If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

When investing in real estate there are some things you should have in consideration before investing. One thing you should have in consideration before investing in real estate is what you will want to do with the property. By knowing what you want to do with the property, will give you an idea how to finance the deal. If you’re buying a property to flip or to fix up and sell it, chances are you will not hold on to that property for long. It is recommended if you’re not going to hold on to a property for long, that you buy the property with an adjustable rate mortgage. With and adjustable rate mortgage or an A.R.M you can chose to pay only the interest on a monthly basis.

Mortgages…if you are planning to purchase or refinance your home you should be very careful about the home loan you select. There are many gimmick loans on the market today like “interest only loans” and “negative amortization loans” which help people buy over priced property by the skin of their teeth. Having been a loan officer for a number of years in the past, I have often wondered why people just don’t stick to the traditional “30-year mortgage” and buy (or refinance) what they can afford. If you plan on buying or refinancing a home consider the following… In my mind, a 30-year fixed rate loan is better than a 15-fixed rate loan and here’s why… you have a lower monthly payment with a 30-year loan than a 15-year loan. What if something happens to your income?

When it comes to making money in real estate the highest profits can be found in the art of flipping. Flipping real estate is the process of buying a fixer home under value, doing the necessary work, and reselling it for substantial profit. But while there are great profits to be earned in flipping real estate, there is also a great potential for loss.

The key to making money in real estate is to maximize profits and minimize loss; both of which can be done by avoiding these mistakes most commonly made by real estate investors:

Most people have a pretty good idea of how their credit looks. At least, they think they do. It is vital that you actually verify your credit situation before applying for a mortgage to avoid ugly surprises.

Your credit score plays a vital role in getting financing for a home purchase. Lenders pay very close attention to the score, often represented as a FICO score. That being said, there is an ugly little secret floating around in the credit industry. Most credit reports have errors on them. In fact, the major credit bureaus have reported that more than half of all credit reports have errors. Congress fines the agencies each and every year for these errors, but there is rarely any improvement.

I admit it, I lived the so-called “American Dream.” I had a large house with 5 bedrooms, 4 baths, massive walk-in closets, a 3-car garage, pool, and within a gated community. I received a good 6 figure income from my work, traveled, dined out, and once owned ‘his and her’ Mercedes. What more could any red-blooded, American want? Why, the second home in the country, of course!

Las Vegas is known as a mecca of entertainment and gambling. Although not as hot as the weather, the real estate market is primed to take off again in this expanding city.

The Real Estate Market in Las Vegas, Nevada

Las Vegas is the biggest city in Nevada and really needs no introduction. With incredible casinos and entertainment, most people only associate Las Vegas with gambling. There is much more to this city in the sun, which is why it is one of the fastest growing cities in the country. In fact, the population is now more than half a million people and everyone move to Las Vegas from somewhere else.

Mortgage Loan Basics

To understand loans and mortgages we need to understand loan limits first. If your loan amount exceeds the amount below, you will qualify for a Jumbo Loan, which carries higher interest rate.

One-Family (single family homes) $417,000
Two-Family(duplex) $533,850
Three-Family (triplex) $645,300
Four-Family(fourplex) $801,950

FIXED Loans:

30 Year Fixed Mortgage Rates
This loan program is fixed for 30 years. Your interest rate will not change for 30 years. This is ideal for people who plan to stay at their present property for a long period of time.

Any real estate investor who has tried to evaluate the price for a rental property with time value of money consideration has undoubtedly used net present value (NPV).

Although it should not be used as the only factor to decide whether a real estate investment provides a good buying opportunity, NPV does provide the investor with a quick and easy way to determine whether the price that will be paid for the property will yield the investor’s desired rate of return (discount rate).

What is net present value?

The sales of new homes in the U.S. rose unexpectedly by 13.8% in March, the largest one-month price gain since April of 1993.

The Commerce Department reported last week that the pace of new home sales rose to a seasonally adjusted annual rate of 1.213 million. Most analysts expected only an increase to 1.1 million unit pace.

Despite the spike, the report showed that the housing market may be slowing from record peaks. The median home price declined by 2.2% from March 2005 to $224,200. The decline market he first year-over-year decrease since December 2003.

Seller financing is something a lot of people have heard about, but most people don’t know what it really means. However, seller financing can be quite helpful for someone who wants to sell their home quickly, or to buyers who cannot get approved for a loan.

Seller financing consists of taking back paper, commonly called a cash flow note. This is an I.O.U. on that property, that says the buyers will pay directly to you every month. In this situation, you act as the bank, receiving payments, with interest, on your home.