Go To Real Estate Home | Add to Favorites
Building Wealth: Don't Waste Your Money On Real Estate Investment Schemes
You've seen the real estate guru advertisements for books, DVDs, programs, seminars, and mentoring coaches promoting no-money-down deals. Perhaps you've watched the infomercial on TV with the people telling their stories of how they made millions investing in real estate with no-money-down and cash back to the buyers.
Maybe you, like me and many others, have purchased books or expensive systems based on these no-money-down and lease-option investing schemes. Here's the rest of the story.
Perhaps you've seen an ad in your local newspaper offering a home with 100% financing from the seller or a lease option. You should know that the investor offering these types of deals makes money by purchasing the property at a discount and selling the property for an inflated price.
Lease-option real estate investors play the odds. They bet that most people won't be in a position to purchase the lease-option home in a year. So the investor seeks a hopeful tenant to make higher than average rental payments, pay more move-in cash, and make the investor's mortgage payment. Those tenants who do eventually purchase the home paid much more for the home than the investor. Many tenants never come up with a new mortgage loan to purchase the property when the time runs out. Either way, the real estate investor makes money.
First-Time Home Buyers
If you need to buy your first home to live in, these home-purchase methods may help you if you have terrible credit and can clean it up in time to finalize the purchase in a year. Just understand that you're paying too much for the property and may not make any money on appreciation. On the other hand, if you have strong credit, you can purchase a bargain house with no money down legitimately.
Tips for Beginning Real Estate Investors
Don't buy overpriced property! Avoid 100% investor-financed "deals." You will have to wait too long to make any money. Plus, the rental income most likely won't come close to making the mortgage payment for you.
Don't waste your money buying real estate guru books, DVDs, programs, seminars and mentor-coach promoting no-money-down deals. Would you buy a book on how to make a fortune on the Internet that was written in 1995?
These out-of-date, no-money down schemes, tell you to look for home sellers in distress who will let you buy their home for no-money down with the seller financing the property for you. This system worked last century. Today's home sellers know that they can get a buyer who can get their own financing.
Plus, today's home sellers know that other sellers have lost money selling with no-money down. They've heard the stories where home sellers didn't get paid and had to foreclose on a property. They've heard the stories where the investor-buyer rented the house to tenants who trashed the property. They've heard the stories where the investor-buyer collected the rent and didn't pay the home seller.
To get started building wealth in real estate today:
1. Get your credit ready for mortgage financing. (Mortgage credit differs from consumer credit.)
2. Buy right. Don't overpay for deals that sound too good to be true. These schemes are too good to be true!
3. Guard your money. Don't get yourself in over your head with high mortgages on rental properties that cause you negative cash flow and jeopardize your financial well-being. The best way to do this is to make sure you get the best mortgage rates on a bargain-priced property.
You can buy investment property for little -- or even no-money down. Get started by buying your home or a second home. Real estate investing offers you the most tried and true way to build wealth when you avoid investing schemes.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhouse.com/
Source: Article Directory
More Than Just Money: Barter
By definition, barter is the when parties swap services or resources. But in business terms, it’s an exchange that ends usually with everyone a winner. All parties involved in bartering hold onto their cold hard cash and don’t lose a cent. There’s no worries about getting ripped off as a buyer or seller, so it’s an exchange that’s high on trust, low on tension. And finally, the government doesn’t get its hands on any of the proceeds. Bartering is such a great system, it’s no wonder it’s been around nearly forever.Historians and archeologists reckon that bartering is a human business practice for the ages. It goes back as far as written history, and perhaps even further into mankind’s (and womankind’s) history of business practices.Between humans, the actual business practice of money c...
15 Construction Loan "inside Secrets" To Building Your New Home.
1. Which construction loans are available and which one should you apply for?Home loan banking and the internet has changed the mortgage and construction loan industry forever. Today's construction loan choices include the 30 year fixed, 15 year fixed, 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM and don’t forget the popular interest only loans.The construction loan of the past was a short term 1 year loan that the customer would have to refinance into a new loan once the construction was completed.This two time process cost the customer two sets of closing costs and you would have to re-qualify for the new loan once the home was completed.The most popular construction loan today is the "One Time Close" but not all are created equal. ...
