Investing In Real Estate With Lease Options

Other names for a lease option are a rent-to-own or lease purchase. A lease purchase is different in the fact that the buyer is committed to purchasing the property, not just merely have the option to purchase it.

Some reasons why you would buy a lease option property are so you could have enough time to make the repairs before committing to a mortgage. The reason why you would want to do the repairs before you close on the loan is so the appraisal will come in higher. This will help you apply for the loan as far as the LTV is concerned.

Another reason why you might be delaying the closing is to avoid capital gains tax by owning the property for a year before closing the transaction. If you sell the property in less than a year then it gets added to your income tax at the end of the year.

In a lease/option, if you are the buyer, you are in charge of the property but you do not own it. The owner cannot sell the property either because it is locked up by the buyer. Sometimes the buyer may pay higher rents for the term of the lease in consideration for not being able to sell the property.

If the rents in the area are lower than the mortgage payment, then in your lease/option agreement, you can insert a consideration package. This consideration package is a non-refundable down deposit that can be used to offset your negative difference between the lease payment and the mortgage payment

For Example, Bob Jones purchased a property for $200,000 and the mortgage on that property was $1500. He advertised a lease option and buyer, 2 weeks later, showed interest in the property. However they could only afford $1400 a month for a lease payment. Mr. Jones could put together a consideration package to offset the $100 negative difference he would have. The terms of a 6 month lease agreement would be that the couple pays $1,400 a month with an upfront consideration deposit of $1,400 in addition to the down deposit of first and last month’s rent. $1,400 dollars would be spread over the course of 6 months distributing $100 each month to make up the negative difference, thus paying your mortgage each month until they exercise the option to purchase. This package deal would also be putting $100 a month into your own pocket as well. Since the couple offered to purchase the property at $235,000 this would be worth, pretty much, breaking even for 6 months with a return near $35,000 at the end of 6 months. You can see how a lease option can be beneficial.

A lease/option will look very similar to a Read the rest of this entry »

Real Estate Investing – Short Sales & Trustee Sales

Short Sales! Short Sales! Short Sales! What a great way to make money in real estate. Now, don’t get me wrong, my enthusiasm here should not just limit your investing to short sales. But, it is true, there is a lot of money to be made through short sales. There are many people who look at an investor and think that they are smiling on somenone elses misfortune. They say this because in a short sale you are assisting a homeowner who is way behind on their mortgage. The NOD has already been sent and NOS has beein issued. The Sale Date is staring them in the face and is in the back of their mind everyday.  There are many homeowners that are facing this and you wouldn’t even know it. It could even be your niegbor.

 There is a way to find out. Did you know that when you are behind on your mortgage and the bank issues a NOS or NOD that it gets recorded through the county as a public recored. Serious. Most counties have websites that the imaging department loads up under public records. You can actually see the Notice of Default and see how much they are behind on their payments and when the trustee sale date is.

Now there is a member on your network that has a list of all the pre-foreclosures in your target area. Some have a Read the rest of this entry »

Real Estate Investing – Where Do I Start (Part 2)

Some of the most brilliant inventors and thinkers of our time all had one thing in common: VISION. Vision is a driving force that lives within each and every one of us. It sustains us through hard times, it fuels our passions our goals, our deepest desires. Vision is a force that cannot be conquered unless we allow it.

Vision will always be realized to those that change their mindsets from it has never been done, to why can’t it be done. An individual who possess vision will always surpass someone without it. It doesn’t matter how much education or experience they possess; if they don’t possess vision they will never go far enough to really succeed.

I ask the question: What is your vision? Do you have one? If not, it is about time you find out what it is. I can tell you right now it is worth taking the time to formulate your vision and write it down. With Vision comes determination. With determination comes knowledge and experience. Knowledge and Experience combined creates wisdom. Wisdom most frequently spawns success in its finest forms.

Do not take this lesson lightly. The way that you can bring your vision to life is to dissect the trail that leads up to its accomplishing moment. Describe it to me. Really, sit down and write what that moment will be like, who will be there, what will be happening in that time-frame where the feelings are rushing forth, gushing into your moment of triumph.

Once you have a good description of that moment of accomplishment; then write down the step just previous to that moment. What will it take to get there? This is usually a good time to write down characteristics or traits that a person who has achieved and lived in that moment would possess. You may already possess some of these qualities.

