Getting Financing From Banks For Real Estate Investing
September 30, 2009 by Kenny Santos
Filed under Real Estate Investing
People investing in real estate look for capital providers, who will offer the level of capital they need as well as the rate, term, pricing, closing time frame, exit and prepayment options, and recourse provisions. These must suit their individual needs, as well as any value added features on the offer. Choose a capital provider with whom the individual can develop a good, long lasting, working relationship as well as providing the broadest access to the much-needed capital. Those who are experts in dealing with real estate investments are ideal capital providers. There are direct, indirect, and
hybrid lenders that provide capital to real estate investors. Banks are direct lenders.
Dealing with Banks to Get Finances for Real Estate Investing Banks are the most preferred capital providers as they have excellent staff and have expertise in the local real estate market. Most of the loans offered by banks are short term, full recourse loans that are not competitive by nature. Banks are acknowledged to be the best source for procuring capital needed for investing in real estate.
It is necessary to prove to the loan officer of the bank that your investment is a low risk one, by carefully presenting the application for the loan. All your achievements and your track record of good investment strategies will help in showing you are a low risk investment for the bank. Having a good credit profile as well as a good credit report are added advantages. Having a well-drafted business plan of how you are going to develop and implement the plan, including the cash flow forecasts in case you are in the construction sector, using an asset as collateral, and having confidence in your venture,
will help in securing the loan at interest rates that are not too harsh. Select a bank that has expertise in your area of real estate as they may have value added services that can benefit you.
Developing a good relationship with the bank, making payments on time and repaying the loan will help, as they will be ready to finance you in future should there be a need for it. Having a good action plan to make your real estate investment pay good
returns and a firm commitment to repay debts are what loan officers look for in any applicant. You can seek the help of the bank in planning your strategies and finding out if there is any means by which you can cut costs using the banks team of experts to guide you. When the bank is actively involved in planning, greater project profitability can be expected as well as aid in utilizing the borrowed money to get maximum results. Dealing with banks to get finances for real estate investing is an
important aspect of this sector.
Additional Help There are firms that offer help to new businesses investing in real estate. These firms offer services and software that shall aid you in the process of obtaining real estate and making money from it.
Article written by David Gass.
Author Bio::
————
David Gass
financial planner WA
comprehensive wealth management WA
email: jupita_fanklin12@yahoo.com
The Basics of Real Estate Investing
September 30, 2009 by Kenny Santos
Filed under Real Estate Investing
The Basics of Real Estate Investing By: David Neese Real estate investing may not be everyone’s cup of tea, but some people who have already tried investing in real estate know that it can be highly profitable and lead to much better quality of life. There are several keys to making significant profits in real estate investing deals. And when the deals are profitable, you will certainly be well on your way to success.
For real estate investing newbies, don’t be afraid of the challenges and pitfalls you may encounter along the way. There is definitely a lot to learn, but in the long run after you have gained some experience, you’ll hopefully become a master at closing profitable real estate deals.
There are 5 core skills that are necessary for building a real estate investing business. These will be the key factors in creating a profitable real estate investment portfolio.
These are the 5 core skills of real estate investing:
1) You must learn when and where to find the right kind of sellers.
2) You must learn the art of being a master negotiator when it comes to closing your real estate investment deals.
3) You must be able to quickly and accurately analyze each real estate investment deal so you’ll know exactly when to proceed and when to pull the plug.
4) You must become an expert in all areas of real estate investing and understand such terms as lease options, cash sales, wrap mortgages, short sales and other terminology common in the real estate investing trade.
5) You should totally understand the meaning and concept of investing in real estate, including all of the financial risks and benefits.
Now is a great time to consider investing in real estate. There are great potential rewards and the effort you put forth can yield enormous monetary returns on your investment.
Your confidence level will grow when you’ve gained some experience and closed on your first few real estate deals. But, don’t stop there…
Continue to learn about real estate investing and to develop your investment skills. In a short time you may find yourself managing a profitable and growing portfolio of investment properties.
