Investing Made Easy

I was speaking with a very successful businessman one day. This gentleman had made millions in construction. He was planning his escape from his current company and was looking for a business that would pay him an income that he did not have to work for on a daily basis. When I spoke with him, he was in the process of buying an apartment complex in the southern part of the United States. That was his solution. I was advising an elderly lady that I was talking with one day and asked her why she was contemplating getting into the multi-family real estate business having never been the owner of real estate in her life. “I am responsible for the care of my disabled daughter and I need to find a source of revenue that will pay her an income after I am long gone.” “And you think owning apartments is going to do that for you?” I asked. “Absolutely. All I have to do is hire a management company and they will take care of the property and send her a check every month.” “Hmmmmmmmm,” I thought. ...

It’s beginning to look a lot like 2011 will be a better year for the CRE industry and CRE investments than 2010 and 2009. That’s good news for an industry and a nation. According to the fourth quarter 2010 findings of the PwC Real Estate Investor Survey,  interest in secondary locations, Class-B properties, and value-added Class-A plays is heating up and that buyers are becoming more comfortable with taking on slightly more risk, suggesting that both investors and lenders are gaining more confidence in the overall performance of both the economy and the real estate industry. Although buyers are not rushing in droves to acquire noncore assets and offerings in secondary markets, riskier plays are enticing a growing number of investors as the market for trophy deals is becoming saturated with eager capital. Could the Tsunami we’ve been hearing about for the last 24 months or so actually be a reality in 2011? Who knows, but the fundamentals will continue to reign supreme as the survey not...

So here we are another New Year is upon us.  A time for most people to make New Year’s Resolutions.  Resolutions that few will actually keep.  They’ll stick to the diet for a few weeks at best, hit the gym for even less time, and many will actually give up smoking (for the 10th time). Besides the resolutions listed above, another very popular resolution is to stop being a slave for a paycheck, and to get a better job, or somehow make more money.  Most people decide they “want” to make more money, but very few actually devise a plan or even a means by which to accomplish this.  Yet, while they are basically clueless as to how they plan to make more money, they will constantly pick up the newspaper and see an article having to do with the real estate market.  They will turn on the TV and here on the news how the market is either going up, or going down.  Every day they will drive by countless homes for sale, never realizing that some of those are owned by small investors, who are gettin...

People have asked me in the past what the secret is to making a successful no money down offer to a potential buyer. My response is something to the effect of WOWWW, this does not mean I am Amazed at something instead it is my system to ensuring a house deal that requires no money down. The first W stands for When. Know when to make your offer to the seller. Find out when are they planning on selling if it is in the next few months the urgency will not be there and it probably will not be worth your time to pursue this seller. If on the other hand they are looking to sell right away then you will want to go ahead and act on this as it will be beneficial to you. Most people who are eager to sell are almost willing to take the first reasonable deal that comes across to them. The O is for Owe, you need to know how much do they owe on their mortgage. This factor will play very heavy in the decision you have to make as to what are you going to offer the seller. If the seller is free and ...

We have all seen the advertisements on television or the Internet. A person says that you can buy a house with poor credit and no money down. A lot of these ads are trying to sell you a system that they claim will work and even give you money at the closing. There is an old saying that says if it seems too good to be true then it probably is. So are these real estate investment programs that offer no money down and bad credit okay loans legitimate, or are they the latest scam? Most of these programs want money for their books and tapes. They claim that if you follow the easy instructions then you can become rich in no time by doing almost nothing. The truth is that these companies are making money off of you for giving you information that is already available at no cost. One of the ways to invest in real estate with no money down is to find a partner who is willing to supply the capital. The partnership can be an even split, a twenty eighty split, or any other breakdown that is agr...

1) Hard Money Loan (private investors) - "hey, I don't have money, let me use yours" Let's say you want to buy a home for $500,000 and the bank will give you a loan for 90%. So now you have a down payment of $50,000 (the other 10%). You can get a private money loan (as a junior loan, or second mortgage) that covers the $50,000 so that no money comes out of your pocket. How do you do this? You can talk to family and friends and offer them a higher percentage rate than they could make in other investments, or you can find businesses that specialize in giving out these loans. There are person-to-person loan businesses that are safe and secure, however, the interest rates may be pretty high. Once your investors see that you pay back your loan you begin to build a relationship and in the future you may be able to finance an entire property with private money. This method is great if you are planning to buy, fix up, and sell (i.e. "flip a house"). WARNING: if y...

