If you are unaware, real estate investing courses are very much valuable as you start real estate investing. Real estate investing courses are a marvelous tool for real estate investors of all caliber levels. Obviously, real estate investing courses are a terrific solution to provide you with a better appreciation of the real estate investing trade. What's more, real estate investing courses are the most vital step towards becoming a profitable real estate investor.
Real estate investing courses are available as home study programs, online programs, and academies as well as other off-line classroom settings. Don't forget, the finest real estate investing courses offer access to an individual who can aid you with individual questions and concerns and that provide a systematic approach to learning fundamental information about becoming a profitable real estate investor. For this reason, the seminar real estate investing courses are far better when compared with home study or online courses due to the one-on-one or group nature and also the networking aspect. Those people and realtors who sign up for real estate investing courses are in all probability offering themselves the best opportunity to profit from real estate; either by investing in real estate personally or by providing professional educated advice as a coach.
In essence, for this reason real estate investing courses are fast becoming popular for almost all people and realtors who want to balance their portfolio for when the real estate market increases in value and provide themselves with another possible passive cash flow now and in retirement. Almost all real estate investing courses are going to explain to you the tools you will need to make your real estate business very profitable and give you multiple streams of income, real estate gains, and tax benefits. In my opinion, all these real estate investing courses, education, and books are useful in some way on your adventure in successful investing in real estate.
So talk to other real estate investors, read what they are saying on their blogs, and visit sites where real estate investors are providing their personal feedback on real estate courses.
We have many different real estate course reviews from real estate investors across the nation on our blog. We have a list of authors, mentors, gurus and their real estate courses with comments and feedback from other real estate investors.
I believe the best real estate investments in this economy are probably commercial real estate investments, more specifically multi-family, apartment buildings, mixed use and similar income producing properties purchased correctly. This is where we are currently focusing on the investing and lending side. I have been involved with real estate investing since 1998 and commercial lending since 2002. I agree with many people that residential property for rentals and holding for the long term represents a rare opportunity that many of us may only see 1, maybe 2 times in a lifetime. The average economic cycle from boom to bust is about 7 to 12 years if history is any indicator. That said, purchasing residential properties at no more than 65-70 cents on the dollar including all acquisition, repair, financing costs, etc and holding for a cycle can prove to be extremely profitable. In this market, 10-50 cents on the dollar is possible...imagine the wealth. Make no mistakes this is the shift of wealth you're heard about in your textbooks but rarely see in action. This is where, pardon the cliche, "the rich get richer and the poor get poorer." All these foreclosures were somebody's life savings and so the road to recovery will be slow. Good luck and careful investing to you!
REOs including single family, duplexes, fourplexes, and condos at 55-60% ARV in the Austin or San Antonio markets. Please visit our site for more information on how to take advantage of this offering.
Interested investors are encouraged to pre-qualify online at:
We are looking for serious real estate investor rehabbers or buyers to wholesale properties to from one our existing client's who is purchasing REO packages of SFRs, 2 to 4 Plexs, & Condos directly from banks and buliders locally. Properties are available in the Austin and San Antonio markets.
Purchase Wholesale Prices will be $75-95K per property.
Rehab/Construction Budgets will average $35-85K per property.
All properties will be offered at 55-60% with ARVs ranging from $250-375K+ retail
This opportunity is first come first serve. We are limiting the list to 30 pre-approved Investors and closing the list at our client's request at that time. This is to provide the pre-approved investors with no competition to purchase. This is also to ensure availability of inventory since our client's packages will range in size from 5 to 50 at a time as he is purchasing for his own portfolio.
Phase I
To add your name to the investor waiting list you must:
Sign a general letter of intent to purchase.
Provide pre-approval or proof of funds from a solid funding source or cash.
Show ability to refinance to permanent financing if rehab/construction needed.
No earnest money deposit is required at this time.
Phase II
A Non-Compete/Non-Disclosure (NCND) will be required.
Available properties will be released to the the Investor waiting list.
$2500 Earnest Money deposit will be required per property to secure.
Again, the Investor must have pre-approval or proof of funds from a solid funding source or cash.
Phase III
Investor closes on property contract(s) and is immediately placed back at the top of the list for the next round of opportunities. We repeat the above process.
