There is a simple way to make money in real estate, you can sell properties for more than what you paid for them. But a factor to consider is when investing in real estate, the money you pay to others is on top of the money paid to the property owners. In the past interest paid to the banks or lenders was the most costly expense of a real estate investor.
Thankfully our Federal Government stepped in to help in the subprime crisis. As a result interest rates are falling to exceptional lows. The money that an investor now needs to invest cost less, and the interest you pay on your investment has decreased greatly.
To make this "Perfect Storm" something that will work for you, your going to have to find out the best ways to obtain funding. You can do this no matter what your personal financial situation is. You can discover the optimal strategies that you can use in the current market place and profit form real estate investing. There are great ways to accomplish investing in any type of foreclosure property, all you have to do is seek them out.
When they started lowering interest rates, this was the first wave to a "Perfect Storm."
Sunday, August 16, 2009
Supply!
As people hitched a ride on the real estate bandwagon, many of them were not prepared for the future. As you know, hindsight is 20/20, but the signs became apparent to people who had paid more money for their homes than they should have.
In that time, selling was so easy, no one could foresee that the bottom of the real estate market was about to fall out. Supply was the factor that made way to that end. As new homes continued to be built, the supply shot way above that of the demand, leaving a hoard of people that couldn't afford their mortgages. Hard times increased as homeowners entered into the pre-foreclosures and actual foreclosures of their homes. The situation became so bad that our federal government had to debate the future of real estate and what it could do to help the victims of this crisis. But if you were a smart real estate investor the answer was clear. BUY, BUY, and BUY!
Some people depend on the selling of their homes to get a second chance and foreclosure investors can be the answer to that difficult problem. A foreclosure investor can help ease the financial pain of those people while helping them to insure the future or their own success.
Today there is a huge supply of properties, so grab your piece of pie to a better life!
This problem has presented access to a "Perfect Storm."
• Interest rates are lower.
• Prices are lower.
• Properties in high supply.
With these three things you can make money in today's real estate market. So if your holding on to a real estate note that your receiving monthly payments from. Why settle, I can help you get CASH for those future payments so you can take advantage of these opportunities of investing and getting great deals from today's real estate debacle.
Visit my website at: realnotesrealcash.com to find out how you can free up capital and take advantage of these unprecedented opportunities!
In that time, selling was so easy, no one could foresee that the bottom of the real estate market was about to fall out. Supply was the factor that made way to that end. As new homes continued to be built, the supply shot way above that of the demand, leaving a hoard of people that couldn't afford their mortgages. Hard times increased as homeowners entered into the pre-foreclosures and actual foreclosures of their homes. The situation became so bad that our federal government had to debate the future of real estate and what it could do to help the victims of this crisis. But if you were a smart real estate investor the answer was clear. BUY, BUY, and BUY!
Some people depend on the selling of their homes to get a second chance and foreclosure investors can be the answer to that difficult problem. A foreclosure investor can help ease the financial pain of those people while helping them to insure the future or their own success.
Today there is a huge supply of properties, so grab your piece of pie to a better life!
This problem has presented access to a "Perfect Storm."
• Interest rates are lower.
• Prices are lower.
• Properties in high supply.
With these three things you can make money in today's real estate market. So if your holding on to a real estate note that your receiving monthly payments from. Why settle, I can help you get CASH for those future payments so you can take advantage of these opportunities of investing and getting great deals from today's real estate debacle.
Visit my website at: realnotesrealcash.com to find out how you can free up capital and take advantage of these unprecedented opportunities!
Saturday, August 15, 2009
Real Estate Prices
This may be obvious, but look at some of the selling prices of people who own homes and aren't facing a foreclosure, look at what they are willing to accept for their property!!!
Like it or not, prices are falling which leads us to ponder why we are experiencing this effect. The answer is simple. The law of supply and demand in real estate is a hard one to break. When the demantd for real estate rose the prices rose. Suddenly, we found ourselves in a place where fewer people had the resources to continue to buy and invest in the real estate market at such a high price. The demand decreased and as the law dictates so did the prices. This also led to the rise of many foreclosures as the prices declined.
Real estate investment prices are lower than ever. NOW! is the absolute best time to learn and profit from investing in foreclosure properties. Of course there is no guarantee that prices will remain low so the time is to get, while the getting is good.