A good starting position is to Read the rest of this entry »

Real Estate Investing – Where Do I Start? (Part 1 of 2)

It takes a team of people to close every real estate transaction successfully. It’s true. Just to name a few, you have to have a lender, title and escrow agent, buyer, seller, brokers, cash partners, processors, underwriters and the list goes on. There are so many people that are involved to close one real estate transaction.

Building a successful team will be extremely beneficial to accomplishing your vision and goals in real estate. I have written a whole chapter on networking that will guide you in the right direction to begin forming your team, your network for success.

Too many excited investors jump right into investing without knowing where they are going. You have to know what you want to accomplish. Then you have to decide; whose help will I need in order to accomplish it? That is really why there is no “I” in real estate. You really have act as if you were putting together the next national championship team. Only draft the best of what your local state, province or county has to offer.

As you begin to surround yourself with Read the rest of this entry »

Why People Choose Financial Liberty to Make Money In Real Estate?

Your financial education opportunities are one of your most essential assets, with the power to increase your wealth, improve your financial security, protect your assets, and maximize your profits with nearly every real estate investing practice. That is why so many leading business executives and majority of consumers choose Financial Liberty.

Financial Liberty’s educational approach is an innovative, affordable alternative to the costly, mainstream  companies offering real estate education. By providing around-the-clock coaching support, hassle-free access to our web-integrated coaching systems, and increasing success levels through our investment models, Financial Liberty has revitalized the real estate education industry.

Financial Liberty promises to fulfill our responsibilities to protect your educational investment by providing exercises that will guarantee results within 30 days. We also create a responsible learning atmosphere for the customer so that they maximize the use of each principle taught.

Proactive Wealth Protection

Every customer is assigned a Financial Liberty real estate success coach. These success coaches customize the curriculum in order to personalize the principles and strategies to meet each customer’s needs. This proactive approach enhances the customers ability to improve more rapidly and create wealth and personal success at a much higher rate. This type of wealth protection ensures that the customer will experience maximum reliability and financial security.

Personalized Coaching

Each customer is assigned a personal real estate success coach and a team of real estate experts who knows your goals and expectations. Financial Liberty provides you with Read the rest of this entry »

Financing Your Real Estate Investment

This can be a very good experience if you have chosen a good mortgage broker to add to your network. The brokers that I work with all know that they are not the only one working for me. When I have an investment to purchase I usually place it in front of at least 3 to get the job done for me. Each broker has a certain number of lender’s they use. Some have around 10-12 and others have around 50. Sometimes it is not the amount of lenders that is important, it is who knows the lender the most. Or in other words, who has a good connection to get the best rate/payment and terms to offer you.

You also need to know if the investment is going to be owner-occupied or non-owner occupied. This is a very important decision to make. A  non-owner occupied property is more of a risk to the lender and so they usually require a larger percentage down like 15-20%. This forces you to expose your deep pockets or your cash partner’s help up front to close the deal. Owner-occupied deals are easier to finance because the down payment can be from 0-10% down because it is less risk for the lender.

Realize that not just good interest rates should be the prime goal when shopping for financing. Depending on your purchase and exit strategy you will want to find the terms and conditions that apply best to your investment. Sometimes the lowest rates don’t always mean the lowest payments.

Lenders & Guidelines

Why do lender’s have guidelines? There is one main reason and that is risk control. The other reason that not many people know about is that banks are famous for selling their portfolios. Have you ever got a notice in the mail stating that your loan has been purchase by another bank and to start making your payments there? A portfolio loan is a Read the rest of this entry »

11 Attributes That Will Make You A Real Estate Millionaire

11 Attributes That Will Make You A Real Estate Millionaire

I have compiled a list of attributes that I feel, from experience, are the 11 attributes of a real estate millionaire. Having bought and sold millions of dollars in real estate; I can say confidently that whoever possesses these attributes will find themselves accomplishing their goals and dreams. Here they are:

1. They work hard!
2. They are incredibly curious and eager to learn.
3. They network.
4. They work on themselves and never quit!
5. They are extraordinarily creative.
6. They are self-reliant and take responsibility.
7. They are usually relaxed and keep their perspective.
8. Extremely successful people live in the present moment.
9. They “look over the horizon” to see the future.
10. Repeatedly successful people respond instantly!
11. Successful People are sensational learners.

