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Things You Need to Know about Becoming a Private Investor

Things You Need to Know about Becoming a Private Investor

One fact that is not known to a lot of people who invest is this: becoming a private investor is one way of reaping the benefits from real estate business. The fact that the housing market is increasingly getting stronger, which enables real estate investors to have significant profit, makes it a wise decision to become a private lender.
 
The extreme swing of regulations on loan origination from way too lenient to now over stringent is also another reason for private investors to venture in such investments. Now that these reasons have caught your attention, you might be interested in private money investing.

To help you prepare, here are the things you need to know about becoming a private investor.

Becoming a Private Investor

1. Private investments can potentially help improve your portfolio’s overall health.

Such investments represent assets which can be much less correlated than other assets in your portfolio because they depict whole new classes of securities for most investors. This means that their value may not move in the same direction, time, and amount as your portfolio. Due to that particular reason, when you include private investments as part of a well-diversified mix of holdings, it’s actually possible that the overall volatility of your portfolio will decrease while its expected return will increase.

2. Technology makes private investing easier and more transparent.

Due to the advent of technology, almost everything is possible. Even private money investing becomes as easy as clicking buttons because the online brokerage technology has become the norm in public securities trading, which in turn basically changed individual investing. Engaging in online brokerages lets you have an easy access and transparency to the deals and documents compared to the traditional system.

3. Seeking out well-connected people can be a good help.

It’s not necessary that you are linked to tons of people; what matters is that you need to know the inside track to the right deal, and you only need to connect to a few people; just be sure that those few are great in what they do. If you don’t have someone to confide when it comes to the perfect deals, you won’t be able to know the investment opportunities lingering out there in the open.

4. Private Investors are basically the spine of real estate finance.

Private lenders are treated such because they help business move through providing finances to people in order to acquire properties. When you become a private investor, it’s safe to say that a lot of people are actually counting on your money. You’re actually hitting two birds with one stone; you’re reaping benefits from your real estate investment while helping other people.

5. Private lenders are free from the burden of physically investing in real estate.

Unlike people who fix and flip homes, private investors don’t have to deal with tons of details before acquiring profit when they’re successful. They only have to lend their money through private lending companies, like iFundre.net, while they receive their big rate of return with lower risk.

6. Private money investors are protected by private lending institutions.

If you want to become a private lender but you’re not so sure about securities involving your money, you need to know that as you become a private lender, your endeavor will be protected. Private lending companies like iFundre.net partners with institutions that protects your investments in case some issues will arise with the borrowers or their property.

7. There are different types of private investments.

This goes to show that not all private investments are the same. There are some equity, debt, and other types of securities. They can be in startup companies with a great potential for growth in the years ahead of them. They are also in companies looking for capital in order to expand their business. The key is to choose the type of investment that has the potential to be a valuable component to your portfolio.

8. Reviewing the borrower’s capacity to pay monthly is a must.

As you become a private investor, remember that it’s very important to know if the borrower is able to make monthly payments. Otherwise, it wouldn’t be good for you or your investment. Although private money loans are often made based on the asset, or collateral, the fact remains that the best loans are able to give equal weight to the borrower’s past credit track record.

9. Secure enough liquid assets to cover the investment and any debts that may result.

It’s very crucial to calculate your net wealth. A lot of nonprofits usually seek investors who have enough assets in order to cover the needs of the project. This will serve as your cash cushion just in case something goes wrong. In that way, you will be prepared to face the worst thing that will happen.

10. Contact your mortgage broker about private investment.

When you invest privately, there are mutual funds that are created out of venture capital securities, which is basically a more disconnected way of becoming a private lender. These investments, nonetheless, have lower risk compared to direct investments. Your mortgage broker will be able to find the venture capital firms in the areas that you are interested in.

 

Becoming a private investor may not seem so familiar to you before reading this article. But now, after knowing some things about becoming one, you might be interested in that business. You can engage in this financial journey, but always remember to always have a backup plan and money. Remember to take risks and see how far your money would take you.
 
You can share your journey or some points that other people should know when they become, or decide to become a private lender in the comment section below. Feel free to add up any experiences and tips that you can give to those who are just beginning to test the water. You can also share what you have learned as a private money lender.

10 Ways to Invest in Real Estate Even with Bad Credit

10 Ways to Invest in Real Estate Even with Bad Credit

There are a lot of real estate investment strategies out there that could help you do a deal even with bad credit or no money. And it’s your lucky day because you are about to know 10 of these methods. They say ‘if there’s a wheel, there’s a way;’ such is the way of investing. Don’t let your financial status stop you from achieving greater things in the long run.

10 Ways to Invest in Real Estate Even with Bad Credit

Here are the 10 ways to help you invest in real estate even though you have bad credit.

1. Hard Money Lending.

This type of real estate financing deals with loans direct from individuals and businesses that aims to finance investments for a return. This type of lending is great for real property investments that require immediate funding, easier qualifying and/or involve difficult or complex transactions. Unlike the traditional loans you get from banks and other private financial institutions, hard money loan program releases additional capital to you and other would-be borrowers without unnecessary delay and heavy restrictions, so clearly, bad credit is out of the picture.

