363 acres located in Southern Oregon, minutes from Eagle
Point. An outdoorsman's paradise. $675,000
Oregon bargain property for sale
Thursday, October 27, 2005
Oregon bargain property for sale
363 acres located in Southern Oregon, minutes from Eagle
Point. An outdoorsman's paradise. $675,000
Oregon bargain property for sale
Wednesday, October 12, 2005
Investing in Real Estate for Your Retirement (and Now!)
By Ailsa Forshaw
You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Egads! That ain't good!
In general,Real Estate values always go up. There are some Apartments in Calgary (Alberta, Canada) that I wanted my husband to buy (he wouldn't, but that didn't stop me from asking!) about five years ago. Back then, the Apartments were selling for $96,500.00 for a Two Bedroom place, and now that same unit is selling for over $150,000.00. Quite an increase in value, eh? (You're learning how to speak 'Canadian', too!) That's over $50,000.00 in gross profit, for the mathematically challenged (me included!). We sure didn't make that kind of profit in the Stock Market in that span of time.
Now, if that were your Primary Residence (the place you actually live), and you had lived there all that time, you would make that profit tax free. The same profit made on the Stock Market would be subject to regular taxes, which totally sucks, since you were the one to invest in the first place, and you were the one to take the chances, but, them's the laws of the land - what are you gonna do?? That's right, buy Real Estate! Ha,ha!
Buy Apartments or Condos
One of the best bits of financial investment ideas that I ever got was from an old boyfriend of mine, Ben Johnson, the Olympic Runner. (Remember him? Turns out, great guy, bad rap, punished more than any real criminal, very wise business man - funny how the press doesn't focus on that…) Anyway, his idea was to buy 15 apartments and rent them at approximately $1000./month (he lives in Toronto, Canada where the rents are high, if that seems exorbitant to you, or low, if you live in New York, and that seems waaay too cheap! ha,ha!). That would give him a regular 'income' of about $15,000./month, provided that the properties are owned outright. Good idea, eh?
Now, we can't afford that many rental properties, yet, but the idea is a good one. I don't know if he ever actually did that, but he planted a seed in my mind that will allow my husband and I to build a solid foundation for a comfortable retirement.
I happen to be partial to the idea of buying new apartments in a regular Apartment Building as opposed to Town Houses, Duplexes or Single Family Homes, because you don't have to worry about serious repair problems, like a new roof or furnace! Those problems can add up to some serious bills for the Property Owner.
New or well-cared for buildings are unlikely to require repairs within the first five years, and if you purchase in a Condo Development, your renter can pay the Condo Fees, which will cover any major building repairs. You will, of course, be responsible for general up-keep, but even that will be minimal if you have good renters and start with good stuff. If you are reluctant to get into the 'Landlord' game because of the whole 'collecting the rent' thing, you can always hire a Property Management Company. They'll handle everything for you for a relatively small fee.
When you're first looking at Rental Properties, Apartments specifically, try to find one that is relatively inexpensive, and make sure that you are in a financial position to carry all the costs involved if you don't have a renter.
Be careful not to pick up a 'real steal' that needs a huge amount of work - you won't save any money on this one - it could ruin you, financially, too, if there are too many complications in the deal. Again, I prefer new, but an apartment in good repair is fine, too. Only you will know how much you can take on.
Also, check with your Banker or Broker to ensure that you qualify to carry a mortgage on the new property. The Interest Rates are particularly low, right now, so this is a great time to invest in property. The great thing about having rental properties is that not only will you be gaining a perpetual monthly income (the difference between the costs of operation and the rental fee), when you are ready to sell the property, you'll get back all of your initial investment and you'll have the equity spread as well.
If you happen to live in the Property for a couple of years, or so, yourself, then any profit you've made will be tax-free, since it will have been your Primary Residence. Always check with your Accountant to comply with local tax laws. Also, you may be able to hand the property down to your children. Amazingly enough, this is no longer a basic right of a parent in certain countries without some one paying massive amounts of taxes, making it virtually impossible… Man, can't wait to live in the States, again!
Our own plan is to pay off our Mortgage on our Primary Residence, then use the money that we would normally put toward the Mortgage Payment to get a mortgage on a Rental Property - an Apartment.
I like the idea of purchasing a number of apartments on the same floor of an Apartment Building, or at the very least, picking up another apartment in the same building. It seems to me that it would be waaay easier to manage properties if they're close together.
Also, we'd like to have an apartment available for each of our children when they are old enough to move out on their own. They could have the choice of having a room mate, themselves, who would pay them directly for their share of the rent. That way, our children could learn first-hand how to be landlords (Man, I really don't care for that term!) and we wouldn't have to worry about where they're living and whether they have any money for groceries! Scoooore!
The other thing that is key to a comfortable retirement is that the properties you acquire before you retire may be paid off before your actual retirement date, if you have one. If you're living well on your regular income (not including the rental income), then you can put a larger portion of the rental income directly on the Principle of the rental property mortgage. This will give you a higher monthly 'income' later.
