Latest "Real Estate Blog" Posts

How Private Lending Works for Investors

 What do private-money lenders like to see from investors who are seeking financing?

We look for investors who have a well-thought-out plan that they can execute. That includes having comps that make sense, a good idea of a property’s repair costs and a team of contractors ready to go to work.  You also should understand the market you are investing in. For newer investors, I highly advise them to operate in the market they are comfortable with, or even live in. By targeting a neighborhood within a 20-minute drive of your house, you will be more likely to know its strengths and weaknesses, its potential problems and opportunities.

What kind of advice would you give someone who’s seeking a private-money loan for the first time?

The first question they should answer is, are we a good fit for them right now? That is, are they ready to work on multiple projects at the same time, and do they need the leverage that our loans can offer?  Some investors like to pay only cash for any properties they acquire. But that ties up their resources and can limit them to one deal a year. By seeking financing, they can do more and grow their portfolio of properties faster.  We like new investors because we can build loyalty and new investors eventually become experienced investors.

What do the investors who consistently get approved for financing do differently?

Once someone’s done one transaction with us, they are much more apt to be approved again.  We love repeat borrowers.  But generally, someone who has done 10 or more transactions has seen the good, the bad and the ugly of real estate. They have learned from their mistakes, so they are nimbler and can react quickly when problems arise.  For example, they probably will not overestimate the after repair value (ARV) of a property. They also know to include a buffer in their repair budget in case there are any cost overruns. A cushion of 10 percent is a good idea.

What are the most common mistakes that borrowers – especially new ones – make?

The No. 1 thing we see is not knowing where to invest. Some applicants might have taken a course and are now very excited about getting into investing. But before they try to line up financing, they should know what areas they are targeting. That is because finding a good property, finding the right deals, is HARD.  They should also be careful not to rely on Realtors and other third parties to tell them if a deal is good. They are trying to sell you something, after all. If you do not know the market, the deal might not materialize like you expect.

Why is it important for investors to build a long-term relationship with a lender?

It is the time component. You want someone who can close on time and reliably. You want a sense of certainty that, once you have made an offer on a property and put up your earnest money, that your lender will deliver that check for you.  Plus, there’s the convenience. If I had to find a new accountant or lawyer every year, I would not be very happy.

 

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Posted by Charlie Einsmann in Real Estate Blog

Notes Buying with Amed Hazel

“Bankers make the rules! All of them… ALL of Them… ALL OF THEM” — Amed Hazel

On October 26th we had Amed Hazel speaking to ccREIA members about Notes Buying and we just wanted to share some valuable points that I thought would benefit anybody who is serious about their financial future.

Free Education at Capital city REIA monthly meeting DC MD VA

  • When the markets tank, property values tank. NOTES DO NOT LOSE THEIR VALUE. THE VALUE IS IN THE NOTE!
  • NOTE (short for Promissory Note) – is a document that promises to pay the debt and lays out the terms of repayment.
  • Banks make the rules. This is a system OF the Bankers, BY the Bankers and FOR the Bankers. BECOME A BANKER!
  • Why banks sell notes? They ARE NOT in Real Estate Business and they don’t want to spend money on a Foreclosure of $50,000 loans…
  • A NOTE IS INSURED!!!

“Banks MADE the Rules, the Rules are FOR them… Or we can say FOR US…” — Amed Hazel

Watch a recording of Amed’s presentation recording on our Facebook page

Did you find this information helpful? Please share it with your network and spread the word. We’d love to hear from you if you have experience Buying Notes that you’d like to share with us. Leave comments below.

To learn more about the Art of Nonperforming Notes, please join us on Saturday November 5th for an all-day workshop with Amed Hazel. This workshop is FREE, so make sure to take advantage of this opportunity! RSVP HERE 

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Posted by Olga Fomenko in Real Estate Blog

5 Tips for Investing in Commercial Real Estate

multi unitThinking about investing in commercial real estate? Here are 5 tips to follow that will help you have more success.

 

 

 

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Posted by admin in Real Estate Blog, Tips

The Top 10 Mistakes Real Estate Investors Make at Networking Events

top 10Here is a great post about mistakes that investors make at networking events by Matt Faircloth. Matt founded The DeRosa Group along with his wife, Elizabeth. They have grown their company to a 12 person team owning and managing over five million dollars in residential and commercial assets throughout the central NJ and Philadelphia area.

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Posted by admin in Real Estate Blog

Rehab Bus Tour RESCHEDULED

cancel;ledThe Rehabber Pro Advanced Workshop and Bus Tour this weekend is CANCELLED. The event is rescheduled for Sept/Oct. We will keep you updated on exact dates, in the meantime, Save-the-Date for the Fall.

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Posted by admin in Real Estate Blog

TONIGHT!!!!

tonightJoin us this evening and tomorrow evening from 6-9:30 PM for a:
VERY-SPECIAL-GUARANTEED-TO-CHANGE-YOUR-LIFE-INTENSE-2 EVENING-WORKSHOP-THAT WILL LEAVE-YOUR-HEAD SPINNING-AND BEGGING FOR MORE!

WORD(s) OF CAUTION:
Tonights event is ONLY for the SERIOUS  & COMMITTED real estate investors who desire MORE in Their LIFE and who are WILLING to Work HARD to HAVE IT ALL!!!

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Posted by admin in Real Estate Blog

Renovations That Pay Off

Red home door (Irland).

If you’re planning on selling your home, making a few basic home improvements may make your home more attractive to potential buyers.

Here are 5 Renovations That Offer the Biggest Returns:

 

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Posted by admin in Real Estate Blog, Renovations, Website News

Welcome

Welcome to the new Capital City REIA website, isn’t it amazing?! This website has been in the making for the past 10 months. Tammy really wanted to create a platform where all valued members can connect, grow and create wealth.

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Posted by admin in Real Estate Blog, Website News

“My Journey of Appreciation”

I dedicate this journey of appreciation first and foremost to my husband Jim, my BFF!  Thank you for your unconditional love, your constant support and for always being my #1 raving fan! I also want to acknowledge each and every one of you as your presence in my life is a very special gift. Your friendship and support is what I cherish AND so it is because of you that this journey began. I thank you and I appreciate you!

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Posted by Tammy Phelps in Real Estate Blog