The dreams of huge profits fill the minds of every new investor venturing into flipping houses. Many times they neglect to carefully plan their first project, and just jump right in. Flipping houses is a business, and like in any other business, you need to create your plan for success. By making a plan, you can make sure you cover some of this critical lists of 5 things you must do on every investment property. Step 1: Do get out the pen and paper, and start writing down all the aspects of your plan for this house. You are purchasing this home as a business project, you need to carefully plan each step of the project. What items you will need to accomplish, your timeline for each item, and the deadline for having the home ready for sale. Step 2: Do plan your budget, not only for the purchase, but for every detail of the entire project. Detail what renovations and repairs are necessary to make the home ready for sale. Remove your desires on how you would like the home to look if you...

1 Price - Before you even go to look at the property you need to make sure that the price is way below the market value of the real estate in that area otherwise you are wasting your time looking at properties that you cannot make any money on. So you need to make sure it is so far below the price of other house that you can fix it up, hold it, and pay fees and commission and still make a huge profit. 2. Foundation - I buy and sell real estate in Texas and foundation is a huge problem here, and it is the first thing I look at. If there is foundation damage you need to see how much this is going to cost to have fixed. Many times when I am looking at a property I can call my foundation guy and he will come out and give me a free quote on the spot. Foundation damage can drain a budget so until you are comfortable with you skills at judging the amount of foundation damage call a pro for a quote and then factor that in your budget. When looking on the outside and inside of the house you ...

Yes, it is possible to make money with zero out of pocket expense. I am as skeptical as the next person, and I know it's easy to get tired of reading all the ads for worthless programs that promise the moon but fail to deliver. I'm not selling anything and I have actually used this real estate investing technique to make money on several occasions. I found a single family home (for sale by owner) and worked out a cash price with the seller for $15,000. I signed an option to purchase agreement with the seller and told her I would contact her soon to schedule a closing. Within a few days, I located another investor looking for a cheap rental property; I signed a purchase agreement with him selling the house to him for $20,000. About thirty days later we all went to closing. We did a simultaneous closing. I did not have to bring any money to the table. The $20,000 went from my buyer through me to my seller minus my $5,000 difference. I had a total of two hours worth of work inv...

Everyone has heard a story or read about someone who bought a property without paying a single dime as a down payment. But how does this work? There are several "classic" methods commonly used to purchase real estate with no money down. There are an infinite variety of situations in a real estate transaction that could lead to a deal with no down payment. But for the sake of reality, I will focus on those that are most commonly seen in the current market. 1. Seller second - The buyer obtains a new first mortgage for most but not all of the total purchase price. The seller finances the rest. Purchase price: $100,000 Buyers loan: $90,000 (90% LTV) (new first mortgage) Sellers finances $10,000 (in the form of a new second mortgage) The buyer has borrowed 100% of the purchase price. Thus, you have100% financing, and no down payment was paid by buyer. This is not a difficult strategy to employ if the seller has enough equity, is willing to hold a second, and the first mortgage ...

When it comes to making money in the business of flipping houses and other real estate investments you will find all kinds of do's and don'ts along the way. The truth of the matter is that these are extremely useful whether this is your first house flip or you have been flipping houses for years. In fact you might just find that you can learn something new on occasion by reading lists such as this even if you've been flipping houses for years and have many successful flips under your belt. 1) Don't forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also take the time to make sure that the plan you have in mind for the property will match well with the other neighborhood residents in order to guarantee a quicker sale. 2) Don't blow your budget without just cause. Your budget is what you used to determine whether or not the house would be a profitable v...

So many of my friends do not believe me when I tell them that I buy with no money down. It gets easier as you own more properties. The trick is so simple, You do not need to buy the TV course either. All you need is good credit. I cover this topic in great detail in my other articles and websites. In one of my recent transactions, I am getting ready to close on a pre-construction house in Homestead Florida. I like to buy with 80 % down, this way I don't pay PMI and the paper work is so much easier. I also use the Option ARM, because I am not keeping it for more that a year. So in this case I made a 10% deposit using a credit line from Bank of America and now for the closing and closing costs, I am going to use one of credit card promotions that gives me 0 % interest for 9 months. I plan to flip this in about 6 months so who cares? This is just a small example of buying with no money down. Another common method is using a VA Loan with 100 % Financing. Then you can use certain len...

