5 tricks to make it big with real estate investing

Real estate investing is one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.

Real estate investing is really an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions. Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tricks that can make real estate investing profitable for you:

1) Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA): Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.

2) Looking for old listings: The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.

3) The hidden treasure: A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.

4) Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.

5) Keep tab on the newspaper announcements: Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.

You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny.

You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.

That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget.

If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.

The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest.

See what I mean… it really IS the little things and you still eat lunch everyday AND that was only one place to save money in your daily living without doing without one thing you really need. There are a lot of places to cut expenses if you look for them.

Set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.

If you want to be able to make a down payment on a house, start a college fund for your kids, buy a sports car, take a vacation to Aruba… anything… then that is your goal and your reason to get a handle on your financial situation now.

Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much…just by a little each week but they continue to creep up and up.

All it takes for the price to jump up by a lot is a little hiccup in the world wide market, note the price of gasoline as it relates to world affairs.

There is a way that we can keep these price increases from impacting our personal finances so much and that is by buying in quantity and finding the best possible prices for the things we use and will continue to use everyday… things that will keep just as well on the shelves in our homes as it does on the shelves at the grocery store or hardware store.

For instance, dog food and cat food costs about 10% less when bought by the case than it does when bought at the single can price and if you wait for close out prices you save a lot more than that.

Set aside some space in your home and make a list of things that you use regularly which will not spoil. Any grain or grain products will need to be stored in airtight containers that rats can’t get into so keep that in mind.

Then set out to find the best prices you can get on quantity purchases of such things as bathroom items and dry and canned food.

You will be surprised at how much you can save by buying a twenty pound bag of rice as opposed to a one pound bag but don’t forget that it must be kept in a rat proof container.

You can buy some clothing items such as men’s socks and underwear because those styles don’t change, avoid buying children’s and women’s clothing, those styles change and sizes change too drastically.

Try to acquire and keep a two year supply of these items and you can save hundreds of dollars.

Even veteran mortgage brokers agree that it is important nowadays for people who want to get mortgages and loans through brokers to get good ones. Most brokers who have been in the business twenty to forty years ago admit that the mortgage and loan scene at present times is far different from the one twenty to forty years ago.

Before, traditional mortgages come in fixed rate packages with the same price and the same length of paying period. Now, it’s different. Leonard Wineburgh, a broker and president of Chicago-based Dwinn Shaffer & Co tells us why. Interviewed in a recent article in the National Real Estate Investor, he said that there were no prepayment penalties before because these weren’t existing yet. Aside from this, he claims that there were only a handful of lenders to work with and searching for a loan was not as complex as it is now.

He also noted that loans today have different kinds of provisions that a mortgage broker must work with aside from documents such as appraisals, guidelines from Environment Protection Agency, engineering reports and other paper works that weren’t available years ago. He said that loan business is very sophisticated nowadays.

Sophisticated and always changing, yes. Loan companies keep on churning out packages and programs that offer several options and choices in mortgages. Which is a good reason why borrowers should seek a good mortgage broker.

Another reason why a borrower needs a good mortgage broker is to spare him from headaches and other expenses. With work and families taking up our time, it’s difficult to keep up with interests and rates that change as frequently as the weather aside from keeping track of lenders that could offer us the lowest and best deals.

These two facts are the reasons why a mortgage broker comes in. A mortgage broker could find the lowest rates easily for their clients with their access to numerous lending contacts. Aside from this, they can negotiate provisions that could be bothersome for us to do personally and find stop-gap financing should a traditional loan comes up with some problems. A mortgage broker can also ensure that the closing for the loan or mortgage comes on schedule following the contract.

