Category Archives: Hanoi Real Estate

Real Estate Investment Books

A bit of spackle and a fresh coat of paint is probably the most important, easiest (and cheapest) interior improvement you can make. A carefully painted room will open up, and brighten your chances of a sale.

Many people make the assumption that they need a lot of money to make money on property with their IRA retirement account. This is not the case. Hugh Bromma says that people that use options only have a few thousand dollars. An option will give you the exclusive right to buy property within a set period.

Lease purchase agreement or lease option is basically a contract done for a piece of land or property. This contract is done between the buyer and seller for a fixed period of time, after which buyer may gain full rights and ownership of the property. Buyers also have the option to not buy the property and forfeit down payment.

If it’s the seller making you the loan (or secondary loan), ask yourself this: Why would the seller allow me to purchase this property without coughing up one penny of my own cash? Unless the seller has a slate loose, chances are that the price you end up paying for the property is inflated and the seller counts the financing as a wind fall.

You will have more debt service. This is the natural course of 100% financing for an income property. The result could be a large loan payment that will eat away at your cash flow like a gorilla and require you to feed the property. That is, you could wind up digging into your pocket every month to make up the difference between cash you receive and cash you pay out.

Equity. real estate invesment equity may take several forms. These forms include foreclosure, re-zoning opportunity, discount, potential fixer upper and defectively managed property.

Another important thing to remember in real estate investing is to keep your risks proportionate to your ability to absorb these risks. Make an investment only when you are financially capable of it. For instance, a person who is accumulating assets can take higher risks than, say, a retiree.

Second, know what your options are. You do not necessarily have to sell the property investment right after you purchase it. One good thing to do with it is to wait until the value of the real estate increases – and that is when you sell the property. At times, it is worth biding your time while you patiently wait for the industry to boom to make better profits. This is also a two-fold winning situation since as you wait the value of the property goes up higher and higher and you can even make some decent income out of renting it while waiting for its value to rise.

A Complete Guide To Real Estate Investing

So there you have it. Option 1 is going with a realtor. It will cost you 6% and you’ll have to work with them to get the house sold — if they can sell it. Is it worth it? Well, what’s your time worth? If you have no time to spare or don’t want to put in the effort, then yes go find a quality realtor. A good one will be worth it and there are good ones out there. They might even get you more for the house than you could get yourself.

There are different outcomes available in real estate invesment. They include overwhelming profits, average income and terrible loss. The latter is the most debilitating of them all.

Real estate is not the stock market. You cannot expect to play it for short term profits. In the past, people have invested in property and flipped it for handsome profits. But that bubble has popped and it is anybody’s guess when things will be as they were before. So, play in real estate only if you are in it for the long run.

The sheer choice of property options available is another reason why this is the best time to invest in real estate. From Dallas in Texas to Los Angeles in California, you have plenty of options available to you nowadays.

Find a mortgage broker who is NOT an investor. A person who has a part time job as a mortgage broker isn’t always in the trenches and up to date on the latest happenings in the market. Use a professional, full time mortgage person. You will be much happier with their results.

It is always a plus when you attend meetings of groups. This will help you determine the group’s status and what you can get out of them. You have to realize if that group provides more advantage than disadvantage. A lot of investment groups allow those vying for membership to attend their functions without charge or for a minimum fee which won’t hurt the budget, and will not require commitment. Investors know that there is nothing appropriate which would fit the majority. It is up to the person to decide if the opportunity is the right thing for them.

Plus, in this business, you don’t always have to use your money. There is someone else out there who will partner with you. Sometimes they are Dentists, or Professionals who have take their money and have decided they want real good returns. They will partner with you for part of the profit. This is not a bad way to go because the money flows in. And the good news is no one is looking at your credit report. No one is looking at you. And no one is putting out a large loan on your credit to bring your scores down. That’s worth something in itself, not having to spend time filing papers for the bank or the mortgage company. There is no waiting for the money, it’s already available.

For those of you who don’t know how hard money works, repayment is usually a balloon payment with interest. The loan is paid off when you either sell the house in a flip situation, or when you refinance. Well, we have been working on getting the refinance to go through since October 2008. As of the time of this writing, it is mid-May 2009. Our hard money loan comes due in mid-June. Nothing quite like having an executioner standing behind you with a smile on his face. Yes, it is very stressful to say the least.