I believe that real estate investing is a business that's both vital and necessary for a healthy, thriving national economy. However it seems in recent years it's also an industry that's often better known for unscrupulous investors, shady deals and fraudulent activity rather than the economic value real estate investing brings. The image we see painted by the media is all too often than of the slum lord keeping his deprived tenants under this thumb as he gets rich off their misery. Or it's the fast talking mogul spinning his crooked web of house flipping schemes, taking advantage of little old ladies and making heaps of cash from stealing houses from people. While these images are far too sensationalized by the media, it saddens me to admit that there is often an unfortunate truth behind them. Even for real estate investors with a high moral fiber, it can become far too tempting at times to "fib" on the details to get a deal closed - especially when the so...

House Flipping Tips Flipping houses has become a very popular activity in the housing market, this can be very financially rewarding; however, if not done right, it could turn out in catastrophe and cost more on the property than you make on it. House flipping is not for everyone, it takes much more work than it may look. Choosing the right house is key; the house isn't the most important factor, but the area that the house is located in. Find an uncared for home in a nice area, maybe it was a rental that wasn't properly maintained, an older owner/s who weren't capable of keeping up with the house, maybe it's just an out-dated house, or it could be an eye sore, over-grown and "ugly" to look at. All of these things are repairable, but if the house is in a bad neighborhood, whether it be high crime rate, low income, or near a freeway or airport you can not hide or change these undesirable features. Now that you've found the right house, it's time fo...

You are often told it is true, but can you really buy Real Estate for no money down? The answer is a resounding yes, and there are quite a few ways that it can be done. The first thing to remember about the issue of down payments in Real Estate transactions is that there are no laws carved into stone tablets. Down payments are something that can be negotiated between the buyer and the seller in any number of creative methods. It is true that large down payments are standard and expected in many Real Estate transactions when the purchase is being made to provide a primary residence. When the transaction is for the purpose of investing, large sums of free capital are not always available or the buyer is unwilling to commit his available capital to this purpose. This means that the world of Real Estate investment is not open only to those with large amounts of free capital. Especially, when one is beginning no money down deals can be the stepping stone to many successful Real Estate de...

1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and add about 5% for extra expenses, and see what type of profit margin you will be left with. Example: If you buy a house for $120,000 and the houses in the area sell for $155,000, and the house needs $15,000 to fix it up. You are now at $135,000. Carrying cost for six months on the home is $6,000. Now, at $141,000, and the fees and closing cost my extra 5% $6,000. Now, cost is at $147,000, and that is if everything goes as planned. Profit is under 10,000 dollars. The mistake was made at the purchase at ...

Yes, buying real estate with no money down and no credit is a possibility. And making money from real estate doesn't have to be a pain in your a--. If you want to enter the business but don't have a single cent to spend there are a whole lot of ways you can still make money. All you need to enter the business is true conviction; everything else comes apart. Here are a few examples to fill your head. If you are planning to get a house and don't have enough money for the payment why not consider swapping? All the things you own can be used as a substitute for money to be used as a trade. Imagine if you are buying from a seller that is retiring, he may prefer having the motor home you don't use or any car, boats, or campers. Appliances can also be exchanged as a replacement for money. Furniture and other similar can be part of your investment to acquire a house for flipping. Whenever you consider the idea of swapping things for other when you are going to invest in real...

What is Blog Flipping? Blog Flipping or website flipping is normally defined as buying a blog, making some improvements, and then selling it for a profit. Think of it like buying a house that needs work, doing the improvements, and selling it later. This concept has been around for a while but it has grown in popularity lately. One of the advantages of this form of making money online is that you are not risking as much of your capital resources, but mainly your time and effort. Obviously, you can also start your own blog from scratch, thus reducing further your risk of loosing money. The Advantages of Buying A Website Given the time it takes to get a new blog off the ground and the amount of work and effort it takes to create one, adding content, building backlinks, etc., the prospect of buying an established blog is very appealing. Another big advantage of buying a blog is that you don't have to establish an audience and wait for the site to be indexed within search engines. M...