But, before getting a mortgage broker, it is important to remember that a broker is not necessarily a good broker. Some deals can either make or break depending on the broker you choose. Here are some guidelines provided by MortgageFit.Com that can help you decide the broker who is right for you:
- The mortgage broker must be affiliated to many lending institutions and should be licensed.
- The mortgage broker should be working at a reputable institution. The name of the company could be checked at the Best Business Bureau or the Chamber of Commerce.
- The mortgage broker should provide you with the names and contact numbers of people who can be contacted for credibility check.
- The mortgage broker should ask you what you want on your loan. He must ask you questions rather than on giving you lots of facts. He should prioritize what you need and should come up with ways to fit this with various deals available in the industry.
- The mortgage broker should have with him various lists of deals that he can offer. This is a good quality because if not, you might get the best deal.
- The mortgage broker should be knowledgeable and competent with everything that concerns a mortgage or a loan.
- The mortgage broker should be paid on commission which will make him or her work harder for you.
- It is recommended that the mortgage broker should have a local branch near you for it to be accessible should there be any problems with your loan.

If you find a mortgage broker who has all these qualities, then you need not worry. You will be in safe hands while dealing with your mortgage.

If you are one of those people who have difficulties paying your first mortgage and you are looking for options to help you with this, mortgage refinancing might just as well be the solution for you.

Mortgage Refinancing is what usually financial experts recommend leveraging mortgage rates. It is fundamentally paying off your first mortgage and getting a second mortgage. Most borrowers who for mortgage refinancing do so to have immediate equity on the mortgage and to change loan type. Other reasons include to take advantage of improved credit ratings. But, the most popular reasons for mortgage refinancing is to obtain lower interest in the mortgage to lower monthly payments.

Before you can get a mortgage refinancing, various information that were required in your first mortgage will again be asked from you such as your financial records and credit reports for you new loan report. The lender will require information about your debts and current assets, verification of your employment and your income, your financial accounts such as checking and savings and the title of your land. Lenders may also require you to submit an appraisal and the survey of the site where your home is constructed or will be constructed.

Information about your first mortgage such as your current monthly payments and outstanding mortgage balance will also be required by the lender before mortgage refinancing is approved. Aside from these, the status of insurance payments and property tax will also be considered. In cases where you are refinancing from another lender, original lender’s contact information should also be submitted.

Of course, when you undergo mortgage refinancing, certain fees and costs are involved. Some fees that are originally paid during a mortgage closing out are paid during a refinance. Some of these are:

- Application fee
- title search
- title insurance fees
- appraisal costs
- prepayment penalties
- loan origination fee
- discount points
- and if applicable, legal service fees.

Some financial institutions offer negotiations on these. And others allow borrowers not to pay these costs but are expected to have a higher interest rate in their mortgage refinancing.

It all sounds easy enough but just as you did on your first mortgage, there are some things you need to consider before going for mortgage refinancing. Fannie Mae, a well-known stockholder owned company that provides guidelines for conforming mortgage loans provides these considerations you need to assess in yourself before considering mortgage refinancing:
- the length of time you think you’ll stay in your house
- the number of years left to pay for the existing mortgage
- the ability to afford the costs involved and,
- the ability to save money while paying the loan

To further see the impact of mortgage refinancing to your financial plans and objectives, many mortgage calculators are available online. There are usually different variants of these depending on the type of mortgage refinancing that you want and need. Some calculators compute whether mortgage refinancing will lessen costs, while others are used for refinancing 2 mortgages. Another calculator can be used to study if mortgage refinancing of one mortgage into two mortgages can lessen costs while a calculator for borrowers enrolled in Adjustable Rate Mortgage who want to refinance in Flexible Rate Mortgage is also available.

Aside from self-assessment and mortgage calculators, it is also recommendable for you to ask advice on mortgage refinancing from your financial adviser and on the lending company where you had your first mortgage.

Internet banking institutions offer insurance products along with their many other services. It is a fast and easy way to set up coverage for all your needs. This is because internet banking companies offer several different types of insurance.

Car insurance is one kind of insurance you cannot do without unless you do not have a car at all. Insurance is a legal requirement that you cannot escape. Most people, in fact, prefer to have more than the basic required levels of insurance. They want to know they will not lose everything if something goes wrong. Internet banking offers this option.

