Secret 6- The Advantages of Using Private Money Investors

One of the major hurdles in securing finance for real estate investment can be overcome using private money investors. To create opportunities for successful real estate investment, private investors can provide a more flexible financing option. Securing private money can help facilitate a more successful real estate transaction and allow the structuring of short sale deals, real estate flips and the management of necessary financing for those who might otherwise be precluded if seeking loans through traditional lending institutions.

Using Private Money

Private money can be used when you are seeking a source of funds that is more flexible than what is available through banks and similar lending institutions. There are a number of private funding sources around, and these often have the advantage of being available at a lower cost and provide the opportunity to work with investors who really know you and your investment needs and strategies. Using private money instead of taking out a conventional loan is often much simpler, particularly when you have a private investor you work with time and time again. You can save yourself a massive amount of time and effort when you don't have to prepare the mountain of documentation necessary for a conventional loan. With this option, there is still no guarantee the bank will provide the loan.

About Private Money Investors

The key difference between a bank and a private money investor is that the latter has a lot more flexibility than a bank.  When you borrow money from a private money investor, their main priority is whether the loan will make them a profit. While a bank will do extensive credit checks and look at your background in detail, the private investor will focus on the details of the deal that you have put together. Their focus will be what you're plans for carrying out the real estate deal are and endeavour to understand what the property transaction entails. This generally makes it easier to manage the loan and the real estate transaction when dealing with short sales and REOs.

The other big advantage with a private money investor is the time frame for securing the finance. While a bank could take up to 30 or even 60 days to finalize a loan, a private lender can often provide finance very quickly. When you have put together a deal for a property to flip, using private funds allows a much speedier  finalization of the deal, so you can move on to the next transaction.

Sourcing Private Money Investors

Finding private money investors to assist with real estate deals is one of the first things you need to have under control. When you are managing real estate transactions, you want to have the necessary funding readily available to ensure the deal proceeds smoothly. Securing a quality private money investor means you can manage things more effectively, structuring real estate deals on terms that work best for the deal you have put together, rather than on the banks terms.

A good place to begin networking and finding potential private money investors is through your local REIA. With private investment, it's often about who not what you know. With a solid network in place, you will often find that you can come into contact or receive an introduction to someone who has available cash they want to invest.

When you have found a potential private money investor, it pays to meet with them and discuss your deal, what your plans are and how you can help them profit. The private investor is looking to see what you can offer that is unique to other prospective investments. Present a clear plan of what they can expect in return for entrusting their money to you, outlining what your plan is and how secure the proposition is. The more solid your plan is, the more confidence they will have that you are the right person with home to invest their cash.

Using private money and borrowing from private money investors is a great opportunity, particularly in the current turbulent times. Banks are much more conservative about their lending these days and when you borrow from a private lender, the process can often be much simpler than when trying to get approval from a bank. Investment in real estate necessitates rapid action to secure the deal. Private money is the perfect choice when aiming to take action quickly and achieve a positive outcome from a real estate deal.

Julian Lee - About the Author:

Julian Lee is an experienced Real Estate Investor and Internet Marketer in South Florida who actively flips properties and leverages the power of the internet to close more deals. To find out more about getting private money to flip short sales and bank owned properties, please visit http://PrivateFundsForDeals.com and register for a free report.

Secret 5- Wholesaling A Smart Real Estate Investment Strategy

Wholesaling real estate properties is similar to house flipping. Flipping houses involves purchasing real estate well below market value, fixing it up and selling it for profit. With wholesaling, investors assume the mortgage note under contract and sell the property "as-is." The new owner purchases the property for less than "after-repair" value and rehabs the house using their money.

Wholesaling can be a dream come true for real estate investors. Anyone aged 18 and up can participate in wholesale real estate transactions because there is no obligation to obtain financing. Instead, investors locate motivated sellers and sell their property to rehabbers and private investors.

There are four basic steps involved with wholesaling real estate property. Step one involves locating sellers who need to sell property quickly. This could include homeowners who are facing foreclosure, have filed for bankruptcy, own a second home they can no longer afford, or relocating to another city or state.

Once properties are located, investors negotiate the purchase price to obtain the lowest cost possible. Next, the property is placed under contract until it can be sold to a real estate investor or rehabber.

The primary objective of wholesaling houses is to quickly flip the property and turn a profit. This is best accomplished by locating distressed properties such as foreclosed homes and real estate owned (REO) properties.

A prime target for wholesale real estate is property offered as "For Sale by Owner." Most FSBO property is sold at lower prices than properties offered through a realtor. Many FSBO properties are placed on the market in order for the homeowner to avoid foreclosure.

