Please this video - very good...
Saturday, May 24, 2008
Friday, May 23, 2008
New Private Lending Tips....
Guys:
We just posted a new article on tips and ways to raise private lenders - pleased go to and tell me what you think.
Go to http://www.squidoo.com/PrivateLendingMagic
Thanks
Mike
We just posted a new article on tips and ways to raise private lenders - pleased go to and tell me what you think.
Go to http://www.squidoo.com/PrivateLendingMagic
Thanks
Mike
Sunday, May 18, 2008
The Time Has Come - Rental Markets Are Back!!!
For the last several years I have been saying that the foreclosure epidemic would be a good thing for real estate investors. Real estate investors have such a great opportunity when foreclosure rates go up. What opportunity exists? Real Estate investors can buy foreclosures, of course, and they can also rent to the displaced owners of the foreclosures. They now have “tenants” for their new purchases and their existing properties.
For the most part, from 2000 until early 2007, if you could fog a mirror you could qualify for a mortgage. This easy qualification process lead to two things: 1) The tenant base decreased causing higher vacancy rates and lower rental rates and 2) it put so many people in a situation they couldn’t afford. Many people had no savings and barely squeezed into a home with minimal down. They couldn’t afford any blip in their lives or with their new home. Unfortunately, things happen in life. \ Also, many people got put into the interest only adjustable rate mortgages. They qualified when it was interest only or a negative amortization loan, but when it adjusted, they found themselves way over their heads financially.
The Wall Street Journal published an article on May 3, 2008 that addressed how rental homes are now going for a premium in many markets around the country. Many home owners that have gone through recent foreclosure are having a difficult time finding a rental home. There is now competition of renters added to the market.
The article also addressed how many renters are looking for a new place due to the foreclosure on the home they were renting (they didn’t know their landlord was in foreclosure). Many of them have little or no time to move. Some have only a few days notice, as they did not know the owner was loosing the property.
I have waited for this time with baited breath. I, personally, am excited that lending requirements have tightened. It keeps out many investors that can’t qualify for a loan, AND it keeps many of my tenants renting from me. For investors that can’t qualify for a loan, my lease option and subject to strategies will be key. Over time when the rental rates stabilize, it will drive up property values for landlords/investors. What does this mean for you?
BUY NOW!!!! What are you waiting for?
Wendy Patton
For the most part, from 2000 until early 2007, if you could fog a mirror you could qualify for a mortgage. This easy qualification process lead to two things: 1) The tenant base decreased causing higher vacancy rates and lower rental rates and 2) it put so many people in a situation they couldn’t afford. Many people had no savings and barely squeezed into a home with minimal down. They couldn’t afford any blip in their lives or with their new home. Unfortunately, things happen in life. \ Also, many people got put into the interest only adjustable rate mortgages. They qualified when it was interest only or a negative amortization loan, but when it adjusted, they found themselves way over their heads financially.
The Wall Street Journal published an article on May 3, 2008 that addressed how rental homes are now going for a premium in many markets around the country. Many home owners that have gone through recent foreclosure are having a difficult time finding a rental home. There is now competition of renters added to the market.
The article also addressed how many renters are looking for a new place due to the foreclosure on the home they were renting (they didn’t know their landlord was in foreclosure). Many of them have little or no time to move. Some have only a few days notice, as they did not know the owner was loosing the property.
I have waited for this time with baited breath. I, personally, am excited that lending requirements have tightened. It keeps out many investors that can’t qualify for a loan, AND it keeps many of my tenants renting from me. For investors that can’t qualify for a loan, my lease option and subject to strategies will be key. Over time when the rental rates stabilize, it will drive up property values for landlords/investors. What does this mean for you?
BUY NOW!!!! What are you waiting for?
Wendy Patton
Saturday, May 17, 2008
Is the Bottom in for the Real Estate Market?
The US real estate market has been in free fall mode for so long, that many investors and homeowners have been looking for signs the bleeding is slowing down. While it's no guarantee that the market is yet ready to turn around, there is room for cautious optimism with the news that sales of existing homes unexpectedly rebounded in February. True, 2.9% isn't wonderful news; however, for an industry that has seen precious little good news, it's almost cause for dancing in the street.
According to the National Association of Realtors, this equates to a seasonally adjusted annual rate of 5.03 million housing units. In case you're not familiar with the definition of the word “units” – that's either a single-family home or a condominium.
Your reaction to these figures is probably related to the area of the country in which you live, because existing home sales continue their steep slide on the West Coast, following another 1.1% drop. Fortunately, the West Coast is the only region of the country that actually saw a decrease. Sales were up 2.1% and 2.5% in the South and Midwest, respectively. But the Northeast is the star, surging by an astonishing 11.3%.
