No Real Estate Rebound Until 2013? Does it matter for investing?
by Fortune Builders
Some are now predicting no real estate rebound until 2013. Could this
be true and even if it is does it matter to real estate investors?
First it was 2011 that was supposed to be the year of the great real
estate rebound in the US. Then as it got later in the year some began
changing their predictions to a rebound in 2012. Now, before we are even
there others have come out forecasting that the housing market won’t
recover until 2013. So what’s the real deal and how does this affect
real estate investing?
For a start these latest predictions completely ignore the markets
which are already on the up and which are seeing gains in both home
values and sales volume. In fact many markets are seeing very stable
figures and returns to acceptable inventory levels, while some are even
breaking records.
Is it true that some cities continue to struggle? Absolutely. Some
may even see home prices slide a little further. However, all real
estate is local. There isn’t a switch to flip or we won’t wake up one
morning and the whole country won’t be automatically fixed but progress
is being made and real estate investing flourishes all over the country.
There are so many dynamics that affect real estate sales that no one
can 100% guarantee where prices will be in 6 months from now or 5 years
from now, though for now all signs are positive that we are entering
another growth period.
Still, speculative real estate investing should be a thing of the
past anyway. Wise investors should be making their money when they buy
and shouldn’t have to gamble on the market’s ups and downs, at least not
with more than they are willing to lose.
It doesn’t matter where you live or which are you are most interested
in investing in, there are real estate investing deals to be found.
With the right real estate education and the right strategy it doesn’t
matter where the market is headed, there are benefits of investing
either way.
Those focused on flipping houses who buy low don’t need to hold
properties at all and really don’t have to take on any risk associated
with holding or just ‘hoping’ for buyers. While those concentrating
their real estate investing on buying and holding shouldn’t have
anything to lose either. Providing your properties are cash flowing you
can wait out any fluctuations and sell when you are ready, if you ever
want to.
not for buying hold or flipping
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Friday, February 10, 2012
Wednesday, February 8, 2012
3 Mortgage Programs to Help You Flip More Homes
by Fortune Builders
Flipping houses can be down with no money down and without using financing, especially if you have cash or a network of private money lenders but you will also find the following 3 mortgage programs excellent additions to your arsenal. After all, the more good leverage you can harness and the easier you can make it for others to buy your homes the more real estate investing deals you can turn over.
1. Transactional Funding
Transactional funding is perhaps the most valuable asset that real estate investing pros have on their side today. Yet it is still overlooked or under used by many investors. Transactional funding can be used for funding quick flips, often providing 100% financing, plus closing costs, without credit checks or even appraisals. Of course the one catch that comes with transactional funding is that you have to have a ready and able buyer. If you don’t have end buyers lined up by the dozen yet then you can also simply assign your deals to other real estate investing companies and recommend that they use transactional funding. You may even find your transactional lending sources will pay you for the referrals so you can double dip without taking on any risk.
2. Hard Money Loans
We all know that hard money loans aren’t as sweet as they once were but they are still great tools for flipping houses. Some of these lenders will actually loan you rehab funds too, even if they do put them in escrow and refund you as work is completed. However, hard money loans can also be offered to those purchasing your homes too. There are many buyers out there with bruised but who have cash to put down as down payments, even those who are exiting their homes as short sales now often receive up to $20,000 for relocating and finding another home.
3. FHA 203 (k) Loans
Real estate investing pros often instantly shy away from any type of conventional financing however FHA’s 203 (k) loan program is perfect for investors. It offers purchase and rehab funding in one loan so that you can purchase distressed properties and fix them up without having to put in additional cash of your own. This can be fine if you are using a buy and hold real estate investing strategy. However, but if you are focused on flipping you can also promote these loans to your buyers and let them do all the repair work.
go to Fortune Builders
by Fortune Builders
Flipping houses can be down with no money down and without using financing, especially if you have cash or a network of private money lenders but you will also find the following 3 mortgage programs excellent additions to your arsenal. After all, the more good leverage you can harness and the easier you can make it for others to buy your homes the more real estate investing deals you can turn over.
1. Transactional Funding
Transactional funding is perhaps the most valuable asset that real estate investing pros have on their side today. Yet it is still overlooked or under used by many investors. Transactional funding can be used for funding quick flips, often providing 100% financing, plus closing costs, without credit checks or even appraisals. Of course the one catch that comes with transactional funding is that you have to have a ready and able buyer. If you don’t have end buyers lined up by the dozen yet then you can also simply assign your deals to other real estate investing companies and recommend that they use transactional funding. You may even find your transactional lending sources will pay you for the referrals so you can double dip without taking on any risk.
2. Hard Money Loans
We all know that hard money loans aren’t as sweet as they once were but they are still great tools for flipping houses. Some of these lenders will actually loan you rehab funds too, even if they do put them in escrow and refund you as work is completed. However, hard money loans can also be offered to those purchasing your homes too. There are many buyers out there with bruised but who have cash to put down as down payments, even those who are exiting their homes as short sales now often receive up to $20,000 for relocating and finding another home.
