Real Estate Investing – How to Earn 21% Each Year, With Very Little Risk

Investing in private or hard money trust deeds returns in excess of 12%, year after year, with monthly interest checks, with limited risk.

Many people have heard of hard or private money trust deeds, but, they do not know how to participate in these lucrative investments. Let me explain how simple is is for almost any investor to invest in high-yielding trust deeds.

An investor needs to realize that a private or hard money loans is lent only to property owners with sufficient equity. This is what makes the investment low-risk for the investor. Normally, a private money loan is made only when the property has in excess of 35% or more. Example: a property owner owns a 5 unit multi-family complex, the value is $1,000,000, and he currently owes $300,000. He has 70% equity. In this case, we would lend a maximum of $300,000, or a new loan to value of 60%. We would make sure the property cash flows, thus easily paying all debt and expenses before we would make this loan.

In this scenario, we would offer the borrower a new 1st trust deed of $600,000, for a term of 3 years, with an interest rate of approximately 12%. We would also offer another option on a 2nd trust deed, as the borrower may have a low interest rate in the first, and he may want to keep that loan. We would offer a $300,000 2nd trust deed, with an interest rate of 14%, interest only, with a term of 3 years.

Now comes the more tricky part…who services the loan? This is where newcomers need to be careful. Why? well, if a new 2nd trust deed were offered, the investor needs to make sure the 1st trust deed is paid every month, otherwise,it could go into foreclosure. A good private equity company would offer this service, wherein they service the loan, and make sure the 1st trust deed is paid on time.

A good private money company sees hundreds of deals each month, and they turn away most deals. In today’s market, there are more deals that there is money to fund the deals. In my case, i personally see over 50 deals each week, and only accept 5-10 of these deals. I am always looking-out for the safety of my investors capital.

The bottom line, is that investing in private or hard money trust deeds is a great investment because:

*Your investment is secured against real estate, perhaps the most stable investment in the world.

* It is an investment that is easy to understand. No need to study financials, stock charts, or listen to some analyst on a new channel.

* You know your return on investment upfront, when the deal is structured. You know the amount of the check each month that you will receive in your mailbox.

* Your investment can be completely passive. A good private equity firm does all the work for you.

* This method of investing is proven. Some of the wealthiest people in America only invest in high-yielding trust deeds.

The real beauty of investing in trust deeds, is that this investment can be used through a retirement account. So, even small investors can benefit from investing in high-yielding and safe trust deeds.

Article Source: http://EzineArticles.com/?expert=Donald_Glen_Timms

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Bridging Loans – Buy Property Instantly Without Selling Old One

If you are thinking of buying a residential or commercial property but you have no sufficient funds. Or if you are waiting for your property to sell or any asset required to buy the new property. To help you combat a scenario such as this, lenders have designed especial loans called bridging loans.

Bridging loans are interim financial short term arrangements for the borrower to buy a property just in time. These loans bridge the gap in selling old property and buying the new one. Clearly this allows the borrower to have the sufficient loan amount to own a property instantly without having to sell old one.

Bridging loans are secured loans, provided against the borrower’s home or any valued asset. The loan amount depends on the value of the property given as collateral. Lenders usually approve bridging loan amount that is up to a certain percentage of total value of collateral. Each lender has a different loan to value ratio in determining the loan amount.

One characteristic of all bridging loans is that lenders charge a high interest rate. The high rate of interest is because bridging loans have risks for the lenders despite being a secured one. For example if the project funded from the bridging loan may not take off successfully. The other reason for the high rate of interest is because it is short term.

All bridging loans are approved for 2 weeks to 3-4 years as this enables you to sell the old property or get the finance to repay the bridging loan from any other source. What is more, you can pay the whole amount of the money borrowed from the lender once your old property has been sold. Otherwise you can pay interest per month to the lender.

