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Real Estate Investing - Maximum Leveraging of Your Money
At this moment, you have access to some amount of money, from the extremes of only pocket change to the reserves of Bill Gates or Warren Buffet.
Suppose you want to invest your funds into some vehicle that will multiply the return.
You look around for the Return on Investment of various investment instruments. For every investment tool, varying deposit amounts of your funds are required. You must either put up your cash or guarantee payment from specified resources.
Real estate investing offers the maximum leverage potential possible for your funds.
I found a large house for sale 25 years ago. It was listed for $150,000, but had been on the market for an extended period of time because of its large size with an awkward layout. But when I walked through the house for the first time, I immediately envisioned how the layout was conducive to three living units instead of the single family home as it was constructed. I offered $10,000 down payment for the house for a reduced sales price of $100,000, and my offer was accepted. The upscale house is now worth $500,000 and has been refinanced numerous times to pull out cash. Yet, the three units have consistently returned a cash flow of much more than the mortgage payment for 25 years. Leverage from the $10,000 down payment is astronomical.
But leverage available from real estate investing gets even better.
I started a practice years ago of submitting zero down purchase offers to motivated sellers with a $10 earnest money deposit. I bought $1 million in houses during my first year of real estate investing. I bought another $1 million in property the next year, and $10 million worth of properties by the 4th year. Yet, all of these purchases were made without any cash down payment and only $10 in earnest money deposits. (Even the $10 was in the form of a check attached to the Purchase Contract, and seldom even cashed by the Seller!)
But the real estate investing professional can take leverage even another step.
The earnest money deposit check for $10 could be equally legal as a check for just $1.
And in most states, so I'm told by my friends who are experts in legalese, a verbal agreement is just as binding as one accompanied with cash or check. Now that's leverage!
Don't let 'em tell you that buying real estate investments without cash or credit is impossible. My first four years of buying $10 million in properties for zero down is proof that prompted an editorial in the Wall St. Journal featuring my real estate investing. And I have packaged that information in a huge Guide for the would-be and veteran real estate investing professional.
Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" - http://www.AAREIT.com.
Real Estate Growth: How Long Will It Last?
There has been speculation in the media recently about the fact that real estate will begin to fail and implode as it can only handle so much growth. In my humble opinion these theories don't hold a lot of merit and here is why.
As a Realtor, How Do I Attract Listings?
Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who these realtors work for; GMAC, Century 21, REMax, they are extremely successful where others in their office are barely scraping by. What is the secret to their success? First and foremost, it is their approach to marketing themselves and their customers.
Types Of Real Estate - An Investors Choice
There are different types of real estate, and different ways to invest in them. Which way is best is for you to decide, according to your particular needs.
Real Estate Appraisal - Do It Yourself
For single family homes, there are two basic methods used in real estate appraisal. They are replacement cost analysis, and using comparable sales.
Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less
For decades, the real estate world turned in a predictable manner. The roles of buyers, sellers and real estate professionals were fairly well defined and transactions followed a predictable path of yard signs, newspaper ads, open houses and miles of paperwork.
10 Easy but Essential Steps for Home Selling Success
They say that the whole process of selling up, buying new and moving on is one of the most stressful series of events any of us goes through in a lifetime: and yet with careful planning, attention to detail and a clear focus, the whole process can be relatively stress free.While there will always be factors outside the control of any home seller, those factors that fall within their control sphere can proceed fluidly and smoothly when they take the time to plan and think one step ahead.
Boom or Bust
For those looking to invest in the real estate market?keep your eyes on the headlines. According to the Federal Deposit Insurance Corp.
Real Estate Local FAQs.
There are many frequently asked questions and any local real estate area. In our area here at the local Delaware Beaches, the most frequently asked questions are how to get a good deal and if there are any fixer-uppers available.
I Already Have an MLS Listing, Why Do I Need an Internet Ad?
In today's real estate market, astute buyers are also looking to realize savings by dealing directly with the seller. They use internet search engines and keyword sets (Atlanta real estate advertising, Atlanta for sale by owner, Atlanta FSBO) to locate for sale by owner (FSBO) properties on the web.
Take The Guess Work Out Of Your Wholesale Property Purchases
We have become very concerned by the number of readers writing to us asking how to determine which are the wholesalers(*) that can be trusted. Why are we concerned? Because when we dig a little deeper, we realize that they are buying properties based solely on the recommendation of the wholesaler.
Selling Investment Houses: Psychology of Mirrors
Discover new interior Design Psychology strategies to increase your real estate profits. One technique, using mirrors as props for staging houses helps you sell your investment properties for more money, and fast.
Real Estate Investing - Protect Your Privacy
An irate tenant or disgruntled home-buyer, with the help of a willing attorney, can readily prompt a property search for a property owner in public records. The target of the search becomes someone who has deep-pockets as reflected in real estate assets.
How to Eliminate Risk in Real Estate Investment
Avoid 12 Common Mistakes Made by Novice Investors and Ensure High Rates of Return!Real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an impact in others lives. Like any investment however, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heart ache.
Forclosure And The Durrett Rule
It's probably happened to you..
Industrial Income Property Financing: Part 3 of 3
Financial ConcernsOf the three types of income property, industrial property requires the greatest degree of technical expertise and experience. Likewise, financing the acquisition of an industrial income property can be, at best, very risky without adequate planning and know-how.
Flipping Fixers: Using Transformation Psychology for Top Dollar
Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of course, but your ultimate success depends on your ability to transform a fixer into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits.
Buying and Selling Distressed Houses for Maximum Profit (Update)
If you want to become a real estate investor, find a "fixer-upper" owned by an anxious seller. Finding distressed houses at bargain prices, fixing them up, and then selling them on a consistent basis can make you a multi-millionaire.
5 Factors of Selling a Home
There are five major factors to consider when selling a home. These factors will greatly influence not only the final price you will get for the property, but also how quickly it will sell and how much grief you will suffer through the sale.
Investment Property - Leveraging Rental Property Equity
Owning investment property is a tremendous wealth building strategy. Thousands upon thousands of individuals have amassed great wealth by investing in rental properties.
What is a Predatory Lender?
Several months ago, the 3,000-member California Association of Mortgage Brokers (CAMB) created the first real definition to describe the abusive lending practices of predatory lenders. According to the CAMB, predatory lending was described as "placing consumers in loan products with significantly worse terms and/or higher costs than loans offered to similarly qualified consumers in the region for the primary purpose of enriching the originator and with little or no regard for the costs to the consumer.
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