Turn the Television on any Sunday morning and you’ll find yourself in the middle of a “how to buy real estate” infomercial. Can you really buy a house with no down payment? Can you really make thousands or millions of dollars buying real estate? Of course the answer is “yes” and “no”. The real question is, are you willing to pay anywhere from $500 to $8000 for the information, classes and hotline? Most important are you self -disciplined enough to follow the program?

Before you spend money on these expensive programs, here are my top ten “no money down” ways to buy real estate. If you’re self disciplined and willing to hear the word “no” many times before you get a “yes”, then maybe you can buy a house without a down payment.

1. First is to check out the many new zero down programs now available from lenders. Especially if you’re a fist time buyer. Also FHA and VA have loans that may not be zero down, but are very close.

2. Borrow money for the down payment – Borrow the money from family, friends or a business partner at a high interest rate or a percentage of the profit when the property is sold

3. Raise the price and lower the terms – Offer the seller more than he is asking provided he is willing to accept the down payment in the form of a note. If the seller is asking $150,000 with $15,000 down and willing to carry the balance of $135,000. Try offering $155,000 in the form of a promissory not instead of cash. The seller gets a little more money for the additional risk.

4. Borrow against a life insurance policy – Many life insurance policy’s let you borrow against the policy for the purpose of investing in real estate or other investments.

5. Use other property as collateral – Create a note on existing property that you or a partner own and use it as the down payment for the property you are buying.

6. Home equity loan – Home equity loans are generally easy to qualify for as long as there is adequate equity in the property.

7. Seller refinance – Have the seller refinance the property, receiving the cash he needs from the proceeds of the new loan, the buyer gives the seller a note for the balance of the seller’s equity.

8. Find an investor – There are many people who have money but no time. Their current profession keeps them too busy. Work out a deal where they put up the money and you split the profits when you sell.

9. Lease with option to purchase – Lease a property with the right to buy it at some future time. Provide for the rental payment to be credited towards the down payment if you decide to exercise your option. Visit our site today we have homes that are currently available under the lease option program.

10. Give them something they need – If the seller is planning to purchase something in the future that you own or can buy, use it as a trade. This can be anything such as furniture, boat or motor home.

My goal is to educate the consumer on one of the largest investments you may ever make. Feel free to submit all your questions and I will respond within 48 hours.

www.eotmrealestategroup.com

Hello fellow Active Rain Members! We have a Real Estate Show airing on Sunday, June 22nd at 9pm est. and would like to invite Realtors and other mortgage professionals to be a guest on our Real Estate panel. These segments are geared towards educating consumers on all areas of Real Estate. If you have a niche, information to share, new programs, etc. and would like to join us please call in @ 718.664.6543. The show starts promptly at 9pm est. There will also be an opportunity for you to advertise your website and other contact information.

We have also just recently launched our H.O.M.E. Initiative whereas we are helping individuals and families that were directly effected by the mortgage crisis. You can find more info on this new effort by visiting http://eotmrealestategroup.com/homeinitiative.aspx

Contact me if you are interested in joining the Real Estate segment.

www.blogtalkradio.com/entrepreneursonthemove

Or Tenant Placement??

Visit Our Site Today -> www.eotmrealestategroup.com




EOTM Real Estate Group

A highly motivated team of experienced industry professionals; EOTM Property Management Services is a full service single family property management company. Our ongoing commitment to providing unsurpassed resident services and maintaining attractive, supportive living environments assures optimal success of the assets entrusted in our care. Our proactive cutting edge approach to on-site operations coupled with advanced reporting technologies provide our residents and business partners alike with exceptional living and investing experiences.

Contact us today for a free market analysis of your most prized investment!

Still Trying To Figure Out The Best Time To Purchase Investment Properties?

I am a strong advocate that now is the time to buy investments properties in the markets where EOTM Properties manages homes. I am putting my money where my mouth is; I am actively seeking buying opportunities right now and have recently closed on two purchases. Two purchases might not seem like a big deal, but I work with what I have and it takes more cash to close on investment homes at this time.

The reason I feel urgency is because now is a lull in the market and when the market picks up again there will be many things changing so you will see a completely different landscape. To qualify this, you need to understand that I look for buying opportunities which I will hold for 5-10 years, I do not look for "buy and flip" situations in our markets. Here are points to consider....

