Tag Archive | "real estate investors"

Multifamily Loans to Purchase a Multi-Family Home

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Multifamily loans provide an online loan facility for individuals to purchase a multifamily home. Different types of lenders including conduits, insurance, banks, private lenders, real estate investors and pensions companies etc provide assistance in multifamily loans.

Properties Of Multifamily Loans

Multifamily properties may include mobile home parks, apartments and living space for two or more inhabitants. Inhabitants should have separate living space and private entrance.

Commercial Lending Rules

Commercial lending rules applied on multifamily loans properties with more than four units. Many lending options are advertised by lenders with a wide range of terms. Higher interest rate is charged for multifamily loans as compared to single family loans.

Qualifying For Multifamily Loans

Individuals those who want to acquire and qualify for a multifamily loan must fill out online pre-qualifying application form over the internet. Some lenders advertise interest rate, other terms and conditions as pre-qualifying approvals. Applicants must download and continue some documents provided by the lender at the time of pre-qualifying approval. Multifamily loans processed during the period of 30 to 45 days.

Document Requirements

Some documents are required by borrowers for further processing of multifamily loans.

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Best Ways For Funding For Dream House

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Any kind of home loan which permits for the lowest payments and interest rate that is highly desired by a single individual is known as dream house finance. They provide the comfort of purchasing a home to borrower which they strongly desire and consider it as their dream home.

Design Of Dream House

Most of the time, usual lenders recognize that someone desires a particular home intensely. At that time, they convince the owner of home to sell off their recent home and advance to their fantasy home, which may or may not give advantages in the long run. Most of the dream house mortgages are designed for those who will do anything to buy their desired home now, whether or not they can presently afford to buy it.

Funding For Dream House

Interest Only Option

There are many ways to allow a borrower to get a dream house.  Use of the interest only finances is one of those ways which allows a borrower to get a dream house mortgage.  Most of the monthly payment is actually going towards interest for the first five to seven years when making the early mortgage costs. So, basically, for getting into the home, using the option of interest only can be a helpful choice. After the passage of first 5-7 years, more amounts of principle payments should be added further onto the interest only necessity. After a set or certain amount of years, some dream house mortgage permit for an increase in payments to incorporate the principle.

Interest Only Finances

Refinance Your Dream House

Dream house mortgages are designed in such a way that the borrower can get into a house which they cannot presently afford to buy, but after they receive a higher paycheck, they may be able to afford. There will always be an option for the borrower to refinance the dream house mortgage or to resell the home. There are many real estate investors which will use the option of interest only payment. They will use the saved money to better upgrade the home and get it ready for resell at a higher price. In this scenario, the interest only payment is a sensible option.  The fixed rate loan will be the better option if the borrower chooses to live in the home for a long period of time.

Most Risky Mortgage Types

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Finance and economics are a part of our lives. Each and every year businessmen go bankrupt just because they do not know the proper procedure for operating. In a similar fashion, mortgages can also prove to be very troublesome.

Mortgage – Trouble in Disguise

Mortgage - Trouble in Disguise

It is extremely vital for one to select the mortgage type with care. Many a time’s individuals are not able to pay back in time. This could be a life changing moment when they go out of cash and out of home. Have a look at some of the 5 worst mortgage types which must be avoided to live a mentally peaceful life.

The 40 Year Fixed Rate Mortgage

In a typical 40 year old rate plan, one must pay over US$236,617.86 in interest. This is an extremely huge amount to spend for just anybody. In comparison to a 15 year old rate plan, only US$67,858.83 has to be paid in interest for a house costing US$200000. This huge sum of money can come of great benefit after retirement.

The Interest Only Mortgage – The I.O Type!

The Interest IO Mortgage type is effective for Real Estate Investors or individuals who experience fluctuation in earnings. The actual cost of the home remains the same. Read the full story

Rent to Own vs Own to Rent

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Buyers can purchase homes without having it being registered to their name. This type of financing is called real estate purchasing. This purchasing is often done when sellers find it difficult to sell or rent, or when purchasers have difficulties in qualifying for mortgages. Real estate investors use lease purchases to avoid a large capital investment. Although lease options are highly beneficial they come with great risk. Investors need to fully understand these risks before entering this field.

