Three Ways To Purchase Property by Steve Gillman

You can purchase property for cash, of course, and if you have it, this can be the best way to get a great price. What if you don't have the cash? Here are some of you other options.

Partner To Purchase Property

Join the local real estate investing group in your town. Then start taking notes, names, and numbers. Our group here in Tucson meets once a month. The best part of the meeting is the "I have / I want" part, where anyone can stand up and tell the rest what they are looking for, or what they have to sell. I have a list of people now that are looking for everything from mobile home parks to fixer-upper homes.

How do you use this information to purchase property? Here is one of several ways: Make an offer on a property, and include in the offer the right to assign to someone else or bring in a partner. Call the people on your list until you find one that will put up the down payment or arrange financing as a partner.

I announced that I had some money at one meeting, and three days later got a call from a couple that had the financing and down payment on a project arranged, but needed a partner to bring in the money to rehab the property. If the deal is good, you can find the money. If you don't have a real estate investors group nearby? Start one.

The Two-Note Technique

This creative way to purchase property sounds more complex than it is. You make an offer for, let's say, $360,000 on a rental property, when the seller is asking only $350,000. Why, if the seller is asking $355,000 and probably only expects to get $340,000, do you offer more than the asking price? Because the seller will be financing the whole deal, and he needs cash, so you'll be selling one of the loan notes. Let me explain.

You offer two mortgage notes, one for $300,000, and the other for $60,000. The payments on the first might be around $2,000, and $400 per month on the second. You'll have total payments of $2,400 per month (Be sure you still have cash flow). As part of the offer, you arranged for the sale of the second note at closing for $45,000. That's all a note investor is likely to pay for an "unseasoned note". The seller gets $45,000 in cash, and payments of $2,000 every month for 30 years. The note investor gets your other payment of $400/month.

The numbers will be all different in every deal of this sort. Maybe you have some cash. Maybe the seller needs more cash, so the second note will have to be for a higher amount. Interest rates, balloons, and your credit rating all affect what a note buyer will pay for the note too. The point is that you can create cash out of seller financing, meaning you can purchase property with nothing down, or with less down.

No-Doc Loans

These loans used to be harder to find, and may still be in your area, but they're everywhere around here right now. The idea is that you don't need documentation of a job or even income, hence the name "no-doc." The bank loans based on your credit score and the property. I can get 95% financing on a $300,000 house without any job or income right now.

The catch, apart from needing either great credit or a larger down payment, is that the interest rate will be higher. Now, suppose you find a $100,000 fixer-upper and can put the $5,000 down payment and the repairs on your credit cards. In this case, the few thousand in interest over the six months you own the house isn't much if you intend to make a $25,000 profit.

On the other hand, the higher interest will really add up if you are going to live in the house for 30 years. At the moment, the banks around here seem to want about 2% more for these loans than for conventional mortgage loans, and that is a lot of extra interest over the years. Bottom line? No one way is right in all cases. That's why you need to know many ways to purchase property.


About the Author

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit Houses Under 50 K

How To Make Money In Real Estate Without Buying Any Property: Become A Mortgage Broker by ameen kamadia

How To Make Money In Real Estate Without Buying Any Property: Become A Mortgage Broker by ameen kamadia

Everyone is asking the same question. Will Real Estate prices keep going up or will the bubble burst?

Who knows? Either way, real estate is a risky business. Tying up all that money and having very little liquidity can spell disaster for any investor.

In any hot market there are always ways to make money without taking any risk yourself.

Just look at Levi Strauss. He traveled west during the Gold Rush to make his fortune as a gold miner. But he found that it was harder than advertised. So instead he did the next best thing, he started selling to the miners. He sold them something they all needed - jeans! And he made his fortune without risk. In fact, many of the store owners in that area got rich selling to the people who had the "gold bug"

If you want to make money on the real estate boom, I suggest you sell to the people who have the "real estate bug". The people who want to get in on the bull market and make a killing. Sell them something they all need- money!

You can do it just like I do, become a mortgage broker.

Become a mortgage broker and you can easily make hundreds of thousands of dollars by helping other who want to get rich quick in real estate.

There is very little cost to get started and no risk. When you become a mortgage broker, you can still keep your day job and work part-time while making a full time income.

In many states you don't even need a license to become a mortgage broker. You can get started today!

There is more demand for mortgage brokers today than ever in history. And demand will continue to grow. The U.S. population continues to grow. Everyone wants the American Dream of owning their own house. If you become a mortgage broker you can make that dream come true for your fellow Americans.

If you want the cards stacked in your favor you should really look a little closer at the trends that give more reasons to become a mortgage broker.

- The U.S. Population is growing exponentially.

- Americans are saving less then ever before - if someone wants to buy a house, they have to borrow money. They have no choice. They must use your service.

- As home prices go up, so do mortgage broker commissions. The fees are a percentage of the loan amount.

- More and more people are buying second homes and vacation properties.

- Over 65% of people getting a loan use a mortgage broker instead of a bank.

When you become a mortgage broker and work part-time you can work from home and keep your day job. If the market goes up - great!. If the market goes down, people will be selling their homes and investors will be buying. These investors will need loans from you to buy. You make money either way.

You could also be a real estate agent. But you'd have to drive people around all day. Becoming a mortgage broker means you can sit in your office while people come to see you. There is no need for you to go anywhere.

After you become a mortgage broker, life will never be the same.
About the Author

Ameen Kamadia, known as "The Millionaire Loan Officer" offers dozens of free articles about mortgage marketing. Get dozens of great cheap lead generation ideas at his Mortgage Marketing website.

Is The Real Estate Market in Montclair and Nationally Finally Bottoming Out? Post 2

In our last post we asked the question whether the real estate market in upscale communities like Montclair New Jersey, Manhattan NY, and Los Angeles CA are slowing down.

We explored some of the indicators that may indeed forecast a slow down in real estate in these in-demand areas. We cited some real estate experts in our last post.

They claim that the rental market is already showing signs of this behavior. For the first time in years, it has become cheaper for families in the US to rent a house rather to own it. They point to the fact that this behavior has been in evidence across several major US cities for some time now. The rising interest rates have been blamed for the emergence of this scenario. Their data is especially pronounced for the high-end segment of the real estate market in cities like New York, San Francisco, Washington, and in areas like southern California.

Even the prospect of gaining a valuable tax deduction through a mortgage is not tempting families into buying homes (this had always been a big incentive for buyers in the past).

In fact, the data points out that renting a house, rather than buying one, can save, on average, thousands of dollars in a year. They claim that a scenario is emerging where the supply now outstrips the demand, and therefore, the market will bottom out. This is especially true for the apartment market. They predict that even homeowners will begin to sell off their homes to move onto rentals because it will just make much more financial sense. If this disturbing trend is replicated across the country, we will be facing a major real estate slump in the future.

Others experts believe that the market is very stable and much too heterogeneous for any single consensus or trend to predict its rise or fall. We will continue to discuss both sides of this forecast in our next post.