Monday, August 06, 2007

Exchange of an investment property

The exchange of an investment property is a transaction that can bring you some serious tax deductions. The process is quite simple, and for the moment is available only for properties of the same kind. To find out more about this and the meaning of the “same-kind property” keep on reading this articles. You will definitely find precious information that can help you gain a lot of money from property investments.

Like-Kind Properties and Exchange of an Investment Property

Investment properties are of the same kind, if they are of the same nature, even if they differ in grade or quality. Personal properties of a similar class are like-kind properties. However, personal and commercial properties are not like-kind properties. Also, personal property used predominantly in one country and personal property used predominantly in another country are not like-kind properties.

Exchanges are made for people wanting to stay invested in real estate, increase their leverage and to avoid paying high taxes upon the sale of property. Why do people prefer the exchange of an investment property? Well, there are several reasons:

 To restore depreciation by exchanging one property for another of greater value.
 The exchange of an investment property can be used to combine the equity of several properties into one large investment.
 In some of the cases, investors choose exchange properties just to change the investment location (and this could be made for other several reasons, such as appreciation possibilities).

These are the different types of properties that can be involved in exchange investments: rental houses, apartments, commercial properties, raw land, office buildings, retail properties, ranches and industrial properties.

A Successful Tax Deferred Exchange

Here are the things that must be done to gain some tax money from an exchange of an investment property. First, to make sure your investments are compatible for this type of action, ask for professional advice from a financial advisor. After that, and after you list the relinquish properties, you can enter in contact with the buyer for the exchange or sale of the property you wish to relinquish.

Once you do that, open an escrow for the relinquished property and coordinate with the facilitator. All the exchange papers must be signed by all parties or the transaction will be considered invalid.

You will be guided for the rest of the transaction by the investment property exchange facilitator. The rest of the process is straightforward and involves a lot of paperwork, but the benefits are worth seeing it through.

Whether you want a more valuable property, or just want to have a property in another place, just remember that these can be done with no taxes involved. Just ask for the help of an investment property manager, and he will give you more details on how to conduct an exchange of investment property transactions.

Friday, June 22, 2007

California Mortgage Loans

Looking to purchase new homes in California or to refinance your existing mortgage at current rates, by analyzing California Loans Commercial Rates comprehensively you can find out how to consolidate your debt using your equity. If you've built up equity in your home then you can most likely refinance and get cash out when you need it. Are you looking to pull some extra cash from your home?

Owing to the easy accessibility of California personal loans and growing instances of cheating and illegal selling of loans, customers are advised to keep a few important factors in mind. When applying for California auto loans, it is essential to decide in advance on the amount and the term of the loan. California payday loans are usually provided without a credit check, as the sum involved is relatively less and the term of the loan is short.

Like lending rates of banks, California Loans Commercial Rates, also depends upon three ratios, the Loan-To-Value Ratio (LTVR), debt ratio and the Debt Service Coverage Ratio (DSCR). Also, since they're many lenders in California that offer direct loans in California, shop around and compare the options you have available. California debt consolidation loans are among the most popular options available to residents of California who wish to eliminate their debt.

How They Work In debt consolidation loans, all of your monthly bills are put into one lump sum payment that you can afford to make. There are a few factors that need due consideration before applying for California unsecured loans. California personal loans are basically two types -- secured personal loans and unsecured personal loans.

Conventional financial institutions such as building societies and banks offer unsecured loans, however, recently larger supermarket chains are also offering unsecured loans. California business loans can be obtained from banks, private lenders and building societies. Borrowers can obtain unsecured bad credit loans from private lenders.

There are online lenders who offer hassle-free private loans to borrowers. It is important for individuals to find the right source for California loans. Yet, California interest only loans can be a risky affair, as the interest rate may rise after the initial period.

California interest only loans of longer duration, for instance 30 years, are particularly helpful, as the additional money that goes as repayment of the principal, can be invested in a different place for a higher rate of interest. There are no rules to govern the terms and conditions of construction loans compared to mortgages that have standardized guidelines. Direct loans are less expensive compared to other loan options.

A danger that surrounds home equity loans is the inability to repay the loan. Additionally, those applying for a home equity loan should consider the possibility of a housing market crash. California auto loan applicants need to consider certain details about the intended loan.

