Affordable Florida Homes » FSBO

How to Get Nonrecourse Private Hard Money Loans

lvine — Tue, 01 Jun 2010 05:15:38 +0000

Both real estate investors and hard money lenders want to reduce risk. One way for an investor to do that is to create an LLC or Corporation for the specific deal . This is still an advantage for a borrower who can only obtain investment property financing a private hard money lender because of poor borrower credit . This type of loan can be a NON-recourse loan which means, that you as the investor is not obligated on the loan .

Some private hard money lenders require that the transaction be structured this way because the “entity” is clean, meaning it has no liens, judgments, and hidden liabilities, including mechanic liens possibly cloud the title of the property. Another way for an investor to set up a non-recourse hard money loan is to put the property intot a self-directed IRA, which also defers the tax on profits and can be an excellent way to build retirement. A third way for an investor to set up a NON-recourse hard money loan is to set up a title holding trust or a land trust. Remember, private hard money lenders are asset based lenders. There are many ways to get more or less the need for putting cash into the deal, including cross-collateralization, pledged notes secured by other properties, buying right at the correct LTV, solid exit strategies, pocket buyers, etc .

The entity type you choose for your deal can give you greater flexibility. For example, an self directed IRA can be “assigned” a contract by adding the words “and or assigns” in the contract to buy the property or the written offer made on behalf of a self directed IRA. The techniques offers not only asset protection but also for deferring income tax on “flip transactions” because profit goes back into the designated IRA .

Real estate investors seeking deals with limited recourse or non-recourse should consider the options attached with setting up executable investment entities. These entities cost little to set-up and give a real estate investor a considerble quantity of protection and versatility in investing strategy. It is not strange for an investor to set up a different entity for each different property.

In making offers, many real estate investors will use an “assignable” clause in the purchase contract to acquire the property so as not to create a red flag for the seller. Rehab hard money lenders frequently will consider non-recourse in the commercial segment of the real estate market for income-producing properties, particularly .

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How to Get Nonrecourse Private Hard Money Loans

lvine — Mon, 31 May 2010 04:25:36 +0000

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How to Get Nonrecourse Private Hard Money Loans

lvine — Sun, 30 May 2010 17:30:50 +0000

Is it convenient to refinance both mortgages?

lvine — Sun, 30 May 2010 04:43:21 +0000

To refinance a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage.

Will A Refinance Benefit You?

Refinancing two mortgages allows you to consolidate your loans into one payment, practically lowering your monthly bill. You may also find lower rates under the right circumstances.

Those with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to look at interest savings, not just monthly numbers which can be misleading.

However, if you have less than 25% equity, you may end up qualifying for higher rates. With less than 20% equity, you will also have to pay for private mortgage insurance. Even with these factors, you may still find that you will save money by refinancing.
Have You Done Your Homework?

To see if refinancing makes sense for you, research mortgage lenders. You can quickly go online and request quotes and terms. Look at the another(a) offers, and work out the numbers. An online mortgage calculator can help you figure out monthly payments and interest costs.

An easy way to compare cost is to first add up your interest payments for both mortgages. Use this number to compare interest payments with each potential mortgage.

Factoring in the cost of the refinance is very necessay when considering a refinance. Just like with your original mortgage you will have to pay closing costs that you will need to recoup with monthly savings in your payment.
Why Do You Want To Refinance Both Mortgages?

While refinancing both mortgages is convenient, you may decide to refinance only one or both separately. With your main mortgage, you can expect to get low rates.

A second mortgage will usually qualify for higher rates, but you can lock them in. You may also choose to convert from a line of credit to an actual mortgage. Again, you will want to investigate financial packages before signing up with a lender.

Do Outdoor Firepits Help Sell a For Sale By Owner Property?

Guest Blogger — Sat, 22 May 2010 11:43:05 +0000

In real estate terms, for sale by owner…that is a major challenge. This may seem like a daunting endeavor, but it is by no means impossible. Although your house has been listed with a Realtor, there have been no new developments. You do not need to listen to a Realtor who tells you that it can’t be done your way if you have your own ideas as to how your home can be better sold…Commission is received when the product is sold. Maybe I should send you a few ideas if you’re ready to sell your house on your own now.

Today there are all kinds of ideas to get attention focused on your home. Some say that cooking early each day will work. Just the smell of cinnamon and baking may make people feel at home before they even complete a tour of your house. Another idea among the more expensive FSBO homes is to have wine tastings as part of the tour.

If, on one side, you need to rise early in the morning to bake cinnamon rolls before you go to your job, or on the other side, you have to handle an alcohol connected fight, you might be searching for some way to have your house examined properly, and sell it.

