Being told “no” by a bank when you have non-W2 income for less than 2 years is a common story. Unfortunately, banks have to set up a stringent credit policy and adhere to it in order to keep federal and state regulators off of their back. That policy is going to be universal, but there are ways around it.
Cosigners, Co-Makers, and Hypothecation Read More »
A general durable power of attorney is a key part of estate planning. Wills and trusts are usually the first things that come to mind as an individual considers their estate plan or potential estate plan, but the importance of having thorough and detailed power attorney documents cannot be overstated.
What is a General Durable Power of Attorney? Read More »
I never learned to read. Well, it seems that way. As a long time banker, I tend to get right down to the numbers. Whenever a business owner spends a long period of time polishing their prose in a business plan, I must be honest, I skip it and head straight to the financials.
Bankers and Business Plans Read More »
There are two types of people in this world…those that pull into a parking space and ones that back into it. I’ve never understood the need to back into a parking place, but I always back into my offer prices when it comes to real estate investing. I’m often asked how I come up with my offer prices. Well, let me tell you how I do it.
Back into the Parking Space Read More »
In real estate investing, blankets aren’t something that keeps you warm. When an investor owns several properties, a lender might give them one loan and use several or all of their properties as collateral. When the mortgage/deed of trust “blankets” all of the properties, that is known as a “Blanket Mortgage/Deed of Trust.”
What About Blankets? Read More »
Taking out a loan against your primary residence could benefit your tax situation in a couple of ways, but you should talk with your tax advisor. Full disclosure…although my degree was in accounting 30 years ago, I have never practiced as an accountant. Be sure to talk with your tax advisor for what I am about to tell you.
Investing and Taxes Read More »
We often here from members that they are unsure of using hard money and equity lines as a way to finance flips. I was a banker for over 25 years before leaving to do what I am doing now. Back in my banking days, I did many HELOCs for real estate investors. I’ve also worked with many investors that use hard money.
HELOCs and Hard Money Read More »
Finding the right realtor proved to be a challenge for us as well. When Castle Rock first started, I quickly realized that the realtors that we were using simply slapped our listing on the MLS, put a lock box on the house, and showed up at the closing to collect their check. What really got my goat was when I saw that the realtors were making more money on our projects than I was.
What to Expect from a Great Realtor Read More »
Risk is a part of investing. Without risk takers, America would not be where it is today. Real Estate Investing, Loan Investing, and Private Lending are no exceptions to that rule. It’s why the National Institute of Lending and Real Estate exists…to help investors build wealth while mitigating the downside risk to their portfolios as much as possible. Before you start your journey into the world of real estate-based investing, you need to understand that risk and sacrifice are a large part of our business.
Risk and Sacrifice Read More »
An investor asked us about a property that they were bidding on that had been on the market for several months. They made their offer only to be told by the listing agent that there were now multiple offers on the property and they wanted everyone’s highest and best offer by a certain date. The investor questioned whether there truly were multiple offers or not and what course of action they should take.
Multiple Offers and “Highest and Best” Read More »
Not all deeds are the same. When property is transferred, the language in each deed will provide certain warranties from the seller. It’s important to understand the types of deeds that are out there as you might not be getting the protections that you deserve with some deeds. In this article, we are going to discuss three common types of deeds and what they generally cover.
Not All Deeds are Created the Same Read More »
A prequalification letter from a lender isn’t worth the paper that its printed on. I know that sounds harsh, but it’s true. When you list that property for sale and you are trying to determine which offer you should choose, it’s not all about price. Close-ability is also a huge consideration. Can and will the prospective buyer actually sign the closing documents? Will their lender actually approve the deal?
The Prequalification Predicament Read More »
Perhaps the #1 factor that goes into making a profit or taking a loss is controlling your costs. Whether you are purchasing a nonperforming loan or a property to flip, it’s all about the math. Regardless of how well you rehab and present a property, you are still limited by the local market with respect to the amount you can sell the property for. Cost controls are essential for hitting your profit goals.
Mind Your Nickels and Dimes Read More »
A few years ago, we had the opportunity to purchase a nonperforming note in Columbia, Missouri. Once upon a time I worked for a financial institution in the town, so I knew it well. The due diligence file provided by the seller had a Broker’s Price Opinion that showed a very nice little house that could provide us with a nice return on investment.
Do Your Own Homework Read More »
It’s hard to get started in real estate-based investing. You have to raise capital, form a business entity, find property or loan opportunities, find lenders, find contractors, find real estate agents, negotiate prices, and on and on. Where to begin or how to scale up can be confusing. It’s hard to figure out where to turn.
The Institute Announces New Programs Read More »
If you’ve ever searched for homes on line, you know the feeling of looking at the interior pictures of a property and falling in love with it, but when you pull up to the property itself, you cringe. First impressions mean a great deal. You can spend all you want on updating a property, but if the outside looks like the Munster’s home, you can be losing potential buyers before they even get through the front door.
First Impressions Mean A Lot Read More »
It’s standard practice within the note industry to obtain a Broker’s Price Opinion, or BPO, to place a value on a property within an investor’s portfolio. When selling a note, it is expected from buyers that a BPO will be in the offering package, but how accurate are BPOs and do they add value to an investor when making a decision on buying a loan?
The 4 Ways that Lenders Make Money Read More »
It’s standard practice within the note industry to obtain a Broker’s Price Opinion, or BPO, to place a value on a property within an investor’s portfolio. When selling a note, it is expected from buyers that a BPO will be in the offering package, but how accurate are BPOs and do they add value to an investor when making a decision on buying a loan?
BPOs and Property Condition Reports Read More »
Many, if not most people, dream of building financial independence through real estate investment. The vast majority of people that want to start investing don’t have enough money in the coffers to buy their first property outright. Banks usually aren’t willing to finance a fix-n-flipper or, as one banker put it, “a rental jockey.” Hard money is usually where people turn to start building their dream, but what is the impact of borrowing on real estate investments?
The Good and Bad of Leverage Read More »
The Institute’s own Doug Smith will be speaking this week at IMN’s “NPLs, Notes, and Default Servicing Forum” at the Ritz Carlton in Fort Lauderdale Florida on Monday, February 10th and Tuesday, February 11th. IMN is excited to return to Fort Lauderdale, Florida on February 10-11, for our next NPLs, Notes & Default Servicing Forum.
Doug Smith Speaks at IMN Conference Read More »
You’ve just starting look for properties and you find a real estate agent that is willing to work with you, but they produce an exclusivity agreement that prohibits you from working with other agents. Is that something that is normal? Does every agent ask you to sign this kind of agreement?
Exclusivity Agreements and Real Estate Agents Read More »
It seems that it is becoming more and more difficult to find great properties to purchase to flip or rehab and rent. Anything that hits the MLS that is priced appropriately seems to fly off to an investor. If you are struggling to find properties to purchase, you are not alone. It’s the times we live in.
5 Tips to Dealing With Wholesalers Read More »
Buying foreclosure homes at auction can be one of the most frustrating things that you do as an investor. It can also be very lucrative. The foreclosure laws are very different in each state. We’ve purchased most of our foreclosure homes…
Perhaps the biggest single expense that will make or break a real estate investment is the roof. Can you let it slide with what is currently on the house or do you have to replace it? That’s a very good question. The answer is quite simple…it depends.
To Roof or Not to Roof? Read More »
It all comes down to modeling. No, I’m not talking about walking down the runway in a ball gown…I’m talking about putting together a spreadsheet that allows you to enter a handful of variables like purchase price, renovation budget, closing costs, and other costs that we have historically encountered on our deals.
You Should Start Modeling Read More »