We can also assist with rehab financing if needed.
We are looking for serious real estate investor rehabbers or buyers to wholesale properties to from one our existing client's who is purchasing REO packages of SFRs, 2 to 4 Plexs, & Condos directly from banks and buliders locally. Properties are available in the Austin and San Antonio markets.
Purchase Wholesale Prices will be $75-95K per property.
Rehab/Construction Budgets will average $35-85K per property.
All properties will be offered at 55-60% with ARVs ranging from $250-375K+ retail
This opportunity is first come first serve. We are limiting the list to 30 pre-approved Investors and closing the list at our client's request at that time. This is to provide the pre-approved investors with no competition to purchase. This is also to ensure availability of inventory since our client's packages will range in size from 5 to 50 at a time as he is purchasing for his own portfolio.
Phase I
To add your name to the investor waiting list you must:
Sign a general letter of intent to purchase.
Provide pre-approval or proof of funds from a solid funding source or cash.
Show ability to refinance to permanent financing if rehab/construction needed.
No earnest money deposit is required at this time.
Phase II
A Non-Compete/Non-Disclosure (NCND) will be required.
Available properties will be released to the the Investor waiting list.
$2500 Earnest Money deposit will be required per property to secure.
Again, the Investor must have pre-approval or proof of funds from a solid funding source or cash.
Phase III
Investor closes on property contract(s) and is immediately placed back at the top of the list for the next round of opportunities. We repeat the above process.
We can also assist with rehab financing if needed.
So many lessons can be learned in real estate. However, if you should always keep this one in the front of your mind which you should have hear before, "You make your money when you buy a property, not when you sell it." When you started as a real estate investor, or if you didn't keep this in mind, then you learned the a very difficult lesson. Sometimes the reason for making this mistake is simply that many real estate investors don't know how to correctly analyze a rehab property for investment in order to pruchase it correctly. We all would like to "snatch a deal", but first, we have to research and determine what the true market value of the investment property really is. How do you go about this?
When I am working with an investor especially if they are newer I will interview them about the property and loan they need from me. I ask questions like, "Do you know what the fair market value of the property is, and when they give me an answer, the next most obvious question for me is how they came up with that value. Here's the scary part for me, the number one answer that I usually get, (especially from newbie investors), is that they were told the market value of the property by their realtor.
Now, I don’t want to alienate any realtors. As in any line of work, there are good ones, and bad ones, but the one constant, is that they are all overly optimistic about the price that a property will get on the open market. In my experience, if your basis for analysis is on their opinions solely then it is not a very safe analysis to use.
The best way to use your realtor is to have them run "comps" (area comparables of homes that have sold in the last year) for you. You can pull "comps" yourself off the internet, but the realtor software for this is usually much more reliable. Also, sometimes it's better to see all the "comps" of a neighborhood or area then locate the properties that best match yours. This way you know you are using the right comps.
I’m sure that many investors reading this article already know this, but what is the best way to analyze these "comps"? This is another question I ask of potential private or hard money loan candidates who come to me for financing. When there is a large enough spread between what the lowest "comp" sold for, and what the highest "comp" sold for, how do you relate this to the property that you may be trying to buy?
Once again, the most common answer is scary. Most real estate investors never even bother to look at the "comps". They often take the easy way out and decide to average the numbers of the various "comps". This can give you an inaccurate number that will cause you to spend time on a deal that is not profitable for anyone. Some investors actually think this is a good idea to do this, deleting the lowest price "comp", and the highest price "comp", and averaging the rest. Bad idea! Don’t ever do this because it will cost you money in the long run for taking this shortcut. The five or six "comps" that you get should all be less than a mile from your property and each other, this way there is never a reason to not take 30 minutes to an hour of your time to review them thoroughly.
Just taking an average is a basically a bad way to analyze the true market value of the property. Realistically, in most areas of the country (especially metropolitan areas and cities), the actual market value of a property can vary significantly from even one street to the next. If you personally review each property, you can analyze them correctly and accurately establish the after repair value of your deal.
For each property that you analyze, you should consider the following criteria:
How do the properties on the "comp" block compare to the properties on the block of the investment home that you are interested in buying? If the block that the "comp" property is on, looks as though the homes are worth more or less than the homes on the desired investment property block, throw them out. These comps are no good.
