| |
| |
|
Real Estate Information |
|
|
|
Investment Real Estate Done Right -- Your Quickest and Safest Path to Wealth
In investment real estate the quickest way to wealth is through owner financing, or lease optioning. So, let's take a look at one model transaction, involving the purchase and sale of two properties on lease-option contracts so you an apply it to your own investment real estate system. Assume you buy an investment property for $50,000 to $60,000, and you sell it on a lease-option contract for $80,000. You receive $4,000 as a down payment from the buyer, and you will get the remainder of the balance in 12 months. You've created a note for the remaining $76,000 that pays you $570 monthly (interest-only payments of 9%). This gives you nearly $7,000 more in interest payments, if you keep this property for a year. You then find a rehab property in an inexpensive neighborhood that you can get for $35,000. You offer a 10% down payment of $3,500, promising to pay of the loan in 13 months or less. Now, you can use the $4,000 from the first property, so you don't have to come up with your own money for the down payment on your second property. Offer to pay 8% on the remaining $31,500. This is a monthly payment of $231. Be sure your agreement allows you to defer your first payment for 30-60 days. Now, if you can't sell the house in 13 months (this certainly won't be a problem, though), you'll have the cash from the first house you bought, when the $76,000 balloon payment comes due in 12 months, so you won't lose anything or have to get your own financing, when you have to pay off your second home in 13 months. You see, you always cover yourself, when using this approach. If you purchase smart on this second house, you should be able to put a few thousand dollars into it and re-sell it in a few short months. Be sure you make a profit well above your $35,000 purchase price and anything you have put into it. Again, if you buy smart, after a few grand of rehabbing, you should be able to sell the property for $45,000 to $50,000. You wind up making roughly $30,000 to $35,000 in a year or less on the sale of your first two properties. This doesn't include the extra thousands of dollars in interest you've made on the payments you're collecting. Learn more about this strategy at www.winningthemortgagegame.com. Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
The Echo Boomers - The Next Big Consumers The Echo Boomers or Generation Y currently make up about one third of the US Population. Many of the Echo Boomers are starting to reach an age where they want and need things like, Houses, Cars, Insurance. How Do I Fix Up a Home to Sell? The first thing you need to do is stop thinking of your home as "home" and start thinking about it as a commodity that you want to sell. To be a successful seller you must detach yourself emotionally from your home and be brutally honest about how it should look in order to sell. The Secret Jewel in the Mediterranean Crown Since the Northern Cypriots famously voted 'yes' to the UN backed Annan plan for the peaceful reunification of Cyprus in 2004 the world has awoken to the secret and hidden beauty of this untouched jewel in the Mediterranean crown. Those open-minded and individual thinkers seeking elegant living, unrivalled Mediterranean-region investment property opportunities or their own hideaway are today embracing Northern Cyprus. Buying Rental Property - Avoid Sellers Tricks Be careful when buying rental property. We stayed at a motel for a week one winter. Successful Real Estate Investing One of the best roads to wealth in America has always been the acclimation and development of good, solid, income-producing real estate. Real estate ownership is one of the best ways to achieve financial independence for the average person. Directionals Move Properties One of the most effective and frequently overlooked methods of filling or selling a property is the use of directional arrow signs. I'm guilty of it myself, although usually I'm merely lazy instead of overlooking this great marketing technique. Real Estate Investment - Why it is Big Business? When examining the different asset classes, real estate is generally far less volatile than shares and real estate tends to be the haven that investors flock to when other asset classes are suffering.It is true to say that investment properties can have many benefits in terms of building long-term wealth, but we must never forget that this wealth is not guaranteed!Following the global real estate boom of the late 1980's many investors learnt this hard lesson when they found their properties were worth far less than they had actually paid for them and the bottom seemingly fell out of the over-inflated market. The Benefits of A Real Estate Agent 101 Buying and selling property is not as easy as you may think. There are many things that you have to consider when purchasing a home, or when putting a home up for sale. Investment Property Part I: How Not to Become a Slumlord After riding the ups and downs of the stock market roller coaster for a while, an increasing number of investors are looking into property investment as a more stable alternative. With hot markets in many parts of the United States, the time may be ripe for you to get into this potentially lucrative trade. Curb Appeal First impressions do make a difference when selling your home. Oftentimes, before making the phone call to schedule an appointment, a homebuyer will drive by your home to determine if they may be further interested. A Beginners Guide to Flipping Houses If you're dreaming of making money in real estate, it's time to stop dreaming and get to work, because making money in real estate isn't just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to "flip" houses. Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership Condo hotels are one of the hottest products in today's real estate market. New properties are cropping up in different parts of the country and new buyers are entering the market daily. The Many Benefits Of Lease Purchasing Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all. Buying a House in Scotland Buying a house in Scotland is slightly different from buying a house in other parts of the UK. It's not particularly complicated, and buying north of the border can often be quicker, but for those relocating from England and Wales there are a number of points you need to bear in mind. How to Own a Dream Home in Spain Every year hundreds of thousands of foreign visitors travel to Spain to delight in the fantastic weather, stunning natural landscapes, excellent entertainment options and superb Mediterranean beaches. Many of these people dream of one day owning their own property in Spain, in fact Spain is now one of the most desirable second home and retirement destinations in the world. How Do I Implement The Lease Purchase Plan? Well, as we have discussed in previous newsletters first you have to set up goals for yourself, both long term and short term. Don't forget these goals define how your business is run. Real Estate Bankruptcy Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the real estate bankruptcy is a two party dispute between mortgagee and mortgagor. Buying a Home - Dealing With Lender Letters Most people who set out to buy a home, be it house, townhouse, condo, apartment, or mansion on a hill, know they need to have a lender letter in hand saying they are qualified for a loan. What most "civilians" (people not in the real estate business) don't realize is how much the value of a lender letter varies. Should You Allow Buyer To Rent During Closing? It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.You're a bad guy if you refuse and often in hot water of you agree. Log Homes - What is the Log-Home Lifestyle? Typical log home company advertisements in popular log home magazines talk about the "log home lifestyle" or "it's not just a home, it's a lifestyle." What does this mean? What is "the" log home lifestyle?It's often difficult to discuss the particulars of log home living without also talking about where the log home is located.
|
| home | site map |
| © 2006 |
