There are many different ways to invest in Real Estate. Many people understand the importance of investing, especially in Real Estate, but don’t know the many different opportunities that are available in this magnificent field.

Every week there are many more Real Estate deals that show up at my office than either I or my staff can handle. It is like sifting for gold. Many are discarded. The possible deals that are left have preliminary research performed and the gold starts appearing. If the deal doesn’t fit my buying criteria, I will sell the Purchase Agreement to another investor who will end up owning the property. Of the deals that I close on, I package some of them up and sell them to other investors with seller financing in place.

All these properties will need to be financed. Some investors don’t want anything to do with the “hands on” aspect of Real Estate but have money available in retirement accounts, savings accounts, or mattresses that are not producing good returns. Most people don’t realize that these assets can be invested in mortgages on Real Estate with annual returns ranging from current bank mortgage rates to double figures. Actually, there are many more people who invest in Real Estate Mortgages than those who find, repair/renovate, and/or rent for income. It is a great passive way to have your money working for you as you pursue other goals and enjoy a more luxurious life. The best thing about this type of investing is that it can be totally “hands off”. Your IRA, 401k, or other retirement account funds can buy or place these mortgages – without paying income tax and other penalties for withdrawal of the funds. If you have a Roth IRA, an added benefit is that all the income made on these mortgages is tax free!

Most “hands on” investors would rather receive mortgage loans from private “mortgage money” investors for several reasons. When a great deal comes by, they need to act fast. Banks may take 30 to 60 days to close. The investor usually must close quickly or face losing a great deal. When a private investor is involved, he can close within a few days. “Hands on” investors are also looking to save up front cash that can be wasted in the form of unnecessary closing costs, points, and bank fees. Private mortgages can much more inexpensively create a win/win solution for both the “hands on” investor and the “mortgage money” investor. Some great partnerships are formed when “cash or credit” investors partner up with “hands on” investors.

I watch current markets. Right now in most areas of the country, there are record numbers of foreclosures. I get excited when the Real Estate market is headed down, especially involving foreclosures. There are many ways to profit from the high foreclosure rate, the decline in property values, and the current “buyer’s market.”

You can buy by yourself, buy with partners, own a portion of a deal, invest cash or credit into loans on properties or projects, or invest in notes and/or mortgages on individual properties.

If you have not set goals, or even if you have, I would challenge you to set one of your goals to be at least a millionaire within the next five years. This is the market, the time, and the place to do this! Yes – even part time! Of course I can’t say for sure that you’ll make it, but if it is ever going to happen, this is the easiest time in history.

Take advantage of the educational opportunities available. There are more seminars and courses available than ever before. Other materials abound, including books by myself and other experts, CDs, podcasts, teleseminars, and much more. Get out there and see what is available. This type of education will save you decades of learning the hard way.

Alan is a millionaire real estate investor with over 25 years of experience. He is an author, speaker and educator specializing in creative and traditional real estate investing. To sign up to hear Alan’s next teleseminar packed with practical know-how, visit http://www.hearthecall.net for free access.

Fha purchase financing is financing insured by the Federal Housing Administration which is a government owned organization that works to extend mortgages to people who do not meet traditional lending criteria. The Fha was established under the National Housing Act, with their goal being to extend financing to people with repayment abilities who otherwise lack the ability to get a traditional loan. The FHA does not provide the finances necessary to fund a loan, however, they insure the loans of those buyers who use their programs allowing lenders who would not otherwise be able to extend them financing to give buyers a loan.

Because the Fha insures loans against default, they have opened up the prospect of homeownership for people who had previously been unable to get a loan. First time homebuyers, minority borrowers, buyers with a poor credit history or a lack of credit, and prospective homebuyers who do not have a lot of money for a down payment or closing costs can purchase a home because of Fha purchase financing.

Fha mortgages have many benefits. The major benefits to Fha mortgages are that they require a low down payment, usually 3% of the home’s purchase price which is much lower than the conventional 10 to 20%, closing costs can be included in the loan, credit requirements are much lower than with traditional loans, and other requirements such as cash reserves may not have to be met like with traditional lenders.

