Pinoy Entrep

Begin your real estate market research with the U.S. Census information about a town. You want to invest in a town that is growing, especially if you are investing in income properties. It’s easier to do this now, with all the information available online. Just go to the official U.S. Census site at www.census.gov.

If you call the chamber of commerce, or the local department of economic development, they may have a packet of statisics they can send you too, showing population figures, employment mix, and even more. These are a couple of the statistical tools and information that can help, but one of the easiest and most useful research tools, is talking to people who live there.

Talking is a great way to research an area you are not familiar with at all. I once called the Chamber of Commerce office of Deming, NM. In the course of our conversation, the chairman casually commented that the city was using up water quicker than the aquifer was being replenished. I also learned that they had no back-up plan in place. That was enough to scratch Deming off the list.

When you want to know more about a town, pick up the phone. Use any excuse to call anyone from a real estate agent to a resident. Ask questions about crime, whether the local government welcomes new businesses, what the weather is like there. Are houses sitting for sale for a long time, or do they go quickly? Where are the good or bad areas? What are the good or bad things about the town that a new person should be aware of?

Prior to moving to Tucson, Arizona, part of our real estate market research was to call people in potential towns to see if they owned a snow shovel. If they did, we crossed the town off our list. Two different places can both get 25 inches of snow per year, but in one it stays all winter, and in another it melts by noon. Our snow shovel question told us the truth behind the statistics.

That was just a personal thing with us, of course, but talking to people can tell you things that are more directly related to investing. In fact, a good local bar can be a great place to do your research once you are in a town. Patrons will tell you what big employers are about to move in or out of the town, how fast homes are selling, whether there are gangs, and much more items of interest.

Ask which areas are improving, and which aren’t. Listen for stories about loud or animal-infested areas. This kind of information is important, but hard to get from raw data. Of course, people do sometimes exaggerate, so try to verify what you hear if it sounds outlandish. Still, talking to people can be a great way to do real estate market research. Good luck!

This is the age of creative real estate financing. Maybe you remember when financing meant you saved up enough to put 20% down on a house, and then got a mortgage loan for the other 80%? You can still do that, but there are many more options now. Here are ten of them.

1. Second mortgage loans from sellers. Many banks will allow you to have as little as 5% into a home purchase, but will then only loan you 80%. The seller can take payments on a second mortgage from you for the other 15%.

2. Manufacturer loans. Manufactured-home companies are arranging financing with 5% or less down for their buyers. This can be as low as $2,500 down if you already have property to put the home on.

3. State government housing programs. Most states have some sort of financing help in the form of a loan-guarantee program or outright loans for low-income buyers.

4. VA mortgage loans. If you have been in the armed forces, have a good job, and can save a few paychecks, you can probably get a home with a VA loan.

5. Contract for sale. Called a “land contract” and other names depending on the part of the country you are in, this just means that you make payments to the seller instead of a bank. It’s up to you and them to negotiate downpayment amount, interest rate, and the term of the loan.

6. Builders gifting programs. In some parts of the country, builders fund foundations that give you a portion of the downpayment, so you can get into a home with as little as 3% downpayment from your own pocket. FHA and other lenders have so far approved this.

7. FHA mortgage loans. The Farm Home Administration doesn’t actually loan you the money, but guarantees your loan for the bank, so they can loan up to 97% of the purchase price, taking into account the particular FHA program.

8. Friend and family loans. It may not be from charity that a brother or a friend lends you the money to buy a home. That 7% return might look awfully good if their money is sitting in the bank at 2%.

9. Bank no-doc loans. “No-doc” and “low-doc” loans, meaning no or low documentation requirements, are back, and you can find them through online banks. They are for those of you with bad credit but 20% to 30% to put down on a home. You don’t even need a job.

10. Credit card. A risky way, but if you have a low-interest credit card, you can use it to pay the downpayment, especially if you can pay it off quicky, perhaps with a coming tax refund. The banks generally won’t allow this, but it is possible if you combine this with seller financing.

So are there additional ways to approach real estate financing? You betcha! These are just some create ways to purchase your own home. When you start investing, you can use other techniques for REALLY creative real estate financing.

Get ready, this is the age of creative real estate financing. Do you remember when financing meant you saved up enough money to put 20% down on a house, and then got a mortgage loan for the other 80%? You can still do that, but there are many more options now. Here is a list of ten of them.

1. Second mortgage loans from sellers. Several banks will allow you to have as little as 5%, going into a home purchase, but will then only loan you 80%. The seller can then take payments on a second mortgage from you for the other 15% due.

