November 2010 Monthly Archive
November 24, 2010 | Comments: 1
Before implementing real estate investing strategies, investors should have a solid plan in place. Doing so can help investors determine which types of properties are best suited for their investing style and the goals they want to achieve.
Planning the types of real estate investing strategies requires research and networking with investors who have achieved success. One place to locate other investors is through real estate clubs or online networking groups. Networking with others can save hours of time and lessen the potential of gathering information from those more interested in selling their investing secrets instead of helping others succeed.
November 15, 2010
Did you know most bankruptcy plans fail within the first year? The reason being is new bankruptcy laws require the majority of bankruptcy petitioners to enter into a payment plan under Chapter 13. Debtors are often required to contribute as much as 60-percent of disposable income to pay off reorganized debts.
Another reason most bankruptcy plans fail is because petitioners do not understand what happens if they do not adhere to their Chapter 13 payment plan. New bankruptcy laws took effect in 2005 under the Bankruptcy Abuse Prevention and Consumer Protection Act. These laws are extremely restrictive and leave petitioners little room for error. One missed payment can result in bankruptcy dismissal.
November 08, 2010 | Comments: 1
Property investment refers to real estate which is purchased for the purpose of making money. Investors can buy all types of properties such as residential homes, commercial real estate, or vacant land. When homeowners buy a house they are also making an investment. As the property value increases, homeowners accrue home equity which can be borrowed against.
The type of property investment will depend on the needs of the investor. Investors who buy homes can use the property to generate rental income, for house flipping, or to offer with owner-financing such as seller carry back mortgages or lease purchase agreements
November 03, 2010 | Comments: 2
Take over payments refers to a strategy used to buy real estate with no money down. Assuming home mortgage loan payments is a relatively common practice amongst real estate investors, but individual buyers can participate in this home buying strategy as well.
Take over payments is known as Subject To and involves transferring property rights while leaving the loan intact. The property rights are 'subject to' fulfillment of the contract. One crucial aspect of Subject To sales is most mortgage loans include a 'due on sale' clause which grants banks the right to demand payment in full when property is sold.