Financing > Finance Your Real Estate Investment Properties

Finance Your Real Estate Investment Properties

by: Peter Dobler

Unlike traditional residential real estate mortgages, real estate investment financing is way more creative and offers more options than you think. The golden rule in real estate investment is OPM (Other People?s Money).

I have enough money; shouldn?t I buy my real estate investment for cash? No, I absolutely advice against investing large sums of cash into a single real estate investment. There are two reasons why not. First, you give away most of your profits by not leveraging your real estate investment. Second, it is far too risky to put every egg into one basket.

Let me explain the leverage issue for a moment. I will give you an example of a $100,000 investment property that typically increases its value (appreciates) by 7% average a year. Maybe more, maybe less depending where you live. Paying all cash for this property will yield in a 7% appreciation profit plus the net profit from renting the place. Now you?re looking at roughly 15% of returns.

If you?re conservative with your investments you might be satisfied with this kind of a return. These days you might get equal or better returns with other conservative investments minus the hassle of being a landlord. But you don?t mind being a landlord, because you understand and utilize the leveraging method with financing your real estate investment.

With the example above you will make roughly $15,000 a year in profits from your investment. Now let?s take a closer look at what leveraging can do for you. Today a typical real estate investor can get financing as high as 95% - 97% of the purchase price. Occasionally 100% financing is available as well. But this would be totally unfair in this example to compare this with all cash purchasing.

15% return sounds like a lot, but wait till you see this. Let?s assume that the rental income will cover all your expenses including the mortgage payments. Taking the same example from before your net return would be the 7% appreciation profits of your property. This would translate into a $7,000 a year profit. With a 95% financing in place you would get $7,000 return on $5,000 (your 5% down payment) invested. This is a whopping 140% return on investment.

With the same $100,000 you can go out there and get 20 investment properties, finance 95% of it and make an amazing $140,000 profit a year. This beats the projected $15,000 profits with an all cash transaction any day.

Of course you will have a lot of trouble to get financing for 20 properties in a single year. Typically 5-6 new rental property mortgages are the maximum lenders will allow these days. This is the signal to get creative with your financing structures.

In this case sellers financing would be your key to achieve your goal of maximum leverage of your investment dollars. Despite the message from all these late night infomercials, seller financing is harder to get than they want you to make believe it is.

It all depends on the seller?s ability to offer seller financing and the seller?s motivation. Only about 1 out of 20 properties for sale are able to get seller financing. That means that there?s no mortgage balance on the property. From this narrow selection the seller must be motivated to sell under these conditions. This could be tax reasons, time constraints, personal reasons and many more.

As you can see this translates into a lot of work to achieve your goals. But let me tell you one thing. This separates the tire kicker real estate investors from the real go-getters. Wouldn?t you agree that a little bit of hard work and determination is well worth it to build a real estate empire?

I think it is well worth the trouble and hard work. At the end of the day you keep building your real estate investment portfolio and sooner than later you will be able to cash in.

Sincerely,

Peter Dobler

About The Author

Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.

Learn more about real estate investments at http://www.suncoastrenttoown.com or send a blank email to mailto:suncoastrenttoown@getresponse.com

Finding the Right Online Loan for You

Finding the Right Online Loan for You

by: John Mussi

If you're looking for an online loan, you might be having problems deciding which type of loan and lender is best for you. While you can get an online loan from several different types of lenders, the interest rates, loan terms, and collateral requirements tend to differ from one to the next.

Below you'll find information on the different types of online lending services, from online branches of traditional banks to solely online lending companies, as well as information about the differences from one type of online loan to the next.

Exploring loan options

Several different types of loans can be found via online services, and it can sometimes be difficult to decide which online loan is the right loan for your needs.

Low value secured and unsecured loans can be found, usually on the websites of real-world finance companies. These loans provide small amounts of cash at the...