Real Estate Options:

Real Estate Options

A buyer can buy the option of buying a property at a later date. The price of the property charged is that which was when the agreement was signed. During the contract, the buyer rents the property and pays a rent higher-than-market rent. The additional money becomes a down payment. These investments become the first choice of investors when the number of houses on sale is more than the demand of the market, or when it is difficult applying for mortgage loan. Those being denied the mortgage, can use the lease purchase option and pay high rents. This can help in receiving the approval of underwriters in approving future mortgages. Investors can price property at a low a price and in the future jump up the price and sell it to another buyer.


Most of the options in real estate options are similar to one another. The purchaser pays the seller some amount, in other words, rents the asset for a certain period of time so as the buyer can buy the asset in the future. The price to be paid is negotiated at the current market value or a future value. The price is usually decided at the time of the contract signing. During the contract, the seller cannot sell the property to any other investor. However, if the buyer does not buy the property the seller can keep any additional money. The buyer can also sell his option to another buyer which is possible due to the fact, there is no holding title. Read the full story

Making Money on Foreclosed Properties

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Wise real estate investors know that investing in a foreclosure can be very profitable. However, they are also aware that finding a good foreclosure property is extremely difficult. The real estate market is always bursting with foreclosure properties, yet you have to know what to look for to find the right one. Buying any foreclosure property without any research can also lead to financial losses for you. So you have to be extremely careful.

Red Flags:

Red Flags

You would do well to eliminate the foreclosure properties from the list that are not appropriate. That means they will not provide you with a financial benefit. There will always be properties that will seem like great bargains. The prices will be lower than others on the market. You should be particularly careful when dealing with those. There has to be a valid reason that they are priced so low as compared to others.

You should be avoiding properties with a few features that indicate that the property will not make you a profit. You should check out the neighborhood and find out if it is a hotbed for criminal activities. Talk to neighbors and check out the houses nearby for signs of graffiti or vandalism. You should also survey the area and find out if there is a lack of owner pride. The obvious signs would be unkempt trees, un-mowed gardens and visible signs that repairs are needed.

Check out if the streets are dirty. Nobody will want a house in a filthy area. Also, look around to see if there are any abandoned properties in the locality. That will not be a good sign at all. Read the full story

How to Make Money in Real Estate

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Investing in real estate can be a pretty profitable affair. If you have the understanding of the market, then you will reap rewards. Real estate is a much safer option for investment than other options, like the stock market for instance. One thing you can take advantage of is that there are a number of small, local real estate markets that create inefficiencies. As an investor, you can exploit these inefficiencies.

There are a few key ingredients for your success in the real estate market. Once you understand these, you can get strong real estate gains for yourself.

Choosing Location:

Choosing Location

It is an important part of the investment to find a suitable location. The location that is feasible depends on a number of factors. The house price index and the unemployment rates are two key factors. They will tell you a lot about the suitability of the location.

To get an idea of the future health of the real estate markets, you can consult a few reliable sources. Some very well-known data is available from the Case-Shiller Home Price Index and the Bureau of Labor Statistics.

It would be a very good idea to invest in a city that has high rates of unemployment and a considerably strong Home to Price Index data. The best thing is if you are living in such a city, then you can easily manage the property and know the nitty gritty of the local marketplace. However, you can also invest in other cities if you have good management partners working with you.

State of National Market:

It is important to consider the state of the national real estate market before making an investment. Experienced real estate investors have the knack of making profits in a weak national market, but the odds are stacked against them. A new investor like you will stand no chance. Read the full story

Things to Know About Real Estate Investments

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Real estate investors have to be careful about a lot of things. There are tricks of the profession that they must master in order to be successful. Many of the pointers only come with experience. Handling issues of property over the years can turn you into a real pro at the business, revealing all the tricks of the trade.