2. Private Money Investing.

If you’re looking for construction loans in bay area, you can definitely count on this type of loan to achieve it. This means that a private, an individual or several individuals’ personal money is invested in real estate or real estate mortgages. It focuses more on the source of the funds lent to the borrowers, as well other considerations from the investor’s side. This type of lending fills a need in financing that is more lenient on the qualifying, more diverse and acceptable to more complex transactions than traditional institutional bank type funding.

3. Partnerships.

This is perhaps one of the most common tips for real estate investors with bad credit because of its give-and-take relationship. This means that one investor can make up for what the other lacks. This could work with the former finding a property at a good price while the latter finances it. The most important thing about this is to be able to bring something on the table, as well as having a defined goal, risk, and roles in order to build a strong partnership.

4. Home Equity.

Another great option for real investors to have a bay area loan source even with no money down is through home equity. This is the value of ownership that is built up in a home or property that represents the current market value of the house minus any remaining mortgage payments. This could mean that there is a higher rate of gaining more capital because property values have increased in recent times.

5. Lease Option.

This option lets you make money from real estate while allowing other people to have home ownership. This means that you have the right to buy a property at a specific price within a specific period of time. This is the “option” that you have, although you don’t necessarily have to buy the property if you choose not to. Most of the time, the perfect candidates for a lease option are home buyers who have bad credit but have reasonable amount of money for a down payment because they have the time to correct their credit if the option term is up to three years.

6. Seller Financing.

This sort of loan doesn’t necessarily give the person selling the property the right to become a private lender; it’s just that the buyer loans from the seller instead of borrowing from the bank. This way, the buyer can purchase the house, but this comes with both parties signing an agreement as to how much is the interest rate, when the payment should be made, and what the consequences of default should be. Truly, this is unlike any traditional loans.

7. Making your own Mortgage.

This method lets you create your own mortgage in order to finance your investment in real estate. No one will check your credit situation, and you definitely won’t need an upfront cash payment. You might not know this but a lot of investors buy privately created mortgages and trust deeds because they can get a really great return in their investment in the long run, and also because it is much safer than investing in stock market.

8. Boost your Credit Score.

The only way to get out of a bad credit is to improve it. You must understand your credit score first before indulging in real estate. This is a statistical method for lenders to know whether or not you are able to repay the money you borrowed. Having good credit scores secures better mortgage rates, which means you can have long-term savings and great benefits as an investor.

9. Wholesaling.

This method ultimately doesn’t require you to have a high credit score not a great amount of money down. It all simply boils down to finding discounted properties and assigning the contract to a potential cash buyer for a higher amount, only as payment for doing so. You really need to have patience, time, and great marketing skills in order to make an awful lot of deals.

10. 401K Loan.

This strategy might not be suitable for every investor in every circumstance but this can actually be a wonderful way for you to start your financial freedom journey. This involves taking a loan from 401K which is basically just your own money. Typically, there’s a maximum amount that can be withdrawn, and the loan must be paid back within one to two years. The bottom line is that the only person whom you owe money to is actually yourself. So take that money and turn it into an asset now.

Whatever strategy you have decided to pursue, always remember that you have to appropriate it to your present condition. Besides, if you really want something to happen, you look for ways for it to happen, not reasons to quit. Investing in real estate takes guts and firm decisions that’s why only those people with such commitment prosper in this field. But with these strategies to guide you even with your bad credit, you can at least have a great start.Tell us in the comments below which strategy you think is best. We’d love to know your thoughts.

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Saving vs. Investing: Which is Better?

Saving vs. Investing: Which is Better?

There comes a point in your life where you are faced with difficult choices, and one of these is to choose between saving and investing. Although both can be done simultaneously, but to be honest, as far as being responsible is concerned, having to manage two types of financial matters can mean having too much on your plate. That is why you need to figure out which is better between saving and investing so you can start immediately and reap what you sow.

saving vs investing: which is better

The first thing you need to do is to know the difference between saving and investing. In that way, you will be able to place your financial status and needs in line with whatever way is best for you.
 
Saving leans on the short-term goals where you can have a ready-to-go money for smaller activities that you’d like to do in the near future, say three or four years. This includes going on vacation or having money in case of an emergency. This means that you have access to your savings whenever you need it. This causes minimal risk for your money because your funds are insured by the bank. Aside from that, you can also earn interest albeit generally lower compared to when you invest.

 

Investing, on the other hand, goes for the long-term commitment where you can achieve major financial goals. Take for example when you invest in real estate, you will be able to save for your child’s college education and not just for some summer trips. Although the risk in investing is higher than saving, it has the potential for higher returns. This risk eventually leads to your net worth increasing as you make profits for selling your property for a higher price than you invested initially.
 
Saving usually goes out for purchases and emergencies. You save for things such as vehicles to ride on, or holiday trips to enjoy in a few months; basically things that are available as soon as you need them, where lower risk is entailed. It involves tracking your savings and putting a deadline to reach your goals. Say for example you are saving for your annual family trip; you need to earmark a certain amount to save in a specific period of time in order to know how much you are going to save monthly.
 
Investing wisely results to better returns. Small investors in larger projects know that it’s crucial to invest early and wisely. Although, again, this opts for a higher financial risk, the harvest could be overflowing. People who invests in real estate should be patient, besides, you know how the old saying goes, “good things come to those who wait.”
 