Continue to follow your real estate investing “game plan” and always keep an eye out for the hidden investment opportunities. The opportunities are definitely out there and with a little knowledge and desire can be yours for the taking. So, why not get started in what might be a new and exciting (and profitable) career today?
About the Author
David Neese offers a free online real estate investing course
Beginners Tips and Tricks in Regards to Real Estate and Investing
September 29, 2009 by Kenny Santos
Filed under Real Estate Investing
If you are one of the many people who are interested in real estate, investing, or both, then you should know that there are several factors and issues that you are going to want to take quite seriously into consideration. As well, there is truly a multitude of tips and tricks in regards to real estate and investing, and so you are certainly going to want to learn about these as well.
Tips and Tricks for Real Estate and Investing
There are many tips and tricks that are included here, and one of the best is in regards to how you should always make sure that you are in good communication with a professional ? someone who knows exactly what they are talking and who can thus help you out through every step of these processes.
In regards to real estate, the best idea is to speak to a familiar real estate agent that you know, so that you can get at least some basic information in regards to what you should know before you end up purchasing a home. Buying a home is going to be one of the most major things that you do in your entire life, and thus you certainly want to be as knowledgeable and as informed as you possibly can be.
In regards to investments and issues of the like, you also want to make sure that you are aware of everything as possible, so that you can invest your money wisely and properly and so that thus you will not be working and slaving away for nothing, but rather you will have money saved up for when you need it and for instance, you could use this money to buy your home.
Not only before you buy your home, but also after ? in fact, especially after ? you are going to have to know and understand about how you can invest properly, and so speaking to someone in your bank is an excellent idea, as they are the best professional that you can go to who will be able to discuss all the details with you and let you in on the best secrets in regards to how you can save your money and how you can get the best interest rates, and so on; remember that the more time and effort you put in now, the more it will pay off in the end.
|
Article by Andrew Jamaz, on behalf of http://www.refresharticles.com/articles/real-estate Check out our Real Estate category of quality articles. |
Real Estate Business Investing - Risk Taking For Profit
September 29, 2009 by Kenny Santos
Filed under Real Estate Investing
Many people today are going into the real estate business. Lots of us seem to be willing to take a risk. But keep in mind that if you are thinking of investing in real-estate, you might as well be gambling. There is no guarantee that the land or home you invest in will bring a profit. The rule of thumb is that the greater the potential for earnings, the greater the risk. Fortunately, if you are interested in the estate business you can take advantage of the myriad of helpful information available on the internet. Just go to google and search away to your heart’s content.
When it comes to purchasing real-estate it is critical that you have all the statistics and facts. Consider how much capital you can afford to invest. The amount will be different for every individual. I may be able to afford only $160,000 but maybe you can spend $500,000. Figure out how much you are willing to spend and how much you would like to make.
Television happens to be another good resource that you can take advantage of today. There are a number of good reality shows that deal with the current real estate business. Just recently I watched a show about a couple who had saved up some extra money. They wanted to try their luck in the real estate business. Their plan was to purchase a home and flip it. It was in Florida, but not in the greatest area.
Unfortunately, they paid more than they had planned to flip the home. Honestly, it was a mess when they bought it and they had to completely gut it and totally re-do the yard. They then put it on the market and the real heartache began. At first it would not sell at all and when it did, it went for less than what they hoped for. They had to lower the price substantially and barely broke even in the end. They wasted all that hard work, time and effort.
The bottom line is that the real estate business can be very risky, as I said earlier - a gamble. Just be sure to obtain all the information you need before investing your hard earned dollars in this market. Knowledge is power when it comes to the real estate business.
|
Michael Benifez covers finance for http://www.LifeinPalmCoast.com, examining the world of real estate, mortgage loans, refiancing and insurance in Palm Coast, Florida and Flagler county. His latest article on real estate investing in Palm Coast Florida covers refinance options. |
Real Estate Investing-From Cash to Properties
September 28, 2009 by Kenny Santos
Filed under Real Estate Investing
You Only Need One Great Idea to Get Rich — And This Is It!