Experts recommend seeking out real estate where homeowners provide seller carry back financing. This type of real estate transaction allows the homeowner to carry all or a portion of financing. If sellers carry 100-percent of financing, the need to obtain financing through traditional mortgage lenders is eliminated.

Wholesaling real estate property eliminates the challenges and costs generally associated with flipping properties. Investors are not required to spend money on repairs or locate qualified buyers. Instead, wholesale investors become real estate matchmakers. They locate sellers who own the types of properties buyers are looking for.

Wholesaling for quick cash can be a rewarding and profitable career choice. The Internet provides a plethora of resources which provide an abundance of information on wholesaling strategies. By understanding and implementing wholesale real estate strategies, anyone can create a profitable business that offers solutions to financially-strapped sellers.

Although the real estate market is in a slump, history shows real estate survives nearly any economic catastrophe. There has never been a better time to get started in wholesaling because this style of real estate investing provides a win-win solution to all parties involved.

Simon Volkov - About the Author:

Simon Volkov is a California real estate investor who specializes in wholesaling real estate and buying and selling discounted properties. Simon shares real estate tips, tricks and strategies via his comprehensive investment article library and offers a variety of investment properties for sale via his website at www.SimonVolkov.com.

Secret 4- Transactional Funding & Proof of Funds Letters

Transactional Funding & Proof of Funds Letters in Real Estate Investment

If you are interested in purchasing Real Estate Owned (REO) or short sale properties, then you need to understand the basics of transactional funding and proof of funds letters and how they relate to your real estate interests and activities.  Essentially, the transactional funding refers to the funds borrowed for a very short period to transfer a property from the current owner, to the transaction coordinator, then to the new owner.  Proof of funds letters are used to help secure financing and smooth the way for the real estate transactions you are involved in.

Transactional Funding

The use of transactional funding allows the short sale process to take place smoothly.  The basic premise for the loan is that once the original owner is ready to sell and the buyer is ready to take over the property (usually with a standard mortgage), there is a short term loan needed to faciliatate the transfer period.  This means that the transactional funding is a loan that exists for just a few hours, before being recovered when the final property owner pays for the property.

The two separate transactions that place on the day of settlement create a unique situation known as a double closing. Lenders like these loans as the lending period is typically just several hours.  If the transactional funding lender ensures that all the other financing for the transfer of the property is in place, this makes this short term loan delivers a relatively low risk opportunity for a profitable outcome from the provision of the short term loan.

Transactional funding works not only for the short sale scenario described above.  A savvy investor can structure the use of a short term loan to easily carry out purchases of real estate owned (REO) properties, or any other real estate transaction that is based around a double closing.

Proof of Funds Letters

When purchasing property, the buyer must provide some form of evidence that they have the funds to cover the property acquisition - this is where a proof of funds letter becomes useful. This document that the investor can use to indicate to the parties involved in a real estate transaction that you have pre-qualified to purchase the real estate.

The proof of funds letters are used to demonstrate that investors have the financial resources or means to fund a property transaction. They indicate to the other parties that your funds are legitimate and can be used for the purchase of the property. This type of document is particularly useful if you are involved in short sale transactions and REO purchases that are structured with a double closing or when using transactional funding.  They can also be used for other transactions that require documented evidence of your financial resources.

To achieve success in real estate investment, it pays to fully understand the different options available to you and how to use them to maximum advantage. Transactional funding and the use of proof of funds letters are two added 'tools' in your investment toolkit.  Once you understand how these financial opportunities can be used to the best advantage, you'll be on track to achieving financial security through real estate investment.

Julian Lee - About the Author:

Julian Lee is an experienced Real Estate Investor and Internet Marketer in South Florida who actively flips properties and leverages the power of the internet to close more deals. To find out more about getting private money to flip short sales and bank owned properties, please visit http://PrivateFundsForDeals.com and register for a free report.

Secret 3- Buying REO Properties

Buying REO Properties through Banks and Real Estate Investors

REO properties refer to real estate which is owned by the bank. REO stands for 'real estate owned' and includes residential and commercial realty that has fallen into foreclosure. The majority of bank owned foreclosures are listed for sale at discounted prices.

REO properties are often purchased for investment purposes, but can also make for a great residential home or business property. Since bank foreclosures are often priced 10- to 20-percent below market value, buyers may find it easier to obtain financing. However, many foreclosure properties require repairs so buyers must conduct due diligence to determine the true cost.

