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.
Tuesday, December 12, 2006
Monday, November 20, 2006
How Home Staging Can Help Sell Your Home
Home Staging is often done when you sell your home. Staging a home can bring you a much higher selling price.A home staging professional can be hired to tour your home and direct you to make the changes that will increase your homes marketability. Make sure the stager you hire is accredited.
Staging a home is not redecorating it. Redecorating a home focuses on the seller and their personality. Staging focuses on the buyer. It provides the current home owner with the knowledge to rearrange the furnishings, pictures, accessories, etc. in the best possible manner to enhance the rooms function, appearance and balance.
The seller of a home has a strong emotional attachment and often times lacks the objectivity to know what's best to enhance their homes looks.
Real Estate agents will often hire a stager as part of the selling package because they may be uncomfortable disclosing to the seller that their home needs work and avoid upsetting them.
The main purpose of the staging professional is to help the buyer see themselves and their belongings fit into the home they are viewing. They do this by rearranging the home to appeal to a broad base of purchasers. Stagers can be expensive, so if you want to go it alone please follow the tips below.
The first and most important consideration to prepare your home for sale is to unclutter. There should be NO clutter anywhere in your home. Go through each room and remove any clutter you see. Organize toys in decorative boxes that are hidden away in a storage room (perhaps a room for storage in the basement). You can always take them out again when you don't have any booked showings. Bookcases should be neat and attractive interspersed with a few ornaments. Closets should be cleaned out so that only clothes are visible. Remove storage at top and bottom of closets. Place clothes out of season in storage.In fact, place any clutter you have found in storage as well. You have to move anyway and you will have to pack less later when you do move!
The foyer provides the buyer with the first impression. It should be clean, uncluttered, bright and inviting. If any rooms are dull brighten them up with higher wattage bulbs in lamps.
Remove personal photos from all rooms if possible and replace with prints or ornaments. You want the buyer to focus on your home, not your personal life. This can be distracting.
A fresh coat of paint is mandatory. Paint your home in a neutral colour (white or beige is best).You can ad a splash of colour with colored accessories, pillows, throw rugs, candles, etc.
Bathrooms should be sparkling! Counters should be clear with no personal items visible. Tub tile grout should be clean and shower curtains and glass shower doors should be free of mildew. Hang fluffy, colorful towels on the towel rods.
Kitchens must be spotless.Remove all notes, magnets, etc.off the front of the fridge. Keep counter space clean and clear of all items. Clean out under sinks and organize the pantry. Paint outdated cupboards with a neutral colour and put new modern knobs on doors for a fresh look. Dishes on the floor for pet food should be eliminated during a showing.
Furnishings should be simple and minimal.Leave space between pieces and remove nick knacks. Your most attractive piece of furniture should be placed on the wall you see when you enter a room if possible. Tuck away Cd's, videos, etc. Hang pictures at eye level. Group accessories in odd numbers (one, three or five).Fireplace mantles should be depersonalized by removing pictures. A flower arrangement, mantle clock or piece of art would be appropriate here.
Garages, front and back yards should be cleaned as well. Plant flowers or shrubs in the yard for a welcoming effect. Prune any shrubs you may already have.Don't leave bikes or toys around the yard. Clean the pool if you have one. The lawn should be cut and watered to give the home a well cared for look. A coat of paint on the outside of the house may also be in order.
If you can afford a stager it is well worth the money. If not, just make sure you clean and unclutter! A spring cleaning will definitely pay off.This can not be stressed enough! A coat of paint will do wonders. Have lights on in every room (even during the day) and soft music playing before a showing. Spray a nice gentle room spray around the house to freshen it up. Be careful it is gentle or the buyer will think you are covering up something. All the best!Good Luck!
Staging a home is not redecorating it. Redecorating a home focuses on the seller and their personality. Staging focuses on the buyer. It provides the current home owner with the knowledge to rearrange the furnishings, pictures, accessories, etc. in the best possible manner to enhance the rooms function, appearance and balance.
