World Famous Blog about everything Real Estate
What is house flipping? Flipping of property is normally done in two ways, one is where you buy the property with the intention to resell it at a profit, without ever occupying it and other option is where you redesign and renovate it and sell it at a profit later. Read the rest of this entry »
To refinance is to pay off your existing mortgage with another one at a lower rate.
A cash out refinance is refinancing your existing mortgage and borrowing some of your equity in a lump sum to use for other purposes. Such as home improvement, college tuition, family vacation, etc. Read the rest of this entry »
When you are dealing with tight funding, you may be wondering what it is that you can do in order to stay afloat. These are scary times, and many people are underwater with their mortgages. You may have heard that there is help. Let’s take a look at Mortgage loan modification and whether it may be for you. A mortage modification may keep you from having to seek bad credit refinance loans in the future. Read the rest of this entry »
Some individuals are complaining that banks are not lending money. This claim is simply not true. Yes, banks have tightened lending standards after a period in which standards were too lax. And yes, some of the more crappier banks may not have the cash. But, according to Federal Reserve data, bank credit has actually increased over the course of this recession, and business lending is trending up modestly so far in 2009. Also, mortgage finance volume is booming as a result of low interest rates and low home prices.
I happen to know that some people are getting mortgage money from local and state banks. Eventually, these numbers will grow as well.
As the real estate markets begin to rebound late this year, money will be made available as bad debts are dissolved. But, you have to remember to get your credit scores up, folks!!!! You can’t get your hands on these funds if your documentation shows you to be a bad credit risk. We discussed this two years ago. But, here it is again in simplified format. Read the rest of this entry »
The recent bankruptcy filing by short-lived Arlington, Texas, home builder Wall Homes Inc. is bad news for private-equity outfit Warburg Pincus LLC.
Wall Homes owes the firm about $42 million, according to court papers. Warburg Pincus’s investment, which helped launch the closely held builder at the top of the housing market in 2005, is unsecured and “subordinated to secured lenders.” Read the rest of this entry »
I’m a big Monopoly fan and I recently saw a sweet website that talked about something I have always wondered about: how to figure out how long it takes to return your investment in the various properties, houses and hotel purchases. I think that this is really the key to developing a winning strategy for Monopoly. Without this knowledge, how do you know whether to focus on putting hotels on Boardwalk or buying up all of the Railroads? Just like in life, you cannot do everything or be a specialist in everything. The key to winning is making the right purchases and decisions at the appropriate stages of the game. Are we still talking about Monopoly? Read the rest of this entry »
For the uninitiated, a real estate broker is one (or a firm) who acts as mediator between sellers and buyers of real estate. They also market and put together deals. Hmm… If you are a good RE Broker, then chances are you are very affleunt and handle very exclusive accounts.
Or, you are a newbie who is trying to break into the real estate market by not actually purchasing any real estate.
It sounds to me that brokers do nothing outside of what an experienced RE investor can do on their own. So, why do we have brokers? When real estate companies wish to capitalize on fees and “add-ons”, they come up with things like brokerage, handling services and negotiation representation. All things that you will be charged for. And all things you can do yourself for nothing.
In this particular real estate market, we have a large supply and a lower demand, which is causing prices to drop. This also means brokers are out of work. Some brokers are trying to move devalued real estate. And some are trying to convince buyers to buy. Bottom line is without buyers and sellers and enough cash to support both, you have no real estate brokerage business.
Save some money and handle real estate yourself. Keep as many transactions in-house as possible. This includes locating properties, negotiating deals and representing yourself and/or company.
Let the brokers move their businesses to insurance.
-Richard – www.TheFlipBoard.com
I had an idea this morning. How do I communicate to those who just don’t “get it”? Then it dawned on me. Tell a story or equate the concept to something they can relate to. I chose the latter of the two methods.
Most newbie investors have trouble truly visualizing what the Real Estate business is as well as how to make it successful. Based on the successes we have experienced, the best way to approach Real Estate is to think of yourself as printing money. Read the rest of this entry »
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