Private Real Estate Money

Recession-Proof Your Financial Life A Financial Survival Guide for an Economy in Free Fall Bestselling personal-finance author Nancy Dunnan offers back-to-basicsadvice to ease the financial squeeze of our troubled economy. With more than 150 tips and resources to help you survive the recession andcome out on top, Recession-Proof Your Financial Life- provides key backgroundinformation plus the critical questions you need to answer in…

Private Real Estate Money

Real Estate: Hot Properties In A Cool Market

Real estate investors spend the majority of their time in search of “hot” properties. In today’s cool real estate market, locating profitable properties might seem impossible. However, there is still plenty of money to be made in the real estate investment game.

In the past, hot real estate properties consisted of homes with oceanfront or mountain views. Recently, house flipping has been portrayed as the ultimate money-maker for investors motivated to renovate distressed properties.

Foreclosure homes and bank owned real estate can oftentimes be purchased significantly under market value. Investing time, money and physical labor in repairs and renovations can result in huge profits, if you know what you are doing.

Homes and condominiums located in gated and golf communities are another source of hot real estate properties. As more Baby Boomers reach the age of retirement, they are seeking second homes either for retirement or vacation purposes. Many of them are opting to purchase real estate in activity-based communities geared toward retirees.

One of the lesser known, but exceptionally “hot” real estate markets is that of sustainable living communities. Also referred to as “green” or “enviro-friendly” real estate, sustainable living homes are manufactured from recycled materials and powered by alternative energy sources such as windmills and solar panels.

Many sustainable living communities are self-contained cities or towns. Retail and grocery stores, recreational facilities, post offices and schools are located within the community. The majority of sustainable living communities have their own local government, police and fire stations, hospitals and medical facilities.

Investing in sustainable living real estate offers the potential for substantial profit. Not only is environmentally-friendly real estate expected to significantly appreciate within the next five to ten years, there are currently many tax credits available to investors who purchase energy-efficient homes. These properties make excellent rental properties and tend to attract tenants who are financially responsible.

Commercial real estate and land can be quite lucrative investments. Investing in vacant office buildings, retail outlets and land can yield a tidy profit if you take time to conduct research to analyze future market trends.

The U.S. Government offers numerous tax incentives on commercial properties; particularly if they are developed to bring new jobs to the area. This type of real estate transaction requires extensive knowledge; therefore it is advised to work with knowledgeable advisors who can guide you through the process.

Last, but not least, one of the hottest real estate market investments is that of purchasing distressed properties sold through private investors. A little known secret is to seek out private real estate investors who purchase bank-owned foreclosure property portfolios.

Investors who purchase bank portfolios in bulk are able to purchase houses and other distressed properties at wholesale prices. Depending on the condition and location of bank owned foreclosures, investors can sometimes purchase them for as little as 30-cents on the dollar. However, these deals are rare. Instead, the average cost if closer to 70-cents on the dollar.

When investors purchase in bulk they are eager to pass their savings along to interested buyers. In order to obtain these low-ball prices, most investors require buyers to have cash-in-hand at the time they make an offer. This allows buyers to close the deal in a matter of days instead of weeks. The buyer can then renovate the foreclosure real estate and resell quickly. In some cases, a buyer can make 30- to 40-percent profit within 90 days or less.

Although the real estate market is currently cool, there are plenty of hot deals to be found in real estate investing. However, you need to frequently research and review real estate market trends if you want to stay on top of the game. The more you know about how the real estate market works, the better off you will be when it comes time to buy or sell.

About the Author

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private party investor loan for real estate?

hi im a first time home buyer and would like to buy a 50k condo. i have a friend who’s friend has money in the bank who is willing to loan me 50k for a condo at 9% interest rate for 5 years. can i buy a condo like this. any advice on experiences would be appreciated

Yes, this can work. You get the money to pay cash. Cash offers get the best counter-offers from home-sellers. The friend gets a much better interest rate than if he left the money in the bank.
There are some problem areas. It has happened that the “friend” changes his mind on closing day. You are sitting at the title company waiting for your 50K and it does not arrive. When you call to ask him, he either avoids your call or he says he changed his mind. YOu will lose your earnest money. There is almost no way to stop this from happening because he won’t want to loan you the money prior to your ownership of the condo.
2nd problem is if you are not able to get a loan in 5 years. This happens a lot. The condo has too many rental units and banks refuse to loan. You would have to have a back-up plan to get him 50K.

Private Money Real Estate Investing – Q&A From Costa Rica with Chris Yates – Week 2 (Part 2)

Recession-Proof Your Financial Life A Financial Survival Guide for an Economy in Free Fall Bestselling personal-finance author Nancy Dunnan offers back-to-basicsadvice to ease the financial squeeze of our troubled economy. With more than 150 tips and resources to help you survive the recession andcome out on top, Recession-Proof Your Financial Life- provides key backgroundinformation plus the critical questions you need to answer in…

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