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Number Crunching Is the Name of the Game
Tuesday, January 19, 2010 (74 reads)
“There’s no such thing as a free lunch.” Ultimately, you’ll pay a price for almost everything you acquire. This can be as obvious as the number on a price tag, or as subtle as unconventional credit terms that can affect value; as has been demonstrated. Calculation of profit can be equally obvious or obscure depending upon the timing of receipt of payment. When everything is bought and sold for cash, estimating profit can be pretty simple; but when the cash is borrowed or loaned over time, time greatly impacts cost and profitability. What you pay, and when and how you pay it versus what you get back - and when and how you get it - control profit. Sign up to see more |
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How Well Do You Understand Money And Credit?
Tuesday, January 19, 2010 (45 reads)
Despite the critical role they play in our daily lives, ignorance of money and credit in America is epidemic. Hundreds of millions of Americans apparently expect to go through life without bothering to learn very much about either. Look around you and take note of all the people you encounter on a daily basis who are completely mystified when it comes to budgeting their lifestyle; balancing their checkbooks; calculating the assets needed to retire; estimating their business’ and investment cash flow needs; and calculating the cost of interest on credit cards and mortgages. Judging by my encounters with the general public and the questions asked of financial advisers, nobody seems to be teaching consumers of any age about money and credit. As a consequence, Americans are mired in debt that they can’t seem to amortize; and which is steadily reducing their standards of living and net worth. Sign up to see more |
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Options Make Money Without Money . . .
Tuesday, January 19, 2010 (109 reads)
Many readers of this letter may not be able to use either seller financing or investor financing to buy houses because of lack of investors or sellers who would be willing to provide financing. But, by using Options, they can buy, sell, and hold houses without the cooperation of either investors or sellers. Sign up to see more |
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Today's Market Is Ideal for Options . . .
Tuesday, January 19, 2010 (69 reads)
An ideal time for buyers to enter the market is when prices are still falling and optimism is at an all time low. Sellers are motivated to sell before their equities drop even more. Nightly Business Report estimates $9 Trillion is sitting on the sidelines waiting for clear signs that the bottom has been reached and prices are going to rise. Once that happens, buyers will rush back into the market, driving prices back up. Ultimately, because they are unwilling to buy into a falling market, they wind up paying more and making less profit than those who do. Sign up to see more |
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When Banks Are Closed, Use Creative Financing
Friday, January 15, 2010 (87 reads)
The essence of creative financing is to be able to transfer equity between buyer and seller without the need for much cash. This requires at least two highly motivated parties who are willing to work together, and knowledgeable enough to make a deal. When a third party “deal-maker” is added to the mix, part of the profit can be carved out without any investment at all. Learning how to become that third party is a major key to being able to earn profits on every buy/sell/lease/Option transaction. To jog your imagination, here are ten ways that a deal can be made using creative financing with very little cash; but you’ve got to propose it. Sign up to see more |
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Manufacturing the Down Payment
Friday, January 08, 2010 (82 reads)
Not so long ago, it was common for homeowners to have to come up with a 5% down payment in order to get a conventional loan. FHA loans required 3%. Only VA loans could be obtained with a zero down-payment. No seller assisted financing was permitted, however, borrowers could borrow the down payment if it were secured by collateral other than the home being purchased; but total loan payments impacted the amount of loan they could get. They could be gifted the down payment. They could sell something to raise the down payment; which included selling an Option on the house they were buying to an investor for enough money to provide the down payment. Sign up to see more |
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Only People Can Wring Profit From Property . . .
Friday, January 01, 2010 (55 reads)
A house doesn’t perform well unless a special magical ingredient is added: people. Only people can re-model and landscape individual houses; or find potentially profitable houses to invest in. It takes people to negotiate profitable prices and terms “going in” and “coming out”. People estimate, and complete, repairs and improvements to make a house habitable. They decorate and “stage” it to motivate other people to pay the highest price. Without people acting as Surveyors, Appraisers, Brokers, loan, escrow, and title officers no houses could be sold or financed. It takes people to manage houses to make them produce income. Let’s face it, without all of these hired people, a house would never leave the lumber yard. Sign up to see more |
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