youcanbuycashflowrealestate.com

Real Estate Investing - Taking Title “Subject to”

Real Estate Ownership without Personal Liability

Many real estate investors don’t realize they can take title to a piece of property while leaving the mortgage in the seller’s name. Although this seems to go against traditional thinking, not only is it legal, it happens all the time. It’s called a “subject to” deal.

A “subject to” deal is when the seller gives you the deed to his home but leaves his mortgage in place for you to make the payments. You don’t have to qualify for the loan, have your credit checked, or come out of pocket with cash. You just use a piece of paper to transfer title (the deed).

A Common Scenario

Let’s say a seller is behind on his mortgage payments, and does not have the financial means to bring them current. You, as the buyer, can agree to make his mortgage payments for him, if he’ll sign the deed of his property over to you. Meanwhile, the loan stays in the seller’s name, but you own the property!

The seller–faced with losing his house to foreclosure–has very little to lose with this arrangement and much to gain. If you bring his payments current and eventually pay off his loan (through sale of the property), he owes you a debt of gratitude for rescuing his credit along with his dignity… and taking a huge weight off his shoulders.

Changing Ownership with Real Estate

Taking title in this manner is called “subject to” because the buyer is taking title subject to the underlying loan. Many real estate investors will also refer to this type of transaction as “getting the deed.” That’s a little misleading, however, since you don’t actually get the deed. In reality, you must get the sellers’ to sign a new deed prepared by you or some other professional. Changing ownership of real estate isn’t like buying a car. There is no previous title or ownership document to use because their interest in the property is recorded in public records.

How Did This Happen?

Buying real estate “subject to” has become more and more popular over the years as the number of assumable loans has diminished. A couple of decades ago, it was very common for a buyer to be able to assume a seller’s existing loan without qualifying. Although a few assumable loans still exist (some FHA, VA, and private loans), in general, lenders don’t issue them anymore.

But why would you want to assume a loan anyway? By assuming the seller’s loan–you must submit paperwork to the lender, get approved, and become personally liable for the debt. Why do that when you could take title “subject to” instead? “Subject to” eliminates personal liability to you because you have not guaranteed the note to the bank. Yet the deed transfers all the ownership rights of the property to you!

The Demand for “Subject to” Deals

In today’s soft real estate market, many people need to sell. Some simply can’t find a buyer. Others are in pre-foreclosure and have no way out. “Subject to” is a great way for you to purchase properties without using any of your own money. Motivated sellers are everywhere, and some will even PAY you to take their deed. With “subject to” deals, it’s always a great time to invest in real estate!

Article from Trump University

Real Estate Investing – Always Educate Yourself

I joined EWI Real Estate Seminar (Master Program) over one year ago today.  As I mentioned to you earlier, I am involved heavily with training and reading.  I am always looking for the opportunity to learn because depending upon what level of real estate knowledge you are at be it in the beginner or advanced; there is always a piece of information you missed. 

When I first joined EWI Master Program, I was completely overwhelmed 2 years ago.  However, after investing in Real Estate over 3 years, I have retained much of the knowledge due to taken ACTION. 

However, as we say when we attend the Wealth Retreats, we are here to find the Gold Nugget!

Today, I found my Gold Nugget listening to Bob Proctor’s lesson on “Fortunes”.  He talked about creating your Master team, go find them and ask them.  It’s Simple!

http://store.sixminutestosuccess.com/?aid=588610

Bob Proctors video on Napoleon Hill’s book, Think and Grow Rich (about 20 minutes long)
http://store.sixminutestosuccess.com/?aid=588979

Anyway, I joined the Live 4 Week Prep- Course to the 90 day Real Estate Challenge that starts on April 27, 2009.  I am going to list my homework assignments below.  This way you can follow along and learn how to create your fortune with us.

As you can tell from the list of homework assignments below, Real Estate Investing takes motivation, time, and most of all ACTION on your part.   You must be willing to Learn and take ACTION!!

I will post the New Homework Assignments on Tuesday’s for the next 3 weeks.  This week I’m running late due to some personal family issues.

Oh, by the way, the instructor told us,

If you don’t complete this list of assignments below

Then  Don’t Bother Showing Up On Next Monday Night’s Call!   

Homework Listed Below:

1.       Adjust 1 hour per Day to Invest in Real Estate.

2.       Create an Investor’s Tool Kit.  (put all of your real estate forms in one area)

3.       Fill the tool Chest with useful Tools.  (agent’s names, phone numbers, attorneys, etc…)

4.       Learn the Art of Each Tool.  (know what each form is used form or who to call)

5.       Apply new Knowledge (Take Action!  look you can listen, read, and learn however if you don’t apply your knowledge then why are you reading this blog?)

