Posts Tagged ‘investor’

Foreclosure Investing encompasses a few different types of Real Estate investing. Foreclosure Investing can be very profitable and a sure fire way to become financially independent. Foreclosure Investing can also be a very slippery slope and can lead to financial ruin if done improperly.

Buying foreclosed property at an Auction is one type of Foreclosure Investing. At this point in the foreclosure process the property has already been foreclosed on by the lender and is now up for auction to the highest bidder. An investor would find out the day, time, and place of the auction and come prepared to bid on a certain property or properties. The goal would be to buy a property at a substantial discount so that the investor could re-sell for a profit, or use the property as a lease/rental investment property. This can be a great way to buy real estate at a discount but there are many draw backs to purchasing property this way. There are title concerns, insurance concerns, and there is also the concern that an investor can get caught up in a bidding war and end up paying more for the property than what it is worth. The investor would then end up with negative value upon re-sale, or not be able to collect enough in lease/rent to make the property a profitable investment.

Real Estate Owned or R.E.O. investing is another type of Foreclosure Investing. An R.E.O. is a property that has been foreclosed on by the lender but has not as yet been put up for auction. When certain market conditions arise lenders end up with a surplus of R.E.O’s on their books. The lenders need to get these R.E.O’s off their books and are usually willing to deal with investors in this scenario. This is a perfect time for an investor to invest in R.E.O’s. To do so the investor would need to contact the lender directly to negotiate a deal. The investor would be looking to by properties in As-Is condition that are being sold below market value. Often the lender will even offer financing to the investor on these properties. With the proper knowledge and investor can make a killing purchasing R.E.O’s. An investor can also end up losing money if he/she does not get the property at a low enough discount and repairs, closing costs, etc. end up costing more than planed. This type of Foreclosure Investing is a lot less risky then buying at the auction however there are several market conditions that have to be in flux in order to do this type of investing.

Pre-Foreclosure Investing is a third type of Foreclosure Investing. This type of investing can be done under any type of market conditions and can be a great way for and investor provide a service for the people who are about to lose their home. At this point in the foreclosure process the property owner has received a default notice, warning that the foreclosure process has been started. An investor that has access to these default notices would search through them looking for properties that still have some equity. Then the investor would contact the owners of the properties directly to negotiate a deal to purchase the property at a discount before it is foreclosed on. Once the investor has the property in his/her name, the investor would then resell the property for a profit or hold it as an investment property. The foreclosure process is different from state to state but the opportunity to help the owners out of this horrible situation and make a profit doing so is always there. Purchasing Pre-Foreclosure properties can be a great way to give an investor financial stability. Investors can also find themselves in a whole lot of financial and legal trouble if they don’t follow the state laws, use the proper forms, and treat the property owners poorly.

There is a ton of information on Foreclosure Investing. Unfortunately there are far too many Foreclosure Investment experts or so called “Guru’s” that practice unethical methods of Foreclosure Investing that have no regard for the property owners in trouble. Foreclosure Investing can be done Legally and Ethically if an investor has the proper knowledge and tools. If done properly the investor can be seen as a White Knight to property owners in foreclosure and end up making a substantial income in the process.

Don’t get “SCAMMED” by some Foreclosure Expert “Guru”! Learn how to become a “White Knight” Foreclosure Investor! Read the Foreclosure Investment Report for more information on Ethical Foreclosure Investing. Follow this link:

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Author: John F Langford
Article Source: EzineArticles.com
Pressure cooker

Most people are intimidated by the prospect of acquiring investment properties. This fear often stems from the fact that potential investors are so preoccupied with what they perceive as the proper time to buy that they pass up opportunities along the way. Some people on the other hand are unsure as to how to choose the best property to invest in. Buying real estate specifically as an investment property guarantees several benefits that are superior to other investments like stocks.

Investment properties are a source of reliable and steadily increasing income. Rent and lease income can be a reliable and more convenient source of income for a wide variety of owners. Moreover, the value of the property itself appreciates through time. With the population increasing yearly, the demand for real estate properties will remain a constant even in the years to come.

The crucial point is choosing which of innumerable options would constitute a good investment property. The first characteristic of a good investment would be the intrinsic value of the property. Ideally, the investment property is bought at a price that is lower than the real intrinsic value so that upon purchase, a profit has already been made.

A buyer should ask himself how long he plans to keep the property. If the intention is long term, he will need to consider expenses relative to the investment property such as repairs, maintenance and taxes. Investors should choose properties that offer income greater than the expense needed for maintenance.

