Real Estate Investing

Monday, June 23, 2008

Real Estate Investor Blabbers - Other Investors Beware

Real Estate Investors, maybe you know this type. It's the guy or gal at the local real Capital Management investor club that talks about their latest deal where they bought Investment Opportunities house with $60,000 in equity. They bought it and put 100% financing on it, pulling out all their equity in the process as cash at closing. And you're jealous!?

Come on! You're a real estate investor that understands financing and real estate investing. Why are you jealous?

Most of the loan products out there today that you can do 100% financing on as an investment property have very, very Capital Management loans. For example, it might be a variable rate first mortgage for the first 80%--which Capital Management itself should Capital Management a couple red flags.

But the remaining 20% of the 100% financing, is really, really ugly. I've seen loans with rates literally 6 points higher than the first mortgage. Is it worth it to pay Noble1 to 15% on that extra 20% to pull cash out? Some would say that if you invest that in another investment and get a much higher rate of return than the 13 to 15% you are paying, then maybe. But many investors are using this cash out technique to buy food and pay personal bills.

If this was not bad enough, the loan origination fees and costs associated with getting these loans are usually very, very high. In recent transaction I saw, the fees were about $10,000.

"No problem," says the loan broker, "we can roll into your loan." Great! Let's pay $10,000 in fees and pay 13 to 15% interest on it as well. Not a smart move in all but a few exceptionally Investor Relations instances.

Try getting a house with 100% financing with a very ugly blended interest rate to cash Development And Finance You Noblecapital up giving the money back in exorbitant interest, huge up front fees and negative cash flow on the property if you keep it.

So, beware the real estate investor blabber that brags at your local group about this type of deals. You should know better and hopefully now you do.

James Orr is a professional real estate investor, marketing expert and founder of the http://LearnToBeRich.com on-line investment game.

You can get a free real estate course and fully ?article=21 real estate deals and his blog by e-mailing him at freerecourse@learntoberich.com or visit the http://LearnToBeRich.info for more great articles and information.

Real Estate in Florida - Boom or Bust

In the first few years of the real estate boom in Florida, buyers went crazy at the sight of empty houses and plots for sale. Speculators bought under-construction apartments but after 2005 the frenzy subsided. Price undercutting, Capital Management sales and auctioning of properties were as rampant as defaulting on mortgage payments and foreclosures.

While beaches, amusement parks, casinos, nightclubs in their proximity do help make lucrative sales when Noble1 comes to real estate purchases, yet buyers today are exercising more caution. For bargain hunters too, the time is right to cash in on a property and cash out eventually once the market heats up. Discounting is prominent where sellers are desperate to get the property off their hands. Massive price cuts in a bid to lure buyers result.

Southwest Florida witnesses prices for properties on golf courses or in their proximity or even closer to the waterfront steadily ?article=21 Conservative architecture on the other hand is being pressurized and prices elsewhere are tumbling fast. Brokers involved in selling existing properties are competing with Capital Management selling newer ones and the situation is getting more difficult for the former who have to compete with upgrades and generous incentives of the latter.

While smaller cities in Florida State are faring better than those cities with not much development, they are being spared the impact of the real estate bust. Florida Keys is one area which is witnessing restrictions in new construction because of a shortfall in land available. Naturally investing in residential real estate has also fallen in response. However, there are adequate brokers willing to bet that buyers will have the purchasing power to invest in a Noble1 second home between Miami and Florida Keys.

In the soft market, conditions are such that there is no saying what Investor Relations of properties will be lapped up and what will remain Noble1 Property auctions though allowing the sellers to get some returns on their investment are highly unpredictable. If the piece of real estate is at the lower end of the investment hotspot, there is a chance it will get sold, for a buyer can either rent it out or build on it. Speculating on a bigger property has Investor Relations risks with no knowing of which Development And Finance the market may turn.

Seeing this, a question that echoes in many minds is how long will this downturn continue? The higher priced and top of the pick real estate properties are queuing up and by the end of 2008 the numbers will increase. Though the purchasing power of the rich has not been affected there is a limit as to the number of residences even the millionaires will want to invest in, in Florida. So where are the buyers?

Some of the key problems of real estate investing in Florida stem from the high property taxes and home Investment Opportunities premiums which soar post hurricanes. In the event of these being resolved, Florida's real estate market is all set of witness a second boom. Those of us who have been watching the trends very closely especially in Florida agree that it is just a matter of time.

Bob Lipply is a top Real Estate Broker Associate selling Florida Real Estate He and his team specializes in Tampa Real Estate

Flipping Houses, Rehabbing, and Landlording: Who Makes the Most Money Investing in Real Estate?

There are many ways Development And Finance make money in real estate. Two popular and proven ways are flipping houses and landlording. Often, both of these methods involve fixing or rehabbing the property for higher profits.

Flipping Houses to Make Money

House flippers pick up property at Capital Management low price and quick turn it for a profit. Different strategies for flipping houses include:

1. ?article=21 Contracts. Many investors find a bargain house Investment Opportunities by a desperate seller and get a contract to purchase. They then sell the contract to another investor or to a owner-occupant home owner. This method requires great negotiating skills and knowledge of the current market. You must know how to move the contract or you make no money and unfairly tie up the home owner. Successful flippers repeat the system Capital Management and over: contract, sell, buy--and make modest gains on each transaction. This method helps beginning investors make quick money to get a bankroll to buy more houses.

2. Buy Ugly Houses, Fix and Flip. Another flipping method is to purchase bargain property either with Noblecapital or cash. In this strategy, the flipper becomes the fixer and makes the money that the investor would make in the "turning contracts" system.

3. Buy Pretty Houses and Flip. Not all bargain houses are fixers. You can find sellers whose homes are in perfect condition but their personal life makes keeping the house impossible. The key to getting a pretty house from a needy seller is to be ready to cash the seller out with pre-arranged financing or cash.

Landlording to Make a Fortune

Wealthy real estate investors buy properties as long term investments. Rent brings in a consistent, positive cash flow if the properties are purchased at the right price and rented for Investor Relations profits. Investment Opportunities frequently fix up the properties for higher rents. Not only do the landlords receive cash flow each month, they get tenants to pay the mortgage for them and over time the value of the property appreciates.

Both flipping and landlording make money when you buy low, rent smart, and sell for top dollar. However, over time, landlords make the fortunes investing in real estate.

Free ebook: The Truth about Making Money Flipping Houses at http://www.doghousetodollhousefordollars.com

Author Jeanette Fisher teaches real estate investing, home staging, and interior design methods to make more money renting and selling houses at Lake Elsinore Real Estate.

Copyright Noble1 Jeanette J. Fisher