Making money through real estate investing can be afickle business. Here's a surprising trend that can putmoney into your pocket.
Traditionally those of us who own rental property lookedupon condos as competition. They offered a relativelylow cost way for renters to move into home ownership.
This demand for condos has fooled many of us. With lowrates of interest on home loans and plenty of moneyavailable... the logical expectation would be that insteadof buying condos, buyers would move into the single family homemarket.
Of course... many of them have done that and home prices continuein an upward trend in many areas. But thousands are choosing condosrather than a detached home.
The National Association of Realtors reports that condosales averaged less than 200,000 annually in the 1980s.That number jumped to 500,000 in the 1990s... and overthe last three years has rocketed to over 800 Cheap James Neal Jersey ,000 sales eachyear.
Take note of this.... In quarter number two of 2004,condo sales nearly hit the 1 million mark.
Right now the condo market is hot in most parts of thecountry. Prices have reached record levels andcontinue to climb.
While condo values go up... the rental market has gone soft.That has prompted many of the biggest apartment owners tobegin converting apartment complexes into condos.
They are converting their own complexes while looking forother existing buildings to buy and convert.
The business has become so profitable that many of thesebig guys are slowly moving out of the apartment businessby either converting owned properties, buying others... orbuilding new condo developments.
This is a wake up call for the small real estate investor.Start looking for motivated condo owners!
But watch out for this! Many lenders will stop financingcondos if the percentage of non-owner occupied units buildingreaches a level they consider dangerous. This means that youcould have trouble selling units you own at some time inthe future if you're not careful.
Stay in touch with the condo association andbe ready to move quickly if too many investors are buyingunits in the development.
You can use most of the same tactics you use to buy singlefamily homes with condos.
Two of the most powerful tools are leaseoptions and buying"subject to" Click Here
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So, your bank had just turned you down for a mortgage application. The same thing also happened Cheap Vegas Golden Knights Hats , when you went to other banks in your area. How can those banking people be so blind? Don't they see that you are a hard working person? That you intend to repay them every penny?
That blemish on your credit report was a mistake. A greedy landlord reported you as a no-pay to the credit bureau, when all you were trying to do was to collect the money for repairs, which the owner himself should have done in a first place. You should probably have taken him to a court, but who has time or money for lawyers?
Anyway Cheap Vegas Golden Knights Hoodies , in today's rising real estate market your new home should pay for itself in a very short time. Especially with the improvements you intend to do yourself. All you need is someone to lend you a mortgage, otherwise other buyers will snap this terrific opportunity.
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Be careful, most of the alternative lenders are not in a charity business. The banks usually sell your mortgage on the secondary market to investment funds. They do it on the strength of your credit report. That is the reason they are so inflexible on this subject.
What will those alternative lenders do? Where they get the money to lend you? Some of them are predators. You might discover that they are in dire need to turn a quick profit of their own Cheap Vegas Golden Knights Jerseys , since they themselves had borrowed the money. You might discover it sooner than you had anticipated.
First clue for future surprises might come at the closing. They suddenly hit you with a lot of additional costs. After all, they say, you are a bad credit risk, so we have to work harder for you. So what Cheap Alex Tuch Hat , you say, the banks can hit you with additional costs just as well.
Yes, but this time you already had agreed to pay higher interest rate together with a larger down payment. That already overstretched your financial resources to the limit, and those unexpected closing costs may just pull you over the brink. You have no more money left.
The lenders are unexpectedly nice about this matter. In exchange for some more contracts for you to sign Cheap Nate Schmidt Hat , they provide you with an additional bridge loan. What you don't realize at this moment - you might find yourself in a technical default even before you start your payments. And the pressure to pay already starts to build up.
Never mind, you say. The raising value of the house will pay for everything. All you need is to complete those repairs and put it back on the market. "Those lenders are not stupid", - you say: "They should understand that as soon as I sell my house, I will be able to pay everything back. The market will continue to move up. The house will increase in price. I will have the profits."
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30.11.2019 10:47
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