The seller of a home has a strong emotional attachment and often times lacks the objectivity to know what's best to enhance their homes looks.
Real Estate agents will often hire a stager as part of the selling package because they may be uncomfortable disclosing to the seller that their home needs work and avoid upsetting them.
The main purpose of the staging professional is to help the buyer see themselves and their belongings fit into the home they are viewing. They do this by rearranging the home to appeal to a broad base of purchasers. Stagers can be expensive, so if you want to go it alone please follow the tips below.
The first and most important consideration to prepare your home for sale is to unclutter. There should be NO clutter anywhere in your home. Go through each room and remove any clutter you see. Organize toys in decorative boxes that are hidden away in a storage room (perhaps a room for storage in the basement). You can always take them out again when you don't have any booked showings. Bookcases should be neat and attractive interspersed with a few ornaments. Closets should be cleaned out so that only clothes are visible. Remove storage at top and bottom of closets. Place clothes out of season in storage.In fact, place any clutter you have found in storage as well. You have to move anyway and you will have to pack less later when you do move!
The foyer provides the buyer with the first impression. It should be clean, uncluttered, bright and inviting. If any rooms are dull brighten them up with higher wattage bulbs in lamps.
Remove personal photos from all rooms if possible and replace with prints or ornaments. You want the buyer to focus on your home, not your personal life. This can be distracting.
A fresh coat of paint is mandatory. Paint your home in a neutral colour (white or beige is best).You can ad a splash of colour with colored accessories, pillows, throw rugs, candles, etc.
Bathrooms should be sparkling! Counters should be clear with no personal items visible. Tub tile grout should be clean and shower curtains and glass shower doors should be free of mildew. Hang fluffy, colorful towels on the towel rods.
Kitchens must be spotless.Remove all notes, magnets, etc.off the front of the fridge. Keep counter space clean and clear of all items. Clean out under sinks and organize the pantry. Paint outdated cupboards with a neutral colour and put new modern knobs on doors for a fresh look. Dishes on the floor for pet food should be eliminated during a showing.
Furnishings should be simple and minimal.Leave space between pieces and remove nick knacks. Your most attractive piece of furniture should be placed on the wall you see when you enter a room if possible. Tuck away Cd's, videos, etc. Hang pictures at eye level. Group accessories in odd numbers (one, three or five).Fireplace mantles should be depersonalized by removing pictures. A flower arrangement, mantle clock or piece of art would be appropriate here.
Garages, front and back yards should be cleaned as well. Plant flowers or shrubs in the yard for a welcoming effect. Prune any shrubs you may already have.Don't leave bikes or toys around the yard. Clean the pool if you have one. The lawn should be cut and watered to give the home a well cared for look. A coat of paint on the outside of the house may also be in order.
If you can afford a stager it is well worth the money. If not, just make sure you clean and unclutter! A spring cleaning will definitely pay off.This can not be stressed enough! A coat of paint will do wonders. Have lights on in every room (even during the day) and soft music playing before a showing. Spray a nice gentle room spray around the house to freshen it up. Be careful it is gentle or the buyer will think you are covering up something. All the best!Good Luck!
Monday, October 09, 2006
Get The Right Real Estate Information!
Where is your ideal place to live? This is a tough one isn't it? I mean, how can any of us truly know for sure that we've discovered the best place to live. Many of us typically like where we grow up, therefore we tend to think of it as "home," and maybe even end up living there forever. Then there are those small percent that absolutely loath where they grew up, and never care to go back.
Regardless, finding that choice environment and home is no easy task. Furthermore, we want to be sure that we're not getting ripped off, and the value of our home will increase with time.
These are the standard imperatives. Now, do you know any great real estate investing information that can get you well on your way? If you don't, I can tell you where to find some. Ever heard of cyberspace?