(I thought this Ad was really funny!! Of course, It's Great to Be A Landlord, so you can still shoot for that!! ha,ha,ha!)
Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca http://www.theScottishDiet.com
Article Source: http://EzineArticles.com/
You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Egads! That ain't good!
In general,Real Estate values always go up. There are some Apartments in Calgary (Alberta, Canada) that I wanted my husband to buy (he wouldn't, but that didn't stop me from asking!) about five years ago. Back then, the Apartments were selling for $96,500.00 for a Two Bedroom place, and now that same unit is selling for over $150,000.00. Quite an increase in value, eh? (You're learning how to speak 'Canadian', too!) That's over $50,000.00 in gross profit, for the mathematically challenged (me included!). We sure didn't make that kind of profit in the Stock Market in that span of time.
Now, if that were your Primary Residence (the place you actually live), and you had lived there all that time, you would make that profit tax free. The same profit made on the Stock Market would be subject to regular taxes, which totally sucks, since you were the one to invest in the first place, and you were the one to take the chances, but, them's the laws of the land - what are you gonna do?? That's right, buy Real Estate! Ha,ha!
Buy Apartments or Condos
One of the best bits of financial investment ideas that I ever got was from an old boyfriend of mine, Ben Johnson, the Olympic Runner. (Remember him? Turns out, great guy, bad rap, punished more than any real criminal, very wise business man - funny how the press doesn't focus on that…) Anyway, his idea was to buy 15 apartments and rent them at approximately $1000./month (he lives in Toronto, Canada where the rents are high, if that seems exorbitant to you, or low, if you live in New York, and that seems waaay too cheap! ha,ha!). That would give him a regular 'income' of about $15,000./month, provided that the properties are owned outright. Good idea, eh?
Now, we can't afford that many rental properties, yet, but the idea is a good one. I don't know if he ever actually did that, but he planted a seed in my mind that will allow my husband and I to build a solid foundation for a comfortable retirement.
I happen to be partial to the idea of buying new apartments in a regular Apartment Building as opposed to Town Houses, Duplexes or Single Family Homes, because you don't have to worry about serious repair problems, like a new roof or furnace! Those problems can add up to some serious bills for the Property Owner.
New or well-cared for buildings are unlikely to require repairs within the first five years, and if you purchase in a Condo Development, your renter can pay the Condo Fees, which will cover any major building repairs. You will, of course, be responsible for general up-keep, but even that will be minimal if you have good renters and start with good stuff. If you are reluctant to get into the 'Landlord' game because of the whole 'collecting the rent' thing, you can always hire a Property Management Company. They'll handle everything for you for a relatively small fee.
When you're first looking at Rental Properties, Apartments specifically, try to find one that is relatively inexpensive, and make sure that you are in a financial position to carry all the costs involved if you don't have a renter.
Be careful not to pick up a 'real steal' that needs a huge amount of work - you won't save any money on this one - it could ruin you, financially, too, if there are too many complications in the deal. Again, I prefer new, but an apartment in good repair is fine, too. Only you will know how much you can take on.
Also, check with your Banker or Broker to ensure that you qualify to carry a mortgage on the new property. The Interest Rates are particularly low, right now, so this is a great time to invest in property. The great thing about having rental properties is that not only will you be gaining a perpetual monthly income (the difference between the costs of operation and the rental fee), when you are ready to sell the property, you'll get back all of your initial investment and you'll have the equity spread as well.
If you happen to live in the Property for a couple of years, or so, yourself, then any profit you've made will be tax-free, since it will have been your Primary Residence. Always check with your Accountant to comply with local tax laws. Also, you may be able to hand the property down to your children. Amazingly enough, this is no longer a basic right of a parent in certain countries without some one paying massive amounts of taxes, making it virtually impossible… Man, can't wait to live in the States, again!
Our own plan is to pay off our Mortgage on our Primary Residence, then use the money that we would normally put toward the Mortgage Payment to get a mortgage on a Rental Property - an Apartment.
I like the idea of purchasing a number of apartments on the same floor of an Apartment Building, or at the very least, picking up another apartment in the same building. It seems to me that it would be waaay easier to manage properties if they're close together.
Also, we'd like to have an apartment available for each of our children when they are old enough to move out on their own. They could have the choice of having a room mate, themselves, who would pay them directly for their share of the rent. That way, our children could learn first-hand how to be landlords (Man, I really don't care for that term!) and we wouldn't have to worry about where they're living and whether they have any money for groceries! Scoooore!
The other thing that is key to a comfortable retirement is that the properties you acquire before you retire may be paid off before your actual retirement date, if you have one. If you're living well on your regular income (not including the rental income), then you can put a larger portion of the rental income directly on the Principle of the rental property mortgage. This will give you a higher monthly 'income' later.