You can go to internet banking websites and click on the insurance tab to get information. You can also sign up online. Because you will be entering personal information, you will need to sign up with the internet banking institution first.

Then, you will give your name, address, and other pertinent information. You will be asked questions about your car: its make, model, condition, etc. You will then be rated according to your driving record, your car’s information, and your area. Internet banking makes it possible for you to do this from the comfort of your own home.

Another insurance product offered by internet banking sources is travel insurance. Many international internet banking companies offer this. They offer coverage for medical expenses when you are out of your home country. You will not have to pay cancellation fees if you have this coverage. It will address such issues as lost luggage and theft of travel documents. It is a good insurance to have if you can get it by internet banking.

Many internet banking operations provide life insurance. You can pay for term insurance with a simple automatic deduction from your internet banking account if you choose to do so. You will have to fill out an online information form about yourself.

It will include basic demographic facts about you such as age, race, and area of residence. Then, it will get to personal questions about your health. All this will be used to determine where the internet banking service will set your rate. They will get back to you in short order with an offer of a particular rate and policy.

Some internet banking companies go so far as offering health insurance. Health insurance is usually a costly business for anyone buying an individual policy. The internet banking company will set you up with this insurance for a competitive fee. However, do not expect it to be cheap. That is just the nature of the product.

Bonding insurance is a seldom offered, but important insurance for some internet banking customers. This is the insurance for the liability of people who are put in a position of trust of the money or valuables of others. For example, a locksmith must be bonded. A few internet banking operations make this insurance available.

CEO’s of internet banking institutions are constantly on the lookout for ways to make their services more appealing to the consumer. If offering a multitude of insurance options will help bring customers to their website, then that is what they will do.

Perhaps you have decided that internet banking is for you. Now, you have to get set up so that you can start using online services. Depending on which kind of Internet Company you are going to use, there are different ways to start using internet banking.

If you want to register for internet banking with your bricks and mortar bank, or “clicks to bricks” as it is called, you will find the process simple. You can call the bank and ask to register for their online banking services.

They will send you the information you need. You will receive an instruction sheet in the mail. It will explain how to log on to the internet banking website. It will also give you a unique username. Usually, this username will not change.

The letter will also advise you on security issues with internet banking. It will explain requirements, such as that you have 128-bit encryption on your computer. It will tell you how to enter your username on the bank’s website. It might counsel you to type in the bank’s URL carefully to avoid phony websites that are set up to get your information.

The next letter you will get will be one with your temporary password. It will give you instructions on how to change your password. It will tell about the various security tokens you have to choose, such as images and captions. Then it will tell you how to sign on to the bank’s site and begin internet banking.

If you are using a virtual bank, the process is a little different. To begin, you must first open an internet banking account with the virtual bank. You can start by choosing the virtual bank you will use for your personal or company’s business.

Many considerations are the same as with bricks and mortar banks. You want to make sure they are FDIC insured. You will be interested in their interest rates on savings accounts, loans, and certain checking accounts. It might be necessary to know the bank’s overdraft fees.

You will also be wise to read any information they have on their rules and procedures. It may be dull reading, but it can be important to you. You need to know what your rights are and what the bank expects of you. You will be asked to agree to these terms. If you are doing your internet banking with a virtual bank, print off this information.

Once you choose a virtual bank, you will set up your account. You can do this by starting at the bank’s website. Make sure it is the reputable virtual bank you have investigated before you give your personal information or send any money.

The virtual bank will let you choose a username and password, within certain parameters. Then, you can get down to the business of starting your internet banking account. This will start with some input from you.

You will give all the usual information that you would give to any bank where you set up an account. Common questions are your name, your address, your phone number, your social security number, and your place of employment. Then, you will send the virtual internet banking company some form of deposit to get the ball rolling.

When you have yourself all set up to do internet banking, you can start making transactions with the click of your mouse. It is fairly simple, whether you are doing internet banking by clicks to bricks or virtual banks.

