Easy Real Estate Financing

Testimonial: Real Estate Income Despite the Economy

2011-11-01T18:13:00.000-07:00

Unlike all the talk of a troubled economy, we still see great success stories from our readers, telling us how well they're doing with income real estate properties. Here's one testimonial we received by letter from Illinois.

Dear Mr. Hicks,

“I read [your book] ‘How to Make Millions in Real Estate in Three
Years’ 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. Bought them with
basically no money down (for one the seller held paper; the other was
financed through SBA).

It was on my third try that I really hit a home run. This was an industrial
center we acquired through 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 at, barely two years after reading your book: Total cost
of 3 properties = $4,670,000; current value, based on
rent roll = $6,730,000.

That’s about $7-million bought with only $150,000 of my own
money—all borrowed with 2nd and 3rd mortgages on my house. After paying
all monthly mortgages and expenses, I’m clearing about $20,000 a month.
Thank you warmly for your encouragement and advice in your books,
newsletter and phone calls.” By letter, IL.

QUICK INTRODUCTION TO PRIVATE MONEY LOANS

2010-11-08T07:16:00.000-08:00

BELOW YOU’LL FIND INFORMATION THAT CAN INCREASE YOUR CHANCES of getting private money funding. Understanding the ins and outs of private money could make the difference between getting money and not getting money. However you don’t need to memorize anything and there will be no test on this material).

WHAT MAKES A LOAN A PRIVATE MONEY LOAN?

1. Traditional institutional lenders like banks, trusts, pension funds, or credit unions are not private lenders, although some have units that deal with private money.

2. Private lenders may be individuals, corporations, venture capital firms, limited partnerships or certain other types of business entities.

3. Private money loans are typically non-conventional commercial real estate loans secured by real estate. They are often called hard money loans.

4. Hard money lenders make private money loans. Many private money lenders make hard money loans.

TWO MAIN TYPES OF PRIVATE MONEY FUNDING ARE:

5. Loans for business or real estate , which must be paid back over time

6. Investments in a business or real estate project, which do not have to be paid back.

Investments come from wealthy private individuals (“angels”) or groups such as venture capital (VC) firms. Investors may take part ownership of a business to earn a return on their investment as the business grows.

POTENTIAL ADVANTAGES OF PRIVATE MONEY include:

7. Private lenders are less bogged down by bank paperwork, government regulations and institutional protocol

8. Time from initial loan request to funding is faster

9. Private money loans are more flexible. For example, private lenders and investors are more likely to offer funding to “high risk” business or real estate deals.

BORROWERS CAN USE PRIVATE MONEY LOANS for many business and real estate purposes, although lenders can restrict loans to specific uses. Common purposes of private money loans include:

10. Rehabbing a property

11. Acquiring bridge money

12. Providing short-term operating capital

13. Equipping an office or research facility

14. Making a down payment on real estate

15. Buying real property

16. and more

PRIVATE INVESTORS

Business Angels are wealthy individuals who invest a portion of their money into real estate or a business in the hope of making a good return on their investments. These investors may come to the rescue of a new and promising business that finds it hard to obtain financing. They generally seek companies or projects that:

 Show great profit potential

 Will grow fast

 Are more than small “mom and pop” types of businesses

CREDIT UNIONS—THE UNKNOWN AND UNTAPPED LOAN SOURCE

2010-11-01T07:19:00.000-07:00

IF YOU’RE LOOKING FOR A REAL ESTATE OR BUSINESS LOAN, be sure to include local Credit Unions in your search. Why do we suggest this? Because, Credit Unions:

• Have not suffered from bad real estate loans in the current crisis.
• Have loads of cash they want to put into good loans.
• Have understanding boards of directors who want to “put money out.”
• Have a history of lower interest rates on loans than many other lenders.

CREDIT UNIONS MAKE MANY DIFFERENT TYPES OF LOANS. But the types that would
interest you most as a business person are:

• Commercial and residential real estate loans.
• Business loans for startup, expansion, renovation, etc.