If you are trying to purchase a home and have had trouble attaining financing you should speak with a Fha approved mortgage broker. They will be able to tell you the details of Fha purchase financing and what qualifications you will have to meet in order to get financing. Fha approved mortgage brokers can help you navigate the process of home buying and find a loan that is compatible for your unique situation.

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.
current mortgage interest rates

With economic times not where we want them to be today, the bottom line is how do you survive? Do you suddenly have to tighten your budget and deal with increased stress? Is it possible that you could get laid off tomorrow, if so then what? Can you truly plan a family vacation for the summer not knowing what will happen next? People always ask are we really in a recession? It is my profound belief that if you are not better off right now then you where last year, that you are in an economic recession.

So the question remains, if things are slowing down in the economy what should you do next? In my experience I’ve learned there are only 3 viable ways to truly ensure that you can beat out the economy. First, have 100′s of thousands of dollars stashed away to basically buy your time through the slow periods. How much do you need? That depends how long your recession last most of us can not predict that at all. Of course you are not getting ahead either and with each passing day, if you don’t have a game plan you are slowly falling behind.

That leaves 2 real solutions, they both involve investment and a serious commitment but will allow you to grow and prosperous even in a down or slow economy. The first is real estate investment for those that are positioned with plenty of liquid capital. The slower the economy the more liquid capital you will need. During a thriving economy you have a tangible asset in real estate that will climb in value. When the economy is slow people can’t afford to buy homes and the rental market will increase. So your income based on rental value will actually increase that way as well. That’s an increase no matter what. Over time real estate is arguably one the best investments you can make for financial prosperity.

OK, so what if you don’t have tons of liquid capital. The bottom line is during a slow economic period whether it is what you are going through personally or a global issue, tough decisions have to be made. Fortunately there is another solution if you are determined. It will still require some investment, just not 100,000 dollars. It has actually been a process and an industry that has created more millionaires then any other in business history according to Dani Johnson’s training and Decide Freedom International’s business overview.

That industry is the home based business industry and, here is why a home business works so well not matter the state of the economy. Normally you have a retail product and as long as the economy is soaring you will be marking more and more of your products via retail. During a soaring economy people feel better about spending money because they feel that they have more of it. If the economy takes a nose dive, people are looking a way to make money and most home businesses provide a way people can make money as well. It’s a win win situation for any business owner, to be able to find a need and meet it regardless of what is happening in the economy.

Not to mention the fact that you don’t have to have all the “business” idea’s to be successful with a home business. Plug into a business with solid training and a proven track record in an industry you feel good about “I like the travel industry” who doesn’t like to travel when they have plenty of money?

A home business will not only allow you to survive during a slow economy but you will be able to thrive, invest in real estate, pay off debt, be your own boss, spend more time with your family, travel the world, and you have the ability to make a 6 figure income.

For more details go to http://www.stacyoquinn.com

Stacy O’Quinn

http://www.stacyoquinn.com

888-572-8842

Well, it opens up an amazing opportunity for those that are willing to roll up their sleeves and get to work raising private money.

Private money, unlike institutional money, is money lent by individuals that are looking to get a better and/or more stable return on their money instead of depositing it with a bank or investing it in the stock market. Usually a bank will accept deposits at a low interest rate and then turn around and lend that money out at a higher rate of return and make their profit from the difference. With private money, the private lender bypasses the bank as a middle man and becomes the direct lender.

With the stock market tanking and investors looking for a secure place to park their money where they’re not likely to lose half its value in a year, well collateralized loans against real estate have become even more attractive. For investors who buy at nice discounts and generate profits from buying and reselling or buying and holding, these private loans present a great opportunity. They facilitate investing in this buyer’s market that has forced many other investors to the sidelines because they are unwilling to do the work required to raise private money.

So, in the future, I predict that the investors who become experts at raising private money will see huge rewards and will help their private lenders too in this shaky economic time.