(I thought this Ad was really funny!! Of course, It's Great to Be A Landlord, so you can still shoot for that!! ha,ha,ha!)
Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca http://www.theScottishDiet.com
Article Source: http://EzineArticles.com/
Sunday, October 09, 2005
Interior Design Secrets to Fixing and Flipping Houses for Top Dollar
"Amazing! Discover the breakthrough real estate investing strategy guaranteed to increase your earnings and help you build wealth for your retirement!"
Explore the one-of-a kind real estate investing system that helps you make more investing in real estate. Design Psychology, a new method of fixing houses using interior design helps you sell or rent for top dollar.
Real Estate Seminar
By Request: New seminar added October 15, 2005 10:00 AM - ?, Learning Center, Lake Elsinore This commercial site is one of the Fisher's Dollhouses! See the "after" live!
Doghouse to Dollhouse for Dollars: How to Find and Fix Houses for Fast Flips or Rentals
This special seminar emphasizes Design Psychology Redesign and Home Staging strategies for fixing houses to sell or rent for top dollar. Learn how to:
Determine profit potential on fixers
Use interior design secrets to fix for less with designer touches that look like a million-dollar home
Fix rentals with materials tenants won't damage--and they'll pay more for!
For beginning real estate investors:
* Find your first home, bargain distressed property, or next "doghouse"
* Finance your property even with bad credit without owner financing
* Fix or transform fixers into dollhouses for less
* Flip or market your real estate for top dollar
* Get a vacation or second home for free!
Your investment in this class: $69 and books. Limited enrollment (small classroom) Reserve space. Real estate seminar.
Copyright 2005 Jeanette J. Fisher.
Explore the one-of-a kind real estate investing system that helps you make more investing in real estate. Design Psychology, a new method of fixing houses using interior design helps you sell or rent for top dollar.
Real Estate Seminar
By Request: New seminar added October 15, 2005 10:00 AM - ?, Learning Center, Lake Elsinore This commercial site is one of the Fisher's Dollhouses! See the "after" live!
Doghouse to Dollhouse for Dollars: How to Find and Fix Houses for Fast Flips or Rentals
This special seminar emphasizes Design Psychology Redesign and Home Staging strategies for fixing houses to sell or rent for top dollar. Learn how to:
Determine profit potential on fixers
Use interior design secrets to fix for less with designer touches that look like a million-dollar home
Fix rentals with materials tenants won't damage--and they'll pay more for!
For beginning real estate investors:
* Find your first home, bargain distressed property, or next "doghouse"
* Finance your property even with bad credit without owner financing
* Fix or transform fixers into dollhouses for less
* Flip or market your real estate for top dollar
* Get a vacation or second home for free!
Your investment in this class: $69 and books. Limited enrollment (small classroom) Reserve space. Real estate seminar.
Copyright 2005 Jeanette J. Fisher.
Monday, September 26, 2005
Why Are There So Few Foreclosures?
Many real estate investors used to specialize in picking up foreclosures. Like other investors, we purchased HUD, VA, and bank foreclosures. In the eighties my husband and I ran a HUD repo real estate office. We bought our last foreclosure in 2003.
Why did the foreclosure market dry up?
Besides the economy providing better employment, mortgage lenders softened their treatment of borrowers.
Since mortgage lenders created programs to help home owners in trouble, foreclosure rates have dipped. Delinquent borrowers now can stay in their houses and "work out" their problems.
Among the programs used: restructuring the note terms to fit the borrower's needs; deferring past due payments to the final payoff of the loan; decreases in interest rates; and sales-in-lieu of foreclosure, which give time to delinquent borrowers to sell their properties to pay off the mortgage instead of foreclosure.
Don't waste you money buying real estate investing books and programs on how to make money in foreclosures.
Copyright 2005 Jeanette J. Fisher
How to Make Money Today in Real Estate Investing
Why did the foreclosure market dry up?
Besides the economy providing better employment, mortgage lenders softened their treatment of borrowers.
Since mortgage lenders created programs to help home owners in trouble, foreclosure rates have dipped. Delinquent borrowers now can stay in their houses and "work out" their problems.
Among the programs used: restructuring the note terms to fit the borrower's needs; deferring past due payments to the final payoff of the loan; decreases in interest rates; and sales-in-lieu of foreclosure, which give time to delinquent borrowers to sell their properties to pay off the mortgage instead of foreclosure.
Don't waste you money buying real estate investing books and programs on how to make money in foreclosures.
Copyright 2005 Jeanette J. Fisher
How to Make Money Today in Real Estate Investing
Friday, September 23, 2005
How to Make Money (Today) with Fast Flips
Many real estate investing "teachers" advise beginning investors to find many houses and to flip the houses quickly for outrageous profits. Perhaps you've seen the claims of real estate gurus telling you how you can make $30,000 to $50,000 per month without any physical work and for little or no money out of your pocket.
