There seem to be two types of people in the world?office slaves who very nearly treat work as a religion and who are in danger of neglecting the very families for whom they work so hard to provide; and people who have adopted more of a slacker mentality, convincing themselves that money isn’t important because they don’t want to be slaves to the workaday world.
Robert Kiyosaki, author of the Rich Dad book series, has money and he doesn’t agree. ?Anyone who says money isn’t important obviously has not been without it long,? he says in his book ?Cash Flow Quadrant.?
He knows because he has been in both situations. For several weeks in 1985, he and his wife were so destitute, they were actually forced to live in their car, after which they moved into a friend’s basement for nearly a year. They took only odd jobs, because wealth, not job security, was what they were after.
Four years later, they were millionaires.
While money is important, it isn’t important in and of itself, and that is why Kiyosaki and his wife didn’t rush out to look for the ?good? jobs they both could have gotten. It’s important because it provides for your basic needs and, if you have enough of it, it can give you time to be with your loved ones and do the things in life that truly make you happy.
One thing a job will never give you is extra time with loved ones. In fact, it will take away as much of that precious time as you allow it to.
Everyone sees the Catch 22, worrying that if they spend the time working to make enough money to do the things they want to do, they won’t have time to do those things. That is true. Working is not the answer. Making your money work, preferably in a solid investment like real estate, is the answer.
Kiyosaki seen been at that crossroads himself. ?Money is important, but I did not want to spend my life working for it,? he says in his Rich Dad series. Luckily he had the benefit of that rich dad’s knowledge of how the financial world works to see him through.
He knew that there was a way to be a responsible provider for his family without spending most of his waking life working. He knew the secret was become an investor.
When you become an investor, you are simply getting your money from a different place. What you want to do is take the money you get from your job, and put it into the I quadrant. That means that you now have money working for you. Your money is making money and you didn’t have to lift a finger for those extra dollars.
That is how you can have your cake and eat it too?because the money you make no longer represents hours of your life spent away in pursuit of a living, you can take those hours and reinvest them in spending actual time with your family, in pursuing hobbies, hanging out with friends. In short, you can reinvest them in your life.
Investment Property Specialist - Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. Get A Free Copy Of, “The Investor’s Rental Guide” at: http://www.GreatInvestmentProperty.com
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Tags: Benefit, Cash Flow Quadrant, Catch 22, Crossroads, Earn Money, Enough Money, Extra Time, Investing Money, Job Security, Mentality, Millionaires, Money Work, Odd Jobs, One Thing, Precious Time, Rich Dad, Robert Kiyosaki, Slaves, Solid Investment, Workaday World
Real estate investing: hard money vs. conventional investor is not as difficult topic as it looks to be at first sight. People get confused because they cannot differentiate between the hard money loans or HML and conventional investor loans or conventional mortgages. They keep on asking questions regarding hard money loans. Here are answers to those frequently asked questions that will be of great help in understanding the real estate investing: hard money Vs conventional investor.
How to Obtain the Hard Money:
The first question is regarding the working methods of lenders of hard money loans. HML helps in real estate investing by making asset based capital available to investors. The biggest benefit is the fast pace at which these HML work. You may receive the amount in as little as three days after furnishing all required documents. You can get hard money as loans against collateral security, for both residential as well as commercial purposes. If we compare it with conventional mortgage then we will find that conventional mortgage takes about 4 to 6 weeks of time in processing.
Interest Rates:
The second but very important question is related with interest rates. In case of hard money, the interest varies with the lender. The average interest rate is between 14 % and 18 % per annum. Most of the lenders require monthly payments. For a conventional investor this rate of interest for obtaining hard money is a little bit on the higher side.
You may get hard money for real estate investing up to the 70 % of the value of the property. The amount of loan can be as little as $ 25,000 and as high as $ 1,000,000 depending upon the case. Duration of loan is from 6 months to 12 months varying with your requirements and the conditions of lender. Some people ask that is it possible to make the interest payment at the end of the loan term. Although, some lenders have this kind of provision, yet it makes your presentation week because they believe that if it is difficult for you to make the monthly interest payments then you are not eligible for getting the loan.