Saving keeps your money safe but gives you very little return. This means that you put your money aside, usually into a bank account, and let it sit and wait until you need to spend it on smaller things like paying for a car, house deposit, or any emergencies that you need to take care of immediately.
 
Investing makes money for you. When you invest your money, your goal is usually to make it grow and multiply. The things you need to know in investing in real estate  allows you to gain properties and assets in which value increases overtime. This allows you to have the opportunity to earn more money than you originally saved.

Whether you are saving or investing, there are some factors that you need to consider.

First is your attitude towards the risk. If you want to play on the safe side and are contented with what you have now, you should save and keep your money safe away from risk. If you are more of a financially adventurous and patient person, investing is the right way for you. Investing in real estate, especially, can help you earn double or even triple the amount you saved.
 
Second is your financial status. When you’re in debt, out of emergency funds, just went through a recent financial crisis or a major life event, saving could be the best passage for you. However, if you’re in your 30s and you’ve got all the money in the world and you’d like to retire comfortably in about 30 years, investing is the best way for you to take. You can look up to real estate investors on that side of the coin.
 
Third and last thing to consider is your financial goals. If you intend to buy a new car or put down a deposit on a house, saving for like three years would be a great idea. On the other hand, if you want to pay for your child’s college or wedding fifteen years into the future, investing would fit you best.
 
To sum it up, if you want your money untouched for specific small ocassions, then you need to save. But if you want to see your money grow and multiply into the future, you have to invest. Now, you decide which is better; to let your money sleep or to let it move and do some work?
 
In the end, deciding whether to save or to invest depends entirely on your goals and financial situation. You need to be sensitive enough and financially aware and wise as to which path to take. But ultimately, saving money should almost always come before investing money. If investing is your ultimate goal, saving money would most definitely take you there. But remember, don’t wait too long to invest; the best time is always now!
 
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How To Finance Your First Real Estate Investment

How To Finance Your First Real Estate Investment

Investing in real estate is probably one of the biggest – yet one of the best – decisions you’ll ever make in your life. And just like what they say, you need to start young. Don’t ask yourself when the right time is, because the right time is always NOW.

Why Invest in Real Estate

There are things you need to know in investing in Real Estate and you should understand these things before diving into the water. People get hooked up in real estate investing because aside from it’s one of the best ways to get rich, it’s also quite easy to get started. You heard it right. You don’t have to be an expert or a genius regarding this area in order to invest. As a matter of fact, some of the most successful property investors didn’t even know they could earn fortune through property. It’s only after realizing how much wealth such investing can generate did they finally take the leap.

Another reason is that investing in real estate is much simpler than stocks and shares. Research can be done quickly online or by visiting suburbs without needing to pay specialists to fill you in with so many details. You don’t have to understand how a system works, or delve into the complex world of trading, research brokers, and fund managers. All you need is a good eye and the will to invest.

It’s also relatively quite easy to get finance when you invest in real estate. There are a lot of ways for you to have monetary support for your investment in this area so you won’t be blind as a bat when you start. However, if you’re a first-time real estate investor who has the faintest idea about these, let us tell you how.

7 Ways on How to finance first Real Estate Investment

7 Ways on How to finance first Real Estate Investment

1. Private Money Investing

This can be private, individual, or several individuals’ money being invested in real estate or real estate mortgages. It is the source of the funds that are lent to the borrowers including some other considerations from the investor’s side. This is quite similar to hard money in some cases, but it is quite more distinct because of lender and borrower’s relationship with each other. In private money, the lender is an individual who wants to have higher returns on their cash and are much less business oriented compared to hard money lenders. This type of lending fills a need in financing that is more lenient on the qualifying and more diverse and acceptable to more complex transactions that traditional institutional bank type funding.

2. Hard Money

If you need immediate funding, easier qualifying or complex transactions, this type of lending is great for your real estate investment. This program releases additional capital to you and other would-be borrowers without any unnecessary delays and heavy restrictions, unlike traditional loans from bank and other private financial institutions. Hard money loan is primarily based on the value of the property and has shorter term lengths with higher interest and fees to get the loan. Hard money lenders usually don’t require income verification and credit references. It can fund a deal in just days. Although this can be great for short term loans, you have to be cautious in using your hard money by having multiple exit strategies as your safety net.

3. Commercial Loans

This type of loan is a feasible option for your real estate investment if you are looking to buy a property with more than five residential property units. While other options just focus more on the residential side of the loans, commercial loans typically have slightly higher interest rates and fees, as well as shorter terms and different qualifying standards. This type of loan is usually availed by developers or investors to purchase or construct apartment or condominium buildings. Commercial lenders can extend a business line of credit to finance other investments most of the time. This allows them to have access to the cash for house flipping and other ventures in real estate.

4. Home Equity Loans and Lines of Credit

In order to avail this type of loan or credit, you have to have equity in your home. This is a type of a loan wherein loan payments are based on the value of the borrower’s home or property. A lot of financing institutions and banks has different services that let you tap into the equity that you’ve already got. For example, an investor purchasing a property don’t have to try financing the investment property itself, rather they can take out a Home Equity Line of Credit on their own home to pay for the property. You can search about Real Estate Financing and Investing regarding this matter to understand more about this.

