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Marketing = Selling + Financing
Friday, February 26, 2010 (37 reads)
When houses are being sold within hours of being offered for sale, it's amazing how swiftly we forget how important marketing skills and techniques are to making money in real estate. Being able to market creatively is going to be critical to success and financial survival. Sign up to see more |
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Private Money Financing Offers Big Yields
Friday, February 19, 2010 (52 reads)
In the foregoing illustrations, the presence of a passive investor was a key to being able to capture large portions of equity in a relatively short period of time. The investor provided all the cash but, in the end, the transaction generated yields far in excess of those available in any other competing investment opportunity of comparable ease and safety. The stock market has been moving up and down for months as investors wait to see how the inflation picture shapes up. None of these can produce investment yields like those in the foregoing examples. Sign up to see more |
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Creative Financing Works for Both Sellers and Buyers
Friday, February 12, 2010 (79 reads)
When I first went into the real estate business, my office building sat next to a little wooden shack. The proprietor, Frank, drove an old Toyota and seemed to have no means of income. One day he explained to me that he’d made over $100,000 per year for 30 years simply buying houses on low interest terms from owners and selling them on installment contracts at higher interest rates rather than renting them. Borrowers, who were owner/occupants took care of all expenses, taxes and insurance, and paid him interest for the privilege of doing so. When loans were defaulted, he foreclosed and resold the property at a price that reflected any appreciation in value. Thus, he captured income, appreciation, investment yield, leverage, and loan amortization. By giving up all depreciation, he also avoided all repair expenses. As a new Broker, I didn’t pay much attention, but when the real estate market slowed down and Frank’s income continued to come in while I worked harder just to stay even, I vowed to learn more about financing. Sign up to see more |
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Investing In Debt Could Pay More Than Investing In Equity . . .
Friday, February 05, 2010 (69 reads)
Just after the end of the Carter housing boom, Jimmy Napier wrote a best selling book he titled “Invest in Debt”. His timing was perfect. In most areas of the country, interest earned on money loaned exceeded by far the profit earned on equity appreciation. It’s pretty easy to figure out why: Suppose you bought a house financed at 8%. Every $100,000 of loan would earn $8000 per year. A $300,000 loan would pay the lender $2000 in income per month in interest with little or no effort on his part at all; and virtually none of the liability associated with real estate ownership. Sign up to see more |
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Fear is Failure's Collaborator
Friday, January 22, 2010 (64 reads)
FEAR has robbed more people of success than any other factor. Fear is what freezes a deer in the headlights. Fear is what makes a person aim low to avoid failing instead of trying to get to the top. Fear of rejection keeps people from making low or creative offers and aiming for higher profits. Fear of the future is what motivated me to settle for a mediocre career in the Air Force rather than becoming an entrepreneur at an early age. To avoid going out on their own, fear drives people into college to get a degree in a specialty that they never work in. Sign up to see more |
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