For the first 10 days, HUD only allows owner occupants, government programs or non profits to bid on their properties. These properties are generally in need of repairs, they have eliminated at least 90% of the buyers for their properties. Additionally they have eliminated buyers who are willing and capable of making fast decisions. Because they have opened a door for finding a great deal. These properties are generally listed on a Friday. If you view the property over the first weekend and discover that it is listed at a pretty good price, you need to make a quick decision. You must make an offer prior to Tuesday to have the greatest chance at getting a good deal. In almost every state, HUD will automatically take a bid that nets them 87% of the list price. If you put the offer in on the first available day (which is 5 days from the day it is listed) and you put the offer in that nets greater than 87% of list price, and if you are the only person who puts the offer in, you will be the winning bidder. Please consider that this strategy will not work every time because others bid more.

Typically, I have to do this two to three times for each property that I buy or help somebody else buy using this strategy. One way to get outstanding deals is to buy a HUD home that you intend to live in. Because you are committing to moving into the property, do not use this strategy if you do not intend to actually live in the property. It is illegal, and you are very likely to get caught. Other investors hate when properties are bought owner occupied, and they will spy on the property over the next few months. If they discover that it was bought by an investor, they will be quick to report you. At least that is what happens in my market. You can often find fabulous deals to move into because HUD makes these homes available to owner occupants and non profits. This means that if you can move quickly, you can sometimes get huge discounts with a very low chance of being outbid. Another opportunity to get good deals on HUD homes is to track them over time for price reductions. If you can make a bid the day after a price reduction, you may be able to get the property at a price less than others had offered the day before, simply because you are doing so the day after a price reduction. A third opportunity to get good deals on HUD homes is to discover homes that fell through that are re-listed. If a property goes under contract, then falls through, it can be listed on any day of the week.

Because it fell through, it will have a list date that is further down the list on HUD’s website; most other investors will not notice that it has been re-listed until it is too late. If you happen to notice the first day that the property is back on the list, you have a great chance at getting the property. Rarely will a property that was a great deal fall through. Because if it were a great deal, the investor would have found a way to get it closed. However, having a good list price does not mean that it was under contract for a good price. Many of the properties go for over list price because an investor might want to make sure that they get it for a great price. It takes consistency, patience, and practice!  for more info go to:  www.investingwiththestars.net/alan/replay

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There are a number of advantages to purchasing a home “subject to” from a previous owner. The most obvious advantage is that you do not need to apply for your own financing. If the previous owner had a good interest rate, their rate will typically be lower than the rate that you would be able to obtain as a new owner. The biggest reason for this is that their rate is based on a primary residence and it will carryover to you. Besides a lower interest rate, you will typically avoid all the closing costs associated obtaining a new loan. If you are buying the house subject to, you may be able to obtain the house for no money down; sometimes the seller will pay you to take over the mortgage. In these scenarios, you are definitely better obtaining a loan subject to than you are obtaining your own financing. Are there reasons not to take a loan subject to? If their interest rate is higher than your APR would be on a new loan, and if you do not have a limit to the amount of loans that you can obtain, you may be better off getting a loan yourself. Here is where I think a subject to, does not make sense. I have heard a lot of people tell me that they are better off getting a house for a 15% discount because they took over the seller’s loan, and thus have eliminated all the risk of investing in real estate. They think that they are better off getting a house at a 15% discount subject to than they would be getting a house at a discount of 30% where they had to use their own credit. I have trouble figuring out how they reached this conclusion, but let’s explore an example. Let’s assume that the house is worth $100,000. They bought the house for $85,000 subject to, and I bought the house for $70,000 and had to get my own financing. Let’s assume that they took over an interest only mortgage at 5.5% and sold the property after one year for $100,000. For the sake of simplicity, the house was sold outright after a year with no tenant in the house. In their scenario, they had to pay a total of $3,850 interest. After spending $1,200 in taxes and $500 in insurance. (Please note that their insurance agent may have advised them to pay for two insurance policies. One insurance policy that covers the previous owner and another that covers their liability). For the sake of this example, let’s assume that they didn’t even have to pay for that. In their scenario, let’s assume that typical closing costs and the other holding costs totaled $5,000. Their net profit on this transaction is $4,950. That is assuming that they actually sold it for full price. Let’s take the same example, but I bought the house for $70,000 and had to obtain my own financing. I paid cash and then refinanced with a 12 month note. My interest rate was 7.5% with $500 in closing costs. In this scenario, I pay a total of $5,250 interest and $500 in closing costs. Thus I paid $1,900 more in financing fees than the person who bought the house. I have all the same closing costs, holding costs, taxes, and insurance upon the sale. In my example, I made a net profit of $17,550. Thus I made $12,600 more than the person who bought subject to. You might say that this scenario is not a fair comparison because we may have to hold the property for longer than a year.