5. Partnerships

Having partners in investing can help you finance a deal especially when the piece of property that you want to invest in is a little way over you price range. This is where your equity partner can be a great help in which you can add to your team. This is someone that you include in a transaction to help you finance the property. Your partner can either finance the entire property or just fund the down payment, whichever way suits you both. The thing is that you have to analyze each situation regarding how the deal is going to be, who will make the decision, and how the profits will be split at the end.

6. Owner Financing

This is another way of financing a property for you. This happens when the owner of the property that you want to buy will fund the property while you make your monthly payment to them, rather than in a bank. This is possible when the owner owns the property free-and-clear, meaning the property doesn’t have an existing mortgage from the seller. If it does, the seller’s loan must be paid back immediately before facing foreclosure. Owner financing is a great way to own a real estate without having to go through a bank’s hassle process, if of course, the conditions are right.

7. Local Bank Loans

One way of getting monetary support for your investment is through a bank. But as a first time real estate investor with a tight budget for down payment, going to a large national financial institution might not be the best option. This is because those establishments might not be flexible unlike your local bank. Your neighborhood bank also knows the local market better and is more interested to invest locally.

Now you’ve got plenty of options to choose how you want your first real estate investment to be financed. All these options can help you in their own way; you just need to figure out which one suit you best. Research more and plan according to take your first step and the rest will just follow. Remember, NOW is the perfect time to invest.

Steps Which You Need To Follow Once You Have Decided to Buy an Investment Property

Steps Which You Need To Follow Once You Have Decided to Buy an Investment Property

Nobody knew about the personal struggle and the sleep-depriving process that you had to go through before arriving with the final decision to invest in real estate. You only know that it’s the best decision that you’ve made! All the pros and cons you weighed, all the risks you were willing to take finally led you to this moment.

Buy Investment Property: Top 10 Steps To Follow

Now that you’re done with all the difficulty of settling, brace yourself now for what’s about to happen next. But don’t worry; you won’t go down that path without a light. Here are some helpful steps that you need to follow after deciding to buy an investment property.

Step 1. Enjoy your property

A lot of real estate investors almost immediately rent out or sell their property after buying them. That might seem like a convenient choice for some, but for professionals, they tend to look at the big picture first, which is this: enjoy the property for at least a couple of years and then do whatever you want with it once you have accumulated enough wealth and are financially equipped to live somewhere new.

Step 2. Remember your beginning

As you go through this whole process of buying an investment property, it’s normal to have some cases of wanting to go back or canceling everything. The thing here is to remember your beginning – your why – the reason why you started and the reason why you said yes. Remember your “end game,” your primary motivation in diving into the deep abyss of real estate. Then you will be able to strategize and outline your plan, your next move.

Step 3. Find your real estate “wingman”

You can actually buy your own property without the help of a mentor but always consider that even kings have their own adviser. If you’re a strong, independent person who can take on the real estate world on your own, you might want to skip to step 4. But if you’re new to this business and you would want to hear a professional’s opinion to objectively help you out, then this step is crucial for you. It’s important to have a mentor who sees what you see; who knows what you want to do and helps you to achieve that. Be sure to choose someone whom you respect and has a legit experience in the type of real estate investing that you’re venturing.

Step 4. Consider your financial status

One of the most important factors of investing is your finances. You have to consider very carefully and seriously that buying a property is equally important as finding the right property. If your investment doesn’t go well as planned, which is very unlikely by the way, you have to make sure that you can still land on your both feet. For example if you want to join small investors in larger projects, you have to make sure that it won’t cause you any serious damage, when thinking about worst case scenarios.

Step 5. Do some calculations

You have already done the math when you had the idea about the kind of property you to invest in, and the mortgage that you can afford. Everybody knows that you shouldn’t dive down deep waters if you don’t know how to swim; in the same way, you can’t barge into the real estate world without doing the proper math first. You need to educate yourself with the expenses, income, cash flow, etc. so you will know where your money goes and how it reaches you.

Step 6. Put your plans into actions

Whatever kind of decision you have made, whether you want to invest in new home construction or other properties, it is vital to exercise your plans. It is the outcome of vigorous researching and thinking that led to your specific goals and plan; it’s important that you stick to them so you won’t get lost. Always remember that real estate investment is not a hobby which you can tolerate impulsive behaviors. It is a business and you must treat it as such. Only make decisions that could help propel you upwards rather than pull you down.

Step 7. Connect with local investors

Nobody is an island – this principle applies fittingly to the real estate world. Don’t isolate yourself from the outside world and stop thinking that you can do this all by yourself because, honestly, you need to hear other people’s story as a head’s up of what will happen in the future as they have probably encountered that same situation before. Reach out to other local investors and build relationships with them. That is one way of learning as a beginner real estate investor. Learn from the experiences of successful investors and try to get a few tips from them whenever you can.

Step 8. Find listings

This is the most exciting part in buying an investment property – shopping for it. There are also a lot of ways for you to find the perfect property you want to purchase. There’s websites online where you can find listings, or you can contact brokers or agents in the area you are searching. It’s very important to find an agent who knows the area full well and is well-acquainted with what you’re looking for.

