Where buyers can find money to do more deals

There are various myths encompassing property investments and one of the most heard among those is only wealthy individuals can invest in real estate. But in reality, you now have various financing options available including savings, mortgage loans, lines of credit, private money etc that can let anyone make such investments. Fruitful property investments encompass solid personal strategies which are not haphazard, random or uninformed. Here, we’ve jotted down some highly useful financing options to help people who want to become fast house buyers.

  • Savings: This is hard-earned money you put aside and keep in a safe place. Most importantly, this money can be accessed very quickly when you need it and be invested instantaneously with minimum delay. It makes sense to keep hold of a robust savings amount to invest in real estate.
  • Mortgage loans: This is one of the most preferred ways for most property investors. Majority of the conventional mortgage loans require a minimum of 20% down payment but it can extend to 25-30% for property investment depending on the lender. These loans generally come with lowest interest rates. Additionally, if you can make higher down payment, you may become eligible for even better interest rate.
  • Lines of credit: This is another widely used option that investors planning to become fast home buyers choose to finance their investment property purchase. Banks and other financial institutions offer different products including line of credit that empowers you to tap into your own equity. For instance, you can purchase a mortgage-149882_960_720property but rather than going through the general hassles of finding finance, you can take out a line of credit on your own house to pay for it. Remember that you must have equity in your house to obtain a line of credit. Banks usually lend up to a specific percentage of the total value of your home. Though this percentage varies between lenders but finding a financial institution that offers as much as 90% of your home’s value won’t be that much difficult either.
  • Private money: Though private money is much similar to hard money, the main difference lies in the relationship between the borrower and the lender. Unlike hard money that comes from professional lenders, private money is offered by individuals looking for higher ROI. Private money lenders provide money to purchase property in lieu of specific interest rates. Here, a promissory note is used to ensure the security of the lender’s investment. In case you don’t pay, they may foreclose and take the ownership of the property.

As we’ve discussed, there are different ways to arrange funds to perform more deals and become fast house buyers. However, since every deal differs from the other, it makes sense to have a solid understanding of various funding options to move ahead.

How many cash flowing properties do you need to retire early?

From an investor’s point of view, rental properties are great ways to invest money, especially in today’s real estate landscape when it’s an uphill task to sell without a realtor. Cash flowing properties provide several benefits including steady cash flow, huge returns and tax advantages. Now, before you want to calculate how many cash flowing properties you would need to retire early, there are some factors that you must take under consideration.

  • How much you can make out of rental properties: The returns vary significantly based on the location of your property and the price you’ve paid for, among others. For instance, you own 10 properties for $75,000 to $100,000 and you receive $500 from each property. That makes it $5,000 in total per month. Cash flow properties not only help you to receive a steady income but also undergo price appreciation over time. If you can leverage the properties in proper manner, then you’ll be able to pay your mortgage and at the same time, gain equity.
  • Why rental properties are better compared to conventional methods when it comes to early retirement? Say you heavily invest in mutual funds, stock market or other bonds but in reality, you don’t have any actual control on your investments. Though you can always select the bond or the company to invest in but there is no guarantee that the bond or company will perform as expected. Once you have invested your money in, you can practicallyfor-rent-148891_960_720 do nothing but hope that the bond/company performs well. In contrary, you enjoy total control with rental properties. Generally, you buy the property below market value. What to repair or how to finance it is entirely at your discretion. Then you rent out the property. Though you can always hire a property manager to manage these tasks on behalf of you, especially when you’ve a number of properties, you would still be having ultimate control.
  • How many cash flowing properties do you need for an early retirement? First, you need to decide on the amount that you would be requiring each month for a happy and successful life. Now, consider the amount you’re receiving each month from each of your rental property. For instance, you want to have around $10,000 per month upon retirement and currently you’re receiving something between $400 and $500 from each of your property. So, you need to have at least 20 such properties to fulfill your retirement dreams.

Finally, it’s important to note that cash flow on these properties will gradually increase over time because rental rates generally increase. Also, remember that though everyone has different aims and needs upon retirement, it’s imperative to chalk out your goals and work toward achieving them.

What someone should know before investing in real estate market?

