Real estate can provide passive income, even allow you to quit your day job and become financially free. For many investors, this is the goal. To be their own boss and to be able to work when they want and where they want. Here are 5 must before you give up your day job.
1. Create 30% more monthly cash flow then you need - Surprises happen. Vacancy, maintenance and other expenses arise and you are not guaranteed optimal cash flow on every property every month. Make sure you have 30% more than what you need as a buffer for surprises.
2. 1-2 years of reserves - Depending on how conservative you are, make sure you have 1-2 years of expenses in reserves so you can live comfortably and don't have to stress over your cash flow and finances.
3. Asset protection - Hold your properties in entities like a corporation, trust or LLC. This will protect your other properties, businesses and personal assets in the unfortunate case you get sued and lose.
4. Strategy to improve your net worth and cash flow - What are the next steps and initiatives to take your business, cash flow and net worth to the next level. Continue to learn, educate yourself and master new strategies or asset classes. Continuous improvement.
5. What to do with your time - I personally get stir crazy after 2 days of doing nothing. Exercise, learn and pursue other goals and interests. Get more involved with your family, community, volunteer, give back and fill your time with when you are not working. A routine of positive things can lead to achieving many goals and tremendous happiness.
Real Return Real Estate™ for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site http://www.realreturnrealestate.com for all the helpful resources.
http://www.realreturnrealestate.com
Flipping House: Strategies to make money in today's market with No Money and No Credit!
Think now is a bad time to buy real estate? Think again. The media reports that the economy is in the dump. People are earning less, and thousands are out of work. The one thing they aren’t reporting is how thousands of everyday people have found a way to not only thrive in the current economy, but even get wealthy! And the most unbelievable thing is that they are doing it by reading one book. It’s the fastest selling book in America right now!
What book are they reading? Find out here.
If you have ever been fooled by one of those get rich quick schemes, you’re not alone! It’s pretty common to wish for overnight riches, most of us imagine it at one time or another. But short of winning the lottery, or marrying well, it never happens, but that doesn’t mean people don’t get rich quick!
In fact, what if I told you there was a new bestselling book that showed you, step-by-step how you could do it over the span of only 18 months? Does that sound unrealistic to you? Well before you answer, check it out to see the results that real people just like you are experiencing, and make your own judgment.
If you have been looking for a business opportunity that is easy to get started, has little to no risk and will deliver big profits in a hurry, you have to read this new book that gives you the fool proof recipe. No money needed to start, work as much or as little as you want, and make thousands in as little as 14 days from now? Sound crazy? Maybe so, but hundreds of people a week are taking advantage of a little known method that is allowing them to bring in “crazy” profits. Frankly, it would be crazy for you not to take a look.
- Complete step by step guide to go from zero to profits, with no risk and no money, in 30 days or less.
- You don’t need cash, and you don’t need credit –There is a strategy for you.
- Looking to make real estate part of your investment or retirement portfolio? It's laid out like a road map.
- Proven recipes to bring in more money in this down economy, than when the economy was stable!
On top of all that, throw in a bunch of great bonuses from some of the planet's brightest people like David Bach, Sir Richard Branson, Montel Williams, Anthony Robbins and many more…ALL BACKED by a no-strings money guarantee. Imagine it! A book that is guaranteed to show you how to make money, in real estate, RIGHT NOW!
You have nothing to lose and everything to gain.
Click Here For America's #1 Real Estate Investing Book!
Thursday, July 8, 2010
Sunday, June 27, 2010
Flipping House: Hard Money Lenders
Hard money is not always a bad thing. In real estate investing hard money lenders can be your best friend. One example of how hard money can work to your advantage for flipping a house is that they look at the value of the deal, not your credit score, or down payment. If you find a house that is worth $100,000 and can purchase it for $60,000 most hard money lenders will loan you up to 70% of what the property is worth. This would leave you $10,000 for repairs, fixing up, or cash in your pocket. You will have to pay points for the loan,usually 1-5, and you can negotiate to defer the points to the end of the loan. A point is one percent of the total loan. So in this example you can borrow $70,000 for a $100,000 house. If your flipping the house for $100,000 you will make $40,000 minus your points, attorney fees, and your rehab costs.