 Henry Ford, an American Industrialist, gave an amazing quote about those who take their eyes off of the main goal. He stated, “Obstacles are those frightful things you see when you take your eyes off of your goal.” You can begin today, don’t wait till tomorrow. Take advantage of the mindset changing doctrines so you can tear down the road blocks and eliminate the speed bumps that may detour your success to make money in real estate.

Successful people breed off of other successful people. They adopt their principles, counsel and guidance. Then they put it into action and it becomes this single manipulating force that transforms regular amateurs into Read the rest of this entry »

Real Estate Investing – Social Media Marketing

Years ago when I started investigating the riches of real estate I began attending seminars, investor clubs and paying for one-on-one education. Basically I was physically making time to attend and travel to these different sources to gain more knowledge about real estate investing. Society has changed, marketing has changed and has involved into what many are familiar wit web 2.0 or commonly phrased as SOCIAL MEDIA.

What is social media and how can it benefit you? Some examples of social media today are Facebook, Twitter, LinkedIn, etc. You probably have accounts with these sites already. What you are about to learn in this short blog is how you can maximize your exposure as a real estate investor to attract cash partners, real estate professionals in order to increase your connections to build your network which ultimately increases your net worth. Let’s start by taking Facebook and LinkedIn as examples. Many marketing gurus are classifying LinkedIn as the new Yellow Pages of our time and Facebook as the new White Pages. It really makes perfect sense.

Type someones name into google and you will find that facebook, twitter pages and LinkedIn profiles are the first to come up along with “find people” website services. If you are presenting an investment to a cash partner, more than likely they are going to do some due diligence and research on you and your background. If they ask for references you can direct them to your recommendations category on linkedIn. If they want to see more projects you have done in the past you can show them your You Tube channel or Facebook videos.

The idea of creating a partnership is vital in real estate investing. That is really the core of a profitable real estate transaction: using real estate professionals and leveraging their networks to accomplish your real estate goals. These methods will definitely increase your Rolodex. I have a seminar online that you can download for just about nothing and watch step by step how to setup your social media campaigns through the resources we discussed above.

Remember that the most powerful tool in business and more so in real estate is Read the rest of this entry »

Find Foreclosures Short Sale Opportunities and More…

This is where the rubber hits the road. Prospecting for profits. I learned a very important lesson early on that could have saved me hundreds of dollars in gas money, time and energy. The greatest thing about real estate is that you can have people working hard for you but they don’t have to be on your payroll. What do I mean by that? Most Real Estate professionals in your network only work on a commission base relationship.

For example your mortgage broker, real estate agent and title and escrow officer only get paid when a deal closes. But all three can be great assets in lead generation and sharing information on investments that only comes through thier doors. The Real Estate industry is such a large place to network that finding good professionals to add to your network shouldn’t be a problem. The fact is that, just with the principle of networking, you can double and triple your opportunities in finding great deals by getting involved with more real estate professionals.

Make time each week to introduce or add 1 real estate professional to your network. Now when 3 months have gone while you have done this exercise religiously, you will have deals crossing your desk daily. Basically, the deals will start coming to you rather than you spinning your wheels to find them. Remember the principle about networking is that when you add one person you add thier connections and network as well. Using social media techniques will help you in developing a larger presence for yourself and creating a larger picture and profile for you as a serious real estate investor. I have real estate success coaches who teach more than just the fundamentals of creating your network. The way we instruct our students, investors and business owners creates a billboard effect for the world to see.

This is what you want in real estate. The bottom line is that you want to let people know that you in the business. check out some of the membership packages and watch the webinars on networking at www.educatioforinvestors.com. Thanks for reading this blurp on finding deals… now go make a name for yourself and cash in on these ideas.

Make Money in Real Estate – Banking on New Construction

My Wife and I have been investing in real estate for years. Mostly, passively until the last few years came up. When most investors decided to wait it out, we actively started investing with the strategies that I now teach to beginners and seasoned real estate investors.

The point I am making is that we could have made 3 times as much if we had actively pursued investing in real estate. Instead I settled for a day job and invested on the side. Most of it was fear of getting in too deep. Really coming into our industry is our lack of knowledge for a hands on experience in partially completed new construction.

There is a huge market available for new construction and a larger market for available and qualified contracts whose business volume has deeply decreased. While we were quickly learning the construction side of things, our experience with negotiating foreclosures, short sales and pre-foreclsoureswith individual homeowners helped us to get a great deal with a general contractor. These kind of opportunities in the marketplace can triple your value and cut down on half the work. The key and the lesson to learn is to:

Read the rest of this entry »