Read the rest of the story: How to Make Money (Today) with Fast Flips
Read the rest of the story: How to Make Money (Today) with Fast Flips
Saturday, September 17, 2005
No Money Down Loans
By Max Hunter
You want to buy a home but you do not have money for a down payment or for closing costs? Well, just forget it. At least that is what you have probably been told by people who think they know what they are talking about, but simply do not.
There are many loan packages available for people with no money to put down on the home or for closing costs. The home loan industry has undergone revolutionary changes over the last ten to twenty years. No longer is it true that you need to put down 10% and have enough money for closing costs in order to buy a home. The simple fact of the matter is that there are home loan packages that can get you in a home with no money down, or very little.
Let us first examine the down payment. A down payment is the amount of money towards the purchase price that you pay out of your own pocket. Typically people put between 5% and 10% down on a home when they sign a contract. This is not a legal equirement, but rather an established tradition. If you find a buyer who does not require a down payment on contract and you are approved for a loan with 100% financing, then you need not pay anything out of pocket.
But, just how do you do this? The first thing you need to do is meet with a mortgage professional and get that aspect of the process completed. You will want to have a pre-approval or even a mortgage commitment with contingencies based on home value and
selling price. Armed with this, you will be in a better negotiating position to get a seller to agree to sell their home with no money down. Your lender also may be able to refer you to real estate agents that can help you find a home that you can purchase with no money down. Again, there are no legal obligations to put money down, it is rather just custom and tradition. With the right mortgage lender and real estate agent you will be able to purchase a home without any money out of pocket.
Aside from the down payment you have likely been told that you will not be able to purchase a home without money for closing costs. Closing costs can be anywhere from a couple of thousand dollars to tens of thousands of dollars depending on the value
of the home, the size of the mortgage and other variables. You do not necessarily have to pay closing costs out of your pocket.
There are loan packages available for people that are not able to pay closing costs out of their own pocket. What these packages basically do is inflate the purchase price of the house by the amount of the closing costs and then have the seller pay the closing costs for the buyer with those extra funds. So, for example, if the purchase price of the house is $100,000 and closing costs were calculated to be $4,500 the contract would read that the sale price is $104,500 and would include language that the seller is to pay $4,500 worth of closing costs for the buyer. The seller still gets the $100,000 for the home and the additional amount that was financed goes towards the purchasers closing costs.
Different states have different rules on how the language must read and what closing costs can and cannot be paid by the seller. You will want to make sure you have a full understanding of this process and how this will work under you specific circumstances.
Believe it or not, there are loan packages available that combine both of these examples - no money down and no money for closing costs. The property will need to appraise at a specified amount in order to qualify but the key is understanding that
this very much can be done. It can turn a renter into a homeowner with nothing out of pocket and perhaps even a reduced monthly payment. Mortgage payments can be at or below rent payments depending on the home you pick.
Today's home loan industry is competitive. There are packages available for most people no matter what credit history they have or what funds they have available for the down payment and/or closing costs. Rather than deny your own mortgage application, speak to a mortgage professional to determine if you can begin realizing your dream of homeownership and a brighter financial future.
About the Author: Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at
http://www.homeloanave.com
Source: http://www.isnare.com
You want to buy a home but you do not have money for a down payment or for closing costs? Well, just forget it. At least that is what you have probably been told by people who think they know what they are talking about, but simply do not.
There are many loan packages available for people with no money to put down on the home or for closing costs. The home loan industry has undergone revolutionary changes over the last ten to twenty years. No longer is it true that you need to put down 10% and have enough money for closing costs in order to buy a home. The simple fact of the matter is that there are home loan packages that can get you in a home with no money down, or very little.
Let us first examine the down payment. A down payment is the amount of money towards the purchase price that you pay out of your own pocket. Typically people put between 5% and 10% down on a home when they sign a contract. This is not a legal equirement, but rather an established tradition. If you find a buyer who does not require a down payment on contract and you are approved for a loan with 100% financing, then you need not pay anything out of pocket.
But, just how do you do this? The first thing you need to do is meet with a mortgage professional and get that aspect of the process completed. You will want to have a pre-approval or even a mortgage commitment with contingencies based on home value and
selling price. Armed with this, you will be in a better negotiating position to get a seller to agree to sell their home with no money down. Your lender also may be able to refer you to real estate agents that can help you find a home that you can purchase with no money down. Again, there are no legal obligations to put money down, it is rather just custom and tradition. With the right mortgage lender and real estate agent you will be able to purchase a home without any money out of pocket.
Aside from the down payment you have likely been told that you will not be able to purchase a home without money for closing costs. Closing costs can be anywhere from a couple of thousand dollars to tens of thousands of dollars depending on the value
of the home, the size of the mortgage and other variables. You do not necessarily have to pay closing costs out of your pocket.
