Short Sales

The amount of credit damage after a short sale is different with each homeowner.In many situations, the most credit damage comes from many months of missed payments.Each missed payment is another negative mark and will drop your credit score.  These missed payments can add up to a larger drop on your credit score than the actual short sale. 

This is why it’s very important to complete the short sale transaction in a timely manner.   Closing the short sale and avoiding missed payments results in less credit damage. 

Is homeownership important to you? 

If the answer is yes then a short sale can help. One of the important benefits of a short sale is the ability for the homeowner to qualify for a mortgage in a shorter period of time.

For borrowers with a foreclosure, short sale, or deed in lieu of foreclosure on their credit history, the following time lines apply before they’ll be eligible for a conforming, conventional mortgage (Fannie Mae/Freddie Mac):

·         Foreclosure: 5 years from completion date, minimum 680 FICO with a minimum 10% down payment for 7 years.  Investment properties, second homes, and cash out refinances will not be permitted for 7 years.

·         Deed-in-Lieu of Foreclosure: 4 years with a 10% down payment requirement for 7 years.

·         Short Sale: Only 2 years for Fannie Mae, and 4 years for Freddie Mac.  Under FHA rules you have to wait only two years before you qualify for a Fannie Mae loan again. 

As stated above, a key to limiting credit damage is closing the short sale before missed payments start to pile up.  One tip for homeowners is to look for a real estate investor to purchase the property.

How do you find a local real estate investor?

It’s actually very easy.Search Yahoo, Bing , or Google for terms such as “short sale” or “foreclosure” and your city or state.  For example, if you search Kansas City Short Sale you’ll find NewDawnREInvestments.com.  Or  Lancaster Foreclosure for a PA based investor such as lancasterpaforeclosedhomes.com.  And Southern California Short Sale for and investor such as FreedomShortSaleBuyers.com.This simple search tip can work in any area.  Investors are out there and they may be able to help a distressed homeowner avoid foreclosure and salvage their credit. 

You can start investing in real estate in so may ways.  For some investors and commercial real estate agents, they start with Multi Family Homes Mesa AZ since these form of property asset generates income.  Here are the benefits that every investor is surely to reap if the invest in multi-family properties.

1. It generates income – Competition is high when it comes to buying single-family homes, but less intense in multi-family homes.  In this case high competiton means prices of home might get increase and if this happens you cannot really generate income from them even if you have 5 single-family units unoccupied because of its expensive price.  A multi-family home has several units that can generate income and bring you cash every month. Repair cost per unit is lesser compared to a one single unit that needs repairs and maintenance. No worries if you don’t have a job.

2. It pays its own expenses – A portion of the income generated by the multi-family property is used to pay for its mortgage, taxes, utilities, payroll, advertising, landscaping, and so on.

3. Cash flow even when its not 100% occupied – If you have three over four units occupied, the empty unit could not make a big difference in your cash flow. You can still pay for mortgage or property expenses and still have income.

4. Undemanding maintenance – Compared to four single family units spread all over town, a four-unit multi-family home is easier to maintain.  Furthermore, contractors will give you a better pricing if you are building multiple units.

5. Extra “ancillary” income – This form of income stream is generated from leasing fees, vending machine fees, laundry services fees, and so on. These fees are paid to you by companies that wish to provide services to your residents.

6. Easy loan approval – Investing in multi-family properties promises an easier loan approval compared to non-income producing~single family South Riding Virginia Homes since approval by lenders is based on the capability of the property to pay for itself.

These are just some of the benefits investors get from investing in Stafford VA Multi-Family Homes. Besides leverage, landlords of multi-family homes can enjoy tax refund from property repairs. Take note that multiple tenants mean multiple revenues, And multiple revenues decrease your risk in bankcruptcy. Real estate investing does not solely focus on single-family properties, multi-family properties exist to make your investment multiply and be profitable.

Real estate investment principles should never be forgotten whether you are new to the investing game or a professional.

You can use different strategies in real estate to grow your portfolio . These include investing in rental apartments, single family homes, industrial property, retail real estate, office space, hospitality or oversea properties. Within the property types you can become an expert in lease options, flipping houses, buying short sales, foreclosures, mortgagee sales, or international investing . But these can never supersede the fundamental principles.

You can use different strategies or methodologies but the fundamentals of real estate investment never change .

In my experience professional investors at times tend to become over confident and flout the basic principles . They invariably suffer grievous consequences . So please study the following fundamental principles of real estate investing with care .

Basic Principles Real Estate Investing :

* You will become rich if you buy and hold property for as long as possible

* ‘Cash Flow’ finances Your Real Estate commercial enterprise and Gives You Peace of Mind

* Do the Math – Investing is about numbers

* Location is the key to your success

* Always Buy From a Motivated Seller

* Use Other Peoples Money (OPM) to fund your investment property

* Keep an eye on the Property Cycle. Buy when the prices are at their lowest

* Everything is negotiable. Keep negotiating till you get the right price or walk off. There is no reason to buy real estate that isn’t a good investment.

* Educate yourself. There is no greater leverage than knowledge

* Always act. Without action there will be no wealth creation

You will need the mind of an investor to find a jewel investment. Uneducated people use their eyes to find properties . Thousands of people will pass a property and will see no any value in it . It takes an educated mind to understand what is the real value and potential of a property . Like anything in life preparation is the key .

If property is so good then why doesn’t everyone invest in it? It is fear that hold them back . Knowledge to some extent abates this fear . You can never get rid of fear completely . You have to act in good faith and intelligence. You will remain poor if you do not take action . Once you start taking action your experience and self-confidence in property investing will increase.

Inaction will always lead to failure . When I started out I had no knowledge of real estate investing . My first mentor was a property broker . He virtually pushed me into buying a boutique shop he was selling. . I am glad he did that to me because it changed my financial future . I have never looked back since. I initially became a street smart investor . I learn through trial and error .
Apply these basic principles to the the extent you can. Experience will follow . Think big but start small. A few small steps will change the financial out come of your life .

Understanding and applying these basic principles are the key to success in real estate investing .

My recommendation is that you read the ‘Principles of Real Estate Investment‘ in depth to get better understanding of the subject.