Discounted Real Estate Notes Can Be A Great Financial Benefit for Savvy Investors

Posted on July 9, 2007
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When given the choice of whether they would rather have a lot of money right now or a little less money in a years time, most people will tell you that they will take their money right now, thank you very much. The value of a dollar in your hand is greater to most people than the value of a potential dollar later, and that makes a dollar in the present worth more than a future dollar, which is the principle behind the discounting of real estate notes for sale.

A special formula is used by real estate note investors to determine the amount that should be paid for a note at any given time based on the time value of money. Dollars tomorrow are not worth as much to us as dollars today, remember. This discount means that you are not paying the full value of a note (which would include the interest charged on the account) but would instead be paying a lower rate based on the determined value of that money in the future and factoring in the time that it will take you to get your money.

If you choose to buy and sell these discounted notes, you can earn a great deal of money. One way to do that is to purchase the real estate notes directly from the originator of the loan, especially if the loan was originally a seller financed mortgage, and by doing so at a deep discount. Private sellers are less likely to know the true value of the note, and more likely to be highly motivated to sell their note quickly. If you can get them to accept a lesser amount for the note, then you can you can make a great return quickly by turning around and selling the note to another investor.

This is the way in which most people decide to make their money when it comes to investing real estate notes, and that means that the competition to buy these notes is very high. A very good deal is a true boon to a buyer like you who is trying to build their real estate note investment portfolio. The competition makes it very difficult to find great deals in the market.

You can try to use the internet to your benefit in the search for private sellers, however the competition is doing the same thing, and online competition is very fierce. Instead, try advertising locally in the hopes of tapping a personal market that has not been drained already, and you will be able to build your real estate note investment business note by note over time. Your patience will pay off if you have the start up capital to get your business off of the ground and the intelligence to plan for every contingency. A lot of money is on the line, so always have a backup plan to fall back on.

If you would rather have a regular income from your real estate note investments than buy and sell real estate notes frequently, you can buy a discounted note and hold onto it in order to collect on the monthly payments being made against the note. By doing this, you are creating what is known as real estate cash flow, which is another great way to build up your income if you can afford to sit on your investment for an extended period of time.

If you want to build up successful cash flow, you will have to have a large amount of money that you can afford to invest for a long period of time, however this kind of investment can really pay off in the long run. The returns from a real estate cash flow are much higher than the returns on CDs and government bonds, and you get to take your payouts monthly instead of waiting for your account to mature. No matter how you choose to move forward, real estate investing in discount real estate notes is a potentially lucrative venture that you should not miss.

Joshua Geary is avid writer, speaker and principal of Asset Exchange Strategies, LLC. His firm helps those nearing the retirement age learn how to invest in real estate notes with their Real Estate Paper funds. Visit his website for the latest Real Estate Notes strategies and sign up for the Real Estate IRA Advisor Newsletter. A power - packed newsletter for those looking to shift IRA dollars into alternative assets like real estate.

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House Flipping Tips for Beginners

Posted on July 7, 2007
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One of the most difficult parts about flipping houses is learning the ropes when you first start. Because it’s something new that you have little experience doing, it can be intimidating. What follows are three of the most important tips for beginners to learn when they start out with the goal of flipping houses to make money.

Don’t Be Afraid to Make Low Ball Offers

Beginners in real estate and house flipping sometimes are easily intimidated and are more concerned with not upsetting the real estate agents and the sellers. Remember, you’re in the house flipping business to make money, not make friends with the sellers. If you allow yourself to be intimidated by the sellers, or by angry agents who get upset with low offers, you’ll make money much slower than if you have the guts to make low offers.

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Real Estate Investment

Posted on July 7, 2007
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My first real estate investment opportunity actually came about through connections with some friends. I knew several people who were thinking about buying a house together. A few of them wanted to live in it, but the rest just wanted a share of the profits. The ones who were living in it would pay for the privilege by fixing it up. Then we would all sell it together and split the profits evenly. There were enough of us that we didn’t even have to get a mortgage! It was beautiful.

It was an easy business, and a successful one. I doubled my investment, and best of all, it made me curious about other real estate investment opportunities. I was careful when I first got into it. I have known too many people who thought that real estate investment opportunities were perfect. They believed that there was no risk whatsoever. If you bought a house, it would automatically go up in value.

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Three Ways to Get a Low Cost Home

Posted on July 4, 2007
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You don’t have to spend a fortune to own and manage your own home. There are many effective ways to cut the cost of buying or building a house. Check out the tips and advice below on acquiring a low cost home.

If you want to avoid paying full market value for a new or used house, one of your best options is to buy a foreclosed homes, especially if you can acquire it in the pre-foreclosure phase.

The term foreclosure refers to the legal steps that a bank or other secured creditor uses to allow them to repossess a real property or a parcel of it because the owner failed to comply with contract terms, such as falling behind in payments on a mortgage. The repossessed real property can then be sold in order to satisfy the debt, usually well below the the property’s real value.

Another great opportunity for you to own a low cost home is to purchase a fixer upper. No, this doesn’t mean you have to buy a run down shack to save money. There are a lot of houses on the market that can be found at a reduced price because the owner refuses to invest in small repairs and improvements that could increase the price significantly. This works to your favor if you know what to look for. We’ll help you understand the repairs and improvements that cost little but increase the value of the home a lot. We’ll also teach you to identify bigger problems that you want to avoid in a fixer upper.

The third method you can use to acquire affordable house is to build your own home. While this method requires the most time and energy, it is where you can find the most significant savings. To get the most out of building your own home, you need to plan well and follow the plan. You will have to prepare a budget and follow it as closely as possible. Much time will be needed for surveying construction materials and workers. If you have a knack for organizing projects and experience in construction, this may very well be your path to a low cost home.

You can increase your chances of saving thousands of dollars on your home by choosing one method and researching it thoroughly. For more help with foreclosure homes, fixer upper homes and home building, visit http://www.low-cost-home.com

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