sellers finances $10,000 (in the form of a new second mortgage)
The buyer has borrowed 100% of the purchase price. Thus, you have100% financing, and no down payment was paid by buyer.
This is not a difficult strategy to employ if the seller has enough equity, is willing to hold a second, and the first mortgage lender approves.
One thing that is not mentioned in most articles about this strategy is the requirement for lender approval. The lender who is making the 90% loan will have to agree to allow the seller to take back a second mortgage. In cases where the buyer has better credit, this is usually OK with the lender. But if the buyer has a lower credit score, the lender may not approve of this. If your credit score is on the lower side, but you have good documented income, you may still qualify.
Talk to your lender ahead of time and find out if creative financing options such as a seller second would be allowed. Make sure you have a lender who is used to working on investment property loans. Some mortgage companies only have programs for owner occupants. You need to go to a lender who specializes in loans for investors.
2. Another common way to obtain a no down payment loan is to utilize one of the many low or no down payment programs that exist. Many of these are intended for owner occupants, but some are available for investors. Again, it is important to talk to the right lender.
If you have an investment property that you want to sell, consider taking back a second mortgage for 5-10%. This is not a huge amount, and it can help you sell your property faster.
When it comes to finding a seller who will help you create a no money down deal, consider buying from an investor who is willing to be flexible. Some investors are willing to do creative financing simply because they understand that it helps them sell houses. It never hurts to make an offer that includes a seller second. You never know until you ask.
There are some points to remember when purchasing investment property with no money down. A key point is the comparison of monthly payments to expected rental income. When you are financing 100% of the purchase price, your payments will be higher. If you have a second mortgage payment to add to a first mortgage, your payment may be even higher. Be sure your rental income will cover the entire monthly payment.
3. More common among professional investors is buying wholesale properties, using hard money to purchase and rehab.
When the rehab is completed, you want to get a new mortgage that pays off the hard money loan. Since this is a refinance, you can take cash out of the property. You may have to bring some money to closing on the hard money loan, but you get it all back when you refinance, so you end up with no money out of pocket. This becomes not only a "no down payment" deal, but also a "cash back at closing" deal.
It works like this:
Purchase price $100,000
Repairs $15,000
Hard money loan $115,000
Purchase and repair, then get new loan to pay off hard money.
New loan is based on 90% of After Repair Value.
For our example, the ARV is $150,000
90% of $150,000 is $135,000.
New loan for $135,000. Subtract hard money loan pay off of $115,000 leaves $20,000.
You keep the extra $20,000 in cash, tax free since it is a loan, rent your house out and let the tenant pay the loan back.
Your gross profit is $20,000 cash and $15,000 equity. Total gross profit $35,000. Not too bad for a couple months work.
Down payment by definition means specifically money that is used to "pay down" the total purchase price. This does not include money for closing costs, points, interest, and other items such as insurance. But if you are buying wholesale properties, fixing them and refinancing to pull cash out, you should be able to pay all your expenses and have a nice profit at the end of the day. (Just keep some of that cash in reserve for emergencies)
If you do 3 houses per year, and you only net $25,000 total, after paying all expenses on each of the 3 houses, you are still netting $75,000 cash and equity in about 6 to 8 months. Plus, if you are renting these properties, you are also creating additional streams of income through monthly cash flow as well as accumulating equity in each property.
This is a solid strategy to achieve a retirement nest egg and ongoing income for life in less than 10 years. If you look around at the real estate investors who are wealthy, the vast majority own rental property, be it residential or commercial.
They understand the concept of buying at a discount, then holding their properties for years. They get to the point where their holdings are worth double or triple the price paid. This is free money that you can earn simply by buying and holding long term. No, this is not as easy as it sounds, but nothing worth doing is ever easy. If it were, everyone would be wealthy.
There are wholesaling companies in every major city that specialize in selling fixer upper properties that fit with strategy number 3 in this article. Look for their signs on the side of the road, their ads in the paper, or ads in local thrifty nickel type shopping papers.
