Foreclosures Lead to Altered Behaviour by Lenders

Posted on May 20, 2012 by hard

Countrywide Financial Corporation, America’s biggest mortgage lender and now part of the Bank of America Corporation, made headlines when it announced that it had restructured 81,000 mortgages in order to permit borrowers to avoid foreclosure and stay in their homes.

You would expect a foreclosure expert, like me, who has often stated that foreclosures are part of the balancing mechanism of our free market economy and a means for the real estate and mortgage lending system to self-correct, to say that this is disastrous news.

In reality nothing could be further from the truth. The fact that Countrywide has bowed to both government and public pressure is absolutely great because it highlights exactly what I have been saying all along. Foreclosures, sad as they may be in their reality, also represent a correction mechanism and an opportunity to release money which would otherwise be locked up tight in the debt part of our economy, but this only works when they are a true, representative and therefore ‘normal’ part of our economic model.

In the case of Countrywide the implication has been that many mortgages were oversold using aggressive selling practices and this is leading to an eschewed picture of the real estate market with more foreclosures coming to light than there normally should be.

A system out of control is no good to anybody. It does not help lenders, it does not help real estate investors who need to find the right kind of foreclosure and it does not help home buyers and mortgage investment institutions all of which need to have a certain faith in the system before committing themselves in any way.

The Countrywide announcement is the best indication yet that the current crisis we face in our country with foreclosures increasing exponentially as a result of predatory selling practices is leading to a reform, sometimes a voluntary one, of the mortgage selling code. This means that the real estate market will soon be in the robust state of health it was before the crisis hit. House prices will start to rise again. Real estate will be a good investment area to be in and the mortgage lending market will stop getting the bad publicity it has been receiving.

Because there truly never is a cloud without a silver lining the lessons learnt from this crisis will serve to make sure that the U.S. real estate scene goes, once more from strength to strength, and continues to deliver solid value to our economy.

Additional legislature by the government at federal level will probably mean that these hard-earned lessons will not easily be forgotten and the U.S. real estate industry will learn that unchecked, predatory selling is a short-sighted goal that delivers quick profits in the short term but only results in greater damage in the long run.

Jeff Adams

This article was written by Jeff Adams, a national author, speaker and trainer who has done over 350 deals over the past 12 years. Get your FREE 7 Day E-Course and DVD “The Foreclosure Profits System” NOW at http://www.FreeForeclosureCourse.com

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Getting the Best Car Price When Buying a New Vehicle! Don’t Waste Your Hard Earned Money

Posted on May 19, 2012 by hard

In addition, by following these tips, you will find that the less scrupulous dealers, many times, will have automatically been eliminated from your list of dealerships before you come to the negotiation portion of a transaction.

First, you must determine a fair price to pay for the car that you want. You must procure the invoice pricing for the vehicle you’re interested in purchasing in order to determine a fair price. Look around online to locate a service that sells invoice pricing data. These pricing data packages offer valuable information such as current dealer inventories, as well as information about the deals that other buyers have secured. It is worth spending thirty or forty dollars for this information that can easily save you thousands on your next car purchase.

Secondly, do take advantage of not just one, but several of the car prices quoting services that are available on the internet. You will then be in contact with several dealerships. Use competition to your advantage. Talk with the dealerships that contact you. Ask them for a bottom line car price that includes all the dealership’s fees. If necessary, tell them that you are not interested in talking about financing, you are interested only in the bottom-line price of the car. Don’t be pulled into discussion about monthly payments. We will discus this later on.

Next, be sure to shop around for car financing. The dealership is certainly not the only place with which to get your new car financed! Find out what your FICO credit score is, as this will primarily dictate what interest rate you will be paying on the loan for your new car. Then it’s time to apply to several different lenders and see which one offers the best rates. There are many reputable online lenders that will finance even those with lower credit ratings.

