Real Estate Investing
Real Estate Investing - How To Invest With No Money
By Simon A Macharia
Most new real estate investors get held back by lack of finances, with the assumption that they must have a lot of money to get started. Nothing can be further from the truth. You can still do great deals and make money spending little to no money of your own.
Currently, most people are unable to invest in real estate because most lenders have tightened their lending procedures too much. If they can qualify for these mortgages, they are required to put down as much as 20%, and are allowed just a few investment properties.
This article shows you how you can invest in real estate using little to no money of your own.
My favorite model of real estate investing is wholesaling and investing with little to no risk. In wholesale real estate investing, you locate distressed houses below market value and flip them for a profit to other real estate investors.
This can involve assigning a contract to a buyer with cash. You buyer closes the deal on your behalf using the same contract terms you signed with your seller. The assignment fee is what you walk home with at closing.
Or it can involve simultaneous closing where you buy and sell the property on the same closing table. This means there are two contracts - one to buy the house, an one to sell it to your buyer. Of course, your selling price is higher than the buying price, and your profit is the difference, less fees and expenses.
A few years ago, most lenders did not care if you used their money to close the first transaction in a simultaneous closing. However in recent years, most lenders, including hard money lenders, will require that you have the money to close the first transaction. But this should not slow you down.
This is where transactional funding comes in. Transactional funding is a short term loan that finances up to 100% to acquire under-valued properties, which you then turn around and sell for a profit.
By short term, both transactions can be close as close together as is practical, even within a few minutes of each other.
Transactional funding is usually available within a few days. Your personal qualification is not necessary. It will not require you to have a good credit, steady income or a good bank balance. They just need to see that you have lined up a qualified buyer for the property.
Qualified buyer means someone with verifiable cash such a real estate investor, or someone approved for a loan.
There are lots of properties you buy as a real estate investor using this method. This cuts down your risk to almost zero, - no repair or holding costs, tenants and so on. As long as you can find a steady supply of properties and line up buyers, you can plug into this business model and move as many properties as you can find.
As a real estate investor, when you buy and sell houses, it is necessary to automate daily repetitive tasks to make your work easier and be more productive. An automated website for real estate investing provides this solution allowing you to increase efficiency and profitability.
When Going All In Is A Sure Win: Investing On Foreclosed Properties
By Karim El Sheikh
If you are looking for an investment option that you are sure to get a royal flush when you go all in, investing on foreclosed properties is the best way to go. It is often told that investing is almost like gambling, the higher the risk the higher the gain. If you put a small amount on the table the return is also relatively small. This is also true in trying to invest, if you want to earn more you should be willing to risk an equal amount.
So why is investing on real estate properties or foreclosed properties today a great idea? Here's why:
1. Prices Are At Their Lowest
The foreclosure activities in every corner of the globe have been creating a trend in the real estate market that was last experienced about 50 years ago. Because of the increasing number in the supply of foreclosed properties and the relatively low demand, the prices of foreclosed properties are constantly getting low hitting marks that were never reached before.
With a few thousand dollars needed to spare you can gain up to a million more by re-selling the property or by having it rented out to others. Given the very low prices, one can only think of investing on foreclosed properties is a very good idea at this moment.
2. Great Deals Await
Foreclosures don't always bring bad news. Though it brings closed doors to several individuals, it also presents a door wide open to others. Foreclosed properties are the lowest-priced properties in the real estate market. The prices are low because the price tags attached to foreclosed properties are equal to the outstanding mortgage loan owed to the bank. The price of a foreclosed property is not its actual price if truly evaluated and sold to a real estate market. Thus, it is certain that you can get great low priced deals in buying properties today.
3. Big Gains Can Be Attained
If you are looking for a win-win situation in investing, purchasing properties off the foreclosure market is a great option. There's really nothing to lose in buying properties. You get to own a property where you can live in or make profit from through renting and you also have the option to sell it once the price gets higher than what you paid for.
4. There's No Way To Go But Up
A lot of people are scared to buy properties or do any investments right now because of the ongoing recession. News of ensuing economic crashes isn't doing any help making more people decide on keeping their moneys in their pockets. But careful analysis of the current economic status will tell that the economy is steadily improving. There is a strong indication that the economy has reached the rock bottom low. When you reach the lowest point there's no other way to go but back on top. And the same is true with the current economy. Markets are already stable and the economy is no longer a thing to be scared of.
Foreclosure.com is the top online resource for finding foreclosures, preforeclosures, rent to own homes, reo properties and more.
Why Should You Invest In Pre Foreclosures?
By Demetrius Weatherspoon
Pre foreclosures are classified as homes which have reached their final phases just before they get foreclosed or reclaimed by the loan provider or bank. The owner remains in total control of the real estate asset, even though the lender will repossess the house if the owner does not try to correct the problem. Usually, if the owner makes things right with repayments, the pre foreclosure will settle and things will return to normal.
When purchasing real estate, there are many advantages to these properties. Although there are numerous ways that you can purchase a property, pre foreclosure is among the best. Though it may be one of the best methods to purchase homes, many individuals lose out mainly because they are not familiar with these type of homes and all of the huge benefits that come with them.
The good thing about these type of investments are definitely the prices that are connected with them. Generally, the owner has no other option but to sell the property, and therefore will listen closely to almost any offer that he gets. Therefore, you can find pre foreclosures available at nearly 50% off market price. It is really a perfect time to buy, especially if you would like to save a lot of cash.
Along with the discount prices you will get with pre foreclosures, you will also have the luxury of working directly with the seller. This can be a wonderful advantage, with buyers being in complete control of pre foreclosure sales. In the event that the property owner chooses to turn down your offer and cannot locate another buyer, he can lose everything. Even if you offer the seller a small price, he will have the ability to make some cash selling the property.
You can find pre foreclosures that are for sale pretty much the exact same way that you could find properties in which the bank already has control of. You could look in the regional newspaper, on the web, or by contacting the bank directly. There are many solutions that you have when it comes to locating pre foreclosures, providing you with an abundance of choices. After you have found a pre foreclosure for sale, it is up to you to close the deal and get the house of your dreams at a very reasonable price.
When you compare foreclosed homes with pre foreclosed homes, you will discover that there is much less competition associated with pre foreclosures. Pre foreclosed houses are a fantastic purchase, as they will usually come at a very inexpensive price. Those individuals who have been searching for a new house should not hesitate to look at pre foreclosed properties. They are a wonderful investment, and will certainly be very rewarding in the long run.
Demetrius Weatherspoon Founder of http://www.RefreshChicagoProperties.com we are a Chicagoland Real Estate Investment Company. A muti-service company- we buy, rehab,and sell homes all across the state. Whether you're looking to purchase a home for you and your family to live in, or if you're interested in buying an investment property, we are equipped to make that happen. Sign up for FREE Property News Letter @ http://www.RefreshChicagoProperties.com