Oh, the woe! It seemed so easy, bidding online, perhaps watching the television auctions of properties in a state hundreds of miles away…   Here are five rookie mistakes and some of the real-life consequences that resulted for real buyers”   Not checking the title and lien position prior to bidding. Didn’t know they were bidding on the second lien position and thus still being responsible for the loan/lien in first position.   Not checking if there are any other liens on the property. Didn’t know which lienholder was foreclosing Didn’t know how that affected the the lien in which Read more…

In today’s financial system, cash and credit are two different things, but both are valuable as a source of project financing. You may have one but not the other! A partnership between someone with credit but no cash and someone else with cash but no more credit can be a powerful combination.   It’s possible to have a good credit rating and a generous credit line without having kept cash on hand. On the other hand, someone else may have cash to invest, but their credit lines are already maxed.   Credit is a valuable commodity in real estate investing, Read more…

Are you flush with great ideas and project possibilities but no cash? Find someone with money to invest and create a private equity partnership!   Sometimes even hard-money or seller carryback loans are out of reach because you don’t have the initial down payment they require to do the deal. However, that doesn’t need to stop you in your tracks, because there are cash investors out there who will take an equity position in your project to provide the needed financing.   Private equity differs from a loan primarily because a lender takes their profit in the form of an Read more…

Have you found a project opportunity with a seller who has substantial equity in the property? This is a chance to present a proposal for creative financing that benefits both parties without going through a bank or hard money lender. Seller carryback loans occur when the seller provides the financing for the buyer.   Sellers are most likely to carry back the loan when they don’t need the full purchase price immediately, can use the monthly cash flow, and will benefit from the interest earnings.This is more likely when the seller is older andneeds the monthly payment income,the seller has Read more…