Foreclosure investing is actually quite not quite as difficult when people have finally taken that leap of faith and go for it. This really applies to anything else in life. Remember all those late nights where you'd stay up and watch those "how to make millions in your sleep" tV spots. Or perhaps you remember all those times you went to the book store and purchased tons of real estate investment study guides.
In fact you probably have a huge library and collection of real estate, investment, and how to get rich quick type books by now. Some people may get a feeling of being overwhelmed after wading through those thick books and studying all the complex terminology.
The bottomline is, if you are a naturally goal-oriented and self-disciplined person than you can probably achieve a full-time income in real estate within a year with the right system. So how do you choose the "right" system when everyone and his uncle says they are an expert or guru within the real estate arena?
One thing you might want to consider doing is to align yourself with a friend or relative who is already successful in real estate investment or at least in the type of real estate that you are interested in doing. Don't be shy, definitely get in touch with them.
It may be a friend from high school or college, or perhaps even a former room mate that you knew when you were just getting started with your own life and needed someone to share the rent costs with in order to have your own place, etc. I am sure that if you ruminate for a bit, you may even surprise yourself at how much opportunity there is in your own circle.
That is actually a very good idea- the best way to get into real estate successfully is to have a teacher or at minimum someone that can really show you the ropes and provide feedback in real-time. No matter how well written the courses you're looking at is, nothing really compares to a trusted friend or adviser that can actually walk you through this process step-by-step.
Even if it isn't step by step, it's still great to be able to call someone up and ask for constructive criticism on what you are doing as well as to add some fire in your belly to the process. Folks this relationship is priceless. You can save hundreds of hours of time learning things on your own, and also save thousands upon thousands of dollars in costly mistakes.
Ultimately you will have to walk the path yourself in order to learn and gain from this wonderful industry. But the initial first steps will furnish you with the momentum to be able to zoom on your own two wings.
| Ultimate Real Estate Foreclosure Short Sale Strategy | ![]() |
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| Stop your foreclosure with a short sale | ![]() |
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The fact of the matter is that house flipping is not illegal if it is done properly and ethically. Anyone who has ever bought real estate for a primary home and then sold it for a profit later has successfully flipped a house. That is the basic idea behind house flipping. The real estate investment is purchased, and then resold later for a higher price. The length of ownership time may be months or decades, and that does not matter for this purpose. Sometimes this may involve renovating or repairing the real estate before selling it, to increase the value of the investment.
What everyone has been calling illegal house flipping is actually real estate fraud. These cases generally involve people who have lied or misled about significant facts to wrongly inflate the value of the real estate investment. This includes payments or bribes to get the property appraised at a value higher than what the real estate is actually worth, falsifying down payments or any other information like tax receipts and check stubs to get a loan that is not qualified for, and more. One type of real estate fraud is lying or covering up obvious or serious problems with the house to lenders, as well as to buyers who are not sophisticated. Another fraud type is to back date any documents that are needed for the loan, such as lease agreements, to give the impression of a longer length of time.
Unfortunately, the news media has confused house flipping with the types of fraud mentioned above. Many escrow and title companies refuse to do double closings, and many lenders have something that is called seasoning requirements on the ownership by the seller. This generally means that if you have not owned the real estate investment for at least half a year most lenders will assume there is something funny. This means that these lenders will not loan to a buyer who is trying to buy your house under these circumstances.
Flipping houses is not illegal as long as there are no misleading or fraudulent statements made or signed. If you are investing in real estate, make sure that you read all the paperwork and contracts very closely. The contract is the statement of facts that you are providing to the lender. This contract should not contain any deceptions or false statements. This process only becomes illegal when fraud is committed, usually in the form of deceptive or misleading statements made in the lending contract. As long as you act honestly and ethically, there is nothing illegal about making money by doing honest business.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
1. First of all, be sure that you understand that flipping homes requires lots of hard work and effort in order to be successful. It's also not risk free, and this is especially so since it is a more short term real estate investment strategy. Small fluctuations in the real estate market can easily go against you and wipe out most if not all of your profits very quickly and easily. This is not said to discourage you, but simply to help you be prepared for the realities of the real estate marketplace.
