Many are already interested to take part in IRAs. The reason behind this is the wide array of investment choices an investor can make. Investors who have this account is allowed to involve himself in traditional investments such as stocks and bonds and even non-traditional investments like real estate.
You’re the broker, and it’s a win-win for everyone involved. Desperate sellers have a buyer for their home and investors save time, money and hassle finding deals on their own. You’re literally handing investors deals.
Many Californians are moving out of the state and going to Oregon. When this market turns around (which it will by mid 2009, you could even be up a lot more than what I’ve mention before.
The best way to achieve objectivity is to collect as much information as possible. Every investor needs a systematic and disciplined approach to the investment process and must act in keeping with a grand plan of events.
You will have more debt service. This is the natural course of 100% financing for an income property. The result could be a large loan payment that will eat away at your cash flow like a gorilla and require you to feed the property. That is, you could wind up digging into your pocket every month to make up the difference between cash you receive and cash you pay out.
Fortunately, we have found someone through our local real estate invesment club that knows who we are and knows we are a very good financial risk. He is willing to finance this home for us so we can record a loan and get some “traditional seasoning” on a mortgage. The “signing party” will be the standard mortgage and promissory note – checks transferred. Mortgage filed in the city-county building, then it is off to lunch. Then more searching for the next housing deal.But, with some big lessons learned.
Prevent yourself from entering into any transactions that is considered “self dealing”. It is a term used to describe any circumstances wherein an individual who is connected to the company makes use of his power to gain personal benefit from the investment.