How You Can Use Rehab, Refinance and Cash Out as Long-Term Wealth Building Real Estate Investing
Today we are discussing a somewhat advanced strategy for you to use after you have been in the creative real estate investing business for a while. I call this Rehab, Refinance, and Cash Out . This strategy can lead to true long term wealth and financial independence. This works very well in a buyers market like Memphis where prices have been quite flat for some time. You need to use this to augment your wholesaling for immediate income and retailing for bigger short term profits. Rehab, Refinance and Cash Out is a long term wealth building strategy and will be something you will be glad you did as it is a long term buy and hold strategy, and those are the strategies that lead to true wealth accumulation and financial independence. Let me explain how this works. You find a good middle to low end 3 bedroom home that you are able to buy from an out of state owner or other motivated seller that needs a little work and you buy at 60% of after repaired value. You buy the house using a hard money lender like http://www.pleaseclose.com/memphistrading and do your fix up and have a property management firm manage the property and put a renter in the house. The hard money lender will typically loan you up to 65% of the after repaired value to purchase the house which you use to buy the house and then repair it. Now that the home is repaired you obtain an investor friendly mortgage and cash out by refinancing at 80-90% of after repaired retail value and you should be doing this with properties where this strategy gives you back at least $10,000 at the refinance that you can use in your business any way you need. Do not use this money to live on, use it solely to grow your real estate business. Once you have done this strategy on 10 homes you should be able to keep finding better and better deals because you can close quickly as you have cash in hand to make things happen. More cash equals better deals and more opportunities. By the time you repeat this strategy 20 times you should have at least $200,000 cash plus about $200,000 equity and 20 homes giving you at least $2000 per month positive cash flow whether you decide to work this month or not since you have a property management company handling things for you. With average annual rent increases, within five years that $2,000 a month should grow to $4,000 a month. In 30 years you should have $2 to 3 million plus in paid off real estate. It s a good solid long term strategy to add to your immediate selling from wholesaling, retailing and lease options that the extra $200,000 in cash will help grow tremendously. The rent minus the management fees and all loan and other costs must leave you with positive cash flow or this strategy should be avoided. If you cannot cash out on the property I don t recommend holding it long term as you want to be able to use your best mortgages to cash out. You can purchase using http://www.pleaseclose.com/memphistrading if your Equifax credit score is above 550(which is bad credit) or you have a co-borrower who has an Equifax score over 550. A good investor friendly mortgage company will give you good rates if you are at 660 middle score or above and the very best rates if your middle score is 720 or above. Your first 10 investor mortgages in your name and 10 in your spouses name are the easiest to qualify and get the best deals. After those you really need a good investor mortgage company to work with. Take the time to find the real investor friendly mortgage companies that can help you get loans for 100 properties and not just the first ten and let them have the easy ones and the tougher ones. I do recommend having more than one good lender available though, but stick to the ones that specialize in investor loans. Find out from other investors who the most investor friendly mortgage companies are to use to refinance the repaired home. I do not advocate becoming a landlord as I do not believe this is a valuable usage of your time and energy. I highly recommend asking around and finding a good property management company that will charge you 10% or less to start out with and gradually lower that % as you add more and more properties. I feel this is an advanced strategy as you won t see any cash in your pocket from this strategy for 4-6 months after you find the deal which is a long time to work and not see any pay. If you are wholesaling and making consistent money each month then it shouldn t matter. This strategy will magnify the profits you make in your investing business in ways you might not have imagined. This strategy is a natural progression from wholesaling as you are already helping others find these kinds of deals, now you will be able to get the cash out typical of probably 2 wholesale deals, just paid slower, and at the same time building a nice future nest egg.David Neese is a real estate investing author who offers a free course for real estate investors delivered by email, audio and teleseminar which you can get for free at: http://www.FreeRealEstateInvestingCourses.com You can find more information about David at http://www.DigitalSuccessCoach.com
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Booming Real Estate and Rates of Properties in India
There are unlimited numbers of websites that are providing modern India with some of the best constructions and property deals and rates Properties in India and the real estate market here have altered completely over the past few decades The country has witnessed some of the best builders from around the world taking interest here There have been major reasons for the growth of this sector and this includes the booming economy . .There is no doubt that the emergence of multinational companies and other global labels have completely changed the rates of properties in India The rates for properties in India have more than doubled in many areas Most places have witnessed market rates touching the sky, due to the influence of the growing economy . .Also the best builders from around the world have taken interest in the Indian property market and the real estate scenario These days most of the constructions here are at par with international levels for higher living standards Builders are planning their constructions to ensure that comfort and amenities are provided to all buyers These are some of the basic priorities given to the people living in these buildings . .The boom in the real estate market and increasing rates of properties in Indiahas reached an all time high Thus one can see upcoming constructions every where and buyers are not satisfied with mediocre apartments and standards of living Most buyers seeking apartments in condominiums are willing to pay higher prices However, they look beyond these basic amenities, provided by builders and constructors . .The Indian real estate prices have been rising and attempts to make posh apartments with the latest facilities are being catered to Hence there is a rapid growth of property in the country, which is also relying on the government policies Most of the constructions are at par with the government policies to facilitate investments in terms of foreign direct investment The booming economy has enhanced the prospects of the Indian property market . .Apart from this the financial institutions are also willing to provide friendly policies for the builders This has helped the real estate business to emerge as the second largest employer, with agriculture taking the first place The gross domestic product contribution by the real estate industry has been drastic The real estate sector has been contributing 5% of the country’s GDP and this is expected to grow in the coming few years . .The major cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Chennai have witnessed world class constructions This refers to both the commercial and residential property sectors like retail, health care and other commercial developments Investments by the non resident Indians have also been a contributing factor for the booming Property in India .
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