Real Estate Investing Analysis

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.

Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

The Guide To Real Estate Investing Book - A Review

Have you ever wondered if there was one resource for people interested in real estate investing, like the Guide To Real Estate Investing book? There are several of them, although none have exactly that title. I?ve read many of them, and I will give you my recommendations in this article.

When you?re looking for a comprehensive guide like the Guide To Real Estate Investing book, you need to understand that there is not one single book that will be all things to all people. Different investors will be looking for different information, depending on the type of investing they?re interested in. If you?re interested in residential income property, the Guide To Real Estate Investing book you choose will be different than if your interest is in commercial real estate or apartment complexes.

In other words, there isn?t one, definitive resource known as the Guide To Real Estate Investing book.

My experience and expertise are in residential real estate, such as single family homes and duplexes. Therefore, this discussion will focus on the Guide To Real Estate Investing book for that type of investment real estate.

Two of the best books I have read on residential income property, both of which could be seriously considered as the Guide To Real Estate Investing book, are Steve Cook?s ?Wholesaling For Quick Cash? and ?The No-Nonsense Real Estate Investor’s Kit: How You Can Double Your Income By Investing in Real Estate on a Part-Time Basis? by Thomas Lucier.

These books offer two different approaches to real estate investing, both of which are excellent. Steve Cook?s ?Wholesaling For Quick Cash? is really a full-fledged real estate investing course, giving you a complete strategic plan for breaking into the world of real estate wholesaling. It qualifies for consideration as the Guide To Real Estate Investing book because it?s a self-contained investing philosophy and plan.

Lucier?s book, ?The No-Nonsense Guide? is a book that gives you a complete, basic run-down of the important considerations when considering beginning real estate investing, as well as some complex and effective advanced strategies. This one is a sure-fire candidate for the Guide To Real Estate Investing book.

Of course, there are plenty of other excellent candidates for the Guide To Real Estate Investing book- these two are simply my favorites. If you have found a resource you think warrants consideration for the Guide To Real Estate Investing book, why not email me and let me know?

For now, check out my website, where I have tons more resources for investors, and some of the best articles and stories on real estate investing you?ll find anywhere! Hope you enjoyed this little article on the Guide To Real Estate Investing book.

Now, go make more offers!

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

Is Real Estate Investing still solid in todays market?

Opportunities to make big, quick profits in residential real estate tend to come and go in cycles. When a local market is hot, families may find it possible to buy a house at an attractive price, fix it up, and watch its value rise in just a few years.

When the same local market is at the low end of the appreciation cycle, reaping a profit on the family home can take a good deal more time but the reward can be just as satisfying if price and location and carefully considered.

Even in uncertain economic times like these, history shows that real estate is one of the soundest investments a family can make. During the Great Depression of the 1930s when the stock market plummeted as much as 89 percent, housing prices dropped only 39 percent. According to most of the research on housing trends, prices continually stay at the same level as, and most often appreciate faster than, the rate of inflation. Housing prices actually rose an average of 10 percent during the recessions of the mid-1970’s and early 1980s.

CENTURY 21 statisticians report that the rate of home appreciation since 1990 has been around five percent nationally, with inflation hovering around four percent. Homeowners, obviously, are still staying ahead in the real estate game on average.

And, with mortgage interest rates the lowest they’ve been in two decades, real estate today is a more attractive investment than it’s been in years.

First-time buyers are the big winners in this environment. Drawing up a budget can help you and your family decide on what you can afford. Once you’ve determined a price and picked your desired community, shop around to find the best house you can buy for your money. This strategy can help you realize greater appreciation two or three years down the road.

This is also a good time to purchase a second or vacation home. A bargain cabin in the woods today might bring an excellent return when housing prices move upward. Affordable second-home prices also allow you to purchase a vacation home that can serve as a stepping-stone to a larger retreat in the future.

But appreciation isn’t the only advantage to buying a home. The federal government thinks home ownership is so important to the future of our country that it allows mortgage interest to remain the last substantial tax shelter for families. Owners can also take deductions on their property taxes. And, the profit on the sale of your home remains tax free as long s you buy a house for a greater or equal price.

So before you decide that this is not a good time to invest in residential property, re-examine the financial benefits of owning your own home and put them to work for you.

About the Author

Joaquin Fagundo is a part time real estate investor and operator of www.browsedaily.com a website devoted to new and experienced real estate investors.

