Real Estate Investor Purchase Rehab Loan.
There are great opportunities for real estate investors in the market today. This is the best market for real estate investors in our lifetime. Unfortunately financing is not available as it has been in the past. There are options for funding purchase or refinance rehab projects for real estate investors. Whether you are investing in commercial multifamily housing or residential investment properties there are lenders to finance purchase or refinance investor rehab projects. Since no secondary market for this type of funding exist, your deals will fall into one of two categories. Your deal will either be non conforming investor rehab funding or hard money rehab funding.
Non Conforming Real Estate Investor Rehab Loan.
Conforming real estate investor rehab loans do not exist. Conforming means there is a secondary market that will purchase these loans on wall street. The secondary market would have established criteria that all projects would have to conform to. Since this market does not exist the first category of loans are considered non conforming. Any non conforming investor rehab loan funded in this must meet similar guidelines to conforming mortgages. Whether commercial or residential these loans would meet the guidelines as all other loans except they require major rehab and are investment properties. This means the borrower, real estate investor, would need good credit, verifiable income, an ability to repay the loan, acceptable down payment and reserves, and higher licensed bonded contractors to do the rehab. The advantage to the non conforming real estate investor rehab loans versus the hard money loans is that the rate and fees are substantially lower. The dis advantage is that there are many more qualification criteria and it takes longer to get the financing. But if you qualify and have the time it may be to your advantage to get a non conforming rehab loan versus a hard money real estate investor loan.
Hard Money Loans.
Though the rates are much higher and the fees will be from 4% to 10% hard money loans could actually be more profitable to real estate investors than non conforming investor rehab loans. First of all these loans generally fund in 2 to 3 weeks. Secondly, the qualifications are much less and therefore you can do more loans. You may only qualify for a hard money loan when you will not meet the criteria for a non conforming rehab loan. As such you have no option.
Qualifications to get Non Conforming and Hard Money Investor Loans.
Both programs require you to purchase property where the after rehab value is 65% or less. Both programs require you to have an acceptable exit strategy to pay off the lender. Non Conforming rehab financing programs will always require a down payment of at least 20% of the total purchase and rehab costs. Hard money rehab funding programs may or may not require the down payment. Both programs will make sure the contractor or investor has the experience and sometimes licensing to complete the project. So if you have the experience, property, exit strategy and assets you can make lots of money by purchasing and rehabbing investment property.
Wednesday, November 18, 2009
The Pros And Cons Of Becoming A Real Estate Agent by Bruce
Becoming a real estate agent has been a great career move for a lot of different people from all walks of life. You do not need to be salesmen to get the people to buy or sell a home you just need a variety of different skills. The real estate industry is a service based industry and being able to service your clients with the upmost professional is the number one key to your overall success.
There are a lot of real estate agents in the field today that chose their career because they feel it is a very lucrative field and they have the chance to be their very own boss. Still others join because they enjoy helping people. They have the ability to set their own hours and they can build their business in the way that they see them being the most successful. However you must be aware that becoming a real estate agent will take commitment and a huge investment of effort to guarantee your overall success. There are also a few other pros and cons that you should also be aware of when you are looking at becoming a real estate agent.
PROS
1. Control * When you become a real estate agent you are in control of your business because you are an independent contractor. This means you will be able to set your own hours and mold your business into what you want it to be.
2. Income Your income is not based on a certain salary amount and because of this you have a pretty positive chance of making some great money. However you need to be aware that the amount you will have the ability to make will depend on your skills and your work ethic. The more skills you have and the stronger the work ethic the more money you will make.
3. Outdoors * You will not always be confined to a desk as you will have the ability to move around. You will be able to spend a lot of your time outdoors as you are showing your clients prospective properties.
4. Future Business * If you take the time to provide great customer service you will be able to expand your business through referrals and world of mouth.
5. People * You will have the sense of satisfaction of knowing that you helped someone make one of the biggest financial decisions of their lifetime.
CONS
1. Independent * Due to the fact that you are an independent contractor you are on your own when it comes to learning the business
2. Income * There will be times where the money is nonexistent. This is especially true during times when the housing market is particularly slow.
3. Availability * You must be on call all the time so that you are available when your clients need you.
All of these pros and cons need to be considered carefully before you decide if a real estate career is right for you.
There are a lot of real estate agents in the field today that chose their career because they feel it is a very lucrative field and they have the chance to be their very own boss. Still others join because they enjoy helping people. They have the ability to set their own hours and they can build their business in the way that they see them being the most successful. However you must be aware that becoming a real estate agent will take commitment and a huge investment of effort to guarantee your overall success. There are also a few other pros and cons that you should also be aware of when you are looking at becoming a real estate agent.
PROS
1. Control * When you become a real estate agent you are in control of your business because you are an independent contractor. This means you will be able to set your own hours and mold your business into what you want it to be.
2. Income Your income is not based on a certain salary amount and because of this you have a pretty positive chance of making some great money. However you need to be aware that the amount you will have the ability to make will depend on your skills and your work ethic. The more skills you have and the stronger the work ethic the more money you will make.
3. Outdoors * You will not always be confined to a desk as you will have the ability to move around. You will be able to spend a lot of your time outdoors as you are showing your clients prospective properties.
4. Future Business * If you take the time to provide great customer service you will be able to expand your business through referrals and world of mouth.
5. People * You will have the sense of satisfaction of knowing that you helped someone make one of the biggest financial decisions of their lifetime.
