Real Estate investing- "Owner financing" explained

real Estate investors...I found a rather good link that explains "Owner financing" in basic terms...

Real Estate investing information

So the economic down turn is bleek huh???

Some intresting news during these "hard times" for investors.

Here are a few links to some intresting bits of info for my fellow investment geeks.

Warren Buffet Investor411 articles

And a little note about "Dot com's"


Investor411 Dot com Investments

Real Estate Investing During the Down Turn

by Doc Schmyz

OK let's establish a few ground rules for this article first.

1) The market has had a down turn before...and people still made money.

2) Not every deal will fall into a cookie cutter format...keep your eyes open...and your mind even more so.

3) Not every tactic or idea works in EVERY state/province. ALWAYS check local laws pertaining to real estate transactions.

The above being said...let's move on.

Just because a drop in the market has taken place doesn't mean that you, as a real estate investor/professional, are out of luck. It only means you need to add new tricks and tools to your tool box. (Be warned I use "tool box" a lot.)

Marketing/locating property

Besides the normal channels of RE agents and brokers (still the best way to find good investments in my opinion) you have a huge amount or resources at your fingertip with the internet.
You can join website communities for investors, follow blogs, get in on group discussion...etc. All of these things can lead to new and interesting deals.
Some of my best investments have come to me via a web community contact. I also have gotten countless tips from other investors on investments and financing issues. Do not over look the value of belonging to an "investor community website."
I honestly feel that in the upcoming years the majority of investing will shift to being web related. Not just in finding investment projects...but in doing the research for them as well as the funding process and the majority of the marketing/exit strategy as well.

Finance

Right now we are hearing everyday about how the current market and credit crunch is making getting loans harder for everyone. This is currently a fact. No way around it. The loan process has changed. So what options are left?? The answer is several.

Owner financing. Lease options. Assumable loans.

The above mentioned will become the big trends in the next couple of years. I am waiting to see the lenders change the loan guidelines in the next few months to "re introduce" the assumable loan. We are already seeing a HUGE trend in short sales. (This was a practice that was used only in limited capacity in the last 10 years by most lenders...now it seems like every other distressed listing is a short sale in some cities.)
Do not let the current market conditions scare you in to sitting this investment period out. To the contrary...use it to inspire you. Take the time to do the research on finance options...look into building a LLC perhaps. Find out about buying real estate with your IRA. Etc, etc.

Buy books. Read investment strategies of the big names in investing. Use the time to educate yourself and above all be creative.

When everyone is running for the hills it is your time to figure out how to by the valley they just left.

Doc Schmyz developed a free Real estate investing website that offers real estate investing resources by topic as well as real estate information by state.

Real Estate Investing tools. (Tool box tips #1)

Ok so it’s time to answer some questions about what the Real Estate investor should fill his or her tool box with. (And more so…why.)

Every Real Estate investor needs certain tools. This is the first article to recommend and suggest tools for the starting investor...as well as the seasoned one.
All the tools and or sources I recommend…I USE MYSELF!!!

OK so let’s jump right in shall we:

First things first…we cannot start to play the investment game if we don’t have a basic understanding of our credit. Now you might ask why I am starting with recommending a credit report before anything else. The answer is easy. If you have bad credit and you know it you will have one less surprise in store for you.
There is several online credit reporting services. Most of these companies also do credit repair. I recommend contact at least one and purchasing a copy of your “TRI MERGE” credit report.

Now a word to the wise here. Don’t think that if you log into “JOE BOBS house of free credit reports” that what they are going to give you for free is anything like a TRI MERGE report. It is not even close 99% of the time… so spend a few bucks and get a real one.

Sites I recommend are:


Doctor Credit they do both repair and monitor your scores for you for a very reasonable fee.

Another one I strongly recommend is:


Lexington Law also a very good company to work with. The best part is they are VERY meticulous.

Ok…now that we are done with talking about the credit issue. Let’s look at one of my all time favorite tools…and the best thing about it. IT HAS BUTTONS!!!

I hate having to work out all the constant non-stop number formulas in order to get to the bottom line of if an investment is worthy or not.

To be honest I just didn’t pay much attention in school to the practical application of mathematics. I mean other then balancing my check book what did I need to worry about. Besides anything I need to do I could use a calculator for.

Yeah right….

A few years back a friend of mine introduced me to a “Real Estate investor’s calculator”. I have been smiling about playing with figures ever since.

The calculator is put out by a company called calculated industries. Now let me start by telling you they have several models/bells and whistles. This is one of my all time 2 favorite tools.

This is the one I use:



This little gem will do all the math figures you need. Everything from DTI to PITI payments. It has a cash flow function as well built in. And to top it off it will allow you to enter all your figures in the same manner that Real Estate professional speak. Not to mention it is programmable for the local property taxes you will come across. I highly HIGHLY recommend this tool.

Well that’s it…the first tools I HIGHLY recommend for your tool box. Look for other “tool box postings” soon.

Just a fast note on investing and growth.

First off I want to thank everyone for helping with the growth of Investor411.ORG as of yesterday we have over 200,000 real estate businesses and support services listed on the site.

Of those about 12% are our advanced ads that are helping our members get more traffic for the offices they work for and support services they offer.
If you’re not listed with us… then go toInvestor411.ORG and log in and set up your listing. IT IS FREE FOR YOUR REAL ESTATE BUSINESS/ support services business.

