Unless you’re independently wealthy, when you purchase real estate you’ll need a real estate loan to close the deal. Such loans, usually called a mortgage, is the fiscal vehicle by which property buyers finance their acquisitions. While a mortgage is very usually a large sum of money, and the real estate is often the most expensive thing most of us will ever buy, for real estate investors it will soon become a regular occurrence in their normal business dealings. But regardless, you shouldn’t let fear or confusion keep you from the mortgage process, or the land you want to secure for yourself.
Application for a loan requires: time, paperwork and patience.
Check Your Credit Score
Bad Credit = 300-600 FICO score
Poor Credit = 600-649
Fair Credit = 650–699
Good Credit = 700-749
Excellent Credit = 750-850
Pull Your Credit Report and Check for Inaccuracies – You may need to do some work here. There can be loans that are paid off that have not dropped off of your report. You will need to get on the phone and clear up any inaccuracies. This can take time (months) so plan early in your home buying process.
Know your Debt-To-Income Ratio – You are aiming for debt less than 36% of your income. So pay off any loans or debt you can to be viewed favorably in the home loan process.
Before shopping for the home you want – determine what you can afford. You want to be able to comfortably make your payments so stick within your means.
Necessary Paperwork – Home Loan Companies are going to want to see your work history and income information.
Down Payment – Many lenders require 20% of the home value for a down payment. Start saving early!
Compare Lenders – Not all banks and mortgage lenders have the same deal. Pay attention to your loan percentage rate, down payment required and closing cost percentages when comparing lenders.
Even looking for a mortgage can be complicated, and the mortgages themselves are often full of details and paperwork that apply to the process, but it is possible to navigate through and emerge on the other side with a mortgage that’s steadily paying off your brand new piece of real estate. Most people will go through a traditional mortgage loan, one extended by a standard financial provider such as a bank. But some mortgages are offered by private sources. Some can be obtained by using existing property you own to secure the loan. And there are even certain kinds of investment loans that you may qualify for, and can use to make your purchase.
Enjoy your new home without stressing about the process and paperwork. Everything made easy for you #Ironclad
Key Points:
1 -Traditional Loans – Mortgages by banks or financial institutions
2 -Private Money – Investors lending capital.
3 -Home Equity Loans – Using existing real estate equity to purchase additional property.
4 -Qualifying Loans – Loans for specific groups of people such as a VA loan for veterans.
5 -Hard Money Loans – These loans are secured by collateral (current assets).
6 -Crowdfunding – Small contributions from many individuals.
Even when seeking real estate investment loans, it’s crucial to understand the importance of preparation.
Enjoy your new home without stressing about the process and paperwork. Everything made easy for you
Curious about how to get accepted for a real estate loan? look no further!
See the original at: https://www.fortunebuilders.com/real-estate-loan/
Though it might not seem like it, the real hurdle with real estate investing isn’t coming up with the funds to invest with. It’s knowing what to invest in, which properties to focus on and which are lemons you’ll never make sweet. Educating yourself is key if you want your investments to trend toward the good rather than the disastrous. But how to learn? One simple way that almost anyone can fit into their schedule, one that can actually be more beneficial the more time you spend on the go, is turning to podcasts that cover the field of real estate.
10 Top Podcast Resources
A ton of information goes into the principles of sound real estate investment. How to spot good properties from bad, when to buy or when to sell, methods and techniques for renovations and repairs, and more are all necessary things to learn about if you want to invest successfully. With a podcast, you just need time to listen. As long as you think about what you’re listening to, the audio format can combine with other activities like commuting or exercising, and let you be following your goal of becoming a successful real estate investor despite your busy schedule. Finding the podcasts can take some research, but compared to absorbing the lessons these podcasts will teach, that’s the easy part. Start with best of lists, look for names that continually pop up on real estate blogs, and start learning today.
Have you ever wondered how to jump into the investment real estate game?
Key Points:
1. When trying to up your investor IQ at the same time you’re starting a real estate business, it can feel like there’s too much to cover, and not enough time to cover it.
2. Although there may not be a one-size-fits-all path to get into real estate investing, there are a few steps that all aspiring entrepreneurs could benefit from.
3. After you take stock of your personal goals, it’s time to dip your toes in the water and begin learning about real estate investing. Try researching the various investing strategies available to you.
Start by taking stock of your current financial standing. Evaluate where you are in life professionally, and what your financial goals are for the future.
See the original at: https://www.fortunebuilders.com/real-estate-podcast-list/
As a rental property owner you can do all things yourself or higher a management company. Both of these options can be successful. Managing a rental can require time that you may not have. If that is the case a Property Management company could be the solution.