3. FHA 203 (k) Loans
Real estate investing pros often instantly shy away from any type of conventional financing however FHA’s 203 (k) loan program is perfect for investors. It offers purchase and rehab funding in one loan so that you can purchase distressed properties and fix them up without having to put in additional cash of your own. This can be fine if you are using a buy and hold real estate investing strategy. However, but if you are focused on flipping you can also promote these loans to your buyers and let them do all the repair work.
go to Fortune Builders
Monday, February 6, 2012
Need to be Flashy to be a Real Estate Investor?
by Fortune Builders
Do you really need a flash car, a fancy house and a Rolex to become a successful at real estate investing?
You have probably seen other real estate investing pros whipping around in Ferraris, filming videos from their waterfront mansions, spending hundreds on lavish lunches and real estate agents posing next to a Mercedes Benz in the property ads. Money and success can certainly attract more money but does that mean you need to be this flashy to get involved in real estate investing?
Some of those new to the business can find this ‘chicken or the egg’ dilemma frustrating but do these individuals have these things because they are successful or are they essential tools of doing business?
It is true that it might be a little easier to walk away from a lunch meeting with a private investor if you pull up in a decent car instead of your beat up 1997 Chevy but that doesn’t mean borrowing for show is essential or smart for real estate investing success. Don’t get caught in the trap of spending before you have it. Truly profitable real estate investing is about profits not just cash flow. Let your profits pay for your toys after you are financially independent, don’t gamble to get deals.
The most important thing is to be able to talk your prospect’s language, know what they like and what will close the deal for them. Even if you have your eyes set on real estate investing in some of the glitziest neighborhoods in the country, know that it is just as easy to flip a multimillion dollar home as a $50,000 home. If you feel that you need to step up your game a little to close deals with the area’s uber rich then visit open houses, go test drive a Lamborghini and hang out where your prospects hang out. They don’t have to know you took the bus or a are driving a rental ‘because your Bentley is in the shop’.
Dressing the part can make you feel like a million bucks, but it might be better to have a million bucks in the bank. Hold off on that $3,000 suit until you at least have enough savings to get your through the next 6 months without making a penny. Besides you will find many of the world’s elite wandering around in shorts and flip flops most of the day because they can. Plus there is a lot to be said for letting people underestimate you when it comes to negotiations.
go to Fortune Builders
by Fortune Builders
Do you really need a flash car, a fancy house and a Rolex to become a successful at real estate investing?
You have probably seen other real estate investing pros whipping around in Ferraris, filming videos from their waterfront mansions, spending hundreds on lavish lunches and real estate agents posing next to a Mercedes Benz in the property ads. Money and success can certainly attract more money but does that mean you need to be this flashy to get involved in real estate investing?
Some of those new to the business can find this ‘chicken or the egg’ dilemma frustrating but do these individuals have these things because they are successful or are they essential tools of doing business?
It is true that it might be a little easier to walk away from a lunch meeting with a private investor if you pull up in a decent car instead of your beat up 1997 Chevy but that doesn’t mean borrowing for show is essential or smart for real estate investing success. Don’t get caught in the trap of spending before you have it. Truly profitable real estate investing is about profits not just cash flow. Let your profits pay for your toys after you are financially independent, don’t gamble to get deals.
The most important thing is to be able to talk your prospect’s language, know what they like and what will close the deal for them. Even if you have your eyes set on real estate investing in some of the glitziest neighborhoods in the country, know that it is just as easy to flip a multimillion dollar home as a $50,000 home. If you feel that you need to step up your game a little to close deals with the area’s uber rich then visit open houses, go test drive a Lamborghini and hang out where your prospects hang out. They don’t have to know you took the bus or a are driving a rental ‘because your Bentley is in the shop’.
Dressing the part can make you feel like a million bucks, but it might be better to have a million bucks in the bank. Hold off on that $3,000 suit until you at least have enough savings to get your through the next 6 months without making a penny. Besides you will find many of the world’s elite wandering around in shorts and flip flops most of the day because they can. Plus there is a lot to be said for letting people underestimate you when it comes to negotiations.
go to Fortune Builders
Sunday, February 5, 2012
6 Sources of Discounted Homes for Real Estate Investing
Just getting started in real estate investing or old sources of properties running dry? Check out the following 6 sources of discounted homes which may be a great fit for your house flipping business.
1. FSBOs
Believe it or not there are still homeowners out there who have equity or even own their homes free and clear and who are ready to deal. Unfortunately those who have signed up for some for sale by owner sites may have invested thousands in junk marketing but there are nuggets to be found. Data and lead list companies can help you target those with the most equity for a variety of marketing campaigns.
2. Probate Properties
With so many new players and old players jumping into real estate investing today it can make a lot of sense to find a niche and own it. Probate and estate sales could be just the ticket you need, offering discounted homes and motivated sellers.
3. Condemned Properties
More investors are inquiring about real estate investing in condemned homes. You need to be very careful here as there is obviously a reason they are in trouble but you could find some amazing deals which aren’t that difficult to flip if you do your due diligence correctly.
