Comments on: How exactly does investing in Real Esate with a home equity line of credit work? http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/ Thu, 09 Feb 2012 00:24:06 -0800 http://wordpress.org/?v=2.8.5.2 hourly 1 By: Chrissy http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/comment-page-1/#comment-25573 Chrissy Wed, 10 Feb 2010 02:14:10 +0000 http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/#comment-25573 I really want to invest in a condo, townhouse or apartment building. I think this would have a phenomenal amount of profit once you fully own it. I'm learning more and more about real estate <a href="http://www.rsibestmethodever.com/" rel="nofollow">investing</a> from a book I picked up titled, " The Best Real Estate Investing Method…Ever!" by author N. Xavier Arnold. You can't go wrong with the best methods. I will have to learn more about it before I do it of course but just wanted to let you in on the best kept secret! My realtor actually gave me the advice because we were looking to see if any complex's were up for sale at all and what are the prices around etc. I hope this helps someone else out there! Let me know what you think...I'd love to know more. I really want to invest in a condo, townhouse or apartment building. I think this would have a phenomenal amount of profit once you fully own it.
I’m learning more and more about real estate investing from a book I picked up titled, ” The Best Real Estate Investing Method…Ever!” by author N. Xavier Arnold.
You can’t go wrong with the best methods. I will have to learn more about it before I do it of course but just wanted to let you in on the best kept secret! My realtor actually gave me the advice because we were looking to see if any complex’s were up for sale at all and what are the prices around etc.
I hope this helps someone else out there! Let me know what you think…I’d love to know more.

]]> By: How exactly does investing in Real Esate with a home equity line … | Property Invest http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/comment-page-1/#comment-25464 How exactly does investing in Real Esate with a home equity line … | Property Invest Tue, 09 Feb 2010 19:11:02 +0000 http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/#comment-25464 [...] the rest here: How exactly does investing in Real Esate with a home equity line … Tagged with: and-lectures • breakdown-the • breakdown-the-numbers • have-heard [...] [...] the rest here: How exactly does investing in Real Esate with a home equity line … Tagged with: and-lectures • breakdown-the • breakdown-the-numbers • have-heard [...]

]]> By: bodyguard http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/comment-page-1/#comment-25448 bodyguard Tue, 09 Feb 2010 16:03:04 +0000 http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/#comment-25448 Sorry, this request needs professional help with a cost... Sorry, this request needs professional help with a cost…

]]> By: Expert Realtor http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/comment-page-1/#comment-25449 Expert Realtor Tue, 09 Feb 2010 16:03:04 +0000 http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/#comment-25449 If you are stating "hopefully" the rent will cover your expenses, then you CANNOT afford the investment. Rule of thumb (and Suze Orman says this over and over again...and those of use that DO successfully invest follow it as well): If you MUST have the rent to cover the mortgage, then you CANNOT afford the investment property. There is no guarantee that you will be able to rent the property or keep it rented. When you take out a HELOC you have to pay it back, at a variable rate of interest, which means that you have no idea if your rental income will cover everything or not. Don't make a mistake where you will lose both houses...that is what is happening alot right now, and banks are starting to stop routine short-sales. If you are stating "hopefully" the rent will cover your expenses, then you CANNOT afford the investment.

Rule of thumb (and Suze Orman says this over and over again…and those of use that DO successfully invest follow it as well):

If you MUST have the rent to cover the mortgage, then you CANNOT afford the investment property.

There is no guarantee that you will be able to rent the property or keep it rented. When you take out a HELOC you have to pay it back, at a variable rate of interest, which means that you have no idea if your rental income will cover everything or not.

Don’t make a mistake where you will lose both houses…that is what is happening alot right now, and banks are starting to stop routine short-sales.

]]> By: davidlitterick http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/comment-page-1/#comment-25446 davidlitterick Tue, 09 Feb 2010 16:02:55 +0000 http://investing.hirby.com/how-exactly-does-investing-in-real-esate-with-a-home-equity-line-of-credit-work/#comment-25446 There are several ways to invest in property. However, today's market is not for the newbie. You need to know how to do market research, be able to analyze path of progress data, understand the market you are investing in, have a good attorney, which is easily the biggest challenge since they all think they know real estate, be a marketing specialist to get a good deal, be able to negotiate with sellers, be able to fix up and repair, stage and finally sell your home to realize your return. And when you have finally mastered that, you are going to have to be an expert at managing cashflow. You also do not want to be putting ten percent on anything if you have to come up with the other 90% as collaterlized loan unless, as you rightly point out, you can come up with the cash flow to cover two mortgages. the other problem is that if you catch the investment bug, you will find that this strategy will not work when traditional lenders cut your supply of money off after a few houses. I think the solution you are looking for is how to invest your money from your equity line and gain a higher return on the money the equity line is costing you and still be safe. Why not become the bank? As an investor, I am continually buying, and pay extremely high interest rates because the availability of money is what is important to me. Your loan would be secured by a recorded mortgage at 65% of fair market value, which means that not only do you make a high return on your money, but you also have the guarantee of having a property with lots of equity in it as collateral. email me if you would like to chat more about investing. davidlitterick@optonline.net There are several ways to invest in property. However, today’s market is not for the newbie. You need to know how to do market research, be able to analyze path of progress data, understand the market you are investing in, have a good attorney, which is easily the biggest challenge since they all think they know real estate, be a marketing specialist to get a good deal, be able to negotiate with sellers, be able to fix up and repair, stage and finally sell your home to realize your return. And when you have finally mastered that, you are going to have to be an expert at managing cashflow.

You also do not want to be putting ten percent on anything if you have to come up with the other 90% as collaterlized loan unless, as you rightly point out, you can come up with the cash flow to cover two mortgages. the other problem is that if you catch the investment bug, you will find that this strategy will not work when traditional lenders cut your supply of money off after a few houses.

I think the solution you are looking for is how to invest your money from your equity line and gain a higher return on the money the equity line is costing you and still be safe. Why not become the bank? As an investor, I am continually buying, and pay extremely high interest rates because the availability of money is what is important to me. Your loan would be secured by a recorded mortgage at 65% of fair market value, which means that not only do you make a high return on your money, but you also have the guarantee of having a property with lots of equity in it as collateral.

email me if you would like to chat more about investing.

davidlitterick@optonline.net

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