A property manager is hired by property owner to handle the day to day operations of that property. Their job includes:
Marketing vacant space
Signing leases
Collecting rent
Repairing and maintaining the property. This can include lawn care, drywall patching, appliance fixing and plumbing issues.
Dealing with defaulting tenants
Keep detailed records of income and expenses for each property
If you don’t want plumbing calls over the weekend a property management firm may be the way to go. Even though you must pay them to look after the property and all its problems your time is freed up to look for other money making opportunities and not plumbers who work on the weekend.
However, if you choose to be your own landlord you can pocket more profit by saving property management costs.
A good property management company should:
Get you better quality tenants.
Fill vacancies quicker.
Create fewer legal problems for you.
Learn how to manage your rental property the right way with our ultimate guide to get you there.
Key Points:
1. A rental property management company is more of an investment and not a cost.
2. Rapid response is critical for renter’s happiness and good reviews.
3. A property management fee can cost around 8% to 12% of the monthly rental income.
Rental property management companies—specifically good ones—are worth their weight in gold.
Learn how to manage your rental property the right way with our ultimate guide to get you there
Become the ultimate rental property manager you can be with our competitive market tips.
See the original at: https://www.fortunebuilders.com/rental-property-management/
If a person is looking for another way to invest their money; going into real estate appears to be a viable option. Real estate note investing is not as commonly known has the practice of “flipping” a house. When a person chooses to purchase the document/note for ownership of a home that individual is a position to make immediate profit. This scenario can work for both private and conventional real estate notes. A real estate note is the IOU on a property. This is generally a loan/note obtained from a lending institution promising to pay a certain amount to the lender plus a percentage for the loan. A note can also be held by the property seller. In this case, the seller agrees to sell you the property and you pay them direct so much per month plus interest until the agreed amount is paid in full.
These “notes” can be bought and sold. Many times these notes can be bought for less money than is owed. This difference can give you a yield higher than the original interest rate.
In this process of of buying real estates notes three factors needed to be considered and evaluated. They are the paper , the property and the payor .
The Paper : This is the actual note document. Make sure to get all the details about the original deal. The balance owed, current interest rate, number of payments left etc.
The Property : A current appraisal of the inside and the outside of the property is a must. Know the value of this property before taking over the note. It is also advised not to invest anything into the property until ownership of the note is established. Find out if this is payor occupied or a rental. If rented what is the rental income.
The Payor : The last step in this process is gaining as much pertinent information about the person(s) paying on the note. It is good to know as much as you can about the credit worthiness of the individual(s) because when you own the note, you have become the payor’s bank.
Interested in investing in property? Check out these three P’s to start getting double-digit returns.
Key Points:
1. Have legal documents drawn up in the state where you are buying the note for your own protection.
2. Don’t spend a dime without knowing the true cost.
3. Notify the payor of where to send their new payments.
The best appraisal is a complete one, inside and out.
See the original at: https://thinkrealty.com/note-investing/
Few investors have unlimited funds to fuel their portfolio growth; you’re always looking for ways to accomplish your tasks with what financial resources you have available, even if they’re not as ample as you might desire. Some investors will try to compensate for limited funds by looking for ways to grow their portfolio, so there are many sources of incoming revenue. Another strategy, however, is to instead look for opportunities to increase the revenue from properties you already have interests in. This attempt to maximize investment income from your rental properties can allow you to grow up rather than out as you build your property investments.
One way is to look for service opportunities at your existing rental properties, and seek to fulfill them so tenants and renters obtain those services from you instead of another vendor. Landscaping and laundry are two easy examples.
Separating garage and other storage or parking space from the main rental contract, so it’s an additional monthly fee, can also boost your income from renters.
Another opportunity is property investments that add value to the holding, and thus increase the rental income tenants are prepared to offer. This could include, for example, renewable energy such as solar, which would allow tenants to pay those utility fees to you rather than the power company.
Also, consider furnishing your properties, so tenants are willing to increase what they’re paying to rent in exchange for the furnished property.
Want To Ramp Up Your Rental Income? We Have Exciting Tips That Will Keep You Ahead Of The Game!
Key Points:
1. Millennials are going to be one third of the population by the year 2020 and they are very willing to pay for convenience related services.
2. Updating your property by adding a garage can generate more income.
3. Offering dry cleaning services, dog walking or snow removal provided by you can generate more income.
The secret about furnished rentals is that people don’t expect the furniture to be brand new, so you can furnish it with used pieces.