Sometimes, investing in real estate market, especially for beginners, can become a daunting task. Moreover, the availability of almost a countless number of books, blogs and media gurus is adequate enough to make you get lost. In this post, we’ve jotted down some useful tips that would help you succeed in your new endeavor.

  • Do your homework and look around: Before diving in the real estate market, it’s immensely important to do proper homework. Connect with people online and offline to have solid grasp of your local real estate market. Look around for the people who want to sell house quickly or want to sell house without repairs. Contact your local agencies that are looking to sell vacant houses.
  • Plan your future goals: Before buying your first property, determine the expected returns from the investment. If you feel hesitant creating your financial goals, take the help of a financial adviser.
  • Visit lots of properties: Don’t make up your mind when you first see a notice hanging outside a house that says “looking for cash house buyers”. Many investors purchase properties because of their outer look, ignoring the women entrepreneursactual inner condition. As you won’t be residing there, it’s better to keep the personal preferences away. Take a decision only after you’ve visited and thoroughly checked plenty of properties. First, allow yourself to have a vast range of choices and then gradually finalize your pick based on your criteria.
  • Perform complete financial analysis: Think of different alternatives to decide on the most profitable one. Stay away from the sellers who set a higher price than market value by showing you the estimated price escalation in future, especially when they encounter cash home buyers. Make sure that you’ve thoroughly gone through and understood the previous years’ documents including maintenance records, property-tax bills, tax returns etc.
  • Find motivated sellers: You can do a simple workout to identify motivated sellers. For instance, if a house has been on sale for $100,000 with almost zero price reduction, then the seller is probably not willing to handover the property. But if you see a similar property with similar price tag which has now lowered down significantly, then perhaps the seller needs to sell house fast by any means. You can try out the following methods to find out motivated sellers:
    • Look for notices that say “buy my house” or similar ones
    • Attend open houses
    • Look into the classifieds section in local newspapers

Finally, think big but start small. At the inception stage, purchasing larger properties can make your foundation unstable. So, focus on purchasing a small apartment, duplex, condo or similar properties initially. Then, as you start understanding the know-how’s of real estate investment and develop a strong foundation, start scaling up from there.

 

How to work with an investor

If you are planning to sell your house fast, perhaps you’re weighing your options among available choices i.e. traditional, FSBO and investor. Though each of these can be beneficial for you, what works the best would solely depend on your situation. If you need to sell home fast, knocking the door of an investor would probably be your best bet. Let’s have a look at the benefits of working with an investor.

  • When you have an investor by your side, you normally start receiving offers within 24 hours. You don’t have to wait for an open house that helps you sell your house. You just have to call your preferred investment company, let them assess your home and often, an offer is made on the spot. Then you can accept the offer, decline it or propose a counter-offer. But you’ll quickly get an offer, thus eliminating the need to wait for long.  
  • Your home will be purchased on as-is condition and this is one of the greatest advantages of working with an investor. Your home might have its foundation a little shaky or the roof might be in a real bad condition but shattered windowwhen you’re working with an investor, you don’t have to spend money for these repairs before selling of your home. Simply put, you can sell house without repairs. Additionally, if you want to sell your house without the help of an investor, you’ve to get your home inspected by a professional inspection company and needless to say, you’ll have to pay their fees.
  • When you’re selling your home to an investor, you don’t have to pay any type of commission, which you might have to pay otherwise in case you work with agents. Investors don’t charge any fee for the services. The offer, which is finalized for your property, is the amount you’ll get on the closing date of your home’s sale. Most importantly, closing of sales typically happens quickly. For most cases, it generally takes a maximum of 10 days and you can receive your check within that period. The check would be of full offer price that has been made by the investor to you. Conversely, with conventional processes, your house can stay on the market looking for prospective buyer for weeks, months and in worst scenarios, more than a year.

If you belong to the league of owners who want to sell house quickly, or don’t want to perform repair work on home, or don’t have the financial resources required to sell home fast, working with an investor can be the most efficient way to achieve your objective of selling your home quickly.

Compare investing in different property types

As a lot of people keep looking for fast home buyers or plan to sell house with tenants, the real estate field has emerged as one of the most sought investment options. But it’s unfortunate that many new investors don’t understand the different types of properties they should invest. Most often, this leads to returns that are less than expected. In this post, we’ve compared two different types of real estate investing namely turnkey property investing and rehab-to-rental investing.