Compare and contrast the physical structure and the amount of ground that the "comp" has in comparison to your investment prospect. Are they similar, or different? You’d be surprised how many times I’ve seen a single family home that was assigned the "comp" of a twin, duplex, or something else entirely. If you don’t see for yourself, you just never know.
On the "comp" itself, it lists the square footage, the amount of bedrooms, and the amount of the bathrooms that each house has. Once again, is it similar to the investment property that you might buy?
If your evaluation finds one or two "comps" that pass all these tests, you have a real basis for assigning an after repair value that makes sense and is accurate.
The minimal amount of due diligence that you put into this evaluation could end up saving you thousands of dollars, and a lot of heartache.
TVM Funding Group represents many private equity firms, lenders, and investors nationwide.
We welcome any commercial or residential loan scenario nationwide.
Unfortunately everyone thinks their way of buying investment real estate is the best. Well maybe I should say "fortunately" since when real estate is purchased incorrectly by one investor it may represent a substantial opportunity for the next investor.
However, when using rehab, private, or hard money loans to secure your investment real estate one should have some ground rules to make sure the investments is a profitable one.
There are many different basic strategies and standard techniques that most real estate investors use when analyzing properties. Before getting your self into a property, the following basic strategies and standard techniques are used to determine the worthiness of any rehab property.
Stating the obvious and please don't forget this, "Always buy the worst house in the average to above-average neighborhood." This alone keep you out of more trouble than you know.
No matter your exit strategy, which may be to "flip" properties, or to buy, fix, and hold for rental cash flow and tax benefits, and long term appreciation, it's important to be able to attract as many potential buyers, or quality potential tenants, as fast as possible. Keeping this in mind, you should consider properties on streets that are maintained properly and well kept. Believe me, I don't mean you should go to the higher end homes only and limit yourself. What you are looking for is the many subdivisions and what they call, "blue collar" areas where homeowners and tenants alike properly maintain the condition of their yard, property, and neaighborhood in general.
However, a street that has very poorly maintained homes or numerous vacancies do not particularly create a situation for a fast flip for resale and chance are they don't attact quality tenants either. Always remember that this is an investment. You take on a higher than normal risk, and a lots of extra work as a rehab investor. Regardless of how much TLC you give your rehab property, you can do nothing about the condition of your neighbor's property.
So I will say it even if you've heard it many times before, "You make your money when you buy a property, not when you sell it!"
The Purchase and Rehab Equation:
There are many different formulas that can be utilized for the successful purchase of a rehab project. If nothing else it's just plain important that you have one...period. You always need to be where you have a comfortable margin between the purchase price and the eventual resale price of an investment property. This margin will help you reach your goal and purchase a profitable investment, no matter if you have rehab budget overages, or again decide to keep the property for rental purposes and/or longer than you planned. Keeo in mind that every day that the property is not sold or rented comes right off your bottom line which eats away at your profit. The interest, taxes, insurance, and utility bills keep accumulating daliy. If you buy right then you need not fear the many surprises that go along with this business of rehabbing property and protecting your future as well as your investments.
Let's run some numbers using the Purchase and Rehab Equation:
Start with an "after repair value" (ARV) for your potential property. (Get your realtor to provide you with comparable sales or CMA report. Choose the property that has a street that is most similar to your house's street, and a floorplan that is closest to your house's floorplan or square footage, and then compare the structure, amount of bedrooms and bathrooms that are all listed on the "comparables sales or CMa report." This will help determine a true realistic market value for your property).
Multiply the ARV x .65 (This will give you 65% of the after repair value). Use 55-60% if you are more conservative.
Create a comprehensive and complete scope of work or list of repairs that you plan to do to the property, and estimate the costs for each repair. (This is very important. If you have experience and are knowledgeable and experienced in doing rehab work, then maybe you dont' need any help. However, if you are not experienced or skilled with the list of repairs to be completed then please find someone who is and have them put together an action plan and construction budget. Yes, this may cost you a little extra money to get them out there, but realistically this can and will save you thousands of dollars. I know from personal experience).
Next, deduct the cost of the repairs from the 65% value of the ARV.
