Hurdles To Brace For When Buying Investment Properties

Posted on: February 13, 2011

Categories: Buy, Investors, Other Articles, Property Management, Things To Consider

Author: lbuen

The Lure of Buying Investment Properties

Fed up with the mercurial temperament of the stock market? Multitudes of people have instead been drawn to buying investment properties that can provide cash flow for years to come in the form of rental income. The many landlords enjoying semi-retirement funded by their steady streams of income from their rental properties indicate the bankable rewards of investing in the real estate. However, it also has its share of hurdles that any investor must be aware of and brace for.

The Setbacks of Buying Investment Properties
Vacancies and Funding Mortgage Payments From Somewhere Else

The promised steady stream of income from your rental property may not be as steady as you may have hoped for because there will be times when you will experience vacancies. Buying investment… Read the rest

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Section 8 Tenants – 4 Reasons For Landlords To Let Them In

Posted on: January 28, 2011

Categories: Investors, Property Management, Things To Consider

Author: lbuen

Are you walking on eggshells when wooing delinquent tenants to settle their dues lest they might vandalize your rental property? Are you hesitant to acquire and rent out low-cost rental units because you worry about managing problem tenants that commonly rent such houses? You may want to consider taking in Section 8 tenants.

What Are Section 8 Tenants?

These are low-income families who qualify to avail of the Section 8 housing assistance provided by the US Department of Housing and Urban Development. They are given Section 8 vouchers as tokens to their entitlement to such subsidy. Many of these Section 8 Tenants are single mothers with children while a handful of them are grandmothers with grandchildren.

Why Accommodate Section 8 Tenants?

Read the rest

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4 Great Reasons Why REIs Must Do A Green Rehab

Posted on: January 12, 2011

Categories: Fix, Ideas, Investors, Property Management, Things To Consider

Author: lbuen


Image by lawtonchiles via Flickr

With the growing social awareness of the need to care for the environment, emphasizing the importance of  green living to parry climate change, every rehabber may have toyed the idea of doing a green rehab. So what’s holding you back from jumping on the green bandwagon?

While you think of some excuses why you cannot get involved in green rehab, here is a list of why you should:

1. Let’s Begin With the Obvious: Green Rehab to Help Minimize Climate Change

It is the conscientious thing to do. Since this opens up to a larger topic, and perhaps may spark several arguments, let me leave it to Greenpeace and other tree huggers to expound on it.

2. Do Green Rehab to Cash In on the Growing But Untapped Green Market

The… Read the rest

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Where to Source Your Rehab Funding

Posted on: January 10, 2011

Categories: Buy, Fix, Investors, Property Management, Things To Consider

Author: lbuen

Avalanche of Money Lenders Replaces Customary Lunch with Private Investors

Luncheons with a coterie of investors with deep pockets used to be the avenue that lead real estate investors to the Land of Ready Cash. Today, however, more and more private lending companies are purveying rehab loans to rehabbers and real estate investors who want to renovate their rental properties. The government is also offering rehab funding with terms and conditions varying from city to city.

A real estate investor does not have to go far to look for a rehab loan. Skipping the need for leafing through the menu of the restaurant where private investors’ money were used to be raised, a cash-hungry real estate investor can instead browse the Internet for a list of lenders for this kind of loan. For the newbie, however, selecting the lenders… Read the rest

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Some Hard Facts You Must Know About Hard Money Lenders

Posted on: January 9, 2011

Categories: Buy, Investors, Things To Consider

Author: lbuen

Some Hard Facts You Must Know About Hard Money Lenders

If banks are your only source of funding for your real estate deals, then you must be moving slow and missing on great real estate deals. A fledgling real estate investor may do well if he includes in his network a number of hard money lenders. These are private lenders, who could be private individuals or lending companies, who provide short-term loans to fund real estate deals. The loan amount granted will depend on the value of the property in question, which is also put up as collateral. Despite their appellation, they can, in several ways, make a real estate investor’s life easy.

