Monthly Archives: February 2012

Why I Chose Wholesaling to Make Money in Real Estate

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When I was introduced to the world of Real Estate Investing, and shown the different strategies out there to make money in real estate, I chose wholesaling because I was a beginner and I need to know all the ins and out of what a deal is and what makes a deal. I didnt want to risk my shorts starting out in rehabbing properties because that level of investing is a bit more advanced and you are rolling with the big guns. One wrong move, a few bad estimates or an unexpected surprise could cost you thousands of dollars and it can take you a while to recover from that. Wholesaling is no money down (or very little at most) very low risk, and you can make chunks of change with wholesaling properties to end buyers. Alot of people spin around in circles trying to figure out ways how they can make money in real estate especially now since house prices are at an all time low and probably will stay this way for some time, but Im here to tell you that wholesaling is the way to go. Wholesaling has opened up many doors for me and I am glad it I started with this niche and I encourage everyone who desires to make money in real estate to do their research, and begin there real estate investing career with wholesaling because it will bring in considerable profits. For me personally, this niche has served me very well financially and it has not required too much money upfront to get started. If you would like to know the general steps to Wholesaling and how a transaction is done Click Here.

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What does Short Sale Mean?

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Alot of new investors and homeowners are new to various strategies in selling a house, What does Short Sale meanand they typically ask what does Short Sale Mean? A short sale in real estate is basically the bank allowing you to sell your home for less than what you owe on your loan balance. Basically a lender will allow this if you are facing some sort of hardship, and they will want financial proof of your outgoing expenses, and a hardship letter. A bank usually takes 30-60 days to approve but its always important to stay on top of them to make sure the process is moving steadily. If the bank approves the home for short sale at a low price you better thank your lucky stars, and you should have no problem moving it immediately. There are more steps that is involved in the short sale process, so you should contact your bank so they can send you there short sale packet. So the next time someone ask’s you what does short sale mean, you will have a great answer for them. Thanks for reading and please leave your comments and feedback below, Thanks!

Transactional Funding

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Transactional FundingAlot of people get confused when they hear of the term transactional funding. So Im here to clarify what it is and how this sort of funding is used. Tranactional funding is short term funding you can request from specific funders to execute a double close on a property. This is usually requested when an investor needs to double close on a foreclosure because the banks do not allow assignments of contracts. Let me describe the steps of a double close and how transactional funding plays a part in the process.

1. I put a foreclosure under contract and I need to sell it to my end buyer. But the problem is the bank will not allow an assignment of contract to my end buyer. So in that case I have to double close. Enter the transactional funding.

2. The Bank will be “A” and Im in the middle as “B”.  I need to close with the bank first but I do not want to use any of my own money to do it, so I contact a transactional lender to let me borrow funds for a day so I can close the first part of the deal.

3. After I close with the bank with my transactional funding, I turn around and close with my end buyer who will be “C”. The funds from my end buyer will repay my transactional funder and pay me my profit from the deal.

The only drawback with transactional funding is that it includes additional fees that range from $1500 or more.  Click Here if you need to order transactional funding or a POF to get your deal rolling.