As we are discussing the real estate investing: hard money Vs conventional investor, it is relevant to compare the monthly payments also. For every 100,000 dollars borrowed you will have to make the monthly payment of $1166.66 in case you opt for the hard money. While for the conventional investor, it comes to $1098.00 per month. When we compare the prepayment, it is possible in both the cases. However, in case of hard money time period is a minimum of 3 months, while up to 24 months in case of conventional mortgage.
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Tags: 12 Months, Annum, Collateral Security, Commercial Purposes, Conventional Mortgage, Conventional Mortgages, Duration, Hard Money, Hml, Interest Payment, Interest Rate, Interest Rates, Investing Money, Investor Loans, Lenders, Little Bit, Loan Term, Money Investing, Money Loans, Rate Of Interest
If you have decided to begin a career in real estate investing, you will need to start out with the basics before you begin investing your money. The fact is that understanding the fundamentals of real estate investing is crucial for you to become a success. The following information will help you to understand what you need to do to become successful.
Why You Want To Invest
Generally speaking, there are only three reasons to invest in property. The first is to get cash immediately. This can be done a couple of different ways. This is done by purchasing a property at a low price then selling immediately at a higher price, otherwise called flipping properties.
The second reason to get involved in real estate investing is to get cash monthly. This can be done by generating a positive cash flow from the rentals you’ve purchased as an investment. Of course, the third reason is to get cash at a later date.
These properties are kept for a time until they appreciate in value and then they are sold. It is kind of like having cash in the bank that you can not touch. Understanding why you want to invest in property is one of the fundamentals of real estate investing that you must know before you begin the process.
The Buying and Selling Process
In order to be successful in your investing, you must first understand how the buying and selling process works. You need to understand what steps to go through before you close on a property. This includes learning about the purchases and sale agreement, contingencies, cash flow statement, and, of course, how to negotiate as both a buyer and a seller. These things are the fundamentals of real estate investing and must be understood before you begin.
Understand The Market
Understanding how to research the real estate market is also the key to your success. Knowing where to go, such as the local registry of deeds and town office, to research the history of the property can make or break you in this business.
If you do not have the history of the property, as well as information on how properties are selling in your particular area, you may find that you are lacking the fundamentals of real estate investing and find yourself on the losing end.
Your Financing Options
One of the most important things to learn is what your financing options are when investing in property. If you plan to finance your property investments, you will need to understand the terms and conditions of your loan. Without this knowledge, you may end up not making as much money as you could with your investment.
When you set out to learn the fundamentals of real estate investing, you will find that there is no one particular “right way” to begin investing in property. There are many different methods to use and some will bring you success while others will cause you to lose money.
However, if you can learn the fundamentals of real estate investing, you will find that you are successful with your investments far more often than not. You will find there are many property classes on the buying and selling process, financing, and negotiating online, as well as held by local financial institutions. Take advantage of the classes around you and you might be surprised in your success.
Tags: Career In Real Estate, Cash Flow Statement, Contingencies, Different Ways, Flipping Properties, Investing Money, Investing Your Money, Investment Course, Positive Cash Flow, Real Estate Investing, Real Estate Market, Reason, Registry Of Deeds, Success
If you’re thinking about investing in real estate to make money, you need to first determine your financial goals. Do you need to make money quickly, invest for your children’s college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which type of investing strategy works for you.
Make Money in Real Estate - Fast Cash Strategy
If you’re low on cash, get started by finding a bargain house and selling the contract to another real estate investor. Join a real estate investing club to find investors willing to pay you for finding good deals.
Make Money in Real Estate - Income Property Strategy
If you want to increase your monthly income, look for income property that returns a positive net income from month to month. Start with single family house. Look for a bargain below market value. Fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out from your home area to a location that supports this type of return on your money. You can’t pay $300,000 for a home with a mortgage of $1,500 that only rents for $1,000. You might start with a home for around $300,000 that rents for $1,750. You will need good credit to get a loan with good interest rates. In a few years, your rental income should go up. Many real estate investors enjoy thousands of dollars each month generated by income property.
