Land contracts were very popular in the late 1970s and early 1980s. Back then, installment sale contracts, sometimes called contracts for deed, offered more attractive financing terms over the higher rates and rigid qualification standards of institutional lenders. Land contracts began to disappear when loan requirements softened and rates dropped below 8%. But they have not vanished all together and, in fact, tiptoed back into the market in 2006. Now, in this bear market, they are an excellent investment strategy to employ.
There is an recent article I found in the New York times, “Program Will Pay Homeowners to Sell at a Loss.” In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.
The U.S. government is taking action to speed the resale of foreclosed properties by temporarily expanding access to Federal Housing Administration mortgage insurance, U.S. housing officials said.
I often receive calls from buyers with lots of cash but nothing to buy from banks.There’s a lot of shared frustration for investors trying to find good discounted bank deals. Unfortunately, the opportunities to buy from institutions have dwindled to almost none from a year ago. Everyone wants California, Nevada, and Arizona at 60% – 65% but these discounts no longer exist. If you try buying from the banks today or Freddie/Fannie Mac, you can expect discounts of between 76% to 82%. But there are groups of investors who have devised some creative ways to get those discounts between 60% to 70%.
For many investors, the very first question to ask before they buy is, “do I stay local or go national?” Of course new investors will always want to focus locally while the more experience investors look at both local and national markets. It really depends on your comfort level, your experience, and personal resources.
In the old days, buying at auction at the county courthouse was usually an excercise in futility. Bank representatives were bidding up their properties close to FMV or simply bidding up to the amount owed on the note. Banks took back the properties, put them on the market and within a few weeks sold the property and recouped nearly the full amount of the forclosed note. These days, home values have plummeted and values are so depressed that banks are simply taking the highest price bid at the auction offered by investors and selling them off. The auction sales price is typically a fraction of what the previous note was and well under market value. It’s like stealing candy from a baby.
When setting up your real estate investment services, there are several corporate structures you must choose from. Selecting the right one is crtical to your success. We examine the pros and cons of each one.
Throughout a bull and bear market, there is always one real estate investment strategy that has always worked for me, wholesaling. It is certainly not without its share of challenges but done effectively, it can provide you with a very nice return without the risks and responsibility of taking title. So how does wholesaling compare with other investment strategies? We discuss the pros and cons.
There is a lot of chatter about buying REOs and foreclosures, making a fortune in real estate, and getting rich quick. A lot of big promises and under-developed plans. How do you protect yourself? Where should you put your money? What type of properties should you invest in? What should your exit strategy be? There is one program that addresses all of these concerns offering a safe, secure and steady cash flow opportunity with a solid exit strategy. It’s called contract for deed property programs. These programs offer affordable entry level prices for under $35,000; guaranteed monthly cash flow; no rehabbing; ancillary services such as sales and marketing, doc prep, inspections, property management and refinance services; and most importantly; 50% to 60% ROI or more. Let’s look more closely how this program work.
These days, it seems the discount pricing is simply unbelievable. It’s mind boggling that houses are available for under $10,000. With any buy, comes risk and you know the old saying, “cheap can be expensive.” The experienced buyers know exactly what they are buying and what they plan on doing with them after acquisition. Simply put, you need to know what your exit strategy well be before you stroke that check.