Understanding your resource and income base will give you an accurate idea of what you can afford for your California bad credit personal loan. The intrinsic idea behind a bad credit personal loan is to obtain a loan to hold onto your property and, in doing so, to mend your credit and thus build a solid financial future. Even if you have bad credit, a payday loan may still be available to you.

Even if you have bad credit you can still qualify for a refinance loan, since your home is used as collateral. Naturally, no one wants to be saddled with a loan that could outlast them, but even then that isn’t always as bad as it seems especially if a fixed monthly payment can allow the homeowner to maintain their lifestyle well into retirement, whereas renting property has no guarantees of that. In Southern California where a two bedroom bungalow can sell for more than one million dollars, the only sort of financing that most people can afford must be for the longest term possible.

Generally, all lenders limit the amount a borrower can borrow owing to their poor credit history. Typically, you can borrow up to 75% of your paycheck, but this amount is variable based on your credit history, your employer, and the lending company’s policy. On the other hand, if you want a small amount of money to start your business, then you might go for an unsecured loan.

If selecting to refinance an existing mortgage loan, homeowners apply for a new mortgage, which pays off and replaces the old. There are a few basic things that need to be kept in mind, when trying to apply for a sub prime mortgage loan. Homeowners may either build a cash reserve to pay for this expense, or select a mortgage option with 103% financing.

California mortgage loans are long-term loans and similar to mortgage loans in other states. Like in any industry, finding a good lender is like finding a needle in a haystack. But don’t give-up you will find your lender.

Tuesday, May 22, 2007

Real Estate Deals - Ten Myths

Are high-profit real estate deals only for the wealthy? Is it possible to buy with no money down? Do you really have to know the "right" people? Let's answer by looking at some of the myths of real estate.

1. The good real estate deals are reserved for the wealthy. Of course money helps, but my first deal was a $3,500 lot - which I sold for a profit two weeks after I bought it. Smaller deals, using partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.

2. "Zero down" isn't possible. I sold a rental property for $1,000 down because I trusted the buyer, and I wanted the 9% interest and higher price. A cash-advance on a credit card for the $1,000 ($30 per month payments) would have made it a "zero down" deal. "Zero down" means none of YOUR money down, and yes, it happens.

3. "No money down" is the best way. When you don't invest some of your own money, you have higher payments. You also spend more time finding suitable properties, and pay more for them (cooperative sellers naturally want more profit for their cooperation). There are zero-down deals out there - they just aren't always worth doing.

4. You need a lot of experience. It helps, but you get it by investing. Start with common sense, be willing to learn the numbers, and you can start where you are.

5. Good investors have a "knack" for making money. Well, sort of. But more accurately, they just took the time and risk to learn the market and to continue their education.

6. You have to know the "right" people. This is another partly true myth. It does help, so why not start the process? Talk to other investors, real estate agents, landlords, etc.

7. Great negotiating skills are necessary. Negotiating skills help with real estate deals? Of course, but learn to run the numbers and make offers based on them, and you can be the worst negotiator and still do okay.

8. You have to have insider knowledge. Insider, outsider, whatever. You do need knowledge, but understand one deal, and you are on your way. Study, and study more, but the best "insider" knowledge comes from experience.

9. Fixer-uppers are the safest way to go. Poorly planned "fix and flips" have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month, and grow in value over time. Fixer uppers are for making money faster, not more safely.

10. You need to make lowball offers. Low offers may help, but the numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate. Just learn how to run the numbers before you do any real estate deals.

Article Source:

Steve Gillman has invested in real estate for years. To learn more, go get your free real estate investing course at:

Sunday, April 15, 2007

Buying a Home with No Money Down

If you are on the market for a new home, you may want to look into buying a home with no money down, otherwise known as 100% financing.

The benefit of buying a home with no money down is that you will be able to use the money you normally would use for a down payment for other things, such as closing costs, or putting it toward new furniture. One of the requirements for buying a home with no money down is having excellent credit, or, at the very least, next to excellent credit.

Keep in mind, when borrowing up to 100% of the value of a home, the lender may charge you a bit more by bumping up the interest rate. The lender does this because when they approve a loan for 100% as opposed to 95%, they are taking on more of a risk. Therefore, they slightly raise the rate.