However, some investors don’t like dealing with tenants and prefer to make money in other real estate ventures.
Make Money in Real Estate - Investment Property Strategy
If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for property that you can transform and sell or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For instance, some investors buy apartment buildings and turn them into condominiums. Many investors speculate in land and make money by holding the land until new development in the area increases the value.
Examine your financial situation along with your long term goals. You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.
Copyright ? Jeanette J. Fisher
About the Author: Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks “Credit Tips” http://worryfreecredit.com “Flipping Houses” at http://doghousetodollhousefordollars.com
Tags: Bargain Market, Financial Goals, Good Deals, Interest Rates, Investing In Real Estate, Investing Money, Mortgage Payment, Net Income, Profits, Property Strategy, Real Estate Investment, Real Estate Investment Property, Real Estate Investor, Real Estate Investors, Rents, Retirement, S College, Single Family, Strategy Works, Thousands Of Dollars
More and more people are starting to realize that real estate investing is a truly lucrative way to find success in the business world. The dream of being your own boss appeals to many, and real estate is one way to make it happen. But where do you get the money for real estate investing, which certainly isn?t cheap?
If only it weren?t for the money?Many people could realize the dream of real estate investing, but it?s just too expensive to get started. Though you might find success after purchasing only one property, many people will never be able to make their real estate dreams come true. Money for real estate investing doesn?t grow on trees, you know. So?where do you get the funds you need to get started?
There are a few different ways to get money for real estate investing, so you can get started reaping the rewards of real estate. First, consider a partner. If you?ve got the ideas and the plan, and something else has the funds you need, bring them into the business. Offer to split profits 50-50, and after the sale of one or two properties it?s very likely that you?ll have enough money to strike out on your own. Even though you don?t have money for real estate investing, there?s a good chance that you know someone who does. Present your ideas, and try to bring them into the business. You never know, this may turn out to be perfect for your real estate dreams.
Homeowner loans and other loans are another possibility. Banks always have money for real estate investing. Since you?re going to be using the loan to buy a house, there?s a good chance that you will get approval for some amount of money. You can use this money for real estate investing, and pay off the loan out of the profits. Many beginning investors find that, without loans, they can?t go anywhere in the field of real estate. Banks are there for our use ? so don?t be afraid to use them. The worst they?re going to do is reject you, right?
Money for real estate investing may not be as hard to come by as you think. If you can?t get all the funds you desire, look into less expensive d?cor and renovation methods that might save you a little bit. You may not get the big sale you?re looking for right away, but sometimes it?s better to start out small. Don?t be afraid to take little steps at first, because you can always work your way up to more expensive properties in the future. Real estate is a very fast-growing business field, and many are learning how to turn the market to their favor. Even if you only get a little bit of money for estate investing in the beginning, it doesn?t mean you can?t go through with your plans. Scale back, go for smaller properties, and start out at a job instead of a run. You can always work your way up.
Tags: Amount Of Money, Banks, Being Your Own Boss, Business World, Different Ways, Dreams Come True, Enough Money, Estate Dreams, Good Chance, Homeowner Loans, Investing Guide, Investing Money, Money Investing, Present Your Ideas, Profits, Real Estate Investing, Rewards, Right Money, True Money, Ways To Get Money
When you use private money for real estate investing there are several clauses your lending agreements should never be without. One of those clauses is the ?No Pre-Payment Penalty? clause. Here?s how it works.
When you borrow private money for real estate investing, you?re accomplishing a great deal. You?re protecting your credit, and maximizing your borrowing potential, as well as gaining access to a ready and flexible source of money.
It would be a shame to go through all of that and leave yourself open to harm in one critical area? what if you?re stuck with a repayment term that?s too long?
The sure way to avoid this issue is to put a ?No Pre-Payment Penalty? clause in every private money for real estate investing agreement you make. That way, when you?re ready to pay the loan off and free up those funds for a new investment, you?re not stuck paying a hefty penalty.
Here?s how the clause should be worded.