Where would you think to go for real estate investing information? How about your local realtor? Hmm, this is a tricky one. Being the horribly cynical guy that I am, I may be inclined not to trust realtors. For some reason I only thing their in it for a profit. Anyway, probably your best chance at finding worthwhile real estate investing information is the World-Wide-Web.
How convenient is that!
All you need is your laptop and the sofa. Recently I have been sorting through websites and real estate investing information galore. I am simply not sure where I want to live. It's rather difficult when you have more things to consider than just your own personal likes and dislikes. For example, my greatest issue revolves around schooling. I must find a nice area with fabulous schools. This is always crucial when you have children.
Furthermore, in my humble opinion, one of the greatest real estate secrets of all is finding an area with a low crime rate. The last thing you want is to find out you've moved into mini-Detroit. This would not work out well if you ever wished to sell. Many individuals are searching for a place without a great deal of violence. It's called self-preservation. Now, if you've yet to determine where it is you want to live, then join the club.
The best thing to do is start scanning the web for real estate investing information and ideal locations. Hey, you can even check out the website, Findyourspot.com. It can help you get well on your way to finding that location of your dreams.
Regardless, finding that choice environment and home is no easy task. Furthermore, we want to be sure that we're not getting ripped off, and the value of our home will increase with time.
These are the standard imperatives. Now, do you know any great real estate investing information that can get you well on your way? If you don't, I can tell you where to find some. Ever heard of cyberspace?
Where would you think to go for real estate investing information? How about your local realtor? Hmm, this is a tricky one. Being the horribly cynical guy that I am, I may be inclined not to trust realtors. For some reason I only thing their in it for a profit. Anyway, probably your best chance at finding worthwhile real estate investing information is the World-Wide-Web.
How convenient is that!
All you need is your laptop and the sofa. Recently I have been sorting through websites and real estate investing information galore. I am simply not sure where I want to live. It's rather difficult when you have more things to consider than just your own personal likes and dislikes. For example, my greatest issue revolves around schooling. I must find a nice area with fabulous schools. This is always crucial when you have children.
Furthermore, in my humble opinion, one of the greatest real estate secrets of all is finding an area with a low crime rate. The last thing you want is to find out you've moved into mini-Detroit. This would not work out well if you ever wished to sell. Many individuals are searching for a place without a great deal of violence. It's called self-preservation. Now, if you've yet to determine where it is you want to live, then join the club.
The best thing to do is start scanning the web for real estate investing information and ideal locations. Hey, you can even check out the website, Findyourspot.com. It can help you get well on your way to finding that location of your dreams.
Wednesday, September 20, 2006
One Approach To Buying With No Money Down
Distressed properties can be located in basically every city. They are available to those investors who have a clear vision and an eye for creating value that is currently obsolete. This strategy of investing is available to anyone, and is used by the most astute investors. The result is a solid, well-performing property that generates the most cash it possibly can.
Very often distressed properties need some maintenance, focus, and a new, professional management team to get the property up to speed with the rest of the market. If it is the owner who is distressed, they very often just want the property taken off their hands so they no longer have to deal with it. Commercial properties can often become difficult and expensive to maintain, and some owners simply don't have the time, money or patience to keep them up.
Distressed properties are identified by some sort of problem. This problem generally resides with two aspects of the property: either the property itself or the owner. The problem can be simple like a high vacancy rate of an apartment complex, or something much larger like the possibility of a property going into foreclosure because the owner cannot make the mortgage payments on time. This can ultimately ruin a person's credit if a property is to go into foreclosure.
Before we look at a few ways to locate distressed properties, let's first look at some specific characteristics of distressed properties that you may come across in your search.
A distressed property may have:
· high vacancy rates
· below market rents
· poor management
· old, run-down condition
· poor common areas
· no amenities
· low net operating income (NOI)
A distressed owner may:
· be too old to maintain the property
· have inherited the property and doesn't want the hassle
· cannot pay the mortgage
· be facing foreclosure
· be in bankruptcy
· be going through a divorce
Distressed properties can have a multitude of characteristics, combination of characteristics, and even odd problems specific to a property or owner.
