|Real Estate Information|
Real Estate Investment - One Simple Formula
I saw the ads in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. It might be a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments.
A friend started doing the same thing and explained the process to me. It was a way to get a great return on capital. It was the opposite of buying with no money down. You bought for cash.
A Real Estate Investment Formula
It is simple, really. When you buy for cash, you often get a much better price. A house that needs a little work might be worth $75,000, for example. By offering $65,000 cash, you negotiate your way to a $68,000 purchase price. If not, you walk away - there are always others.
Then you put few thousand into high-return repairs and improvements. Paint, carpet, and maybe asphalt for the dirt driveway. For our example, we'll say you put $5,000 into it.
Now it's worth $85,000 perhaps, but you target those who can't get financing easily, and you finance it yourself. By making it easy for the buyer, you can get $90,000 for the home - and do it without a realtor's commission. Whatever the sales price, you let the buyer put 5% down, and make monthly payments of 1% of the purchase price. Of course, you get higher than market interest too.
The buyer is thrilled that they can buy instead of renting, and you get a capital gain of perhaps $14,000 after expenses, plus good interest. Your total rate of return is somewhere over 25%!
The first to do this cosistently in our town were a father and son. They were both lawyers, and saved money by doing their own foreclosures when necessary. After forclosing, they just raised the price and sold it all over again, of course. By the way, if you can get an average return of 18% on your money, you'll turn $75,000 into more than one million dollars in about fifteen years.
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit HousesUnderFiftyThousand.tk
An Investors 1st and Most Important Lesson
Are you ready for the lesson that will put you ahead of 99% of all real estate investors?Here it is in a nutshell ?USE AS LITTLE CASH AS POSSIBLE!The days of mortgage burning parties are long over. But you will still meet people who believe that it is good idea to pay off the mortgage on a property so that they can have big cash flow.
Why Selling on Lease Options is Glorified Landlording
I might upset some folks with this one, but that's okay as I think it's important to get some of my experiences into the light of day. If you fully believe the hype that you won't have any landlording responsibilities by selling on a lease option, go ahead and stop here.
Real Estate Investing - Protect Your Privacy
An irate tenant or disgruntled home-buyer, with the help of a willing attorney, can readily prompt a property search for a property owner in public records. The target of the search becomes someone who has deep-pockets as reflected in real estate assets.
Family Feud with an Auction Deadline - Adventures in Probate/ Estate Purchases
One of our investor students told us of an interesting probate deal or "adventure" they're working on now and while it's a good story, it also illustrates lots of the ins and out of probate or estate issues and purchases.The Seller (we'll call him Scott) co-owned this house with his mom, and he co-signed on the loan with mom.
Home Selection Checklist - A Good Aid When Choosing a Home
This home selection checklist is a tool to help you select a home that is right for you and your family. Before you select a home and get a mortgage, you need to know if you will be happy with the home you select for the coming years.
Notify Them When Youre Moving
One of your first steps, when you're getting ready to move, is to pick up a stack of change-of-address cards from the post office. Yes, old-fashioned go-by-snail post cards! You'll want to notify everyone in your address book and also.
Home Inspection Checklist - Home Inspectors
Although architectural details, wall and floor coverings, modern conveniences and many other factors are important in the buying decision, the focus of this inspection is on the structural/mechanical/electrical condition of the property.The inspection is designed to give the real estate agent or prospective purchaser a system to detect some of the readily accessible major flaws or deficiencies in the significant components and systems of a home.
How to Buy a Home When Your in Your Twenties
A Single's Game of Real Estate (Getting started in your twenties)Due to the fact that most of us grow up in either a rented apartment or our parent's single family home, it stands to reason that most people, when beginning to ask themselves the question of purchasing their own dwelling, will come to the conclusion that a condo or small house is probably the way to go. That's a result of conditioning and it's a hard mindset to break! After taking the time to talk to or personally guide a respectable number of people in their twenties, I have come to find that firm, direct and accurate information can really adjust the reality of how real estate can be acquired and used to their best advantage starting with property that sets the tone for a much more profitable and rewarding future.
The Perils of the Property Ladder: Has Anyone Noticed the Silence?
There was a time when every conversation was focussed on property and every other TV programme was about property makeovers. Everybody wanted to get into property and those already on the ladder seemed fixated on becoming wealthy overnight.
How to Become a Successful Real Estate Investor
Many folks dream of becoming real estate investors, but not everyone has what it takes. If you're dreaming of becoming an investor, here are several important questions to consider, long before you buy your first investment property:1) Why would a homeowner sell a house at a bargain price?Many things happen in people's lives that make their home suddenly become a burden.
Bubble, Bubble, Toil and Trouble?
We are selling our house. We have lived here for 15 years, the longest I have ever lived anywhere; of the places since I left my parents' home I think my previous best was three years.
Maltas Market Battle
With new destinations such as Bulgaria, Slovenia and Croatia offering two and three bedroom apartments for sale for £50,000, there was concern last year among some Malta estate agents that 2005 could see a drop in the number of UK and Irish buyers choosing to buy a holiday home on the island.With good all year round temperatures enticing many buyers for the winter months as well as the summer, driving on the left and a warm welcome from the local population who nearly all speak English, Malta has been popular for some years among overseas property buyers.
Understanding Real Estate Terminology
Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms.
Selling Your Home Yourself - Pricing It Appropriately
When you're selling your own property, whether it's a house, townhouse, condo, apartment, a finished lot, raw land, a farm, a ranch, or whatever, the first thing to get right is the price you ask for it. If you work with a broker, the legwork is done for you.
Commercial Income Property Financing: Part 1 of 3
Welcome to this first portion of a three-part series about income property. In this first segment we will be discussing financing options for commercial income properties as well as the upside (and downside) of owning this type of property.
Credit Help: Buying Real Estate -- Not the Same as Buying Cars
Credit for Buying Real Estate is Different than Credit for Buying CarsForget what you've been told about credit.You may be shocked at some of these tips because this information runs contrary to what other so called experts tell you.
What is Tax-Deferred Exchange?
Under Section 1031 of the Internal Revenue Code, owners of real estate held for investment or use in a trade or business can swap their property tax-free for "like-kind" real estate. Exchanges are made for people wanting to stay invested in real estate, increase their leverage and to avoid paying hefty taxes upon the sale of property.
Beat the Crowd when Investing in Real Estate
We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn't produce desirable returns the more people are starting with real estate investments.
Business Credit Card Dirty Tricks
My system teaches people that the proper use of credit is the fastest way to speed up your profits in real estate investing.And you can use this system no matter what your own credit score is.
Real Estate Bubble: Sophisticated Musical Chairs?
The real estate bubble is a hot topic today; annual appreciation and housing prices have never been higher in most U.S.
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