One advantage of a bridging loan, is its easy approval for bad credit people as lenders do not take into account the borrower’s bad credit. So, the short term loan is useful in improving your credit score shortly as you can pay the loan off in time. You can locate numbers of bridging loan lenders on internet, searching for a lender will give you the opportunity to compare rates before you apply to one.

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6 tips to preparing for a house sale

Here are some tips that will, if used, help you increase your chances of selling your property quicker:

Preparing for your house sale

1. Detach yourself from your house
Even though selling your house can be emotional turmoil, the key is to take the emotion out of the
equation otherwise you can unconsciously hinder the process. Ensure that you can envision your property as a ‘house’ before you potential buyers round to view.

2. Turn your home into a showroom
Do some research in your area to find a new homes showroom; this is a great way to see examples of how to make your property look like a ‘home’ with no personal possessions. Take out all personal photos and remove all clutter from the house, leaving the rooms with the bare necessities and looking more spacious. This will enable the potential buyer to view your property as their ‘home’.

3. The heart of the home- the kitchen
The kitchen is usually the heart of the home, so making it look spacious and inviting is very important. When selling your house, ensure that all your draws and cupboards are organised, as potential buyers will open them to have a look at the space that your kitchen can hold. If they are full of clutter and unorganised this will hide the potential space that the cupboards have, and could put someone off. It is also a good idea to leave your side’s clear, removing toasters and any clutter that may be on the sides. This will give the potential buyer a better opportunity to view it with their belongings in.

4. The remainder of the house
Remove all things that are not needed for everyday living- be minimalistic. Again it’s all about the potential buyer being able to envision their belongings in the property!

5. House Interior
To make a house more sellable, you do not have to spend lot’s of money; the most important thing is that everything looks fresh. Ensure that you give all chrome and silver appliances a good polish, fix any leaky taps, and replace any faulty light switches and so on. It is important that all paint is touched up; no-one wants to see cream patches on what is meant to be a white ceiling. If you smoke or have pets, you may want to purchase some odoriser to ensure that the smells are not obvious when the potential buyers come round.
Have a walk round your house as if you were a buyer, check everything that you would consider yourself, and be critical and truthful.

6. Last but not least, the gardens
The front garden is very important as this is the first thing that the potential buyer will see, it is known as ‘curb appeal’. Take time to de-weed the garden, if you have grass make sure it is mowed, remove any dead plants and most importantly make sure that it looks neat and tidy. The same rules apply to the back garden!

Once these 6 tips are followed your house will be ready to go on the market…. good luck selling your house!

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How Should I Sell My Home – Privately Or Using An Estate Agent?

Your decision is set in stone; you are going to sell your house. Your secondary decision is not as certain; will you sell privately, or will you use an estate agent?

There are advantages and disadvantages with either route. You have to look at your personal situation and the market you will operate in to make your decision. Your personal situation will involve your financial status.

The market you operate in may mean you will require the expertise of an estate agent. If you are unfamiliar with the nuances of your specific market then you will not understand what its buyers want and demand. That’s why it’s so important to make the right choice about whether to go it alone or acquire the services of an estate agent.

Benefits of Selling Your Home Yourself

* All the profit from the sale is yours. You do not have to pay commissions.

* You get to set your own price without influence or pressure from an estate agent. Of course, you must do the necessary research to come up with a marketable price. Still, you can go a little higher or lower than the market without having to justify your decision to someone else.

* You will devote all your time to selling your house. An estate agent devotes ’some’ of his or her time to selling your house.

* You will set the viewing schedule to sell your home. You will not have to work around an estate agent’s schedule. Remember, you are not their only client. With an agent, there will be compromise on a time when viewings can take place.

* You can obtain a free valuation of your home from estate agents, but still perform the selling function yourself. Therefore, you get an expert valuation but still control the actual sale all alone.

Benefits of Selling Your Home Using an Estate Agent

* They do the work. You do not have to make a huge time commitment to marketing, valuation, and viewings.

* Estate agents make the entire home selling process, if you use a true professional, stress-free. They guide you through the whole process; good ones keep you constantly informed as well.

