News and Information For Buyers And Sellers A Simple Real Estate Formula
I saw the ads in our small-town newspaper
for years before I realized exactly what was going on. They were
always the same: A house for sale with 5% down and payments of
1% of the purchase price. It might be a three bedroom home for
$90,000, for example, with $4,500 down and $900 per month payments.
It was a simple real estate formula.
A friend started doing the same thing and
explained the process to me. It was a way to get a great return
on capital.... (more) Rental Property Income - How To
You may think that to raise your rental
property income you can just raise rents. However, you can't
just raise the rents arbitrarily, because if tenants leave, income
goes down, not up. Fortunately, there are other ways, including
the ones listed below.
1. Consider raising the rent. We did dismiss
ARBITRARY rent hikes as a cash-flow solution, but check on the
rates for similar units. Are you renting at below-market rates?
2. Charge rent... (more) Easing Your Way Into Homeownership: How Your Real Estate Agent Can Help You Qualify
For A Low Down Payment Mortgage
by: W. Troy Swezey
For many renters, the first step in buying a home is becoming educated about the process. If you’re like many people considering a home purchase, you’ve spent nights and weekends poring over your local real estate section. You’ve talked to friends and relatives about their experiences. Maybe you’ve even purchased a book or tow to help you... (more) Refinancing Real Estate Investments
Why should you consider refinancing real
estate investments instead of selling them? Maybe you've owned
a rental property for years, you've paid down the mortgage, the
value is up, and you want to cash in on that equity. You will
do better to refinance. Here's why.
There are two problems with selling. First,
selling means paying a large capital gains tax. You can avoid
this if you reinvest through a 1031 exchange, but then the point
is... (more) What Is A Sandwich Lease?
A sandwich lease may seem a bit complicated
at first. It also doesn't necessarily work well in all areas.
However, when it does work, it is a great way to invest in real
estate without much cash.
This technique has been used for a long
time, but is still relatively unknown among investors. Essentially,
you lease a property with an option to buy it, and then turn
around and rent it out to someone else, also granting them an
option to buy it. Their... (more) Investing In Billboards
Billboards are income properties without
the usual landlording concerns. Perhaps the biggest problem with
investing in billboards is that there are limited opportunities
to do so in most areas.
I like the idea of a billboard investment.
No toilets to fix, no tenants to evict. Just lease the space,
let the renter do all the painting, and collect the income. Of
course it might be necessary to upgrade the billboard or repair
it every ten years or so, but... (more) Due Diligence - Did You Do It?
Due diligence? You hear the term, but what
does it really mean? Here's a simple definition: "Investigation
and verification of the details of a particular investment."
In real estate investment, you can start this process before
you make an offer, but you also normally have clauses in the
offer that allow you to have inspections done, and reviews of
the books and certain documents.
Due Diligence - What To Look For
You'll need to... (more) Mobile Homes Can Make You Wealthy
Does the myth that mobile homes depreciate
in value keep you from investing in them? Well, they do lose
value in a park, on a rented lot. Mobile homes with real estate,
however, are an entirely different investment.
My mobile home doubled in value in the
twelve years I lived in it. The home deteriorated a little (don't
all houses?), but the value of the land continued to rise. Also,
by renting rooms, I took in far more money from my home than