In case you missed this last time I wrote …
How’d you like to “dabble” in real estate with me? No kidding! I recently came across a brand-new opportunity that made me so excited, I broke out into a sweat.
The program is called “How To Beat The System in Real Estate” and it is absolutely amazing. A real estate guru by the name of Thomas Kish created a complete business system based upon his own experiences as a successful investor.
Basically what he’s done is taken his expertise and packaged it into a mini “franchise.” So now anyone can duplicate his system - yes, even you - even without experience. And here’s the best part:
You don’t even use your own cash to get started!
Among the many things you learn right away is how to set up a new business (it’s really simple) and then get a new business line of credit. (You use the bank’s money to invest.) This business credit line has nothing to do with your personal assets or personal credit score.
Look - I am sure that all this sounds to good to be true. But it’s not. You’ve got to check it out for yourself. I’ve pasted in a copy of a letter that I received from Thomas Kish. He tells about his program in detail, and more clearly than I ever could.
Note that the system is a proven, money-maker and backed by a rock-solid guarantee. The only way you can lose is by not giving it a shot. C’mon - read this now …
From the desk of Thomas Kish at http://www.cashflowexperts.biz/cmd.asp?af=344232
Here is the lesson that will put you ahead of 99% of all real estate investors …
USE AS LITTLE CASH AS POSSIBLE! Yes, you read that right! The days of mortgage burning parties are long over. But you will still meet people who believe that it is a good idea to pay off the mortgage on a property so that they can have big cash flow. Why do people want to own real estate free and clear? Because they believe it’s the way to make more money. But let’s do a little number crunching: THE OLD WAY Use $40,000 of your personal savings to buy a house with 20% down and get a loan for the rest. You may cash flow $400 per month. And on this one house you will also be getting … A. Equity build up like a personal saving account. B. Good appreciation as the house goes up in value. C. Great tax deductions that will lower your tax bill. THE NEW, SMARTER WAY Use an $80,000 new business line of credit instead of your own CASH and buy 2 houses. You may cash flow $200 per house per month for a total cash flow of $400 a month. And you are making money on TWO pieces of investment real estate instead of one. You’re also getting … A. DOUBLE the equity build up. B. DOUBLE the appreciation. C. DOUBLE the tax deductions. AND YOU NEVER USED A DOLLAR OF YOUR OWN CASH. The entire down payment came from a new business line of credit! ———————————————— Do you want to see the step by step system on how to do this? http://www.cashflowexperts.biz/cmd.asp?af=344232 GO THERE NOW! Pssssssst … Want to hear a bit more? Looks like I’m giving away the farm today! But, it’s worth it if it helps you understand the incredible power of the system you’ll be getting. Okay, here goes … There are other simple ways to do this no money down stuff and get FOUR houses instead of just two. For example, the simplest way to do no money down real estate deals is by getting your credit score to stay above 680. Then you find a good mortgage broker that offers 100% LTV* real estate financing to the clients that they work with. *LTV = loan-to-value; the percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower). IMPORTANT: Make sure that your mortgage broker has closed this kind of loan recently with a REAL client. You want to know that they have experience closing these kinds of loans. Forget about your bank. Find a mortgage broker that has already done 100% LTV loans. Don’t let them tell you that they can do it. Make sure you verify that they have already done it many times. Next, write your purchase agreements with wording on the addendum that states the deal is … SUBJECT TO SELLER PAYING $4000 OF BUYER’S CLOSING COSTS. Now you have reduced your cash needed to close by $4000, if the seller accepts. And if the seller says “No” … Just tell them you will raise your offer by $4000 so they can pay your closing costs. NOTE: If you are making offers on real estate that has rent paying tenants, the seller will be giving you the rents and damage deposits when you close the deal. When they turn this CASH over, you can use it to pay for the property in most cases. —————————————————- Is there a better way? Of course! The best way to buy real estate is with a system that gets you cash advances from new business lines of credit. So check out the ULTIMATE NO MONEY DOWN real estate system and learn how to … 1. Get a new business line of credit. 