2. Manufacturer loans. Manufactured-home companies are arranging financing with 5% or less down for their buyers. This can be as low as $2,500 down if you already have property to put the home on.

3. Housing programs through State governments . Many states have some sort of financing help in the form of a loan-guarantee program or outright loans for buyers with low incomes.

4. VA mortgage loans. If you have been in the armed services, have a decent job, and can save two or three paychecks, you can probably get a home with a VA loan.

5. Contract for sale. Called a “land contract” and other names depending on the part of the country you are living in, this means that you make payments to the seller instead of the bank. It’s up to you and the seller to negotiate downpayment amount, interest rate, and the terms of the loan.

6. Builders gifting programs. In some parts of the country, builders fund foundations that give you a part of the downpayment, so you can get into a home with as little as 3% downpayment from your own pocket. FHA and other lenders have approved this so far.

7. FHA mortgage loans. The Farm Home Administration doesn’t actually loan you the money, but guarantees your loan for the bank, so they can loan up to 97% of the purchase price, taking into account the particular FHA program.

8. Loans from friends and family. It may not be from charity that a brother or a friend lends you money to buy a home. That 7% return might look really good if their money is sitting in the bank at 2%.

9. Bank no-doc loans. “No-doc” and “low-doc” loans, meaning no or low documentation requirements, are back, and you can find them through online banks. They are for those of you with bad credit but 20% to 30% to put down on a home. You don’t even need a job.

10. Credit card. A risky way, but if you have a low-interest credit card, you can use it to pay the downpayment, especially if you can pay it off quicky, perhaps with a coming tax refund. The banks generally won’t allow this, but it is possible if you combine this with seller financing.

So are there more ways to approach real estate financing? You bet there are. These are just some ways to buy your own home. When you start investing, you can use other techniques for really creative real estate financing.

There comes a time when every landlord finds themselves in a difficult position of having his rental property occupied by a tenant who is not paying rent, or is making a nuisance of himself and causing problems for other tenants, or is causing immense damage to the unit, or his / her actions make it impossible to continue with a landlord / tenant relationship. Though state laws governing eviction vary greatly, the following are a few tips to help landlords finding themselves in the unpleasantly messy situation of evicting a tenant.

As the owner of residential units, it will be to your advantage to engage a lawyer to advise you on eviction issues, as well as for handling legal actions. An established relationship with a lawyer is useful as he will carry out various legal tasks charging a flat fee only, whereas, hiring a lawyer on a case to case basis can lt in much more costly legal fees.

Evicting a Tenant for Non-payment of Rent The eviction process involves serving a formal notice, informing the tenant the rent is overdue, and letting them know that they might face possible eviction if they do not pay on time. If a landlord is not knowledgeable about the legal terms of a notice, there are pre-printed forms which fulfill all legal requirements for a proper notice. In case the rent arrearage has not been paid after the legally defined period i.e. usually, about a week, a landlord can begin eviction proceedings on the basis of non-payment of rent.

Bear in mind, if the tenant makes a partial payment during the eviction process, in most jurisdictions the acceptance of any payment of rent, even a small amount, could result in dismissal of the eviction lawsuit for non-payment.

Lease Violation When a tenant does not comply with the terms of the lease he / she signed, a landlord must provide a written warning, referring to the lease clause being violated, and allow him / her time to fix the problem. This is so the tenant cannot later claim ignorance that he / she did not know, they were in violation of the lease, or they received no notice of the violation. The judge will be in favor of the landlord if it is established the tenant ignored a prior notice, as well as the deadline.

Health and Safety Issues Certain tenants may pose a health or safety problem for other tenants or for the property, in general. In many jurisdictions, it is permissible for the landlord to evict tenants whose conduct is hazardous to the health of other tenants or can damage the property. First of all, a landlord should serve the tenant with a fixed period of time notice (a week) to remedy or repair the problem, or else move out. If no corrective action is taken, a landlord can proceed with the eviction proceedings.

Even if a tenant resolves the issue, but you still want him / her out, serve them a notice on eviction on health or safety grounds, as well as, a notice stating their tenancy is being terminated.

Bankruptcy In the event a tenant files for bankruptcy, an automatic stay prevents a landlord from continuing with the eviction proceedings until the bankruptcy is resolved, or the bankruptcy court permits eviction proceedings to continue by lifting the stay. This may require a motion to be brought before the bankruptcy court, asking for the stay to be lifted.