There are loan packages available for people that are not able to pay closing costs out of their own pocket. What these packages basically do is inflate the purchase price of the house by the amount of the closing costs and then have the seller pay the closing costs for the buyer with those extra funds. So, for example, if the purchase price of the house is $100,000 and closing costs were calculated to be $4,500 the contract would read that the sale price is $104,500 and would include language that the seller is to pay $4,500 worth of closing costs for the buyer. The seller still gets the $100,000 for the home and the additional amount that was financed goes towards the purchasers closing costs.
Different states have different rules on how the language must read and what closing costs can and cannot be paid by the seller. You will want to make sure you have a full understanding of this process and how this will work under you specific circumstances.
Believe it or not, there are loan packages available that combine both of these examples - no money down and no money for closing costs. The property will need to appraise at a specified amount in order to qualify but the key is understanding that
this very much can be done. It can turn a renter into a homeowner with nothing out of pocket and perhaps even a reduced monthly payment. Mortgage payments can be at or below rent payments depending on the home you pick.
Today's home loan industry is competitive. There are packages available for most people no matter what credit history they have or what funds they have available for the down payment and/or closing costs. Rather than deny your own mortgage application, speak to a mortgage professional to determine if you can begin realizing your dream of homeownership and a brighter financial future.
About the Author: Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at
http://www.homeloanave.com
Source: http://www.isnare.com
Tuesday, September 13, 2005
Hurricane Katrina Boosts Housing Costs Across the U. S.
Tuesday, September 13, 2005
The effect of Hurricane Katrina will spread across the U.S. housing market and economy, the National Association of Realtors stated in an announcement today.
Demand for housing in regions surrounding the disaster area caused a spike in apartment, manufactured homes, and houses rentals.
Chief economist for the NAR David Lereah said "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices. As displaced residents try to get back on their feet in new locations, home sales have spiked - along with rental demand - in regions surrounding the disaster zone. "
Hurricane Drives up Real Estate Construction Costs
Lereah also said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs.
NAR president Al Mansell said "Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished. Apartment vacancies are dwindling and mobile homes will help to address the jump in housing needs."
The effect of Hurricane Katrina will spread across the U.S. housing market and economy, the National Association of Realtors stated in an announcement today.
Demand for housing in regions surrounding the disaster area caused a spike in apartment, manufactured homes, and houses rentals.
Chief economist for the NAR David Lereah said "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices. As displaced residents try to get back on their feet in new locations, home sales have spiked - along with rental demand - in regions surrounding the disaster zone. "
Hurricane Drives up Real Estate Construction Costs
Lereah also said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs.
NAR president Al Mansell said "Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished. Apartment vacancies are dwindling and mobile homes will help to address the jump in housing needs."
Friday, September 09, 2005
Simple Home Staging Solutions
The sunlight streaming in makes this dining space feel welcoming. Notice the round table, perfect for signing contracts...
Home Staging Tips
Wednesday, September 07, 2005
10 Real Estate Investing Benefits
1. You don't have to quit your day job to get started.
2. You're the boss.
3. You use other people's money.
4. You establish a hedge against inflation.
5. You can quickly increase your net worth.
6. You save money on taxes compared to other investments
7. You generate cash flow.
8. You can turn over management and enjoy
9. You help improve neighborhoods.
10. You create a fantastic retirement fund independent of other plans you may have.
Let's look at number nine today. You help improve neighborhoods. This real estate investing benefit is my personal favorite. I love fixing up a dump and turning it into a dollhouse.
Every time we improve a horrible property, other neighbors get inspired to paint and landscape. Sometimes we help the neighbors with advice, tools, and even physical labor. Improving the neighborhood does mean that we make more money. But it's the satisfaction of making a difference in people's lives that really pays.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
Get started today investing in real estate.
Subscribe to this blog and get the rest of the story.
2. You're the boss.
3. You use other people's money.
4. You establish a hedge against inflation.
5. You can quickly increase your net worth.
6. You save money on taxes compared to other investments
7. You generate cash flow.
8. You can turn over management and enjoy
9. You help improve neighborhoods.
10. You create a fantastic retirement fund independent of other plans you may have.
Let's look at number nine today. You help improve neighborhoods. This real estate investing benefit is my personal favorite. I love fixing up a dump and turning it into a dollhouse.
Every time we improve a horrible property, other neighbors get inspired to paint and landscape. Sometimes we help the neighbors with advice, tools, and even physical labor. Improving the neighborhood does mean that we make more money. But it's the satisfaction of making a difference in people's lives that really pays.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
Get started today investing in real estate.
Subscribe to this blog and get the rest of the story.
Tuesday, September 06, 2005
Hurricane Help
Now would be a great time to give away home furnishings you've taken out of your fixers. Check to see if you have Habitat for Humanity near you.
This would help you prepare your home for sale and help those who lost their home.
You could also give Habitat for Humanity money. They like that!
Go to http://www.habitat.org
This would help you prepare your home for sale and help those who lost their home.
You could also give Habitat for Humanity money. They like that!
