Leverage is not a new concept to seasoned investors, who understand the advantages of obtaining loan to finance purchases they wouldn’t be able to afford otherwise. Real estate investors usually go with a mortgage or other financing options when they see an immediate opportunity that they don’t want to miss. However, once making investments on behalf of their Solo 401k, some investors are hesitant to take out a loan, as they afraid it might violate Solo 401k rules.
Certainly, winter is the slowest selling season, for the obvious reasons. Since the main focus is on holidaying, staying warm, etc and not on buying a home. This makes most homeowners take their homes back from the market till spring. If you too do the same, you need to re-work the selling strategy of your home according to the season.
The highest and best counter is the dread of many real estate investors. Well, perhaps not really dread, but they certainly aren’t particularly pleasant. They serve as a reminder of why it’s better to find a deal off-market than on the MLS or even through a wholesaler. That being said, we’ve had a lot of success buying off the MLS by simply making lots and lots and lots of offers. So dealing with highest and best situations is something we’ve become quite accustomed too. It’s just part of the life of a real estate investor, so it’s best to make peace with them and simply figure out how to deal with them.
Mortgage money obtained from banking or institutional sources, called conventional mortgage money, usually takes between 45 and 90 days to fund. Institutional lenders need not only obtain appraisal of the value of the property, but also require detailed examination of the borrower’s credit history and current financial status, as well as financial statements and tax returns not only for the property securing the loan but for all real property and business interests owned by the borrowing entity and the borrower himself.
When you co-sign a loan for someone, you are taking on risk on with no return. When lenders refuse to give a loan to someone it is because they are too much of a risk. Consider the following about co-signing or guaranteeing a loan for someone else:
I believe quite strongly that a seller-provided pro forma is all but completely useless. I’ve even gone so far as to call them “pro-fake’as”. After all, the seller can put in whatever estimate they want. And you can pretty easily guess whether that estimate is going to be high or low. However, the operating statement is very useful. It provides the real numbers of how the property has performed over the last year and that is the basis for valuing it in the present and predicting its future returns.
If I offered you a seller financed note on an investment property that is due to collect 100 payments of $400 a month at 8% interest would you know how much to offer? Do you know how much the note is worth?