At a recent real estate club meeting much of the talk centered around the state of the market. This is certainly to be expected as investors were networking with each other and comparing notes. It is imperative that investors stay abreast of the trends and conditions if they are going to be successful. However, there was a distinct difference between seasoned investors and relative newcomers.

Investors who had been around for some time were looking for ways to meet the challenges of the day. They sought solutions to their funding issues and looked for creative ways to deal with problems. There were deals all around them, they just needed to make them happen.

Meet The Newbies

The newcomers were a different story altogether. Those that were fairly new to the game had never seen a market where money wasn’t easy and real estate didn’t always go up. They complained about lenders who wouldn’t fund their “no money down” deals or whined about being stuck with a property that they paid too much for in the first place. Others had bought into the fallacy that cash flow didn’t matter because the appreciation would make it all worth it in the end. Now they are hemorrhaging cash and see no way out.

Instead of asking how to make things happen, the newbies wanted to know when things would return to “normal.” They don’t seem to realize that they already have. The recently burst real estate bubble was the aberration, not the norm. Giving money to people who shouldn’t get it was the fuel that fed the recent market frenzy. It allowed people to pay too much with the expectation that a bigger fool would come along and pay even more. This was totally unsustainable, yet the newbies are waiting for this to return.

The Seasoned Investor

Investors who have been around for awhile know that any market has its ups and downs. When conditions change the successful investor adapts to the situation. When a traditional funding source dries up they seek out alternatives. Instead of pining for the old days, they create new techniques or revisit some tried and true older methods of doing deals. To make money they need to keep moving forward, they can’t be immobilized because something changed.

In the real estate jungle it is truly survival of the fittest. There is a common thread that runs through people who are successful. They keep going when others would quit.

Always bear in mind that your own resolution to succeed is more important than any other.
Abraham Lincoln

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Tags: loan, mortgage, no money down, real estate, real estate investing, real estate investor, Real Estate Market

If you are looking for bigger pockets RIGHT NOW, your concentration should be focused on wholesaling real estate deals to buyers who are looking to occupy the property, and helping them secure the financing needed to make to deal happen. If you haven’t become best friends with a mortgage broker then your business may be suffering. In my opinion, Mortgage Brokers play the single most important position on the field of real estate investing. I am pretty sure most of you investors have very reliable brokers in place to handle your acquisition needs; but what about the needs of your owner occupant buyers. Become the one-stop shop for buyers and allow your earnings to run on cruise control.

The ideal scenario is to acquire a property via contract for 50 to 60 cents on the dollar and AS-IS, of course. Have your mortgage broker procure a 100% loan for your buyer at 80% of market value and look to generate a hefty cash now assignment fee. Lucky for us, FHA goes up to $700K. So a house with a market value of $580K based on the properties sold in the last 3 to 6 months should be purchased at or around $460K. That leaves $120K in play. In order to ensure that the property is then purchased NO MONEY DOWN, you allow for the closing costs to be absorbed by the available equity which makes you a hero to the buyers. So the $120K turns into about $90K.

The next step is to write an invoice to the title company as a third party company for that $90K worth of services performed. As I mentioned in the beginning, it is very likely that this project is a rehab of some sort so funds must be set aside for that purpose. Another ring around the wholesale assignment is getting the buyers’ desired work and necessary updates done for them, without their involvement, by using the price they paid as a “construction loan.” So, not only can you demand 3% or more of the purchase price, putting you at almost $14K, but you can also quick turn the rehab work for profit with your 1099ed contractor team. The funds left unused go to your company and all of this happens within 10 business days.

If you can use an extra $20K or so….you may want to try this technique. Build your owner occupied buyers list and start dropping checks off at the bank.

Blessings to Your Real Estate Investing Successes,

Milton B. Yates

Tags: no money down, real estate, real estate investing, real estate investor, risk free real estate investing; what's working best no

I just came upon a bunch of videos that takes the serious things in life and breaks them down for all of us to understand - THIS IS FUNNY! The one I’m going to share with you today is a look at buying a home with no money down. I hope you all enjoy!

BTW - There are more of these entertaining videos to come!

How to Buy a Home with No Money Down

VideoJug: How To Buy A Home With No Money Down

What do you think?

Tags: buying property, Economy, fun videos, funny, home, no money down, property, videojug, videos