2. Understand as well that when you adopt a short term strategy for making real estate profits that only involve a few months worth of ownership at a time, you will be taxed on the profits as if it were regular income. Many first time flippers don't realize this and are surprised when they lose a good portion of their profits in the form of income tax. So be sure that you plan ahead and factor in this expense before you get started.
3. When flipping homes for quick profits, don't try to over-renovate the house. Try to find houses instead that need some cosmetic work that can be done relatively inexpensively and easily and then stick to your game plan as you go. Don't try to build some kind of dream house instead, as you will simply lose time and money by going that route.
4. One of the great keys to successful real estate investment is to check your emotions at the door. Buying and selling real estate investment properties should not involve emotion at all in order to be successful. Let the numbers speak for themselves, and if the profit margin on a particular property is not within your tolerances, move on and find something else.
5. Learning how to build a dream team of support personnel including subcontractors and real estate agents, will be a large factor in your overall success. Of course, the more work you do yourself, the more profit you will usually make. However, on many occasions enlisting outside help from contractors, plumbers, electricians, and so forth can help keep you on track and get the job done in the allotted time. So do your best to find good, reliable people in the construction and real estate industry as you go, as a support team.
If you do your research on home market values diligently enough in advance to identify houses that can be bought well below market value and then renovated inexpensively, you can usually make a significant profit on most of your investment properties. Some of the most important keys to your success will be buying the house at the right price, having a clear plan and timeline for the remodeling work, and then pricing the house correctly in order to get a quick sale.
Armando Montelongo started out with not much at all and eventually through hard word and dedication, achieved success in real estate flipping houses. Montelongo reached his success not only through hard work and dedication but also positive thinking. After he reached a level of success, Armando decided to share his knowledge. Armando Montelongo then set out to create a system to teach others how he bought, funded, fixed and repaired and eventually sold properties for profit. This system is called "Flip and Grow Rich".
Armando Montelongo was born and raised in San Antonio Texas. In Texas, Montelongo built the largest real estate firm of its type in just several years. Armando started Montelongo House Buyers. That is a company that flips many houses a month by design. Armando also does the show with his wife Veronica Montelongo. Others include David Montelongo. The show is a real hit for real estate programming.
Armando Montelongo has helped thousands of people make their dreams come true by teaching real estate and flipping houses to people through his 'Flip and Grow Rich'. He has an intense passion for real estate market trends and developing techniques. He offers Real Estate Coaching for anybody that wants it. He has come up with some of the most profitable and smart real estate investing tips available.
Housing expense ratio reaches alarming levels
More than 7.5 million American people — almost 15 percent of homeowners nationwide with mortgages — spent half their incomes or more on housing costs in 2007, according an Associated Press report that examined data just released by the U.S. Census Bureau. In addition, about 19 million homeowners — nearly 40 percent of homeowners throughout the [...]
More than 7.5 million American people — almost 15 percent of homeowners nationwide with mortgages — spent half their incomes or more on housing costs in 2007, according an Associated Press report that examined data just released by the U.S. Census Bureau.
In addition, about 19 million homeowners — nearly 40 percent of homeowners throughout the nation — are now considered “financially burdened,” spending at least 30 percent of their incomes on housing.
That’s bad news for countless families located across the United States who are finding it harder and harder to make ends meet.
Of course, hindsight is 20/20. And if mortgages were issued correctly perhaps it could have helped minimize the recent affects of the housing downturn on both sides of the deals (lenders and borrowers).
To do that, lenders and buyers across the board should have followed a safer debt-to-income ratio standard that historically hovers around 28 percent.
Here’s how that looks:
- $3,750 Monthly Income x .28 = $1,050 allowed for housing expense
- $3,750 Monthly Income x .36 = $1,350 allowed for housing expense plus recurring debt
Clearly, this is not the only reason behind the current economic mess, but it is certainly a contributing factor. Mix in balloon mortgages, rising debt, unemployment, fuel prices and several other ingredients and we can see the reason foreclosures are occurring and the economy is struggling.
For information on how to avoid and/or stop foreclosure click here.
| Ultimate Real Estate Foreclosure Short Sale Strategy | ![]() |
![]() |
US $24.95 | 50m |
| Stop your foreclosure with a short sale | ![]() |
![]() |
US $10.95 | 1h 20m |
| http://www.phpbay.com/affiliates/jrox.php?id=1586 |