For many
of us, our most significant investment and largest profits in life are due to
having bought a house — something that acts as a de facto bank account, grows
in equity and provides shelter all at once. But what if we want to use real
estate as a money-making opportunity instead?
Real estate has, of course, made many millionaires. The Wall Street Journal recently
reported how more than 80% of borrowers who refinanced in the third quarter
chose the “cash out” option, withdrawing $14.6B in equity out of their homes,
according to government-sponsored mortgage corporation Freddie Mac. Now, many
are finding their homes to be a tappable source of wealth. “Home equity is the
big pot of gold,” said Sam Khater, the chief economist at Freddie Mac.
It’s not hard to see why many have successfully made money buying
and selling real estate because of the diverse ways to grow wealth with real
estate investments. Forbes writer David Greene talks about having become a
student of creating wealth through real estate and has compiled a list of some
of the traits he sees as common among the most successful investors, whether
they’re house flippers, residential home landlords, or large apartment complex
owners.
Knowledge is, of course, key. Real estate investors always seem to
know more than those around them — what drives markets, how to time market
cycles, and which things to watch out for. “They are much more likely to
recognize shifting markets before others do and are prepared to take advantage
of these opportunities when they present themselves,” says Greene.
The very best never stop learning, and real estate is no
exception. Apart from websites where
investors can learn, network, and find solutions to their problems, some also
collect books written on how to invest in real estate, reading them repeatedly.
Developing the ability to analyze a
property for cash flow as well as recognizing an under-valued property when you
see one. Then develop a basic understanding for estimating rehab costs along
with the various pieces at play when it comes to owning rental property.
The more you know about real estate investing, the less fear
you’ll have. Overcoming fear is one of the best things you can learn to do if
you want to carve out a successful career for yourself in real estate.
Patience is also a virtue, that it may sound simple, but that’s
not always the case. “When it comes to real estate investing, there is a lot of
pressure on you to move and move fast. The best deals go quick and allowing
projects to run past the agreed upon timeline can be expensive. Investors are
constantly facing pressures to do more, do it faster, and do it cheaper.”
The best investors know when they need to run fast and when they
need to stop and wait to see how things develop. Patience can take several
forms when it comes to real estate investing. Learning to recognize areas where
you’ll need to practice it can save you from a lot of expensive mistakes.
Understanding market cycles are also of vital importance. Top
investors zig when everyone else zags. They are fearful when others are greedy
and greedy when others are fearful. Waiting for the market to slow down, or
crash even, can require more intestinal fortitude but it is also a much better
time to be picking up assets.
Study how to transform a property, how to be efficient, and how to
be keenly focused and how to develop important relationships, I encourage you
to go to BiggerPockets.com, where you can get tips like this for free. “In a
hot market, you don’t just find good deals. You make good deals. Top notch
investors see ways to add value to properties without spending more money than
they have to. For those with the vision to bring it about, there can be big
rewards for those who buy the ugly duckling and turn it into the beautiful
swan.
I work
with investors on several fronts, coaching, advising and how to obtain
financing on any real estate deal. There are so many financing programs that are available and attractive for any type of property and investor.
It’s a
completely different arena buying a Non owner Occupied (NOO) or commercial property and is very
flexible.
Just to
name a few different ways to access financing for your project;
1.
NINA- No income, No Asset documentation often referred to as “No
Doc” mortgages. The borrower is required to provide any financial information
regarding their income or assets.
2.
SISA – Stated Income/Stated Assets, Loans only require the borrower
to state their income and assets situation but do not require the verifications
of income and asset information.
3.
SIFA or SIVA – Stated Income/Full Assets or Stated Income/Verified
Assets, only requires the borrower to state income but must provide asset
documentation information.
4.
NO Doc – No additional income docs required. This is normally an asset-based
loan and the subject property is looked at solely for determination of value
for the loan amount lender is willing to risk.
5.
Low Doc – Minimal docs are required to determined income for
borrower. Examples
would be, personal or business bank statements for 12 to 24 months.
I have a really cool eBook for investors, go ahead it's FREE Download HERE
Thank you for visiting my blog, please leave me a comment, they are always encouraged and welcome.
SR Loan Consultant
Branch Manager
Cell 808-457-2455
NMLS #269926 ACMC #2225
No comments:
Post a Comment