Most deals do require some out of pocket cash, even if it is only temporary, until you refinance.
True no down payment opportunities are pretty rare these days, with interest rates at historic lows. If interest rates go back up, (and they will) we will see more creative financing and more no down payment opportunities in the future.
By: Donna Robinson
Wednesday, March 7, 2007
Top 3 Reasons to Delay Purchasing a Home
So you have set aside enough funds for a down payment on a house and closing costs? And you are curious to know if there is ever a time when you shouldn't buy? Regardless of all the benefits of buying a home, it is still a major and life changing purchase and a buyer should go forward with an cautiously optimistic but informed attitude.
An important thing to honestly evaluate before you purchase is the average appreciation rates of your local market and your own personal circumstances. Historically, the average appreciation rate for real property has been roughly 6%; however, as the nation is huge your local market appreciation rates can obviously vary. Your main objective should be to stay in your house long enough so that you are not placed in a position where you will have to sell your home at a loss. If you have to sell a home before it has appreciated enough to cover the costs and commissions of selling, you could find yourself in a serious, financial bind. This especially applies to those who buy a home with a down payment of ten percent or less. In the market of the past five years, many who purchased homes with zero down payments are finding themselves in exactly that position, basically "under" their loan.
Real estate commissions traditionally run around six percent of a home's sales price. The seller's closing costs generally amounts to about one and a half percent. Adding all the costs you would incur if you were forced to sell, you can see how this can easily exceed the first year's appreciation of your home. If you made a minimal down payment (from 3% - 5%), you could actually have to come up with cash out of pocket to sell your home. In addition, if the value of the houses in your neighborhood has dropped considerably, you may also find yourself owing a deficiency judgment. A deficiency judgment is a judgment for an amount not covered by the value of the security( in this case your house) put up for a loan or installment payments. In general, with the final sale of the house, the owner is still left with a balance owing on the original amount of the loan and is liable by law to pay it. While this is the worst case scenario, it still is prudent to know that such situations can occur and realistically evaluate how you can avoid them.
The three occasions when it is much better to hold off on buying a home are the following:
New to the Area
A very good to reason to delay buying a home is if you have just moved to an unfamiliar area or region of the country. It makes sense to rent for a number of months before deciding on exactly which neighborhood you desire and can afford to live in. Often when people are too hasty to buy a home immediately, they find that they might have made a better decision if they had waited awhile and had become more familiar with the surrounding neighborhood and local community. They would have additional leisure time to evaluate home values and find the best bargain in the neighborhood they desired to live in.
Uncertain or Unstable Job Future
You could have just graduated from college or you are expecting a promotion and a transfer. Or perhaps, your company has announced an impending "restructuring" or "downsizing". If any of these apply to your situation, it might be best to forego buying a home until your job and financial situation stabilizes. It is much easier to dissolve a lease on an apartment or condo, than to try to sell a home in a financially difficult or pressing situation.
Marital Problems
While not advertised on national real estate ads, real estate agents are often participants in the real unfolding life drama of clients who have to sell their houses due to foreclosure, divorce, and deaths in the family. One of the saddest scenarios occurs when recent former clients undergo a divorce and are forced to sell a recently purchased house. For whatever reason, many couples in marital turmoil, are steeped in denial and often decide that buying a new home may help resolve their difficulties. Perhaps it is inevitable that such problems should then occur, but selling a home before it appreciates can create an additional emotionally draining financial burden in an already difficult situation.
While this certainly isn't meant to discourage the prospective buyer, it certainly is intended to inform the buyer of the serious decision they are about to undertake and to evaluate his or her circumstances honestly. Taking the time to be forthright at the outset will assure a purchase they will be happy with in the long run. For more information visit http://www.nefcortez.com
by Nef Cortez
An important thing to honestly evaluate before you purchase is the average appreciation rates of your local market and your own personal circumstances. Historically, the average appreciation rate for real property has been roughly 6%; however, as the nation is huge your local market appreciation rates can obviously vary. Your main objective should be to stay in your house long enough so that you are not placed in a position where you will have to sell your home at a loss. If you have to sell a home before it has appreciated enough to cover the costs and commissions of selling, you could find yourself in a serious, financial bind. This especially applies to those who buy a home with a down payment of ten percent or less. In the market of the past five years, many who purchased homes with zero down payments are finding themselves in exactly that position, basically "under" their loan.
