With current 5 year CD rates at 2.94%, and dropping, one of the things we’ve been doing is replacing a lot of our private lenders that are at 10, 12 and 15% interest rates with MUCH lower rates. Just think about how much money you, as the real estate investor and holder of the property, could save if you replaced all your 12% money with let’s just say 7%. That’s a 5% savings each year and on just a $100k home that is a $5,000 savings. So, how exactly do you go about it? Read more
This little posting was in our Realtor newsletter this week. This spells incredibly opportunity for those of you doing short sales, but only if you have the funds available to take advantage of these deals. Read on. . .
Many Homeowners are “Underwater”
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According to a report by First American CoreLogic, at least 7.5 million American homeowners are “underwater borrowers,” meaning they owe more on their mortgages than their homes are currently worth.
This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5 percent more than the mortgages they’re paying on them.
The report’s 7.5 million estimate is a conservative number. Some organizations, including Moody’s Economy.com, estimate that as many as 12 million borrowers may be underwater.
…Nevada is home to the highest number of underwater borrowers, with 48 percent of homeowners having negative equity. Michigan follows with 39 percent.
New York is faring best at 4.4 percent.
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[SOURCES: Real Estate Research Center; CNNMoney.com]
Be sure to have your private lenders cash ready to finance these deals. We have lined up several lenders with large amounts of cash to close on short sale opportunities quickly. We only need the cash a short time and by having the funds readily available we’re able to “make hay while the sun shines!”
NOW is the time to profit from this market. Don’t sit on the sidelines whining about how great it used to be. Take this opportunity to increase your wealth tenfold.
Someone recently asked me if I use twitter, the popular social media site, to find private money. I somewhat sarcastically dismissed the question as though it wasn’t possible. Keep in mind that I’m not really that into twitter. Yes, you can follow me on twitter (http://twitter.com/cortjones) and I will occasionally (usually at the urging of Mike) post something on there, but my belief is pretty much that I’m a busy person and so are all of you. For the life of me, I don’t really get why people would care what I’m doing throughout the day. I’m not really that exciting!
But, I’m wrong. Yes, you can use twitter to find private money. More importantly, you can Read more
One of the things I tell investors all the time is how important it is to stay in touch with people. This applies to sellers that you’ve met with who weren’t quite ready that day; buyers that you have in your database; and particularly, most particulary to private lenders or potential private lenders.
The dirty little secret behind finding private lenders isn’t really a secret at all. In fact, it’s basic common sense smart business practices. Read more