If you as a real estate investor need Private Funds for new first mortgages, look at this article below.
You may or may not know, I train Real Estate Investors to get Private Money Marketing.
The steps to getting millions in loans are:
- Learn IRAs and Self Directed IRAs
- Learn CDs
- Learn how to get lists of people that have IRAs and CDs
- Set up a Seminar Free to All from those qualified lists
- See them 1 on 1 and offer 10% with security of being a Private 1st Mortgage Lender no riskier than 80% LTV.
- Do the paperwork and have the right clauses and CYAs.
- Close at an attorney's office.
That's it!
And keep in good communication with your private lender.
And GET THEIR FRIENDS AND RELATIVES as referrals!
For more info on getting your private lenders for all your deals, email me at team@REISkills.com
Ask for MENTORING FOR PRIVATE MONEY!
All the best in 2009,
Brian Gibbons, REI Coach
Real Estate Resurrection Begins
Hugh Bromma, Entrust Group 01.08.09,
3:45 PM ET
Sales
of new and existing homes continue to decline in the U.S., as assets of
all stripes are re-priced lower and consumers become more risk averse.
But the news in real estate is not all bad, and in some of the
hardest-hit areas, like California, Florida and Nevada, sales in some
areas have been rising in recent months.
While the national real estate figures show the country continues to
be mired in a downturn that started more than two years ago, there are
increasingly pockets of hope out there. It's true that much of the
recent uptick in real estate activity reflects distressed sales, such
as foreclosures. But the fact is that drastically lower home prices and
more attractive mortgage rates--rates are down almost a full percentage
point on a 30-year loan--are creating more buying interest, especially
in the areas that have been hurt the most.
In fact, October existing-home sales surged more than 37% in the
West, primarily because of the rise in sales in California and Nevada.
And in Florida, existing-home sales jumped 15%, the second straight
month of rising sales in the Sunshine State. Meanwhile, mortgage
applications more than doubled during the week of Thanksgiving because
of the rapid decline in rates.
Adding to the budding sense of optimism are reports that the U.S.
Treasury will look to take mortgage rates all the way down to 4.5%,
which would provide a huge boost to would-be home buyers across the
country. Of course, real estate, even more than politics, is all about
understanding the local area, which is precisely where astute investors
are finding extraordinary opportunities.
Experienced real estate investors who have been able to keep some
powder dry and understand their local markets are now able to buy
properties for 50 cents on the dollar, or even less than just a year
ago. In many cases, these are the kind of prices that represent
once-in-a-lifetime opportunities, where the downside is now very
limited and the upside is incredibly compelling.
One of the keys to finding a great real estate investment is
understanding the importance of cash flow. We recently had a client
utilize his self-directed IRA to purchase a brand new property just
outside of Los Angeles. The property, a three-bedroom, two-bath single
family home, was purchased for about $150,000, half what the exact same
home would have cost a year earlier.
The purchaser had about $60,000 in the IRA and put down about 30% of
the purchase price, making his monthly mortgage payment approximately
$1,100 per month. In this area, similar properties rent for at least
$1,400, so the property should have no problem showing positive cash
flow right from the start. In addition, if there is a pick-up in the
real estate market, the purchaser should be able to sell it outright
for a handsome profit.
This is the kind of activity we are seeing more of in what were the
hardest-hit areas. The key, of course, is having available cash--if
you're buying real estate in a self-directed retirement account, you
will need to put down 30% of the purchase price--and understanding the
unique dynamics of the market you are buying in.
As a large administrator of self-directed IRAs, we've witnessed
thousands of investors use their self-directed retirement plans to buy
properties and realize excellent returns by selling them at a later
date or renting them and allowing them to cash flow, as discussed
earlier.
If you do decide to explore some of the more downtrodden areas, do
your due diligence and understand the market in which you plan to
invest. How is the local job market there? How has the area done in
previous economic downturns? There's no substitute for knowing your
market and doing your homework.
Hubert Bromma is CEO of the Entrust Group and author of How to Invest in Real Estate with Your IRA & 401(k) and Pay Little or No Taxes, published by McGraw-Hill.