1) It is much better to be a landlord when vacancy rates are low. Vacancy rates are below 5% in all of our markets, a rate which we consider full occupancy. This low vacancy is driving up rents and causing people to adapt their behavior by being better tenants. Because there are fewer units available tenants are less demanding regarding aesthetic repairs and are more likely to be a better partner in taking care of the house they are renting.

The reasons for the low vacancy rate are tied to these factors:

• Buyers are sitting on the fence. They see no need to jump into a market to protect their future because they believe the house they see available today will be available in the future at near the same price.
• People are less sure about their future, so they are more likely to rent to insure flexibility to move to a new job.
• The entry requirement to home ownership is higher, both higher down payments and more stringent credit requirements are making hard work for potential buyers
• There has been a huge decrease in new construction of single family residences. New construction has had more margins available to attract/entice renters. Now that the new home builders have slowed to a standstill, so have their marketing arms which lured renters away from where they should be. Remember, some people should be renters - home ownership is not right for everybody.

2) Investors need to put 20% down right now. There is money available, but lenders want to see better credit and they want you to have some skin in the game. This money requirement is blocking out amateur investors who shouldn't be in the market now and making sellers more pliable. If you have money to put down you should be using it now!

3) Interest rates are at an attractive level. Rates are not at all time lows, but my last two mortgages were at 6%, a very reasonable cost of money - especially since these interest payments are deductible! The Federal Reserve has lowered short term rates, but my money people are telling me that mortgages are not expected to drop significantly lower and may actually rise. This is an important consideration since one of the important benefits of buying real estate investments is the opportunity for leverage, so higher interest rates would diminish the benefit of this leverage. I always buy on 30 year, fixed rate mortgages, and since I plan to hold my rental properties 5-10 years the short term benefits of short term ARM's does not compensate for the risk of higher mortgage costs in the future (for me).

4) The markets where EOTM Properties operates are markets of continued population growth. This is an important consideration because incoming people will need homes! Over the next 30 years the biggest threat to success in our markets is something strange like a "bird flu" which would wipe out 50% of the population. Barring a catastrophic event like bird flu you should see continued migration of jobs and people into areas of the country that have a lower cost of living.

• High oil prices should accelerate migration to places like Atlanta, Athens and Florida. As transportation costs rise and consume a greater part of someone’s budget, people will not be able to afford to pay $2,000/month for the same house they would pay $1,000/month in Macon. This is true whether they are renters or buyers.
• There will be a bottom in the markets on the coasts which should still leave our Midwest and eastern states a significant cost advantage for businesses
• Business will continue to make changes to allow profitability, meaning they should do again what they did in the last great recession of the 1970's - move to southern states that provide the most efficient costs
• The world is flat! An information based economy can put their employees where they cost less. This does not always mean sending a job to India, it may mean sending a job to Atlanta! As India and China grow their costs advantages diminish, but there is still a significant cost savings by moving a job from New York or San Francisco to Atlanta.

5) Future costs for new construction should be much higher! The current downturn will not last forever. When the economy picks up again the entry point for new homes will be much higher. The increases in home values on the nation's coasts were primarily because of increases in land values, the next increase in home value will be because of the increase in the value of the actual product. This works well for the southern states since most of what you are paying for is the cost of the structure, not the cost of the land.

• Higher oil costs will drive up the costs of all the materials for new construction. If the economy picks up again in 3 years the materials cost of a starter home should be 10%-20% higher then they are right now, even though the builder will not be making any more money. The costs to process, manufacture and transport raw building materials will be impacted by the cost of energy as well as worldwide competition for these materials.
• Labor costs should increase as well. People will need to make more just to get to work, and with the tightening of our borders as demanded by national security you should expect the building trades to be exponentially affected. This may add another 10%-20% to the cost of new construction.
• All these factors make it even more likely that people will migrate to areas where they can create affordable housing, but the new house that may be available for $140,000 today will cost $180,000 in 2011 just because of the costs of labor and materials.