So how do you identify these distressed properties? One way is to drive around your community looking for buildings that look vacant, run down, not fully leased, and those that display for sale by owner (FSBO) signs. If a property looks like a sore thumb in a nice area, then that is a flag that there might be something wrong. You can go to the county, find out who owns these buildings and send out a letter campaign telling them you wish to purchase the property. Many deals can develop this way, and you can get great prices on properties you didn't even know would be for sale.
Another way to find distressed properties is to call brokers on listings you find on the internet and simply ask why the owner is selling. You may have to call on quite a few properties, but eventually you will find that gold mine property being offered way below the market rate. With just a few changes that distressed property may be a money generating machine once more! You can even call on brokers to locate and bring you properties with problems that fit your targeted criteria. This strategy of finding distressed properties is a great one, as you can very quickly cut through the many listings that do not fit your criteria.
In order to turn these distressed properties into current market premium properties that retail investors would envy, use the following tools to bring the property up to par. You can renovate the building, change the management team, fill vacancies, add amenities, raise rents to market level, change the leasing agreement, lower overall expenses, and market it properly to a wider audience. With these simple tools, your once run-down, non-performing property will create more cash than anyone would have imagined.
Don't discount the value of poorly performing properties. Working with distressed properties can be a great way to purchase a property inexpensively and get your foot in the door of the commercial real estate industry. This investing strategy can be far easier than purchasing retail properties at a premium price! A little work and the property can be worth so much more, and supply you either passive income for years to come, or a retail property you can sell at a premium.
If you’re good with your hands, or are able to hire handymen this approach could become very profitable for you! By purchasing a home that needs some work you’re able to present an offer below market valve! The difference in the equity will allow you to buy with no money down! You see, you would use the equity for your escrow costs. That’s why it’s called “No Money Down!”
Very often distressed properties need some maintenance, focus, and a new, professional management team to get the property up to speed with the rest of the market. If it is the owner who is distressed, they very often just want the property taken off their hands so they no longer have to deal with it. Commercial properties can often become difficult and expensive to maintain, and some owners simply don't have the time, money or patience to keep them up.
Distressed properties are identified by some sort of problem. This problem generally resides with two aspects of the property: either the property itself or the owner. The problem can be simple like a high vacancy rate of an apartment complex, or something much larger like the possibility of a property going into foreclosure because the owner cannot make the mortgage payments on time. This can ultimately ruin a person's credit if a property is to go into foreclosure.
Before we look at a few ways to locate distressed properties, let's first look at some specific characteristics of distressed properties that you may come across in your search.
A distressed property may have:
· high vacancy rates
· below market rents
· poor management
· old, run-down condition
· poor common areas
· no amenities
· low net operating income (NOI)
A distressed owner may:
· be too old to maintain the property
· have inherited the property and doesn't want the hassle
· cannot pay the mortgage
· be facing foreclosure
· be in bankruptcy
· be going through a divorce
Distressed properties can have a multitude of characteristics, combination of characteristics, and even odd problems specific to a property or owner.
So how do you identify these distressed properties? One way is to drive around your community looking for buildings that look vacant, run down, not fully leased, and those that display for sale by owner (FSBO) signs. If a property looks like a sore thumb in a nice area, then that is a flag that there might be something wrong. You can go to the county, find out who owns these buildings and send out a letter campaign telling them you wish to purchase the property. Many deals can develop this way, and you can get great prices on properties you didn't even know would be for sale.
Another way to find distressed properties is to call brokers on listings you find on the internet and simply ask why the owner is selling. You may have to call on quite a few properties, but eventually you will find that gold mine property being offered way below the market rate. With just a few changes that distressed property may be a money generating machine once more! You can even call on brokers to locate and bring you properties with problems that fit your targeted criteria. This strategy of finding distressed properties is a great one, as you can very quickly cut through the many listings that do not fit your criteria.
