The Basics Of Financing Real Estate Deals – How To Keep Investing In Today’s Market

Every investor needs to be familiar with the different ways of financing real estate deals. The primary methods are traditional mortgages, hard money loans, private investor loans, partnership deals, owner financing and lease options.

Traditional mortgages are how most people get the money to buy investment real estate. However, with the recent tightening of standards to qualify for a loan, and Freddie Mac’s announcement that beginning in August, they are reducing the total number of loans an individual investor can hold from ten to four, other financing strategies are important to have in your investor toolbox.

Hard money loans are typically short-term loans at relatively high interest rates. They typically come from people who are in the business of lending money. Most investors use these loans with a plan either to flip the property or to get new financing on it in the immediate future.

Private investor loans usually have better terms and can be used long-term for an investment property. These lenders are not in the formal business of lending money and are usually individuals who are looking for a better return on their money than, for example, certificates of deposit can offer.

Partnership deals are a great way to get around Freddie Mac’s new four loan limit. These types of deals can be structured in many ways, but basically, one partner finances the deal, often through a traditional mortgage, and the other partner manages the property on an ongoing basis. If you have already maxed out your four loan limit, but have the time and knowledge to find good deals, than this is a great way to increase your portfolio with a partner.

Owner financing is simply asking a seller to “carry back.” The seller acts like the bank and you pay the seller regular payments on the purchase price of the property. This is another good way to get around the Freddie Mac loan limit.

Lastly, lease options provide investors the opportunity to control property without getting any type of financing. The seller of the property would give you a lease – just like a rental agreement – for a specified period of time, and you would also get an option contract that gives you the right, but not the obligation, to buy the property anytime during the lease. In an uncertain market, this is a great way to stay active as an investor, but with limited risk, since you can always walk away at the end of the lease.

In conclusion, there are many ways to keep investing, despite tougher lending conditions. As investors, we must keep in mind all of our options when it comes to financing new deals.


Where to Find Tax Lien Auction

There are times when a property owner is unable to pay the obligation in property tax. When this happen, a property owner becomes a delinquent taxpayer and a governing authority is in charge of collecting the taxes. However, if the authority is not able to collect the required property taxes, they will opt to take the final step to collect the taxes. The public auction is the final step that will take the delinquent properties to be sold. Auction is an auction ordered by the court depending on the nature of sales in the form of tax lien certificates or tax deed sales. Auction in the form of tax lien certificate entails selling of certificates to assert the total sum of taxes as well as the administrative interests and charges.

The required property tax will be achieved through a auction and the delinquent properties are offered in the amount due for the taxes, interests and fees. Tax lien auction is an open sale that is why participants may tender their bids over and under the amount required for the tax of delinquent properties. The drawback is that the buyer will not be able to recover or refund the overbid.

Purchasing a tax lien certificate to pay against the required property taxes incurred by the delinquent taxpayer.

However, the delinquent taxpayer along with the interest charges will pay the amount back to you that are about 16-18%. This kind of auction allows the buyer the possibility to acquire the property in case of fail to repay by the delinquent taxpayer. In addition, the buyer can also obtain higher percentage of interest when repayment is made.

A referee appointed by the court conducts the tax lien auction. As the auction starts the referee announces the terms of sale and the required amount of bidder’s deposit. Just like any procurement bidding process, the prospective buyer or bidder is required to pay 10 percent of the bid amount in form of certified check payable to the referee. The delinquent properties sold in a auction are sold where is and as is. This means that a bidder has no right to investigate the property prior to the auction schedule as well as inspect the interior of the property. Although the property is deemed foreclosure, it is not allowed to enter the property and do some inspection. This may seem that your bid is in uncertainty because whatever the condition of the property you are not allowed to investigate and inspect.

There are many listings offered by different websites that allows the prohibition of keying the data for the buyer or bidder. This will also let the buyer to choose the right lists that qualifies to the criteria.