Finding the Right Online Loan for You

Financing > Finding the Right Online Loan for You

Car Loan Quote - Comparing Loan Quotes

Car Loan Quote - Comparing Loan Quotes

by: Carrie Reeder

Don't settle for the first auto loan quote that crosses your path. There are various methods now-a-days in which individuals can acquire an auto loan. Be sure to compare all the pros and cons of each method to ensure you are getting the best bang for your buck. There are four main ways to acquire an auto loan quote: dealer loans, credit unions, home equity, or with online quotes.

Dealership Auto Loan

Dealership loans are fairly common. In the past, a dealership loan was the only way to finance a vehicle. Times have certainly changed! One thing is certain, dealership loans are convenient. While you sit and fill out papers for the vehicle you will purchase, you might as well fill out papers for a loan to finance that car. Yes, dealership loans are quite simple, however, sometimes they are not in your best interest. Convenience doesn't come free. Many times, these loans have higher...

Car Loan Quote - Comparing Loan Quotes

Financing > Car Loan Quote - Comparing Loan Quotes

Where to Look for Business Financing

Where to Look for Business Financing

by: John Mussi

Starting a new business can be difficult? in addition to creating a business plan that will outline what your business intent is and finding the contacts and locations that you'll need, finding the money that is needed to get a business off of the ground can sometimes seem impossible.

If you're not exactly sure how to get the money that you need, you'll find several suggestions below.

From information about traditional bank loans to finding investors, you're sure to find something that helps you to get on the right track toward the money that you need.

Bank Loans

The first stop for many potential business owners is their local bank. Many banks offer loans for startup businesses, though the process for applying for a business loan from a bank tends to be a bit more in-depth? after all, they want to make sure that your business plan is solid and that they'll get their money...

Where to Look for Business Financing

Financing > Where to Look for Business Financing

Car Finance Places You On The Top Gear While Buying a Car

Car Finance Places You On The Top Gear While Buying a Car

by: Natasha Anderson

Fast car on open roads. It is a perfect picture for any car enthusiast. But you have to go to your work and also drop your kids to school. This is the real picture for most of us. We need to save time when we don?t have any. A typical individual has so many odd jobs to complete that a car can, without doubt, facilitate their accomplishment. Financing your car doesn?t fit your idea of the way of buying your car; then probably you are still stuck with traditional car buying methods. Shed your inhibitions with regard for car financing because it undoubtedly keeps in mind your financial caliber before furnishing you with a car finance loan.

Car financing has taken a new spin with regard to providing investment for buying a car. So, how do you finance a car? If this question leaves you baffled, then you have to go a long way in the process of buying a car. The term ?financing?...

Car Finance Places You On The Top Gear While Buying a Car

Financing > Car Finance Places You On The Top Gear While Buying a Car

3 Little Known Tips to Buying Fitness Equipment

3 Little Known Tips to Buying Fitness Equipment

by: Amy Metz

Did you know that buying fitness equipment for your home isn?t really that difficult?

It?s true that the world of fitness equipment can seem like a maze at times and that there are literally hundreds of different types of fitness equipment pieces that might work well for your home arrangement.
However, with a little guidance, the process really isn?t that hard and you will be amazed at the bargains that you can find if you just dig a little deeper than the average consumer is usually prepared to. Let?s take a look at some tips to help you out in your quest for new fitness equipment.

1.
Look at used equipment. This is where some good deals can be found.
Fitness equipment can obtain a weird status in a person?s home.
They might have been really excited to buy it initially and dreams of a fit body and monthly gym savings might have filled their...

3 Little Known Tips to Buying Fitness Equipment

Financing > 3 Little Known Tips to Buying Fitness Equipment

Conventional Financing For Wholesale Deals

Conventional Financing For Wholesale Deals

by: Lou Castillo

This info is very important for both new and experienced wholesalers, AND buyers of fixer-uppers, to carefully read and understand. We learned it painfully, hopefully you won't have to :-)

Often times we are asked by investors about using conventional financing for their investor deals. In other words, they want to go through a bank or other similar lending institution to purchase a fixer-upper from us, or another wholesaler. The obvious advantage is that rates are cheaper, and the loan origination fees (many times referred to as ?points?) are both much less than ?hard money? (loans from individuals or small institutions specifically for investor type properties, with rates ranging from 5 points and 15% interest to 10 points and 18% interest). There are, however, some obstacles to using conventional financing of which you must be aware.