Don’t wait any longer! 5 Easy ways to make rental income on your property!
See the original at: https://www.jasonhartman.com/dont-waste-time-5-ways-to-accelerate-creating-rental-income-on-property/
Networking, often more than even good financing and fiscal resources, is the foundation of a successful real estate business. Your network of contacts in real estate are key to allowing you to not just find buyers and sellers, but mortgages, inspections, agents, attorneys, and others who provide valuable services will be critical in your operations. Getting these services is not as simple as ordering them off a menu, not if you want good results in a timely and affordable manner. Take mortgage brokers, for example. Sure most people who run investment style businesses, such as a real estate company, could walk into a bank or pick up the phone looking for a loan; but a mortgage broker has his or her own network of contacts who will put the right loan in front of you, at the right time, with the right terms. Inspectors can be found in the Yellow Pages or online listings, but an inspector who’s not only affordable, but trustworthy and talented, who will save you money down the road by not missing expensive problems? When you build your network of contacts in real estate, you’re building your real estate business with a foundation for financial success. Don’t look at networking as a distraction; view it as the key to everything you’re working toward.
The most important part of your real estate investing is your Network. Here’s who should be in it.
Key Points:
1. Networking to get to know other professionals who can work with you to be successful is the only way to go.
2. Having your own experts in all areas of real estate at hand can only help you grow your business.
3. While the effort to set up a network might require some work, it is well worth it in results.
It is okay to start small – or even use social media to your advantage – but you must put in the effort to expand your real estate investment network each and every day.
The most important part of your real estate investing is your network. Here’s who should be in it.
Who you know is often more important than what. When it comes to investing in real estate, who will definitely turn into what’s in your bank account. Knowing the right people can save you time, money, unplanned for expenses, and solve problems before they turn into disasters.
Rehabbing houses has become a popular way to make money in the past few years. You don’t always need a lot of money of your own to get started. It is possible to go into flipping homes with little to no money with the right investors.
To help you succeed create a checklist to take with you when reviewing homes to flip, this can help keep you from missing something critical. Here are items to consider when making your list:
Research the market in your area to understand what money can be made.
Find the right contractor; anyone getting into this business must have a good relationship with a knowledgeable contractor.
Never show up to a property empty handed. Always bring essential tools like camera, flashlight, tape measure, and calculator.
Review the exterior for any damages, or things that will need to be fixed.
Review the interior of the property checking for things that will need repairs.
Look at the kitchen fixtures and check to see if they work properly or need any repairs.
Review the HVAC systems, plumbing and electrical work for repairs (if any).
Examine the door trim that consists of going around and looking at the trim and seeing what needs to be repaired.
Get the property ready to sell. This is the last but most important step in the process. This takes a lot of work, one could choose to do this by themselves or they could hire a staging company.
Be prepared to do some work before choosing a property to flip. Having a check list will help you not miss something critical that could end up costing you in profits.
Don’t skip any details when you’re rehabbing a house. Use the checklist and get it done profitably!
Key Points:
1. Know what potential buyers in the area want in terms of fixtures and finishes.
2. Do not forget to address curb appeal when rehabbing.
3. Keep a camera handy and take lots of pictures of the property to remind you of the rooms and layouts.
Buyers will go straight for kitchens and bathrooms when touring a new property, making these crucial areas of your home.
Rehabbing a house is taking a property that needs some love and affection, lavishing all that upon it, and turning the newly rejuvenated property around to a happy new buyer. It can be profitable and rewarding, and any real estate investor can do it if they only follow the basic steps to take distressed to delightful.
See the original at: https://www.fortunebuilders.com/real-estate-rehab-checklist-how-to-quickly-estimate-repairs/
So – you’re looking for passive income. Aren’t we all? I’m sure you’ve seen it all over your Facebook feed these days . You have friends relaxing, doing no work at all – enjoying their days on the beach. What if I said that could be you? Real Estate investment is one of the best ways to earn passive income.
I know what you’re thinking – “I don’t have time to flip a house or the money to rent out an apartment!”
Did you know that real estate investment isn’t just flipping houses and dealing with bad tenants? It can be so much more. It’s truly one of the easiest ways to earn passive income!
You might be wondering the definition of passive income: it is exactly how it sounds. Passive income is earning money after the work is already done, with little upkeep.
Anyway, back to what I was saying: you don't have to rent out a room or flip a zombie house to earn passive income with real estate. One of the easiest ways is through an REIT (Real Estate Investment Trust). An REIT is a simple mutual fund that is through a real estate company. You don't even need to own property, you can use an REIT without it!
