•An Introduction to Real Estate Commercial Loan Documentation
The financial stakes are much higher when you're dealing with commercial investments rather than residential investments. With such deals, the rewards are greater, but the risk is also. So, it will pay you to understand completely the terms and wording of commercial loan documents. In this article, I'll provide you with the necessary knowledge of the basic loan forms and language.
First, however, you should understand the types of lenders you'll be dealing with in this market.
Mortgage...
•An Introduction to Real Estate Short Sale Hardship Requirements
As I discussed in a companion article ("An Objective Look at Real Estate Short Sales") a short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage.
In this article, I'd like to make you familiar with the hardship tests required to qualify a home owner for a short sale. This knowledge will help you understand the market better as an investor and enable you to zero in on the best deals.
As I said in the previous article, lenders are not...
•An Objective Look at the Real Estate Flipping Strategy
Flipping is the most basic of real estate strategies. It involves simply buying a property, fixing it up, waiting for a short time, and then re-selling it for a fast profit. This is called "rehabbing." A variation is to "wholesale" the property. In other words, you buy only the contract and then immediately sell it to another investor without getting involved in any rehabbing.
At its heart, flipping is a speculative strategy. Investors bet that the market value of a property will rise to the...
•Can't Sell Your Property In Today's Real Estate Market? This is the Solution for You!
Can't Sell Your Property In Today's Real Estate Market? This is the Solution for You! If you have a property you own and can't sell, you're probably wondering what your choices are. A rent-to-own may be a viable option.
Creating a rent-to-own scenario is very simple. Take for instance the property you own. Find a buyer to lease it for a designated period of time and give them the option to buy that property when they come to the end of that time period. This strategy may also be known...
•Real Estate Bargains In The HUD Repo Market
HUD is short for the federal agency called the "Department of Housing and Urban Development." The agency offers homes to "owner-occupant purchasers"; in other words, to people who are buying the home as their primary residence.
However, there are opportunities for us, as investors, in this market. Owner-occupants have first crack at foreclosed properties. But, if these re-possessed properties aren't sold, then we can have a shot at them. In this session, I'll show you how to approach this...
•Real Estate Investment Strategies to Accumulate Cash
Plenty of fancy words have been written about real estate investment strategies. But I want to cut to the chase in this article. No matter how fancy the language is, investment strategies boil down to two objectives:
Buying real estate to accumulate cash.
Buying real estate to build equity and wealth.
Which strategy to choose depends entirely on you—your needs, your personality, and so forth. Frankly, either choice is fine as long as you choose one early in your career, commit to it over...
•The Best Deeding Method to Use in 1031 Tax Deferred Exchanges
In this article, I'd like to define two real estate termsdirect deeding and sequential deedingand show the best form to use with 1031 Tax Deferred Exchanges.
If you're not familiar with the "1031," this law allows the exchange of investment or business property for other investment or business property, without paying tax (it's deferred) if the property received is "like kind."
As you'll see below, direct deeding is the better choice in this situation, but it's important to understand the...
•The Vital Topic of Liens in Real Estate
A lien is defined as a claim against a property for repayment of a loan or other judgments.
This sounds like a very boring topic, but it's one of vital interest to you as an investor. This is because of one very important fact--a lien affects the ability to transfer ownership of a property!
Believe me, it gets very exciting (and unpleasant) when a lien pops up and causes a very profitable deal to fall through. Failure to do due diligence on properties can cost you a lot of money!
So, my...
•Understanding Mortgage Contingencies in Single Family Real Estate Investment
Here's the basic definition of a contingency: it's a condition or event that must be fulfilled before a real estate contract is binding on all parties involved.
There can be many contingencies in contracts. A typical example involves inspection of the property: "This contract is contingent upon a satisfactory inspection of the home being completed by January 16 that reveals no significant defects. If defects are discovered, the Seller will correct them or provide compensation to correct...
•Understanding the Annual Percentage Rate (APR) and What It Really Means In Real Estate
Understanding the Annual Percentage Rate (APR) and What It Really Means In Real Estate The annual percentage rate (APR) gives you the yearly cost of a mortgage in the form of a percentage. The rate calculations include interest, mortgage insurance, and the origination fee (points).
The APR has two main purposes.
1. it allows borrowers to compare loan programs from different lenders so they can see which program is the cheapest.
2. It creates a "level playing field" for lenders. And,...
|
|