Friday, December 01, 2006

Quick Results from Easy Financing of Real Estate

People often say to me, "Ty, if financing real estate is so easy, why don't you give us a few real-life examples of how it works?" Here, to answer that question, is a recent letter received from a successful user of easy real estate finance:

"I read your book 'How to Make Millions in Real Estate in Three Years Starting with No Cash' two years ago, and I started using your methods immediately. My first two deals weren't so hot (I was too eager to close and didn't do enough up-front due- diligence), but I'll make money on them all the same. These were two small commercial strips in Chicago, IL. I bought them with basically no money down (for one property the seller held paper; the other was financed through the SBA [Small Business Administration]).

"It was on my third try that I really hit a home run. This was an industrial center we acquired with a construction loan. I renovated it, and leased it up within 8 months (a year ahead of schedule). For this deal I raised most of the equity from friends and family, after negotiating the bank down to a 10% equity requirement.

"So here's where I am, barely two years after reading your book: Total cost of three properties = $4,670,000; current value, based on rent roll = $6,730,000. That's about $7-million in property value bought with only $150,000 of my own money--ALL of which I borrowed with 2nd and 3rd mortgages on my house. After paying ALL monthly mortgages AND expenses, I'm clearing about $20,000 per month. Thank you warmly for your encouragement and advice in your books, newsletter and telephone calls." By Letter from IL.

This reader built an income of some $240,000 per year for himself in just two years time! And much of his income will be sheltered by the legal and legitimate depreciation of his properties.

This is a good example of what well-planned real estate financing (borrowing) can easily do for you. Also, his equity (what he owns of these properties) is: $6,730,000 - $4,670,000 = $2,060,000. So this ambitious reader converted some $150,000 of borrowed money into more than $2-million in property value in just two years. He "grew" his borrowed money by nearly $1-miilion per year, when you factor in his $150,000 investment of borrowed money!

We call the financing this reader used "Zero Cash Financing." Why? Because NO MONEY COMES OUT OF YOUR BANK ACCOUNT OR YOUR TROUSER POCKET OR PURSE! By carefully figuring your costs, including the loans you take to buy an income property, you can get a Positive Cash Flow (PCF) from each property every month! In fact, you MUST have a PCF from EVERY income property. If you can't get a PCF, don't buy the property.

And if you have trouble "working the numbers" of an income property, I'll be happy to do it for you free of charge if you're a subscriber to one of my two newsletters, International Wealth Success Newsletter and Money Watch Bulletin. You'll quickly learn if a PCF is possible from an income property you select!

To learn more and subscribe to either of my newsletters, just go to iwsmoney.com
and click on IWS Newsletter or Moneywatch Bulletin on the left side navigation bar.

We have many other letters and examples showing how readers of our books, courses and newsletters are earning large incomes using easy real estate finance. All of these letters are available for viewing at our main office in New York. Look for more letters detailing actual cases in future posts on this blog.

Wednesday, February 08, 2006

4 Simple Ways to Make Money in Real Estate Quickly

4 SIMPLE WAYS TO MAKE MONEY IN REAL ESTATE QUICKLY

THE BIGGEST SECRET IN REAL ESTATE IS TIME. Given enough time, almost all real estate will rise in value. But suppose a BWB (Beginning Wealth Builder) is impatient. How can he/she earn money in real estate faster? Here are 4 ways:
1. Work with “post-auction” foreclosures; don’t buy at auction.
2. Flip properties instead of holding them for rental income.
3. Use options to control real estate until you sell it.
4. Buy tax liens with the hope of a big payday at a later date.

“POST-AUCTION: FORECLOSURES are properties you buy AFTER the auction ends. These properties:
· Were passed over by the auction attendees.
· May not be as attractive as other properties.
· Could need repairs or cosmetic spruce-up.
· BUT CAN OFTEN BE BOUGHT FOR $100 DOWN!
· You help the seller (usually a bank) get the property off its books. So they sell at low cost, and will often pay the closing costs for you, just to help you out.

