Starting a home-based business of buying and selling houses for profit can be a huge success should you take the proper steps to get started. It is possible to start buying houses for just a little money and within a few days.
You do not need perfect credit and a lot of cash to get started in buying and selling real estate. You also do not need a real estate license in this business.
Here are the beginning methods behind almost all starting real estate investors who use little or no money to get started buying properties:
Join your local real estate investment organization or club for valuable help and resources you will need for long-term business success. Your education in real estate investing should be your largest cost in this business.
To succeed in a real estate investment atmosphere for a sustained time, a business marketing plan must be formed. A good business plan maps out activities that will lead to success. It lets you form clear paths for your business, and set goals with every step. A business plan allows you to own a business that is profitable on purpose, and not by accident.
Here is the foundation for almost all unconventional real estate transactions performed today:
Just about all mortgage loans used to be assumable, where the buyer and seller would come to an agreement. With a simple form filled out, the buyer agrees with the seller to take over payments on the existing mortgage.
Today most mortgage loans contain a "due on sale" clause, where the mortgage lender has the right to demand payment in full should the ownership of the property be transferred.
This clause is not a law, but a piece added to many of today's mortgage contracts. This clause is intended to limit the risks to the lender.
The costs associated with the exercise of this clause are substantial. Therefore, if payments are regularly made, lenders almost never take action to stop this type of transfer. Many times the lender will never even notice the transfer took place.
Today's current form of real estate transfer is what is called the "Agreement For Deed" and is the foundation for current property transfers today.
By forming a clear business plan and by properly using real estate contracts, an individual or small business can purchase virtually "unlimited" properties using little or no money down.
Monday, January 7, 2008
Real Estate: It Takes Two to Tango
Two people, so a saying goes, can look at one thing and see two different things.
In the world of real estate, there are only two people involved in the process, the buyer and the seller. Whoever gets the most benefits, nobody can tell. But whether it's the buyer or the seller's game, getting involved in real estate business can be a very rewarding feat.
Real estate, in a general sense, refers to anything that is permanently set on a piece of land such as buildings. The concept of real estate lies on the fact that because of property ownership, real estate has turned out to be the most important theme in the business. And when there is a business, there is money.
Nowadays, there are people who buy houses not just because they want to own a home but for financial reasons.
Generally, these moneymakers would get a home equity loan from their real estate and then use it as a deposit for another property. Thereafter, he or she will sell the other property at a higher value. This is better known as "flipping".
This is the reason why most mortgage lenders and builders would rather sell their real estate to customers whose purpose to buy a house is purely residential. Lenders and construction builders see these so-called "flippers' as a treat to their business.
For this reason, many builders include some anti-speculation writing clauses within the sales contract. It is stipulated in the contract that the owner will be reprimanded if he or she will sell the real estate within one year. It may also include a clause stating the defensive privilege of the builder to buy back the real estate at the selling price. This is applicable if the owner will resell the real estate within a year after the date of purchase.
But nevertheless, there are still people who try speculating in real estate especially if they have loads of perspective buyers who can compensate the higher rate of the property plus the cost it brings.
In a basic sense, property owners can do most anything with their real estate. The only drawback is that speculating on real estate fads can be really risky because nobody knows if and when the real estate "bubble" will burst.
But then, most business experts contend that what you invest in depends on your capacity to take risk. So, if you want more income, you have to take more risk…risks that you're confident enough to face.
In the world of real estate, there are only two people involved in the process, the buyer and the seller. Whoever gets the most benefits, nobody can tell. But whether it's the buyer or the seller's game, getting involved in real estate business can be a very rewarding feat.
Real estate, in a general sense, refers to anything that is permanently set on a piece of land such as buildings. The concept of real estate lies on the fact that because of property ownership, real estate has turned out to be the most important theme in the business. And when there is a business, there is money.
Nowadays, there are people who buy houses not just because they want to own a home but for financial reasons.
Generally, these moneymakers would get a home equity loan from their real estate and then use it as a deposit for another property. Thereafter, he or she will sell the other property at a higher value. This is better known as "flipping".
This is the reason why most mortgage lenders and builders would rather sell their real estate to customers whose purpose to buy a house is purely residential. Lenders and construction builders see these so-called "flippers' as a treat to their business.
For this reason, many builders include some anti-speculation writing clauses within the sales contract. It is stipulated in the contract that the owner will be reprimanded if he or she will sell the real estate within one year. It may also include a clause stating the defensive privilege of the builder to buy back the real estate at the selling price. This is applicable if the owner will resell the real estate within a year after the date of purchase.
But nevertheless, there are still people who try speculating in real estate especially if they have loads of perspective buyers who can compensate the higher rate of the property plus the cost it brings.
In a basic sense, property owners can do most anything with their real estate. The only drawback is that speculating on real estate fads can be really risky because nobody knows if and when the real estate "bubble" will burst.
But then, most business experts contend that what you invest in depends on your capacity to take risk. So, if you want more income, you have to take more risk…risks that you're confident enough to face.
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