Real estate owned properties are sold through the bank's loss mitigation department. Many lenders hire real estate agents to list and show properties, but purchase offers are submitted to the servicing lender. Some banks list foreclosure real estate on their company websites, while others list properties through designated realtors.

All types of properties can become bank owned including residential homes, commercial real estate, industrial parks, apartment and condominium buildings, shopping malls, retail outlets, and vacant land. Even golf courses and bowling alleys have ended up on foreclosure lists.

Buying REO properties can sometimes be a lengthy process, particularly when attempting to negotiate the asking price. Banks typically are unwilling to accept a lower price unless buyers obtain home inspections which reveal extensive damage.

It is best to submit purchase offers for the full asking price when buying bank foreclosures; particularly if it is a property the buyer really wants. It is not uncommon for several buyers to submit offers on the same property. While everyone wants a great deal, it may not be in the best interest to try to obtain a lower price.

Bank foreclosures are sold in as-is condition and are not covered under warranty. Banks sometimes engage in repairs or renovations to improve property conditions and make the home more attractive to buyers.

Any work that is done while the property is owned by the bank is not guaranteed. Therefore, it is imperative for buyers to conduct due diligence and follow the same protocol they would if buying any other type of real estate.

One way to buy REO properties at discounted prices is to seek out private real estate investors who engage in wholesaling. Real estate wholesalers purchase bank portfolios consisting of multiple foreclosure properties. This often results in savings of 30- to 40-percent and allows investors to pass savings along to buyers while still earning a profit.

Buying houses from wholesalers eliminates the need to negotiate prices with bank loss mitigators. Buyers can often save 20-percent or more and obtain instant home equity. Even if buyers end up spending 10-percent on home improvements or property repairs, they are still getting a great deal.

Private investors who possess experience in buying and selling REO properties can be beneficial in helping buyers locate the type of property they desire. Many investors network with nationwide investment groups and can reach out to hundreds of partners with the press of their computer mouse.

Simon Volkov - About the Author:

Simon Volkov is a private real estate investor who specializes in buying and selling REO properties. He offers a variety of investment properties through his free Investors List. Obtain instant access to REO properties and real estate investment opportunities at www.SimonVolkov.com.

How To Use Roth IRA In Real Estate Investing

Traditionally, an IRA was created to save for retirement. You can also invest through your IRA and multiply your retirement savings tremendously.  At the same time, there are huge tax benefits that saves you lots of money in real estate investing.

We explore how you can build your real estate empire by investing through your roth IRA and taking advantage of the tax break.

Traditionally , the custodian of the IRA is the one that makes investing decisions.  In a traditional IRA, custodians can charge huge fees for their expertise. You therefore need a self directed IRA. You make the investing decisions in a roth IRA.   In addition, a roth IRA is cheaper because you make the decisions. You can make your real estate investments through your roth IRA.

The main advantages of a roth IRA are

1)     Roth IRA contributions are not tax deductible

2)    Withdrawals are tax free

3)    Your transactions within the roth IRA are not taxable

Since you don't get taxed on the profits your IRA makes, you save lots of money in your real estate investing deals.  What this means is that if you look for real estate investing transactions that need little capital, you can easily invest using your roth IRA with no taxes on your capital gains.  You end up accumulating lots of cash in your retirements account.  You can continue to use this cash in your real estate investing business while having a tax break that saves you lots of money.

It is important that you get familiar with the type of transactions you can do using your roth IRA and the ones you cannot. You should learn the regulations of IRA investing especially as they relate to real estate investing.

This will make you lots of money by saving on the tax benefits of using a roth IRA in real estate investing.

So how does it work?

There are many types of real estate investing, so it is impossible to give a complete over-view of how it works.  Suppose you are buying a house to flip it as a wholesale deal.   Your roth IRA will be listed as the buyer in the contract.  The earnest money will come from your IRA account.  If you assign the contract to another real estate investor, the assignment fee will go to your IRA account on closing.   In this type of transaction, you can invest $10 to $100 and make $5000 in assignment fee - money that goes to your roth IRA account tax free.

Similarly if you do lease to own transactions, you can invest little money from your IRA to acquire the deal.    If you form a land trust to manage this deal, your IRA becomes the beneficiary. This way, your IRA gets all the monthly positive cash flow.  When you eventually cash out the transaction, the money goes into your IRA.

You can then continue using this money for similar real estate investments and grow you retirement savings.

Again, this is only one example, and you should get more advice and IRA regulations and the type of transactions you can and cannot do.

Using this type of real estate investing model, you can build a huge tax free  retirement savings.  This will build your real estate investing business to new heights.

