3 Sources of Financing for Real Estate Investors

One of the most important aspects to investing in real estate is how you finance your property. Although all other factors may look favorable, having no or little access to good terms could be a deal breaker. Therefore, before doing anything else, it is important that you begin to line up some potential sources and explore what options are available to you.
There are various ways to start investing in homes, and each source has its own set of strengths and weaknesses. Your exit strategy, the condition of the property and various other factors will play a part in how you may be able to finance each specific investment. So let’s explore 3 of these top sources:

Traditional Financing

If one of your strategies is to buy, hold and rent, then using banks may be a safe bet for some of your investment properties. This is a source that can be considered up front when a property is in considerably good condition. Most banks will not support the financing of a fixer upper until repairs are completed, due to the amount of risk involved.
Therefore, you may need to spend a little extra time searching for those diamonds in the rough. Traditional financing is extremely favorable, because you can usually get some of the best interest rates, terms and closing costs when approved. The process certainly will take longer than using cash buyers or hard money lending for example, but it can be worth the wait.

Hard Money Lenders

For those who will either be flipping a property or would need to conduct significant repairs in order to refinance may want to consider building a relationship with a hard money lender. It is advisable to shop around to at least 2 or 3 in your area when possible to see which terms you find to be most favorable.
These loans will come with much higher interest rates (typically 12% or more), points and some type of balloon payment near the end of the agreement. Hard money may be offered for 6 months to a year while the repairs are made, until the home is ready to be sold or refinanced for better rates.
It is important that investors are prepared to either rent out or lease-to-own their property if perhaps the home is unable to sell on the market quickly enough. Also, newbie investors beware! Flipping houses can be more difficult that it may seem, and you must have a solid plan in place so that you are not forced into a tight financial situation.

Private Lending

Before ever considering this option, it is strongly encouraged that you talk with a local attorney that specializes in SEC policies. Laws can vary on a state by state basis, so it is important that you have a good understand of those guidelines before building any relationships with private lenders.
However, when done correctly this can be a powerful resource available to you, that doesn’t require credit checks or adhering to all the strict guidelines enforced on mortgage companies. Private lenders can be nearly anyone who has access to the necessary funds for your purchase (i.e. your doctor, friends, family, or investor club).
Typically private lenders can receive anywhere from around 9% and up for their investment, which is secured by the property and can be a great investment for them based on today’s rates. Loans can be negotiated on a property by property basis so that each investor only funds the deals that they are comfortable with.
With these 3 examples alone, you may have all that is needed to start funding real estate deals. Therefore, take action now and begin building the relationships and networks of lenders that you will need in order to start investing.
Are you in need of referrals? Contact us today to access a list of preferred lenders that we will recommend for your investment business.

Investing in Real Estate vs. Stocks

When it comes to investing in land/real estate or stocks, there is no one size fits all. Although both vehicles have proven over the long run to provide excellent returns when handled properly, each person will have their own unique goals, risk tolerance, and capital that they are willing to spend.
Additionally, this is where a financial planning specialist may offer useful insights as well. You may have heard the advice to not put your eggs all in one basket. Therefore, it may even be beneficial to consider pursuing both forms of investments to better leverage your profits.
So our goal is to offer an overview of both sides of the coin in order for you to start forming your own opinion. All in all, it is most important that you proactively take your financial future into your own hands and only pursue the path that you feel will be the best for you and your family.

Benefits of Investing in Land or Real Estate

Many very successful people started out their investing careers in real estate. Plus regardless of what happens in the economy, it is factual that people will always need a place to live. Homes very rarely decrease in value when they are well maintained and purchased correctly.
In addition, land can be an extremely lucrative investment since the world’s population continues to increase, and as a result the demand for land used by residential, commercial and retail entities is always on the rise as well.
With real estate you are offered something that is tangible and can be easier to calculate your due diligence. In other words, after reviewing the property specs with appraisers and inspectors, you have a fairly good idea of what you are getting into.

Downside of Real Estate Investments

First of all, there is typically a lot more time and energy invested in managing your investments. Whether you are renting your property out to tenants or keeping your lots clean and free of debris and coding violations, this is something you will be much more actively involved in.
Next, real estate always has some sort of cost involved. Regardless of what you decide to do with your properties, you will still be responsible for taxes, insurance, utilities, repairs/maintenance and possible a host of other expenses. Plus you can end up overspending and losing your shirt.
Finally, you have to have the proper investment strategy in place. Although real estate has historically been a strong hedge against inflation, you always need to consider your own local trends so you can properly leverage your investments to realize a strong ROI.