If you are hoping to wrap closing costs into your loan, deduct an additional 9-11% of that number.
Voila!! you have just calculated your maximum offer price for this property and that you will pay n omore than this amount for the property! some would consider this a conservative formula, but it usually works well and keep in mind this is already a risky business so there's no need to take on more than you need to. Finally, always remember that anyone can buy a property at close to fair market value (they call those people retail buyers), but with all the costs and risks yo are taking, you must get the best price you possibly can without question!
TVM Funding Group represents many private equity firms, lenders, and investors nationwide.
We welcome any commercial or residential loan scenario nationwide.
There are many advantages of using hard or private money to help grow and build your real estate portfolio and net worth.
Real estate investing is by far one of the most common uses of hard or private money funds. We all know that real estate investing is an extremely cash intensive financial endeavor. In order to capitalize on new opportunities, take advantage of ongoing projects, investors often require more operating capital than traditional or conventional banks are prepared to provide on short notice.
When traditional or conventional financing takes too long or is not available due to low FICO scores, discomfort with the project or collateral or some other reason, hard or private money can be a deal saver. If you invest in a lot of property, your FICO score can easily drop simply due to the number of mortgages you owe! This is in no way fair especially if you are paying on time, but it happens all the time. I know from my personal real estate investing experience and from that of my investor clients who I work with. Additionally, the properties that can be had for an advantageous price may not meet traditional or conventional banking criteria more times than not. In either situation, hard or private money lenders are not restricted in the same way that traditional or conventional banks are and since they are lending their own funds and most times do not have to answer to Wall St, FDIC, Fannie Mae, stockholders, and the like.
Hard or private money lenders can turn files around in as little as 2-3 weeks. Mortgages for real estate investing can take anywhere from 30-60 days at a minimum to be completed and funding by traditional or conventional banks and lenders. Hard or private money lenders can generally fund in two weeks from the time you have all the paperwork in place.
Many hard and private money lenders can also fund projects that traditional or conventional banks will not or can't. If your real estate investing takes you to the vacant - non income producing property ("white elephants"), maybe a dry cleaners (or a retail strip mall that has one), gas stations (environmental issues galore), or even assisted living facilities (one of the fastest, most lucrative growing real estate markets in the US currently), traditional or conventional banks are not likely to be able to fund your project. Hard or private money loans can, once again, be a deal saver.
You should only plan to utilize hard or private money as a bridge loan. Hard or private money loans will usually allow from 6 months to 3 years. This should provide plenty time to prepare the property or your personal financial situation to arrange for long term traditional or conventional financing or to arrange for the sale of the property in question.
TVM Funding Group represents many private equity firms, lenders, and investors nationwide.
We welcome any commercial or residential loan scenario nationwide.
In all my years of investing if I could summarize my experience as a real estate investor and pass it on the next investor behind me I might say to him, "Prepare for the worst but hope for the best." We never expect to walk into our own project to find the walls stripped for copper or an HVAC unit missing after we close a deal with a distressed seller and we are nice enough to give them a few extra days to move out (an absolutely no-no by the way which I learned the hard way). However, an investor can plan ahead and make efforts to protect themselves and their property with the proper insurance coverage for their needs.
You may think that as a real estate investor and homeowner it is enough to have insurance coverage. this could not be further from the truth. You need to understand your insurance coverage and be sure that it meets your needs and provides the proper amount of coverage. There are three main policies an investor should understand are builder's risk insurance, umbrella policies and rental properties.
Builder's Risk Insurance A builder's risk insurance policy is was created to address the exposures usual to an unoccupied structure under rehabilitation, construction or renovation. It also takes into account the progress and ongoing change in the market value of a property as it is being rehabilitated, constructed or renovated. The policy can include your workers' equipment and tools on site at the property. It can also cover the theft of your building materials such as copper, fixtures, etc.
A standard fire or hazard policy cannot establish a future value for the property. A standard fire or hazard policy applies to the property only as it exists, without completed repairs. Investors with standard fire or hazard policies are putting their profit at risk by not being properly insured. Builders risk insurance is a rehab investor must have.
A builder's risk policy will apply to the total as renovated or as completed end value of the property.