Wednesday, June 2, 2010
How to get start in Real Estate Investing?
I have been doing research about real estate investing and have a few questions about the process. Is the first thing I need a broker, banker, or a seller? Do I need to see mortgage company or can I just take a loan out form the bank? What kind of down payment do you need? Does anyone have any information about tax break, cuts, or property taxes regarding real estate. Any additional information would be helpful, I'm still in a learning phase.
Thank You
* 3 months ago
Best Answer - Chosen by Voters
First thing you need is a plan. You ask a lot of good questions, and as Eddie G said, a real estate book may be your best bet. Once you are done with that, meet with an financial planner and an accountant. This way you have a better idea of what is your strategy and what direction you want to go in.
Are you looking at long term residual income? If so are you looking at Commercial, residential, land opportunities, easement options? Do you want to flip properties for short term capital growth? Do you want to start off on your own home and growth from there? Know the tax advantages of all as well as exit strategies.
You can go to your own bank for a loan, but you probably want to work with a lender that knows what they are doing and can help direct you. You also want to make sure you get the best rate/service for the price. Banks have less options then mortgage lenders.
Down payment depends on what you buy: Land and commercial can be difficult to impossible to get now: the were requiring about 30-50% down. Residential properties that are rental require a larger % down then residential that is owner occupied. Owner occupied can be al low as 3.5% for FHA loans (be prepared for closing costs so up to 5%), or for conventional loans where you don't have to pay for PMI (private mortgage insurance) it is usally 20% but can be 25% is you live in an area that is considered trending down.
As you can see, from the few questions I answered, you have a lot of options. Read some more and make your plan.
Good luck!
Source(s):
Investor and realtor
* 3 months ago
Thank You
* 3 months ago
Best Answer - Chosen by Voters
First thing you need is a plan. You ask a lot of good questions, and as Eddie G said, a real estate book may be your best bet. Once you are done with that, meet with an financial planner and an accountant. This way you have a better idea of what is your strategy and what direction you want to go in.
Are you looking at long term residual income? If so are you looking at Commercial, residential, land opportunities, easement options? Do you want to flip properties for short term capital growth? Do you want to start off on your own home and growth from there? Know the tax advantages of all as well as exit strategies.
You can go to your own bank for a loan, but you probably want to work with a lender that knows what they are doing and can help direct you. You also want to make sure you get the best rate/service for the price. Banks have less options then mortgage lenders.
Down payment depends on what you buy: Land and commercial can be difficult to impossible to get now: the were requiring about 30-50% down. Residential properties that are rental require a larger % down then residential that is owner occupied. Owner occupied can be al low as 3.5% for FHA loans (be prepared for closing costs so up to 5%), or for conventional loans where you don't have to pay for PMI (private mortgage insurance) it is usally 20% but can be 25% is you live in an area that is considered trending down.
As you can see, from the few questions I answered, you have a lot of options. Read some more and make your plan.
Good luck!
Source(s):
Investor and realtor
* 3 months ago
Sunday, May 30, 2010
The Intelligent Investor Can Succeed in Flipping Homes By Stefan Hyross
Real estate investors quickly learn that selling houses is very much like putting money in the stock market, you have to be certain you don't get into a situation which ends up losing your funds. A popular way to earn a good amount of cash on property holdings, referred to as real estate flipping, can possibly produce a monetary tragedy if it fails start returning money on the investment because its market value drops too quickly. In fact, real estate flipping can morph into a terrible situation if you are unable to reliably sustain a high rate of return on the properties by selling them fast for a substantial gain and fail to secure future funds from the financial institutions.
