Friday, December 12, 2008

Buying Real Estate in today's World

If you are buying property today, whether you are a owner or an investor, with a bank you will have a harder time than last year. You know the reason for it. Just read any paper (didn't I tell you to stop reading the paper) and you will see it on the front page. The Worldwide financial crisis affects us here on Main Street, USA. Bank are tightening lending restrictions and are not making the same loans they did last year - actually that is a good thing since some of those loans is what got alot of people in trouble.

But that impacts your business and buying decisions. If you are an investor and have purchased property you have, I'm sure like me, probably used your own credit or money at one time or another. Yeah I know that is the completely wrong way to do it. But it is the quickest and easiest to buy property; provided you have the money and credit. Well there is another way and that is with private money.

I am sure you have heard of it. It is the rage in the real estate investing community. I receive at least three or four emails a day about it. How to get it, how to use it, who to talk to, & what do you do with it when you get it. There are many people, people you know, that are making 3 - 4% in a CD that could be making 8 - 12% on their money secured by real estate. You need to develop your program, make a list of people you know and start talking. This how we fund our realestate purchases. It allows us to get good terms when we buy and we can wrap the financing to help buyers get into a home that a bank may not fund. Not because they do not make enough money or do not have any down payment, but because they may have been late on a mortgage payment once in the last 12 months. So our private money program lets us grow our business while helping buyers and sellers. I will be talking about this topic every Friday for the next several weeks. It is a very important topic and you will need it to grow your business.

Now the legal side: You need to research the state and federals laws governing private lending before you talk to anyone about your program. Most states you only have to register your company and yourself other states require much more rigorous licensing. And don't forget the Federal government they have their own requirements. But it is worth the trouble.

See Ya,

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