Hard Money Lenders for the Fast and the Serious

In real estate investing, it pays to move fast. And the fuel to your speed is liquidity. If cash is at your fingertips, you can attract great… Read the rest

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Shhhh…Underground Advice: How to Claim the Homestead Exemption as a Landlord

Posted on: November 20, 2010

Categories: Property Management, Things To Consider

Author: buyfixandprofit

Shhhh…Underground Advice: How to Claim the Homestead Exemption as a Landlord

The landlord was planning on raising the rents on his properties in order to offset his additional costs, until he discovered that his county allows for tenants to claim the homestead exemption. The homestead exemption reduces the assessed value of a property, which in turn lowers the property taxes. So instead of raising the tenant’s rents, he worked with them to have them claim the homestead exemption, which in turn would maintain his cash flows.

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Foreclosure Defense Strategies for Real Estate Investors

Posted on: June 8, 2010

Categories: How To Sell, Investors, Procedures, Things To Consider

Author: buyfixandprofit

Foreclosure Defense Strategies for Real Estate Investors

Foreclosure defense is a legal strategy in which a homeowner retains the services of an attorney to complete a forensic loan audit of all the documents associated with the mortgage. The attorney is looking for fraud and predatory lending violations than can then be used to aggressively counter sue the bank for damages and in return force the bank to negotiate with the homeowner or investor. Remarkably, on average over 80% of all residential loans since 2003 contain such violations. During the housing boom, banks could not push new mortgages through their system fast enough to satisfy the appetite for profits by Wall Street.

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Bankruptcy and the Real Estate Investor – BK Doesn’t Solve Everything

Posted on: June 5, 2010

Categories: Investors, Procedures, Things To Consider

Author: buyfixandprofit

Bankruptcy and the Real Estate Investor – BK Doesn’t Solve Everything

Bankruptcy alone does not relinquish ownership of the property. The bank has to legally foreclosure on the investor in order to take back the property. This means the investor could actually keep collecting any rents received until the property is sold at auction assuming the bank does not assume the rents as they are entitled to. The main thing bankruptcy accomplishes is that it eliminates the right of the lender to collect a deficiency judgment from the investor when the property sells for less than its loan amount.

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Is Your Landlord Insurance Policy Eating Away at your Profits?

Posted on: March 13, 2010

Categories: Other Articles, Things To Consider

Author: buyfixandprofit

Is Your Landlord Insurance Policy Eating Away at your Profits?

When was the last time you shopped around for quotes on your landlord policies?  Not often?  Not once since getting your policy?  I have personally seen insurance costs all over the board over the past 10 years depending on the financial stability of the company usually.  It costs you nothing to have an insurance broker quote all of your policies to see how competitive your current rates are.  If you have several properties in you rental portfolio it can be real easy for you to realize significant savings.

Is there Insurance Broker Loyalty?

I was using the same reliable insurance broker for the past 6 years with no issues to note.  She was fast, thorough, knowledgeable and always returned my phone calls or e-mails the same day. So why would I switch when finding a competent real estate professional nowadays… Read the rest

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FHA Suspends 90-Day Flip Rule

Posted on: January 21, 2010

Categories: How To Sell, Profit, Things To Consider

Author: buyfixandprofit

FHA Suspends 90-Day Flip Rule

FHA Admits They are Hindering the Real Estate Recovery

The FHA has finally come to the realization that many investors buying and fixing foreclosures are taking much less than 90-days to rehab their homes.  Good rehabbers can actually have an ugly house ready for occupancy less than 30 days after its purchase.  So beginning February 1, 2010, the FHA is suspending the 90-day resale restriction imposed on sellers selling to buyers using FHA insured financing.

In order to re-sell a home to a FHA buyer in under 90 days, the following conditions must be met.

This chart was created using the information listed in the Waiver of Requirements of 24CFR 203.37a(b)(2) which is located on the HUD website at http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf.

Here are two more points not listed in the chart.

1. The 90-days flip restriction waiver will expire one… Read the rest

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