Step 9. Understand the risk you can tolerate

The risk you are willing to take indicates the kind of strategy you are going to use. You have to understand your own attitude because your strategy will reflect it perfectly. Of course, you never take risks without having the pros and cons in mind; especially when you know which side weighs more. When you’re fully ready to take the risk you can take, you’re more than ready to purchase.

Step 10. Assert an offer

After finding the investment property that qualifies everything on your list, you now have to make an offer. Of course, before doing so, you have to make sure that you have clarifies all necessary details big and small to avoid unwanted regrets. Be sure that you only spend the amount that you are capable of which meets your standards. Don’t be fooled by your emotions, again, real estate is business, so treat it as such, leave emotional ties behind.

After going through all these steps, you are now ready, more than ever, to make your purchase and let yourself in the world of real estate investments. Remember, there’s no backing out now, only moving forward! If you find these steps helpful, share it with your fellow investors. You can also share the personal steps you’ve taken after deciding to buy an investment property.

Why Real Estate Is The Best Way To Make Money

Why Real Estate Is The Best Way To Make Money

Maybe at least a few times in your life, you’ve wished to be rich or at least to make money the best way possible. I mean, who haven’t? Perhaps that thought still lingers at the back of your mind that’s why you clicked this article. Apparently, there are many ways to make money. You can work full time, or work several part time jobs, engage on a business, invest in stocks, invest in real estate, etc and the list goes on.

However, these days, real estate investing has been growing in terms of popularity and significance over the years.

Real Estate: One Best Way to Make Money

No wonder why the wealthy are seriously focused on real estate investments. Investing in real estate has a lot of advantages over other means of gaining wealth. Here are the reasons why:

  • Provides deduction of taxes

A lot of things from your investment in real estate budget are tax deductible. This may include, but not limited to, the interest, legal fees, depreciation, travel, repairs, insurance, supplies, association and condo fees, etc. However, this will ensure that you will save a good portion of your money from taxes so you can spend it on other things.

  • You can work in the comfort of your home

You will never have to compromise quality time with your family again. They won’t accuse you of working too much or staying too late at the office. Investing in real estate can be a full time job where you can work in an office or at home – your choice. However, in some cases, as an investor you might not be at home all the time because you need to visit properties, or go to the bank, or manage your rental properties. However, you can reduce these workloads by having a professional property management that would help you do the hard work.

  • You can make use of many real estate investment tools

As a real estate investor, you have an advantage over investment tools that you can use to help you find the best investment property and pay for it in the most convenient way in order to manage it well and decide what to do next in the moments to come. Private Money Loan Investing is also a great way to invest in real estate. This type of lending fills a need in financing that is more lenient on the qualifying, more diverse and acceptable to more complex transactions than traditional institutional bank type funding.

  • You can gain knowledge from resources.

Investing in real estate is one way of gaining knowledge and experiences when it comes to making money. Of course you just don’t dive into something without knowing about it first. Reading articles – such as this one – or newspapers, magazines, surfing websites, downloading mobile apps, taking real estate classes, meeting other investors and such can really help you learn a few things or two. As you can see, there are a lot of resources you can choose from.

  • Minimum background knowledge is enough.

You don’t have to be a genius or a professional before starting in real estate investments. In fact, that’s where all professionals started – at the beginning. You may be afraid to take the first step but you have to remember, it’s only hard at the beginning; it’ll only get better from there. You just really have to be willing to take risk and go on an adventure with new opportunities by expanding your perspectives in making profit. Real estate investing is not rocket science. It’s easy to learn as you go along. For example in Passive Real Estate Investing, investors can expect annual interest returns from conservative ranging from 5-7% to aggressive in the 8-12% range. That’s not too hard to understand, is it? You just have to learn the jargons and terms and calculations used in this field of work.

  • Grows over time

Investing in real estate is like a living business. It’s living because it grows overtime. There are a lot of opportunities that give investors like you different growth strategies to expand your territories, much like a king. Having multiple properties provides you multiple income, thus earning more and more than you ever did the years before.

  • Multiple investments is possible.

Whether you invest in real estate or prefer to invest in new home construction, you can easily generate more income in a shorter period of time. The real estate business has got an arsenal of opportunities for investors like you to earn more wealth in the best possible way. On the other hand, construction loans are usually short-term loans but you can always talk to experts as to how their funding program can suit your needs.

  • Provides tons of options

There are many faces to real estate investments. They come in the form of residential or commercial, urban or rural; in your city or out-of-state, single family homes, multi-family properties or condos; traditional or Airbnb renting; and the list goes on. You can pay either in cash or with a mortgage. You can choose to either invest on your own or in partnerships. You just need to figure out, or ask the help of professionals, what strategy suits your status best.

  • Offers long-term and short-term profits

There is always a possibility of earning now or earning progressively over the years with real estate investment. You can make money now and you can make money 20 or 40 years into the future through the opportunities that are always present to you as an investor. When you buy a property, its value will increase over time which means it will be worth much more than what you paid for it at the start. You can gain lots of money through that, or through other strategies.