Benefits of Investing in Stocks

Unlike real estate, this is an investment that can be essentially placed on autopilot. Aside from keeping an eye on your portfolio for rises and dips, you can leave the management and operation of each entity up to the professional staff. You own a piece of each company without having to work for it.
Even with the Great Depression and other scares that we have witnessed over the last century, stocks have historically proven to be the best return on investment for those who hold on through the tough times and invest their returns properly.
Additionally, it typically doesn’t take a huge upfront investment to get involved in the market, and this is very beneficial for those who don’t have a lot of cash on hand. As long as you choose the right companies, earnings will continue to increase. Selling your stocks is also infinitely easier than listing a property or land for sale as well.

Downside of Stocks

On the other hand, the greatest benefits of stocks can sometimes be the most detrimental weaknesses. For example, though you do not need to actively invest sweat into each company, you are also leaving your finances in the hands of a management team that dictates how things operate.
Therefore, if business takes a nosedive so do your stocks. Some will recover while others may crash and burn. Also, this can be a very emotional game. Especially for those who are getting closer to retirement, the couple scares that we have witnessed in the last decade caused many people to pull out at huge losses.
Finally, stocks can be a lot more unpredictable, especially if you are jumping on the bandwagon of rising trends or promising starter companies. Though some may end up being a homerun, you are always listening to the speculations of gurus or your own gut feeling. Alternatively, real estate can typically be more accurately measured.
In conclusion, it important that you take the time to assess the investment opportunities that are available to you before making any decisions. It is important to look out for your financial future and well being, and we’re here to support you along the way.
If you need more information about how you can get started investing in real estate or land, and want to discover the options available in our local area, take the time to contact us today. We look forward to doing business with you!

Make A Wise Real Estate Purchase

In this video we explore some tips for making a wise real estate purchase.

  • Save For A Big Down Payment
  • Don’t Overextend Yourself
  • Consider the Work Involved
  • Really Shop Around

4 Keys To Saving For Your Future Home

In this video, we will explore some things to consider when you’re getting ready to save for your next home purchase.

Buying A Home? Take This Free Video Credit Course

Below is a series of videos that will teach you what you need to know about getting your credit in shape for a future home purchase.
Please feel free to share these videos with a friend who currently owns or is looking to buy a home.
Staying out of credit trouble can have a big impact on your financials for years to come!

Credit Course Video 1

Credit Course Video 2

Credit Course Video 3

Credit Course Video 4

Credit Course Video 5

Credit Course Video 6

Credit Course Video 7

Tips For Successful Investing

As we have learned from the current economic crisis spending more money than you have in your pocket can be a disaster. When this happens as it has then we face a recession that affects everyone. It does not matter whether you are rich or poor, the cost of paying for goods rises. This includes the cost of groceries, fuel, utilities, insurance, and entertainment. The prices rise because we find ourselves cutting back on spending and when we do this our local and national businesses have to find a way to make up the difference.

When prices do go up we are stuck because the chance of those prices ever going back to what they were is unlikely. No one knows this better than our parents and grandparents, who have seen the world they once knew change dramatically over the years. Understanding how our government officials and the Federal Reserve operate keeps us in the loop on changes that are coming, and give us the opportunity to be prepared.

The overall structure of the Federal Reserve has always been one of its great strengths. When they falter, it is up to the Feds to see that problems are addresses. Throughout this process there must be a means finding a balance between decentralized regional planning, which preserves the strengths of the regional structure.

While the Federal Reserve has acted on its own to address problems facing our financial stability the process can be enhanced. When banking institutes and the government cooperate together they can alleviate problems before they get out of hand. We can make a difference at home by reviewing our financial spending. When we do invest after researching our options we can chose real and financial assets that will increase in asset values. This in turn will result in lower the cost of capital and improve the balance sheet positions of potential borrowers.

When debtors are in financial distress it can increase the fragility of the nation’s financial system. We have seen this example recently in regards to the many bank loans that are delinquent or in default. This affect then results in massive financial problems that include bankruptcies, and bank failures. When this happens every one begins to feel the crunch of the economic crisis. The cost rise while spending drops, and this creates an unbalance system that must be corrected in order for the financial system to get back on a productive track.

Understanding how the Federal Reserve works and uses our money can help our children as well. They will learn how are money not only affects the family lifestyle, but the global conditions of the markets as well. This prepares them to make good choices in the future.

It doesn’t matter what age you have right now – http://www.freeinvestmentblog.com/ is an issue to think about at any age. For the info about investment, also about retirement income investing in particular – please visit thisblog.

And in case you want to get stock market news, visit this site.

The Influence Of Information Over Investment Transactions Has Become Much More Apparent.

Over the past year the influence of information over transactions related to acquisitions and price trends in stock markets to movements of exchange rates has grown much more apparent. Lets take the Japanese example : The Central Bank of Japan kept interest rates near zero for more than a year hoping to revive the economy. It would seem that lower rates were required to work in favor of deteriorating the currency rates. But instead, starting May last year the Japanese currency has strengthened itself starting from 124 down to current 109 yen per dollar.

