The U.S Department of Housing and Urban Development (HUD) doesn’t offer direct financing for their HUD homes. Some investors use cash to buy a HUD home but oftentimes they use hard money loans for HUD financing. Other HUD loans for owner occupants include FHA 203K mortgages, conventional mortgages, and FHA mortgages. If you’re looking to…
Gross Rent Multiplier (GRM): How to Calculate & Formula
Gross rent multiplier (GRM) is a figure used to evaluate multi-unit and commercial income producing real estate investments. It uses the price of the building, divided by the gross rents to arrive at a ratio that may be compared and contrasted with similar investments in a similar market. How Gross Rent Multiplier Is Used The…
Pre Foreclosure Leads: 5 Ways to Find Pre Foreclosure Listings
Pre foreclosure leads are properties in the beginning stages of the foreclosure process. The borrower has defaulted on their mortgage payments, but still has the opportunity to keep the property, sell it, or conduct a short sale. Investors find pre foreclosure listings through online directories, real estate agents, public records, local newspapers, attorneys, and real…
Real Estate Investment Trust (REIT): The Ultimate Guide
Real estate investment trusts (REIT) are corporations that own or finance income-producing real estate properties. They are modeled after mutual funds and typically own a portfolio of real estate within a specific sector. REITs pay out 90% of their annual profits in dividends to their investors and are taxed at a low rate. In this…
Buying a Short Sale: What It Is, Where to Find One & How to Finance It
A short sale is a real estate sale in which the profits made are less than the existing loan on the property. A short sale typically occurs at or below market value and is successful only when the lienholder agrees to accept less than what’s owed. Short sales commonly occur when a seller is in…
Buying vs. Leasing Commercial Real Estate
A common question among small business owners is whether to buy or lease commercial property. The most important thing they want to know about are the costs. To help, we ran an analysis on a real commercial property for sale and created a detailed example of the costs and benefits of buying vs. leasing commercial…
Probate Leads: Where to Find Them to Buy Probate Property
What are Probate Leads? Probate leads are potential seller clients who inherit properties they often want to sell quickly after going through the probate process (the legal process of transferring the assets of a deceased person to heirs). Since many heirs live out of state, or are otherwise not prepared to maintain the property, they…
Cash for Keys: How to get Bad Tenants Out in Days, Not Months
If you’ve been researching real estate investing or own a rental property, you’ve likely heard horror stories about evicting tenants. 9 months to evict! Legal bills that could buy you a pre-owned Mercedes! While they stories may be true, you can avoid most of the drama and potentially save a ton of money by offering…
Buy Sell Agreement – Why You Need One, Template, and What to Include
A buy sell agreement, also known as a buyout agreement, is a contract that provides for the sale of an owner’s share of a business. The sale may be triggered for several reasons, such as the owner’s retirement, bankruptcy, unresolvable conflict with another owner, death, or disability. The buyer may be another owner, employee, or…
Scottsdale Private Lending Reviews & Rates
offers hard money loans for real estate investors within Arizona. They have been in business since 2014 with over 20 years experience. They have funded over 500 loans. They work with investors of all experience levels. Rates range between 10% to 12% and they’ll lend up to 80% LTV. No reviews were found online at…
Yellow Letters: The Best Lead Gen Strategy for Investors?
Yellow letters are handwritten prospecting letters that real estate investors or real estate agents send to homeowners in order to generate seller leads. They’re called “yellow” letters because they were historically handwritten on yellow legal pads. We interviewed successful real estate investors for their yellow letter strategies and best practices in 2017. Why Yellow Letters…
HomeStyle Loan: What Is a HomeStyle Mortgage & Who Is It Right For?
-A HomeStyle loan is a government-backed, permanent mortgage that can be used to purchase and renovate an owner-occupied primary residence between one to four units. Also called Homestyle Renovation (HSR) mortgages, HomeStyle loans can also be used by real estate investors to purchase and renovate a single-unit second home or investment property. However, HomeStyle loans…