?”The Borrower reserves the right to prepay this Note (in whole or in part) prior to the due date with no prepayment penalty”
Without this clause, you would be obligated to pay the lender the full interest due on the loan for the entire term, no matter how long it is. That?s not the kind of flexibility you want in a loan of this type, and flexibility is one of the main reasons to use private money for real estate investing.
Protect yourself and your borrowing capacity when you’re accessing private money for real estate investing by including the above clause in every one of your private notes and contracts. You?ll be glad you did.
Tags: Borrowing Capacity, Clauses, Contracts, Critical Area, Due Date, Flexibility, Flexible Source, Investing Money, Money Investing, Penalty Clause, Prepayment Penalty, Private Money, Private Notes, Protecting Your Credit, Real Estate Investing, Real Estate Investor, Repayment Term, Shame, Successful Real Estate, Tom Dunn
When people think about their 401K they consider a lump sum of money that has been put away for retirement.
In fact most people completely forget about their 401K until income tax time. Which is a shame because this can be a great source for funding real estate investing.
Creative real estate investors have figured out that 401K and real estate investing have a mutually beneficial relationship. By now you are probably wondering what 401K and real estate investing could possibly have in common. The answer is that the two have several things in common. Each of these should be of interest to you if you are a current real estate investor or you are considering becoming involved with real estate investing.
The easiest way that 401K and real estate investing can work together is through the ability to take out a loan against a 401K. The primary objective with real estate investing is to use little or none of your personal money to fund the investment.
Since you are allowed to borrow against your 401K, you can use this to finance part of your investment into real estate. When the deal closes, you will receive back the amount you borrowed plus more. You can easily pay back the loan without affecting your 401K.
There are some things to note about this method of 401K and real estate investing. First, you should know that there is a cap on the amount you can borrow against your 401K. This amount is usually $50,000. However, it can be less, depending on the amount of money you have in your 401K. Another thing to note about 401K and real estate investing is that the real estate you purchase through this means is not eligible for the mortgage-interest tax deduction. There are no tax benefits when you use 401K and real estate investing together.
Another option for using 401K and real estate investing together is to put the money into an IRA, or individual retirement account. Sometimes this is not allowed, but it if is allowed, you have more flexibility on what you can do with the money. You might receive a penalty for moving your money from 401K. The penalty is usually worth it considering the benefits that are made through real estate investing.
If you are weary of the risks involved with 401K and real estate investing there is a safer way to invest in real estate with your 401K. Some plans offer the option to invest in real estate investment trusts. These trusts consist of companies that buy and sell real estate.
This is less risk way of using 401K and real estate investing. It also requires less work on the part of the investor since the trust companies are the ones actually doing the real estate investing.
Most people are unaware of the possibilities that exist with 401K and real estate investing. It is a creative way for investors to make a profit in real estate without actually using their own money. The good thing about 401K and real estate investing is that there are both safe and risky ways of investing to yield a profit. The decision you make is one entirely of personal preference.
About the Author:
Did you know there are an estimated 8 million plots of unclaimed land and real estate in this country? Download a free ebook, that shows you how to claim your share here: http:Claim Free Land & Property Ebook
Tags: 401k, Amount Of Money, Beneficial Relationship, Creative Real Estate, Current Real Estate, Flexibility, Great Source, Income Tax Time, Individual Retirement Account, Interest Tax, Investing Money, Ira, Lump Sum, Mortgage Interest Tax Deduction, Personal Money, Real Estate Investing, Real Estate Investor, Real Estate Investors, Shame, Sum Of Money
If you’re thinking about investing in real estate to make money, you need to first determine your financial goals. Do you need to make money quickly, invest for your children’s college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which type of investing strategy works for you.
Make Money in Real Estate - Fast Cash Strategy
If you’re low on cash, get started by finding a bargain house and selling the contract to another real estate investor. Join a real estate investing club to find investors willing to pay you for finding good deals.
Make Money in Real Estate - Income Property Strategy
If you want to increase your monthly income, look for income property that returns a positive net income from month to month. Start with single family house. Look for a bargain below market value. Fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out from your home area to a location that supports this type of return on your money. You can’t pay $300,000 for a home with a mortgage of $1,500 that only rents for $1,000. You might start with a home for around $300,000 that rents for $1,750. You will need good credit to get a loan with good interest rates. In a few years, your rental income should go up. Many real estate investors enjoy thousands of dollars each month generated by income property.
