Introduction to The 3 Option Offer Strategy

I like making more than one offer to people because it shows negotiation without really budging. When you go in with an offer make the offer as appealing as possible, consider these 3 ways to negotiate on the price based upon the funding method. 1)    Self-funded 2)    Partially-owner financed 3)    Fully-owner financed Example: I can pay you $40k cash right now If you can do owner financing I can offer you $46k Or if you finance the purchase and the rehab acquisition of it I could do $52k Read More

Funding Your Real Estate Investment with Equity Partners

Funding Your Real Estate Investment with Equity Partners Another money source for real estate investment is equity partners, or otherwise referred to as EP's. This source is one that can be a goldmine for investors of all shapes and sizes, and is a hybrid that allows you to combine the other money sources to get deals funded. Who are these EP’s? They are the same people as mentioned before in the private funds/lending section. They are a catalyst to get funding for deals by leveraging their good credit and income. The potential EP will have the credit scores and income you need to secure financing, but not the money in some cases, so by definition he cannot be your private lender. EP's are financing the deal you present, and longer-term financing, through money source number one, which is another distinction between this source and the private lending source, which is usually just short-term financing. Read More

Exploring Seller Financing as a Money Source for Real Estate Investment

Seller held financing is definitely a viable option in today’s world of real estate, especially if the market is soft. While there is a pretty large amount of risk for the seller through this method, it is a better situation than they are currently in. The biggest risk for the seller is if you (the buyer) should default on the loan. There are many advantages to the seller financing scenario as well. The first is that it presents a way for the buyer and seller to close on a deal that may not otherwise be possible with conventional financing. Secondly, as a buyer, if you are qualified but have a low credit score, banks may not be willing to loan even if you have the means to make the payment. Read More

Money Source: Bank Financing – Meet Fannie and Freddie

Money Source: Bank Financing – Meet Fannie and Freddie Most people read a book on investing or watch a late night infomercial and lose sight of the most fundamental money source available; which is a bank. Let me take this opportunity to ‘groom’ you to look good on paper from a bank’s perspective. To unlock the potential of this source one must understand the risk factors that the banks use to evaluate, in order to approve or to deny a loan. To do that, we must dive into basic underwriting principles, specifically the role that Fannie Mae and Freddie Mac play within the lending industry. Read More