Ok…next in the hopper…today I will be closing escrow on two new investment properties. I was planning on buying till December but I wasn’t going to let these two go.

One is a duplex in San Diego... It will cash flow about $300 a month from the start. The other is a small SFR that will flow at about $322 a month.
For those that are still holding off on investing I can understand completely….however, if you’re an investor….now is the time.

Ok next order of chit chat….

I have come up with the crazy idea that I think I want to come up with an improved MLS for the nation. More often than not the MLS (at least in SO. Cal) is a bit off in the numbers…or they just don’t have accurate info. Not to mention it is not investor friendly at all…this needs to change.

So I am going to start the research process to “build a better mouse trap”. One that allows both R.E. pros to use it…as well as investors to find projects.

Let me know what you think.
Ok…well that it for now. Time to go sign some papers.

Real Estate Information for FREE

OK gang...here it is...for the next couple of weeks I am going to do my best to list as many new REAL ESTATE professionals on the web site for free.

Lots of emails asking for more agents/brokers/etc in your areas...well since we cant get every areas targeted...im just pushing for across the country.

Sooooo if your a investor...a RE agent...RE Broker...or some one who does something or anything that involves REAL estate....sigh up for free.

Real Estate investing information this is where clients from all over are trying to find YOU!!!!!

I mean we can watch the news and panic...or we can get as much marketing for free as we can.

Geesh..how hard is the idea to help one another. So here it is...on my dime you can advertise your RE office...pool service....loan office...landscape business..etc..etc..

DON'T BUY A HOUSE!! (Till you do these first 6 things.)

Getting into your first house is a scary deal for most of us. Terms we don’t understand, contracts written in legalese that we can’t figure out...and let’s not even talk about financing guidelines. Some people won’t buy a home just out of the fear of the unknown.

For most people buying a home is the largest financial purchase they will make. If it is your first time is sure to take advantage of all the program information and home buying programs you can.

Be sure to prepare yourself before buying. Here are six steps to follow before buying:

1) For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far outweigh any drawbacks. Think about what it will be like to be a homeowner.

2) Know your credit score from the start. If you have any bad credit issues, and we all do, be prepared to explain them. If your credit score is really low then you may want to use a credit repair company.

3) Understand exactly what your finances are. For most homebuyers the two most feared words are: DOWN PAYMENT. Today, there are so many different types of loans available that this shouldn’t be as much a worry as it was, say ten years ago. A good loan officer or mortgage broker should be able to walk you through the process and steer you clear of the programs to avoid.

4) Get pre-approved...NOT pre-qualified. Here is the difference. Pre-approval means you have already given a broker or your bank all the information they want in order to actually run your credit and finances in order to see what loan you can get and how much you can actually spend on a home. Pre-qualified means someone looked at your credit application and THINKS they can get you a loan.

5) While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. There are many programs out there run by counties and cities and other agencies. The trick is to know about them, first, and then to see if you qualify for them.

6) First-time home buyer classes. Many lenders and Realtors offer home buyer education classes. They are usually a few hours long and will educate you through the process of buying a home. From applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home.

These six steps will help you on your path to owning a home. Just remember to ask LOTS of questions. Talk to friends and family who are home owners and see who they trust. Buying a home doesn’t have to be scary as long as you understand what you’re getting into.

About the author:
Getting into your first house is a scary deal for most of us. Terms we don’t understand, contracts written in legalese that we can’t figure out...and let’s not even talk about financing guidelines. Some people won’t buy a home just out of the fear of the unknown.

For most people buying a home is the largest financial purchase they will make. If it is your first time is sure to take advantage of all the program information and home buying programs you can.

Be sure to prepare yourself before buying. Here are six steps to follow before buying:

1) For most people, home ownership is an integral part of the American dream and the advantages (tax benefits, sense of home, financial investment) far outweigh any drawbacks. Think about what it will be like to be a homeowner.

2) Know your credit score from the start. If you have any bad credit issues, and we all do, be prepared to explain them. If your credit score is really low then you may want to use a credit repair company.

3) Understand exactly what your finances are. For most homebuyers the two most feared words are: DOWN PAYMENT. Today, there are so many different types of loans available that this shouldn’t be as much a worry as it was, say ten years ago. A good loan officer or mortgage broker should be able to walk you through the process and steer you clear of the programs to avoid.

4) Get pre-approved...NOT pre-qualified. Here is the difference. Pre-approval means you have already given a broker or your bank all the information they want in order to actually run your credit and finances in order to see what loan you can get and how much you can actually spend on a home. Pre-qualified means someone looked at your credit application and THINKS they can get you a loan.

5) While meeting with your mortgage broker or banker, have them look into any down payment assistance programs that may be available. There are many programs out there run by counties and cities and other agencies. The trick is to know about them, first, and then to see if you qualify for them.

6) First-time home buyer classes. Many lenders and Realtors offer home buyer education classes. They are usually a few hours long and will educate you through the process of buying a home. From applying for a loan, working with a Realtor, making an offer, going to escrow (closing), and various other responsibilities associated with owning your own home.

These six steps will help you on your path to owning a home. Just remember to ask LOTS of questions. Talk to friends and family who are home owners and see who they trust. Buying a home doesn’t have to be scary as long as you understand what you’re getting into.

About the author:
Doc Schmyz has invested in Real estate all over the U.S.. His website gives hundreds of investors up to date real estate investing information Get more info from across the U.S. on Doc's real estate investing resources