Basically, we will behave as investment advisors on the issue of the best way to purchase a home. Su...

1. 90% Commercial Loans - Does This Actually Exist?
Basically, we will behave as investment advisors on the issue of the best way to purchase a home.
Successful property investors protect themselves from potential scams. You might just want to build
your cash reserves.
You've done your research and learned about real estate investing, but you're not making any money
because you can't seem to find the deals. And of course, the deals are what you need to make money
in real estate investing. Don't worry. While you might have some trouble finding deals at first, once
you figure out what methods work for you, finding deals will become second nature.
Then there was the seminar on lease option in 2003. I went to a seminar and was encouraged to sign
up for a more advanced seminar in Denver. This seminar was by far the most expensive but I was
getting disgusted with myself for not taking action, so I went to the 3-day seminar and by the middle
of the 2nd day, knew lease option was not something I wanted to pursue. I spent over $6,000, and
never bought any property. But I have a large cardboard box full of binders full of advice and
contracts.
That is not to say that standards have not tightened in the multi-family sector, they have. To qualify
an apartment building or complex has to be "stabilized" which means that it must make enough
money to pay its own mortgage. Lenders will look for a debt-service-ratio (DSCR) of 1.25 or better.
The borrower must have a decent credit score upwards of 640 and should have some experience
running apartments. Most loans are being written at between 70% - 80% loan-to-value ratio (LTV).
Look into the legalities of any limitations on the interior or exterior changes to the property. If you're
buying commercial real estate investing in a historic part of town, you may be barred from making
changes to certain elements. Make sure you look into any relevant building codes or zoning laws to
find out whether you'll have the freedom to alter your property as you see fit.
This does not mean that you find properties and give them away for $1,000. If you did that, you
would be a bird dog, not a wholesaler. Your profit will vary depending on the house, but the better
you are at locating properties and putting together offers, the greater your profit will be - while still
maintaining an excellent profit for your buyer.
The tenant I chose has not once in the first nine months paid the rent on time so he hasn't earned
the $100 monthly rent credit, and has on average had to pay an extra $100 each month in late
charges. I don't expect this tenant will be able to refinance, however his job status and income have

2. been going up while he has been in the property, and the current market value is now $105k. The
tenants father is a mortgage broker and if I get to the point of evicting the son the father has told me
to let him catch up the sons rent before filing for eviction so that part is really in my favor.
It's easy to be seduced by the profit potentials of real estate investing. That's why you need to make
your investing decisions up front without the deal in front of you to distract you. The biggest mistake
that new investors make is to buy properties on a whim without a plan. They spend more time trying
to get out of their bad deal and less time making more money.
Act: Educate yourself, do some research BEFORE investing, then take action. Your journey begins
with the first step of action. With out action, this will be just entertainment. You must learn some
basics and do your home work before putting your money down. Anyone that tells you otherwise is
probably not looking out for your best interest.
There are many myths that keep very capable people from venturing in the world of real estate
investing. Myths can actually cost you thousands of dollars if you do not know the truth. Get help
from an experienced mentor or coach and learn the real truth as you begin your journey to
successful real estate investing.
In fact, you wouldn't be the first to end up with a house worth considerably less than the mortgage
resting on it. It always starts that way and every individual has to do something the first time in
order to get to a target.