2. Find foreclosure deals. 3. Set up partnerships. 4. Calculate the profit in a deal. 5. Improve your credit score. Go see what my clients have to say about this system at, http://www.cashflowexperts.biz/cmd.asp?af=344232 Remember that the only things that can stop your financial success is: Lack of knowledge. Lack of capital. Lack of a mentor. And Lack of action! YOU ONLY NEED ONE GOOD IDEA TO GET RICH. And you just found it. All you have to do now is act on it! http://www.cashflowexperts.biz/cmd.asp?af=344232 You know that real estate has proven to be the safest investment in any market. That’s why you make money in real estate no matter where you live, and no matter what kind of interest rates prevail. As the saying goes in the real estate business: Good times are good for investors. Bad times are good for investors. Go see how easy it is to get started at: http://www.cashflowexperts.biz/cmd.asp?af=344232
DO IT NOW! Sincerely, Thomas Kish. President of CashFlowExperts.Biz GO FOR IT: http://www.cashflowexperts.biz/cmd.asp?af=344232
About Tom Kish … Now a full time real estate investor, Tom has bought and sold over 5 Million Dollars worth of real estate in less than 2 years. Tom is a bona fide expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM! Note: For general CashFlowExperts questions, please call David Hult, Operations Manager at 612-702-2747
Thomas Kish
Contact@CashFlowSupport.Biz http://www.CashFlowSupport.Biz
CashFlowExperts.Biz Inc. Care of - XLR8 Media Inc. 2658 Griffith Park Rd. #326 Los Angeles, CA 90039 612-251-9830
About the Author
None
Definition of Security: Small Business Ownership
September 28, 2009 by Kenny Santos
Filed under Business/Network Marketing
What your key target audiences think about you can take you down in a New York minute!
Yes, that IS security when nobody can downsize you because you OWN that small business of yours! But preserving that special advantage is a never-ending job. In fact, do you know what needs to be preserved more than anything else?
Well, since they hold the future of your business in their hands, I believe that an outside group of people whose behaviors can effect your business survival more than any other, deserves your rapt attention.
What Id like you to conclude from that is, what your key target audiences think about you can take you down in a New York minute!
0 customers displeased with your product or service dont come back 0 prospects who dont know about you dont buy 0 employees who believe you dont care about them lean on their oars 0 when minority folks believe you discrimminate, you have new problems 0 and if community residents believe your business is a lousy place to work, you have hiring and retention problems.
Even though help is on the way, you cant work on everything at once, so prioritize those key audiences. That is, which external audience is of immediate concern?
The good news is that problems like those above just dont happen when you closely and regularly monitor what those key publics think about you. First, you find ways to interact with them.
Then probe what they think about you and the business. In what behaviors are they engaging? What about misunderstandings? Do you see any problems brewing?
When you take the trouble to stay in touch with those folks whose behaviors affect your business the most, youve taken an important first step towards preserving your business.
Theres a real sequence here. Once you gather those facts from monitoring your key, target audience, it becomes obvious what your problem is and, thus, the public relations goal. For example, correct that misconception about your product; or reinforce a budding perception that you deliver superior service; or correct a suspicion that you dont put women in positions of responsibility.
With your goal in-hand, how are you going to achieve it? You need a strategy which, in public relations, only comes in three flavors: create opinion (perception) where none may exist; change existing opinion, or reinforce it.
So, youve set your public relations goal AND a very doable strategy. Now, what must your message have to say to implement that strategy? It must address the fix you decided upon when you set the goal. It must be clear, specific, persuasive and, above all, believable. As you write it, remain sensitive to what you are trying to do: change somebodys perception which almost always leads to the change in behavior you really want. Does your message meet this challenge?