An Introduction To Motivational Speaking -
Everybody speaks. Some people speak and get elected president of the United States. Other people speak and armies of business people take to the streets, generating huge sums of money. Still others speak and people’s lives change. What makes for difference between those who speak and are received by a rapt audience, and those who merely fill the air with noise? Speaking clearly and effectively is a science and that science is called motivational speaking. For some it is more art than science but unlike art, true motivational speak...
|
 |
|
|
Home Based Franchising
Copyright 2005 Shawn PriceIs Home Based Franchising for you?Do you desire Home Business Ownership but cringe at the thought of starting from scratch?Possibly a Ho... |  |
| Is It Just Me, Or Are People Getting Ruder?
Copyright 2005 Mary EuleI’ve been wondering this for a while and have been dying to ask my business colleagues and friends. But whenever I’m get ready to pop the question, I manage to convince myself that it’s silly, reveals my cynical nature (or advance years!) and is probably just a figment of my jaded imagination… certainly not worthy of intelligent discussion.The... | |
| A Look At Weight Loss Infomercials -
Only in America could billions of dollars be made selling weight loss products to people who need to shed a few extra pounds. In a world full of starving people, Americans seem to have emerged as a nation of overfed, under exercised fatties who can’t put down that bag of potato chips, stop eating that ice cream or refuse that second (or third?) helping of pasta. America’s weight problem – historically solved by eating less and exercising more – had now proli... | |
| How Your Intuition Can Make You As Rich As Conrad Hilton
Conrad Hilton relied on his hunches to make his fortune. His intuition was so finely-honed that it was uncanny. Although he denied any psychic talent, he was often baffled by the accuracy of his intuitions.“Most of the time I can reconstruct the circumstances of these hunches,” he confessed, “and I can figure out in a general way where it came from. I mean I can explain it—not completely but enough to make it less strange. There have been times, though, when I couldn’t come up with a good explanation.”Once his remarkable in... | |
| Top Business Leaders Reveal The Secrets Of Success
Out of the bevy of reality television shows today, no TV show affects the business minds and goals of entrepreneurs everywhere more than “The Apprentice”. The show stars Donald Trump, the famous, wealthy real estate and business icon that has become a household name. Donald Trump has been in business for several decades and knows the secrets to becoming a highly successful businessman.In the past, public indications of his success were mainly found on buildings in New York City such as Trump Towers. He has been a major player in New York City and in the business world for the past few decades. However, the ge... | |
| How To Create Your Vision With A Capital V
This article is based on a radio interview with Romanus Wolteron Entrepreneur Radio, September 9, 2005, www.wsradio.com.How to Create Your Vision with a Capital V1. Why is it that some business owners persevere afterseveral disappointments while others, maybe eventhe listeners, give up?A: It is through the power of vision. Your vision can be aninspiring, energizing idea that you can use to excite others.You need a vision to be more effective, more desirable andmore attractive to your clients and customers.2. What is the value of a business vision?A: Everything you do, the people you speak with, the clientsyou attract are all a result of your vision. The right visionfor your business will help you be more satisfied with yourbusiness... | |
| Don’t Let Passions Rule When Buying A Business
For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.Paying too muchThis results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.Letting your emotions ruleIf you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and... | |
| Investing The Profits From Your Home Based Business
Having made the bold and glorious decision to sack the boss and go it alone you are one of the few who have what i... | |
| Original Ways To Make Money With No Money-a Short Education
An opportunity should never be bought into. By definition, an opportunity is something that people will never sell you. From franchises to swamp land in Florida, to patents and inventions, it makes no difference. Theres nothing wrong with any of the things mentioned, however if somebody is trying to sell you these things, then they are not opportunities by definition. An opportunity is an advantage that you can see ... | |
|
|