The completed value of property is comprised of the following items:
Acquistion/Purchase price of the property
Cost of the repairs and/ or improvements
Soft Costs
Profit
Umbrella Policies An umbrella policy is designed to cover any gaps that occur when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy.
The basic everyday homeowner's insurance policy will provide up to a maximum of $500,000 of personal liability coverage. O fcourse what if your total combined assets, including your primary resience, are more than $500,000? the answer for this is to have an umbrella liability policy. Typically, a $1,000,000 umbrella policy will cost only a few hundred dollars a year. Depending on how much property you own and/or the level of risk you feel you are exposed to make sure you purchase enough insurance to address these issues. Insurance is about economies of scale, so the more you purchase the less it costs per $100, or $1000 dollars. Always make sure that you are NEVER underinsured.
Rental Properties An insurance policy for a rental property assumes an occupied status of your property and includes landlord liability and loss of rents coverage (very handy). If a rental property is insured as occupied when in fact it is not occupied, this could result in issues if a claim is filed. In many cases, all your properties can be bundled into one policy which will save you the investor lots of time and money.
You should work with an insurance agent that you can trust. Many times it is often best to work with an independent agent or broker who can shop for the best insurance policy to meet your needs.
TVM Funding Group represents many private equity firms, lenders, and investors nationwide.
We welcome any commercial or residential loan scenario nationwide.
Use for Acquisition and Rehab / Repositioning and/or Cash Out Refinance
90-100% Financing available up to 65% of the after repair value (ARV)
• LTV — up to 65% of after repaired value
• Points — from 6%
• Use equity in other properties as down payment
• Quick Closings — within 2 weeks from receipt of a submitted complete file
• Lending area — Texas metropolitan areas, Colorado, and the Missippi
Gulf Coast.
• Amortization-interest only monthly payments
• We originate or acquire jumbo loans in the above markets as well as AZ, CA,
FL,GA, and NV.
TVM FUNDING COMMERCIAL HARD MONEY LOANS
Highlights of our commercial loan programs are as follows:
• Loan amounts - from $300,000 to $10,000,000
• LTVs - vary by product type
• Eligible Collateral types include land, lots, office, industrial, retail,
multi-family, mixed-use, or pools of SFR or condos.
• Term - 6 months to 2 years (other considered on a case by case basis)
• Amortization - interest only monthly payment
• LOI and Term sheets - turned around quickly
• Fast Closings - as fast as 10 days
• Geographic Lending areas - TX, FL, GA, CO and for loans over $1M most major metros in the Southern US from CA to FL and some midwestern states as well
Loan types include acquisitions, refinances, and cash out loans.
TVM Funding Group represents many private equity firms, lenders, and investors nationwide.
We welcome any commercial or residential loan scenario nationwide.
On Friday, September 5th 2008, Fannie Mae issued an announcement pertaining to what most of us expected was coming. This has been a topic misunderstood by many investors and even mortgage brokers. Over the last several months many posters have incorrectly stated that Fannie changed their guidelines. Although many lenders implemented their own internal change, Fannie Mae had not until last week. The effective date is supposed to be December 1, 2008 but you'll probably see that many of those remaining true Fannie lenders will change by October 1, 2008.
The major changes include:
* A limit of 4 financed properties per borrower when submitting an investment loan - Fannie Mae also clarified that it does not consider the borrower to have an ownership in a property that is held in the name of a corporation, even if the borrower is the owner of the corporation. Those properties would not be counted towards the limit. In the event you already have four financed properties, EDC will allow you to add a co-borrower to your loan so long as the co-borrower qualifies for a refinance loan and does not have four financed properties.
* 6 month seasoning for cash out refinances - A rate/term refinance of an existing lien (unless that lien was a for a cash out refinance) will not have a seasoning restriction. If you purchased for cash and there was no lien then this rule would apply.
* Investment properties listed for sale on the MLS within the last 6 months can be done as cash out up to a maximum 70% LTV.
EDC services several markets from the East Coast to the Midwest. You can view a map of our coverage areas and get to know your EDC Territory Director by clicking here.
Niche Private Money Commercial and Residential Lender. We fund loans using private equity, private investors, and hard money. Our niche includes Rehab, Joint Venture, Pledged Collateral, & "Blanket" Loans.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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