Traders ignored the low Japanese rates and focus instead on the news about the acquisition of Japanese companies and share prices. Traders liked what they heard : the Renault company bought 35% of Nissan, GE Capital also grabbed their Japanese assets, and the British “Britain Cable & Wireless“ acquired a Japanese telecommunications company. Foreigners have gained control of Japanese companies in record levels, and for them to implement their projects, they had to exchange their dollars, euros and pounds for yen. In parallel to this process, the portfolio investors from the United States and Western Europe had been buying Japanese stocks, betting that the long period of reforming of the Japanese economy will finally lead to an increase in corporate profits. Thus, the net capital inflow to Japan last year amounted to 95 billion dollars, citing the yen at its current, more expensive levels, and pushing the Nikkei stock market index by about 40% up compared to January 1999. In case with Euro, investors were concentrated on studying the information of the same character, but the effect of its interpretation was quite the opposite. Jim O’Neill of Goldman, Sach & Co. thinks that the culprit 17% of the fall of the Euro compared to dollar last year was just a new type of game on the Forex market, which had monitored and studied information on capital flows. When in early 1999 a joint European currency has only started up, the many “gurus of foreign exchange market” talked with high enthusiasm about the Euro as “a new reserve currency.” However those who had bet on Euro, had soon appeared broke. These players did not realize that both investors and even company executives in the Old World were not optimistic about the availability of sufficient conditions for business growth in their own region.

Japan and the U.S were much more attractive both for acquisitions and for portfolio investment. Therefore, while the positive balance of payments of the Eurozone was 60 billion U.S. dollars, European companies had spent more than $ 120 billion for merging activities with Japanese and American companies, not including other types of straight investments into the investing countries. Another 60 to $ 70 billion had flown from the Western financial markets in pursuit of higher profits in the financial markets of the U.S. and Japan. Subsequently, there were only the money left in Europe that, quoting Jim O’Neill, “people were to return to their banks for the limits overdrawn from their credit cards.”

Today the world is overwhelmed with volumes of information of different kind. Every day bulks of details fall on our heads and it is impossible to follow everything. That’s why it is useful to make use of news sites. If you are looking for some info on earning money online, go to this HYIP monitor site.

Fortunately we live in the world of modern technologies with such great tools like online network, search engines, social networks and forums. Web technologies are a way to earn for living. If you want to deal with investments, no problem – visit Income Non Stop review page where you will find info on investments as well as about scams in the niche.

Still having doubts? Don’t worry! The Web is large – examine this HYIP monitor site. It will help you not only make funds but preserve them from dishonest programs and offers.

Also sign up for RSS feed on this blog – it is a good way to be aware of new publications on the subject.

How To Cover Up And Undertake Your Future?

Make sure today retirement investments program is the best way to keep your money in safe. From the beginning I want you to see that risks are not for retirement investments program and you should not start it in case you would like your money to risk. I want you to see its point and why only retirement investments are different, what they can give you and why you will gather some money when you care. I think there are people who think about own further life or which really do something. Do you know much about these investments? Or you know a little? Anyway – go on reading and start your retirement investments.

It is easy to discuss this topic but when it is time to put everything to the practice – you should see that there are things which you have got by all means. For example, you should have got a plan to go with your retirement investments. For instance, you would like to invest your money into real estate. You should know which part of world, country and place you would like to choose. Do you want to invest into the whole building, apartments or a flat? May be it would be just a little square or house? I do not know – but the one thing I chase about –is to show you that plan is your dive necessity.

But this one is not the only thing you need. For instance there are things which are needed for online investments only or for own business. Surprised? Yes, even if you stay in your retiring program you are able to start up own business and to have got more ins and prospects. Who said you can not run own business in case you are a retired man or woman?

If you are forty – it is time to think about your retiring. Why? Because if you think and contemplate about it now, it would be better and easier for you to care about own future. I want you to deal with something non-limited of course, but it is not about time. You have no strict and exact borders with time but the general tip for you – make sure you start it when you have got enough time to plan and to think over.

I also want you to know about investments advisor –he or she will be able to help you with tips and professional advice – where to invest and where you keep great chances to be in profit. For more info and advice of mine – push here and go for more. Are you ready to undertake retirement investments just now? Click and go for more right now!

One of the most stable methods of investing is the one shown here – on the www.freeinvestmentblog.com blog. Surely it is logical that one thinks about future and has a desire to put a cushion for the older age times. This is where stock market news comes into assistance. We do not want to push you to making any specific choices – but the basic knowledge of the retirement planning niche will help you a lot.

Need retirement investment fund, because stocks trading is one of the parts of your pensions planning agenda? Then go to this blog.

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