Rich people know how to get their hands on money when the average person cannot. This is why even if you aren’t a rich person, you should use their strategies. This is the case whether you are producing a record or investing in real estate.
In today’s world most people complain about not being able to obtain a conventional loan. This is easily fixed by obtaining an FHA (Federal Housing Administration) loan. These loans only require a 620 credit score (considered bad credit by most lenders) and only three and a half percent down payment. FHA loans only work for your homestead, not investment properties.
A lot of real estate experts will tell you that flipping houses for profit is a tactic of the old economy, that the current real estate market is too unpredictable. However, finding the right property for investment purposes is about finding the right situation, the right buyer, and the right property.
Always look for the best deal as lenders are seeking a return on their investment. Identify opportunities where people are facing life situations that are causing them to have to get rid of their home quickly. An unstable job market will have many fleeing big cities for less-expensive areas. In modern times people are searching for homes on the Web, but it worth it to pound the pavement for deals and see first-hand the condition of the homes for sale.
Overall, the current market conditions will not stabilize in the near future. Commercial real estate crisis has yet to truly make and impact and overall recovery is still very slow.
[pagebreak]Office vacancy rates continue to rise, indicating firms are slow to hire. The overall housing market remains weak, a prime condition for those who are poised to make a move.
If you want to enter my world, the big money world of flipping houses (where you find an undervalued house, fix it up and sell for a lot more than you purchased and repaired it for) you will need to rich guy strategies.
* Use hard money lenders: These are lenders who lend specifically on damaged properties so you as an investor can flip the property for big profits. They charge high interest rates – but who cares if you are making $50,000 on a deal.
* Private money investors: These are individuals who have money but are not professional lenders for real estate. Why would they lend you money if you have little to no credit? The same reason a hard money lender will, you will pay them interest rates of up to 18 percent to borrow their money. Again who cares when you are making $50,000 on a flip deal?
The key to all success whether you are flipping real estate, producing records or writing a script is to get educated on the game by getting a mentor and not trying to figure it out on your own. Read up on how to get loans, how to renovate a home and how to find up and coming neighborhoods to invest in. With knowledge comes power.
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Remember this saying ‘All Millionaires Take Action Now.’ So get out there and follow your passion and make that money.
Check me out on twitter @montelongo