Homes that have 'issues' are usually ripe for real estate flipping. If the home being sold needs repairs before it can fetch a decent price on the sale, it is frequently offered at a very tempting price. Looking in places such as Toronto you could be paying attention to phrases in the Toronto MLS listings information, like fixer-upper to find these kinds of homes. These homes are perfect for property investors who have the skills to deal with the repairs themselves so the cost of improvements does not chip away at their end profits.
As the number of power of sales keeps on rising, real estate investors use these 'motivated sellers' as another method of quickly flipping a home for profit. As a policy, these kinds of houses do not need that much renovation as a distressed property, but it is key to have a purchaser in the background in advance of purchase to assure that the venture does not become a hinderance to your holdings if it sits on the market too long. If a distressed property is speedily repaired and put up for sale for a profit, however, this may be very impressive to lending institutions who will be more willing to granting new funds in the future.
For the more daring, the area real estate auction can present superb opportunities for picking up homes at a reduced price. Amateurs need to be watch out for internet real estate auction sites, the wide open makeup of the bidding can elevate prices up very fast. But there is also the potential of finding an exceptional non-local house through an online auction. You may not have initially thought about houses for sale in Milton, for example, but it is possible neither has anyone else.
Naturally, any savvy real estate investor will not consign to flipping any property that is going to put a strain on their resources, and more often than not a short-term mortgage is the best way to insure that the purchase has a fall back. Be aware that the interest rates on such mortgages are very high, so it is only a feasible choice if you have buyers waiting who are ready to make a quick transaction. It might cost extra but hiring a realtor for their real estate agent marketing plans could make you more money than the commission you will need to pay them.
Of course, all real estate is a gamble to a level, but property flipping creates the biggest chance for putting money in a money pit instead of a gold mine. Intelligent investors only deal with properties that have a compelling record of economic returns for their previous owners. It is important to take the time to do thorough analysis on any house that is being bought to flip to find out if it has any likelihood to turn into an financial calamity.
Stefan Hyross follows and writes about various real estate issues and topics such as real estate agent marketing and administers several websites where you can search for Toronto MLS Listings as well as hunt for houses for sale in Milton and other areas.
Article Source: http://EzineArticles.com/?expert=Stefan_Hyross
Homes that have 'issues' are usually ripe for real estate flipping. If the home being sold needs repairs before it can fetch a decent price on the sale, it is frequently offered at a very tempting price. Looking in places such as Toronto you could be paying attention to phrases in the Toronto MLS listings information, like fixer-upper to find these kinds of homes. These homes are perfect for property investors who have the skills to deal with the repairs themselves so the cost of improvements does not chip away at their end profits.
As the number of power of sales keeps on rising, real estate investors use these 'motivated sellers' as another method of quickly flipping a home for profit. As a policy, these kinds of houses do not need that much renovation as a distressed property, but it is key to have a purchaser in the background in advance of purchase to assure that the venture does not become a hinderance to your holdings if it sits on the market too long. If a distressed property is speedily repaired and put up for sale for a profit, however, this may be very impressive to lending institutions who will be more willing to granting new funds in the future.
For the more daring, the area real estate auction can present superb opportunities for picking up homes at a reduced price. Amateurs need to be watch out for internet real estate auction sites, the wide open makeup of the bidding can elevate prices up very fast. But there is also the potential of finding an exceptional non-local house through an online auction. You may not have initially thought about houses for sale in Milton, for example, but it is possible neither has anyone else.
Naturally, any savvy real estate investor will not consign to flipping any property that is going to put a strain on their resources, and more often than not a short-term mortgage is the best way to insure that the purchase has a fall back. Be aware that the interest rates on such mortgages are very high, so it is only a feasible choice if you have buyers waiting who are ready to make a quick transaction. It might cost extra but hiring a realtor for their real estate agent marketing plans could make you more money than the commission you will need to pay them.
Of course, all real estate is a gamble to a level, but property flipping creates the biggest chance for putting money in a money pit instead of a gold mine. Intelligent investors only deal with properties that have a compelling record of economic returns for their previous owners. It is important to take the time to do thorough analysis on any house that is being bought to flip to find out if it has any likelihood to turn into an financial calamity.