FLIPPING PROPERTIES GIVES YOU IMMEDIATE INCOME from real estate. You flip a property by:
1. Buying at low cost.
2. Making needed repairs.
3. Selling quickly at a profit.
4. Using your knowledge of what will sell in the area to choose properties that will “move” fast.

AN OPTION IS A LEGAL DOCUMENT PREPARED by an attorney that allows you to control a property for a stated period of time—30, 60, 90 days, etc. During this time you can:
1. Buy the property at a stated price.
2. Sell the property to a buyer of your choice at any price.
3. Lease the property to a person or firm.
4. Control a property at low cost—as little as $100.
5. Profit in a big way by selling quickly at a high price.

TAX LIEN CERTIFICATES give you control of a property at low cost.
And if the owner does not pay you off, plus interest, the property can revert to you. Again, you get control quickly, and you can profit handsomely.

Go to my website, www.iwsmoney.com, to find many resources that will help you earn more money in real estate, more quickly. And you can call me at 516-766-5850, day or night, for answers to your questions about these resources.

Tyler G. Hicks

Sunday, January 29, 2006

Florida Pre-Construction Real Estate Can Make You Rich

Would you like to get started in investment real estate on little, or no, cash and come away with a bundle of money? If so, consider Florida pre-construction real estate. Here's why:

WHENEVER A BUILDER STARTS putting up a new multi-family residential property, he/she wants to sell as many units as possible, as soon as they can. To achieve this goal the builder will often:
*Offer pre-construction deals with little, or no, money down.
*"Throw in" an extra bedroom, bathroom, etc., as a bonus for early buying.
*Give other valuable benefits--such as a better view, higher floor, etc.

WITH JUST A SMALL DOWN PAYMENT, and in some cases, no down payment, you can "lock in" a valuable apartment unit, or several of them, for future sale at a good profit. Here's how it can work for you:
1. The construction will typically take 6 to 12 months, or longer, for most well-built units today.
2. During construction the price of labor, materials, and land, will usually rise, making your unit(s) worth more than you agreed to pay for it, or them.
3. Finished residential units in your building will therefore be priced at a higher level than you agreed to pay in your purchase contract.
4. Result? You have locked in the price of a valuable asset without doing anything more than signing a few papers and putting down a small amount of money (or no money), while taking a calculated risk that your unit, or units, will rise in price.
5. Potential rewards for YOU? Some Beginning Wealth Builders (BWBs we call them) report profits of $25,000 or $50,000 per unit sold, depending on the price of the unit. Others earn $5,000, $10,000, etc., per unit.

WHERE CAN YOU FIND SUCH PRE-CONSTRUCTION UNITS? One of the best places we know of is in the State of Florida, on either the East or West Coast. To ensure that you get the best units:
1. Visit the area that interests you. The cost of your trip will be tax-deductible if you buy one or more units.
2. Pick the best location in the building for your unit. Water or bay views will usually sell well when you're ready to put your unit on the market.
3. Compare construction methods of the various buildings you consider. Remember: Good construction costs more but sells at a higher price!
4. Get to know the property you're buying units in. Pick the best units you can afford. Why? Better units will earn you a higher profit!
5. Visit my website: www.iwsmoney.com. Check out my "MULTI-FAMILY HOME RICHES KIT". It will give you dozens of good ideas on financing, and profiting from, Florida pre-construction real estate. And if you buy the KIT I'll mentor you in your pre-construction career, every step of the way!

Tyler G. Hicks

Tuesday, January 24, 2006

Sure Ways to Get the Real Estate Loan You Need

People call me--again and again--saying "I found this beautiful 20-unit garden apartment house for sale that shows a great cash flow. But I can't get financing. What should I do?"

The simple answer is: FIND A LENDER THAT SPECIALIZES IN GARDEN APARTMENTS!

Remember--REAL ESTATE IS THE WORLD'S BEST BORROWED-MONEY BUSINESS! In real estate everyone--including lenders--expects you to borrow the money you need. Real estate investors rarely pay cash for income properties. Instead, they BORROW the money they need. And their borrowing makes lenders happy! Why?