If you will be trading in your used car, you should figure the trade-in and resale value of the car you are interested in selling. Basically, you will get more for your used car by selling it yourself, but trading in is simpler and easier. Another advantage to trading in your used car is that trade-in values lower the taxable amount of your new car. You will have to explore the numbers of your particular situation to determine which approach is best for you.

Last, but certainly not least, comes the negotiation portion of the car buying experience. In order to form a meaningful picture of a dealer’s offer, you should request a drive-away, cash car price that excludes the value trade-in vehicles, incentives and/or rebates. This simplifies matters, as many car dealers like to play around with these figures in order to confuse buyers and inflate their own profit.

Once you determine the starting car price from several dealers, it’s a simple matter of taking the lowest quoted car price and proceeding to inquire with the other dealers that you’re in contact with as to whether or not they can beat the price. Repeat this process until the dealers quotes stop getting lower.

Then it is time for negotiating the value of your trade-in car and decide whether or not to use dealer financing. Generally, you can find better rates through a third party lender, but if a dealer has a better rate, by all means, go with that. Be careful about dealing with dealers that don’t want you to finance your car purchase with another lender.

When it comes to handling dealer add-ons and fees, check over the paperwork and make sure the amounts match the figures you were quoted. In dealing with suspicious fees, don’t be afraid to stop negotiations long enough to do research on the individual fees.

Follow these steps and you’re sure to find satisfaction with your new car purchase.

This article was written by Mike Robinson, you can visit his web site by clicking here – [http://www.onlinecarprice.info/]]Car Price Guide

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Blooming in a Bad Economy

Posted on May 19, 2012 by hard

Economic conditions changed dramatically due to problems encountered by the mortgage sector and global rising of fuel and food.

All of us are very cautious and are always on the look out for means to survive, here are some of them:

o Don’t Panic. How the stock markets behave defies laws of gravity. It goes up an hour and drops drastically in another. Experts advise though that withdrawing your investment money may do more harm than good. Cash out the money if you really need it short-term. Be reminded that through out history bad times come and go. After some time, the market will recover.

o Protect your Portfolio. When you put some eggs in the basket you make sure that they will not break. This is also the rule of thumb for investments. For example, financial experts advise that you check on your portfolios once a year and check how much the balances are. Make some adjustments so your assets are well distributed to different channels. The market volatility is an indicator that people should be diversified with their investments. Factors such as your age and risk tolerance should influence you long term. Remember that the current state of the economy is just temporary. Younger people can take more risks in terms of investing while the older generation must take lower investment risk to ensure better cash flow.

o Do not be Trapped by your Mortgage. The subprime mortgage disaster has affected the whole economy. Homeowners with adjustable rate mortgages should consider getting a long term fixed loan to avoid the voracious rate adjustments that may occur. Getting a refinancing is not that easy today. Lenders have taken measures to safeguard themselves and assets through higher interest rates and stricter qualification guidelines. If you have a good credit score take the opportunity to discuss with your lender better fixed rate loan packages that can be easier on your pocket and in the long term lead to owning that home.

o Pay Attention to your Job. Work hard during these hard times. Companies are on a wait and see situation where they have the tendency to lay off people when it becomes a necessity. Work hard so you will be a valuable asset of the company. Companies will see you as a good investment and will give you job security. If you are on a staff level, monitor how your boss and your department is performing. Knowing where you stand allow you to plan for the future.

o Handle your debt and save. It is essential to get rid of bills and save as much money as you can. In times of great need, you cannot easily rely on the value of your home which has dropped significantly because the economy is on shaky grounds. Determine if you really need something before spending that extra cash.

o Don’t spend on what you don’t need. Tough times should convince you to review your household budget. List down your expenses and strike out any thing which you think is not really essential. Necessity should be considered first before giving into the comforts of your lifestyle. Tighten the budget and put the extra money into your savings.

Blooming in very tough economic conditions involve making the right decisions at the right time. Spending less may mean survival until the economy recovers. For now, being ready for the worst is number one.

