financing

Real Estate Investing

My Three Biggest Mistakes as a Real Estate Investor

by Chris Clothier | November 16, 2011
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When I first started investing in real estate, there was an expression that the seasoned investors at the local real estate investors club used for investors like me.  It wasn’t that I was a ‘newbie’.  They didn’t say that I was ‘green’ at investing.  None of the usual monickers that get attached to those that [...]

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Financing Real Estate

If You Can’t Find Real Estate Financing, Find a Partner.

by Ken Corsini | September 21, 2011
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With lender guidelines continually tightening, investor financing has become more difficult than ever to obtain. Investors that I worked with even a year ago to acquire investment properties with conventional financing are having trouble getting approved for a loan in the current lending environment. Whether it’s a borrowers borderline debt to income ratio, credit score, [...]

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Real Estate Investing

In Real Estate, and Life, Cash is King

by Marty Boardman | February 17, 2011
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You have a deviated septum.  That’s what the doctor said to me.  Have you ever broken your nose, he asked?  No.  He then explained it’s possible my nose developed this way over time.  How does that happen?  Well, if you combine an already somewhat crooked nose with a rash of sinus infections you may end [...]

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Financing Real Estate

Mobile Home Financing: A Primer

by John Fedro | April 9, 2010
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Securing traditional financing for mobile homes and manufactured homes can sometimes seem difficult, especially in our current economical market.  Whether the mobile home is new to you or being refinanced, lenders typically have stricter underwriting guidelines than more traditional site build homes. Building codes changed in late 2005 after the severe hurricane season experienced in [...]

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Real Estate

Contract Contingencies and 4 Rules for Using Them

by J Scott | March 31, 2010

In today’s blog post, I want to talk a about Real Estate Contract Contingencies — what they are, how they’re used, and some rules for using them in your contracts. For those who aren’t familiar, a contingency is a statement (a “stipulation” it’s sometimes called) that is added to your contract that will allow you [...]

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Mortgages & Lending

Option Arms – the Big Bang That Didn’t Come (Yet)

by Florence Foote | March 23, 2010

Josh Dorkin and I have both previously blogged about the looming threat posed by “option arm” loans, sometimes cutely called “pick-a-pay” loans. These are loans in which borrowers can decide how much to pay each month, with many predictably going for the minimum payment option. The Downside Possibilities What many borrowers may not have fully [...]

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Commentary

Inflation Is The Real Estate Investor’s Best Friend.

by Florence Foote | November 24, 2009
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Actually, if you are investing in stocks and bonds, mutual funds, or just about anything else (except, perhaps, commodities), inflation can be a real killer. The title of this article was adapted from a recent article in Forbes entitled “U.S. Dollar Has A Long Way To Fall“, which posed the question: “[w]hy does the Fed [...]

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Financing Real Estate

The Interest-Only Loan “Extend and Pretend” Strategy

by Florence Foote | November 10, 2009

One of the worst kinds of sub-prime loans was the infamous “pick-a-pay” (Payment Option ARM) under which borrowers had the choice of how much payment to make each month, with the lowest options being negatively amortized, i.e., reducing the equity in a property every month. These loans took the concept of house-as-piggy-bank to another level [...]

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Financing Real Estate

Is Fannie Mae Killing the Golden Goose?

by Florence Foote | November 3, 2009
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One study of mortgages during the Great Depression found that almost half of urban, owner-occupied homes (on which there was a mortgage) were in default by 1934. The government’s answer was to sponsor the creation of Fannie Mae in 1938 (or as it is really called, the Federal National Mortgage Association), which was, and still [...]

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Real Estate Investing

Residential Land Development – Part 3: Zoning, Design and Financing

by Craig Grella | October 23, 2009

To recap Residential Land Development Part 2, we discussed the importance of performing an economic feasibility study with cost estimating to determine a max price land offer and whether or not there is enough profit in your potential deal to warrant spending more time on it, or actually developing the land.

Assuming you’ve done that initial research and arrived at the conclusion your numbers look good, you’re ready to go back and do it all over again. This time you’re going to be more exact with your numbers. To do that, you’ll really need to hone in on the potential design of your house, and to do that you need to research what’s possible on your lot. You do that by learning all you can about the zoning codes in your city. These are the third and fourth steps in the residential land development process.

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Financing Real Estate

Simple Rules for Raising Capital

by Matt Pitcher | November 21, 2008

Piggybacking on my last post, “The Importance of Being Nimble“, I’d like to blog today about something that is absolutely critical to your ongoing investing success: raising capital. In my opinion, it is a skill you must develop. Must. Not should. Must. Once you become very very good at raising capital, any amount of capital, [...]

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Financing Real Estate

The Top 15 Reason to Own an Apartment Building as an Investment Right Now

by Ted Karsch | October 14, 2008

You control the cash flow. Unlike other, passive, investments such as stocks and bonds, the owner of an apartment building is the CEO. If you need more cash flow and the local market will allow it, the owner can raise rents. If you don’t want to manage the day to day operations of the apartment [...]

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Financing Real Estate

4,150 Reasons That I Love Lease Options

by Jason Hanson | August 7, 2008

When I become President and it’s the United States of Jason, I will impose the death penalty on anyone that stops at a yield sign…for heavens’ sake, if you were supposed to stop, there would be a stop sign and not a yield sign. Do you think they put that extra strip of roadway there [...]

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Commercial Real Estate

Financing the Investment Project: Leaving Nothing To Chance

by Mike Farmer | May 27, 2008

The importance of financing is so great it pays to leave nothing to chance and assumption. Knowing the local lenders and what they like to invest in is critical to finding the right lender for your investment project. Also, presenting a compelling case to the lender is important. These two aspects lay the foundation for [...]

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Real Estate Investing

Overcoming the Objections from "Subject to" Sellers

by Milton B. Yates | April 28, 2008

Just as a review, buying property “subject to” means buying a property subject to the existing financing. The seller’s original financing stays in place until either refinanced or sold to a third party. The investor/buyer takes title to the property while leaving the loan in the seller’s name. If we were to take over payments [...]

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