Stefan Hyross follows and writes about various real estate issues and topics such as real estate agent marketing and administers several websites where you can search for Toronto MLS Listings as well as hunt for houses for sale in Milton and other areas.
Article Source: http://EzineArticles.com/?expert=Stefan_Hyross
Monday, May 24, 2010
Flipping House with Assignments
With the highest unemployment since 1982 and the staggering rate that foreclosures are increasing, flipping a house in today's market can seem like a scary endeavor. Unless you are a savvy real estate investor you would not be thinking about flipping a house or even buying one for that matter. Or would you? There are many strategies to flipping houses with no money and no credit. There are even options that don't require you to put 20% down, fix up a home, and put it back on the market. This article will discuss one of these options, assignments, which some investors call wholesaling.
Assignments, in the simplest terms is finding a property, locking it down with a contract, and then finding a buyer for the property which you can assign the contract to. The first step is, generally, finding a property at a discount, which due to the economy are currently everywhere. Then you must lock up the property with a contract. The final step is to assign the contract for that property to a buyer for a fee.
Here is an example: You find a house that has a fair market value of $100,000. Through real estate investing techniques and strategies you can learn how to find this property for $60,000. You then lock up the deal and assign the contract to a buyer for $70,000 and you make $10,000 in the middle with no money and no credit. Simple as that.
The reason that this works is that there are investors that do not have the time to look for deals and would rather pay someone to do the footwork for them. So in the example above, the seller is happy because they just sold their property, you made $10,000, and the buyer is happy because they bought a $100,000 dollar property for $70,000, having instant equity of 30%. All this is done with no money out of your pocket. I used a $100,000 for an easy example. Obviously the numbers will be different in each case, you may only make $3,000 to $5,000 on some deals or $50,000 on another, you get the idea. It all depends on how you set up each deal.
To sum it all up; you find a motivated seller and lock up the property with a contract and an assignment agreement. You then assign the contract to the buyer, receive your check at closing and move on to the next deal. To find more in depth information on assignments, how to build buyers lists, and real estate investing techniques/strategies join your local real estate investment club. There is a wealth of knowledge there. Also, network with real estate professionals (real estate agents, mortgage brokers, bankers, real estate attorneys, etc) and read real estate investing books as much as you can.
Assignments, in the simplest terms is finding a property, locking it down with a contract, and then finding a buyer for the property which you can assign the contract to. The first step is, generally, finding a property at a discount, which due to the economy are currently everywhere. Then you must lock up the property with a contract. The final step is to assign the contract for that property to a buyer for a fee.
Here is an example: You find a house that has a fair market value of $100,000. Through real estate investing techniques and strategies you can learn how to find this property for $60,000. You then lock up the deal and assign the contract to a buyer for $70,000 and you make $10,000 in the middle with no money and no credit. Simple as that.
The reason that this works is that there are investors that do not have the time to look for deals and would rather pay someone to do the footwork for them. So in the example above, the seller is happy because they just sold their property, you made $10,000, and the buyer is happy because they bought a $100,000 dollar property for $70,000, having instant equity of 30%. All this is done with no money out of your pocket. I used a $100,000 for an easy example. Obviously the numbers will be different in each case, you may only make $3,000 to $5,000 on some deals or $50,000 on another, you get the idea. It all depends on how you set up each deal.
To sum it all up; you find a motivated seller and lock up the property with a contract and an assignment agreement. You then assign the contract to the buyer, receive your check at closing and move on to the next deal. To find more in depth information on assignments, how to build buyers lists, and real estate investing techniques/strategies join your local real estate investment club. There is a wealth of knowledge there. Also, network with real estate professionals (real estate agents, mortgage brokers, bankers, real estate attorneys, etc) and read real estate investing books as much as you can.
Subscribe to:
Posts (Atom)