Real Estate Investing Analysis

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.

Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

Real Estate Investing Analysis

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call ?retail condition?. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property?s Current Market Value.

Once you are armed with the Current Market Value of a property, it?s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

How Using Private Money For Real Estate Investing Preserves Your Credit

?I?m sorry Mr. Investor, but your credit report indicates that you have too many mortgages in your name. We are unable to grant your loan request at this time.? Words no real estate investor ever wants to hear, especially when a really great deal is on the line. Another great reason to begin lining up sources of private money for real estate investing.

Maybe you aren?t at the point yet where you have been turned down for a loan because you have too many mortgages listed on your credit report, but invest in residential real estate for long and you may find yourself faced with that exact scenario. That, or your debt-to-income ratio will grow ?too high? in the minds of most lenders.

?Debt-to-income ratio?? you ask. ?What?s that??

Great question. Debt to income ratio is normally calculated as follows? add up your total monthly debt payments, including loans, credit cards, mortgages, etc. Don?t include things like utilities, groceries and the like? just debts that appear on your credit report.

Next, add up your total gross monthly income from all provable sources. Then, divide income by debts, and the result is your debt-to-income ratio. As an example, if your monthly debt obligations total $2,000 and your total monthly income is $6,000, your debt-to-income ratio is 33%. The lower the percentage, the better off you are from a lender?s perspective.

Which brings me to the point of this article. If you can borrow private money for real estate investing that doesn?t show up on your credit report, lenders won?t include the monthly payment in their calculation of your debt-to-income ratio. Therefore, your credit- and your ability to borrow- won?t be negatively impacted by the loan.

Also, you?ll never come up against the limit some lenders place on the number of mortgages one individual can have on their credit at any one time.

This should make you very happy, because it means you will have more options when it comes to using your credit for other things, and more money available for investing. More money equals more leverage, and more leverage equals more deals, and more deals equals? well heck just MORE!

It?s an amazing thing about private money for real estate investing. Everything gets easier, because the financing gets easier. Makes you want to go out and get some for yourself, doesn?t it?

For more on how private money for real estate investing preserves your credit, visit http://www.private-money-real-estate-investing.com/preserve-your-credit.html

The Guide To Real Estate Investing Book - A Review

Have you ever wondered if there was one resource for people interested in real estate investing, like the Guide To Real Estate Investing book? There are several of them, although none have exactly that title. I?ve read many of them, and I will give you my recommendations in this article.

When you?re looking for a comprehensive guide like the Guide To Real Estate Investing book, you need to understand that there is not one single book that will be all things to all people. Different investors will be looking for different information, depending on the type of investing they?re interested in. If you?re interested in residential income property, the Guide To Real Estate Investing book you choose will be different than if your interest is in commercial real estate or apartment complexes.

In other words, there isn?t one, definitive resource known as the Guide To Real Estate Investing book.

My experience and expertise are in residential real estate, such as single family homes and duplexes. Therefore, this discussion will focus on the Guide To Real Estate Investing book for that type of investment real estate.

Two of the best books I have read on residential income property, both of which could be seriously considered as the Guide To Real Estate Investing book, are Steve Cook?s ?Wholesaling For Quick Cash? and ?The No-Nonsense Real Estate Investor’s Kit: How You Can Double Your Income By Investing in Real Estate on a Part-Time Basis? by Thomas Lucier.

These books offer two different approaches to real estate investing, both of which are excellent. Steve Cook?s ?Wholesaling For Quick Cash? is really a full-fledged real estate investing course, giving you a complete strategic plan for breaking into the world of real estate wholesaling. It qualifies for consideration as the Guide To Real Estate Investing book because it?s a self-contained investing philosophy and plan.

Lucier?s book, ?The No-Nonsense Guide? is a book that gives you a complete, basic run-down of the important considerations when considering beginning real estate investing, as well as some complex and effective advanced strategies. This one is a sure-fire candidate for the Guide To Real Estate Investing book.

Of course, there are plenty of other excellent candidates for the Guide To Real Estate Investing book- these two are simply my favorites. If you have found a resource you think warrants consideration for the Guide To Real Estate Investing book, why not email me and let me know?

For now, check out my website, where I have tons more resources for investors, and some of the best articles and stories on real estate investing you?ll find anywhere! Hope you enjoyed this little article on the Guide To Real Estate Investing book.

Now, go make more offers!

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