Go to http://www.habitat.org
Subscribe to this blog
Receive notice of new posts to this blog. We don't collect this email information so you will not be pestered. Just enter your email in the top right box. Enjoy!
Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer
By Jeanette Joy Fisher
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
THREE TIPS TO HELP YOU FIND THE PERFECT FIXER
1. Know Your Market
Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?
Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.
2. Know When "Ugly" Means "Gold"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.
Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.
3. Know When "Ugly" Means "No thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.
If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much does the average rehabbers make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.
When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.
You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher's Doghouse to Dollhouse for Dollars website. Learn about decorating to attract buyers. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics. Free "Design Psychology for Selling Houses" Report
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
THREE TIPS TO HELP YOU FIND THE PERFECT FIXER
1. Know Your Market
Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?
Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.
2. Know When "Ugly" Means "Gold"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.
Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.
3. Know When "Ugly" Means "No thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.
If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much does the average rehabbers make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.
When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.
You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher's Doghouse to Dollhouse for Dollars website. Learn about decorating to attract buyers. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics. Free "Design Psychology for Selling Houses" Report
Friday, September 02, 2005
Real Estate Bubble In Korea
South Korea recently announced a package of drastic tax measures aimed at curbing a real estate bubble. To stop speculation in residences and land in the country, they increased capital gains taxes. Investors who own two homes will pay up to 50 percent, up from previous rates of between nine and 36 percent. Investors who own three homes will pay even more, up to 60 percent.
Global credit rating agency Fitch expressed concern about the tax to stop the bubble in Korea. Fitch reports that the real estate bubble is limited to parts of the country. Fitch also said there was no evidence of a serious real estate bubble in Korea, except for affluent Southern Seoul.
I'm glad we invest in Southern California.
© 2005 Jeanette Fisher. All rights reserved.
Global credit rating agency Fitch expressed concern about the tax to stop the bubble in Korea. Fitch reports that the real estate bubble is limited to parts of the country. Fitch also said there was no evidence of a serious real estate bubble in Korea, except for affluent Southern Seoul.
I'm glad we invest in Southern California.
© 2005 Jeanette Fisher. All rights reserved.
Friday, August 26, 2005
Home Warranties: Are They Too Good To Be True?
By Donald Lawson
What is a ‘Home Warranty?’
A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies.
Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.
Is this too good to be true?
Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. "Yep" he says "Your A/C equipment is shot, you're going need a new one." "Good thing I have this warranty" you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it "serviced" each year or because the service tech says the reason it went out was because of a "Pre-existing" condition.
I've seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that's money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of "we won't warranty it ‘if's’." The Technician who comes to your home may be the one who'll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.
Here are a few reasons I’ve seen Home Warranty Companies deny claims
· Lack of regular maintenance
· Pre-Existing conditions
· Questionable ‘Code’ issues
· Components not installed per the manufacturers installation instructions
The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.
You also want to make sure what the Home Warranty will cover and what it doesn't. I've never seen a policy with blanket coverage so don't assume it will 'cover everything in the home' like some real estate agents tell you. Read the fine print!
What are my options if my warranty company denies my claim?
I'm betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG's office of your state if you've had a denial of a claim in which you feel is legitimate.
Good Luck and read the fine print on those contracts!
Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a multi-inspector firm in Houston Texas. You can find out more about home warranty's on his website at http://www.best2inspect.com
Article Source: http://EzineArticles.com/
What is a ‘Home Warranty?’
A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies.
Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.
Is this too good to be true?
Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. "Yep" he says "Your A/C equipment is shot, you're going need a new one." "Good thing I have this warranty" you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it "serviced" each year or because the service tech says the reason it went out was because of a "Pre-existing" condition.
I've seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that's money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of "we won't warranty it ‘if's’." The Technician who comes to your home may be the one who'll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.
Here are a few reasons I’ve seen Home Warranty Companies deny claims
· Lack of regular maintenance
· Pre-Existing conditions
· Questionable ‘Code’ issues
· Components not installed per the manufacturers installation instructions
The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.
You also want to make sure what the Home Warranty will cover and what it doesn't. I've never seen a policy with blanket coverage so don't assume it will 'cover everything in the home' like some real estate agents tell you. Read the fine print!
What are my options if my warranty company denies my claim?
I'm betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG's office of your state if you've had a denial of a claim in which you feel is legitimate.
Good Luck and read the fine print on those contracts!
Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a multi-inspector firm in Houston Texas. You can find out more about home warranty's on his website at http://www.best2inspect.com
Article Source: http://EzineArticles.com/
Wednesday, August 17, 2005
Doghouse to Dollhouse for Dollars College Seminar
The college sent out the course catalog late. This left little time for readers to sign up to the class. However, the college just called to say the class is NOT cancelled because people have signed up today.
Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
Tuesday, August 16, 2005
Doghouse to Dollhouse for Dollars book cover
I don't know why the graphic artist changed the orignial cover design for the last print. He decided to add the work "by" infront of my name and no one caught that. Also, the fuzzy edges on the pictures look all right on the book when you see the cover full size. However, the fuzz looks terrible online!
Look at the cover on Amazon. How did they make the snappy apple green background look like dog-poop brown? I wonder how long it will take to get Amazon to upload the new book cover. And, what color will it be?
Look at the cover on Amazon. How did they make the snappy apple green background look like dog-poop brown? I wonder how long it will take to get Amazon to upload the new book cover. And, what color will it be?
Monday, August 15, 2005
Third Print of "Doghouse to Dollhouse for Dollars"
Amazon just ordered my last books. Wierd how they ordered the last ten--just the number we had left! This was after they ordered a huge shipment last week. I wish they would order more books at one time instead of every day or two.
We sent the file to the publisher today for the updated book. Don't worry if you already bought the book. The content is the same. The new book just has better writing. After writing four more books, my writing improved.
Anyway, there is something that should have been added to Dollhouse that only is in "Sell Your Home for Top Dollar--Fast." I couldn't convince the publisher to add it to the Dollhouse book or Workbook because they want the books to be different. However, I retain the rights to write articles and reports. So if you want the missing information, which helps you sell your dollhouse, email me. If you purchased from Amazon, I won't have your receipt. Just tell me what you liked about the book that proves you read it.
http://doghousetodollhousefordollars.com
We sent the file to the publisher today for the updated book. Don't worry if you already bought the book. The content is the same. The new book just has better writing. After writing four more books, my writing improved.
Anyway, there is something that should have been added to Dollhouse that only is in "Sell Your Home for Top Dollar--Fast." I couldn't convince the publisher to add it to the Dollhouse book or Workbook because they want the books to be different. However, I retain the rights to write articles and reports. So if you want the missing information, which helps you sell your dollhouse, email me. If you purchased from Amazon, I won't have your receipt. Just tell me what you liked about the book that proves you read it.
http://doghousetodollhousefordollars.com
New "Doghouse to Dollhouse for Dollars" back cover text
Real Estate/Investing
Prosper in Every Real Estate Market
Gain wealth and financial freedom with a unique approach to flipping houses for profit. Most real estate investment strategies limit their profit potential by a "paint & go' approach. Learn to use Design Psychology to transform and sell a house for maximum profit and to finance an investment portfolio worth millions.
Whether you're a beginning or experienced investor, you know the benefits of flipping houses: you work for yourself, set your own hours, take time off between projects, and hope to make some good money. This book leads the way to maximum profit and financial power.
Rise above market trends to create an abundant financial future with Design Psychology
Discover how to:
Find real estate bargains in a saturated market
Finance multiple properties with improved credit
Transform properties to appeal to buyers’ emotions
Market your house to attract top-dollar offers
Create an investment portfolio worth millions
"I wish I had Jeanette's book years ago. I could have made billions instead of millions!" Jackie B., Investor, Newport Beach, CA
'Many investors fix up houses for profit, but not like Jeanette!'
April Strickland, Southern California Realtor
Jeanette Fisher is the author of Sell Your Home for Top Dollar—FAST! Design Psychology for Redesign and Home Staging, and Credit Help! Get the Credit You Need to Buy Real Estate. She has flipped over thirty houses using Design Psychology.
ISBN/price
copyright 2005 Jeanette J. Fisher
Prosper in Every Real Estate Market
Gain wealth and financial freedom with a unique approach to flipping houses for profit. Most real estate investment strategies limit their profit potential by a "paint & go' approach. Learn to use Design Psychology to transform and sell a house for maximum profit and to finance an investment portfolio worth millions.
Whether you're a beginning or experienced investor, you know the benefits of flipping houses: you work for yourself, set your own hours, take time off between projects, and hope to make some good money. This book leads the way to maximum profit and financial power.
Rise above market trends to create an abundant financial future with Design Psychology
Discover how to:
Find real estate bargains in a saturated market
Finance multiple properties with improved credit
Transform properties to appeal to buyers’ emotions
Market your house to attract top-dollar offers
Create an investment portfolio worth millions
"I wish I had Jeanette's book years ago. I could have made billions instead of millions!" Jackie B., Investor, Newport Beach, CA
'Many investors fix up houses for profit, but not like Jeanette!'
April Strickland, Southern California Realtor
Jeanette Fisher is the author of Sell Your Home for Top Dollar—FAST! Design Psychology for Redesign and Home Staging, and Credit Help! Get the Credit You Need to Buy Real Estate. She has flipped over thirty houses using Design Psychology.
ISBN/price
copyright 2005 Jeanette J. Fisher
Tuesday, August 02, 2005
Doghouse to Dollhouse for Dollars College Seminar
Real estate bubble?
No matter what the market does, you can still flourish in the
real estate business with fixers.
Discover how to make top dollar investing in real estate.