Real estate commissions traditionally run around six percent of a home's sales price. The seller's closing costs generally amounts to about one and a half percent. Adding all the costs you would incur if you were forced to sell, you can see how this can easily exceed the first year's appreciation of your home. If you made a minimal down payment (from 3% - 5%), you could actually have to come up with cash out of pocket to sell your home. In addition, if the value of the houses in your neighborhood has dropped considerably, you may also find yourself owing a deficiency judgment. A deficiency judgment is a judgment for an amount not covered by the value of the security( in this case your house) put up for a loan or installment payments. In general, with the final sale of the house, the owner is still left with a balance owing on the original amount of the loan and is liable by law to pay it. While this is the worst case scenario, it still is prudent to know that such situations can occur and realistically evaluate how you can avoid them.
The three occasions when it is much better to hold off on buying a home are the following:
New to the Area
A very good to reason to delay buying a home is if you have just moved to an unfamiliar area or region of the country. It makes sense to rent for a number of months before deciding on exactly which neighborhood you desire and can afford to live in. Often when people are too hasty to buy a home immediately, they find that they might have made a better decision if they had waited awhile and had become more familiar with the surrounding neighborhood and local community. They would have additional leisure time to evaluate home values and find the best bargain in the neighborhood they desired to live in.
Uncertain or Unstable Job Future
You could have just graduated from college or you are expecting a promotion and a transfer. Or perhaps, your company has announced an impending "restructuring" or "downsizing". If any of these apply to your situation, it might be best to forego buying a home until your job and financial situation stabilizes. It is much easier to dissolve a lease on an apartment or condo, than to try to sell a home in a financially difficult or pressing situation.
Marital Problems
While not advertised on national real estate ads, real estate agents are often participants in the real unfolding life drama of clients who have to sell their houses due to foreclosure, divorce, and deaths in the family. One of the saddest scenarios occurs when recent former clients undergo a divorce and are forced to sell a recently purchased house. For whatever reason, many couples in marital turmoil, are steeped in denial and often decide that buying a new home may help resolve their difficulties. Perhaps it is inevitable that such problems should then occur, but selling a home before it appreciates can create an additional emotionally draining financial burden in an already difficult situation.
While this certainly isn't meant to discourage the prospective buyer, it certainly is intended to inform the buyer of the serious decision they are about to undertake and to evaluate his or her circumstances honestly. Taking the time to be forthright at the outset will assure a purchase they will be happy with in the long run. For more information visit http://www.nefcortez.com
by Nef Cortez
Wednesday, February 21, 2007
Home Selling Tips: Maximize Your Home's Sales Potential
Home Selling Tips
Home selling tips are everywhere - some are suggestions you might never have thought of. Others, are general ones you're likely to find everywhere. However,just because they're common doesn't mean they don't work.
Here are some home selling tips of our own:
· When advertising your property, never use the words "asking" or "negotiable" with your selling price. This will only make it seem like you're not sure of the value of your home. Why bother setting the price in the first place if further negotiation is likely to change it?
· When preparing your house, try to see it from the buyer's point of view. Would you want to buy a house like your own?
· Unless you're sure you're up to the challenge, hire a good agent and attorney to do the home selling for you. It may cost more, but it can save you a lot of aggravation in the long run.
· Make sure you have full Multiple Listing Service coverage - this is a powerful tip to remember. Multiple Listing Service (MLS) is the strongest selling tool for your home. Some people would not even advise you to check for any offers before you see you home on MLS!
· Home showings through an open house are a good idea, especially if you live in a small town.