The next major consideration for any investment property is the risk factor. It would do no good to drain the investor of his assets by investing in a risky property. It is also healthy to consider having an exit strategy. This means studying all the possibilities, even those that can happen when things don’t go according to plan.

Finally, review the characteristics of the potential investment property. The location of the property is the primary characteristic that will determine its feasibility and profitability as an investment property. The focus should be on a steadily increasing income and a positive outcome. A common pitfall for some investors is the temptation to be greedy in having a speedy and unrealistic return. By concentrating on a more realistic expectation, buyers are less likely to be attracted to unreliable investment options.

Especially for long term plans, it would also be beneficial for the buyer to avoid the lure of trendy purchases. Just because the rest of the herd is snapping up a particular investment, it does not make that particular investment more reliable. A buyer should rely on rational study instead of emotional judgment in making such an important selection.

All in all, a good investment property is characterized by its suitability to the financial capability of the buyer as well as his investment time frame. It is also characterized by the present and future income to be generated, as well as its suitability to the future goals of the buyer.

Sunil Sharma writes on various Real Estate topics including Investment Properties. Learn more about Zero Money Down Condo Investments in our Real Estate Investment Alliance site Today. For more details visit http://www.reinalliance.com

Author: Sunil V Sharma
Article Source: EzineArticles.com
Electric Pressure Cooker

There are a lot of people who would like to own property in a European Country, but do they ever consider Bulgaria as a place to invest their time and money. Bulgaria is a country that is developing quickly while retaining its natural integrity. There are a million reasons to invest in Bulgarian real estate, but what an investor needs to worry about is the top six reasons to invest.

1. Bulgaria is a beautiful country. When you invest in Bulgaria you are also investing in clean, pure air, a great coastline on the Black Sea, very little industrial sites, forests, mountains, valleys, pure water, and natural products like crops grown in Bulgaria. When you invest in Bulgaria you are investing in your own health. You are investing in a chance to see nature in her finest.

2. Bulgaria has a very well priced real estate market. It is said that you will find the best property prices out of all of Europe in Bulgaria. Yes, some of the real estate prices in the big cities, like Sofia the capitol of Bulgaria, will be higher than less populated areas of Bulgaria, but, you will still find the most pleasing prices on real estate in Bulgaria. Plus, the Bulgarian real estate market is predicted to continue to rise in the next years, making Bulgaria an even hotter real estate market place. The more the real estate market rises, the more money you may get from your investments.

3. Bulgaria’s weather is beautiful though out the year. This makes Bulgaria a great place to be year round, in turn, giving plenty of rental opportunities for your real estate investments. Bulgaria has an average of 150 days of sunshine in a year and the summer’s temperature usually stays around 26 degrees Celsius. Beautiful weather makes for a beautiful investment.

4. Bulgaria is the fastest growing holiday destination for many people through out the world. This means that if you were to invest in real estate there you would be getting a possibly high rental rate from holiday renters in return. Plus, when you consider the cost of living in with investing, if you choose to live in your investment, then the costs of living are considerably lower than all of the other European countries. Once again you would be pocketing money by investing in Bulgarian real estate.

5. This one really does not need an explanation; the Bulgarian government is politically stable and Bulgaria has a low crime rate. This just means that your investment is safe in Bulgaria and you can go to Bulgaria and make use of your investments personally with out fear..

6. On top of only being a couple hours flight to the nearby countries, Bulgaria is full of resorts. Bulgaria has numerous summer and ski resorts. This insures that tourists will be coming to Bulgaria allowing a lot of rental business for your investments. Plus, your investments allow Bulgaria to develop even more, in turn pulling in even more tourists. It is a never ending circle.

posted by http://www.bestbgproperties.com Real estate agency selling properties in bulgaria

Author: Zhelyazko Georgiev
Article Source: EzineArticles.com
US State tax list

If you’ve ever taken out a mortgage with a bank then maybe you’ve experienced this: about 6-8 weeks after closing you receive a letter from a totally different lender who now has control of your loan and you are to send the monthly payments to them.

Well the original bank sold your mortgage or real estate note for cash to another financial institution that wanted a long-term cash flow investment. If you have “owner financed” the sale of your house with the buyer you can do the same thing. Sell your deed of trust or real estate note for cash to an investor who is looking for a long-term cash flow. There are lots of different names for a note: Deed of Trust, Contract For Deed, Mortgage, Loan, IOU, Promissory Note and others. For simplicity sake I’m going to use the term note.

Let’s say you have $80 in one hand and $100 in the other and I said you could keep only one. Well you’d keep the $100 of course but what if I told you you could have that $100 but it will be paid out at $1 a month over the next 8 years but you can have the $80 right now. Well that changes everything.

