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.

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.

Rent To Own Video Course

With all the uncertainty in the real estate markets these days, a lot of folks are choosing Rent To Own as a strategy for acquiring their next home.
The following video course details what you need to know about the Rent To Own / Lease Purchase process.

3 Things To Consider Before Doing A Rent To Own

Your Rent To Own Checklist

3 Truths About Rent To Owns

3 Ways To Prepare for A Rent To Own Purchase

4 Keys To Finding A Good Rent To Own Opportunity

Who Is Responsible For What In A Rent To Own

Your Down Payment & Security Deposit

Negotiating Rules

In this series of videos below, you’ll learn about the 7 rules to follow when negotiating your next home purchase.
These are:

  • Never Put Your Best Offer First
  • Develop a good relationship with the cooperating agent
  • Know when to walk away
  • Gauge what the seller wants
  • Have a working knowledge of your market
  • Get A Home Inspection
  • Ask For it!

These rules are outlined in the 7 videos below…

Negotiating Rules 1

Negotiating Rules 2

Negotiating Rules 3

Negotiating Rules 4

Negotiating Rules 5

Negotiating Rules 6

Negotiating Rules 7

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

Foreclosed Houses: Your Must Know In Home Inspections

Foreclosed Home

Foreclosed houses are undoubtedly the choice homes for many people who are seriously considering buying anew house, a second home, or an investment property. But a big part of ensuring that your investment is well-protected is in making sure that you are adequately aware of the condition and state of the property you are going to buy before you make the decision to purchase it.

While buyers know that they should get a home inspection done on their houses, not everybody is aware of how it is done and what it is all about. In fact, very few buyers can even interpret or read a home inspection report. But regardless of this fact, every buyer must still have home inspections done on the properties that they are willing to buy. [Read more...]

How To Make Money For Retirement?

In order to succeed in any time period, one must develop and hone their skill set in order to find ways to make extra money. While it is easier today then ever before to find and consume all the information that you will need to be successful, you still have to find the right information. And while current and relevant information is a must to learn, there is a boat load of materials that were conceived and written hundreds of years ago that are still very relevant in today’s world of making money and becoming successful.

There are a great deal of people that want to, not only change their own personal situations, but also feel the need to change the world. While this is a very noble effort and choice, you can’t change the outer world until you change your inner world. It has been proven from past history that there seem to be 4 key skills you need to succeed in the 21st century. When all these skill sets are learned and eventually mastered, the universe seems to comply with you wishes almost magically, allowing you unlimited ways to make extra money.

Within the five major components that you will need to learn in order to succeed in the 21st century, there are 4 key skills that are essential for your growth. Learning how to become a creative thinker is the first key that you’ll want to develop. You can’t expect for things in your life to change if you keep on doing what you’re doing, and you keep doing what the masses continue to do or tell you to do. In order to find ways to make extra money and succeed in the 21st century you must start to think outside the box of normality. Most people tend to listen to others that are not even close to where they themselves want to be. Yet these people continue to blindly follow what is set before them. There are millions of people in the world that are trying to change their own situations, so in order to stand out from the crowd, you must be different. When you develop the ability to be a creative thinker, you also have the know how to become a first rate problem solver. When you can solve problems for the masses, you will be paid accordingly.

Becoming a great negotiator is another key skill that you will most certainly need to grow in order to really find ways to make extra money. We all start our lives off as great negotiators when we’re kids. Think about the time that you were in the toy store when you were a kid, and you desperately wanted your Mom or Dad to buy that new toy. Most of us tend to start the negotiating process without even realizing what we were doing. We did this because we desperately wanted that new toy, it didn’t matter what the answers were going to be, as kids we had no fear of rejection, or the word ‘No’. It is a shame that as we grew into adults, we lost that edge.

One of the most popular methods of investing is the one shown here – on the retirement investing blog. It is absolutely logical that one thinks about future and has a desire to put a cushion for the older age times. This is where retirement investing blog comes into assistance. We do not intend to push you to making any specific choices – but the general knowledge of the retirement planning industry will help you a lot.

Looking for stock market news, because stocks trading is one of the parts of your retirement planning agenda? Then visit this site.

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.

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