There are quite a few universities that are offering degrees into real estate investing these days. While these may prove to be a useful asset in one’s profession, you can never fully rely on the degree alone. There are some habits that you have to make a part of your professional life in order to be a successful real estate investor.

Knowledge of the market:

Knowledge of the market

It is essential that a real estate investor gets complete knowledge about the market he is dealing in. And he should keep himself up to date with changing trends. Knowing a market will enable him to make business decisions that will reap him profits.

Staying Up to Date with the laws:

To be a successful real estate investor, you need to keep a current knowledge of all the laws and regulations. You will also have to be current with the terminologies. If you do not invest your time in doing that, then you can very easily lose momentum in your business. Not knowing the current law can also result in legal ramifications for you.

Investing is a Business:

It is important that you understand that your real estate investments are your business. This will help you deal with the occasional setbacks and help you look further ahead at your goals. You will stay motivated and organized.

Target One Focus Area:

You would do well to choose one area of your choice and become a master at that. Pick one focus or niche and learn everything you can about that type of investment. You will definitely earn more success this way than by being mediocre in a number of different fields.

Code of Ethics:

It is essential that a real estate investor maintains good ethical skills. If he gets a bad reputation, he will never in the business for long. Read the full story

Forces Behind The Real Estate Market

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In the world today, most people’s wealth is to be found in real estate. This is true to America, where majority of Americans have their wealth tied to the real estate. Real estate is a promising investment. Many investors are lured to the real estate because it is a lucrative, and promises of good returns in investment. But what exactly drives the real estate market? Four main factors can be singled out: economy; government regulations; interest rates; and demography.

Role of government in real estate

Forces Behind The Real Estate Market

Government plays a considerable role in the real estate market. Policies and regulation passed by the law makers will either depress the property market or make it vibrate. Measures like tax credits, deductions, and subsidies augers well for the real estate.

An example is the first-time home buyer tax credit introduced by the united state of America government in 2009. This incentive was to encourage home sales in a sluggish economy.  The outcome of this move was an increase of 900.000 home buyers; this is according to National Association of Realtors (NAR).

Real estate and economy

How well the economy also affects the value of real estate.  The wellness of economy is measured by factors like gross domestic product, employment data, manufacturing activity, the prices of goods and services. Read the full story

A Safe Haven for Real Estate Investors-Canada

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Canada is a new frontier that real estate investors are exploring. The laws are quite liberal, in the sense that you do not have to be a Canadian resident to own property in Canada. The business can be quite profitable if you understand the laws fully and act accordingly.

Citizenship or residency is not a requirement for owning property in Canada. You can even own property in Canada if you are a non-resident. You will only have to pay the annual tax returns. You can also own a Canadian property on a temporary basis. You only have to comply with the immigration requirements if you want to become a permanent Canadian resident.

Rental Property Tax Values:

Rental Property Tax Values

A property owner is required to have twenty-five percent of the gross property rental income remitted each year. This is due to Canadian Income Tax Act. Non-residents can opt for a second plan. They can fill out an NR6 form and pay twenty-five percent of the net rental income after expenses. If the property incurs losses, then the previous taxes can be collected back.

It matters in taxes if you are a partner or co-owner. It also depends on whether your property is considered business or rental.

Property Tax Values:

There is a provincial property tax when you buy your property. This tax is different for different provinces. You can be exempted by these if you are buying a first property in Canada. There are also annual property taxes by the municipalities. There is also the federal Goods and Services Tax for the purchase of new homes.

Loan (Home Equity):

For a residential property in Canada, you can get your home equity loans with a home equity line of credit (HELOC) or a reverse mortgage.

A HELOC offers a secure loan for your property or a credit line. It is a second mortgage on your home. It is a far more flexible option than the regular mortgage. You can make the payment at any time. However, the interest rates are a little bit higher than those of conventional mortgages.

A reverse mortgage is an ideal option for those over the age of sixty. It allows the homeowner to with draw payments regularly. These payments should total up to be forty percent of the current appraised value of the house. These proceeds are all free of taxes. Read the full story


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