* They use their experience and market knowledge to value your home wisely.

* They provide you with relevant information to help you sell your home faster. This is information they garnered while ‘in the trenches’ of the marketplace. They know what is selling and why it is selling. They can offer you recommendations for upgrading so your home can sell fast. They know what buyers are looking for.

* They have the resources to market your home to a wide audience. This speeds up the process so those looking to buy your home come to you faster.

* They know when an offer is a bad one and when you should pass it up. You may desire a quick sale and may take an offer to end the process so you can take the money and run. A smart estate agent will discourage you from doing so. You do not have this support from a professional when you go it alone.

Selling your property involves making a smart decision on whether to go solo or use an agent. When considering what to do, look at how long you can afford your home to be on the market. Do you require a quick sale? Do you have the resources to facilitate this? Will selling your home privately hinder the pace of the selling process?

Look at the time commitment involved in marketing your home to buyers. Time truly is money; you may be better off letting an agent handle the sale. You can spend your time making money while they work on selling your house. Look at the cost of advertising and marketing compared to the estate agent’s fees. Look at carrying costs for your home if it sits on the market to long.

Alternatively, look at what you can do with the money you save in commission fees. That money may pay for a nice vacation. It may pay for that new home theatre package you desire. Whatever, it’s something to consider before you make a final decision.

If you decide to sell your house privately, there are many free resources available to help you. In the end, careful consideration of all the advantages and disadvantages will arm you with the information you need to make the right decision for your situation.

Article Source: http://EzineArticles.com/?expert=Robert_X_Clark

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10 Reasons to Sell and Rent Back Your Property

There are many reasons that can bring a person to want to sell their home. Many people do not realise that they have the option to sell their home and then rent it back. This is an option that works well for many single people as well as families. Often people want to keep their financial problems confidential and this is a good way to do just that.

Below are the top 10 reasons to sell and rent back your property.

1. One of the top reasons people may sell their home and rent it back would be to avoid a bankruptcy on their record. With the way the economy is today worldwide, and it is no wonder that people are falling deeper in debt, with no way out except to file bankruptcy.
2. People may sell their home and decide to rent it back to avoid being evicted. They may have fallen behind on their payments and are finding it hard to catch up with these payments.
3. There are also people who wish to be able to stay in their home after they’ve gone through tough divorce. This can be achieved by selling the property and then renting it back. Your basic tenet rules may be a little stricter but it all depends on what companies you go with.
4. Some people wish to sell their home as they cannot do the upkeep on the property but they do not want to leave it, only to have to find another home to live in.
5. Another common reason that people may want to sell their home and rent it back is to avoid the bank from repossessing the home.
6. If you find yourself in debt way over your head, rather than getting rid of your home all together, you can choose to sell it. You can get the equity out of it and then rent it back. This way it is a win-win situation, you clear your debt and get to keep the home you have come to love so much.
7. With our economy getting harder and harder to deal with, it is no wonder that people can no longer afford the taxes on their homes. This could be a reason why people may want to sell their home but not necessarily leave it all together.
8. With the fall of more and more natural disasters on our economy, homeowner’s insurance premiums are on the rise. This makes it so homeowners can no longer afford to pay the insurance as well as taxes on their homes.
9. Many people have built up a great deal of equity in their home but the only way to get the equity out would be to take a loan out on a house or to sell it. Most often people do not want to leave their home but would like to have the money they built up in equity. Thankfully, there is the option to sell their home and then rent it back so they get the equity as well get to stay in the home.
10. Sometimes people no longer want the responsibility of being a homeowner. The economy being as tight as it is today, more and more people are walking away from their homes. The rate of bankruptcy and foreclosures are on a world record high. This can be a solution to the problem that way the homeowner can keep their credit in good standing and the bank doesn’t have an unwanted home on their hands.

Article Source: http://EzineArticles.com/?expert=Derek_Rogers

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