4. Realtors
Real estate investing newbies and long time pros alike often immediately turn their noses up when they hear Realtor. However, more often than not this is because they are told to, not because they have had an endless string of bad experiences using them themselves. Find one or two great ones, negotiate discounted rates and make sure you have a constant stream of homes to look at every morning.
5. REOs
While their is a lot of talk about bank owned REOs going away, at least for the average investor they are still up for grabs right now. You can even often find them by walking into your local bank branch though you may find more luck and less competition approaching smaller banks than the bigger nationwide chains.
6. Wholesalers
For those looking for the best of both worlds; a constant stream of properties offering big discounts, without a huge investment in marketing and hours a week scouting for deals one at a time then hooking up with 2 or 3 great wholesalers might be the answer.
go to Fortune Builders
Just getting started in real estate investing or old sources of properties running dry? Check out the following 6 sources of discounted homes which may be a great fit for your house flipping business.
1. FSBOs
Believe it or not there are still homeowners out there who have equity or even own their homes free and clear and who are ready to deal. Unfortunately those who have signed up for some for sale by owner sites may have invested thousands in junk marketing but there are nuggets to be found. Data and lead list companies can help you target those with the most equity for a variety of marketing campaigns.
2. Probate Properties
With so many new players and old players jumping into real estate investing today it can make a lot of sense to find a niche and own it. Probate and estate sales could be just the ticket you need, offering discounted homes and motivated sellers.
3. Condemned Properties
More investors are inquiring about real estate investing in condemned homes. You need to be very careful here as there is obviously a reason they are in trouble but you could find some amazing deals which aren’t that difficult to flip if you do your due diligence correctly.
4. Realtors
Real estate investing newbies and long time pros alike often immediately turn their noses up when they hear Realtor. However, more often than not this is because they are told to, not because they have had an endless string of bad experiences using them themselves. Find one or two great ones, negotiate discounted rates and make sure you have a constant stream of homes to look at every morning.
5. REOs
While their is a lot of talk about bank owned REOs going away, at least for the average investor they are still up for grabs right now. You can even often find them by walking into your local bank branch though you may find more luck and less competition approaching smaller banks than the bigger nationwide chains.
6. Wholesalers
For those looking for the best of both worlds; a constant stream of properties offering big discounts, without a huge investment in marketing and hours a week scouting for deals one at a time then hooking up with 2 or 3 great wholesalers might be the answer.
go to Fortune Builders
7 Worst Excuses for Not Real Estate Investing
by Fortune Builders
1. Having to Pay Taxes
Putting off on getting started in real estate investing because you may have to pay taxes on the income you earn is perhaps the most ridiculous excuse of all. That’s like saying you wouldn’t accept $20 million if you won the lottery because you would owe taxes on it. For that matter why work at all?
2. The Market is Bad
There are more opportunities for flipping houses right now than ever before and homes are more affordable than they have ever been. Do you really want to wait until the top of the market to get in?
3. Too Busy
If you don’t make the switch to real estate investing now you will likely never have the freedom you crave. Certainly you can spare an hour a day to kick start your real estate investing in exchange for financial freedom and a lot more free time later?
4. No Cash
If you are short on cash now that is exactly why you need to be in real estate investing. From transactional funding to seller financing to private mortgage lenders there are endless ways to find the money you need to invest in real estate.
5. No Credit
None of the above methods of financing your real estate investing deals requires you to use your own credit.
6. You Don’t Know Where to Start
If you have never purchased a home before getting into real estate investing can seem a little daunting but with so many resources at your finger tips giving your real estate education a quick boost has never been easier.
7. It’s Too Risk
No investment is 100% without risk. However, the best strategies for flipping houses today can be almost risk free. What is really risky is sticking with a day job which may not exist in a year from now and certainly isn’t providing enough for you to build a huge nest egg for retirement.
go to Fortune Builders
by Fortune Builders
1. Having to Pay Taxes
Putting off on getting started in real estate investing because you may have to pay taxes on the income you earn is perhaps the most ridiculous excuse of all. That’s like saying you wouldn’t accept $20 million if you won the lottery because you would owe taxes on it. For that matter why work at all?
2. The Market is Bad
There are more opportunities for flipping houses right now than ever before and homes are more affordable than they have ever been. Do you really want to wait until the top of the market to get in?
3. Too Busy
If you don’t make the switch to real estate investing now you will likely never have the freedom you crave. Certainly you can spare an hour a day to kick start your real estate investing in exchange for financial freedom and a lot more free time later?
4. No Cash
If you are short on cash now that is exactly why you need to be in real estate investing. From transactional funding to seller financing to private mortgage lenders there are endless ways to find the money you need to invest in real estate.
5. No Credit
None of the above methods of financing your real estate investing deals requires you to use your own credit.
6. You Don’t Know Where to Start
If you have never purchased a home before getting into real estate investing can seem a little daunting but with so many resources at your finger tips giving your real estate education a quick boost has never been easier.
7. It’s Too Risk
No investment is 100% without risk. However, the best strategies for flipping houses today can be almost risk free. What is really risky is sticking with a day job which may not exist in a year from now and certainly isn’t providing enough for you to build a huge nest egg for retirement.
go to Fortune Builders
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