Proof of Funds when Buying A House
Proof of Funds are needed anytime investors are buying a house from the bank to flip to another investor or rehabber for profit. Proof of funds is a way for the bank to verify that the investor does in fact have the necessary funds to complete the transaction.
Read More >>>Real Estate Crowdfunding with Focus on Cash Flow
The recent trend toward the online “crowdfunding” of investment opportunities has started to make real estate investments available to accredited investors. But real estate is an illiquid asset – so how can current income be realized during the period before a sale might occur?
Read More >>>Real Estate Investing for Beginners
Real estate accounts for 60% of the world’s mainstream assets — and a significant portion of all national, corporate and personal wealth. With that in mind, real estate investing clearly deserves consideration from any individual or business looking for asset classes in which to invest a portion of their capital
Read More >>>Seven Reasons for Peer-to-Peer Real Estate Marketplaces
Peer-to-peer marketplaces give many investors a chance to invest “passively,” which means separating their investment income from any significant time commitments. This is how investments in stocks and bonds work – you’re not actively working with the company you invest in, and it’s not your day job—you just want to help finance their growth. Active investors, on the other hand, may want a new source of financing—one that is familiar with their business.
Read More >>>Short Sales & How They work
Short Sales are one of the most effective techniques for discounting loans in real estate. Short sales create huge investment opportunities and are a must if you want to be competitive in this market. There are several important steps when conducting a bank short sale. Too many times, beginning investors skip vital steps that ultimately cost them the deal. Many of the rules have changed regarding what the banks will and will not allow you to do. The process on average is taking a longer because of all the inventory. However, there is almost 3 times the opportunity for real estate investors and a good time to start doing short sales.
Read More >>>Simultaneous Closings
How to perform or structure a Simultaneous Closing - Double Closing - Back to Back Closing?
Each state has different laws or requirements when performing or structuring a simultaneous, double or back to back closing and the laws are always changing. What they could do 5 years ago, they may not be able to now. Some states don’t allow simultaneous closings, others do. Some title companies allow this, other’s don’t. However, it’s becoming more and more difficult to do a simultaneous or double closing because of the stricter laws with the lenders. Anymore, they want skin in the game and require (wet funds) to stay in the game. But, we as investors always seem to find a way to make it work. It’s still in your best interest to search diligently for a title company that will handle this unique or creative way of closing on a property. They will be able to assist you in making sure it is performed properly according to your state’s laws and regulations.
Read More >>>Techniques on Financing Foreclosures.
Financing foreclosures is the part of this business that people are worried about most. Most people automatically assume that you have to have money to invest in foreclosures, which is what keeps them from investing. You will be happy to learn that you don’t have to have money to start investing. Obviously everyone is in a different financial situation, so not every technique we share with you will work. You just need to find one that works for you and go with it. Even those with bad credit, no money, or no job may capitalize on foreclosure opportunities. In fact, financing foreclosures is the easier part when it comes to buying foreclosures, finding them can be the biggest challenge, unless you know where to look. These are all great techniques which we discuss more in depth in our best selling foreclosure ebooks.
Read More >>>Tenancy in Common
Here, each individual owner also has an undivided interest in the property.
Read More >>>Tenancy in the Entirety
This title is connected with marriage, as it can only be created by a husband and wife.
Read More >>>The Foreclosure Process
The foreclosure process begins whens homeowners are not able to make their mortgage obligations. This could be due to job loss, sickness, death, divorce and other hardships. Once the homeowner is behind on payments usually more than 90 days, the lender will begin the foreclosure process. Every state will either use a mortgage or trust deed as their legal means to secure a property. Depending on the state that you live in, the mortgage foreclosure process is different from the trust deed foreclosure process.
Read More >>>The Sell or Rent Decision for Rehab Investors
Fix-and-Flip Projects
In planning real estate projects for 2015, rehab investors often tackle fix-up projects of foreclosed and older homes. After the repairs are done, though, should investors “flip”—sell—the property, or hold it and rent it out?
A successful fix-and-flip project can provide flippers a substantial return on investment. Distressed or foreclosed properties can sometimes be purchased at a fraction of the cost of nearby comparable real estate. After adding some modern touches to the fix-up property to appeal to today’s homebuyer, flippers can hopefully sell the property at current market rates and reap a decent return on investment.
That dynamic changes a bit, though, if renters remain the dominant force in the housing market.
Read More >>>The Short Sale Process
The short sale process is fairly simple to understand if you have any experience with real estate. Let’s go through the different steps in a short sale so you know exactly what you are getting yourself into. The short sale process starts when a homeowner is delinquent at least 90 days and has been issued a notice of default. The lender is now in a position to accept less than what is owed on the mortgage. The investor or real estate agent handling the short sale will need to sign an authorization to release form that will be sent to the lender giving them permission to speak to the lender on the homeowners behalf.
Read More >>>Transactional Funding FAQ?
Does my credit or income affect my ability to use your funding?
NO! We do NOT have any type of credit or income requirements associated with our program! Unlike others, we do NOT base fees or approval on your background or current financial situation. Everyone qualifies for funding… as long as you they meet our requirements!
Can I use my own Title Company or Closing Attorney with your transactional funding?
Yes, you can choose your own closing agent; whether that is a title company, closing attorney or other escrow agent. We will verify their credentials prior to closing. If you need a referral, we have a vast network of closing agents that we have worked with previously, to help close your transactions. Regardless of whom you choose,
Read More >>>What is a 1031 Real Estate Exchange
Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”
Read More >>>What is a Short Sale?
A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $300,000. You write an offer to the lender for $220,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.
Read More >>>Topics
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