Real Estate Quotes

Many properties that you can buy for no money down are ones you can't afford to own once you buy them. Often, the condition or problem that makes a seller willing to accept a no-money-down offer transfers with the property and leaves the new owner taking on the same problems that defeated the seller. Many no-money-down deals depend on your ability to flip the property to another buyer quickly before the cash flow requirements of ownership kick in. Once you get one or more properties free and clear, another more conventional way to make no-money-down deals becomes available. You can borrow against a free-and-clear property and pay cash for the new purchase; then it becomes a free-and-clear property. [2004] - Mike Summey

Apartment houses and commercial properties offer greater opportunities, but these tend to come with higher risks, more problems, and require greater knowledge. The cost of buying an apartment building as a multiplier of the total rents is much less than for single-family residences. If you have your expenses under control and factored into your purchase price, they could show a better cash flow. You acquire tenants much faster. And it's easier to raise the rent in apartments. [2004] - Mike Summey

Commercial properties offer a wide range of leasing options, which require you to have greater knowledge and a better understanding of financing alternatives to be successful with them. Properties with triple net leases are very attractive to own and require little attention while they are under lease, but when they go vacant, it can take months or even years to get them re-rented. [2004] - Mike Summey

When attempting to buy property at substantially reduced values, two things are most likely to produce favorable responses from buyers: cash and rapid closings. [2004] - Mike Summey

Of all the relationships you will build, banking relationships are the most important. When you have four or fewer properties, the Federal Deposit Insurance Corporation (FDIC) views you as a passive investor and it classifies your loans differently than it does after you have five or more. At this level, your loans become investor loans and are viewed as having higher risk than the first four. A good rule of thumb is to maintain enough cash to cover 3 to 6 months of expenses even if you have no income. [2004] - Mike Summey

if you find only a few vacant houses, it shows that the neighborhood is desirable. A shortage of For Sale signs indicates a stable neighborhood. Ideal properties for beginning investors are ones that need attention, like the ones in the risky neighborhoods, but are scattered throughout desirable communities. [2004] - Mike Summey

Before going into the offer, explain that you are an investor and that you have carefully analyzed their property to determine what you can pay for it. You may even want to acknowledge the fact that they might be able to get more for the property if they can find a buyer who wants to live in it. Tell the sellers that you do not expect them to make a decision on the spot. Suggest that they study your offer overnight before making any comment about it one way or another. [2004] - Mike Summey

The brokers will more than likely point out the positive attributes and leave it up to you to find the negatives. [2004] - Mike Summey

We suggest that you allow the agent to present the offer to the seller without you if they prefer, but reserve the right to meet with the seller if the agent can't get the offer accepted. This challenges the agent to push for acceptance. [2004] - Mike Summey

Buying one house wont' make you wealthy, but buying one or two a year, year after year, will. Wealth is not the standard of living you enjoy; it's your ability to sustain that standard of living if you suddenly can't earn income. Wealth is an income stream. [2004] - Mike Summey

Be very wary of acquiring properties that are a considerable distance from where you live and regularly travel. [2004] - Mike Summey

For security, each new purchase should not exceed 15 percent of what you own at the time of the purchase, which means if you own 40 units it's probably safe to buy a 6-unit property. [2004] - Mike Summey

Portfolio lenders include many banks, savings institutions, credit unions, pension funds, and life insurance companies. Portfolio lenders can tailor any type of loan that can find a market. [2003] - Gary W. Eldred

In Vancouver, British Columbia, for example, more than 100,000 homes include basement suites. They not only boost owner borrowing power, they also provide an essential supplement to the super-tight housing market in Vancouver. [2003] - Gary W. Eldred

The most expensive loan product on the market is the 30-year fixed-rate mortgage popularly offered by mortgage companies, banks, and savings institutions. [2003] - Gary W. Eldred

For most borrowers in most markets, the 15-year mortgage, even on a lower-priced home (holding payments the same), will give larger and safer returns. The 30-year fixed-rate loan on a higher-priced house proves superior only during periods of extraordinary high rates of appreciation. [2003] - Gary W. Eldred

If you're going to own a home for only a few years, you should select an ARM (adjustable rate mortgage) to benefit from its lower start rate. You can nearly always find an adjustable that will cost you less than a 30-year fixed-rate loan if you plan to sell within seven years. Typically, ARMs apply margins that range between 2.25 and 2.75 percent. [2003] - Gary W. Eldred

In California and other sometimes volatile urban markets such as New York City, Boston, and Washington, D.C., ARMs give homeowners an advantage over fixed rate loans. [2003] - Gary W. Eldred

when some lender offers you loan rates or terms that sound too good to be true, look for the strings. [2003] - Gary W. Eldred

As a minimum, put your proposed in writing as part of your overall offer to buy the property. [2003] - Gary W. Eldred