  • You are tackling with substantial assets

Unlike investing in stocks, real estate gives you the assurance of something that you can see and touch. And that is very much appealing to people because they seem to want to see first before they believe, thus the famous line “to see is to believe.” As an investor, you can even visit properties to look at because your assets are your properties and it wouldn’t be that easy to just lose everything. You are assured of progress when you deal with your investments professionally.

May this list enlighten you and clear all the doubts you may have about real estate investing prior to reading this article. Take a giant leap of faith. Now is always the best time to start. Invest in real estate now and start your journey towards making money in the best possible way.

4 Best Ways a Beginner Can Get Into Real Estate

4 Best Ways a Beginner Can Get Into Real Estate

Real Estate investing” always has an impressive, high profile ring to it, and rightfully so. It is a hundred billion industry where even beginners can easily make thousands per month (if they do it correctly). One strategy in particular, can cost a beginner a mere $100 or less to start, and it doesn’t even require any specific financial education, just a bit of diligence.

Of course, it should go without saying that beginners should do a LOT of research when getting into anything, especially activities where you can lose money. It is called “investing” after all, you don’t get something for nothing, and the real estate market is not without its risks. Like most markets, real estate is cyclical, it will have its bullish, and bearish periods. Everybody knows that a lot of people lose money in a housing bubble, but if you’ve done your homework, you’ll realize that this is nothing that should discourage you from getting into the real estate market today.

It is assumed that before you start investing, you’ve already done sufficient market research on the area that you’ll be working. Having a significant number of contacts would be good, but as a beginner, you can build one as you go along. Once you’ve covered these, then it’s time to plan your next strategy.

Here are the top 4 ways a beginner can get into the real estate industry.

1. Contract flipping

Simply put, this just involves finding an underpriced property that a seller, better yet a “motivated” one wants to sell urgently, and a buyer for it. You draw up a contract and assign that to the buyer. Once the deal closes, you get paid your “assigning fee”.

2. House flipping

This involves finding and buying undervalued properties, or those which need minor repairs, and reselling them. Simple concept to grasp, but you’ll need to secure a decent amount for repairs, starting at around $5000. It also entails a bit of risk, since you’ll be losing money within the time you can’t find a buyer for the property, but profit margins are higher than wholesaling or contract flipping.

3. Buy & Hold

Possibly the oldest form of real estate investing, what you want to do is find a viable property to buy low, fix it up, then rent it out to get a monthly influx of cash. This will require a significant amount of capital, which you can either get from a private investor, or from a bank.

4. Buy, Renovate, Rent, Refinance, and Repeat

Some may argue that this isn’t for beginners, but if you’re keen enough to make buy and hold work, you will be able to do this too. BRRR&R is an ongoing process where you are essentially using a financing deal with lower interest rate to finance an older loan used to buy or repair the property that you’re going to rent out.

Here’s a useful infographic provided by Sell My House Fast Phoenix Offer Climb and Sell My House fast Houston Offer Climb on the 4 Real Estate Investment Strategies For New Investors.

17 Terrible Mistakes Made by Real Estate Investors Turned into Useful Tips

A wise man once said, one cannot become Mahatma Ghandi in a span of one day, not even Mahatma Ghandi himself. That proves to say that even in real estate investing, it is inevitable that you will most likely experience some mistakes that would either stumble you or motivate you into doing even better the next time. And that’s the thing about mistakes.

 

17 Terrible Mistakes Made by Real Estate Investors Turned into Useful Tips

 

You can turn something negative into positive by learning from it. But if you take a look at this list, well, you might save yourself a lot of mistakes in the future. Here are some useful tips and things every real estate investor should know:

1. Work with the Right People

Whether you are a beginner or a veteran at real estate investment, one thing will never change: no matter how dedicated you are, if you’re not working with the right people, everything will eventually fail. Partnering with reliable people will certainly save you from any untoward unfortunate financial circumstances. To avoid this, you have to know who you are working with not just with the words they say but with the credentials and deeds that they possess. A trusted network of experienced professionals with a legitimate track record of solid performance is beneficial to keep around. You would really want to go for those who actually walk the talk.

2. Choose the right location

Location is the key in real estate investing. It would say a lot as to what kind of property you should be getting. The key here is to do your research properly and choose the best location for your property. You have to be meticulous, if need be. Every single detail – big or small – must be taken into consideration. A sound judgement and a professional opinion would be very helpful in this kind of situation.

3. Choose the right property

No matter how fancy your location is, if the property itself that you chose is the wrong type, then everything will be in shambles. You have to remember to balance everything out, and just like in choosing the right location, you also have to be very observant regarding the property you are eyeing in order to save you from any unwanted regrets in the future. Since you are investing your money in real estate, might as well make sure you invest it well.

4. Good Financing

Good financing rids you one of the mistakes that you would never want to happen again. Failing to finance well is considered as a lethal mistake because some real estate investors have lost their money or went out of business because of failing to handle their finances well. This is where iFundRE.net’s real estate funding comes very handy. IFundRE.net is a real estate funding company that provides Real Estate Loans as quick and easy as possible to borrowers with both perfect and less than perfect credit, even hard money loans! The great thing about private financing is that you can negotiate almost everything. But the bottom line is, no matter what type of financing you use, you have to make sure that you negotiate hard and avoid the worst mistake.

