2007 May | Real Estate Investing Blog
I previously wrote about finding your investment property and this is part two of this series. Part one talked more specifically about my trip up to bend Oregon and how I was looking for vacation rental properties.
To me, vacation rental properties can be a lot more profitable and enjoyable because you also get to enjoy using the property as well as renting it out. There are downsides of course to buying a property you plan on renting out such as faster wear and tear, people not treating the property very well, having things broken or repaired. Having said that the good news is these people renting out your property are paying down your mortgage and usually at a nice nightly premium price. Read more
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Why is there cheap real estate? Is it just that some sellers don’t know what their property is worth? Sometimes this is the case, but only rarely. More often a seller is willing to sell for less because it means selling faster or more easily. In other words, sellers will trade a little equity for a fast sale or peace of mind, as in the following situations.
1. Death – After the death of a loved one, family members may want to sell any real estate cheap to be quickly done with the bad memories, or to get their inheritance faster.
2. New Job – A job transfer or new job can give a person a lot of motivation to sell fast, and therefore sell cheap. Often, the seller will end up with two payments, and you will be helping by taking one off his hands. Read more
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Real estate investing can be simple in theory. You buy rental properties for a price and terms that provide positive cash flow, or you buy a home which you can fix up and sell for more. In practice, though, applying these simple principles involves a lot of educated guesses. Nobody really knows precisely what a house will sell for once it is fixed up. You also can’t say for sure how many vacancies you’ll have in an apartment building.
Fortunately, with real estate investing experience your guesses get better. But then there are the tricks and outright lies that some sellers will throw in your way. Bad information makes good guesses difficult to make. How do you protect yourself? Watch for the following dirty tricks that some sellers have been known to use. Read more
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Making improvements to your home is an easy way to raise its value. With a FHA loan you could be able to include the costs associated with your home improvements with your loan. The Department of Housing and Urban Development’s 203 (k) program is one in which you can refinance your current home or even purchase a new one in need of improvements and include all costs in the loan.
Aside from being able to use it to invest in your new or current home, there are numerous advantages to using a FHA loan. First and foremost is the ease with which one can qualify for a FHA loan as opposed to more traditional types of loans. Because the FHA is simply guaranteeing your loan lenders will be more inclined to give you the loan you need to refinance your home. This means that lenders have considerably less to lose by extending you a loan, because if you do go into default and they do have to foreclose they will get their money back. Read more
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