Lenders earn more from the loans they make than from any other investment they make. So lenders seek to make more loans because these loans increase their income. And you can help increase a lender's income, while raising your own tax-sheltered cash income, by borrowing for your income real estate, instead of taking cash out of your bank to buy the property you want.

But how do you increase your success rate in getting real estate loans? The answer is:
1. Deal with lenders who specialize in your type of property.
2. Find lenders who will both deal with your credit-rating situation (if it's a problem) and with the type of property you seek.
3. Use the lender's Loan Application when you apply.
4. Type the Loan Application throughout. The only handwriting on a Loan Application for an income property of any type should be your signature!
5. Don't hassle the lender for a fast answer. Lenders have their approval proedures and they insist on following them. Demanding a fast answer only irritates your lender. So be patient and wait for the answer from your lender. Doing so may get you the APPROVED response you're seeking!

So how do you find the right lender for the real estate property you want to buy?

For years my staff and I have researched real estate lenders of all types. Result? We have thousands of real estate lenders categorized under the following headings:
Property Type
Loan Types
Loan Purpose
Lender Types
Lender Subtypes
Lender Organizations
Specialty Lenders
Private Lenders
Poor Credit Lenders
Miscellaneous Lenders

These lenders are available in our books and newsletters. Contact me if you have an especially challenging loan situation. I may be able to direct you to a suitable lender. This could make your life a lot easier!

Tyler G. Hicks

Sunday, January 22, 2006

Mortgaging Out Can Be Your Key to Quick Cash Flow

Mortgaging Out is an activity in real estate that's not too well understood by beginners.

Basically, here's what happens when you mortgage out:

You, we'll say, buy a property for $100,000 total price. You get a long-term First Mortgage for 75% of the purchase price, $75,000. You then need $25,000 for your Down Payment. You'll also need about $5,000 for Closing Costs.

Looking around for future potential buyers you see that, with a small amount of fix-up, you can sell the property for $145,000. You contact a Second Mortgage Lender who agrees to lend you $35,000 on a Second Mortgage.

You buy the property and come away with: $35,000 Second Mortgage - $25,000 Down Payment - $5,000 Closing Cost = $5,000 cash from Mortgaging Out.

You can use this cash for repairs, to buy another property, or bank it for future use. And since this cash comes from a loan it is not, in general, taxable at the time you receive it.

Mortgaging out can work in many other ways. We'll cover them in future posts.

Meanwhile, check out my many real estate resources that can help you get the real estate money you need. You'll find them at www.iwsmoney.com.

Tyler G. Hicks

Saturday, January 21, 2006

Getting Real Estate Financing Sooner

As an experienced real estate investor and the author of a number of best-selling books on real estate finance I constantly get calls asking questions such as:

"Can I use venture capital to acquire income real estate?"
"Should I use private lenders to finance my multi-family apartment house?"
"How can I get started as a Loan Originator to find real estate loans for others, and for myself?"
"Is mortgaging out really possible? I've heard of it but I really would like to see some actual examples of it."
"You published a letter in your 'International Wealth Success' Newsletter from a person in the military who says 'I've found it easier to get 100% financing on projects over $10-million. I'm working on a 500-unit apartment complex.' How can I get 100% financing for my income real estate deal?"
"My credit is not too good--my FICO score is 510. Can I still get into income real estate using borrowed money?"

There are dozens of other, similar questions that readers ask me. In this blog I hope to answer them for you in such detail that you can go out and use the method for yourself. And I stand ready to answer any other income real estate questions you may have.

As a Director of a large real estate lender, I've sat on both sides of the borrowing desk--first as a lender, and second as a borrower for my own investments. So I know what I'm talking about.

My theme for you is this: YOU CAN BORROW YOUR WAY TO REAL ESTATE RICHES! And I'll show you how--starting right now using my books, newsletters and courses.