Many would now find themselves with a great goal, a super strategy and a first class message, and nowhere to go.
But not you. Here, you select the beasts of burden you need to carry that message to the eyes and ears of those members of your key, target audience whom you need to reach and move to action.
And that means communications tactics. There are more available to you than we have time or space to list. Among them: community briefings, seminars, special events, news releases, speeches, brochures and personal contacts.
Is your work completed? Nope, because how will you track your progress? The answer is, Round 2 of the monitoring job. Interact with members of your prime outside audience all over again, carefully evaluating what you hear. If the goal was correct a misconception, are you beginning to notice signs of that correction? Do those you talk to show, however little, a better understanding of the facts of the matter as represented in your message?
Whats the bottom line? Behaviors, of course.
When your messages and communications tactics combine to alter a questionable perception held by members of your key, target audience, certain behaviors will soon follow. Among them, favorable mentions in the media and in individual speeches and lectures; increased patronage for your business; corrected perceptions by influential members of that important group of people, and many other similar signs that your message and your communications tactics have, indeed, drawn blood.
Happily, what that adds up to is a successful public relations effort.
end
Bob Kelly counsels, writes and speaks about the fundamental premise of public relations. He has been DPR, Pepsi-Cola Co.; AGM-PR, Texaco Inc.; VP-PR, Olin Corp.; VP-PR, Newport News Shipbuilding & Drydock Co.; director of communications, U.S. Department of the Interior, and deputy assistant press secretary, The White House. mailto:bobkelly@TNI.net Visit: http://www.prcommentary.com
About the Author
Bob Kelly counsels, writes and speaks about the fundamental premise of public relations. He has been DPR, Pepsi-Cola Co.; AGM-PR, Texaco Inc.; VP-PR, Olin Corp.; VP-PR, Newport News Shipbuilding & Drydock Co.; director of communications, U.S. Department of the Interior, and deputy assistant press secretary, The White House. mailto:bobkelly@TNI.net Visit: http://www.prcommentary.com
Real Estate Investing Guide:Real Deal Killers
September 28, 2009 by Kenny Santos
Filed under Real Estate Investing
There’s a lot of deal killers that you’ve got to keep your eyes peeled for or else you’ll say “another deal down the tubes.” Some of these deal killers can include attorneys, realtors, and other investors.
However, I’m not going to touch those in this article. I want to go over one of the deal killers I see many investors making that have no clue there making… Talking numbers to quick.
The fact is you’ll dig yourself an early grave as investor by going in for the kill to early by talking about the house numbers. More often than not, investors talk money to quickly when meeting with sellers. And as a result, the seller’s door will shut, while the investor may never get the second opportunity.
So, you wanna increase your profits and the likelihood of getting an offer accepted?
Then get the motivated seller to like you first. When they like you, they’ll feel they can relate to you and a certain level of trust is earned and thus your chances of getting the deal closed just drastically increased.
Use the phone as much as possible to collect enough data to see if the deal is worthwhile, but when you meet in person, it’s better to get to know the seller and find a common ground before you ever talk about the house and the house numbers.
It’s better to back away from the money issue all together and build a strong rapport right from the gate. A couple of years ago, I was assisting a knucklehead investor in another market that was looking at a deal that had about $40K in equity. He’d met with the owners and got nowhere, so he called me to see if I’d meet with them for a percentage of the deal.
At the time, I had a few deals in the works in this area myself, so I agreed. He’d met with these people already and they’d talked by phone on several occasions but he couldn’t land the deal. I spent a little over an hour and learned more in that hour than he knew after three or four meetings. I took an interest in them by listening to their family history, how many kids they had, and yes I walked away with the deed. They did the deal because they trusted me because I invested in them first.
Make sense?
This is so simple to do, yet often overlooked. I know you can pull this off, so listen up.