Secret 2- How to attract private money lenders for real estate investing

In the current real estate market, it is becoming more and more difficult to get financing for real estate investing deals.

For this reason, attracting private money is has become more important than ever before. This article gives you a few pointers you can use to attract private money to finance your real estate investing deals.

Depending on getting a mortgage for your real estate investing deals has become a tight game. Fannie Mae and Freddie Mac will not lend for real estate investing deals. Even hard money has become tough to get. If you do get a hard money loan, you could end up paying as much as 25% in interest and points.

It is therefore more important than ever before to attract private money lenders or investors. In some cases, only one private money investor is enough for your deals, sometimes you need more than one.

So how do you attract private money investors?

1)    Get a good real estate investing website

The first private money investor I had found me on the internet through my private money real estate investor website.

A good real estate investor website tells your story for you and convinces potential private money investors that their money is safe when invested in your deals.

Before they even get to talk to you, they already know most of the details they need to lend you money. They know how you work, and what remains is presenting your deals as you get them.

And when you present yourself to them in person or hand out business cards, your website becomes the most important presentation kit to potential private money lenders.

A good real estate investing website is recommended at the foot of this article.

2)    Group presentations

Depending on your comfort level, you can do group presentations to several potential private money lenders. This can get you several private money investors at once and can be a very powerful way of attracting private money.

3)    One on one presentations

Chances are that you must meet all your private money lenders. A one on one meeting is easy to organize and manage. I'd recommend you meet in a restaurant for a meal or breakfast where you present your program's details and benefits.

This keeps the presentation less formal and intimidating as compared to a group of people.

4)    Word of mouth

If you are doing many deals and find that you need more private money lenders, your existing private money lenders probably know friends they can recommend to you.

Whenever someone accepts to become a private money lender, you ask them how much money they have to invest in your deals. You can therefore tell if you will need to look for more private money lenders, or if only one will be enough for you.

Do not hesitate to ask if they have friends they can recommend who would like to invest their money in real estate.

5)    Existing private money lenders

As long as your existing private money lenders are getting a good return on their investment, chances are they will be more than happy to invest in more of your real estate investing deals.

Do not hesitate to present more real estate investing deals as they become available; you might not need to look for more private money investors.

Simon Macharia - About the Author:

Successful real estate investing must be driven by a ready supply of private cash available from private money lenders. Targeting these lenders requires that you convince them that their money is safely invested in your deals. Learn how you can attract investing cash through a private money website.

Secret 1- Simple Ways To Make Money

Is there something which earns you instant wealth? Do secret guides to success really work? Do these people whom you view on T.V get money so easily? Well, probably not. Easy wealth is more like getting a win in lottery which is rarely possible.

Getting wealth requires hard work and dedication. But most of all it takes an idea to become a millionaire. As stated by Emmerson "All I need is one idea", is certainly the major aspect for anybody who is looking to get rich quickly. However, with suitable focus and the proper information success is inevitable.

So, you start looking for real big ideas which will strike gold. However, where can you look for such techniques and how to get rich fast? A great way to get an excellent idea is to consult someone who is already rich. There are very few people who are likely to share such ideas but it's great if you get one. Also, looking online can provide you a chance to obtain some information on the easiest way to make money. There are many that you can locate on the internet. Some of these are tested and proven to be incredible for money generation. However, a majority of such ideas offer no real success when applied.

In this context, you search for the best place to get some great knowledge and with so many options at your discretion; you often tend to become confused. The most prominent of all such ideas is to get suitable knowledge from eBooks or guides available on the web. Your Ways to Million Dollars Opportunities - Ready on Autopilot is certainly an exceptional guide to success.

This unique eBook offers the intricate information of the most valuable ideas which offer money easily. The book offers to the readers the best methods to acquire success and become an online millionaire. The book is a great inclusion in your process of becoming a millionaire and provides simple ways to make money. It provides the adequate information on the various kinds of businesses you can invest and how well you can control your finances to make quick money.

Your hard work and skills is surely the key to success in any business or enterprise that you invest. However, it also requires the availability of an excellent way to get the most out of your investment. Your Ways to Million Dollars Opportunities - Ready on Autopilot offers the suitable information on how to earn a million by moderating your finances to turn your dreams into reality.

Walter A. Clemons - About the Author:

Becoming rich is rather difficult however, if you choose to follow the right direction, success is bound to follow. You can obtain a great insight on how to get rich fast and get settled in your life. Read Your Ways to Million Dollars Opportunities – Ready on Autopilot and reward yourself with a fabulous lifestyle forever without having to worry about your future ever again!