TO GET EITHER TYPE OF LOAN, the borrower must meet certain minimum, low- or no-cost needs, namely:

• Be a member of the Credit Union from which you want to borrow. There’s NO charge to you to join a Credit Union.
• Fill out the Loan Application for the type of loan you seek.
• Agree to the repayment schedule the Credit Union sets.
• Sign all needed documents—which usually are fewer than with a bank.
• Receive your loan check and start making P & I (Principal and Interest)
payments one month after you get your money.

THE “WAY TO GO” TODAY IS “WHERE THE MONEY IS” and that’s what you’re doing when you seek your real estate or business loan at a local Credit Union. You’ll get a friendly reception and utmost cooperation when you submit your Loan Application in a businesslike way and treat the CU staff courteously.

Find Your Niche—Learn About Loans To Buy Or Rehab Apartment Buildings

2010-10-27T08:32:00.000-07:00

APARTMENT OR MULTI-FAMILY LENDERS can be found in most urban and suburban
areas. Even so, many wealth builders looking to acquire an apartment building can use a good loan Finder to steer them in the right direction. And many potential borrowers will pay a good commission to a loan Finder that helps them find the best loan possible.

A MULTI-FAMILY BUILDING IS ONE THAT HAS FIVE OR MORE UNITS. The most common purpose of most apartment building loans is to fund the purchase or refinance of a multifamily building. Loans for rehabbing buildings are just as important, however. A large number of commercial lenders make this type of loan. Look for lenders that offer loan packages for rehabbing apartment buildings. Here are your steps:

Gather all the information from your client as to what financing he or she needs. This might include loan applications, summaries of the proposed purchase/rehab, plans to produce an income from the building, and so on.
Draw up a “C” list (long list) of all potential lenders from a source such as the list below.
Sift through each lender’s information, one at a time.
Pay special attention to basic data such as the geographic areas, loan purpose, loan type, and loan requirements and details of each lender.
Based on Steps 2 and 3, narrow your “C” list to a “B” list (middle list) of lenders to examine more closely. For example, you can eliminate “C” lenders that don’t make loans in the area where the building is located.
Compare the types of funding that each one offers.
Make note of each lender that might make the size and types of loans you seek in your area
Select your “A” list (short list) of lenders to study further and to contact for more information or a loan application.

AS A FINDER, YOU CAN DO EACH OF THESE STEPS for your client, who willprobably be busy on other projects. Your client may offer to work together with you in drafting your “A” or “B” lists. If your client doesn’t suggest this, suggest it to the client. With a little experience and motivation, you and your client can make a winning team.

Special Funding for Financial Brokers

2010-10-25T16:57:00.000-07:00

You Can Become the Loan Expert for Special Loans

If you or a client of yours has a small business in need of funding,
you may have looked at common sources of money—business
partners, family, conventional bank loans, even SBA 7A guaranteed
loans from banks and non-bank lenders. If you’ve tried these
and met with little or no success, don’t give up.

There are many “niche” or special financing programs
for small businesses throughout the United States.
Some niche loan programs are targeted to help specific
industries grow in a particular area. Some are targeted
to improve the economy in a region, state, or local area.
Some are targeted to specific groups of people. Nearly
all niche loan programs have a social, economic development
or community development purpose.

Tips for Financial Brokers

If you are a commercial loan broker or you want to
become one, finding good niche markets that can
give you great broker income may mean focusing on
commercial loan deals. Without limiting yourself
to any specific kind of loan, you can turn your focus
to one or more of the available niche markets in
commercial lending to increase your immediate and
long term income. Take another look at the niche areas
of commercial lending above to see what a wide range
of commercial lending exists.

By concentrating on commercial loans that require
hard money loans, you can find a niche within a niche.
The more focused you get, the smaller your potential
market, so be careful to keep enough commercial loan
niches in your sights to keep the loan requests flowing.

The advantage of taking the time to specialize in a niche
commercial loan market is simple. Once you put
in the legwork to identify, contact and establish a
relationship with direct commercial loan funding sources,
regardless of whether they are hard money lenders or
non-hard money lenders—you can establish yourself
as the expert in those kinds of loans in the area where you work.

You will have a ready source for funding the niche commercial
loans you’ve chosen to specialize in, and you’ll not only get direct
requests from borrowers, but also from other brokers who’ll call
you and ask you to cooperate on this kind of loan.