  • Turnkey property investing: A turnkey investment is something that is already refurbished and sometimes may have tenants in place. This is ideal for investors who don’t have resources to renovate a broken house or the time to find prospective tenants to make profit out of it. Let’s have a look at the pros of turnkey property investment.
    • Every property needs maintenance to be done and this becomes an additional expense. With the help of property management companies, investors can perform these jobs seamlessly. Moreover, these management companies often have contractors who will charge you below the normal market rate.
    • If your property is located in another state, then regular management of it would surely become a headache for you. Turnkey homes often come with property management services. They would be performing jobs like payment of applicable property taxes, managing rent collection, coordinating repairs etc for a nominal charge.
  • Rehab-to-rental investing: This type of investing is one of the sweetest dreams of many new real estate investors. Purchasing a cracked down house, investing money and time into it to transform it into an improved and eye-catching one and finally, sell house quickly to make a hefty amount of profit – all sounds nice. But, in reality, rehabbing investment is not so easy. There are some key factors that you must keep in mind.construction1
    • You can’t rehab a property on your own. Even experienced contractors often take help of sub-contractors to perform rehabbing. Successful rehabbing projects depend on adept contractors to get the job done efficiently and quickly. Additionally, you would be requiring a lawyer for taking care of the legal aspects.
    • Like any business, you must have adequate insurance policies in place, especially when you’ve people handling harmful equipment. You need to ensure that you’re fully insured and for that you need to consult with an attorney who charges a reasonable fee.
    • This is perhaps one of the biggest mistakes done by new investors. They start the rehabbing working without consulting with their contractor and therefore, the budget for the rehabbing work remains unclear. When calculating budget, you must consider the unpredictable occurrences.

Whatever investment type you choose, look for properties located at centralized markets because they always stand a better chance when you need to sell house fast and make profit.

 

A step-by-step guide to build a portfolio of cash flowing deals in real estate

There are many ways to develop a portfolio capable of handling cash flowing deals and real estate is considered among top 3 of them across the globe. Before we start digging deeper, remember that this isn’t a quick act. Instead, it takes years to build such a portfolio. To start with, when you’ve a goal to attain this type of portfolio, you simply can’t afford to buy any property. You can find a huge range of properties out there that are awful investments and may end up costing you more than what you make. Here’s a step-by-step guide to build a wealthy portfolio.

  • The first step: In this journey, buying your first property is the most crucial step you’ll ever take when developing your portfolio. So, take your time and act wisely. It may not bring you a fortune but will act as a learning curve for you. Ideally, you should look for a property with scope for improvement and in a centralized area.
  • Leverage the property: Now, when you own at least one property, leverage this equity to purchase more properties. Another benefit of this is that you don’t have to touch your own cash for buying property. The deposit will be paid from the equities of the properties you already own.
  • Develop a steady cash flow: Not developing a steady cash flow in each of your investments may limit your affordability. Develop a positive cash flow in every property you buy and that’ll help you grow your portfolio.
  • Increase the worth of your properties: According to many investors, either you can increase the worth of your properties or you can develop your cash flow. But, you can do both i.e. increase the rental income as well as the worth of your properties by performing some renovations. When you add value to your properties, your speed of buying properties increases automatically.
  • Scan the market: To make your portfolio wealthier, you need to have some processes to scan the market for profitable deals. Take help of online tools that let you identify profitable properties according to your investment criteria.
  • Manage your portfolio on your own: Since it’s your portfolio, you’ve to take optimum care of it. Keep accurate track of the incoming and outgoing financials of your property deals. If required, consult with real estate agents about how you can increase value or rental income.
  • Get rid of bad investments: You may have made a bad investment but that doesn’t mean you would be keeping that property until it gives you a profitable return. Instead, get rid of it and invest the money into a fresh one.calculator-calculation-insurance-finance-53621-large
  • Combine high growth with steady cash flow: In case you have steady cash flow without any capital growth, you won’t have any equity to invest. Similarly, if you’ve capital growth without steady cash flow, then at a certain point of time it might become impossible for you to afford service of your loans. Ideally, your portfolio should be a perfect merger of high growth and steady cash flow.  
  • Chalk out an investment strategy: You can find many investors who simply buy properties hoping to make profit. This might work for a couple of properties, but if you want to build a wealthier portfolio, chalk out an investment strategy that’ll help you develop a list of things you want in your properties. Then you can narrow down your market and find out the properties according to your preference and strategy.