Remember, borrowing up to 100% can be very convenient if you simply don't have the money for the down payment, and we all know, we pay for convenience. Because of the slightly higher interest rate you may run into in this situation, you may want to consider shopping around for the best rate and product to fit your needs and budget.

The mortgage industry is a highly competitive one, and there are many mortgage companies out there across the United States that offer programs with the option to purchase a home with no money down. If you are not interested in doing the shopping around yourself, or simply just don't have the time, you may want to consider hiring a broker to do it for you.

Brokers have access to hundreds of lenders across the United States, making it easier to shop a few mortgage companies for you. It really wouldn't hurt to allow one of these brokers to assess your situation than let them speak with a few lenders to see what kind of deal they come back to you with. Once they have done this, you can base your consideration on the best rate and program they can get you for buying your home with no money down.

Keep in mind, mortgage brokers and lenders work on commission, so finding you a mortgage product and getting it to the table is just as important to them as it is to you. Best of luck.

Tuesday, March 27, 2007

Real Estate Clubs

So, where is Montecito Real Estate? A new trend in the real estate investment industry is investment clubs or groups. So now you’ve learned about how much money is in investment real estate and you want a piece of the pie.

On the other hand, any time you’ve got a large real estate investment—say multifamily housing—or any time you’ve got substantial wealth, an LLC economically reduces investment risk and as an added bonus can even save the owners thousands of dollars a year in income or payroll taxes. While a sole proprietorship or informal real estate partnership may be able to keep its bookkeeping and income tax return preparation very simple, an LLC probably needs to file its own tax return if the LLC operates as a partnership, a C corporation or an S corporation. If you are a non-resident involved in the selling of Canadian real estate assets that you own, you should be aware of the applicable provisions of the Income Tax Act to avoid problems when the time comes for the sale to complete.

I feel that private investors, as opposed to government agencies, should be key players in taking control of these real estate assets,“ re-pricing” them to provide for the housing needs of regular people on a more realistic, economic basis. Like I said earlier you probably want to just find a trustworthy real estate brokerage that focuses on pre-construction projects and developments for the simple fact that these firms make their money from making their investors happy and the only way to do that is through making them money. Let's face it - real estate agents need listings and the more they have the more money they're likely to make through their real estate marketing efforts.

Although you can find real estate listing systems a dime a dozen there is nothing that helps you achieve the level of real estate marketing and sales "success" you want quite like a proven one, whether they're complicated ones at outrageous prices, or simple ones at reasonable cost. Tampa is a good investment area if you can manage to find pre-construction but is not at the top of our list for the most desirable investment real estate in Florida. Well, just a few short months have passed and a current read of the Sunday homes section of the San Diego Union Tribune shows that though the real estate market does not make discernible moves in a day like the stock market. A couple of months can easily define the local real estate trends.

So finally, if you are starting out in the real estate field you might want to seek out an investment group. Somewhere you can learn much faster then on your own? You can search on the Internet and be able to find a number of real estate investment clubs or groups in your area!

Sunday, January 14, 2007

The Ultimate N.M.D.

About twenty-five years ago I made one of the biggest gambles of my life by starting out with nothing and ending up with my first piece of real estate, a small apartment building. Most people would not have the guts, let alone, could stand the stress factor of starting with an empty building as their first real estate deal. It was such a steal, I couldn't past it up! And boy... I'm glad I didn't! As soon as I had the building filled, I then sold the building for more then twice what I had in it. My banker really loved me!

You see, my education in real estate is long and deep. So, I knew from day one what I was getting myself into! Everyone needs to educate themselves before attempting to acquire real estate as an investment.

Education... That’s exactly what this article is all about.

Just as Donald Trump had starting out, you need a great mentor with a proven track record to lead the way and support your efforts… also a proven business system that allows you to invest in all types of real estate without ever having to tie up all your own cash. It is the ULTIMATE NO MONEY DOWN. You will learn to buy real estate using a new business line of credit instead of your own cash.

If you are an avid goal setter you will want to read this to learn some specifics associated with real estate investing. However, if you are limited with real estate investing educational dollars and need to generate quick return on investment, I think fixing up cheap houses is an ideal beginning point. An untapped niche market in real estate investing is fixing up houses that can be purchased by America's renters.