To be successful, promote yourself on Internet forums, through
email and advertising to your target groups, and by offering your
thoughts on your commercial loan niche market to newspapers,
magazines, and Internet e-zines.

Write articles about such things as your specialty, how to
prepare a commercial loan package for best results, what to look
for to help ensure which lender best suits the loan request and
more. Don’t be afraid to educate your fellow brokers. By doing so,
you’ll show your expertise in more areas than the ones you share
in your commercial loan specialty articles. Other brokers, as well
as borrowers, will still come to you—after all, you are the expert
in your commercial loan niche market.

Niche Lenders Can Get You Your Money Now

2009-07-17T13:59:00.002-07:00

WHEN MONEY IS HARD TO GET, niche lenders can be your answer to
finding the money you need for business or real estate quickly and easily. Here’s
how to get the money you need for your niche business or real estate:
1. Name your niche. You MUST know your niche if you want to
apply to lenders who serve that niche. Thus, your niche might be
lenders that loan on Gas Stations, Tennis Courts, Used Car Dealers,
Golf Courses, Hotels, Motels, Bowling Alleys, etc
2. Get the names of suitable niche lenders. You can find such
lenders in the IWS “Directory of Niche Lenders,” in reference books
at your local Public Library, or on the Internet
3. Contact your selected niche lenders by phone, postal mail,
fax, or email. Ask for full data on the loans they make. Get the
Amount, Purpose, Interest Rate, Term (length of the loan), Credit
Requirements, etc
4. Carefully go over the info you’re given. Compare the offers from
various lenders to see which gives you the best deal. Look carefully for
deals that do not charge points (1 point = 1% of the loan amount; for
a $100,000 loan, 1 point = $1,000). Some lenders charge as high as 8
points. Avoid them!
5. Get a copy of each lender’s Loan Application. Study each Loan
Application carefully. You’ll see that the Applications are similar. But
some ask for less information than others. Pay close attention to parts
of the selected Application that give you a challenge. If you have any
questions on how to fill out these parts of an Application, call Ty Hicks
at IWS if you have the “Directory of Niche Lenders.” He’ll try to help
you with advice on your questions. REMEMBER AT ALL TIMES:
You MUST be completely accurate in every statement you make on
a Loan Application. The advice you get from Ty Hicks will include
a reminder that every statement on a Loan Application MUST be
completely accurate in every way
6. Be certain your Loan Application is typed. In business and income
real estate niche lending your lender expects a business- like approach
Typewritten (or computer-printed) Loan Applications are standard
Only the signature is hand-written
7. Accept the loan offered you if your business or real estate can repay
the niche loan and ALL other expenses and show a Positive Cash Flow
each month. Niche lenders get you money!

Find the Loan You Want At A Niche Lender

2009-07-17T13:59:00.001-07:00

A NICHE LENDER IS A LENDER that specializes in loans to a narrow group of
businesses, or to just one type of business. Thus, a niche lender might focus on loans
to:

• Gas stations, auto repair shops, tire stores, etc
• Sports facilities—tennis courts, bowling alleys, swimming pools
• Health care facilities—nursing homes, rehab centers, hospitals
• Education centers—schools, colleges, universities, etc
• Multi-family real estate, apartment houses, condos, etc

TO FIND A NICHE LENDER you can take a few easy steps. These steps are
quick and direct, namely:

1. Define your niche. You must know your niche clearly so you can focus on
the lenders that make your type of loan. You have a number of typical niches
above. If you can’t figure your niche, call Ty Hicks and he’ll do it for you on
the phone

2. Look for lenders serving your niche. You’ll find them in many different sources,
such as: (a) Magazines and newspapers serving your niche business or real
estate; (b) On the Internet at sites that cover the news of your niche; (c) In IWS
lender books and in the IWS newsletter, or via a special search we do for you at
your request. Such a search will typically find from 3 to 12 lenders

3. Get your niche lender’s paperwork—its Loan Application, Loan Guidelines,
and any other documents they normally supply. This could include forms for
releasing info, checking income, etc. These will be sent to you free of charge

4. Fill out the Loan Application. Don’t be careless about your Loan Application
Make it neat and clean with no cross-outs or messy corrections. The best way to
achieve this is to type your application throughout. If you have to submit your
Loan Application via the Internet, do it yourself. Or have an Internet person do
it for you

5. Call, e-mail, or write the lender if you have any problems filling out the application
Ask “What do you want to see as an answer for Question 7?” for any
question that puzzles you

6. Send your Loan Application to the lender along with a letter explaining how
much you need for your business, for what purpose, and how you’ll repay the
loan. You’ll get your money!