6.       Repeat the process (cookie cutter real estate process)

Research Incentives to Buy

·         Tax Rebates

·         Tax Credits

·         Down Payment Assistance

·         Federal, State, and Local

Action Items List:

1.       Read or Listen to the “Blue Vase” Story

2.       What incentives Are Available?

3.       How Do You Qualify?

4.       Enroll in the 90 Day Real Estate Challenge

5.       Have a “WHY” – Get Excited

6.       Watch the Movie “Rocky”

7.       Read Chapter 1-4 “Road to Wealth Book” author Robert Allen

Enjoy learning!

Real Estate Investing – Do you Tenants Pay Your Mortgage?

In today’s market the buss is Real Estate Prices are fallen, don’t buy today, your real estate investments will be worth less tomorrow.  

I don’t want to buy a property today if the fallen will be less tomorrow!

My first question to you is “What is your Real Estate Strategy”?  If you are using Speculation Strategy, Hoping the Real Estate  goes up then you are gambling and are not a real estate investor.

My first coach told me; Real Estate investing is NOT a get rich quick scheme.  It takes time and effort.  As I mentioned in my blogs and it also takes education.  Today’s blog is all about working the numbers before you sign the mortgage papers. 

Ask yourself the Question:  Who is paying for this mortgage?  Are you tenants?  Bingo, tenants is the correct answer. 

If you answered You;   Then you better go find yourself another deal. 

Real Estate Investments is all about having the tenants pay for your mortgage.  Don’t buy the property unless all of the expenses are covered by the tenants.

WHO cares if the property value drops.  You are not using your real estate investor money.

Are you paying for the mortgage or is your tenant?  Always ask yourself this question.

Over the 10, 15, 30 years you will have a FREE and clear piece of property that the tenants paid.  Yes, I agree this approach is boring.   However, you are not paying for the real estate investments!

Purchase properties so the tenants are paying for the mortgage.  At this stage of the game, YOU get to deposit the checks into your bank account.

 http://serene.ewimultiplestreams.com/index.php?base=featured

Real Estate Investing – For landlords this is an exciting time with so many homeowners losing their homes they are moving back into rental units!  For us who own rentals it’s fabulous!

I am to say, yesterday, all I did was answer my phone on rentals that I have available.  As you can guess what my plans on today, showing rental units all day!

Great deals with tenants already in place:  No stress just collect the rent checks:

http://serene.ewimultiplestreams.com/index.php?base=featured

I will have three rental units filled by this weekend.  How Awesome it that?

From a management point of view, I tell all of my tenants.  Rent is due on the first of each month, if check is not received by 2^nd of month, eviction notice is mailed out.  I have NO time to chase rent checks down each month nor am I putting rent collection on my monthly agenda.

Be strict and firm up front and they will abide by your rules.  If not, I evict them immediately!

This is the best time to buy cash flowing real estate since there are so many properties to pick from on the market.  If you are looking for the conservative way to buy real estate; your strategy is to buy 10 single family houses; rent them out; hold them until retirement age.  Your retirement is 10 houses.  You will be able to retire without worrying about where your source of income is coming from besides social security.  In my opinion; social security is not a source of income nor should you plan on it for your income.

Great deals with tenants already in place:  No stress just collect the rent checks:

http://serene.ewimultiplestreams.com/index.php?base=featured

Real Estate Investing – Section 8 Housing

Utilizing Section 8 requires time and commitment.  It’s best to work with Section 8 to learn their guidelines and rules.  But most important you need patience.  They have policies and procedures to follow and steps take time to process.
Find Your Life’s Freedom’s! Take Action Now!!  (excellent management program at a fair price)

 Our second inspection passed the end of February however they did not pass my rental amount.  Interesting because they had the rental application in their hands 10 weeks ago!  As you can tell this is my first time I dealt with the rent amount not passing.

The challenge lied with finding the correct person to work with and figure out how to get them to return my phone call.   They are swamped with applicants.

The unit passed inspection but unfortunately the rent amount failed.  The rent amount was higher than the average in the area per the size, age and amenities of the property.

It’s always a challenge talking to the correct person at housing.  Or the challenge is figuring out WHO I need to be working with at the housing authority.   The case worker did not return my phone call after leaving several messages within a one week time frame.  I decided to leave a message for the Housing Inspector.  Great choice, this individual returned my phone call within the hour.  I was shocked!

Find Your Life’s Freedom’s! Take Action Now!!  (excellent management program at a fair price)

They faxed over the individuals name, address and email address that I need to work with the same day.  I left him a voice mail message and he turned my call.  Via email we did get the rent amount worked out to meet Section 8 Guidelines. 

Now the tricky part is working with the case worker on filling out the rental applications again.  I emailed her and am waiting for her response.

 Find Your Life’s Freedom’s! Take Action Now!!  (excellent management program at a Fair price!)