Spend four fascinating hours with Interior Design Psychology
expert Jeanette Fisher and learn how to:
1. Find bargain houses in Southern California
2. Finance without owner-financing
3. Fix up doghouses and create magical dollhouses
4. Use home staging strategies that buyers wait in line to
bid on
5. Market your property with advertising psychology
This one-of-a kind real estate system comes to you in two
ways:
1. Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
2. If you can't make the Doghouse to Dollhouse for Dollars
college course, sign up for the Teleclass (conference call):
Real Estate Investing Teleclass: Fixing and Flipping
Houses
Mondays: September 5, 12, and 19 5:00 PM Pacific
Discover how to find, finance, fix, stage, and sell for top
dollar.
Learn how to make a fortune flipping houses or hold for your
future.
Explore new real estate investing strategies.
You're guaranteed to learn new ways to invest in real estate.
The secret to top-dollar sales is in the planning and
redesign to make prospective buyers feel like they must
pay you more because they can't live another day without
your home. If you're already flipping houses for extra
income, you'll love the interior design ideas for making more
money.
Forget the typical "clean it up" and "paint it white" advice.
This teleclass helps you:
1. Find bargains in a crowded investor market
2. Finance fixers when banks want to pass
3. Fix houses using Interior Design Psychology
4. Use Home Staging strategies
5. Market for top-dollar selling.
Included with teleclass
• Email Support from Jeanette
• Extra reports not available in the book
• Private Group Discussion Forum, share ideas and learn
from others interested in real estate investing
Class size limited so each participant gets the same results
as those taking the college course.
How much is your future worth to you? $150. Guaranteed
Satisfaction.
Yes! I want to get started today creating wealth by real
estate investing!
More information about Jeanette's books
Doghouse to Dollhouse for Dollars Book Site
Joy to you!
Jeanette Fisher, Design Psychology professor
Joy to the Home
18475 Grand Ave., Lake Elsinore, CA 92530
(951) 678-8780
No matter what the market does, you can still flourish in the
real estate business with fixers.
Discover how to make top dollar investing in real estate.
Spend four fascinating hours with Interior Design Psychology
expert Jeanette Fisher and learn how to:
1. Find bargain houses in Southern California
2. Finance without owner-financing
3. Fix up doghouses and create magical dollhouses
4. Use home staging strategies that buyers wait in line to
bid on
5. Market your property with advertising psychology
This one-of-a kind real estate system comes to you in two
ways:
1. Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
2. If you can't make the Doghouse to Dollhouse for Dollars
college course, sign up for the Teleclass (conference call):
Real Estate Investing Teleclass: Fixing and Flipping
Houses
Mondays: September 5, 12, and 19 5:00 PM Pacific
Discover how to find, finance, fix, stage, and sell for top
dollar.
Learn how to make a fortune flipping houses or hold for your
future.
Explore new real estate investing strategies.
You're guaranteed to learn new ways to invest in real estate.
The secret to top-dollar sales is in the planning and
redesign to make prospective buyers feel like they must
pay you more because they can't live another day without
your home. If you're already flipping houses for extra
income, you'll love the interior design ideas for making more
money.
Forget the typical "clean it up" and "paint it white" advice.
This teleclass helps you:
1. Find bargains in a crowded investor market
2. Finance fixers when banks want to pass
3. Fix houses using Interior Design Psychology
4. Use Home Staging strategies
5. Market for top-dollar selling.
Included with teleclass
• Email Support from Jeanette
• Extra reports not available in the book
• Private Group Discussion Forum, share ideas and learn
from others interested in real estate investing
Class size limited so each participant gets the same results
as those taking the college course.
How much is your future worth to you? $150. Guaranteed
Satisfaction.
Yes! I want to get started today creating wealth by real
estate investing!
More information about Jeanette's books
Doghouse to Dollhouse for Dollars Book Site
Joy to you!
Jeanette Fisher, Design Psychology professor
Joy to the Home
18475 Grand Ave., Lake Elsinore, CA 92530
(951) 678-8780
Monday, August 01, 2005
Beware of "Subject To" Promises
Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages."
This simply isn't true.
First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.
I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances one rental occasionally to take his family on a first-class vacation.
Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.
For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.
Of course, some investors offer "subject to" and lease options purchases. But, properties with most of the equity stripped out come with payments too high for the rental income to support.
Beware of "subject to" promotions. This real estate investing method worked last century, not today.
Copyright (c) 2005 Jeanette J. Fisher. All Rights Reserved.
Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com
This simply isn't true.
First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.
I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances one rental occasionally to take his family on a first-class vacation.
Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.
For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.
Of course, some investors offer "subject to" and lease options purchases. But, properties with most of the equity stripped out come with payments too high for the rental income to support.
Beware of "subject to" promotions. This real estate investing method worked last century, not today.
Copyright (c) 2005 Jeanette J. Fisher. All Rights Reserved.
Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com
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