If you looking to purchase something really special for your family or to pay off some high-interest, nagging debts; maybe you have another promising investment opportunity, or you simply prefer not having the responsibilities and risks of carrying a Note. I can help you sell that note for cash to a buyer looking for a long-term cash flow investment.

Due to the current economic crisis, the price an investor is willing to pay for your owner financed loan has never been higher! If you are interested in finding out how much an investor is willing to pay for your real estate note call or email me today for a free quote.

Here are some faq:

1. WHO BUYS NOTES?

There are various people and companies who like to invest in real estate notes instead of the stock market, commodities or apartment buildings. They could be a one-person operation, or an office of 4 or 5 people, or 20 people, or a big investment house of 100 people. I don’t put your note on a web site forum and hope somebody sees it or market to people right out of a “How To Get Rich Investing In Real Estate Notes Seminar”. I work with only reputable, long-term investors.

2. WHAT KIND OF NOTES ARE YOU LOOKING FOR?

I can help you find an investor for various kinds of  Real Estate Notes:

    o  Single or in portfolios.

    o  Single Family Residential

    o  Duplex, Triplex, Fourplex

    o  Apartments

    o  Income Property

    o  Improved Land Contracts

    o  Recreational & Resorts

    o  Commercial Land Contracts

    o  Farm & Ranches

    o  Condos

    o  Vacant Land

    o  Bulk REO (Real Estate Owned) and real estate property portfolios

    o  Bulk mortgage note portfolios

3. WHAT IF THE HOME BUYER IS BEHIND IN PAYMENTS?

If you have a delinquent mortgage note I can help you. There are investors who will purchase notes that are behind in payments. If you are frustrated and not getting your monthly payments and just want to be done with the whole thing, I can help you find an investor who will purchase that delinquent note. This includes semi-performing (buyers are over 30 days late with payment) and non-performing (buyers are over 3 months behind in payments) mortgage notes. Get rid of that headache note and let someone else deal with it.

4. HOW MUCH IS THIS GOING TO COST ME?

There is no charge to you, the note holder ever. Getting a quote from an investor is free with no obligation to sell your note and the entire process is completely confidential. The borrower until the transaction is complete. The investor pays all broker fees.

5. HOW MUCH WILL I GET FOR MY NOTE?

This unfortunately I can’t answer, as there are too many variables involved. Each transaction is unique so an investor looks at several key factors for pricing. These include the type of property and location, down payment, equity, the buyer’s credit, how long the buyer has been paying you, and the terms of your note like interest and monthly payment amount. All that goes into their risk assessment and they make their offer based on that. Having said that though an average note will demand anywhere from 80 to 93 cents on the dollar depending on those factors.

6. HOW LONG WILL IT TAKE BEFORE I GET MY MONEY?

All deals vary, but normal closing time is 2 to 4 weeks once the investor starts their due-diligence process (inspection, appraisal, credit check, etc).

7. I JUST NEED SOME CASH NOW BUT I LIKE HAVING THE MONTHLY CASH FLOW.

There are a couple of ways to get creative:

Partial Purchase

A great option for note sellers because of it’s extreme flexibility and because in many cases it is possible to receive MORE MONEY than the original selling price. If you need cash right now but want to keep your note for the cash flow investment you can structure a deal so that you sell just a portion of your monthly payments for a certain amount of cash.

Let’s say that you sold your house for $250,000, the buyer gave you $25,000 as a down payment, and you now have a $225,000 note at 7% interest for the next 15 years. You want the monthly income but are in need of $50,000 cash right away. An investor could give you that $50,000 in exchange for buying “x” number of monthly payments, after which the note reverts back to you for the remainder of the term.

Split Partial Balloon

If your note has a certain amount of payments then a balloon payment at a certain date you can sell the payments leading up to the balloon and a portion of the balloon when it comes due. You get a lump sum of cash at closing and then receive a portion of the balloon payment when it gets paid off.

8. I HEARD I SHOULD HOLD ONTO MY NOTE FOR A NUMBER OF YEARS TO GET A BETTER PRICE.

This is called “seasoning” the note. The reason for waiting is that you are hoping to increase the equity in the house, which will help the note command a higher price. While this could happen other variables might decrease the price of the note the longer you wait.

It’s possible that maybe the property might devalue in price. What if the homeowners rack up a lot of credit card debt buying appliances, furniture, landscaping or remodeling and their credit score goes down? What if the homeowner loses their job and they stop making payments?