Look for items that you can make small conversation with to build a level of rapport. Here’s a brief list:
- Awards on wall - Vehicles in Drive - Children pictures on wall - Diplomas displayed on wall - Artwork
It’s literally amazing how much you can learn by just looking at the walls and walking up the driveway. When walking up to the door, pay close attention to the gutters, the way front door looks, the mailbox, and the landscaping. Does it look overgrown, does it look in need of repairs. If so, the seller could be facing some financial hardships. Just be aware of what’s going on by observing what you see with your own two eyes. This alone could open the door for you conversationally plus let you know what type of situation the seller may be in.
About the Author
Derek Pierce is a full time real estate investor that got his start investing in real estate when he bought his first property in September of 2000. Now, he reveals the real estate investing secrets he swears by at http://www.thereisecrets.com
Real Estate Investing - It Takes A Team
September 28, 2009 by Kenny Santos
Filed under Real Estate Investing
|
|||||||
|
That’s right, Real Estate Investing is a team sport, and if you want to be successful, you will have to build a strong team. No matter how badly you want to, you can not do everything yourself. You just will not have the time or expertise. As new Real Estate investor you need to begin thinking about who you want on your team. Get referrals from other Real Estate Investors and Real Estate Mentors. It is best to select people who have some type of Real Estate investing experience. Also, it is extremely important to not have teammates who tell you this can not be done. You need only supportive team members. Surround yourself with link-minded people; negativity will get you no where. You will build your Real Estate Investing team over time, not overnight. Sometimes it will be by trial and error. Yes, in some instances you will have to pay your teammates, but if you have chosen wisely you will get your investment back many times over. To build a successful team you need to build a relationship with many different individuals. Choose your teammates wisely and they will help you reach the Real Estate Investing dreams that you so desire. Your Team Should Include… Your Spouse/Significant Other Your Local REIA In order to associate with like-minded Real Estate Investors and local Entrepreneurs, it is essential that you find a REIA to attend in order to network with fellow Investors. Other Real Estate Investors Other Investors are a major player on your team. You will seek their advice or input often and they will be able to provide referrals for many of your other teammates. Real Estate Attorney Select an attorney that is familiar with creative Real Estate Investing. Accountant You want a certified professional keeping your books, preparing your financial statements, and advising you on tax issues. Make sure they also understand creative Real Estate Investing. Title Insurance Company Title searches and closing are often done by Title Companies. Note that in some areas it is common for attorneys to do these functions. Insurance Agent Insurance will be needed for all properties that you buy and hold for whatever reason. Not to mention liability insurance. You will also probably want an all-encompassing umbrella policy to protect you and your business. Again select an agent that is familiar with what you do. Real Estate Agents Yes, you want Investor friendly Real Estate Agents on your team. It will probably take some time to find a few, but they are worth their weight in gold. Make sure the relationship will be mutually beneficial. Mortgage Broker If you need to help a tenant owner get financing, a mortgage broker can come in handy. They can start early in the process and try to get your tenant owners a mortgage to cash you out. Have several different companies at hand. Get referrals and stay on top of them throughout the loan process. Inspector Eventually you will become pretty good at inspecting structures, and systems but until then use a professional. A wrong evaluation can cost you thousands. Licensed Contractor This is the best person to estimate repair costs. While an Inspector can spot things that need to be repaired, your contractor can give you accurate labor and material estimates. Appraiser Again, you will eventually get very good at this, but have an appraiser on your team as you will need help in the beginning. Notary Public (Mobile) Some documents have to be notarized and you do not want to wait until the next day when a Motivated Seller is ready to sign your contract. Having a mobile notary on your team allows someone to meet you right at a property. A Few Others to Take Care of: ? General Handyperson Work I think you get the point. And if not, do not worry because once you have a Real Estate deal in hand, you will quickly figure out if there are others that you need.
Article Tags: estate, real, team
|
