|Real Estate Information|
How I Became a Hard Money Lender
Unlike other investors, my venture into real estate was a natural extension of my secondary business as the IP Ware software developer. However, opportunity and perseverance beget wealth, or at least a decent side income.
Aside from my ventures into lease optioning residential property, I and my partner have managed to acquire a number of properties with our own credit. However, when looking at our finances and the return we were getting for the amount of effort involved, we both decided there must be a better way. That is when it occurred to me. Instead of trying to leverage our existing assets for a diminishing return, perhaps we could be the bank.
Here is the scenario as it has played out. First of all, we control a decent number of properties with our own credit. Most were purchased with 100% financing using multiple capital sources. However, each contains only a primary lean and is financed using standard mortgage terms. Subsequently, there is a 20% secondary credit position available on each of these properties.
Now normally, an investor would use this 20% equity stake in the existing properties to leverage the purchase of more properties. However, our approach has been a bit different. Because interest rates are so low, we can borrow against the 20% equity position in each of the properties and loan this money to investors who need short terms financing to control and rehabilitate properties. Essentially, we are using our existing properties as collateral to borrow money at the going finance rate and loan it out at substantially higher rates of return. We have become the bank.
For investors who need money fast, this system works out beautifully. They pledge their property as collateral, and we loan out up to 75% of the purchase price. All parties benefit, and investors with opportunities that do not need long term financing have a source of funds to do their deals. Everyone wins.
If you are thinking of setting up this type of program yourself, there are a significant number of legal caveats that you must be aware of. The first is the company funding the second lean holder position on your existing properties must be aware of and amicable to what you are doing. This is a legal requirement of which there is no way of avoiding without committing fraud. Next, the usury laws in your state determine the maximum interest rate you can charge your customers. There are a host of additional laws that are more specific to the lending process, but a good lawyer will help you work through them.
Regardless, there is a decent return to be made helping others do their deals. Use your existing properties to secure the funds to lend, and make sure you have an experienced lawyer to help you sort out the details.
At Home In Your Overseas Home
Homeownership, in any form, is a big step for most people. In fact, its often one of the biggest financial decisions of our lives. Despite that, sometimes a homeowner in one country will want to buy a second home in another country, whether for a vacation home or future retirement. Usually they make this decision after realizing they visit the same country every chance they get, but sometimes its because they have relatives or friends nearby too.
Building Your Online Portfolio
So you want to start earning online and have invested some of your hard earned cash in a couple of online programs but have you really thought about what you are investing in.
Be a Realtor with Curb Appeal
Are you a realtor with curb appeal or are you more of a fixer-upper needful of updating
How To Make Easy Money on the Internet -- But This Time Its Actually TRUE!
Reducing Debt Before Its Too Late ... How To Avoid The Pitfalls Of Creeping Debt
Reducing debt usually isnt a high priority for people until they have already gotten into trouble with overspending. Using a few basic guidelines, and debt calculations, can help you see when your debt load is getting into the danger zone.
Is "Earning a Living" Stopping You
Every year, people resolve that THIS New Year will be different: "This will be the year that I write that book, start that new venture, double my income, take more time off to spend with my family," and the list goes on and on. However, when people think about pursuing their dreams, they often squash the idea because it doesnt seem practical.
Customer Service – the Real Estate Revolution
Traditionally, real estate has been viewed as a sales industry. But perceptions are changing. Agents around the country are coming to believe that the key to real estate success is service – not sales.
13 Steps to Increasing Your Link Luck
Link development can be an absolute nightmare. It takes up most of a marketer’s time and the yield isn’t always what we originally hoped. Worrying about PR, one way inbound links, triangle linking, where to find quality sites to exchange with, it’s all just a huge headache. To be honest, there’s no real way to wash your hands of it, unless you have a huge budget for purchasing text links or to hire someone to do your linking for you. So here are 13 ways to increase your linking luck. They require a little bit of effort, but executed properly, these steps will only bring your site success.
Perhaps you’d like to take advantage of today’s great buyer’s market in housing but feel a little intimidated by everything that’s involved.
More Bang for Your Buck With Mortgages
Choosing a knowledgeable mortgage lender can make a difference in the quality of home you are able to purchase with your finances. I prefer to recommend a mortgage broker to my clients, because they usually offer 50 or more programs. Regular mortgage companies are usually locked into one source. Take time to research a mortgage lender. And, remember, creative financing can be the way to go if you need a higher priced home with more space.
How To Realistically Set Your Fees - Part 3
Effect of Benefits
How Can the Average Person Build Wealth in Real Estate
Books on real estate are a dime a dozen—and most focus on taking advantage of someone else’s misfortune. They frequently describe lofty methods for buying and selling properties no ordinary citizen can be successful using.
It Takes Two - How to Cultivate Profitable Alliances
“Cross promoting with other businesses can give you a significant advantage over the competition, with many benefits and cost savings.” -Heidi Richards-
The Real Estate Bubble Fallacy
There has been a lot of talk lately about the "Real Estate Bubble", and a lot of folks are asking the question: "When it is going to burst"
Finding Your Niche
Have you found your niche
When is the Best Time to Move
As Realtors, we are often asked, "When is the best season to move" This is a tough question, one we cannot answer for you. Most people are asking about price, do they fluctuate throughout the year NO. Just the number of homes on the market changes; of course the number of buyers changes as well. Hopefully this article will help you make this decision for yourself and your family.
How to Research and Purchase a Good Investment Property
How to Research and Purchase a Good Investment Property
Determinants Of Success- Revisited, Again.
If you have been a long time subscriber to this newsletter you have read about the determinates of success before. If you are new, hold on to your hat because this is some powerful stuff.
Flipping Fixers: Using Transformation Psychology for Top Dollar
Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a fixer into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits.
5 Hot Internet Businesses For 2005
If you are planning to start a new business in 2005, you should seriously consider one of the many Internet based businesses available today. The online businesses have numerous inherent advantages in comparison to their brick and mortar counterparts.
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