· Getting clutter out of the way will not only improve home showings, but also make it easier to pack once the home has been sold.
· Finish any renovations you've started on the house. No buyer wants to finish a job the seller started!
· When negotiating with the buyer, throw your bad mood away. It's hard to discuss price when you're still upset about the buyer's plans to cut down the tree you love. Maintain an interactive discussion and build up trust. Even if the offer doesn't work out, keep up a good impression.
· Don't let buyers' offers sway you - consult with your attorney about the price offered. Usually there's a period of three days for you to accept or reject an offer. Also be prepared for home inspections, as usually this happens during this stage of the home selling process.
As I mentioned in the beginning of this article: home selling tips are endles. Choose only the tips that would best suit your needs and situation.
To Your Success,
by Dan Giordano
Dan Giordano http://www.FreeRealEstateDeals.com
Home selling tips are everywhere - some are suggestions you might never have thought of. Others, are general ones you're likely to find everywhere. However,just because they're common doesn't mean they don't work.
Here are some home selling tips of our own:
· When advertising your property, never use the words "asking" or "negotiable" with your selling price. This will only make it seem like you're not sure of the value of your home. Why bother setting the price in the first place if further negotiation is likely to change it?
· When preparing your house, try to see it from the buyer's point of view. Would you want to buy a house like your own?
· Unless you're sure you're up to the challenge, hire a good agent and attorney to do the home selling for you. It may cost more, but it can save you a lot of aggravation in the long run.
· Make sure you have full Multiple Listing Service coverage - this is a powerful tip to remember. Multiple Listing Service (MLS) is the strongest selling tool for your home. Some people would not even advise you to check for any offers before you see you home on MLS!
· Home showings through an open house are a good idea, especially if you live in a small town.
· Getting clutter out of the way will not only improve home showings, but also make it easier to pack once the home has been sold.
· Finish any renovations you've started on the house. No buyer wants to finish a job the seller started!
· When negotiating with the buyer, throw your bad mood away. It's hard to discuss price when you're still upset about the buyer's plans to cut down the tree you love. Maintain an interactive discussion and build up trust. Even if the offer doesn't work out, keep up a good impression.
· Don't let buyers' offers sway you - consult with your attorney about the price offered. Usually there's a period of three days for you to accept or reject an offer. Also be prepared for home inspections, as usually this happens during this stage of the home selling process.
As I mentioned in the beginning of this article: home selling tips are endles. Choose only the tips that would best suit your needs and situation.
To Your Success,
by Dan Giordano
Dan Giordano http://www.FreeRealEstateDeals.com
Saturday, February 10, 2007
Buy-Change-Sell: A Real Estate Strategy
Here's a proven real estate strategy: Buy a property, change the use, and sell it for a profit. Big profits are possible if you find its most profitable use. The disadvantages of this strategy? There is a lot of homework required, and many possible dealings with zoning authorities and others.
Years ago there was a row of old homes on a main street in the Northern Michigan town where I used to live. Many of them were rentals. None of them were very well taken care of. Then one day they were gone.
What had happened? That part of the street had been zoned commercial for many years, but there wasn't a reason to tear down perfectly good homes to put up stores. That is, there wasn't a reason until the land could be sold for commercial purposes at a price that exceeded the value of the homes plus the cost of removing them.
As the town grew, at some point an investor realized that he could buy those rental homes, tear them down, and sell the land for a nice profit. This is not uncommon. A particular piece of real estate is not always used for its "highest purpose." When this is the case, it may sell for much less money than it otherwise should. It is just waiting for someone to recognize what its highest purpose is, and then buy it and convert it.
Sometimes an office that had once been a home is converted back into a home, because the property is worth more as a home. Homes sometimes become professional offices for attorneys and doctors. The more common examples of a change of use is when farmland is developed for homes, or when apartment buildings are made into condominiums. Many of these ideas will be covered as their own topics.