The author of this article was Benedict Yossarian. If you have taken a loan out in the UK within the past 10 years it is quite possible it could be classed as an unenforceable loan agreement [http://www.unenforceable-loan-agreements.co.uk/] if any clerical errors have been made. Consumer Credit Claims [http://www.consumer-credit-claims.co.uk/] can help receive financial compensation for these incorrectly drafted loans.

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Save a Ton of Time and Money by Getting Free Online Homeowner’s Insurance Quotes

Posted on May 19, 2012 by hard

Anyone who owns a home or is looking to buy one is going to need homeowner’s insurance. You would be hard-pressed to find a lender that would loan money to someone who refused to carry homeowner’s insurance. If you are able to pay all cash for your house, you would not be required to have insurance for your home but since your home is such a huge investment it just makes sense to protect that investment.

Protecting your home against things like fire, theft, storm damage etc. is extremely important but any smart consumer wants to get the best possible price on the things they buy. Getting good coverage for your home is no different. There are lots of different insurance companies all competing for your business and because of this there are opportunities to get good coverage at very reasonable prices. The problem in the past was that shopping around for a good deal was extremely time-consuming. You would have to find a number of different companies in the phone book and then spend all day on the phone with insurance agents trying to sell you a policy.

The Internet is a huge time saver that allows you to quickly and easily get free online homeowners insurance quotes. You don’t have to call a company, get put on hold, be pressured by pushy agents trying to make a commission before you finally get your quote, only to repeat the process with four or five other companies. Getting homeowner’s insurance quotes online involves filling out a form answering a few questions about your house and the amount of coverage you are looking for and clicking a button. Rather than spending several hours or even several days on the phone to get your quotes you can spend just a few minutes online and never have to talk to anybody unless you want to.

Most people don’t even bother getting multiple quotes, they will just go with the first insurance company they see in the phone book or whichever company their real estate agent recommends. By failing to get quotes from a number of different companies you could be throwing away thousands of dollars. If you are able to get coverage for just $25 per month less, think about how much that would add up to over the years. You could literally save thousands of dollars by spending just a few minutes online and doing a little comparison shopping.

To get free homeowners insurance quotes from highly rated companies or to get a list of top insurance providers in your area visit http://get-homeowners-insurance-quotes.com

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How to Spot a Foreclosure Con – A Guide to Common Fraud Warning Signs

Posted on May 18, 2012 by hard

A rise in mortgage delinquencies is often accompanied by an increase in foreclosure rescue scams. The prospect of losing your home and damaging your credit is enough to scare anyone, but when you add the additional threat of being duped out of your hard-earned money by an unscrupulous scam artist, it’s easy to see why some people facing foreclosure want to throw up their hands and give up. The fact that there are opportunists in the world that prey on the vulnerable is a sad but constant fact of life. Nevertheless, you can protect yourself and your family from fraud and avoid making risky decisions by educating yourself, asking lots of questions and most importantly by keeping your money in your pocket.

Unfortunately, a crook is unlikely to tap you on the shoulder and announce his intention to steal your money. Thieves come from all backgrounds and live in all places, so it is a mistake to think that you will be able to identify a con artist by the way he/she looks or by the way he/she acts. In fact, a successful con man is likely to be very good at making you feel comfortable and safe. So how can you spot a foreclosure scam? What are the warning signs? Generally, it is the ‘too-good-to-be-true’ promises con men often make as well as the questionable things they ask their victims to do that should raise big red flags.

Successful scams normally require the victim to willingly give money to the perpetrator (this is the critical mistake). Bernie Madoff would not have been able to swindle billions of dollars unless his victims had entrusted him with their money. Most email scams promise victims large sums of money as a result of winning a bogus lottery for example. In most cases, these victims will eventually be asked to pay advance fees to allow the phony deal to proceed (gotcha!). So how do you avoid making this error? The answer is simple – by keeping your money in your pocket! You can only lose money that you’ve actually given away – so don’t give away any money! A request for you to pay fees in advance before any service is provided should always make you stop and think twice, even if the person requesting the money is an attorney. Remember, every dollar you give away is a dollar you may never see again.