James Orr is a professional real estate investor, marketing expert and founder of the Learn To Be Rich™ on-line investment game.

To find out how James raises private money for his own business, please see James’ Private Money Program on the Real Estate Investor Cookbook.

He also works with a network of real estate agents, brokers and real estate investors across the United States through the AnalyzedDeals.com website.

Subprime mortgages may carry interest rates of perhaps only 0.1% to 0.6% higher than prime, which seemingly tiny difference translates to thousands of dollars in additional costs to borrowers and higher profits to lenders). The bulk of all mortgage loans, the article goes on to insist are not subprime and therefore have a much lower foreclosure rate. I guess the conclusion drawn here is that if only half of the sub prime loans are in, or headed for, foreclosure…why worry about a measly little forty or fifty billion dollars being ripped from the country’s coffers?

Nevertheless, that dinky little number is growing because of the folly of so many greedy lenders during the market boom of the first part of the new millennia. That is: “Hey guys, let’s loan out 90%, 100% and 125% of the borrower’s home equity value and charge exorbitant rates, that can be hidden by low entry-rate payments, which will consume the borrower when the rates adjust and plow mercilessly into their life savings and pocket books in a few years.”

Well those “few years” are up now and the market is down, and the number of naïve borrowers walking away from their mortgages is at an alarming high. Who can blame them? Why pay off a $300,000 loan on a house you don’t want or need that may be worth only $250,000 today and less next week? Moreover, is it any secret as to who gets jammed into bankruptcy and/or foreclosure first in this kind of economy? Of course not: it’s the disenfranchised that have the least financial wherewithal and recoverability. None-the-less, financial wherewithal notwithstanding, as time chugs on, as it is wont to do, the higher echelon homeowners, breathing freely for now will feel the sting as well, as they soon come to realize the mortgage situations they to have gotten themselves into for the same reasons.

So?

So what?

How do these revelations and my clever retorts help anyone?
Well, let’s discuss that. Let’s talk about how you and I can help folks who find themselves in the maw of this mortgage-lending morass. What follows is one of many scenarios involving our own system of real property transfer: i.e., The North. American Realty Services, Inc. Equity Holding Transfer System™ (PAT. PEND) (the NEHTrust™):

Help for the person threatened with or facing foreclosure

You can utilize our trust transfer program (the North American Realty Services Equity Holding Trust Transfer™ (pat pend) (the NEHTrust™) to legitimately take-over any lender’s existing mortgage payment stream (without a due-on-sale compromise). In the process, you can charge the outgoing party for it (if no money now, arrange for future payments or collateralize a promise to make part of the monthly payments). Then locate a resident hopeful to who will pay you to get into the property, and to whom you can give all homeownership benefits including income tax benefits. This party won’t need much up-front money, or a high FICO score (the weaker the credit, the more the up-front costs, the higher payment, or the lower the percentage of ownership and profit sharing…in this arrangement eviction not a problem and claims of having “equity” in order to force lengthy judicial process and free rent is not possible).

Still short of the cash you want? Bring in an investor (like me or our thousands of NARS Professional Network members) to pay some of the up-front money and/or a part of the monthly payments, in exchange for a piece of the action and a share in future profit from your long-term hold. During the term of the agreement (2 year, 5 years or ??) your resident lives in the property, pays all the bills, handles all the maintenance and other ownership obligations…while you just sit back and share in future appreciation, equity build-up from loan principal reduction and monthly cash flow. All of this and free property management. Not a bad way to generate Wealth and live comfortably.

How is it done? Simply stated, a property owner of record (mortgagor) places his property into a title-holding trust as the beneficiary, then subsequently naming you as a co-beneficiary and manager of the trust and its property. You then bring in a third co-beneficiary who wants a place to call home and who can handle your up-front fees and the monthly payments (with some extra to you each month). By this method, you are enabling the resident beneficiary to have all the same fee-simple bundle of rights in real estate ownership that they’d have if they’d had great credit, gotten a mortgage, paid a large down and went on title. In our scenario, due to their co-beneficiary status in the right kind of trust (Illinois-type land trust model), and their net leasing of the property under specific IRS guidelines, full income benefits are theirs for the taking (re. the underlying mortgage interest and property tax).