One of the best things about real estate investing as a business is the minimal amount of equipment required. Unlike, say, a restaurant, which requires zoning, expensive equipment, perishable inventory and a large staff, a real estate business requires very minimal overhead and equipment. At minimum, you would want the following: A cell phone A computer with Internet access A digital camera A fax machine (yes, you can use the ones at Kinko's but we recommend you invest in a fax machine for $49 to $99) Access to the MLS (Multiple Listing Service) or better, a commercial comps service to determine the value of the properties If you want to make your business much easier to run, you would also want the following: A part-time assistant (pay the assistant $8 to $12 per hour and expect to have the assistant for 5-20 hours per week) An answering service to answer your calls 24/7 [the firm we are using charges $49 per hour for 60 minutes and then approximately 50 cents per minute: this ...

You want to make money in real estate investing then you have to use other peoples money. No money down means do not use your money, use a private lender, hard money lender or the owner of the property you are buying. Here are 10 good ways to set up deals in real estate that you can structure as no money down deals. 1.) Partnership: Find a 50/50 partner. It does not have to be 50/50; it can be what ever you can negotiate. 2.) Flip: The best way to flip houses is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. 3.) Lease Option: Many times you can buy and sell with a lease option. 4.) Seller Carry back: This is one of--if not my favorite way to buy. Now the best way to use this system is to do a second seller carry back in order to give the seller some cash from the deal. If money does not exchange hands, the seller may not feel that they consummated a sale. 5.) Hard Money: Hard money is an eq...

Nowadays, no one has the perception to invest in real estate with no money down. Everything seems to be crumbling down when the subject of economy is touched upon. Since there have been many problems due to the recession, people are starting to believe that there are no chances for starting new businesses in the current days. This statement couldn't be more erroneous. With so many foreclosures home auctions going on currently, there are a whole lot of opportunities to make a fortune for yourself within a few months. Read along to learn how. Let's face it, there are a whole lot of homes going into auction right now because the owners that were suppose to pay their mortgage weren't doing so. And there could be a million reasons why they have not been doing so, but the important thing is homes are being sold for practically nothing. Even if the economy seems to be heading into a harsh crisis don't forget that money is never lost: it just changes hands. So where are all ...

How did it happen? You spent months researching how to invest in real estate. You went to seminars, read books and magazine articles showing the easy way to buy properties to fix up and sell for profit. You may have worked with a great Realtor to find the perfect property or came across a FSBO that was a tremendous deal. After the closing you worked hard to rehab the home to sell quickly: fixed the plumbing, put in new cabinets or carpeting and repainted with neutral colors. Now the home is on the market and it is NOT selling. What went wrong? Although I am aware that each situation is different, I would like to share a story of first time real estate investors gone wrong. If any part of the story starts to sound familiar, you might want to revise your real estate investment plan. Two years ago, I was contacted by a couple for a market analysis on a property they were preparing for sale. I met with the owner at the vacant home. She was extremely excited because the home they had bou...

In the real world if you have no money that means that you have no way to change your situation. In the real estate world having no money just means that you have to be willing to work a little bit harder than everyone else to better your financial future. There are not many opportunities in today's business world to take control of your money. Real estate investing gives you that opportunity if you are willing to be creative and work for it. Even if you have no money you could still have a great credit score. If you are lucky enough to have a nearly perfect score, you will be able to walk into almost any bank and tell them that you want a home loan. If you get this loan you have successfully figured out how to break into the real estate investing market with not even a dollar in your pocket. Once the bank has approved your loan set out to the property of your choice with the goal of talking the price down. This is something that if successful will mean even more money for you. ...

Is a "no money down" real estate investment possible in today's economic conditions? Banks are obviously tightening up but there are other lenders who are willing to finance real estate investments. They are willing to give investors enough money to purchase a rundown house and even repair that property to it can be sold for a much higher amount. These lenders provide hard money loans. Hard money lenders are unlike traditional lenders. These creditors lend money based on the real estate deal the borrower wants to close. In short, if the lenders think that the investor will earn enough profit to repay the loan, they will give him the funding he needs. In most cases, that funding includes money for the repairs - something you can't expect banks to give borrowers. Traditional lenders like banks, if ever, will provide a borrower money to purchase a property. But if that borrower is a rehab investor, or one who repairs and flips properties, he would need more than that....