Posts Tagged ‘power of leverage’

How To Obtain Funding For Real Estate

Monday, June 8th, 2015

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Beginning real estate investors are often excited to enter the field, but many don’t have the necessary funding to take action.  Many of these investors simply fall by the wayside, as they realize that they will never be able to purchase a real estate investment.  Those investors who understand the power of leverage and have a small amount of liquid capital should find a way to take full advantage of a real estate investment.  Here we will go over the different funding options that new real estate investors can use to purchase real estate.

Real estate is one of the most expensive investments that can be purchased and many beginning real estate investors believe that they will need the entire purchase price upfront.  However, real estate offers some benefits that other investments don’t, like financial leverage.  Those investors who have a solid credit rating and are able to borrow money from a lending institution should be able to purchase a real estate investment, if they have the necessary down payment.  Since this down payment is generally about 20%-35%, prepare to have this capital on hand.

In order to obtain funding for real estate, investors should consult with a lending institution and obtain a pre approval letter for a loan.  This will allow them to focus on properties that are within their budget and convince the seller of a particular property that they are serious about their offer.  These investors should perform the necessary due diligence to find the absolute best property and take advantage of lender financing in order to capitalize on such an investment.

Investors who are unable to obtain funding for real estate through a typical loan can consider other options.  Obviously, investors can purchase a property with cash, if they have the liquid capital required to do so.  Investors can also talk to private lenders around the area and ask them if they would be willing to borrow the capital.  At a last resort, investors can work with hard moneylenders, who will generally loan the capital, if an investor contributes a significant down payment and accepts the steep interest rate that is typical with this type of loan.  In general, only investors who are looking to purchase a property and flip it relatively quickly, after rehab, have the potential to benefit from hard moneylenders.

Investors who understand how to obtain funding for real estate should be able to capitalize on their first investment in the field without worrying about having to pay the entire purchase price upfront.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

Utilize The Power Of Leverage In The Real Estate Field

Monday, April 21st, 2014

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Real estate investments are unlike any other investment because real estate is the only investment where one can leverage money and time.  In the real estate field, the rich get richer and don’t have to use their own money to do so.  Investors who understand the benefits of securing a mortgage to invest in real estate are able to capitalize on the power of leverage.  Real estate investors also leverage their time and let other people take care of the mundane aspects of the business.  In real estate, it pays to work smarter, not harder.

In order to properly use the power of leverage in the real estate field, one must have the necessary liquid capital and credit to do so.  Since banks are generally willing to finance real estate deals for an investor who has proven their credit worthiness, investors should take full advantage in order to enter the real estate field with the least amount of financial risk.

In order to utilize the power of leverage, visit the lending institutions in the area and obtain a preapproval letter from them.  This will inform an investor how much they are approved for and will enable them to focus on properties that are located in their price range.  When dealing with sellers, use this preapproval letter so they understand the seriousness of the deal.

Then nice thing about using the power of leverage in the real estate field is that an investor doesn’t have to place their 100% of their liquid capital into an investment.  Instead, they are putting their credit rating on the line and can use their liquid capital to improve their property or handle emergency issues.  This will enable an investor to get through the hard times without worrying about defaulting on their mortgage.

Investors who have secured a rental property can use the power of leverage in a number of ways.  These investors can also leverage their time, if they choose to hire a property management company that can handle the day-to-day activity at a rental.  The nice thing about this is that an investor doesn’t have to dedicate their every waking hour to performing maintenance and handling tenant issues.  These property management companies are not cheap, but they will enable an investor avoid the headaches that go along with owning and operating a rental.

Investors who use the power of leverage in the real estate field are the ones who are benefiting to the greatest degree.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.