Finally, think and act smart, invest wisely and keep patience. As said earlier, it is not an overnight journey. Give the process the time it needs and it’ll reward you for sure.

How investors can network with people to find private capital

Fast home buyers can get cash to buy their chosen property from private lenders in lieu of a particular interest rate. To secure the lender’s investment, a mortgage on the property or promissory note is used. This means that in case you are unable to pay, the lenders can foreclose and take the property. To get private capital, establishing credibility is the first thing. This can be done by making yourself visible in the real estate landscape and getting your voice heard.

Here are some ways to build your credibility and network with people to get the required private capital that would facilitate you, irrespective of whether you belong to the league of cash home buyers or fast home buyers:

  • Attend local real estate investment clubs: This will give you the opportunity to talk about your real estate endeavors and highlight your experience in the field, both of which will make you visible to the right people. You can also get to know private lenders looking for opportunities to invest and talk to them about your proposals.
  • Leverage the social networking platforms: From Facebook and LinkedIn to Twitter, use the social networking platforms to post real estate updates, your achievements and interesting news or events related to the industry to get noted and talked about. You can even join groups of professionals who can help introduce you to willing investors, who will give you the required funds and cash in on opportunities created by people looking to sell a house fast.man-404376_1280
  • Let the Internet work for you: Write blogs or participate in reputed online forums where you can talk about the industry trends, your real estate ventures, your investing experience etc to maximize your visibility and get noted by and connect to the right people who are looking for cash home buyers like you to lend cash for buying properties.
  • Tap into your existing network: If you already enjoy a good relationship with your financial sources, ask them for referrals of private lenders. If you have been careful in developing such relationships and have never compromised it, chances are that these sources will help you connect with the right people who will facilitate your desire of being one of the fast home buyers. You may even ask your close network of friends, family and work contacts for referrals.

Since real estate investments can vary from $25,000 to millions, you should clarify the kind of capital you are looking for to avoid wasting time by getting connected to someone who won’t have that kind of liquid cash. Above all, follow the rules and regulations when you are seeking private capital funding for fast home buyers.

 

How long does it take to sell a home in various ways?

There are various ways to sell house fast. From getting a real estate agent to do the job to FSBO listing and selling to an investor, you have various options to take your pick from when you need to sell house fast. However, predicting with surety how long it will take to sell a house fast is difficult. It depends on several factors like the house’s location, condition and the price asked. The market condition also determines how fast you can sell a house since homes tend to sell faster in seller’s market than in buyer’s market. It can take anywhere from 2 to 3 months to sell homes. However, in seller’s market, a well priced home could sell within 10 to 21 days.

Let’s see what you can do to sell your house fast:

  • Hire a real estate agent: An agent can help you price the house right and get potential buyers through the door to help you get offers fast, thus letting you sell home fast. Though you may be tempted to eliminate the agent’s commission (6% of the sale price), you may find it difficult to sell your house fast, especially if you fix the price more than what the houses in that area usually sell for. Some statistics show that getting almost 20 qualified buyers through the door will let you get at least one offer and a deal can be finalized after you have 2-3 offers. Thus, you can expect to sell your house within 1 to 3 months.
  • FSBO: FSBOs are popular for cheap homes and constitute just 9% of homes sales in the US. If you are ready to do some legwork and want to save an agent’s commission, you can list your property together with its photos on different sites online. Though an FSBO gives you more control over price negotiations and you can keep a cash buyerlarge amount of the after-sale proceeds, you may not be able to sell home fast if you price it wrong or fail to make your listing attract the right buyers. In such cases, you may have to wait for 6 or even more months to sell your house.
  • Find cash house buyers: If getting quick cash is the prime reason you want to sell your house fast, finding cash home buyers is your best bet. If you want to sell house with tenants, or without repairs, such investors will take the property on as-is basis (no repairs or clean outs necessary) by giving you an instant cash offer. Homes with inheritance and probate problems, or foreclosed properties, or those mortgaged can also be sold this way. The entire process takes 1 to 2 days to be completed, making this the best way to sell your house fast.

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