CONS
1. Independent * Due to the fact that you are an independent contractor you are on your own when it comes to learning the business
2. Income * There will be times where the money is nonexistent. This is especially true during times when the housing market is particularly slow.
3. Availability * You must be on call all the time so that you are available when your clients need you.
All of these pros and cons need to be considered carefully before you decide if a real estate career is right for you.
Monday, November 9, 2009
Day Trading and Home Values - How The Real Estate Markets Create Day Trading Opportunities by The Guerrilla Trader
Day Trading and Home Values - A Summary
It is widely believed that housing drives the national economy. Supporting this theory is the fact that the current economic collapse started with a collapse in home values.
And after the housing collapse, the stock market followed, taking down millions and millions of American's retirement and investment accounts with it.
Many people believe that the housing sector has reached a bottom, and is headed back up. Indeed, there is evidence to support this believe.
Las Vegas recently reported a record month for number of housing units sold. In some markets, prices are starting to creep back up.
Looking at the markets, it seems that investors believe that things are improving. The Dow recently broke through the 10,000 level again, the S&P is up over 200 points in the last four months.
Despite many companies announcing weak earnings for the third quarter, the market is still holding up relatively well, which is likely due to the believe that housing is recovering.
However, this optimism may be unfounded. One leading research firm, Fiserv, believes that the somewhat good news we've been seeing lately on housing is nothing but a "dead cat" bounce.
Fiserv predicts that the overall median home value in the United States will drop by another 11%+ by June of next year, before finally stabilizing, and perhaps a 3%+ increase the following year.
Find more Day Trading articles and resources, visit The Guerrilla Trader today!
CLICK HERE TO VISIT THE GUERRILLA TRADER
Driving the downward pressure on home values will be a deepening of the foreclosure crisis, which is no where near over.
In fact, the record home sales recorded earlier this year in Las Vegas was driven by investors picking up foreclosed properties for ridiculously low prices.
So what does this mean to Quite a bit, actually.
Right now, there are two forces at play. People want to be optimistic about the health of the housing market, and the economy in general. This optimism is leading to an incline in the markets.
But at the same time, reality is the housing crisis is far from over, and at the same time, third quarter earnings continue to be poor overall.
So what will win out? The general investor's optimism for the future, or the harsh reality of the present?
Either way, the volatility created by the two opposing forces will create unprecedented day trading profit opportunities.
For a day trader, volatility is king. That is where profits are born.
As the housing crisis continues, look for negative housing data to battle with investor optimism in the short term, with reality winning out long term.
Short opportunities will abound going forward. Are you ready to take advantage of them?
THE GUERRILLA TRADER
p.s. Like this article? Share it with your friends on Twitter, Digg, StumbleUpon, and Facebook!
p.s.s. Do you subscribe to The Guerrilla Trader? Simply enter your name and email address at our website to be included on our email notifications list - and get a FREE copy of our e-Book The Guerrilla Trader - Classified Insiders' Report
It is widely believed that housing drives the national economy. Supporting this theory is the fact that the current economic collapse started with a collapse in home values.
And after the housing collapse, the stock market followed, taking down millions and millions of American's retirement and investment accounts with it.
Many people believe that the housing sector has reached a bottom, and is headed back up. Indeed, there is evidence to support this believe.
Las Vegas recently reported a record month for number of housing units sold. In some markets, prices are starting to creep back up.
Looking at the markets, it seems that investors believe that things are improving. The Dow recently broke through the 10,000 level again, the S&P is up over 200 points in the last four months.
Despite many companies announcing weak earnings for the third quarter, the market is still holding up relatively well, which is likely due to the believe that housing is recovering.
However, this optimism may be unfounded. One leading research firm, Fiserv, believes that the somewhat good news we've been seeing lately on housing is nothing but a "dead cat" bounce.
Fiserv predicts that the overall median home value in the United States will drop by another 11%+ by June of next year, before finally stabilizing, and perhaps a 3%+ increase the following year.
Find more Day Trading articles and resources, visit The Guerrilla Trader today!
CLICK HERE TO VISIT THE GUERRILLA TRADER
Driving the downward pressure on home values will be a deepening of the foreclosure crisis, which is no where near over.
In fact, the record home sales recorded earlier this year in Las Vegas was driven by investors picking up foreclosed properties for ridiculously low prices.
So what does this mean to Quite a bit, actually.
Right now, there are two forces at play. People want to be optimistic about the health of the housing market, and the economy in general. This optimism is leading to an incline in the markets.
But at the same time, reality is the housing crisis is far from over, and at the same time, third quarter earnings continue to be poor overall.
So what will win out? The general investor's optimism for the future, or the harsh reality of the present?
Either way, the volatility created by the two opposing forces will create unprecedented day trading profit opportunities.
For a day trader, volatility is king. That is where profits are born.
As the housing crisis continues, look for negative housing data to battle with investor optimism in the short term, with reality winning out long term.
Short opportunities will abound going forward. Are you ready to take advantage of them?
THE GUERRILLA TRADER
p.s. Like this article? Share it with your friends on Twitter, Digg, StumbleUpon, and Facebook!
p.s.s. Do you subscribe to The Guerrilla Trader? Simply enter your name and email address at our website to be included on our email notifications list - and get a FREE copy of our e-Book The Guerrilla Trader - Classified Insiders' Report
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