I hold my properties for an average of 8 months; on average I will do even better, but let’s say that in this example, it takes us four years to sell the property. After my year is up I have to refinance to a 30 year fixed mortgage and it costs me $3,000 to do so. In this scenario, I am ahead $12,600 after year one. At the end of year one, I have to buy the new mortgage, so I am now only up $9,600. For each additional year that I hold the house, I will pay an additional $1,400 in interest than the person who bought the house subject to. You may have done the math and figured that I had to pay an additional $1,700 per year, but remember my loan amount is only $70,000 whereas the subject to buyer has a loan amount of $85,000. We are under the assumption that the person who bought the house subject to did not, in fact, have to pay for the second insurance policy. After paying an additional $1,400 in interest per year for the remaining three years, I am still ahead of the subject to purchase by $5,400. It would take 7.85 years of us trying to sell the property before the model of subject to that I have presented would be better than my method of buying at a deeper discount and obtaining my own financing.

If I am buying a property with the purpose of reselling, it should not take me an average of 7.85 years to sell. However, if I know that I will be keeping this as a rental, and if the sellers are okay with keeping the mortgage for well over 7.85 years (I say well over 7.85 because that is just the break even point. In order for it to work better, I would have to keep it for much longer than this to become a benefit.  For more info watch the free webinar training by going to:

www.investingwiththestars.net/alan/replay

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Have you thought of creative financing?

Wholesaling houses has proven to be a quick money spinner for people in the real estate investing market. People all over the world are using creative financing to buy properties and then selling them on quickly to make a large profit within the space of a couple of days. The great thing about creative financing is that you rarely need to put in a lot of your own money to buy a house, and you can quickly build up your income through wholesaling.

Real estate investing has become a reality for thousands of people with little or no money. Imagine being able to buy a house for little or none of your own money and then selling it on to make a profit. This is exactly what wholesaling is, and investors are finding it to be a very lucrative business.

In order to wholesale a house, all you need to do is a little bit of research to find people that are motivated to sell their homes quickly. Motivated sellers typically include people who have bought a home elsewhere and need to sell quickly or people who have painful memories associated with the house such as someone who is recently divorced. Motivated sellers are often keen to sell their home for less than their original asking price, and buying such a home can prove to have a good wholesale value.

Using creative financing, you will have put little money down to purchase the home, and then you sell it on for a higher price and make an instant profit. Wholesaling houses has helped people to make money quickly and easily, and is a great way to start real estate investing.

Using creative financing is the perfect way to wholesale houses, and make a quick income. With little of your own money going into the purchase of a house; real estate investing can be a very lucrative and profitable business. The key to wholesaling a house is to sell it on quickly for a larger amount than what you bought it for, and you will quickly be on the road to making money in real estate.

The best program to learn wholesaling in my opinion is Than Merrill’s Quick Cash Wholesaling Course.  See my FREE Video here by going to www.thanmerrillwebinar.com .  Enjoy!

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Panning to get involved into commercially held real estate investment? If you are, you better keep a few things in mind. Actually there are several blunders to avoid as well. So no reasons to make delay- just get started!