Real Estate Investing - Education is Key Component to Business Success

Remember back in High School looking forward to graduating telling your friends.  I can’t wait to get out of school!  Well Folks, the reality in today’s world is Education is a Key Component to your Success in Real Estate Investing or any business.

My Friend met with a SCORE counselor last week to go over his Real Estate Business Plan.  For those of you who are unfamiliar with SCORE.

SCORE “Counselors to America’s Small Business” is a nonprofit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE is headquartered in Herndon, VA and Washington, DC and has 370 chapters throughout the United States and its territories, with 11,200 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors. SCORE was founded in 1964.

The counselor’s are Successful Business Owners and many are retired.  They are offering their knowledge and assistance to the future Entrepreneurs in our society to create jobs and successful businesses.

The SCORE counselor told my friend Education is a key component to running a successful business.  This is the key ingredient most businesses are missing and results in failure.  He mentioned people tend to believe once they graduate from business schools all of their educational needs are met.  This is furthest from the true in any type of business be it Real Estate Investing or Network Marketing.

Listen to Marshal Sylver’s Seminar for FREE (I paid $2,000 to attend his seminar in Chicago and it was all worth it and more)  Block out 2 hours of time, put the kids to bed, Shut the T.V. off, grab a cup of tea and sit back an enjoy yourself!  My Gift to You!

Why is it Important to Set Goals in Real Estate Investing?

We have all heard how important it is to set goals in our lives, specifically when there is something in particular that we would like to accomplish. But, how effective are you at setting goals in real estate investing? One of the most respected motivational speakers, Zig Ziglar, in his new CD series “Goals”, outlines the 10 steps to goal setting in real estate investing. If you are serious about achieving your real estate investing goals, take time to learn from the best about how to make your goals your reality.

Are your goals written down or do you keep them safely stored in your mind? If you have not taken the time to write your goals down, you are significantly less likely to achieve them than someone who has mapped their goals out in a plan. Studies after studies have shown that individuals who write their goals down achieve higher levels of financial success during their lifetimes than individuals who do not write them down. So, what are you waiting for? Start writing!

How to Set Goals

Now that you understand the importance of setting goals in real estate investing, it is time to take action. A goal must be clearly defined with both a time frame and amount. Otherwise your goal is simply a wish. For example, I would like to increase my income through investing in real estate is not a goal. But, I would like to earn an extra $50,000 per year by investing in real estate, starting this year is a goal; it has a clearly stated amount and a time frame to begin. Write down your real estate investing goals, clearly defining each and every one of them.

Remember to order Zig Ziglar’s Goal Setting audio. Its a small investment for you to learn how to write your GOALS for 2009 on real estate investing. If you don’t have a path or direction for yourself then you will help someone else achieve their dreams and goals. If this what you want? listen to 3 FREE audio’s!

Without clearly defined goals, you simply can’t achieve the success you want! In Goals, world-renowned motivator Zig Ziglar guides you through a clear, beautifully organized ’success trip.’ Along the way, you’ll learn how to recognize and set your goals. You’ll learn techniques for finding extra time you didn’t think you had and for cutting down big goals to easy-to-handle size. Now you can take advantage of this all-important opportunity to write your ‘business plan for life.’

Real Estate Investing:  The upside of real estate investing today has never been higher. Everything is on sale! And as we all understand, when things are on sale, you are buying much more for your money. If your end goal is to sell a property for a profit, your potential profit margin increases substantially when you locate a property at a discount.

To oversimplify how to make money with real estate investing, you must sell at a higher price than you paid initially for a property. In addition to reselling real estate, you can also rent or lease your property to create both a current income stream and long term wealth. Both strategies produce personal wealth. To determine how much wealth you will generate, you need to sit down with a calculator.

In addition to the current price of a property, you must take into account agent or real estate commissions, closing costs, taxes, down payment requirements for financing and the future mortgage payment in the event that the property does not resell immediately. Because the real estate market pricing has dropped in most areas, sales have also dropped. This could mean that you would be forced to hold a property for several months before selling and in this instance, you must factor in the ongoing mortgage payment when determining your potential profit margin. 

Visit real estate cash flow deals: http://serene.ewimultiplestreams.com/index.php?ase=featured

Searching for Real Estate Buying Opportunities

To spot the best real estate listings, you must be prepared to research. Take time to research residential areas, current market trends, current and prior sales data for a geographic area and rental incomes per square footage with possible properties to help determine what your financial upside is on a piece of real estate. Not all properties will make the cut, meaning that there is not enough potential profit available to take the associated risk.

No matter which method you utilize in real estate investing, the bottom line is that there is money to be made in today’s market. Think of it like the after Thanksgiving sales; everything has had a price reduction and you can get more for your money. And when you are looking to rent or resell, reduced prices mean more money in your pockets. So don’t let an opportunity pass you buy!!

Visit real estate cash flow deals:  http://serene.ewimultiplestreams.com/index.php?base=featured