If it sounds too good to be true, it probably is. Since thieves are singularly focused on taking your money, they will promise you anything in order to get it. Keep in mind that you can only put a guarantee on things you have 100 percent control over. If a homeowner can’t pay his mortgage, only his lender can guarantee a particular outcome. Therefore, if you are guaranteed a specific result (i.e. a promise to stop your foreclosure, lower your mortgage payment or loan interest rate), you should ask yourself, does this person actually have the authority to make this decision? If the person giving you the broad guarantee does not have decision-making authority, chances are either he is incompetent or he is lying. Either way-you should run for the hills! Don’t allow yourself to be used as a guinea pig. As a rule, you should always ask for references and demand that anyone offering to provide you a service demonstrate proof of his experience as well as the results he has already achieved with other customers.

So what should you do if you are having trouble paying your mortgage? First of all, be honest with yourself about what you are hoping to accomplish. If your financial problem is temporary and you do not want to sell your property, contact your mortgage lender yourself- you don’t need to pay anyone else to do this for you. Dealing with your bank will probably be time-consuming and frustrating but at least it won’t cost you any money at a time when money is probably scarce. Believe it or not, your bank may be willing to work out a payment plan with you. Lenders sometimes offer options to homeowners experiencing financial difficulties as an alternative to the expensive and lengthy process of foreclosing on a home. Above all else, remember to keep your money in your pocket.

Gerald Lucas is Managing Director of Performance Property, LLC, a real estate investment company based in Jersey City, NJ ( http://www.performancepropertyllc.com/ ). Mr. Lucas shares his extensive experience as an investor, guest speaker, coach, and college lecturer. Mr. Lucas holds an undergraduate business degree from Howard University as well as an MBA from MIT’s Sloan School of Management. You can contact Gerald directly at gerald@performanceproperty.biz.

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Remortgage – What Is It And Why You Should Do It

Posted on May 18, 2012 by hard

Remortgage can be defined in two different ways. The first is when a homeowner takes out a loan, using their property or the equity in their property as collateral, when they already have a loan on the property. The second definition is when a homeowner changes their current loan to a new lender.

Remortgaging by taking a loan out on existing property is usually referred to as a home equity loan. Since the homeowner really does not own their home, since they are still paying to the bank, they can not actually use the home as collateral.

However, homes and property go up in value over time, so the home is building equity. Equity is when the home and property is worth more than the amount of the original loan. For example, a person buys a home for $100,000 but it appraises at 150,000. This person would then have $50,000 in home equity or money that belongs to them which they do not owe the bank. They can then remortgage and get a loan for the amount of their equity.

Changing lenders is actually common. It may seem like a strange tactic, but it is very beneficial. Some people start out with a loan that may have high interest or fees because they could not get a better loan. After a couple of years their credit is better and they want to see about lower their fees and interest. This is a good time to remortgage.

Usually a remortgage is not done until after two years with the current lender. This is because most contracts include penalties for early termination of the loan, including paying it off. This is to protect the lenders interests.

The lender is in the business of making money and they do not make as much as they would like when a person ends their loan early. Usually, though, after two or three years the penalties are waived and the homeowner is free to find a different lender.

Normally when you come to the end of your fixed rate period you will be moved onto the lenders standard variable rate, where the inertest rate will be higher and fluctuate. This is when it is a good time to remortgage, switch lenders and start afresh on another fixed rate mortgage product.

Remortgaging can save a homeowner a lot of money. Especially if the original loan carried high interest due to bad credit. By remortgaging a person can find a loan with lower interest. That means lower monthly payments now and less money paid in the long run. It is a great option for the homeowner.

Some homeowners take advantage of remortgaging. They stay with one lender for a certain time until they find a better deal. By remortgaging a person can take full advantage of the opportunity to save a lot of money on their home purchase.

It is not hard to remortgage, which makes it an even better opportunity. All a person has to do is stay current on the lending trends and interest rates. They should keep their credit in good standing as well. When the time is right they can then begin to shop around and apply for better mortgage deals.

