Tag Archives: real
Bridging the gap between learning and doing
Have you attended seminars, read and learned about real estate? Are you one of the many with nothing to show for it? Have you paid thousands for seminars and coaching but have still yet to do a deal? Do you love the potential real estate investing offers and the resulting lifestyle? Do you get excited?
It is easy to get excited and learn as much about real estate theory as you can. Now applying that knowledge is the tricky part. Have you heard that only 4% of seminar attendees actually do something with their new knowledge? Why are 24/25 people paying thousands of dollars and getting nothing out of it? The answers may surprise you, but best of all this can be overcome so the majority become successful implementing the material.
Do something – First off, some attendees are there because they got excited. They made an emotional purchase and think that deals and money will be thrown at them with zero effort and zero commitment. So the number one thing to bridge the gap between learning and doing is DO SOMETHING and COMMIT!
Have a plan Take what you have learned and create a very focused strategy and become a master at that strategy. If you only have 10 hours a week, avoid spending 2 hours on 5 strategies and spend all 10 on one killer strategy. You will become an expert.
Find a mentor or partner Find an expert in your strategy that will partner, coach, mentor and guide you towards success.
Have goals It is easy to push this off until next year, or until the kids are not in school or until your big project at work is done. That is not commitment. Write down what it will take to achieve your goals as daily tasks and complete them every day. You will be amazed by what you will accomplish by staying committed to your goals and to do list.
Pick the right strategy Pick a strategy that you can successfully master, mitigate risk and duplicate over and over. Delegate and create a system so you can really duplicate.
Delegate Time a problem, get an assistant or virtual assistant. Have them generate leads and do all the work you do not have time for. If a task does not absolutely positively need your expertise to do it, then delegate.
Real Return Real Estate for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site
Hard money lenders explained
I recently attended a real estate investment seminar in Las Vegas. Between speeches by different gurus I would mingle with other investors and explain that I owned a hard money brokerage firm. Even though it has been around for almost a hundred years now, I was amazed how hard money lenders still seem to be mysterious to many investors. They either did not understand how the hard money lending industry worked or had heard that it was something they should avoid like the plague.
To put it simply, hard money loans are short term loans that are used for various real estate projects. The most common projects are house flipping, but they are also used in commercial construction and land development. Essentially, a hard money loan is often the best choice for money that is needed on a short term basis.
Unlike conventional financing, a hard money loan also known as a private loan originates from a private individual or institution unlike a bank. The loans are generally short term between 6 and 12 months and have a high, interest only payment generally between 10% and 14%
Another major difference between a hard money loan and a conventional loan is that a hard money loan is not based on a persons credit but instead on the value of the project after its completion. A good example is if John has a house that he wishes to rehab and sell for $100,000.00 a hard money lender will lend up to $65,000.00. This is what is known as Loan to Value or LTV. Most hard money lenders lend anywhere from 55% to 70% LTV depending upon what type of project the borrower has.
Now you are probably asking yourself what the catch is, how do these lenders make there money? Hard money lenders make there money 3 different ways. The first way they make there money is the closing costs. These are anywhere from 1 to 4 percentage points of the overall loan. These points are paid when the loan is completely paid off in full. The second way they make there money is the interest only monthly payments on the loan which is anywhere from 10% to 14%. The third way they make there money is if the borrower happens to default on the loan. Being as the loan is not based on the persons credit, hard money loans are secured by the property itself. If a borrower defaults, the hard money lender now has a property or piece of land for 65% of what it is worth. However, it should be stated that this rarely occurs as most hard money lenders are not in the business of foreclosing on properties.
So should a borrower use a hard money lender? The simple answer is if a borrower has a real estate project that needs short term financing that a conventional bank will not lend on, yes.