The bottom line is that if there is a higher use for a property, there may be a profit opportunity. How can you tell? First you have to identify the highest use, meaning the use that makes the property most valuable. One way to do this is to simply look around and see what is happening with other properties around the one you are looking at.
Once you determine what the property should or could be used for, you have to determine how much it will sell for when it is ready. Then you determine how much it will cost to get it ready, plus the holding costs until it sells, and the costs associated with buying it and selling it. Subtract all of these costs from the projected sale's price.
Then subtract the profit you want for your work from that figure. This gives you the maximum price you can pay to make the deal work. Offer less, of course. That helps with this and any other real estate investing strategy.
by Steve Gillman
Years ago there was a row of old homes on a main street in the Northern Michigan town where I used to live. Many of them were rentals. None of them were very well taken care of. Then one day they were gone.
What had happened? That part of the street had been zoned commercial for many years, but there wasn't a reason to tear down perfectly good homes to put up stores. That is, there wasn't a reason until the land could be sold for commercial purposes at a price that exceeded the value of the homes plus the cost of removing them.
As the town grew, at some point an investor realized that he could buy those rental homes, tear them down, and sell the land for a nice profit. This is not uncommon. A particular piece of real estate is not always used for its "highest purpose." When this is the case, it may sell for much less money than it otherwise should. It is just waiting for someone to recognize what its highest purpose is, and then buy it and convert it.
Sometimes an office that had once been a home is converted back into a home, because the property is worth more as a home. Homes sometimes become professional offices for attorneys and doctors. The more common examples of a change of use is when farmland is developed for homes, or when apartment buildings are made into condominiums. Many of these ideas will be covered as their own topics.
The bottom line is that if there is a higher use for a property, there may be a profit opportunity. How can you tell? First you have to identify the highest use, meaning the use that makes the property most valuable. One way to do this is to simply look around and see what is happening with other properties around the one you are looking at.
Once you determine what the property should or could be used for, you have to determine how much it will sell for when it is ready. Then you determine how much it will cost to get it ready, plus the holding costs until it sells, and the costs associated with buying it and selling it. Subtract all of these costs from the projected sale's price.
Then subtract the profit you want for your work from that figure. This gives you the maximum price you can pay to make the deal work. Offer less, of course. That helps with this and any other real estate investing strategy.
by Steve Gillman
Tuesday, February 6, 2007
Owner Financing Made Easy: Your Solution to Real Estate Success!
Would you like to know a proven method to sell property quickly and for greater than fair market value? Would you like to have a competitive edge over all the other homes on the block? Would you like to have constant cash flow after you sell your property? Owner financing is a lucrative, time-proven method that works in good and bad markets. The market has changed and your marketing must change too! Owner financing is a common strategy that works well in today's market and is how the banks have gotten RICH...and so can YOU! Just learn the rules, regulations, and points that make your investment safe, low risk, and maximum value.
Benefits to owner financing:
- Solve the two biggest problems a buyer has
- Sell your property quickly in both good and bad markets
- Keep a competitive edge regardless of increased foreclosures and new home construction
- Attract more buyers
- Avoid extensive price negotiations
- Have a constant cash flow after you sell your property and create wealth
Owner financing is a huge advantage for acquiring properties and selling properties.
When you sell your property using owner financing, you make a significant transition from being a property owner to a note owner/investor. This means you utilize two strategies: (1) a competitive advantage to sell your property profitability and quickly and, (2) cash flow after you sell your property. You become the bank! This strategy allows you to collect cash flow from the property you sold and continue to profit from the sale afterwards.
By owner financing you can generate more profits than if you just sold the property and collected the cash. Owner financing allows you to set the terms, including interest rate and payment terms. You are helping the buyer while generating steady cash flow; owner financing is creative deal structuring that is a win/win for all parties involved. Get rich with owner financing or get left behind!
by Maria Fee
Benefits to owner financing:
- Solve the two biggest problems a buyer has
- Sell your property quickly in both good and bad markets
- Keep a competitive edge regardless of increased foreclosures and new home construction
- Attract more buyers
- Avoid extensive price negotiations
- Have a constant cash flow after you sell your property and create wealth
Owner financing is a huge advantage for acquiring properties and selling properties.