6) What new construction is occurring? If you follow current "new home construction" reports you may have heard that new home construction was up last quarter and that we may be at the end of the cycle. If you dig deeper you will find out that the reason for the uptick is because these reports consider apartment construction as "new home construction".

• There was a significant increase in apartments because the people with the access (money) to perform the in-depth research have realized that more and more people will be renting.
• In April of 2008 the US Commerce department report that apartment building jumped by 40.5 percent, to a seasonally adjusted annual rate of 326,000 units. The larger single-family sector dropped by 1.7 percent, to an annual rate of 692,000 units.

7) Where else are you going to put your money?

• Do you really feel our stock market will perform at a high level over the next ten years or do you feel unsure about the ability of Corporate America to respond to changing worldwide economic issues and deliver consistent profits?
• Do you put your money in CD's (now earning 1%-4%).
• Do you put your money in high earning AAA bonds earning 7%-10% (remember that the sub prime real estate loans were rolled into investment vehicles rated as A, AA and AAA).

8) This is a business for people with money and time! These are my personal opinions and there are others who say you can do this with nothing down, but if you are not bringing anything to the table why do you expect to get anything in return.

• It does not take a lot of money, but you should not be doing this with the only money you have and you should not be borrowing to use for a down payment.
• If you can put 20% down you should be able to find a home where your costs are covered and you do not have to reinvest additional funds as your costs over the first five years should be covered by rental incomes
• Anyone with over $500,000 in assets should have 20%-50% of this invested in real estate
• Take $100,000 and invest it in three homes worth $450,000 total. You will have $360,000 of loans on real estate worth $450,000. After ten years the initial $100,000 investment should be worth $300,000 based on growth in the homes values at 3%/year and the benefit of your tenants paying down your loans. You will now have $300,000 worth of loans on real estate worth over $600,00. This scenario turns $100,000 into $300,000 in ten years.
• You should not expect to touch you investments for 10 years. If you need the money to live off now, then do not go to real estate. However, if you have just retired at 65 and know what you need for the next ten years and still have money left, then this is a good conservative plan for having extra money at age 75. Many people are living longer than expected, so this is a way to cover your bets so you can have money available for those unexpected extra years!

9) No - we are no longer in the "turn and burn" glory years where you buy a house in Los Angeles or a condo in Atlanta with $5,000 down and sell it for a $50,000 profit the same day you close. If you want that type of fun, go buy gold futures on leverage. For investors with a 5-10 year view - you should be looking at residential real estate!

Our goal is to educate you on one of the greatest investments you will ever make. Feel free to contact me with any questions, comments or concerns regarding this blog.

A new breed of lease purchase home buying programs are springing up like daisies and they couldn't be sprouting at a better time.

With current mortgage forecasts being unfavorable it’s not surprising lease options today are gaining favor.

Lease Purchase Homes is a lease combined with an option to purchase the property within a specified period, usually from 1 to 3 years. The borrower pays an option fee, 1% to 5% of the price which is credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the rent premium. The option fee is typically charged in exchange for taking the property off the market during the lease and is only a fraction of what a down payment would be.

Lease purchases are a wonderful alternative for people who would like to purchase a home right now, but may need to build up their credit rating or just needing a little more time to acquire a down payment. EOTM Properties has a great deal of rent to own and lease option homes available as well as regular homes for rent in the Atlanta & Surrounding areas.

Below are a few common Lease to Purchase Questions that we hope you find helpful. Keep in mind that you can submit all your lease option questions to info@eotmrealestategroup.com , and we will respond within 48 hours.

1. So what exactly does rent to own or a lease purchase entail?

A standard rental lease allows you to live in the home and there are usually associated move-in expenses such as a deposit and/or security deposit. With lease purchase homes or lease option homes, the "option" agreement gives you the right to purchase the rental home within a certain period of time at an agreed upon price. There is also usually an initial "option" amount due upon signing (similar to a rental deposit) and a monthly additionally payment which applies to the purchase price of the lease option home.

2. I want to buy a home, but not sure if I want to make a commitment because of the market. What should I do?

It is understandable to be reluctant considering the market woes, but consider a lease-option as a long engagement without the commitment. You don't have to commit to the purchase of the house at the end of the lease period and can walk away if prices have declined or simply if the "chemistry" with the house wasn't right.