Tenant Counter-Claims When a landlord begins eviction proceedings, some tenant may bring counter-claims against the landlord, such as, inadequate maintenance of property or violation of the lease, and may ask the court to stop eviction proceedings or else for a substantial rent decrease in arrearage owed.

This is why it is good practice to keep written records of any complaints received from tenants about the rental unit or common areas, and steps taken by the landlord to resolve them, as well as warnings of tenant misconduct. Remember that a landlord can preclude a tenant’s claim that despite repeatedly complaining about a problem with their unit, the landlord failed to respond with positive action, as long as the landlord has kept records of all interaction with the tenant and of the steps taken.

Trials Before going to court, a landlord must ensure all his documentation in relation to the case is in order and that there is nothing missing. Unless a landlord is conversant with the rental laws of his state and has had enough experience in eviction cases, it is also advisable to engage a lawyer, well versed in property law of the state a landlord’s rental property resides in.

The above should provide you with enough knowledge of what is required for a successful eviction.

It’s no secret that there is a ton of money to be made in the real estate market. Some think it might even be the easiest way to become wealthy! Contrary to popular belief, however, you don’t have to have a lot of money to start out with. Hundreds of thousands of people across the country are making money without risking money or their credit. There are three basic methods to use.

The first of these is to take over the debt of homeowners. This can be done without risk by developing a “subject to” deal. Many people are under a huge load of debt and will transfer their ownership to you along with the equity they have in the house, simply to be relieved of their burdens.. These homes are beautiful and well maintained,,as a general rule. You do not have to guarantee a note in order to do this. You can learn how to take on these deals when you pick up my FREE real estate investing course.

A second way to get into real estate investing with very little money risked is to wholesale houses that need “rehab.” These low end properties that are not in good condition can be a veritable gold mine for you. You find the bargains and pass them along to the contractors and carpenters who earn money fixing up houses to sell. You never own the property, but you can make anywhere from $10,000 up on each sale. It’s possible to wholesale 3 or 4 houses every month. Just think of the income that you could make this way!

A third way of making money with real estate is to option high end houses. This means that you find a house that has a lot of equity already in it, such as a million dollar house with three or four hundred thousand in equity. You option this for one price and through the use of killer sales strategies, you sell it for a much higher price. The seller gets the price they want, the buyer gets the price they want, and you get the difference, which could be several hundred thousand dollars! Sound good, doesn’t it?!

Your only expenses are some marketing materials and about $100 for an option deposit. If you’re wholesaling, Ten Dollars will suffice! You don’t have to make any monthly payments or costly repairs. You don’t have to borrow any money yourself. There has never been a better time than now for making money on these high end homes.

A smart way to learn the tricks of the real estate investing trade is to find a mentor that already has had experience in Real Estate Investing. Another way to learn is to check out the website that I have listed below. These helpful sites contain information about many training options as well as hundreds of articles about every facet of real estate investing. Hope to hear from you soon!

What is the primary reason for success most people have that seems to evade unsuccessful people? Goal setting. Goal Setting is the main reason for your success. Lack of proper planning is the number one reason for failure. Proper goal setting involves setting a business plan in place that fits you. For too many people, this doesn’t sound fun or might sound tedious. In practice though, goal setters have more time, freedom, money, and more success in all areas of their lives than those who don’t. Did you know that it’s no different with real estate investing?

Real Estate Investing should be treated as a business and it requires planning that anyone can do. Much like an airplane pilot who goes through their pre-flight checklist, the real estate investor must go through many steps for every real estate deal they close. You must market to find the deal, do your research on the property to establish a value, have your contracts ready, make your offers, schedule a closing, have title work done, prepare your financing, get property insurance, etc.

The reason the doers make money is because so many people aren’t ready to make serious money. Real estate investing seems like pie in the sky until you put your plan down on paper and it starts to crystallize. The planning process should give you some renewed energy.

Before I set up my plan, I didn’t want to get out of bed every day, but now I get up ready to work on knocking out my plan every single day. Set up your plan into baby steps that you can review and accomplish every single day.

Your daily plan must include marketing to get motivated sellers to contact you. Regardless of the deals you have in the works, if your marketing stops, you will go through long dry spells. Even with consistent marketing you will have periods with very few leads and periods where you are just swamped with sellers offering you great deals.

Constant daily review of your goals are a must. This is why many suggest taping your goals on your bathroom mirror so you see it when you wake up and also before you go to sleep. You can even buy giant poster sized post it notes that you can write your goals on and stick them on your office wall. Reviewing your goals before going to sleep at night causes your brain to dream about your goals and program them into memory. So put your goals down on paper and start putting your real estate investing plan into action.