Getting started

If a person gets involved into commercial arenas of real estate investment, he are some ‘must keep in mind’ things. More importantly, these things must be remembered all the times. Before you put all your eggs into one single basket of commercial arena of real estate investing, te following tips are worth browsing.

1. 1. All deals call for an initial investigation–

This is to be done prior to your closing of commercially held real estate offers or deal. It also matters that you are taking all the time you need for investigating deals coming at your ways.

You must also be taking enough time regarding due diligence. This has to do a lot with any given property under consideration for an investment. Do not even think of your chances of doing without due diligence. Because if you do so, you are actually risking wrong ends or poor deal.

2. Be a learner from mistakes

Surely, you would want to keep away from doing dumb moves as you get involved into commercially held real estate money investing. This means you must also be sure about doing some homework about browsing through the bitter mistakes of other people.

This means that as you witness other investors doing things wrong, you have to note it down in papers. You must also analyze the reasons behind it. Then you must try to consult experts for figuring out ways for avoiding these.

3. Understanding your endurance with payouts

You must also make sure some more things. The first among them is your idea about the probable duration of investment payouts. Your estimates have to be realistic. This is more important than it sounds. You may face ridiculous problems without a clear estimation about investment payouts.

Big blunders you want to avoid

Surely there are a lot of things the investor need to know as ‘to do’ list. This applies more when it comes to commercial end real estate money investments.

Blunder #1 – To ignore the market signals found locally

This is one of your largest errors ever causable. In commercially held real estate, such mistakes can really turn out to be large fatalities. Trust me here! You just cannot ignore your local market signals.

This applies all the same in cases of your investment into lucrative/promising properties. Actually your excellent opportunities may get ruined when you are doing that in the middle of a bad market situation. In that case you might loose money after all! Seeing this from the other way around, an average property in a good market situation can earn you a fortune!

Blunder #2 – Failing to do right due diligence

This is one of those sickly mistakes that may cause your ass to get fully kicked. Just face it! Taking all the time you need for the right due diligence has no other way round to it. In fact, your failure in taking enough time for appropriate due diligence can cost you a lot of trouble.

So keep your eyes open and move smart! Nancy Geils
To learn more and get my 10 CD Course go to:  www.investingwiththerealestatestars.com

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Business line of credit

Business lines of credit can be vital tools for all kinds of businesses as well as real estate investing. Having a credit facility available when you need can be very beneficial, and business lines of credit provide just that. It is the perfect way to find the short-term working capital that your business may need whether it be to upgrade products or to invest in a new venture.

Lines of credit are typically given by banks or financial institutions much in the way of a loan. Both high street banks and smaller financial institutions offer business lines of credit to their customers. One of the great benefits of having a line of credit available is that you will have the finances on hand whenever you need them. Business lines of credit may be given in several forms; including as an overdraft, as cash credit or as a loan. The finances are readily available should you need them for any reason, and an added benefit is that you will not get charged interest until you use the credit. Interest is typically only charged on what you have used, which is another advantage of using a line of credit.

Business lines of credit are often used by people who need funds to purchase extra equipment or for any seasonal work that may need completing. Real estate investors are also finding lines of credit to be a valuable asset, as it gives them the finances required to purchase homes. With a business line of credit on hand, real estate investors can easily put down a deposit on a property without using their own money which can be very handy. Investors who intend on wholesaling or flipping houses are finding business lines of credit the perfect tool. Lines of credit are not only used for deposits but can also be used for renovating houses before they are flipped on the market. Business lines of credit provide the extra cash that an investor may need, and enable them to repay and redraw money at any time they want up to their approved credit limit.

Individuals or businesses can apply for a business line of credit at their own bank or at another financial institution. Lenders may offer varying amounts of credit, as well as different interest rates making it worth researching. People all over the world are finding lines of credit an invaluable tool giving them a little bit more financial freedom in their ventures.

Business lines of credit provide people with the extra finances that they may need. The credit is easily accessible, and can be drawn out as often as needed up to the agreed credit limit. Money can be repaid and redrawn as often as you like giving businesses an added security and flexibility.  Interest is only ever charged on what you have used which is an added bonus in comparison to traditional loans. Business lines of credit are proving to be a very valuable tools to both real estate investors and companies in need of a little bit of extra cash flow.