3. Why should I buy through a rent to own program?

Buying a lease option home through a rent to own lease is one way to save for a down payment while you get to enjoy living in the house for lease option purchase. But be sure to fully understand this type of agreement as you must be willing to see the option all the way through and make your payments on time or you could risk losing the right to purchase the home and any additional option amounts you paid.

4. How do I qualify for a lease option home?

The number one qualification is a sincere desire to own a home of your own and a firm commitment to follow through the entire process. We are dedicated to helping our clients understand the entire process and customizing the right plan to fit their needs. Our Professional Group of Mortgage Advisors work directly with you to get a clear plan on what it will take to position yourself for a mortgage at the end of the lease term. This may entail correcting credit issues, pay off bills, save for a down payment, etc. This process can be started by filling out a standard rental application. Get a jump start today.

5. What types of homes do you have available as a lease to option?

We usually have several homes to choose from that are posted on our website. They are homes in great neighborhoods with assorted amenities. If there is not one that meets your needs, we can document the type, location and price of home you are looking for and contact you if one similar becomes available.

Our goal is to educate the Consumer on one of the largest purchases they will ever make. Contact us today to get started on the road to homeownership.

www.eotmrealestategroup.com

Mortgage Meltdown Causing African Americans to Experience Greatest Loss in U.S. History

Knowledge is Power, Empower your Mind…

A new report has predicted the subprime mortgage crisis will cause African Americans to lose up to $213 billion, leading to the greatest loss of wealth in modern U.S. history.

The figure appears in a new report from United for a Fair Economy called “Foreclosed: The State of the Dream 2008.” The group accuses mortgage lenders of deliberately targeting the poor and people of color with high-cost loans. Reports show racial bias of subprime mortgage lenders account for nearly double the wealth losses for people of color compared to whites.

Foreclosed: The State of the Dream 2008 is available online at http://www.faireconomy.org/dream.

This crisis we all find ourselves in has been devastating for so many families and has touched almost everyone around us in some way or form. As I sat and watched the celebrations for the 79^th anniversary of the birth of Martin Luther King, Jr., I thought, how ironic… considering King’s dream consisted of Economic stability and opportunity for everyone which is bound up with homeownership. So many of us lived by that philosophy. We wanted a piece of the American Dream, most got it…but not the right way.

Some people feel that this is the direct result of cold-blooded targeting of people of color, and low-income people in general, by the subprime mortgage industry. As mortgages go into foreclosure, people move out, houses are boarded up, crime and fires increase, neighboring properties are devalued, and the tax base erodes.

We have lost so much in this mortgage crisis, but we can build…starting by taking responsibilities of our actions, educating ourselves on all aspects of mortgage loans, especially the ones we are planning on getting. Understanding our credit profile and predatory lending are just a couple things we can do to turn these unfortunate circumstances around.

There has already been major talk regarding the restructuring of the industry and some things have already been put in place but we have to empower our minds so we can make better decisions financially in the future.

In the midst of this crisis, EOTM Real Estate group created a new program called the H.O.M.E. initiative, which is dedicated to helping those homeowners that were directly affected by the mortgage meltdown. Launching programs and seminars whereas these consumers can get back on track to homeownership being educated on the process along the way.

Accelerating Positive Change In The Mortgage Industry

EOTM Real Estate Group is stepping up to the plate. Taking responsibility for having played a part in making the Real Estate/Mortgage Industry what it is today.

EOTM Real Estate Group’s community building initiative is to right a wrong, so to speak. Creating hope, sooner rather than later. Building stronger building blocks, the kind that will withstand storms and leave a legacy for our children. An initiative that Dr. Martin Luther King Jr., could appreciate….an initiative that is needed.

Find more info on this new initiative by visiting http://eotmrealestategroup.com/homeinitiative.aspx

Real estate has created more self made millionaires than literally any other investment available in today's society. Whether you are looking to purchase rental properties, or you are looking to rehab properties for quick profit - real estate investing can put profit in your pocket.

With the decline of mutual funds and constant fluctuation in the stock market, it is more apparent now than ever that real estate is a much more desired investment.

There are several reasons why investment properties are the best investment out there.