However, some investors don’t like dealing with tenants and prefer to make money in other real estate ventures.
Make Money in Real Estate - Investment Property Strategy
If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for property that you can transform and sell or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For instance, some investors buy apartment buildings and turn them into condominiums. Many investors speculate in land and make money by holding the land until new development in the area increases the value.
Examine your financial situation along with your long term goals. You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.
Copyright ? Jeanette J. Fisher
About the Author: Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks “Credit Tips” http://worryfreecredit.com “Flipping Houses” at http://doghousetodollhousefordollars.com
These days, a whole lot of people in America are investing money in real estate. Unless all these people have very poor judgment, there must be a good reason for it. Perhaps it’s because real estate can climb in value very quickly and return a good profit. I can not imagine any other reason.
When so much money is at stake, you must be certain that you know exactly what you are doing, since so many real estate investments turn out to be duds. If you make the wrong investment in a real estate property you can lose your shirt. Perhaps the best advice I could recommend is to educate yourself, and I can not think of a better way to do that than to attend a good real estate investing seminar, taught by someone who has made money investing in real estate.
While I have not yet attended a real estate investing seminar, I am seriously thinking about it. A friend of mine recently sold a home in Palm Coast, Florida, only five months after he bought it. Frankly, he had never attended a real estate investing seminar - he was just lucky that he ended up having made a good deal. He moved there to be closer to his girlfriend but soon discovered that his monthly payments were more than he could handle, so he sold the house. I could not believe it when he told me he made $45,000 on the sale. Neither could he!
Well, unlike my friend, I would not just rely on my luck. But I would like to learn how to do the same thing. That is, buy a home in a good area, fix it up to increase its value and then flip it for a hefty profit. But I would not want to go in blind. Fortunately, there is a load of information on the internet about real estate investing seminars and where to find them. I continue to search and increase my knowledge, and despite new investing in real estate is still very promising. If you would like to do the same thing, I highly recommend that you check out real estate investing seminars online. Hey, there is enough real estate out there for everyone. Maybe I’ll see you at a seminar!
Investing in properties is one of the best ways to make money. Buying underdeveloped and foreclosed real estate then developing and selling it is an example of real estate investment.
When investing in real estate you should first determine what kind of real estate investment is suitable for you. Do not just jump in with the crowd and start buying properties. You have to think this through. Remember that real estate investment is one of the biggest financial decisions you have to make and can be very risky and might end you up broke.
There are many ways to invest in real estates. One of them is the assumption of loan. The good thing about assuming the loan is that you will need less money to invest in a property. Therefore, you can spend more cash for the property development and upkeep.
Since the lender already knows about the property, you save precious time and money. Another great thing about assuming loans is that with long-term loans you will not start the amortization process when you start the loan. This is because the monthly payments of the first owner was used to the amortization instead of the interest.
This usually happens if the banks will not finance for the loan of the property. When this happens, the seller can use a trust deed where the buyer can pay lower down payments and the seller will be more flexible with the terms of payment.
The advantages for this are lower costs and a chance for the seller to reduce interest costs. The trust deed also enables the seller to specify how many years the term of the loan will be.
This works when the seller gets a second mortgage and wraps it around the existing mortgage. In this type of assuming the property loan, you have to ask permission from the loan holder to assume the loan. With this kind of financing, the new financing is added to the original loan.
Real estate investments can increase the property’s value. To make this work, you have to invest in the development of the property to appraise the value of the property.
You will be buying an underdeveloped property cheaply and sell it with the property value increased.
Before investing in a real estate, ask yourself these following questions before buying:
* Do I want to pay down the loans on my properties before I retire and live on the income they generate?
* Do I want to sell the properties and use the profits to finance my retirement?
* Will my property generate immediate income or will it be a long-term investment?
Answering questions like these can help you decide if you would want to invest in real estate. It will help you determine about the type of income you would get in your property and allows you to see yourself in the future when you retire.