Banks and mortgage companies have been selling mortgage notes in the secondary for many years. They even buy and sell those notes to other lending companies, as well. This most likely has happened to you or to someone that you know at some time or another. Why do lenders do this? They do it in order to keep a steady reserve of cash on hand to make other loans possible.

The information in this message is designed to help you understand about creating trust deeds, real estate notes, or if you have a business and have contracts, you also have a business note which will bring you a cash flow that you can receive monthly payments with. You can also have the option to sell whole or part of your real estate notes, trust deeds or business notes. The whole idea here is to first elevate your potential of meeting a home buyer to sell your home to.

Time and time again you might find houses that are for sale but have been on the market for a very long time. Most of the time home buyers don’t qualify for a 100% loan and must get 2 loans to equal the 100% needed. The home seller can offer “Seller Financing” in order to get the house sold faster.

The home seller has one objective and this to sell that property as quickly as possible. To do this you can create a trust deed which is secured by real estate. This is a real estate note. The real estate note has several purposes and the most important reason is to help the home seller close on the house. The trust deed that you now have is because you agreed to finance the home buyer so that the buyer could get the house and you can your cash at closing.

Not only do you have cash at closing, but you now have a real estate note that you will be receiving monthly payments on from the new home owner. Your home is sold and you have residual income from the trust deed you created. This creates steady cash flows from the trust deeds, real estate notes, or business notes you may have. This is what “Seller Financing” is. This occurs when the buyer makes regular monthly payments to you instead of the bank. You now hold an asset that you can choose to keep for steady cash flow or sell part or all of it for cash right now.

This should motivate any home seller to give it a try. After all, what could it hurt and it will be a win/win situation for the home seller, as well as for the home buyer. “Owner-Financing” is widely accepted and is an alternative for the home buyer who can’t qualify for a conventional loan. Even if you have real estate notes, business notes or trust deeds for a while, you can generate cash flows by selling all or part of it for cash needed right now.

Isn’t that great news for the home seller? This will give the home seller a boost in getting the house sold. Most people would consider buying that house if they knew that the home seller was willing to create a real estate note or trust deed to secure the home buyer qualifying for the house. Just imagine selling your home much faster then your neighbor down the street because you possess the key to selling your home.

Closing costs are often the last thing a person thinks of when buying a home. While closing is the joyous moment the home becomes yours, the costs could be surprisingly aggravating.

When you purchase a home, condo or other property, you will go through a time-frame known as escrow. During escrow, various issues related to the property transfer are worked on. The last day of escrow is known as the closing day, in which you are going to be paying these costs.

Closing costs come in many forms. Some involve significant dollars while others are relatively painless. Here’s a list of typical costs:

Escrow Fees An escrow agent is basically a third party that works with both the seller and buyer to finalize the transaction. For this assistance, the escrow agent will charge you a fee. Depending on your area and the agent, you can expect fees from a few hundred dollars to around a thousand. Make sure you find out the fees before choosing your escrow agent.

Home Loan Obtaining a home loan in the current market is a highly subjective event. “Points” can be a major cost associated with these loans. Points are essentially a fee you pay or have built into the loan for the privilege of being allowed to borrow money. A point usually equates to 1% of the loan. On a loan of $300,000, one point would equal $3,000. If you have great credit, you can shop for a loan that doesn’t require you to pay points.

Home and Title Insurance Insurance for your home and title are a must. If you are borrowing money to purchase the home, each is mandatory. If you are using your own funds, you should still purchase both forms of insurance. As each name implies, they provide insurance against issues involving your home and problems with the title transferred to you. You want to have clear title. Proof of homeowners’ insurance is mandatory at closing.

PMI Private Mortgage Insurance, “PMI”, is mandatory if your down payment is less than 20% of the purchase price of your property. It will cost you a few hundred dollars a year in PMI Inspections, Appraisals and Miscellaneous Fees.

In the home purchase process, you are going to use a variety of services to ensure the property is your dream come true. These services come with fees and you can expect to pay for home inspectors, appraisers and the like. Depending upon the state you live in, many of these fees may be built into your mortgage. Nonetheless, you need to know exactly what you must pay for on closing day so you can estimate your budget.

Closing escrow should be one of the greatest days in your life, particularly if it is for your first home. Make sure you know the costs associated with it so you don’t have to spend the day running around borrowing money at the last minute. Good Luck!