As welcome as this news is, new home sales figures once again posted a loss for the fourth straight month to the lowest level since 1995.
I think that these figures will probably run hot and cold for awhile, but if you're investing – or thinking about it – the next year and a half or so represents a tremendous opportunity for any investor willing and able to capitalize on this unprecedented chance to buy property at rock bottom prices.
The reason for this thinking is because home prices for the moment are continuing to fall. The median price of a home is down to about $244,000 – down almost 3% in a year. Right now, about 8 million homeowners have negative equity. If prices drop another 10% as most analysts seem to think they will, that would push that figure up to 16 million.
With so many people with negative equity, people are going to continue walking away from their homes – leaving the door wide open for investors with ready access to cash to waltz in and reap the rewards.
Whether you're doing short sales or pre-foreclosures – whatever your specific market niche really doesn't matter – if you have the cash you can put these deals together. You might have the means to get some cash from your local bank, but increasingly lenders are tightening their purse strings and making it more difficult to borrow money.
If you don't have access to a pool of private money, it would be in your best interest to develop a pile of cash you can tap into at a moment's notice. When you see a hot property you can get at a great price, you have to be able to pull the trigger and move on it quickly, or you run the risk of losing it to an investor who can.
To learn more about how you can build a list of private money lenders, click here.
About the Author:Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, Pa and creator of the Private Lender PowerPoint Presentation Kit. This kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your business. To learn more about this powerful step-by-step kit and receive your FREE Real Estate Wealth Newsletter go to http://realestatewealthtoday.com/.
According to the National Association of Realtors, this equates to a seasonally adjusted annual rate of 5.03 million housing units. In case you're not familiar with the definition of the word “units” – that's either a single-family home or a condominium.
Your reaction to these figures is probably related to the area of the country in which you live, because existing home sales continue their steep slide on the West Coast, following another 1.1% drop. Fortunately, the West Coast is the only region of the country that actually saw a decrease. Sales were up 2.1% and 2.5% in the South and Midwest, respectively. But the Northeast is the star, surging by an astonishing 11.3%.
As welcome as this news is, new home sales figures once again posted a loss for the fourth straight month to the lowest level since 1995.
I think that these figures will probably run hot and cold for awhile, but if you're investing – or thinking about it – the next year and a half or so represents a tremendous opportunity for any investor willing and able to capitalize on this unprecedented chance to buy property at rock bottom prices.
The reason for this thinking is because home prices for the moment are continuing to fall. The median price of a home is down to about $244,000 – down almost 3% in a year. Right now, about 8 million homeowners have negative equity. If prices drop another 10% as most analysts seem to think they will, that would push that figure up to 16 million.
With so many people with negative equity, people are going to continue walking away from their homes – leaving the door wide open for investors with ready access to cash to waltz in and reap the rewards.
Whether you're doing short sales or pre-foreclosures – whatever your specific market niche really doesn't matter – if you have the cash you can put these deals together. You might have the means to get some cash from your local bank, but increasingly lenders are tightening their purse strings and making it more difficult to borrow money.
If you don't have access to a pool of private money, it would be in your best interest to develop a pile of cash you can tap into at a moment's notice. When you see a hot property you can get at a great price, you have to be able to pull the trigger and move on it quickly, or you run the risk of losing it to an investor who can.
To learn more about how you can build a list of private money lenders, click here.
About the Author:Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, Pa and creator of the Private Lender PowerPoint Presentation Kit. This kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your business. To learn more about this powerful step-by-step kit and receive your FREE Real Estate Wealth Newsletter go to http://realestatewealthtoday.com/.
Sunday, May 4, 2008
High Return Investments With Low Risks Is Possible If You Use Private Lending
Higher returns require higher risks. You've probably heard that saying before. Well, the problem is that it's just not true in all cases. With the stock and bond market, that general statement may be true. But with private lending, that statement is false.
Here are three examples that demonstrate that you can have solid security and solid returns in the same investment.
1. Private lenders base their decisions on the asset first. Private lending is also called asset backed lending. The asset is the foundation that the investment is built upon. Most private lenders choose to use real estate as the asset that collateralizes their lending. So if you have a great asset and you structure your investment properly, your risk is substantially reduced.
2. Private lending gives you the protection of a bondholder and the returns of a stockholder. You can have greater protection than stocks while earning a higher return than most people think is possible.
3. Private lenders usually earn a better rate of return than institutions because they meet needs that a bank typically will not. For example, a real estate investor may find a property that they can purchase below market value but they may have to act quickly to secure the opportunity.
When you solve problems for other people, you gain more rewards than those who do not realize the opportunity. The key to private lending is following a system that recognizes opportunities and protects your assets. You can have high returns with high security.
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