Online Marketing Strategies for Small Businesses

If you own or operate a small business, it is crucial to have an established online/internet marketing strategy in order to be able to maximize on sales and profitability, and to be successful in today’s competitive economy. Small businesses that are mainly conducting their business operations online need to seriously consider the following online marketing strategy list which will help establish and grow their business successfully:

Content Marketing

This strategy is based on providing existing and prospective customers with all information pertaining to your business, service or product. This information can be delivered out to customers by way of articles, blogs, printed brochures and press releases on the website of the small business.

The content delivered, should consist of high quality, highlighting the purpose and benefits of the business along with any USPs of the business. You need to be able to create interest for your target audience so that they can be drawn to your business and even inform others about it by word of mouth advertising.

Email Marketing

This e-marketing strategy revolves around the creation and building of an email list of all present and potential customers which will include their names and emails. This strategy is more customized as individuals receive emails through which you can engage with them on a regular basis even when they are not purchasing from you.

This is a good way of staying in touch with your customers via informative emails, and exclusive discounts, reminding them about your business offerings and why they should choose to buy from you. Email opt-ins can also be placed on your website for conducting email conversations.

Search Engine Marketing

This marketing tactic is imperative for a small business by giving them an opportunity to be able to compete even with their much larger competitors through visibility on search engines. Using search engine optimization, you will be able to enhance your visibility to your target audience by obtaining a good search engine ranking.

Social Media Marketing

This e-marketing strategy is useful for strengthening your customer base, using the power of the social media to influence them into purchasing your products or services. Social networking sites like Twitter, LinkedIn, Pinterest and Facebook are highly beneficial for keeping current and prospective customers informed and updated about the happenings, upcoming events and incentives and latest additions of any small business.

It is also an important source of getting to know the demands, desires, and expectations of customers along with being aware of the feedback they provide.

Localized Search Marketing

This tactic includes the optimization of a website for search engine results, but is also inclusive of the function of maps with search engines like Google. Through this strategy, your small business can be listed with address information and mapping to give a brief set of information to your customers for visiting your business. Customer services like your website address and phone number may also be listed through this tactic.

With the help of the above mentioned online marketing tools and strategies, you can be sure to enhance the presence, visibility and awareness needed for the success and prosperity of any small business.


How Genuine Is Your Home In Terms Of Investment?

Different people follow different types of life style. Some are always busy trying to earn hard money so they can think of investing in future plans. Thousands of people around the world make money for their future investments. The moment you go out and speak to the professional investment agent, most of them might give you different advices. Some of them might also advice you to try and invest all your hard earned money in different types of networking companies, bonds or financial institutes. Some of them might also advice you to invest in real time business by setting up a small or a big production of servicing unit. This depends on your choice where you want to make your best investment, but these certainly are not the only and the best options available.

Even before investing any money, you need to get familiar with all possible ups and downs of the investing industry. The factors may depend on the area of your interest. For many people around the world, who are also successful investors, investing money in real estate and home is a smart way to invest your money. One of the main benefits with real estate is that you can always have an option to rent it for more profits. This is not a very difficult task as you just need to make a few adjustments to the property and ensure that all possible documentations are valid.

Rental homes certainly are considered to offer you with a better income stream that is consistent for over a period of time. Apart from this, depending on the present market conditions, you can always expect the rental amounts to go much higher with time. Many people always look around for new rental homes as they are on move because of their jobs. Apart from renting home to a salaried person, you can also try and convert it into a nice vacation house. There are many people who try getting away from the busy schedule of their job and often look around for perfect escape vacation home.

The cost of rental can change according to the location of the home. So if you have invested in a home that is located in the deep forest, you always have a better chance to earn money. Also people with joint family always look out for extended homes for their loved ones and so you can try and come across to rent your home to them. If you are in contact of any social club then you can also try and offer your home as a perfect reunion spot.

As the value of real estate keep on increasing after regular period of time, you can always ensure to get best resale value after few years of investment. For many people, homes are always the best investment options as they get a chance to generate big profits over a period of time. As for homes, it is much easier to convince ourselves that they are always the best investment plans for anyone. So a smart investor always looks around for opportunities to invest in genuine real estate.