James Copper has been in the financial services industry for many years. He is currently a Adverse Remortgage Expert for Remortgage-Here, who specialise in the Fixed Rate Remortgage. On his days off James likes to write on all things mortgage and real estate related.

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Is the Government’s Help to Stop Foreclosure Working, and is it Misleading?

Posted on May 18, 2012 by hard

Think about it.  When someone is going out of their way to work with me, it makes me a little skeptical.  Not that I’m going to turn down the help, but it definitely means I need to really get all the information first, before I make that phone call.  I also need to know all my options first before I sign on the dotted line.  Especially when it’s the same government and financial institutions, who created most of the problem in the first place. 

Before you contact your lender, you may want to make a phone call first to an objective third party, someone that will go to bat for you, and truly understands what all the pitfalls and the various alternatives you may want to consider. The fact is that like most government programs, the underlying agenda ends up punishing the hard working taxpayer in the end.  In fact, the new government program to stop foreclosures, which is supposed to help people refinance their home while still in foreclosure, has actually created situations where the loan payment actually went up, not down, followed up by more double talk and confusion.  That’s not good. The situation goes beyond the governments program however.

The housing market has not bottomed out yet, and who knows, it could even be another year before it does, maybe even longer.  The economy is likely to experience severe Inflation, from the fact that we’re borrowing trillions of dollars from China, and printing money just like we could go out and print money.  Oh yea…  I said that twice didn’t I?  If things go up in price, then that will eventually effect the housing market at some point.  We’re already experiencing inflation but the government and not even the media are talking about it.  You might have noticed it at places like the grocery store, or at your local hardware store.  If more money is going out toward paying bills, and jobs are harder to come by, then “Houston, we have a problem”

The point is, not to paint a doom and gloom picture but to get “real” with homeowners.  We all want to trust the government and be good citizens, but history has shown that to be an insane assumption.  Ronald Reagan once said; “Trust and Verify”.  That’s some good advice.  I can’t sit around worrying all day, but I need to do something for myself so I don’t repeat the same mistake again.  To know your legal options, hiring an attorney may not be an option, but there is legitimate help out there and advocacy services available that truly bring value to this process. Hiring an attorney can be cost prohibitive, sometimes costing thousands of dollars.  You also need to look out for all those foreclosure rescue scams, but there are a few do it yourself loan modification kits, whereby you can speak to a third party loss mitigation specialist (loss mitigation is a bank term that means to weigh the financial risks or rewards of doing a loan modification).  This specialist does not work for the lender, but instead can give you the inside scoop of how the loan modification really works, and what type of options you have at your disposal that the lender won’t tell you. 

LoanModificationService.biz is a loan modification training company that is dedicated to help realtors and mortgage brokers learn and make money from the loan modification business. Here’s some information about various Loan Modification Affiliate Programs: [http://www.loanmodificationaffiliateprogram.com]

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Hard Money Lenders are Your Friend

Posted on May 17, 2012 by hard

If you are going to be a serious real estate investor then you need to make friends with a few hard money lenders. Real estate investors must have cash available to buy homes fast. If you have to wait for a loan you might miss a good deal. There are several advantages of using hard money lenders over traditional lenders and your own cash.

Hard money lenders have readily available cash for your deals. If you have cash available to buy homes you will get better prices and more deals. If you can tell a seller that you can close within a few days then you will be able to get their respect and they are more willing to discount the asking price. I know that many banks that sell their REO’s will sell them at a discount for cash buyers than if you have to get financing. Cash is king in the real estate investment world.

Hard money lenders don’t require tons of paperwork. Most hard money lenders have a short application and don’t require anything but a property. I can’t stand to fill out paperwork for the traditional loans.

Hard money lenders don’t charge a ton in closing cost. Sure they will charge more interest and some fees but most of the time the money is easy to get and doesn’t require much of your own money. Don’t waste your profits on application fees.