In order to turn these distressed properties into current market premium properties that retail investors would envy, use the following tools to bring the property up to par. You can renovate the building, change the management team, fill vacancies, add amenities, raise rents to market level, change the leasing agreement, lower overall expenses, and market it properly to a wider audience. With these simple tools, your once run-down, non-performing property will create more cash than anyone would have imagined.
Don't discount the value of poorly performing properties. Working with distressed properties can be a great way to purchase a property inexpensively and get your foot in the door of the commercial real estate industry. This investing strategy can be far easier than purchasing retail properties at a premium price! A little work and the property can be worth so much more, and supply you either passive income for years to come, or a retail property you can sell at a premium.
If you’re good with your hands, or are able to hire handymen this approach could become very profitable for you! By purchasing a home that needs some work you’re able to present an offer below market valve! The difference in the equity will allow you to buy with no money down! You see, you would use the equity for your escrow costs. That’s why it’s called “No Money Down!”
Sunday, August 27, 2006
Investing in Real Estate 101
Riches can be made in any kind of real estate market. A professional real estate investor makes money when prices are high and when prices are low.
No matter what is happening in the market they buy low and sell high. They never buy high and expect to make money waiting for prices to rise.
Newbies buy high expecting prices to rise, and when the prices drop they are left owing $175,000 on a house that is now worth $100,000. So as a real estate investor always buy low.
Everywhere there are properties selling for below market value. There are many homes in average neighborhoods that need a few thousand dollars worth of cosmetics.
For example, take a house selling for $100,000. Since you have done your homework you know it could easily sell for $145,000 or more if it looked better. Buy the house, spend $2,000-$7,000 fixing it up, and sell it for a sizable profit.
Never spend a pile of money to completely renovate a house. Just do cosmetic changes such as painting the inside and outside, putting in new carpet, fixing broken doors and repairing leaky faucets. Only do the basics to make the house presentable.
Real estate investors recommend you start out buying three-bedroom, two-bathroom homes. These are the most in demand and so are the easiest to re-sell.
Buy in neighborhoods that are nice. You do not want to buy in neighborhoods that are too nice or too rough. Focus on your average family-friendly neighborhood.
Also, buy homes that are listed at 60-75% or less of their value. Never buy a home that is listed at $100,000 with a value of $100,000. Buy the one listed at $75,000 that is valued at $100,000.
The easiest way to find these homes is to work with a real estate agent. Find one who will be glad to find you homes that meet your criteria.
Why work with a real estate agent? Agents have 85-90% of the properties for sale. They know the area. Tell them you are an investor right up front and what you are looking for. The great agents will be happy to send you all the homes you can handle, and you will be happy to pay them their commission.
Besides having a great agent you also need to have a niche market. Are you going to focus on foreclosures? Are you going to go after fixer-uppers? Are you going to buy and then quickly re-sell? Or are you going to buy and rent it out for a while?
If you are going to rent out your properties be sure you do the math. Will you be able to rent out the house for more than the monthly expenses? Be sure to include a property manager with those expenses. And remember that the house might sit vacant a month or two. Allow enough money to account for no income for part of the year.
So never buy a home that is going to cost you $1,000 a month in finance charges and other expenses if you can only rent it out for $800. That is a fast way to end bankrupt.
But before you do all this, before you get a real estate agent and go out making offers, there is one very important thing you must do first. You must write down your goals.
Is your goal to be worth $1 million within five years? That is very possible. But do not expect to reach 1/5 of that goal in the first year.
Start with a plan to make so many offers a week and stick with it, increasing it as you go. Since most beginners make one purchase for every 50 offers, have a plan to make one purchase a month. That would require you make 50 offers every month. Set the goal and little by little you will achieve it.
So you have your goals, you have a great real estate agent, you know your niche, and now it's time to make some offers. As stated, most beginners make one purchase with every 50 offers.
