Colli Real Estate

Housing bubble

The economy can not be better for some people. Why? Because they are able to benefit from the implosion of today's price. Reducing the value of today have not been as good since the 1980s. For some, it is even better than that.

Think about it. Low interest rates. Buy a great motivation. Fewer buyers. Low prices. Government rebates. Tax incentives. You can not ask for a better climate to do a lot of money quickly. It is a bubble negative will not last forever. Negative makes prices down further and higher profits. I take this and you should too!

Why are people fleeing in the housing sector if it is so great? Just out of fear. They do not know what happens. Hear the news and all bad. Do not look beyond the headlines to see the possibility. Have you ever heard this kind are taken by the non-conformist? These brave men are those who address the fundamental principles the economy, then find the industries with more than average losses and the excess of purchase.

Think Warren Buffet. He made a fortune doing just that. They know that when the economy will grow again that the sector will recover more quickly and that the rest of the economy.

So what I do in this economy? Well, I had over 33 years experience in real estate. I bought, sold and maintained commercial apartments, single-family and land. Some items below:

1) I think conclusion is the key to long-term wealth.

2) The housing is great, because it is the least risky of all real estate. After all, everyone needs a shell. Err … house.

So now you know what to buy to succeed in this economy (And all others forever). Then you need to know where to buy, what to buy, how much to pay, and where to get money to do so.

These are key questions that relate to any business. You may even think you know these answers. What has been missing for most investors is a plan duplicated that addresses all the questions, guides you through the entire process, and delivery benefits.

First, we discuss where buy. I think most people can build a business in your own backyard. This means that there are at least two quarters in a 5 mile radius of your home that are good way priced houses. The median price for their market. This is important because the cash flows will be.

Secondly, the question of what to buy what I call the plan of our business street smart. Pretty houses in neighborhoods that people very very nice with checkbooks invites. Eventually my plan is to sell houses to clients who live there. More on that later.

In Third, how much to pay. This is where skills come in. Sure, you can duke to all investors to buy foreclosure and on Court steps, but is a very dangerous place to start and you need all the cash. Instead, look for other ways to find deals that I can buy at a price and be in control of the process. I can evaluate the property, status, date of closing and even financing. Skills and the tools we have created for this update delivery process you need to make a profit.

The fourth is to know where to find money. Welcome to my "seller's bank," program. With proper training is that sellers will be its partners in the process. Know good words to say, you are allowed to resume payments on their loans. Not only that, but to resume the vendor financing for the difference. I'd never be able to do that if I concentrated on the purchase of exclusion measures court or offer to sell short.

Of course, if this happens repeatedly you need a plan. It should include specific training and vocational training necessary documents to tie their benefits and protection centers. This is a key business strategy that many investors miss. They improvise and wait better and failure.

How to get the properties sold in this economy, you must have a plan for that. Is the next step in my plan to make more money with less effort than you pay for many years to come.

We offer our properties on a rent to own program. We offer our customers a maximum of three years to purchase, lease, give credit for payments on time and ensure funding and if so decided by us to do. Friends, there is a huge market of people who would like to have a house. They are bad, bad or no credit. They will pay the price for the right to build your credit with you. Some people call the tenants. Yes, the same people looking to rent to owning a home one day if only chance.

Imagine all the problems it solves. The tenant (we call customers) feel it is their home and treat the house and quite different. Not only that, but they pay for the first time for them to win income for the purchase.

Here is an example of a real company. My clients, making the street smart training offers, like regularly.

A lady had inherited a house. She lived there. She had a brother and I bought their participation over several years before obtaining a loan of 50% of the value, then give the money to him.

Now it had liquidity problems as their had reduced their work hours. She could not pay the mortgage and worse each time she returned home cost money – the taxes, insurance, new roof, heating water, new privacy fence, etc. Then she tried to sell and move into an apartment that was no maintenance problems.

She knew the property was worth at least $ 160,000. She was ready to make a go of it away quickly. Thanks to my seller is the bank's philosophy and words appropriate to make him feel at ease, she made the right decision here's the deal, she decided:

1) the purchase price of $ 130,000, funded from the following:

2) existing 75,300 loans resume payments of $ 454.24 per month (interest rate 5.5%)

3) 45,000 by paying $ 300 per month until paid (without interest)

4) from 8000, which paid all closing costs.