If you were wondering, yes, there are still many buyers looking to pay fair market value (also known as a price higher than that of a foreclosure investment.) This mean even at the prices you'll get on a foreclosed property, you can still turn around and sell it and offer your buyers the feeling that they are walking away from the table with an awesome deal.
Like it or not, prices are falling which leads us to ponder why we are experiencing this effect. The answer is simple. The law of supply and demand in real estate is a hard one to break. When the demantd for real estate rose the prices rose. Suddenly, we found ourselves in a place where fewer people had the resources to continue to buy and invest in the real estate market at such a high price. The demand decreased and as the law dictates so did the prices. This also led to the rise of many foreclosures as the prices declined.
Real estate investment prices are lower than ever. NOW! is the absolute best time to learn and profit from investing in foreclosure properties. Of course there is no guarantee that prices will remain low so the time is to get, while the getting is good.
If you were wondering, yes, there are still many buyers looking to pay fair market value (also known as a price higher than that of a foreclosure investment.) This mean even at the prices you'll get on a foreclosed property, you can still turn around and sell it and offer your buyers the feeling that they are walking away from the table with an awesome deal.
Friday, August 14, 2009
To Sell Or Not To Sell?
Ask Yourself That Question.
PAYEE/MORTGAGEE = Owner of the a note usually secured by real estate.
PAYOR/ MORTGAGOR = Property buyer that pays a monthly payment to the holder of the note that is bound by a legal contract.
PAYOR/ MORTGAGOR = Property buyer that pays a monthly payment to the holder of the note that is bound by a legal contract.
Many people that end up with a note, never really wanted the note in the first place. They would have rather had cash, but in order to get their home sold, they had to carry back the financing and they ended up holding a note and receiving monthly payments from a payor.
Did you know there is a way to cash in those future note payments for a lump sum of CASH? You can accomplish this by selling your notes future payments for cash and end the worries and hassles of collecting payments forever.
This is where my company can help. I work with a network of buyers that will offer you top dollar for your future payments.
The only thing that changes for the person who is the payor is the address as to where they will send their payments. Nothing else changes, no changes in interest rate, no changes in the terms of the loan, everything stays the same. You just walk away with cash! You could invest, take that vacation of a lifetime, or buy that car of your dreams, without ever having to make a car payment! The options are endless.
I know if I was the holder of a note and with real estate selling 30-60 cents on the dollar, I'd be thinking about getting cash for my note and taking advantage of some of those real estate deals!!!
Wednesday, August 12, 2009
A Tip About Title Insurance.
The importance of title insurance. In a recent transaction, I heard an escrow officer tell me "No need for title insurance." This sent up a huge red flag because it's dangerous and wrong information. This information came from someone that I was suppose to trust. He was also a friend and a fellow real estate professional.
So here it is, in black and white, okay black, orange, and purple, if your gonna be picky! Never, yes, never buy any kind of real estate without getting title insurance. If there is no existing policy, then be smart and get one.
Here's what title insurance does for you:
• Adds you as the insured.
• Insures that any liens are valid and enforceable.
• Insures that you are in the senior position.
• Insures that you have a valid and enforceable assignment to the real estate, free and clear of any liens.
They do not insure against any invalid information that was used as a violation of any consumer credit or truth in lending law. Be very careful of hard money lending. If this is a real estate transaction using a carry back note you should be safe. Additional safety tips would be to use a seller-financing disclosure statement in states where seller financing is used especially in the sale of real estate through a real estate agent. Always ask for a copy of any paperwork involved.
Monday, August 10, 2009
Time Value of Money
Has anyone heard the phrase "The Time Value of Money?" Basically it's why a dollar is worth more today, than it will be tomorrow. A note holder can hold on to a note and collect payments for 30 years but the value of the original note will not be the same as it is today. In considering the value of a note, one of the most important things you have to look at is the length of time it will take to collect all the payments. The longer you wait the less buying power the money has because of inflation and economics.
If I held out my hands and in one there was a $50 and in the other a $100, which would you take? Of course you'd take the $100. Now if I told you you could have the $50 right now but the $100 over the next 5 years, which one would you take. Of course it would be the $50.
Thus the term the "Time Value of Money." Cash now is of more value than cash that is to be received in the future. By selling a note that's secured by real estate, you can get a lump sum of cash for your future payments and end the hassles of having to collect those payments and end the fear that they may default.