5. Choose the right real estate investment strategy

The moment you know the right property to buy in the perfect location that you searched for, it follows that you already know what you want to do with it. The thing that you have to remember is that you have to make sure that you can afford it. Again, real estate funding becomes your friend in this type of situation. Take note that there are a lot of financing options in real estate – cash and mortgage are the popular ones at that. Make sure that you choose the perfect financing strategy for your particular situation.

6. Calculate your budget correctly

This goes hand in hand with the previous point. Alongside a great real estate investment strategy is the careful planning and calculating of your budget. One of the greatest mistakes real estate investors make is underestimating costs and overestimating income that will take a toll on the probability of generating a negative cash flow. That in itself is not an option in real estate investing.

7. Make an Exit Strategy

There is no definite assurance that everything you have planned would go accordingly to how you want it to be. Same as in investing in real estate, no matter how vivid your idea is of what you want to do with the property that you want to buy, your money will be wasted if things don’t work out as planned. It is crucial to have a safety net to fall on – an exit strategy as an option in case your original plan goes out of hand.

8. Manage Effectively

Once you have already moved forward with the investment, there are a lot of responsibilities that you must adhere to. You might need to drive by the property often and interact with some people and all that. For sure you are not a full time real estate investor. You have a family of your own, some friends, or loved ones who would want to share your time. You need to manage everything effectively and not compromise one thing for the sake of another. Balance is the key.

9. Delegate responsibilities

Unless you are vying to become a superhero or a saint, you need to step down the ladder and seek help if need be. What do moms hire when they can’t handle everything on their own? Exactly, a babysitter. Now, as a real estate investor, especially if you are new to the business, it pays to hire a property manager to manage your properties. If you try to do everything by yourself, the point above will be the result; it will lead to more problems, more costs, and more stress.

10. Drive away fear with confidence

The only thing stronger than fear is hope. And that is something many real estate investors fail to acquire. They can never truly experience all the great things real estate investing can do for them and their finances because of some fears – failure, loss, and risk. These things are holding them back. But the great part about that is you can overcome those fears with knowledge, and with knowledge comes hope, and with hope comes confidence. In order to not be afraid of the dark, you have to learn how create light. Indeed, in real estate investing, you have to learn topics that you are not familiar with – that is how you create light.

11. Starting with a humble beginning

The thought of owning a property might overwhelm you. However, do not let that moment become a path for an impulse decision of pushing through a huge first investment that you might not be able to handle properly. In the long run, it is inevitable that you will go bankrupt right away. Just as a massive tree starts from a tiny seed, so shall be your investments. Begin to plant a seed first – start small and eventually, there will be investment opportunities for you to grow it into amazing lengths.

12. Set aside emotions in decision-making

The key here is to become a professional who makes credible decisions based on research, knowledge, and evidence. Real estate investing is purely business matters. If you think with your heart instead with your head, then you might be luring yourself into trouble. Your investments are your assets. Don’t let your emotions ever cripple the decisions that you make.

13. Learn from previous mistakes

No matter how cliche it may sound, we really do learn from our mistakes. But if you get to fall for the same mistake again, you have to question your own judgement. Surely, there is room from improvement. Do not get swallowed by your loss or your failure, instead draw the right conclusions from it and learn the lessons so you won’t do the same mistakes again in the future.

14. Be patient

When it comes to real estate investor virtues, patience holds one of the highest places. Indeed, a well-rounded investor is patient as he is wise. No matter what kind of investment you have gone with, always know that it takes time and effort before you reap the fruit of your labor.

15. Treating Real Estate as a business

Owning a property is not a joke, nor is it a hobby. Real estate investing is straight up business. Some investors might treat their properties as something that they do for fun, but at the end of the day, they sit down and wonder where all their stress, pain, and financial loss come from. In order to not make it feel like a hobby, you have to create systems that would increase efficiency of your business.

16. Keep records religiously

You can hire a bookkeeper to keep track of your records. This can be a very straining thing to do if you fail to start it at the very beginning. Every documentation and transaction that has happened in your investment must be kept so as to keep everything in order.

17. Start investing now

If you’re looking for a sign when to start investing, well, this is it. This is your sign. People think that investing is best once you have enough money to pay for your property in full. Little do they know that there are trusted real estate funding, such as the iFundRE.net, which gives the best fundings for any real estate venture. Investing in real estate is learned through doing it. What better way to learn than by doing it as early as possible.

 

Be familiar with these mistakes and you will never tread on the same path as these; although you may walk on your own path of wrongs. But always remember that all mistakes are stepping stones to doing things right the second try. The thing about these real estate investing mistakes is that you have a way out of it! And one helpful way to that is through real estate funding. iFundRE.net is a trusted team who looks to design a loan that meets all of your Commercial & Residential Loan needs. As it is said in the points above, do not be held back by fear, instead take risks and you will reap what you sow.

Interested to Invest in Real Estate? Here’s Everything You Need to Know and More!

Let’s face it – you want to invest in real estate but you have little-to-no clue about how or where to start. You have heard about the profits people get from it when the market is right.

You have heard about people earning long-term income just by note & deed investing and JV partnerships.

Now, you want to test the waters before diving in. Let us save you the trouble of drowning. We have swam across the waters and in this article, you will find some of the best tips for investing in real estate to help you stay afloat.