An investor looks at many things when assessing risk on a note and how old the note is is just one of them. A 3-year-old note with a bad credit score might be priced less than a 3-month-old note with a great credit score all other things being equal. Every note is different. Brand new notes and 20-year-old notes are sold everyday.

9. CAN I GET CASH AS SOON AS I CREATE THE NOTE?

Yes this is called a simultaneous closing, where a few days after the close of the house with the buyer you receive a check for the note. If you’re going to owner finance your home and you know you want to sell the note this is a great way of doing it because the investor is there for the initial process and you don’t have to start over again 6 months later with another appraisal, inspection, credit check, etc.

10. HOW MUCH DOES THE NOTE HAVE TO BE FOR?

The minimum is around $100,000 if it’s under that then it’s really not worth it for the investor. So a note could be for $100,000, $250,000, $500,000, $800,000,  $5 million and everything in between. There are all different kinds of investors looking for all different kinds of note amounts.

11. CAN I SELL MY 2ND LIEN NOTE?  

If you have a 2nd lien, where there is a bank or another investor with a more senior lien

against the property, you may be able to sell the note, but the price that you receive won’t be nearly as high. You generally won’t be able to sell those types of notes at any sort of decent price unless the buyer has put in at least 30% of his own money as a down payment or in built-up equity and has fantastic credit. Unfortunately investors just aren’t interested in 2nd lien notes or mortgages right now.

12. IF I OWNER FINANCE WON’T I ACTIVATE THE DUE-ON-SALE CLAUSE IN MY MORTGAGE. AND IF I’M ONLY GETTING A SMALL DOWN PAYMENT HOW WILL I PAY THE BANK LOAN BACK?

The Due-on-Sale Clause is a provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home. It is probably the most talked about, feared and misunderstood topic in real estate.

The link below is to a great article by real estate lawyer William Bronchick and will dispel any misunderstandings you may have about the due-on-sale and suggest a simple, yet effective strategy to get around it.

There is No Due on Sale Jail

If you’re thinking about owner financing your home you can also do a simultaneous closing, where a few days after the close of the house with the buyer you receive a check for the note. If you’re going to owner finance your home and you know you want to sell the note this is a great way of doing it because the investor is there for the process and you don’t have to start over again 6 months later with another appraisal, inspection, credit check, etc.

13. WILL THE HOME OWNERS HAVE TO REFINANCE?

When an investor purchases your note, all terms remain the same.  The only thing that changes is where they send the payment. If fact the borrowers are not contacted until the transaction is complete.  

14. HOW DOES THE NOTE SELLING PROCESS WORK?

You’re interested in finding out about to selling your note.  Give me a call or email and I’ll get some information about the property and note from you. We can do it over the phone or I can email or fax you the form. It’s an easy 2-page worksheet you can fill out in about 10 minutes. It asks for the loan balance, interest rate, length of loan, and basic information about the property. Then with the information you gave me I look for an investor who is interested in buying your note.

If I find an investor who is interested they take 2 or 3 days to crunch the numbers, assess their risk and see if it’s a good investment for them. If they are interested they make what is called a soft quote, which is their best offer before having reviewed any supporting documentation, such as the payee’s credit report and property appraisal. The quote will state something to the effect: “subject to review of credit – assumes good credit” but pricing should not change that much unless the property value comes in low or the homeowner has a low credit score or subsequent documentation does not support the information provided on the worksheet.

If you accept their offer you’ll draw up an option of purchase and sales agreement with the investor. The investor then starts their due-diligence on the property and the homeowners. Just like selling a house — home inspection, appraisal, credit checks, copies of legal documents, payment history and verification of current balance. This enables the note investor to verify the information provided, analyze the risk, and confirm their pricing of the note.

Once all the T’s are crossed and I’s dotted and contracts signed the investor takes control of the note and the title company sends you a check.

Craig Meriwether is owner of Kula Investments, a company founded you help you get top dollar for you owner financed real estate loan. [http://www.ioubuyer.com]

For a more in depth discussion of owner financed loans please download my free ebook How To Owner Finance Your Home [http://www.ioubuyer.com]

Author: Craig Meriwether
Article Source: EzineArticles.com
Get my ex back

For decades people have been successfully investing in real estate and becoming millionaires. But what is it that makes real estate such a good investment? Why have so many people become rich from investing in real estate? What factors make it one of the best investments on the planet?

Is it a safe investment?
Real estate values rarely go down over time, even without major improvements to a property. If you just maintain a house over time its value will most likely go up. Just image or ask what your parents paid for their first house, it may easily be worth 10 time what it was bought for. Real estate is also one of the only investments that you can get insurance for. This greatly reduces the possibility of a major loss. In fact real estate is such a safe and great investment that banks will actually loan you money for it.