If you make $25,000 on that one purchase, then in effect you are making $500 each time you make an offer. So never think that you are wasting your time making those other 49 offers.
Just as important as having written goals, a great agent and a niche, you need to have the right frame of mind to deal with success. So many who want to invest in real estate actually cause themselves to fail. They self-sabotage their success.
Believe you can succeed. Learn how to handle money wisely. Educate yourself by reading and attending seminars. Surround yourself with people who have the same goals as you and who are achieving their goals.
There are many real estate experts out there, so find a good one, attend the seminars on learning how to think about money and be financially responsible, and begin your journey to buy and sell properties.
No matter what is happening in the market they buy low and sell high. They never buy high and expect to make money waiting for prices to rise.
Newbies buy high expecting prices to rise, and when the prices drop they are left owing $175,000 on a house that is now worth $100,000. So as a real estate investor always buy low.
Everywhere there are properties selling for below market value. There are many homes in average neighborhoods that need a few thousand dollars worth of cosmetics.
For example, take a house selling for $100,000. Since you have done your homework you know it could easily sell for $145,000 or more if it looked better. Buy the house, spend $2,000-$7,000 fixing it up, and sell it for a sizable profit.
Never spend a pile of money to completely renovate a house. Just do cosmetic changes such as painting the inside and outside, putting in new carpet, fixing broken doors and repairing leaky faucets. Only do the basics to make the house presentable.
Real estate investors recommend you start out buying three-bedroom, two-bathroom homes. These are the most in demand and so are the easiest to re-sell.
Buy in neighborhoods that are nice. You do not want to buy in neighborhoods that are too nice or too rough. Focus on your average family-friendly neighborhood.
Also, buy homes that are listed at 60-75% or less of their value. Never buy a home that is listed at $100,000 with a value of $100,000. Buy the one listed at $75,000 that is valued at $100,000.
The easiest way to find these homes is to work with a real estate agent. Find one who will be glad to find you homes that meet your criteria.
Why work with a real estate agent? Agents have 85-90% of the properties for sale. They know the area. Tell them you are an investor right up front and what you are looking for. The great agents will be happy to send you all the homes you can handle, and you will be happy to pay them their commission.
Besides having a great agent you also need to have a niche market. Are you going to focus on foreclosures? Are you going to go after fixer-uppers? Are you going to buy and then quickly re-sell? Or are you going to buy and rent it out for a while?
If you are going to rent out your properties be sure you do the math. Will you be able to rent out the house for more than the monthly expenses? Be sure to include a property manager with those expenses. And remember that the house might sit vacant a month or two. Allow enough money to account for no income for part of the year.
So never buy a home that is going to cost you $1,000 a month in finance charges and other expenses if you can only rent it out for $800. That is a fast way to end bankrupt.
But before you do all this, before you get a real estate agent and go out making offers, there is one very important thing you must do first. You must write down your goals.
Is your goal to be worth $1 million within five years? That is very possible. But do not expect to reach 1/5 of that goal in the first year.
Start with a plan to make so many offers a week and stick with it, increasing it as you go. Since most beginners make one purchase for every 50 offers, have a plan to make one purchase a month. That would require you make 50 offers every month. Set the goal and little by little you will achieve it.
So you have your goals, you have a great real estate agent, you know your niche, and now it's time to make some offers. As stated, most beginners make one purchase with every 50 offers.
If you make $25,000 on that one purchase, then in effect you are making $500 each time you make an offer. So never think that you are wasting your time making those other 49 offers.
Just as important as having written goals, a great agent and a niche, you need to have the right frame of mind to deal with success. So many who want to invest in real estate actually cause themselves to fail. They self-sabotage their success.
Believe you can succeed. Learn how to handle money wisely. Educate yourself by reading and attending seminars. Surround yourself with people who have the same goals as you and who are achieving their goals.
There are many real estate experts out there, so find a good one, attend the seminars on learning how to think about money and be financially responsible, and begin your journey to buy and sell properties.
