The collapse of sub prime real estate mortgage lenders and what the future looks like for real estate investors.
With the highly publicized failures of many sub prime mortgage lenders, like Ameriquest, Bear Stearns and many California sub prime lenders, it's time to learn about using unsecured business lines of credit to invest in real estate.
Sub prime lenders offered sub prime loans up to 100% of the value of a property, even to people with bad personal credit scores. This was easy money to get because of the flood of sub prime mortgage loans into America from other markets.
But with easy money and large fees and profits to be made on every sub prime mortgage loan that was underwritten - sub prime mortgage lenders gave money to the wrong people. And now those people can't repay their mortgages.
So these sub prime mortgage lenders have closed their doors and the easy money in the residential sub prime mortgage loan business is all gone.
What this means to real estate investors is that they need to find another source of funding for their profitable real estate investments. Because the great deals are out their even if the money to buy them and fix them up has gotten harder to come by.
Now smart investors need to learn about getting unsecured business lines of credit. This is the last easy money source for people that don't want to use a lot of their own cash to invest in profitable real estate deals.
Using unsecured business lines of credit is a great way to make money in real estate by buying quality properties without using any of your own money.
This does not mean a return to the no money down investing techniques of the 70‘s and 80‘s. Many of these techniques are simply gimmicks that make you the owner of an over priced property that nobody else wants. Who wants a no money down house that you can never sell for a profit.
There is usually a good reason people give houses away for no money down.
Today's investors needs to use proven techniques to leverage lines of credit to buy good property. If you are using unsecured lines of credit to get the money to invest, you can buy a lot more real estate than you can buy if you only used your own cash.
Seems like a no brainier to recommend that people buy more real estate in today's great buyers market.
Investing in 2 houses is better than one. But you will meet people that still believe that it's a good idea to use ONLY their own cash buy real estate.
How much real estate could you invest in if you never needed to use your own money?
The rich get rich because they control more assets than the middle class does. They buy 5 good investment properties to every 1 that we buy.
Everyone historically makes money in real estate - the rich just make a lot more because they own a lot more. And they buy all this real estate using lines of credit.
Find out where to get the best lines of credit @
http://www.cashflowexperts.biz/
This is simply called using leverage not cash to invest in real estate. But the opposite of using leverage is to pay with ALL your own cash for property and own it free and clear.
Why do some people still want to own real estate free and clear?
Because they believe that they are making more money if they borrow as little as possible to buy it.
But let's look at 2 examples to see which example makes more money.
Example 1.
Use $40,000 of your personal savings to buy a house with 20% down and get a mortgage for the rest.
You may cash flow $400 per month with this scenario.
And on this one house you will also be getting -
A. equity build up like a personal saving account as your tenants help you pay down the principal on the mortgage each month..
B. appreciation as the house goes up in value, which over time real estate has always tended to do.
C. great tax deductions that will lower your personal tax bill and put money back in your pocket in many cases.
Example 2.
Use a $80,000 new business line of credit instead of your own CASH and buy 2 houses.
You may cash flow $200 per house per month for a total cash flow of the same $400 a month as you had in the first scenario.
But, you are making money on TWO pieces of investment real estate instead of one.
You're also getting -
A. Double the equity build up as the debt is paid down.
B. Double the appreciation.
C. Double the tax deductions.
AND YOU NEVER USED A DOLLAR OF YOUR OWN CASH.
Both down payments came from an unsecured new business line of credit!
We can show you exactly where and how to get MONEY to do this using the Ultimate real estate investor's guide.
Get the guide @ www.cashflowexperts.biz/ultimate
You don't need any income, assets or even good personal credit to get this money if you follow my 4 step system and use the list of lenders that I give you.
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