A fire pit could be exactly what you need. A fire pit is a simple and affordable way to improve the image of your house if you are looking to sell. This means that you basically need a hole in the ground. You will need to make a protective area out of rocks or bricks or you can use a metal cauldron designed toÂ hold wood fires.

Next, you want to figure out which method will be best to start your fires. Some really nice
outdoor firepits have a gas jet and lava rocks. You have adjustable flames, and lava rocks that hold and radiate the heat. However, it is not necessary to go to that extent.
Thereis an option for a fire pit that utilizes wood.

The addition of a fire pit will draw more interest to your property sale. Men may feel especially driven to examine this. Aromatic woods like pine will enhance your fire pit. You will get a similar result if you pour some incense powder into a gas fire.

If your house has a built-in fire pit, it may be easier to sell because people looking for a new home would likely find the fire pit appealing and may be drawn to purchase such a house.

Are You Unknowingly Involved In A Short Sale Fraud?

Guest Blogger — Sat, 22 May 2010 11:41:04 +0000

http://www.youtube.com/watch?v=nIWJcb3tkWQ&feature=youtube_gdata

Short Sale Fraud – It’s not a law; nor is it an official policy, but it’s definitely going to be a problem regardless. The latest opinion released from Freddie Mac on short sales presents legal and practical issues for short sale investors.

Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.

The rest of the article detailed scenarios and red flags for “short payoff” fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not disclose that he already has an outstanding offer for $95,000 from a second end-buyer. When the transactions close – in this case on the same day – and the facilitator pockets the difference, according to Freddie Mac he has just committed fraud because he withheld information about a higher offer and causes Freddie Mac to take a “larger than necessary” loss on the sale.

The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Flags include sudden default without explanation, borrowers current on other debts and buying entities. Additionally, they encourage people to look for an option clause in their purchase contracts that allow the buyer to resell the property.

Finally, sellers, buyers and lenders are all encouraged to report this short payoff fraud if they are aware of a second purchase contract for a higher price. This may not yet be a law, but the signs are not good when Freddie Mac has posted such a direct attack on short sale investors.

Real Estate Investing Basics For Today’s Market

Guest Blogger — Thu, 25 Mar 2010 00:50:21 +0000

Bulk REO Real Estate Investing

It is likely that you think of a number of things when you hear the words virtual real estate investing. If you are already familiar with real estate investing you may think of short sales, bulk reo investing and virtual real estate investing or you may think of it in terms of real estate portfolios and real estate retirement plans or even hard money lenders. Likely you also wonder how these things will factor into your life as a real estate investor in the current economy.

There is a lot of information out there on real estate investing. To get the most out of real estate investing education, be familiar with basic information ahead of time. Short sales, bulk reo sales, virtual real estate and general real estate investor abilities all are improved by knowing some basics of real estate investing. Here are three real estate investing basics that even some experts do not really know:

1. Real estate investing education is a true investment that always has a positive yield. Each real estate deal can represent thousands of dollars in potential wealth. Getting the wealth is the key to your success. Knowing more about real estate betters your odds of success when you do a real estate deal. Small investments in education yield big results upon implementation.

2. Any economy allows for success in real estate investing. Many people are under the misconception that success is possible in real estate only when the economy is good. In reality, poor economies are great for real estate investors. You frequently can get properties at deep discounts. Additionally, you may find deals that would not exist in a booming economy. Real estate investing may also turn the tide for a poor economy. When the economy is not so good, short sales, bulk reo sales and virtual real estate are great. You will be able to save yourself and others from serious financial difficulties if you know how to do these deals.

3. A lot of money is not vital to your success as a real estate investor. You can succeed in real estate investing no matter how much money you have. There are many deals that will let you use other people’s money to do them. Private lenders will let you use their money if they know that you are a good investment. An investor who is a good investment knows as much as they can when it comes to real estate investing. This will help you show private lenders that you are a good investment if they do not know about real estate investing themselves.

Real estate investing is a good way to generate a great deal of wealth. You will have the ability to create income in any economy. You can create success for yourself using knowledge of real estate investing, short sales, bulk reo sales and virtual real estate. Knowing the basics of real estate investing will help you succeed as a real estate investor. Knowing some real estate investing basics (beyond what older gurus like Robert Allen teach) and applying them will help you succeed as a real estate investor.

Great real estate investing resources are available at RealEstate.BryanEllis.com.