When you sell your property using owner financing, you make a significant transition from being a property owner to a note owner/investor. This means you utilize two strategies: (1) a competitive advantage to sell your property profitability and quickly and, (2) cash flow after you sell your property. You become the bank! This strategy allows you to collect cash flow from the property you sold and continue to profit from the sale afterwards.
By owner financing you can generate more profits than if you just sold the property and collected the cash. Owner financing allows you to set the terms, including interest rate and payment terms. You are helping the buyer while generating steady cash flow; owner financing is creative deal structuring that is a win/win for all parties involved. Get rich with owner financing or get left behind!
by Maria Fee
Saturday, February 3, 2007
How To Give Yourself A $20,000/Year Raise Without Asking Your Boss
Why without asking your boss?
Two reasons, one, he or she will most likely say no; and second, he or she will probably have you committed for asking.
So what do you do. Give the raise to yourself.
Impossible you say. Chuck and Sue are crazy. Not at all. Here's how.
You know we love the Creative Real Estate niche of Lease Purchasing and you know we believe it to be the perfect home-based business.
But, did you know you can use these same methods in your spare time to give yourself that big raise.
Ask yourself, "What would I be willing to do to earn an extra $20,000 in a year".
The answer may surprise you. And no, you don't have to become a hit man (or woman) to earn this.
You just have to be willing to take a look at Lease Purchasing.
Some background before you think we've completely lost it.
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That's about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Gee, you say, that sounds like a lot of work. Not really. Consider making those calls over a 3 month period. That's the equivalent of a call per day. Why a 3 month period. Because you're only looking to do one deal a quarter.
Next question. How does this translate into a $20,000/yr. raise? Simple.
On a typical single family house, we look for a $5000 assignment fee on average. Well, let's do the math. 4 x $5,000 = $20,000.
Yup, a $20,000 raise on 4 deals per year.
Is this realistic? Absolutely.
In fact, we may be conservative on that raise for you. You may well decide to do five or six or more deals in a year.
All it takes is knowing how to structure your deals, having the proper contracts and a willingness to want to give yourself a raise. You can find all this information at our website at: www.homebusinesssolutions.com/products/products.htm
You're right. Chuck and Sue are crazy. Crazy like a fox.
Copyright 2000, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Two reasons, one, he or she will most likely say no; and second, he or she will probably have you committed for asking.
So what do you do. Give the raise to yourself.
Impossible you say. Chuck and Sue are crazy. Not at all. Here's how.
You know we love the Creative Real Estate niche of Lease Purchasing and you know we believe it to be the perfect home-based business.
But, did you know you can use these same methods in your spare time to give yourself that big raise.
Ask yourself, "What would I be willing to do to earn an extra $20,000 in a year".
The answer may surprise you. And no, you don't have to become a hit man (or woman) to earn this.
You just have to be willing to take a look at Lease Purchasing.
Some background before you think we've completely lost it.
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That's about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Gee, you say, that sounds like a lot of work. Not really. Consider making those calls over a 3 month period. That's the equivalent of a call per day. Why a 3 month period. Because you're only looking to do one deal a quarter.
Next question. How does this translate into a $20,000/yr. raise? Simple.
On a typical single family house, we look for a $5000 assignment fee on average. Well, let's do the math. 4 x $5,000 = $20,000.
Yup, a $20,000 raise on 4 deals per year.
Is this realistic? Absolutely.
In fact, we may be conservative on that raise for you. You may well decide to do five or six or more deals in a year.
All it takes is knowing how to structure your deals, having the proper contracts and a willingness to want to give yourself a raise. You can find all this information at our website at: www.homebusinesssolutions.com/products/products.htm
You're right. Chuck and Sue are crazy. Crazy like a fox.
Copyright 2000, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Subscribe to:
Posts (Atom)