Using hard money lenders doesn’t put your credit rating at risk. Since you are using private lenders they normally will not report you to credit boroughs when you are late or default on the loan. Basically you have little risk.

It is better to use someone else’s money and not your own when making an investment, so find a few hard money lenders that want your business. Hard money may cost more in interest payments but it’s not my money.

Get a free online home appraisal; try visiting http://www.propertyhomeappraisal.com, a popular website that offers home appraisal tips, advice and resources to include information on real estate appraisal services and the best online home value sources. Find out how to get real estate agent leads.

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Home Equity Lenders Uncertain About Approving Mortgage Refinancing

Posted on May 17, 2012 by hard

With the recent unveiling of how the credit crunch is affecting and hurting all borrowers, regardless of their credit rankings, it seems that home equity lenders are becoming uncertain and very stringent toward homeowners looking to refinance their mortgage. This though has made prospective refinancing options quite bleak, especially from a homeowner’s perspective. Considering the past where mortgage refinancing days were clear and sunny, a homeowner with stellar credit -even a homeowner with questionable credit- could gain a refinancing approval in an instant and be well on their gleeful way. But now, home equity lenders are halting homeowners almost completely, even ones with practically pristine credit, from getting the go-ahead to finalize a mortgage refinancing motion.

The Tightened Mortgage Refinancing Knot

It’s been pulled as snug as possible and homeowners’ circulations are getting cut off, making there financial situations looking quite purple and less peachy than they should. And when home equity lenders aren’t telling homeowners no, they’re either notifying them to tweak their financial situations to gain approval. These requests in modifications include having homeowners reduce either the size of their loan or their overall line of credit.

Now far from routine, approvals form home refinancing are seldom handed out. Even if a borrower intends on maintaining and not altering the size of his or her mortgage, gaining a thumbs up to go ahead and refinance will be hard to obtain from home equity lenders.

Far From Dreamlike, It’s A Financial Nightmare

Gaining these approvals, or what people in the mortgage industry refer to as ‘subordinations,’ is far from a puffy cloud-filled and sunshine filled day. The reason why getting these approvals is so few and far between is due to where home equity lenders must stand through the process. Home equity lenders must act as an actual second place position, standing behind the new mortgage, essentially allowing the new first mortgage replace the existing first mortgage. And now with the housing market being hit with substantial price declines, it seems most lenders want to avoid such a position.

This is where the nightmare begins for homeowners. The aim and more so desire for homeowners is to obviously lower their rates or lock in a fixed-rate mortgage. But, most homeowners can’t do this, despite knowing how refinancing would save them a great deal of money and better position them to pay off loans completely. Trying to improve their financial situations is a long-winded nightmare simply because going through the process of getting a new home-equity loan to replace an existing one for subsequent refinancing approval is currently and quite literally impossible. This is all thanks to a tightened lender grip and standard expectation due to the plummeting housing prices.

Lender Cutbacks, Putting Up A Wall

Lenders have become more strict because they don’t want to lose any more money on their end of the deal. To further prevent more losses many home equity lenders cut back on the value amount of a borrower’s property he or she can finance. Some home equity lenders are even stepping back and altering some borrowers’ information, specifically freezing home equity lines of credit or actually minifying their maximum borrowing amounts.

Despite the tightening of overall policy and qualifying guidelines on part of lenders, don’t rule out the prospect of a mortgage refinancing [http://www.countrywide-refi.com/lower_your_payment] motion just yet as lower monthly payments could very well be just around the corner.

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Real Estate Investment 101: Raising the Money

Posted on May 16, 2012 by hard

In this article, I’m going to provide you with seven basic options of coming up with investment funds with certain assumptions in mind. First of all, I’ll assume you have a good to great credit rating (which makes your financial life a lot easier). Second, I’ll assume you have very little debt or none at all. Third, I’ll assume that you still don’t have enough money to make the standard 20% payment on a property.

With those assumptions in mind, here are common-sense options for coming up with money to start your real estate investment career. They’re not “sexy” or exciting, but I can guarantee you that they’ll work. After all, successful real estate investors have been using them for years!

