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
Sunday, January 29, 2006
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
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
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.
"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.
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