1. Above Average Returns - When compared to stocks, bonds, and money market accounts, real estate is by far the most profitable investment. What kind of return is 2% - 7% (not a very good one). With real estate you can invest a small amount of your own capital while reaping large rewards.

Equity is the difference between what you owe on a property and what the property is worth. Equity may be accessed when you sell a property or when you refinance the property. It may be used to pay off higher interest loans, to reinvest, or any other reason you see fit.

If you buy the right property for the right price you should have equity the day you buy it.

Over time real estate goes up in value. In recent years the value of real estate has increased at dramatic rates. Buy a property low today and receive equity through time.

If you are purchasing a rental property one of the major considerations you must take into account is the amount of cash flow this property generates. This is the difference between how much this property brings in each month and the amount of money the property costs you per month to own and operate. A good rental will pay for itself while putting extra cash into the owners pocket each month.

Real estate provides many tax benefits that include tax write offs, business expenses, value appreciation, tax depreciation, tax shelters, IRA benefits, tax exchanges, etc... Consult an experienced real estate tax accountant to see what benefits you can take advantage of.

2. Equity - Equity is the difference between what you owe on a property and what the property is worth. Equity may be accessed when you sell a property or when you refinance the property. It may be used to pay off higher interest loans, to reinvest, or any other reason you see fit.

If you buy the right property for the right price you should have equity the day you buy it.

Over time real estate goes up in value. In recent years the value of real estate has increased at dramatic rates. Buy a property low today and receive equity through time.

If you are purchasing a rental property one of the major considerations you must take into account is the amount of cash flow this property generates. This is the difference between how much this property brings in each month and the amount of money the property costs you per month to own and operate. A good rental will pay for itself while putting extra cash into the owners pocket each month.

Real estate provides many tax benefits that include tax write offs, business expenses, value appreciation, tax depreciation, tax shelters, IRA benefits, tax exchanges, etc... Consult an experienced real estate tax accountant to see what benefits you can take advantage of.

3. Instant Equity - If you buy the right property for the right price you should have equity the day you buy it.

Over time real estate goes up in value. In recent years the value of real estate has increased at dramatic rates. Buy a property low today and receive equity through time.

If you are purchasing a rental property one of the major considerations you must take into account is the amount of cash flow this property generates. This is the difference between how much this property brings in each month and the amount of money the property costs you per month to own and operate. A good rental will pay for itself while putting extra cash into the owners pocket each month.

Real estate provides many tax benefits that include tax write offs, business expenses, value appreciation, tax depreciation, tax shelters, IRA benefits, tax exchanges, etc... Consult an experienced real estate tax accountant to see what benefits you can take advantage of.

4. Equity Build Up - Over time real estate goes up in value. In recent years the value of real estate has increased at dramatic rates. Buy a property low today and receive equity through time.

If you are purchasing a rental property one of the major considerations you must take into account is the amount of cash flow this property generates. This is the difference between how much this property brings in each month and the amount of money the property costs you per month to own and operate. A good rental will pay for itself while putting extra cash into the owners pocket each month.

Real estate provides many tax benefits that include tax write offs, business expenses, value appreciation, tax depreciation, tax shelters, IRA benefits, tax exchanges, etc... Consult an experienced real estate tax accountant to see what benefits you can take advantage of.

5. Cash Flow - f you are purchasing a rental property one of the major considerations you must take into account is the amount of cash flow this property generates. This is the difference between how much this property brings in each month and the amount of money the property costs you per month to own and operate. A good rental will pay for itself while putting extra cash into the owners pocket each month.

Real estate provides many tax benefits that include tax write offs, business expenses, value appreciation, tax depreciation, tax shelters, IRA benefits, tax exchanges, etc... Consult an experienced real estate tax accountant to see what benefits you can take advantage of.

6. Tax Reasons - Real estate provides many tax benefits that include tax write offs, business expenses, value appreciation, tax depreciation, tax shelters, IRA benefits, tax exchanges, etc... Consult an experienced real estate tax accountant to see what benefits you can take advantage of.

Next time you are looking to invest in Real Estate call on a name you can trust. EOTM Real Estate Group. www.eotmrealestategroup.com