You probably have heard the concept of making extra principal payments to reduce interest and payoff your mortgage early. The concept may be simple, but it is often overlooked and rarely practiced. A typical promissory note amounts to incredible interest over thirty years. For example, on a thirty year $100,000 loan at 9%, you will [...]
The stock market and real estate can be considered the two major areas of investment. They both allow investors to participate in long term appreciation of values. Which one is a better investment? It is a personal choice, but due to the current economy real estate investment is a better choice. Understanding the difference between [...]
Mortgage rates are at the lowest they have been in several years. The markets have also been very slow. But they are starting to show some improvement and now may be the time to buy real estate in the Washington, DC area. Real estate investors as well as others are in a very good position [...]
House flipping has long been a way to break into the real estate investment business not only for those who buy a sell numerous properties but for individuals as well. House flipping means buying a home that is usually a fixer-upper, making needed repairs, giving it a facelift and then reselling it for a profit. [...]
Investors tend to be a little crazy when it comes to pure logic. Real estate is one particular area that seems to suffer more from reverse logic than any other investment area. What do I mean by reverse logic? Consider the current scenario – home prices are low, rental demand is high, and interest rates [...]
With the price of both real estate and interest rates down, some are considering increasing their asset portfolio by buying a holiday home. Mortgages are harder to obtain when it comes to second homes, however, if you have a good credit score, a perfect record with your current mortgage, and a decent deposit, there are [...]
What’s the difference between a personal and business investment in real estate? There’s a huge difference actually. If you look at how your personal life compares to a business’s life, you’ll quickly catch on. In your personal life, you go to work, earn money, pay tax on that money, then spend what’s left over. In [...]
Many home owners feel like they are trapped in their current homes. Selling now would leave them with little or no extra cash so buying a replacement home is also out of the question. So there you are stuck in a home you’re suddenly not happy with, prices are falling and you can’t take advantage [...]
While now is a questionable time to be selling and buying a new home, it is a good time to be putting your spare cash into real estate, particularly homes that are suitable for the rental market. There are even small groups, either family members or close friends, who are pooling their spare cash to [...]
If you are looking to buy a home, then, considering the current market conditions, be prepared to lose value before you start to see any gains. This means any home purchases made in this environment has to be on the understanding that it’s a long term investment. While some areas are seeing slight gains, it’s [...]
If you’re a real estate investor that likes to quickly settle on homes as a cash buyer, you have probably been frustrated by some of the conditions set down by institutions like Fannie Mae. Using Fannie Mae as an example, in the past, if you were a cash buyer, you could only settle on a [...]
Selling a home in a depressed housing market can be tough. If your home isn’t in one of the better locations, then it can be even tougher. Sometimes, the problem with a home sale is that a seller is targeting the wrong people – or rather, not targeting any particular group at all. The biggest [...]
If you’re looking to invest in real estate, then there are number of ways to find suitable properties. In most cases, using standard search techniques often returns tens if not hundreds of homes. That’s a lot of real estate to wade through to try and find a real bargain. There are search techniques that can [...]
Due diligence is a process where you check on various aspects of a transaction. In business, it involves checking sales data, expenses, and income. Buying a home is one of the biggest purchases that most people will make in their lives so it makes sense that some form of due diligence is performed. This doesn’t [...]
The latest set of statistics has revealed an interesting trend which, if it continues, could help to trigger a housing recovery. While national statistics should not be relied upon on a local level, they do make for interesting reading at a national level. According to Realtor.org, March saw a big boost in cash sales of real [...]
Have you ever noticed the advertisements, perhaps neighborhood signs that say ‘we buy homes for cash’? They even promise to complete the transaction as soon as possible - some even suggesting seven days. It may sound tempting to investigate offers such as these, but there is a trap for the unwary. The people who deal [...]
They used to say that real estate investments were as safe as houses. The last four years have shown that this is no longer true. Although today’s prices are low, and prices seem to be on the rise, investing in real estate is still a high risk investment. While interest rates are relatively low, you [...]
If you would like to invest in real estate, you can choose to invest in a newly constructed home or pre-construction. This is a highly lucrative way to make profits quickly. Many times your home will increase in value before it is even built. About ten builders are responsible for over 90% of the new [...]
With high-equity real estate deals, investors can offer sellers attractive options and also benefit from greater flexibility in how transactions are structured. For example, investors can offer sellers fast cash in exchange for a reduced price, pay for the property over time with a note, or even delay payment until the property is refinanced or [...]
Are you interested in investing in Alexandria, Arlington or Fredericksburg (or other Virginia area) real estate through a Virginia Land Trust? Land Trusts have been in existence since 1891. In recent years, many companies have developed methods that allow for Land Trusts to be used to acquire properties in foreclosure. This allows home owners to [...]
If you are planning to buy a lot and build a home on it to sell, there is a way to get a new home construction loan while you are also paying for a current home and are not planning on living in the home being built. So, what would be the best type of [...]
Have you been looking for an investment opportunity in real estate in Virginia or other places? The REMIC (Real Estate Mortgage Investment Conduit) is an investment vehicle that uses a pool of mortgages to generate mortgage bonds. As an investor, you can do one of two things: you can hold onto the bonds or sell [...]
If you are new to real estate investing and are considering buying foreclosure properties, you need to be realistic about what you are facing. One good piece of advice is to take some classes from Maryland-based Investors United. Foreclosure investing is not a good investment approach for beginners. You should have at least a couple [...]
It seems so very simple. You pay a couple hundred dollars and get the “secret” to making millions practically overnight in real estate. It all sounds so tempting. You walk in with nothing, sign some papers and walk out with cash and the keys to a house. And, you can do it over and over [...]
Just as in any venture, it is tough to go it alone when you invest in real estate. Make sure you hire the real estate, legal and titling pros when it makes sense. For instance, if a real estate agent comes along and can find you a buyer three months sooner than you can on [...]
Once you own one home, what might pop into your head is the idea of owning a second home as a money investment. Though the real estate and housing market is low, if you have some fortitude and some patience, now might be an excellent time to invest in real estate. After you invest in real [...]
When investing in anything, including real estate, having a budget planned out is a great idea. By having an investing budget you will be able to stay on track and ensure that you do not get yourself into any hot water. Time and time again real estate investors make bad mistakes when it comes to [...]
Basic rental is an old practice. You buy a piece of property and rent it out to someone else, whether it is a house, a condo, a townhouse, etc. You, as the owner of the property, pay the mortgage, taxes and cost of maintaining the property. To invest, this means you need to make a [...]
Interest rates on 15 and 30 year mortgages are at record lows this week yet buyers seem to be leaving the market in droves. One reason for this is the increase in those looking to refinance rather than buy. It’s a catch 22 since fewer buyers lead to fewer sales, and a dropping in real [...]
Real estate used to be the backbone of any investment strategy. As a long term investment, it was secure, could be insured for damages, and if rented out, could produce a small income. For many, the events of recent years has soured this investment channel. Should it, and is real estate still a worth while [...]
