fbpx
 

03 Aug Navigating Consumer vs. Business Purpose Lending in Real Estate

The real estate market, particularly where lending is concerned, can vary greatly depending on whether a property is purchased for consumer use or business use, or whether the proceeds of a private money loan secured by real estate will be used primarily for business needs or personal needs. This is because the rules and regulations on loans can be quite different depending on whether the loan is a business-purpose loan (such as purchasing an investment property, or taking out a loan secured by an existing property where the majority of the loan proceeds will be invested in a separate business)...

Posted in Real Estate Investing
Posted by admin
0 Comments

03 Aug Mastering Loan-to-Value: A Comprehensive Guide for Real Estate Investors

Introduction Whether you're a novice or seasoned real estate investor, understanding key metrics like Loan-to-Value (LTV) ratio and its After-Repair variant (ARV) is critical for success. In this comprehensive guide, we'll delve into what LTV and ARV are, their significance, practical applications, and how they influence your investment strategy.    What is Loan-to-Value (LTV) Ratio?  The Loan-to-Value (LTV) ratio measures the risk a lender takes when financing a property. It compares the loan amount to the property's value and is expressed as a percentage. For instance, if you're buying a $500,000 property with a $400,000 loan, the LTV ratio would be 80%. Understanding LTV...

Posted in Real Estate Investing
Posted by admin
0 Comments

27 Jun The Key Tax Consequences When Flipping Homes

Flipping properties has proven to be an excellent opportunity for investors across California, offering a profitable way to benefit from real estate without the hassle of managing rental property as a landlord. Savvy investors know how to spot a deal, buy quickly, make key updates, and sell for big gains, creating a main or passive income stream.   However, there is more to fixing and flipping houses than enjoying your profits. As with any income-generating practice, there are tax consequences to consider. Before getting involved in real estate investing – or in growing your operations if you currently have a small portfolio...

Posted in Real Estate Investing
Posted by admin
0 Comments

22 May Private Money, Hard Money

Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses "Private Money, Hard Money"   A)  “Private money, hard money, and bridge loans” are used interchangeably: These terms, private money, hard money, and bridge loans refer to alternative lending methods separate and distinct from banks and institutional lending; investors/lenders fund the loans, usually as one or more private parties.  Pools of investment capital accumulated by many private parties are also frequently used to finance private money loans.  If there is a pooled entity, there will be...

Posted in Real Estate Investing
Posted by admin
0 Comments

11 May Private Money Real Estate Loans: An Overview & Good Reasons

Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses "Private Money Real Estate Loans: An Overview & Good Reasons."   Can You Collateralize Your Loan to Borrow money?   The short answer is yes, with conditions.   1)  The term “collateralize” means to pledge something of value as security for loan repayments and be willing to forfeit the asset ownership in the event of default.  With a borrower’s pledge, the lender may or may not keep possession of the collateral.   The lender may sell or dispose of the asset if...

Posted in Real Estate Investing
Posted by admin
0 Comments

11 Apr How Real Estate is a Great Hedge Against Inflation

How Real Estate is a Great Hedge Against Inflation The impact of inflation in 2022 and into 2023 is hard to ignore. Prices have increased sharply on a broad variety of goods, from groceries to gas, leaving families and investors alike pinching pennies and worrying about what the future may bring.   For risk-averse investors, selling real estate for the promise of fast profits or otherwise taking what seem like less risky steps might be appealing – especially if liquidity is in question. However, impulsive selling is rarely the answer in times of economic turmoil, and that includes periods of high inflation. In...

Posted in Real Estate Investing
Posted by admin
0 Comments

11 Mar Investor-Friendly Realtors- Valuable Resource for REIers

While some real estate investors may want to do their own digging and handle transactions solo, there are a lot of advantages to working with a real estate agent. However, in the world of real estate investing, not all real estate agents are made equal. To get the most out of any property, from a fix and flip to a larger rental building designed to drive long-term income, you need to find a partner who is ideal for an investor, not a standard buyer. And that is where an Investor-Friendly Realtor (IFR) comes in.   Here is what you need to know...

Posted in Real Estate Investing
Posted by admin
0 Comments

11 Feb The Pros and Cons of Investing in Multifamily Properties

With residential property prices spiking in California, the opportunity for investors is staying hot, even considering some more recent headwinds. This applies to single-family properties and multi-unit properties, such as duplexes and larger multi-occupancy residences.   More renters mean more income, making the idea of multifamily housing extremely attractive for investors with aggressive goals – as well as those looking for new direction in a market with more single-family properties than during the early parts of the 2022. However, it is always best to approach new opportunities with caution. It may feel compelling to get involved in multifamily property investing, but success...

Posted in Real Estate Investing
Posted by admin
0 Comments

11 Jan Why It’s Important to Diversify Your Investment Portfolio with Real Estate

Diversification is an important part of building an effective investment portfolio, no matter what the long-term objectives. While passive investors may utilize low-risk mutual funds and ETFs to diversify their holdings, active investors know that more components to a portfolio can translate into more opportunity to grow.   Real estate is an especially compelling area for those looking to diversify their portfolios. Initial investment may be higher than, say, purchasing shares of a company’s stock, but the possibility to net big profits is even higher. Here is what you need to know about growing your portfolio with real estate investments, including what...

Posted in Real Estate Investing
Posted by admin
0 Comments

10 Dec The Dos and Don’ts of Property Investment

Every type of investment property – whether a fix and flip, a rental property, or another type of investment – has its own set of tips and tricks to increase the likelihood of a successful (meaning, profitable) investment. This article describes the dos and don’ts for each of these investment types:   The Universal Do Do Get the Right Team in Place Regardless of what type of investment you are looking to make, one of the most important steps is to ensure that you hire the right team to help you achieve your investment objectives. The team that will support your investment endeavors...

Posted in Real Estate Investing
Posted by admin
0 Comments