Use Private Money For Real Estate Investing To Keep Your Credit Available
March 18, 2010 by Kenny Santos
Filed under Real Estate Investing
Let?s assume for a minute that you are an average person, with an average income, and you want to invest in real estate. Have you thought about where the money will come from? Like most folks, trying to come up with the needed financing may be your biggest hurdle. That problem doesn?t necessarily go away after you?ve bought a few properties.
Some people think that after they have gotten a few deals, and a few mortgages in their name, they will never again have trouble obtaining financing. Unfortunately, that?s not always the case. Once you have several mortgages listed on your credit report, you may find it difficult, if not impossible, to get approved for additional loans. There is a solution however? it?s called private money for real estate investing.
The use of private money ? money loaned to you by private individuals for your real estate investing activity ? typically doesn?t get recorded on your credit report. Private lenders use different criteria for their loan decisions, and most are regular people like you and me. They don?t report to the credit bureau, so the loans don?t show up on your report.
What that means is that private money real estate loans don?t impact your credit. They don?t ?count against? your borrowing potential, or your debt-to-income ratio. As a result, when you need to borrow money for other investments, or other purposes altogether, the lender won?t see a long list of mortgages on your credit report, and will be able to approve your credit request.
Building a network of private lenders for real estate investment purposes means never having to explain to a creditor why you have so many loans or mortgages in your name. You won?t have to prove enough income to cover all of those loans, because no one will even know about them, except you and your private lenders. In fact, even your private lenders don?t need to know about each other, unless you want them to.
This is yet another reason to consider using private money for real estate investing, and building a network of your own to fund your real estate deals.
For additional information and free material on how private money for real estate investing preserves your credit, check out http://www.private-money-real-estate-investing.com/preserve-your-credit.html
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Real Estate Investing For Newbies - Intro To Foreclosure Basics
March 4, 2010 by Kenny Santos
Filed under Real Estate Investing
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By now of course you know foreclosures are at an all-time high in our country. Nevertheless it is another Real Estate Investing niche that has given many people great potential for making money. One of the most important things to remember about foreclosure investing is that there are many details to consider. It is not difficult, per se, and once you become familiar with all of the small details you can achieve success in no time at all. The first thing you need to know about foreclosure investing is how it works. Basically, a foreclosure is a property that the bank owns due to the fact that the owner of the property neglected to follow the terms and conditions of his/her mortgage, which usually means a failure pay his or her mortgage. In turn, the bank that owns these properties is forced to sell them back to the public in order to recover the money that they lost. And to go along with this, the bank often attempts to sell foreclosures quickly because they are not making any money by holding onto them. All of this works out to the advantage of a foreclosure investor. Because homeowners have heard or read about the profit potential, most people facing foreclosure will usually try every option available before selling to a Real Estate Investor. Let’s face it, they know that as Real Estate Investors we are only going to offer a certain percentage of what the property is worth on the open market, but look at the alternative. The home will be auctioned off. The homeowner will get nothing in terms of money, will lose all of their equity in the house, and have a foreclosure on their credit report. This will probably prevent the homeowner from being able to qualify for another loan for several years. Depending on the situation the Real Estate Investor, in exchange for control of the property may offer the homeowner a cash payment, make up the missed mortgage payments, and pay all of the penalties and legal costs that have accumulated. In essence the property is brought to a current status and the foreclosure process is effectively stopped. Real Estate Investors have really helped homeowners in this situation whether they realize and appreciate it or not. So our job is to find homeowners who are facing foreclosure and either pass on or work the lead to see if we can buy the property. The main thing that makes the foreclosure process very complicated is that it varies from state to state.
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