7. Use this method and your Loan Application has almost a 100% chance of being
approved. Being organized will get you to your money sooner!

Go For the Top Finder Fees to Earn More

2009-07-17T13:56:00.000-07:00

WHO PAYS THE BIGGEST FINDER FEES? In general, it’s the people, or their companies, who are looking for financing of a business or real estate project. Why are the largest Finder Fees paid by people seeking money for business or real estate? Because:

• “Money is the universal solvent”—every business needs money sooner or later. Find it and you’ll be paid!

• Money answers almost every need a business may have.

• Money allows a business to start, expand, pay debts, or sell itself.

With money in the bank, a business can soar.

SO IF YOU WANT TO EARN THE HIGHEST FINDER FEES, try looking for money for businesses. Why do we suggest looking for money for businesses? Because:

• Businesses usually have fair to good credit, often have assets that are usable as collateral, understand that you’re entitled to a fee for your work. They need you and want your skills.

• Businesses respect you as a professional and seldom argue over your fee; they enjoy paying for results!

• Businesses appreciate you finding money for them and are ready to reward you for your work.

“SO HOW CAN I GET STARTED FINDING MONEY FOR BUSINESSES?” you ask. Here are good steps you can take:

1. Set yourself up as a Financial Broker, or Financial Consultant- Finder in your own profitable business.

2. Decide what types of businesses or real estate you’d like to work with. It helps if you’ve had experience in the field you want to work in. You’ll earn money sooner!

3. Run ads, make phone calls, use the Internet to tell people you’ll look for loans for business or real estate for a fee based on the loan amount. Be their money “bird dog”!

4. Contact local, and distant, lenders who make the types of loans you’ll be looking for. Get details of their loan practices from them so you can use the data for your loan clients.

5. Help your clients fill out their Loan Application so it meets the lender’s needs. Be sure to have the application typed, or fill it out on the Internet, if the lender prefers this method.

6. Get money for business or real estate and you’ll prosper!

Success in Two Businesses

2009-02-24T07:23:00.000-08:00

One reader's success story. This is an unsolicited comment we received by letter at our office in January.

SUCCESS IN TWO BUSINESSES: “As I said in our phone talk, I’m very active as a commercial real estate investor. I currently own 84 apartment units in the Bronx, NY. My monthly income is about $8,400 net after all expenses and mortgages are paid. My income alone on this building is about $100,800 per year.

“I only buy owner-financed buildings and I get great interest rates and terms. I’m currently negotiating with the same owner for his other building having 97 units. This building will net $9,700 a month, giving me a combined cash flow of $18,100 per month. I learned all my skills through your real estate books.

“I get my due-diligence money for real estate investments by specializing in hard-money loans as a Financial Broker. I closed on a recent deal last month which was for a $2,700,000 loan and my fee was 1%, or $27,000. My family lives on my real estate income so all my Financial Broker fees go straight into my bank account for future real estate deals. I am now working on a $9-million deal and my fee will be 1%, or $90,000. I get great results advertising in the IWS Newsletter.

“Right now I see my Financial Brokering business doing $25,000 to $30,000 a month. This is not bad for an ex corrections officer who resigned after 9 years on the job, even though all my friends thought I was a fool not to stay for the full 20 years to get a tiny pension. These same guys call me to say they have to take a job to support their families, after they retire. I ask myself: ‘Who was the fool?’” By letter from New York

Earn Big in Real Estate Without Owning It

2008-02-04T17:27:00.000-08:00

OWNING REAL ESTATE HAS MANY ADVANTAGES. One of the best advantages is that it can make you a millionaire sooner than you think. But some people prefer not to own real estate. Instead, these people:

Lease real estate at the lowest price they can get.
Lease the same real estate at the highest price they can get.
Earn their profit on the difference leasing prices.