To realize the reason is a good case must be compared to a traditional loan. As this is a real estate investor, generally the interest rate are higher that for a principal residence. If you can not get a loan, that rate would be 7%, 30-year fixed rate. Now the market today, not $ 8,000 would be acceptable to a lender. They want to see at least 20% down. This means that you must achieve $ 26,000 in cash (at least) in the property investment.

Not only that, but she would pay loan points, loan closing costs of about 3% … or $ 3,660 in cash. Thus, the traditional way that investors buy the most secure $ 29,660 in cash and must make a payment of $ 691.92 for next 30 years, a total of $ 249,272.42.

Because of my IS "seller's bank," the program that I can repay the loan of $ 300 MAIN months uninteresting. The loan makes payments in 150, or 12.5 years, with payments beginning 3 months after purchase. The loan was made is dependent 26 consecutive years. This means that my cost of funds totaling $ 197,448.32, a savings of $ 81,484.41. Not only that, but I did not need credit because the seller is the bank and property is the collateral for the loan. In addition, there will be a cash economy and no closing costs. Hooray! Many figures, but read this way again. same case, two different offers. Do you like this plan better?

Incidentally, almost every type of investor is happy to have a house for $ 160,000 to $ 130,000, even if they must go to the bank to get money. Therefore, the cost of funding is the top savings equity to be won.

With the right strategy and has been able to offer additional benefits to make as much of an agreement that most investors earn in 6 to 8 bids.

Now let us consider the exit strategy. I sold my work for equity "program in which I give my credit to your buyer deposit if they do painting and repairs. So I had no cash outlay.

They put $ 15,000 down and came to a payment of $ 1,300 per month rent. They agreed to a purchase price of $ 169.900. This is a cash flow of $ 546 per month, which will increase due inflation and increased again when my loan worth $ 300 per month of 12.5 years. And of course, all my expenses included more put money in the pocket as well.

So now you can see the profit centers at the time of purchase:

1) no problems credit. I had to use my credit to be eligible for the loan

2) No bank financing

3) No charge Loan origination

4) No loan closing costs

5) No loan 30 years

6) Do not qualify for loan delays

7) short-term cost of funds

low payment (many times its non-payment and, in some cases, Buyer pays U.S. to buy)

9) Opportunities for more profit if the seller later decides to sell your note seller financing at a price

10) Nice house, nice area that people with checkbooks highly desirable.

Now look profit centers in the sale:

1) Available from the buyer (more than a security deposit)

2) No reimbursement. You do not have to return the deposit (payment option) instead of having to return a security deposit

3) Do not just. Perhaps the client is able to take over "as is" saving time and cost of fixing

4) flow as a rental income fund is hundreds of dollars per month higher than the payment to the seller or the bank

5) the costs of their pocket. Use the payment of rent and tenant to pay the cost of funding is based

6) Less stress. You have a happy customer who gave him a real expediency

7) Increase in business. Get references from potential clients allows you to create a list of buyers

Less repair costs. You have an owner who takes responsibility for training of maintenance and minor repairs

9) Less worries collection. You have a client who has a financial improvement and incentive pay for life

10) You have the best of both worlds. If you buy … Yes You sell at your price and paid the closing costs. If you do not buy … yes You get well again and learn to do it all again. Anyway, you win.

All this fits very well in my business philosophy … we help people when we buy, we help people when they sell. We solve problems and suppliers of sleep.

There you have it. Rather be in the business of real estate to be taught in the financing of businesses. We use easy to learn the skills for creative seller financing to buy, and offer creative financing to our buyers when they are sold and made a strong mark in the middle.

I hope you enjoy this vision of how to thrive in today's economy. This business model has worked for me in all the economic shocks. The bubble becomes a negative time that can prosper far more than usual because of low interest rates, concerns about the market, offering high houses and willing sellers.

Over the past 25 years, I designed a process with all the tools, training, technology and training and coaching team to share this method with others. This process works and has led many to become millionaires in a short time because they were wise enough to understand that the adoption of another process has already developed smarter than trying to create their own. Now I have users and enthusiasts of the system 50 states and 15 foreign countries. You can create a business long-term observation is very profitable for you and your family. Read it again and see if it is good for you.

Louis Brown speaks in the CT REIA Monthly Meeting in September Connecticut Real Estate Investors Association. It will also be teaching a one day seminar September 27, 2009. For more information, visit http://www.ctreia.com

To your success,

Lu Brown
Founder, Street Smart Systems

About the Author

The CT REIA is the largest real estate investors & apartment owners association in the Northeast and its mission is to provide educational and networking opportunities as well as business-to-business opportunities for entrepreneurs in the real estate investment community.

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