10-21-14 - co-sign-loanWhen 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:

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Self Employed 401k and Required Minimum Distribution

Self Employed 401k and Required Minimum Distribution

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ID-10088977I 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.

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seller-financing-real-estate-investorsIf 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?

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Real Estate Investing GoalsettingSetting Goals - One of the themes of this real estate investing article is that I hope you’re catching on to is that there is more to being wealthy than just having money. I know plenty of rich people who are absolutely miserable. They have all the money they could ever want, but they are in terrible health, have no friends, their family despises them, they don’t have any spiritual beliefs, no hobbies,  and on and on.

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The Sandwich Lease OptionThe Sandwich Lease Option is another lease option strategy that some real estate investors have had success with. However, there are more risks here than a straight lease option refinance so it may not be an appropriate strategy for a novice investor.

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real estate investing private money lendersThere is no doubt that when looking to make a real estate investment, choosing a hard money loan is a great option. However, many people do not get approved for the loan because they were caught off guard with the loan application requirements. To ensure a better chance of having the loan approved, check out The Hard Money Loan Application Checklist.

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10-08-14 - Fear and PressureWelcome back, As I make my way farther and farther into my thirties I see more and more younger faces coming into the understanding and business of investing in real estate for profit. Gone are the days of me being the youngest investor in my Real Estate Investor’s Club, local seminars, or other real estate related groups.

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cabinWe had a two-unit upper/lower unit in Hamtramck that always rented to polish folks in the neighborhood. For as long as I can remember Hamtramck was primarily a polish immigrant community. My tenants could not speak English, and even though I am Polish, I can not speak Polish, which made our monthly collections interesting. The tenants always demanded that I pick up the rent from them in person. While picking up the rent they insisted that I sit and have a few drinks with them. They did not use the phone or the mail. Everything was going great until the neighborhood started to change… and my tenants moved out to the suburbs. The neighborhood changed dramatically and now our new tenants were not too keen on paying us on time… ever. As the house sat vacant between tenants we were greeted with a handful of squatters. To say it nicely, it all went to hell in a hand basket.

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non traditional bankSince the official start of the ongoing “Credit Crisis” back in the Summer of 2007, Private Money loans (debt, equity, and / or mezzanine) and Institutional Funds (i.e., Hedge Funds and Private Equity Firms) have provided more readily available access to funds for residential and commercial real estate investments than many of the largest U.S. banks. Non-traditional funding options have included individual investors (“Silent Partners” or Equity Investors), Crowdfunding, and Private Money or Hard Money Lenders. With Private Money, the collateral for the loan is seen, many times, as at least equally as important as the borrower’s qualifications, which provides more flexible underwriting guidelines as compared with Bank loans.

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