Start investing now!
Make your money work for you, turning a profit even when you’re not working!
Key Points:
1. REIT is a mutual fund that allows you to capitalize from the real estate economy without having to actually own property yourself.
2. Real estate can be a viable option for anyone trying to earn passive income.
3. Whether you have, 500 dollars or 5 million dollars, there are oppurtunities for people at all levels of income.
Real estate is one of the most popular passive income ideas, and it can be so much more than renting your property or flipping houses
Make your money work for you, turning a profit even when you’re not working!
Want your money to benefit you, and build into more, rather than just being something that flows out of your accounts? Passive income lets you do just that, and keep earning no matter where you are or what you’re doing. Read on for some great ideas for how to get started with a passive income stream.
There is no doubt about it, Garrett Gunderson is one of the most successful entrepreneurs in the entire world. He’s so good with money that he has written multiple works on the secrets of prosperity and has been invited to talk shop on programs ranging from Good Money On ABC to CNBC’s Squawk On The Street.
Garrett Gunderson gives some basic tips about the type of mindset that differentiates the poor/middle class from the truly prosperous and his perspective on this is no doubt interesting.
ECONOMIC DECISION MAKING
Another important component is “investor DNA”, now what does having Investor DNA actually entail? Essentially, it refers to the courage needed to take risks and make investments that might seem crazy to everyone around you. Investor DNA is the mental fortitude required to trust your instincts in the face of opposition.
INVESTOR DNA
These 3 most precious resources = our
Financial Capital
Mental Capital – our ideas, knowledge, wisdom, tools and insights
Relationship Capital – all the people we know organizations we belong to, friends and family.
However, is that truly all that is needed to be rich and successful? Well, Mr. Gunderson also has some more specific bits of advice such as don’t diversify your investments and focus on only one,and that there is no such thing as a bad investment but only a bad investor. Whether you agree or disagree with this approach to business, it is no doubt an interesting one.
Don’t forget who you are, and what you’re after, when you look to invest in real estate!
Key Points:
1. You should invest in things that you know about.
2. You make money on the “buy”.
3. Don’t focus on accumulation focus on cash flow.
Once you achieve economic independence, you have a ten times advantage over everyone else that has to take their income to live off of it.
If you’re looking to increase the size of your property investments, the best way to do it is by sticking to your vision and yourself. If you look for investments that aren’t you, that go against how you want your money to be working, it’s going to put you at odds with your goals. Stay on course by being true to yourself.
See the original at: https://www.passiverealestateinvesting.com/how-to-grow-and-protect-your-wealth-with-garrett-gunderson/
As any person knows, quitting your full-time job is a huge risk. On top of that one may try to become a full-time investor which adds on to the risk. Even if you feel successful there are many ups, and downs to it. A former full-time employed worker, and now investor, Lane Kawaoka talks about his experience quitting his job as an engineer, and becoming a real estate investor.
Lane mentions that one of the things that motivated his risky decision was that he simply didn’t like his job. Even though he had a $100,000 salary, he realized he wanted more out of life. Despite his distaste for his job, it was the factor that led him to become a landlord, and future investor.
In the beginning, because Lane Kawaoka was 100% traveling with his job, he rented his residence and immediately was making money on his mortgage. The rent he was generating was netting him a profit of $600 per month. This was the beginning of realizing the beauty of passive income.
Soon after, he would build a team to assist him in investing in property all over the US, from California to Florida. Then he could make the decision between his day job, and quitting to focus on being a full-time investor.
Lane then mentions that the hardest part of making this decision is fear. The fear of losing the things you already have, and can he go without losing these things, and what things he can lose. In his case he was already taking the steps to reach his goals, and was fine with taking these risks, and losses. Eventually he would build a steady flow of passive investing making him into the successful investor he is today.
Lane Kawaoka has some tips about turning real-estate investing into your primary income.
Key Points:
1. The property manager to me is the most important team member.
2. You need to be able to quality for financing in order to increase your portfolio.
3. Know your numbers, how much income do you need monthly and what percentage of increase is that in your current passive income.
I would say if you’re a passive investor, you shouldn’t be spending more than a few hours a week being a passive investor.
Real estate investing doesn’t have to be a part-time job, or something purely passive either. It’s possible to make turning a profit on property turnover and development into a full job and your primary source of income. Lane Kawoka has done just that, and has tips to share that will help outline the basics. Make your money work for you, and turn into a primary income source!
See the original at: https://www.passiverealestateinvesting.com/going-from-full-time-job-to-full-time-investor/