The first house in a real estate investing career can be scary because it is the beginning of a new business venture. I contend that “cheap houses” are the lowest risk property for beginning a real estate investing career. Houses that really only need some yard work and a few gallons of paint are readily found in the real estate buyer's market.

In the single most valuable lesson in Donald Trump's real estate career, he learned how the government would assist buyers in purchasing property with little or no financial backing and how to get such aid. You see, half of the money that is made in real estate investment is with property that never made it onto the Multiple Service Listings.

Like Mr. Trump, millions of men and women have become financially independent by investing in real estate, and with the proper knowledge and experience, there is no reason why you cannot do it as well. A real estate investor applies the knowledge of the fundamentals real estate investing.

As with other investments it is very appropriate, and smart, to find out as much as you can about the property, since types of real estate investments and the level of risk they pose and level of profit they stand to make you vary widely. One of the key factors in staying a successful real estate investor is strict adherence to your investment strategy and criteria, which are tied closely to your investment goals.

Like any other investments, investing in real estate has its upsides and downsides, and since there are different types of real estate to invest in, you will need to do your homework. Maybe you’re interested in investing in the lucrative Florida and Las Vegas pre-construction real estate markets but you don’t know where or when to buy?

If you look at the general process for success in real estate investing you will see some important early steps involving legal and accounting advice. A lawyer and accountant are key members of your team. Including a good appraiser, escrow agent, and title rep. Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. When the money made from these transactions is used to reinvest in other ventures, the return rate highly exceeds any other method of Real Estate investing.

It will always cost you more to be ignorant, then to be educated about real estate.

Finding a Deal

Tuesday, December 12, 2006

Real Estate No Money Down

Is It Possible To Buy With No Money Down?

Despite what the “no money down” courses suggest on television, having money does make real estate investing much easier. Making money in Real Estate investment is like what we call in the stock market investment circles made in the buying and this is also known as value investing. If you don't have the time to invest working on fixers or if you're tired of working on fixers to make money investing in real estate, try this method.

Whoever is trying to sell you such simplistic view of the Real Estate investing, doesn’t have your best interests in mind. If you set your mind to it, put together a winning team of professionals, have your own financial house in order, know great bargains when you see them, and can negotiate with sellers under severe duress, you have the potential to do well by flipping real estate. High level of control: With real estate you can do things such as write your own terms for the contract, increase the properties value, increase the rent, build, subdivide, negotiate lending terms.

What most people are not attuned to is the real estate growth of the university and the prospects of rental increase of the properties that are around the growth areas of the university. As prospects express interest explain that the investments are secured by real estate and do not exceed 75% loan-to-value (LTV) of the after repaired value of the home. But if you want to preserve the value of your investments, or make some money for your retirement, realize that those books are poor substitute for a real learning.

To be fair, you can make a lot of money in real estate and you can shorten your learning curve tremendously by buying some of these courses. I can assure you buying Real Estate with no money down is an advantage. Investing in real estate with little or no money down is done every day.

The most special reason that no money down methods deliver fast and sure Real Estate wealth is this. Thats what no money down investing can do for you. But when you discover how to control deals without needing any money down, you can do 100 deals per month because you know how to do no money down.

Don't waste your money buying real estate guru books, DVDs, programs, seminars and mentor-coach promoting no-money-down deals. Before you spend money on these expensive programs, here are my top ten “no money down” ways to buy real estate. In conclusion, there are many ways to make money from real estate investment and what’s missing is massive action on your part.

In conclusion, we have highlighted three simple steps anyone can take to make more money from their real estate investment. In conclusion, this article has highlighted three reasons why commercial property real estate investment may be better than private real estate investment. In conclusion, take a closer look at the next real estate investment property that you purchase today and examine it if there are any additional rights that you can sell.

Purchasing foreclosure property can be good for real estate investment because sometimes, depending on how long the loan is outstanding, the bank might want to release the property at a price under the market valuation so as to sell it off. "Yes, but the value of property can go down too!". True the property market can go down, but if you follow the right investment strategies you wont loose money. It is that true the property market can go down. However if you never sell how will you loose money? Others buy a run down property, and put work (and money) into renovating the property, expecting to be paid well for their efforts - especially if you concentrate on the changes that drastically improve the look and value of the property.