What about foreclosure assistance transactions, where the defaulting party wants to remain in the property and can handle it? Well this is usually a rotten idea, but if you do it our way, it can be a lucrative and honest way to help someone in need.

A homeowner who is nearing the point of losing his home can, in some cases, via the use of our systems, bring in a cash benefactor. The two then share in some portion of the equity build-up (from mortgage principal-reduction), along with a portion of the property’s future appreciation potential, for, say, the next 3, 4 or 5 years (or longer if the parties agree).

The recipe for this scenario must be free of any form of unconscionability, and must also: 1) reduce the homeowner’s payments for at least a year; 2) must not “strip (deprive one of)” any of the homeowner’s beginning equity; 3) must not be structured so as to result in a mandatory forfeiture of equity in the event of a subsequent default; and 4) all dealings must always be at no less than, say 80% of the property’s verifiable true Fair Market Value.

So, how does anyone make any money this way, one might ask. Allow me to give you an example of a typical transaction of this type…and see for yourself if truly helping someone with onerous penalties and forfeitures can make an investor benefactor some decent money.

The Analogy: •It is imperative that the homeowner-in-default satisfactorily demonstrate for the benefactor that the credit problem leading to the default was temporary in nature and with logical cause, and that it has since been rectified with a good likelihood of not recurring.

•The homeowner must provide a current credit report with explanations for each negative entry—a brief sentence or two for each one re. why the problem happened and why it shouldn’t happen again.

•The homeowner must be given current comps (comparative market analysis) to sign and date, acknowledging his/her understanding of the true value of the property at inception, along with a statement on the form in his own writing, acknowledging an understanding of the direction that real estate values might be heading (up or down)

•It must be clearly stated in the contract that there is no guarantee of any specific ROI (Return on Investment)

•Let’s say the subject property is valued at – $320,000

•And that the homeowner is 3 payments in arrears ($2250 each)

•The current loan balance is $250,000, including penalties and arrearages

•In addition to the amount to bring the loan current ($7,750), the investor benefactor deposits an additional refundable $5,700 with the trust, with which to create a Contingency Fund (i.e., for the potential of eviction and/or minor emergency repairs): this amount also includes $1,200 that is earmarked for making part of the monthly payment for a while, therefore reducing the homeowner’s aggregate monthly (PITI) mortgage obligation by $100 for the first year (or perhaps by $200 per-month for half of the first year)

•The parties establish a Mutually Agreed Value (MAV) at inception in the mount of, say, $375,000 (10% less than verifiable FMV). Note that in the event that a property would have minimal equity at start, the loan amount becomes the MAV.

•Within the contract, all parties expressly acknowledge a clear understanding that the transaction does not constitute, in any sense, a loan of money, an obligation to repay other than by the disposition of the property; nor can the agreement create or contain interest consideration between parties. This is to say that the agreement is never to be construed as a loan, security agreement, equitable mortgage, partnership, corporation or association). Instead, the intent is for the mortgagor (the borrower of record), to temporarily vest its property in a co-beneficiary-directed, title holding land trust for maximum protection of the property, its title and the investor’s financial interest (the investor being the co-beneficiary and co-director of the trust). The process is analogous to a long term Escrow.

•The documents must provide that in the event that the property would not support the ability to repay the investor’s contribution at term, the agreement will be extended and no such repayment would be mandatory until such amount can be repaid out of the sale or later refinancing of the property.

•The documents are also to provide that at the trust’s termination, the property’s title is to return to the homeowner (borrower) of record, following his or her re-finance of the mortgage, or his or her arrangement for a sale to a third party. This is in order to repay the investor benefactor’s original contribution, along with any agreed-upon share of profit that is above the Mutually Agreed Value at inception. Remuneration of the investor can be by any other means that is mutually acceptable to the parties.