First of all, these banking institutions...

Conventional Financing For Wholesale Deals

Financing > Conventional Financing For Wholesale Deals

Corporate Loans - Funding Industrial Growth

Corporate Loans - Funding Industrial Growth

by: Andrew Baker

If individuals thought that they were the only ones who had the use for loans, then corporate loans will show them that they are incorrect. The corporates, who are deemed to have a large surplus of cash, too find themselves at the mercy of the loan providers (though not in the strictest sense of the word).

The use for corporate loans may emerge out of two reasons. Firstly, there maybe a shortage of cash and the loan is required to substitute the cash shortage. Secondly, they feel that the cash balance will find more productive uses if the task at hand is accomplished with a loan.

The position of the corporates is not as vulnerable as that of ordinary individuals, when it comes to getting corporate loans. Because of an increased bargaining power, corporates are able to grab a much better deal than individual borrowers.

Finance is the lifeblood of any business. Therefore,...

Corporate Loans - Funding Industrial Growth

Financing > Corporate Loans - Funding Industrial Growth

How to Prevent Clogged Gutters

by: Mark J. Donovan

If you have a home with gutters, you probably find yourself a couple of times a year climbing ladders and unclogging them. If there are trees in close proximity to the home, you may be unclogging gutters even more frequently.

I recently saw a simple, but very effective, product that can eliminate this tedious and sometimes dangerous homeowner chore. The product is called ?Gutter Cap? and is manufactured...

Financing Finance Your Real Estate Investment Properties How to Prevent Clogged Gutters

Financing > How to Prevent Clogged Gutters

diamond Financing

Know Your Course: Hazardous Areas

by: Edwin Shackleford

Golf can be a pretty demanding game. This is because anyone who wants to be an expert golfer or at least be considered as a golfer should first educate himself or herself about the concept of this particular sport, the rules of the games, and the conditions of the environment where the game is played.

For this reason, experts say that it is extremely important for every golfer wannabe to familiarize...

Financing Finance Your Real Estate Investment Properties water Know Your Course: Hazardous Areas

Financing > Know Your Course: Hazardous Areas

Understanding Cosmetics

by: Redi Choetics

Commonly, cosmetics means a preparation, such as powder or a skin cream, designed to beautify the body by direct application or it may be something superficial that is used to cover a deficiency or defect.

Cosmetics serve to beautify the body, especially the face and hair. Cosmetic surgery means to serve to modify or improve the appearance of a physical feature, defect, or irregularity. Cosmetics can be used on...

cosmetic surgery Understanding Cosmetics

Financing > Understanding Cosmetics

How To Make Your Neon Car Lights Look The Part!

by: Antonio Gabellone

It's one thing to grab a set of neon car lights and whack them on your vehicle, expecting them to work great, but the fact is, because you rushed the job to show your friends tonight, now their not working for some reason and there appears to be sparks flying out from under the dash, and on top of that, now your car won't start because you've shorted out the ignition! But on the other hand...

How To Make Your Neon Car Lights Look The Part!

Financing > How To Make Your Neon Car Lights Look The Part!

Recent Studies Show That 9 Out Of 10 Pcs Are Infected With Spyware

by: Jason Frovich

Spy Sweeper named PC Magazine's Best of the Year 2004 for antispyware

The very best AntiSpy program on the market -

Webroot Spy Sweeper. Webroot Spy Sweeper was named best spyware remover 2004 by PC magazine and praised for it's efficiency, speed and userfriendlyness.

Spyware and malware are large problems for Internet users today and can be both annoying and...

Financing Finance Your Real Estate Investment Properties Recent Studies Show That 9 Out Of 10 Pcs Are Infected With Spyware spyware

Financing > Recent Studies Show That 9 Out Of 10 Pcs Are Infected With Spyware