Sunday, July 30, 2006
No Money Down Real Estate Investing
You want to get into real estate - either for your personal use or for investment purposes - but you just don't have the cash to get started? What are you going to do?
There is at least one technique that virtually anyone can use as long as the property seller is willing to negotiate with you. To be fair, not every seller will be interested (or even understand) the concept outlined. Your best bet is to find a property that the owner has great interest in selling, whether because of moving, divorce or frustration with tenants.
In fact, if you are currently renting and thinking about using this technique perhaps your landlord would be happy to help you out!
HOW TO BUY WITH NO MONEY DOWN
There are a few variations that can be used depending on you and your seller. Do they want the market price or are they just eager to get out from the monthly payments - perhaps facing foreclosure?
The simplest method is to take over their mortgage payments - called 'assuming' the mortgage. You will need to be approved by the original lender to assume the mortgage. If you cannot get approved for an assumable mortgage you may also try a 'subject to' assumption where you merely make payments while the property remains in the seller's name.
WHAT IF THEY WANT A HIGHER PRICE?
You take over the original mortgage AND create a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short period of time - 2 or 3 years. Instead of having the money sit in a bank they can be collecting a high interest over 2 or 3 years with the remainder due in full at the end of the term.
When the term ends you should be able to refinance the cost, or you can sell. Unless you hit a real bad market the value of the property should have risen in that time.
WHAT IF THERE'S NO MORTGAGE TO ASSUME?
Easy. Most mortgage lenders merely want to make a good investment. While your local bank may still shy away there are plenty of financial lenders that would love to make a deal.
Financiers like real estate. The mortgage is usually based on 60-70% of the VALUE of the property, so as long as they know they get their money back in the value of the property if you default, they don't care what kind of money you make. Complete the deal with a second mortgage created with the seller. If you default they can still foreclose on the property and sell it, paying off the existing mortgage with the proceeds.
As you can see, it can be in the favor of a buyer and seller to work together - especially if the seller is motivated. If they can't wait for a sale, you can still give them their asking price with a little flexibility on their part.
Real Estate Directory
There is at least one technique that virtually anyone can use as long as the property seller is willing to negotiate with you. To be fair, not every seller will be interested (or even understand) the concept outlined. Your best bet is to find a property that the owner has great interest in selling, whether because of moving, divorce or frustration with tenants.
In fact, if you are currently renting and thinking about using this technique perhaps your landlord would be happy to help you out!
HOW TO BUY WITH NO MONEY DOWN
There are a few variations that can be used depending on you and your seller. Do they want the market price or are they just eager to get out from the monthly payments - perhaps facing foreclosure?
The simplest method is to take over their mortgage payments - called 'assuming' the mortgage. You will need to be approved by the original lender to assume the mortgage. If you cannot get approved for an assumable mortgage you may also try a 'subject to' assumption where you merely make payments while the property remains in the seller's name.
WHAT IF THEY WANT A HIGHER PRICE?
You take over the original mortgage AND create a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short period of time - 2 or 3 years. Instead of having the money sit in a bank they can be collecting a high interest over 2 or 3 years with the remainder due in full at the end of the term.
When the term ends you should be able to refinance the cost, or you can sell. Unless you hit a real bad market the value of the property should have risen in that time.
WHAT IF THERE'S NO MORTGAGE TO ASSUME?
Easy. Most mortgage lenders merely want to make a good investment. While your local bank may still shy away there are plenty of financial lenders that would love to make a deal.
Financiers like real estate. The mortgage is usually based on 60-70% of the VALUE of the property, so as long as they know they get their money back in the value of the property if you default, they don't care what kind of money you make. Complete the deal with a second mortgage created with the seller. If you default they can still foreclose on the property and sell it, paying off the existing mortgage with the proceeds.
As you can see, it can be in the favor of a buyer and seller to work together - especially if the seller is motivated. If they can't wait for a sale, you can still give them their asking price with a little flexibility on their part.
Real Estate Directory
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