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Getting a Government Grant

Getting government grants for school and business purposes is an exciting prospect for both companies and for individual people.  Millions of dollars are set aside each and every year for the sole reason of being given out as grants; helping thousands of people annually. For people wishing to start a new business but not having the necessary finances and for people wanting to study but not having the money to pay the school fees; government grants are providing the solution. New doors have been opened up for people, giving everybody the opportunity to progress in future endeavours that may previously have been out of reach.

Back To School

University and college fees are forever increasing, and students are falling into large debt before they even begin to experience the real world. Student loans take years to repay, and thousands of people find themselves continuously struggling to repay their schooling debts. Government grants for schooling however are different than these traditional loans and are enabling people to go back to school without the burden of debts and loans. These grants do not need to be repaid, and are there to be used for all the tuition fees.

Work Benefits

Getting a grant for business purposes is another possibility and can be the best way for an entrepreneur to begin their business life. Although business loans are often available from financial institutions, government grants for businesses are also available free of charge. There are hundreds of people who wish to open a new business or to expand with a further shop; often unable to do so because of a lack of finances. Grants can help businesses tremendously, and are available in different amounts.

Getting a Grant

Grants can be given in small amounts of a few hundred dollars up to several thousand dollars depending on the venture. Getting grants for school and business purposes is often the perfect solution for any financing aid that people may need. There is often fierce competition for grants however, so a clear and concise application form is vital. There is help available for those who need it, and the outcome is well worth it in the end.

For more information on Getting Government Grants go to:  www.grantsnow400.com

Nancy Geils

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Special free gift…something you must read!
www.investingwiththestars.net/growrich.htm

HI Guys and Happy Holidays to you and your Family,

Since we are not having our weekly webinar on Tuesday night due to the holiday, I wanted to give you a few recordings that you can replay while enjoying your holidays.  Also, I would like you to have a copy of ‘Think and Grow Rich’.  If you have not read it, it is a great read to start the New Year!  Go below and click on the recording for each speaker you would like to hear.  Again, I wish you Happy Holidays and we are going to have a great New Year with more All Star Expert Speakers Lined up on “Investing with the Stars”.  Also, I have convinced my husband, who is an expert on Rehab and Flipping houses, to do a 6 week workshop coming in January!  Watch for more info on that!  (p.s. if you want more details of the Rehab and Flipping Workshop you can email me at nancygeils@gmail.com and I will give you the prelaunch info!!!

Listen to these Interviews!
Darius Bazarandeh -  Asset Protection
and Saving Taxes – don’t put this
off, you need to get your business
structured to protect you against
lawsuits and to save taxes…

Click here now:

===>  http://tinyurl.com/yc98adn

Andy Heller – Finding and Buying
‘Real Estate Owned’ REOs (this stragegy
is becoming the best strategy even over
Short Sales in today’s market – there
are thousands of REOs and many more
to come-Learn how to capitalize on this
new wave of foreclosures!

Click here to listen again!

===   http://tinyurl.com/yj3sfll

Than Merrill – ‘Wholesaling for Quick Cash’
I know Than personally because he is
also from Connecticut and he is a Master
at wholesaling properties and teaching
you how to do it quickly! If you are just beginning and need some Quick Cash…Listen here:
and listen to him, he knows his stuff!

Click here to listen:

===>   http://tinyurl.com/yl5tc7y

These 3 strategies can make YOU a lot of
MONEY in this current real estate
market.  I recommend all 3 of these EXPERTS very
highly! Take some time over the holiday to
listen to these replays again, you’ll be
glad you did.

p.s  Go ahead and Grab your copy of my
New Book Called ‘Finding Cash For Your
Real Estate Deals’ Just click below:
This book has an excellent strategy
for finding business lines of credit
and business credit cards to fund
your down payments and deals!

===>   www.FindCashForRealEstate.com

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