In this down economy you can sell your present note and use that lump some of cash to take advantage of the real estate deals that are selling for 30-60 cents on the dollar. Now is the time to buy! Donald Trump agrees!
We all have no idea what the future holds, do we? In the blink of an eye, our whole world can be turned upside down. Some of the reasons note holders sell are:
• Getting a lump sum of cash instead of waiting for small payments over time.
• Medical emergencies.
• Access to immediate cash to pay off tax dept.
• Access to cash to pay off credit card debt.
• Paying for their kids college education.
• Cash for a new home or business.
• Finally taking that vacation of a lifetime.
• Cash for retirement investing.
• Divorce.
• Dissolution of a partnership.
• To separate an inheritance.
There are numerous situations where a note finder may find themselves in a position to sell their notes. Usually, the most important reason is that they didn't want the note in the first place, they wanted cash!
If I held out my hands and in one there was a $50 and in the other a $100, which would you take? Of course you'd take the $100. Now if I told you you could have the $50 right now but the $100 over the next 5 years, which one would you take. Of course it would be the $50.
Thus the term the "Time Value of Money." Cash now is of more value than cash that is to be received in the future. By selling a note that's secured by real estate, you can get a lump sum of cash for your future payments and end the hassles of having to collect those payments and end the fear that they may default.
In this down economy you can sell your present note and use that lump some of cash to take advantage of the real estate deals that are selling for 30-60 cents on the dollar. Now is the time to buy! Donald Trump agrees!
We all have no idea what the future holds, do we? In the blink of an eye, our whole world can be turned upside down. Some of the reasons note holders sell are:
• Getting a lump sum of cash instead of waiting for small payments over time.
• Medical emergencies.
• Access to immediate cash to pay off tax dept.
• Access to cash to pay off credit card debt.
• Paying for their kids college education.
• Cash for a new home or business.
• Finally taking that vacation of a lifetime.
• Cash for retirement investing.
• Divorce.
• Dissolution of a partnership.
• To separate an inheritance.
There are numerous situations where a note finder may find themselves in a position to sell their notes. Usually, the most important reason is that they didn't want the note in the first place, they wanted cash!
Saturday, August 01, 2009
How Much Is My Note Worth?
The most asked question by a note seller is ... How much is my note worth or is it true that I'll have to take a 30% discount? Most people know and understand that notes are sold at a discount. No matter how they ask the question, the answer is, I can't give you a quick answer. The selling price of the note is dependent on many things and their is no such thing as a blanket 30% discount. The discounts can range from a higher to lower %.
In order to give an accurate quote we have to take a look at the particulars, those being the value factors of the loan. An important explanation to consider is the "time value of money." If you can understand this factor you have a great advantage of understanding how this all works. If a seller understands the game rules then they do better at playing the game and are a lot better at getting better price.
9 Value Factors
Major factors in determining a notes value:
1. What's the term of the loan?
2. What's the interest rate?
3. What's the position of the loan (1st. 2nd, 3rd?)
4. Is there a balloon payment?
5. What is the payment amount?
6. Are there any clauses in the contract?
7. What's the properties value?
8. What is the loan to value and the first to second ratios?
9. What is the credit of the payor?
All these things factor the value at the same time but are interdependent on each other meaning that one can affect and can be affected by all the others. Risk and time are involved with all these factors and they are the two main concerns of a potential buyer or investor.
Understanding all these factors as a note seller will help you regardless of the value of your current note because if you ever write another, you will write it in such a way that the value will be significantly higher.
In order to give an accurate quote we have to take a look at the particulars, those being the value factors of the loan. An important explanation to consider is the "time value of money." If you can understand this factor you have a great advantage of understanding how this all works. If a seller understands the game rules then they do better at playing the game and are a lot better at getting better price.
9 Value Factors
Major factors in determining a notes value:
1. What's the term of the loan?
2. What's the interest rate?
3. What's the position of the loan (1st. 2nd, 3rd?)
4. Is there a balloon payment?
5. What is the payment amount?
6. Are there any clauses in the contract?
7. What's the properties value?
8. What is the loan to value and the first to second ratios?
9. What is the credit of the payor?
All these things factor the value at the same time but are interdependent on each other meaning that one can affect and can be affected by all the others. Risk and time are involved with all these factors and they are the two main concerns of a potential buyer or investor.
Understanding all these factors as a note seller will help you regardless of the value of your current note because if you ever write another, you will write it in such a way that the value will be significantly higher.
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