Real Estate Investing in 2009 And Beyond

Guest Blogger — Thu, 18 Mar 2010 02:54:31 +0000

Bulk REO Real Estate Investing

It is likely that you think of a number of things when you hear the words virtual real estate investing. You might immediately leap to real estate investing being real estate portfolios and real estate retirement plans and hard money lenders or you may think instead of short sales, bulk reo investing and virtual real estate investing. You likely also are wondering how these things factor into real estate investors roles in the current economy.

You will need to know a lot about real estate investing. To get the most out of real estate investing education, be familiar with basic information ahead of time. Whether you are interested in short sales, bulk reo sales, virtual real estate or just improving your abilities as a real estate investor, you need to know some real estate investing basics in order to succeed. You should review these three real estate investing basics to learn things even some experts do not know:

1. You will always get a positive yield with real estate investing education. Every good real estate deal represents thousands of dollars in potential wealth. Knowing how to get that wealth is the key to success. Knowing more about real estate betters your odds of success when you do a real estate deal. Small investments yield big results when you invest in learning and then implement what you learn.

2. Any economy allows for success in real estate investing. Many people think that you can only succeed in real estate when the economy is booming. Actually a poor economy is not a bad economy for real estate investors. You can often find properties to buy at deep discounts. Additionally, you may find deals that would not exist in a booming economy. Poor economies can turn based on active real estate investing. When the economy is not thriving, short sales, bulk reo sales and virtual real estate can all thrive. You can save yourself from financial difficulty along with others by knowing how to do these deals.

3. You do not need lots of your own cash to be a successful real estate investor. You can succeed in the real estate investing arena no matter how much money you are working with. There are lots of types of deals that you can perform with the money of other people. If you appear to be a solid investment you may be able to use a private lender’s money. The best way to look like a solid investment is to have an in-depth knowledge of real estate investing. This will help you show private lenders that you are a good investment if they do not know about real estate investing themselves.

Real estate investing is a good way to generate a great deal of wealth. You can create income regardless of the economy. You can create success for yourself using knowledge of real estate investing, short sales, bulk reo sales and virtual real estate. Knowing the basics of real estate investing will help you succeed as a real estate investor. Knowing some real estate investing basics (beyond what older gurus like Robert Allen teach) and applying them will help you succeed as a real estate investor.

Great real estate investing resources are available at RealEstate.BryanEllis.com.

Real Estate Investing Basics For Today’s Market

Guest Blogger — Fri, 12 Mar 2010 22:31:49 +0000

A number of things likely come to mind when you think of virtual real estate investing. If you are already familiar with real estate investing you may think of short sales, bulk reo investing and virtual real estate investing or you may think of it in terms of real estate portfolios and real estate retirement plans or even hard money lenders. You probably also wonder how these things play out in real estate investors life in the current economy.

You will need to know a lot about real estate investing. Knowing the basics of real estate investing education is a good way to get the most out of every lesson. Whether your target is short sales, bulk reo sales, virtual real estate or improving real estate investor abilities, you need to know some real estate investing basics. You should review these three real estate investing basics to learn things even some experts do not know:

1. You always will get a positive result from investing in real estate investing education. Each real estate deal can represent thousands of dollars in potential wealth. Getting the wealth is the key to your success. Learning as much as possible about real estate will increase your odds of success whenever you do a real estate deal. A small investment in education has the ability to yield big results when it is implemented.

2. Any economy allows for success in real estate investing. Lots of people believe that real estate success is only possible in a booming economy. You should remember that a bad economic situation is not usually bad for real estate investors. You can often buy properties at deep discounts. You might also find deals that simply would not exist in a booming economy. Real estate investing often is what turns the tide for poor economies. When the economy is not so good, short sales, bulk reo sales and virtual real estate are great. You can save yourself from financial difficulty along with others by knowing how to do these deals.

3. You do not need to have a great deal of money if you want to be a successful real estate investor. You can make a success of real estate investing no matter how much or little money you have. There are lots of deals that you can use other people’s money to do. Private lenders will let you use their money if they know that you are a good investment. The best way to be a good investment is to know as much as possible about real estate investing. Then you will represent a good investment to other people who have money for real estate investing but do not know how to use it.

Real estate investing is a great way to generate wealth. You can create income regardless of the economy. You can create success for yourself using knowledge of real estate investing, short sales, bulk reo sales and virtual real estate. Knowing the basics of real estate investing will help you succeed as a real estate investor. Knowing some real estate investing basics (beyond what older gurus like Robert Allen teach) and applying them will help you succeed as a real estate investor.

Great real estate investing resources are available at RealEstate.BryanEllis.com.