Borrowing money for investing
This could be the biggest reason real estate is such a great investment. Using the banks money will allow just about anyone to be an investor. Most transactions will require the investor to have some cash on hand, but an investor can typically borrow 80%-90% of the money needed to purchase investment property. Leveraging the banks money will just totally skyrocket your ability to invest. This just proves what a great investment real estate is.

Making money from renting
There are several ways to create wealth from renting out a property. Monthly cash-flow; renting your investment to a tenant will make you money month after month just from rental income. Over time you are able to charge more rent while your mortgage payments will remain the same. Property value will almost always go up and over time and all the while you are paying down on your investment increasing your equality over time. Renting property is safer than flipping and may take longer for you to build wealth.

Making money from flipping
Buying wholesale and then selling property at retail or market price is also a very popular way to invest. Finding houses to purchase wholesale may be fairly easy because a lot of homes need to get sold fast and the best way to sell fast is to reduce the price. It doesn’t take much to purchase a property $15,000 or more under it’s market value. Just a few flips a year part-time can make you more in one year than some full-time working salaries. Flipping can build wealth faster but is also riskier than renting.

Real estate is truly a one-of-a-kind investment and one of the best ways to acquire wealth anywhere in the world. Whether you flip or rent your investment, real estate will continue to make millionaires time and time again.

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Author: Kevin Kiene
Article Source: EzineArticles.com
Cellphone, mobile phone

With many of the worlds real estate markets are facing slower periods and bank interest rates starting to climb higher, the housing affordability for many hopeful home buyers is becoming further out of reach. This is especially true for people with spotty or no credit where they enjoy reliable income but can’t get past the first base of buying their own home through a bank or mortgage company.

Many real estate institutes around the world are starting to recognize that Rent To Buy systems are becoming a viable alternative for many. When we use the term Rent To Buy, it’s important to note that there are many variations to its meaning, so lets cover what the most typical meanings of this term covers.

1. It can mean that a motivated seller or investor makes the home available without the need to qualify for a normal bank loan. Normally this means that the seller will allow the tenant to purchase the home with regular principle and interest installments over a period of time, so that the tenant will become the owner over time.

2. It can mean that the owner is prepared to share some of the equity with the tenant in exchange for the tenant keeping the home in immaculate condition and they pay a higher rental income to the owner, in exchange for a share in the future equity of the home.

3. It can mean that the owner allows the tenant to pay a small down payment known as Option consideration and the tenant receives rental credit each week to build up their deposit to eventually buy the home they are renting.

While there are many other variations on the above three meanings, all of the above examples give a general overview of what the term Rent To Buy actually means.

So how do you find someone who is willing to give you a Rent To Buy Home?

The first thing you can do is look in your local paper in the classifieds section and look for advertisements that say “Rent To Buy” or “Owner Will Finance” or “Seller Finance No Bank Qualifying” or “Low Down Owner Finance”. If you find these advertisements, you will be sure to know that you have investors in your local area offering these Rent To Buy home buyer packages.

When you call these advertisements, the investor who placed the advertisements will want to know some information about you and your financial position. In some countries, the governments offer generous First Home Owner grants and this can be an important question for the investor, because it means they get more from you in terms of the size of the down payment. They will want to know what your credit rating is like, in order to know how long they would expect you to be in the deal with them. Some investors are motivated by short term deals, while others like longer term deals like five or more years.

Don’t be put off by the questions they will ask you. Be open and honest with all the questions, because unlike going through a bank to get a home loan, this investor will become like a bank to you if you end up purchasing a home through them. Trust is absolutely the most important thing you can establish up front.

Don’t be too concerned if your credit rating is not so hot. The important steps you need to take are getting into a deal that will provide you with some long term asset accumulation. You need to be careful at the same time, that you don’t let your emotions stand between you getting a fair deal and an unfair deal for you. Buying your own home is a very emotional process and needs to be done with extreme caution.

Renting to buy is one of the best ways to secure your own home. When you are buying without banks, your purchasing options increase enormously.

In the coming articles, we will discuss the important things you must do as the buyer to help protect your interests, without making the seller walk away from the deal.

Dallas Kelso is an expert when it comes to owning your own home, without needing a bank or mortgage broker. His Rent To Buy Homes [http://www.webuyhomes.com.au/we-buy-homes-buy-a-home-with-little-or-no-money-down.php] program make it simple. You will soon see how you too can have the benefits of renting while being able to eventually own the same home using their Rent To Buy Homes program.

Author: Dallas John Kelso
Article Source: EzineArticles.com
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