•The documents must provide that in the event of a continued decline in the real estate market, the parties may mutually agree to extend the contract for another term, or the investor benefactor could agree to be cashed-out for an amount less that the original agreed amount, or perhaps with a smaller-than-anticipated share of profit.

•Lastly, it must be agreed that any subsequent default in payment obligations will be met with eviction from the property and a full value buy-out of the defaulting party’s beneficiary interest in the trust…at full fair market value, as would be determined by the defaulting party by means of a certified M.A.I.* appraisal (*Member American Appraisal Institute). Should an offer by the non-defaulting parties be challenged and proven inadequate, then payment in full of the verified amount is to be made to the defaulting beneficiary by means of an unsecured promissory note to be retired upon sale or other disposition of the property at, or prior to, the trust’s scheduled termination date.

Five years later…

Now, let us assume this hypothetical property is valued, after five years, at $400,000. This means that the investor benefactor is set to receive a return of his original contribution of $13,500, and half (could be any agreed-upon percentage) of the loan’s principal reduction (say, $5,000). At that time, the investor benefactor would also be due the same percentage of the resulting accrued appreciation, which is over and above the starting MAV. Given a fifty percent (50%) equity sharing arrangement, this would constitute a total return of $76,200, for a net profit of $62,750 over an original contribution of $13,450 (4-500% return is not bad).

In contrast with the above, let’s say there were to be NO appreciation at all over the five years of the agreement. Should that have been the case, our investor benefactor (and co-beneficiary) would receive a return of his original $13,500, plus half of the loan principal reduction ($5,000). They will also receive 50% of that disparity between the starting MAV and the true FMV (fair market value) of the property at inception (i.e., half of $32,500) for a total return of $21,200 for a profit of $7,700 (i.e., a 57% return on investment…still not bad).

In addition, the above scenario, the NEHTrust™ provides all of the following benefits in this so-called “down market”:

1.Transfer full ownership, including tax benefits…without title transfer to the buyer

2.Acquire (or sell) property of all types safely without cash or credit qualifying…or title transfer

3.Shield one’s property from the prying eyes of neighbors, creditors and lawyers

4.Shield one’s property from creditor claims or judgments, including IRS liens

5.“Sell (or trade)” income tax benefits to lease tenants in order to leverage higher rents while
greatly reducing the tenant’s (tenant co-beneficiary’s) after-tax rental costs

6.Take or allow loan-payment take over without a Due-on-Sale Clause compromise

7.Transfer real estate with one brief document, without escrow, title or lender involvement

8.Structure equity-shares and subject-to’s safely and effectively without title transfer

9.Structure lease options look-alikes without potential for an “Equity Claim” to forestall or thwart eviction

10.Structure lease options look-alikes without its being construed and adjudicated an “executory” contract and with the necessity of a purchase option or option fee

11.Structure partnerships without cost or standard paper work or income tax reporting obligations

12.Avoid reassessment and property tax increases when transferring RE ownership

13.Avoid reconveyance (transfer) fees in most jurisdictions when transferring RE ownership

14.Convert realty to personalty, while still qualifying for 1031 Real Estate Tax LIKE-KIND Tax Deferred Exchange exemption

15.Avoid a property’s involvement in Probate upon the death of the property owner

16.Maintain maximum simplicity of multiple property ownership (only one party signs all documents irrespective of the number of beneficiaries)

17.Eliminate dissention and disagreements among participants

18.Simplify tax-free Gifting

19.Avoid public disclosure of acquisition costs and sales prices (not transfer value appears on the transfer document

20.Avoid the threat of partition by a dissident member during a dissolution of a partnership or a marriage

21.Avoid the necessity of obtaining new title insurance when ownership is transferred

22.Eliminate RE related threats of spousal claims and sabotage in marital disputes

23.Acquire foreclosed-upon properties with simplicity and safety, without bank involvement

