As an investor, having many different investment opportunities at your fingertips is both a blessing and a curse. It means more opportunities to make money but can make choosing which one to pursue tedious and difficult. With the stock market so often erratic and unpredictable, now more than ever people are looking for other ways to intelligently invest their money and diversify their investment portfolio. Real estate is one of those investment vehicles that investors are turning to for those high returns. You may be thinking to yourself that real estate is not a realistic investment for you. Rental properties and fix-and-flips are time intensive and require a hefty amount of available cash, and many real estate “crowdfunders” have high minimums and financial requirements you have to meet to invest with them. If this is you, then you may want to consider investing in Trust Deeds. Investing in Trust Deeds with a company like Ignite Funding can help you break down those barriers to real estate investing, and help you earn the returns you deserve.
Self-directed real estate IRAs have been in existence for over thirty-five years. These are the same IRA s everyone is familiar with but with a small and important twist: These plans have an investment discretion section permitting investments in real estate, notes, trust deeds, leveraged property and much more.
Between 2006 and 2014 during the depths of the Credit Crisis, there were 10 million Americans who lost their home to foreclosure over this 8-year span. Within just a few months in 2020 (March to May), we’ve seen almost 50% of that 10 million foreclosure number with at least 4.7 million mortgages delinquencies. For most Americans, the vast majority of their family’s overall net worth is tied directly to the equity in their home rather than in any stocks or other investments.
The good news is that national existing home sales climbed an all-time record +20.7% month-over-month increase between May and June 2020 partly due to fixed mortgage rates repeatedly reaching all-time record lows. In spite of record unemployment claims filings, home prices are still at or near all-time record highs in most major metropolitan regions.
If you are planning to invest in turnkey real estate development collateralized by real property, one of the top items on your due diligence check list should be to determine which mortgage theory the state follows per the location of the subject property. This understanding can be detrimental to your recovery strategy if your borrower is unable to uphold their end of the deal and defaults on the loan. Each state adheres to either title theory or lien theory, though there are a few states that follow both. In title theory states, Deeds of Trust are the binding agreements utilized between lenders and borrowers, and Mortgages are the agreements utilized in lien theory states. Both documents serve the same purpose in a real estate deal between a lender and borrower, but how they affect the relationship between the parties involved and the subject property is what makes the big difference.
When it comes to the note buyer and the homeowner, the goal is to reach some sort of agreement. As the note holder, you want to get the homeowner to come to a decision and optimally one that signifies cash flow. However, sometimes it isn’t as easy as one, two, three. Every note buyer has encountered at least one homeowner who is struggling with payments either because they just don’t have the money or claim not to have it. Nonetheless, that shouldn’t discourage you. Overcoming obstacles with homeowners really just entails gaining their trust or confidence and finding a solution with which they can comply. Think bigger than the money! If you want to succeed, your best bet is working with the homeowner. How?
In this COVID-19 climate, banks are struggling right now.
Connected Investors recently compiled a list of banks & companies motivated to liquidate houses at deep discounts going into 2021.
Today, they have allowed us to give it away!
1) Tap Here
2) Key In Your Zip
3) Get The Deal List
Want to know how to use the list?
They will be hosting a training session that shows you how to find these and other liquidated houses.
After you get the list make sure to register. This is great stuff!
If you backward engineer the income you need to provide you with the lifestyle you want, then the pond isn’t as big. If you owned 35 notes with an average UPB of $85,000, and they netted a simple return of 9%, that would make your monthly income over $22,000 a month. Now, I think I could live on that.
Now, I know there are thousands of IRA accounts out there sitting in their cash account returning very little. Even having $250,000 in notes, returning 9%, would add almost $2,000 in income. Interesting concept as one starts to contemplate lifestyle levels upon retirement, isn’t it?
So, even though the pond is big, we small fish have room to grow. And we’re growing.
It is essential that you comply with the Solo 401k contribution deadline so that you will have hassle-free and surefire benefits from the Self-Directed 401k. Sense Financial is a trusted plan provider specializing in the Individual k plan and how it can help you ensure a financially secured and stable future. You can make your retirement years financially productive and secured if you know how to maximize your retirement account.
You’ve all heard the tenant horror stories from people who have had tenants in properties, but being a landlord doesn’t have to be difficult as long as you learn some strategies for handling your tenants. My husband used to say that handling tenants was like having a group of children that you have to train and discipline. But it doesn’t have to be that difficult.
You do have to make some specific rules for your tenants and stick to them. Every time you change the rules you give your tenants the upper hand. You must also have an iron clad lease that specifically addresses the issues that you may have with tenants including getting your rent paid on time.
Image by Arek Socha from Pixabay By Fuquan Bilal Unlike first lien notes, servicing second lien notes requires less care as there is no requirement to maintain tax and insurance escrow accounts. Regardless of economic conditions, there were, are, and always will be residential mortgages in default. While pricing is low today, so are Horne […]
Image by KazuN from Pixabay By Fuquan Bilal NNG Explains How to Grow in your Business and Succeed with Notes. Some make the move from one profession into the note business, which can be quite lucrative. Is it the best choice for everyone? Not necessarily; that is for one to decide on their own. What […]
Image by Gerd Altmann from Pixabay By Fuquan Bilal Tracking Pre-Purchases in Different Ways People always stress preparation and with reason. Being organized is really the window to an organized mind. Think about it; most people feel like a mess when they are out of control or lacking control in a situations since it is […]
Image by fernando zhiminaicela from Pixabay By Kathy Kennebrook Another way Kathy Kennebrook suggests to sell properties, especially properties that need repairs is by implementing a Work For Equity Plan. This is a good way for you to get a higher dollar amount for properties that need some work instead of simply wholesaling them. This […]
In this exclusive article, we have a former cop turned real-estate mogul and Rich Dad’s ® founder, Robert Kiyosaki, on the front cover of our upcoming Realty411 issue.
We are celebrating our amazing social media real estate investing group with a NEW VIRTUAL EVENT spotlighting some of the most amazing women in the REI industry.
Image by StockSnap from Pixabay By Fuquan Bilal How do you move more of your real estate assets, faster and more profitably? We love to see all investors win. Whether you are out there on your own doing real estate deals and funneling part of your proceeds into a fund like NNG, a bank, credit […]
Image by Gino Crescoli from Pixabay By Kathy Kennebrook The other way Kathy Kennebrook offers owner financing to a buyer is by holding a small second mortgage for them for part of her profit on the deal. This is personally one of her favorite ways to sell properties. Often having this opportunity available makes it […]
Image by mibro from Pixabay By Cody Cox Have you ever played the board game Ca$hflow? This educational game was created by Robert Kiyosaki to teach financial literacy. The whole premise of the game is to get out of the Rat Race, and onto the Fast Track. To start the game, everyone is given an […]
Image par Jesse Bridgewater de Pixabay By Fuquan Bilal What’s the difference between institutionally originated mortgage notes, and seller financed notes? Which are better for investing in? Institutionally originated and seller originated mortgage notes can be substantially different from an investment perspective. They have notable differences. Yet, they can both be traded as valuable paper. […]
Image by Jens Neumann from Pixabay By Kathy Kennebrook Using a work for equity plan to sell houses or owner financing to sell properties is a good plan for getting homes sold quickly in any market especially if they need rehab. So let’s first talk about owner financing properties. I believe that owner financing is […]