Option 1: Save Money

I know, I know, this is definitely old-fashioned and takes time, but, hands down, it’s still the best method around for several reasons. One, it involves the least risk because you’re not assuming any debt. Two, it’s the most satisfying because you’ve done it all on your own. Three, and possibly the most important, it teaches you financial discipline, an essential skill for any real estate investor. Generally speaking you’ll need 20% of the purchase price for a down payment – but keep in mind, Sacramento condos start around $30,000, and could easily rent for $600+ per month.

Option 2: Tap into That Home Equity

Not everyone has equity in their homes these days, but if you’re one of the lucky this could be a great option. With a home equity loan at the rates available today this could be an excellent way to finance a down payment. If you decide to tap into your home equity, a good choice is to refinance the first loan instead of taking out a separate home equity line of credit. Interest rates are low right now, and generally, refinancing gives you better rates than a HELOC.

Option 3: Rent Out the Home You Currently Live In, and Buy Another

This method is similar to option 2, only rather than looking for a new property for renters, you are looking for your new home. One advantage, home loans for “Owner Occupied” properties are usually issued at lower rates than to investors. With this method, you receive tax-free proceeds from the refinance of your current home. You can then use that money as a down payment on your new home. One thing to keep in mind, you will not be able to use your rental income as qualifying income for your new home loan. However, if you are wanting a new home and some investment income, this could be the perfect solution.

Option 4: Tap into Your Individual Retirement Account (IRA)

This is a good option if you’re a first-time home buyer. And if you are a first time buyer, I would suggest purchasing a 2-4 unit building – live in one unit and rent the rest.The IRS allows you to make a penalty-free withdrawal from your IRA of up to $10,000 (single) or $20,000 (married, $10,000 each) for the purchase of a home. As with any government program, there are eligibility requirements that must be met. The disadvantages of this option are two. One, you still have to pay regular income tax rates on the withdrawn amount. Two, an IRA is a savings program for your future; once you pull the money out, you’re diminishing your savings.

That being said, if you are looking for a creative way to get into your first home, this could be perfect.

Option 5: Cut Back and Invest Some Sweat Equity

Let’s assume you already have money for a down payment on an investment property you really like, but it’s still not enough. In that case, try looking for lower-priced properties, especially ones that need some work in order to “come up to snuff.” If you’ve got basic handyman skills, you can really spruce up the property at minimal cost. The basics that renters are looking for are clean carpet, fresh paint, clean kitchens and bathrooms, and working appliances. Much of this can be done for relatively cheap.

Option 6: Partner Up

If you have saved up some cash but not enough, consider a partner. You can then pool your resources and invest in more expensive properties that will produce higher income and appreciation. This option reduces risk and gives you greater borrowing power. Naturally, you should be very careful in your choice of partner! When partnerships work well, they work very well. However, a bad partnership can turn nasty very quickly! Many times, partnerships work well when each partner occupies different roles suited to their experience and personality.

For example, if you’re a great “salesperson/marketer” and your partner is a born “numbers cruncher,” then it makes sense for each of you to work to your strengths.

Option 7: Build Good Relationships with Local Banks/Credit Unions

Let me be clear – as a real estate investor, a good reputation is everything, especially with lenders at banks or credit unions. So, work hard at establishing a sterling reputation with these institutions because it’s money in the bank for you in the future. You see, the more your good reputation spreads, the more everyone (lenders, contractors, partners, etc.) wants to work with you, and that leads to better and more profitable deals. Of course, shop around to discover the best rates and best lenders.

So, there you have it – seven options for coming up with down payment money for investments. Most investors use a combination of methods to raise money to get into investment real estate.

Want more info? Visit http://www.morganlarson.blogspot.com

Morgan Larson,
Insight Real Estate,
http://www.MorganLarson.com

Morgan Larson is a residential real estate agent with a knack for investment. Helping people achieve their goals in real estate wealth has become an on-going passion.

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