24.Avoid seasoning issues and double-escrows with Flips and Assignments

25.”Condominiumize” small apartment buildings (1-10 units) without refurbishment, extra expense or special permits

26.Structure time-shares and fractional interest ownership investments, simply and safely—among the trust’s beneficiaries

27.Handle foreclosure-bailouts and acquisitions without violation of local legislation in mot jurisdictions

28.Make BIG money fast and safely with tenant/buyers who may have minimal (but some) cash and/or poor credit

29.Effectively and comfortably manage out-of-area or out-of state income property through NARS “ground partners” without management, maintenance, negative cash flow or personal involvement

30.Acquire, manage and/or sell over-encumbered and over-leveraged property for big profits

31.Hold ownership in, and live in, your home for years and still qualify for 1st-time homebuyer loan

32.Sail through lightening-fast closings with or without Escrow (due to there being no loan application process to contend with)

33.Enhance your credit strength and financial leverage by not showing an income property inventory on the mortgage app. (trusts show under “stocks and bonds,” pg 2 of the form 1003)

34.Use your Roth IRA to acquire all or some of your beneficiary interests in real estate and never pay any income tax on your millions of dollars in gain.

Meltdown? What meltdown? We don’t see no meltdown! OK, well we do, but we are going to profit handsomely despite and because of it

b. gatten
8/18/2007

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Inner city regeneration projects are becoming easier to fund with property development finance as the mainstream lenders are starting to realise that the profit levels on these types of scheme can be very high.

Regeneration opportunities are usually found in central locations and if selected carefully can represent up to 20% discount in similar property in fully developed areas. The most competitive property development finance is available for good quality regeneration schemes surrounded by good quality housing stock and local amenities. However investors still need to do some careful research and check there is a well-funded renewal plan in place.

Areas such as Stratford East in London, parts of Manchester and inner city areas of Cardiff all have regeneration schemes in place and are proving irresistible to investors and buyers. A good example of the perfect regeneration project would be an area like Stratford in London with the 2012 Olympics being hosted in the area. The levels of applications for property development finance, specifically for regeneration areas are exceeding all records.

There is no doubt that developers are realising that brownfield sites represent the best opportunity. This is because it is far easier to develop a brownfield site than go through all the hassle of applying for planning permission to develop a greenfield site. Finance for property development in regeneration areas is often calculated based on the anticipated increase in overall value once the whole scheme is complete.

The property developer should be prepared to answer far more questions about the scheme as the lender is likely to be very careful to ensure the scheme complies with local planning requirements. Mortgage lenders have improved their product offerings to accommodate the inner city type of property, this includes helping property developers arrange mortgages for residential dwelling situated above commercial premises. In particular the buy-to-let mortgage has really come into its own in this environment. It is not unusual to see an entire development of apartment being snapped up by investors before the project is even ready for viewing.

When researching the property development finance options available it is vital that the developer tries to use a specialist broker. The mainstream residential mortgage broker is sometimes tempted to dabble in commercial finance, usually attracted by the idea of large commissions. In reality arranging finance for property development is a highly skilled job, and relies on experience and personal contacts. Property developers trying to arrange finance for regeneration projects are also well advised to try to use local brokers wherever possible, this is because a local broker is more likely to know of any regional issues which may adversely affect the project.

Local and central government and the EU often help fund larger regeneration projects with grants and subsidies, or by providing infrastructure improvements such as transport, schools and hospitals. Seeing publicity about these types of schemes is a sure indicator that the area is ripe for speculative development. It is worth bearing in mind that some of these larger projects can take several years to come to fruition, so it pays to plan ahead.

It is quite likely that the property developer will also need to consider bridging finance as part of the overall property development funding package. This is because property development finance is not usually available for purely speculative deals, especially where there is no planning consent. Bridging finance can be used to secure the purchase of a site at a discount whilst the value is enhanced with planning permission.

Find out more about property development finance by talking to a commercial finance broker. Spectrum Business Finance have been arranging bridging finance property renovation for over 5 years and have the experience to accommodate most circumstances.