Investing in real estate

1. Know why you are investing.

Investing in real estate is not an impulsive action; it involves a long and well-thought-of days of decision-making and planning. Remember that you are putting your finances on the line and that is not something you want to take lightly. You have to have the clear understanding of why you are investing so as to stand your ground firmly once you’ve started.

2. Know your local investors.

Keep your friends close, your enemies closer, and your local real estate investors closest. That’s right, learn from those with experience. It’s one thing to read about investing online and it’s another to hear it directly from those who have already walked the road you are about to tread on. You might need to take notes while you’re at it.

3. Sacrifice to prioritize.

You heard that right. You must be willing to sacrifice some luxuries in order to prioritize your future financial freedom. Maybe from a vacation of once a month, you can cut it down to twice a year, from eating out at expensive restaurants every pay day, maybe you can save it strictly for special occasions and celebrations. The key is to look at what’s ahead of you.

4. Every great things started out small.

No one becomes Bill Gates in a day; not even Bill Gates himself. Having said that, there’s nothing wrong with starting out small. You don’t have to purchase an entire building right off the bat. For all you know, your house might be your first small investment, and eventually it will lead you to the best real estate investments in the near future.

5. Be open to possible resources.

There are moments when you know it’s the perfect time to make an investment but your financial situation says so otherwise. This is where real estate funding comes very handy. There are loans that suit your needs when it comes to investing. Take your chances and know that it will pay off in the end.

Here are some reasons why you should consider real estate funding:

  • When you invest in a real estate funding, you’re putting your funds into secured mortgage, that is, loans which are secured by notes and deeds of trust.
  • You can also have the choice of having a joint venture investment where you would have shared ownership, shared returns and risks, and shared governance.
  • When you want higher returns, you also have the choice of becoming a higher risk investor.

6. Do bookkeeping as early as possible.

The moment you start investing, organizing your financial records will really help you in the long run. You can, perhaps, seek help from a lawyer and an accountant to help you keep track of your financial transactions, legal holding status, taxes, etc.

7. Recall your basic Math lessons.

Don’t worry, this doesn’t concern calculus or algebra; just plain and simple adding and subtracting. The thing here is that you need to be familiar of how to calculate your income, expenses, and cash flow. Although you need to have an accountant for that, it pays to be able to understand the math behind these matters.

8. Do your research. Read more about investing in real estate.

Never think that you have it all figured out. There are still more things you will need to discover when it comes to investing. The more you know, the better you are in handling your investments.

Want to invest with us? Call us at (925) 268 – 8012 for investment assessment.

What is a Blanket Loan? ~ Getting under the blanket!

It’s a simple term referencing as a blanket covers everything (or everyone) under it, in the world of mortgage finance when a single loan is secured by more than 1 property, then those multiple properties, it could be said, are covered by that blanket loan.

Wrapped in a blanket all warm, cozy and snuggled in. hmmm, Here is another simple analogy. The multiple properties are wrapped in that one blanket loan.

The variety of entities that can benefit from this specific loan product is diverse. From Mom & Pop with a couple rental houses or commercial place of business and a rental or two. Investors with rental properties whether a few or great many properties (This is portfolio lending), Real estate trusts, investors, corporations, developers who subdivide land into parcels and the list goes on. The largest of these players in the real estate field lately are the ones who have scooped up thousands of single family properties at auctions and in bulk from banks and Freddie Mac / Fannie Mae caused by the most recent real estate meltdown and turned them into rentals.

So who will finance these blanket / wrap loans?

Here we have another diverse list: Your local savings and loan bank for mom & pop, to local commercial banks for their relationship clients all the way up to wall street money for the big guys (and girls).

Now it’s not just residential properties and land these will cover!

Multi-family apartment buildings to commercial properties are also prime candidates.

Benefits and drawbacks come with the territory so stay awake under that nice warm blanket for a moment longer while we touch on some of these topics. First of all, it takes some investigating and doing your homework before you go and get under one. Its always smart to consider if you getting under a blanket alone! Because once you put multiple properties under one loan with partners or loved ones, it has even more implications.

While some lending sources require that the properties be held in an entity such as an LLC or Corporation it’s not always the case. And don’t forget to ask, “recourse”? *personally liable* or non-recourse *hey man, don’t look at me if it all goes to hell!

As with any financial decision, you should get good council after you do your first round of inquiries on your own with an experienced loan person (banker &/or broker) your tax person and a real estate attorney so the end result is not a SURPRISE! Some of the simple benefits are the fact that you only have one escrow, and loan to pay for and keep track of. Grouping multiple properties can also benefit to allow to cross collateralize in purchase and refinance situations allowing a or properties with more equity overcome shortfalls of equity poor properties or even reduce / eliminate the need for a down payment on the purchase of additional property. And yes, you can combine a refinance with a purchase simultaneously. Fun stuff huh? But on the other side of the coin, once you put properties together, unless you have predesigned release clauses in the note and deed you may find one or more properties stuck together in the wrapper (pun intended) when you want one or some out!

Need a blanket loan? I’m here to help solve your real estate financing! Please visit my website @ ifundre.net or contact me directly via email- paul@ifundre.net.

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