ONE OF THE BEST EXAMPLES of this method at work is that used by a successful real estate wealth builder:

He leased trade show exhibit space for 25 cents per square foot. Then he turned around and leased the same space to trade show exhibitors for $25 per square foot! His income from the exhibitors to whom he leased a total of 150,000sq ft = $25 X 150,000 = $3,750,000. The cost to him of this space = $0.25 X 150,000 = $37,500; profit = $3,712,500!Of course, he had NO ownership of the real estate he leased and then sub-let to others. This didn’t bother him since he had the immediate profit from sub-letting his leased space.

YOU CAN ARRANGE SIMILAR DEALS with many different kinds of real estate. Thus, you can:

Lease residential apartments and sub-let them to others at a higher rent than you’re paying.
Lease commercial space for stores and sub-let it to groups of merchants needing a minimum amount of area.
Lease open land and use it for parking or temporary storage of large construction equipment.

YOUR WHOLE KEY IN EARNING FROM REAL ESTATE you don’t own is to have a sub-let clause in your lease. Write the lease so there is no restriction on your sub-letting of the space you rent. Then you can:

Sub-let your space to anyone of your choice.
Sub-let at a rent YOU set based on the tenant YOU find.
Sub-let to as many tenants as you choose.

SUB-LETTING REAL ESTATE can give you instant income when you receive your security deposit and first month’s rent. Try it and see!

Make Big Money in Real Estate in a Down Market

2008-02-04T17:22:00.000-08:00

WE ALL HEAR TALK ABOUT the "sub-prime mess" and the foreclosure fallout. Does such talk mean that real estate is no longer a good investment? No! Real estate is still the best investment you might make! Thus:

Two years ago one of our readers bought a vacation home in an upscale area. He paid $700,000 for the vacation home, using all borrowed money. For 49 weeks of the year he has a local real estate agent rent the house to vacationers, giving him an excellent income that more than covers his mortgage payments. Just this month, 24 months after buying the house using borrowed money, he was offered $1.4-million for the house he bought for $700,000, using borrowed money.

THUS, IN 2 YEARS, THIS BWB earned a gross profit of some $700,000. That's $350,000 a year, or $29,166 per month, or $972 per day for a 30-day month. And all of this took place while this BWB held another job. So what lessons can you draw from this?

Here they are:

Real estate in wealthy areas is holding its value because buyers of such properties have not been affected as much by any economic downturns.
Real estate in wealthy areas continues to rise in value because desirable properties have an ongoing appeal to buyers who have money.
Real estate in wealthy areas is much easier to finance with borrowed money because lenders are happy to loan on properties in well-known upscale communities.

TO LOCATE FOR-SALE PROPERTIES, in upscale areas, take these easy steps as soon as you know what types of property you want to handle:

Contact upscale real estate brokers in the area. Tell them you're interested in buying higher-priced properties. Ask them to see if you can get into some properties with owner financing. This will help you get into good deals with zero cash.
Get the word outto wealthy people that you're interested in making quick deals for properties they want to get away from.

Surprising as it may seem, wealthy people DO, occasionally, want to get rid of properties in a hurry. That's where you come in! You take over the property with a low-cost Option and make every effort you can to sell it before your Option expires. What you're doing is building your wealth on the wealth of others!

Quick Results from Easy Financing of Real Estate

2006-12-01T17:40:00.000-08:00

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.

4 Simple Ways to Make Money in Real Estate Quickly

2006-02-08T13:52:00.000-08:00

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

Florida Pre-Construction Real Estate Can Make You Rich

2006-01-29T17:36:00.000-08:00

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

Sure Ways to Get the Real Estate Loan You Need

2006-01-24T14:47:00.000-08:00

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

Mortgaging Out Can Be Your Key to Quick Cash Flow

2006-01-22T18:13:00.000-08:00

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

Getting Real Estate Financing Sooner

2006-01-21T12:11:00.000-08:00

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.