Let us create a 3d Digital eBook for you! DigyCat.com
|
||
|
||
|
Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
|
|
Investment Real Estate -- A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!
I was a landlord for a decade, and I believe I probably lost a year of life for each year I tried to maintain 26 properties. I learned the hard way that the most efficient way to make money in investment real estate is to create a mortgage note and be the bank - not the landlord. In other words, you become a private bank, financing the entire sale or part of the sale for the buyer. When you finance a sale of property, be sure to get a high rate of interest - generally 9% to 15%, depending on all of the other terms. For this article, let's assume you sell to someone who can't come up with all of a $20,000 down payment, so you finance $15,000 of the loan. The note should be due in five to 10 years, meaning the buyer will likely sell or refinance his mortgage within that period, and you'll be paid in full. Here's how financing a portion of a mortgage can be extremely profitable and far less work than being a landlord, who is responsible for property maintenance. Let's assume you charge 11% on your $15,000 loan, amortized over 30 years (this makes for an easier payment and a more attractive deal for the buyer, even though you're receiving a very high rate of interest on the loan). The payment is $142.85, which includes principal and interest. Now, you could make it even more attractive for you by writing the note with monthly payments of interest-only at 11%. This saves the buyer even more, as his payment becomes $137.50, but this does not amortize, or reduce, the $15,000 he owes you. Let's assume the note is due in 60 months. You get $8,250 during this five-year period, and in the 61st month, you get the entire $15,000 that you originally loaned. As you can see, this is a very powerful investment, as you loaned $15,000 but you received a total of $23,250. One final point. Maybe you are three years into receiving your $137.50 (meaning you've collected $4,950 in payments). Now, you decide you need a large sum of money for something - say, a vacation, home improvement, college tuition, or some other investment. You are still owed two years worth of payments at $137.50, or $3,300, and the balloon payment of $15,000. You have several great options, because you have the power of controlling a lot of money. You can actually sell your entire note at a discount to a note investor. That's right, there are people and companies all over the world that purchase mortgage notes (the actual payments that are due on a real estate transaction). The note you have, even though there are only two years left, would be highly attractive to an investor, because the payments are interest-only and because there is a $15,000 balloon payment due in 24 months. Now, remember, note investors are out to make money, so they won't offer you full price. They will either buy your remaining payments, probably for a discount of 10% to 20%, or they might purchase just the balloon payment, at the same discount, leaving you the remaining payments, or they might buy both the payments and the balloon. So, assume you need $11,000. If you could get an investor to purchase your remaining payments and your $15,000 balloon for $12,500, I would think you'd be extremely satisfied. Remember, you've already made nearly $5,000 on your loan, so you'd wind up making nearly $17,000, and you don't have to worry about collecting the payments any longer. Plus, you will get the "hot" cash that you require immediately. As you can see, financing part of the sale of a piece of property is an extremely solid investment. These examples are just a few of the many ways to own mortgages, not property, and get rich without the headache of being a landlord. If investing in real estate notes is something you would like to try, you might want to consider starting small, like with a mobile home note. These can be very inexpensive to buy but are extremely profitable. Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com
MORE RESOURCES: Real Estate - Google News TEXT: S&P: Nomura Real Estate Residential Fund Bonds Rated 'A' - Reuters
Apple Valley real estate developer rejects offer in San Bernardino County ... - San Bernardino Sun
Asia real-estate bull turns bearish - MarketWatch
Rogue Valley Commercial Real Estate In Upswing - KDRV
Real estate market likely to see an increase in M&A activity - China Daily
Real estate developer says he plans to make cash bid for Philadelphia's 2 ... - Washington Post
Real estate market rebounding - Park Record
Alexandria Real Estate Q4 FFO Rises - Quick Facts - NASDAQ
REAL ESTATE: Refinancing expanding for Fannie/Freddie borrowers - Press-Enterprise
|
 |
|
|
RELATED ARTICLES
Log Homes - What is the Log-Home Lifestyle? Typical log home company advertisements in popular log home magazines talk about the "log home lifestyle" or "it's not just a home, it's a lifestyle." What does this mean? What is "the" log home lifestyle?It's often difficult to discuss the particulars of log home living without also talking about where the log home is located. Understanding Title Insurance Title to a property is a record detailing the owners of the property and rights associated with the ownership. Title typically shows a progression of ownership from the first owner to the current one. The Benefits of A Real Estate Agent 101 Buying and selling property is not as easy as you may think. There are many things that you have to consider when purchasing a home, or when putting a home up for sale. Lock In Big Profits By Offering Rent To Own Deals Why would anyone accept a lease option, rent to own deal? Why would you, as a seller/investor look to find rent to own tenants? How can you use this technique to LOCK IN profits that are much greater than would be found in a straight sale?Basically, the advantages depend on which of two end results occur: either the rent to own tenant completes on the property, or they don't. You make money either way!There are MANY people who have less than sterling credit, might not have a long time on the job, or not have a ton of money for down payment, closing, etc. How to Get Started in the Real Estate Game Fixing and Flipping Houses If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what to type of property to buy. Many real estate investors make millions turning ugly houses into dollhouses. I Believe God Wants Me To Tell All In Real Estate After years of experience in the real estate industry I felt that God wanted me to write about everything in real estate. There were young people that were not being protected by anyone, including buyer's agents. 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. How Do You Profit From O.P.P.? In a previous article we introduced you to the concept of O.P. Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit One of the quickest ways to real estate profits is through preforeclosures. What is a preforeclosure, exactly? A preforeclosure takes place from the time the bank gives notice of default to the time the house sells at auction. Do I Need A Real Estate Survey? Getting a survey before you close on any real estate is very important.Some people actually buy real estate without having a survey done. NAR Broker Will Swear It - Real Pro' Agents Share It - FSBO Truth For posting the "Truth" on your website, some FSBO's will not like you. These prospects would not have listed with you anyway. Property Investing Secrets 1 When property investing, pay the seller their asking price but negotiate the terms under which you can buy property. You'd be absolutely surprised when property investing at how many sellers will help fund you into their property. First-time Home Buyers - 100% Home Loans There is an increasing trend in South Africa that is seeing youths entering property market at a much earlier age. These youths are mostly first-time home buyers, applying for their first home loan, who have been renting for a short while and feel the need to invest in a property of their own. Property for Sale in Bulgaria - Emerging Property Markets 1 The latest investment property headline is this: Popular and well trodden markets such as France and Spain are out, Bansko is in.Where?Bansko, Bulgaria. Stopping Home Foreclosure with Bankruptcy Bankruptcy Will Stop Your Sale - At Least For NowFor $395, you can stop your sale- at least that is what the ads say. You are about to find out how bankruptcy can be good or very damaging. Location, Location, Location Location, location, location - known as the 3 most important factors when buying a property, and it is easy to see why. The location of your property dictates how much yield you get, and how much capital growth, which ultimately decides how well you do. Questions To Ask The Landlord Before Renting His Apartment Apartment hunting is not the easiest thing around. You may find places not suited to your tastes or those which do are not to your budget. 11 Different Ways to Participate in The New Millennium Real State Boom Many parts of the country are going through a real estate boom. In recent reports real estate is showing double digit growth in many parts of the country. 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. Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced Properties Are Available... Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced properties are available if you know how to buy them. By Jody Hudson - Realtor since 1972.
|
|
Looking For Royalty Free Photos for your Website, Business or Advertising?
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2011 |
|