The key to any relationship particularly when it comes to money is choosing someone you can trust. A stock broker is essentially your agent in charge of your money. The main role of a stock broker is to provide the investor with timely good advice on picking the right investment for you and your money.

A stock broker must be qualified to sell equities. In order to be certified the stock broker must be educated and pass state administered tests. Aside from the basic minimum qualifications a stock broker has a track record in his or her handling of stock portfolios.

A smart investor will ask the potential stock broker about his accounts for the past five years. Questions that require the stock broker candidate to discuss their investment strategy. What stock picks has he or she made that turned a profit. What stock picks did not show gains, but losses.
If the stock broker works for a brokerage house and most do, ask about the clients of the firm.

The stock broker is like any professional you would hire to perform a service. You are interviewing a candidate who will not only advise you on stocks and other investments, but someone who will take your personal welfare above all other considerations. Have a discussion with several candidates on the phone. The next step is to come up with a short list and have a personal meeting with the candidate stock broker.

There are regulations and government entities that regulate stock brokers in every state. There is arbitration remedies for damages you may incur if the stock broker has acted negligently in the handling of your account. These are bottom line safeguards. You want to pick someone who will never place you in that position.

In your selection process for a stock broker keep in mind the following points:

- A referral from a friend for a stock broker is useful, but not the final word.

- Hiring a friend that is a stock broker can be problematic if a disagreement occurs.

- From the first contact with the stock broker does he or she act attentive and return calls.

- Does the candidate stock broker ask you about your comfort level in investing.

- Does the candidate stock broker provide you with insight into his or her investment strategy.

- Does the candidate stock broker’s investment strategy coincide with your ideas about investing.

- Ask the stock broker candidate to explain limit orders and other means of protecting your investment.

Is the candidate stock broker forthright in telling you of in-house stock portfolios. Many brokerage houses have baskets of stocks they promote under the firms name. How has the firm’s stock package done over the past four quarters.

When the candidate stock broker is speaking to you does he or she gloss over information or do you get the impression it is a sales pitch. Every stock broker is a sales person, but there are limits in this field.

Finally, never make a decision on the spot. After your meeting face-to-face go home or back to your office and consider your choices. Pay particular attention to your gut reaction after you have left the meeting. Is this someone you trust to carry out your wishes and provide you with sound investment choices.

In all major purchases and undertakings we make, quotes are essential to see if we can afford a certain program or project and if we are able to get the best deal from among the numerous deals various companies are offering to address what we need and want. This is also true if we have plans of getting a mortgage.

A mortgage quote is an estimate or offer made by lending companies to potential borrowers for a home mortgage. It usually contains the estimated monthly payments you need to give for a home mortgage

A mortgage quote is influenced by a number of key factors such as the type of the loan you want to avail of, the number of years you need to pay the mortgage and your credit report. Mortgage quotes vary from one lender to another so, it is good to check and try out the various mortgage quotes offered by various lenders. The Internet is a very good source to get each online lender’s mortgage quote.

Aside from being able to get the best deal among lending and mortgage companies, mortgage quotes are essential in purchasing or refinancing such that you also get to know the latest mortgage rates in the market. Mortgage rates fluctuate and change every time even every hour for every state (if you did not know this, mortgage rates vary from state to state). Because of this, it is important that you check the mortgage rates frequently and check if there is an expiration date coupled with the mortgage quotes you got.

When getting a mortgage quote, you also have to make sure that you are well-informed not only of the interest of the mortgage but other information as well such as knowing if the loan is interest-only or is the principal being paid off at the same time while paying. It is also important to be well-informed and knowledgeable about the terms of your home mortgage or loan. There are different types and categories of mortgages and loans and several types of interest and paying periods can be applied to all.

Aside from all of these, it is important that you make sure that the mortgage quote you get from lending companies that you are interested in should include information about other costs that you are expected to pay should you avail of their mortgage programs. Some of these include property taxes, closing costs, insurance costs, PMI costs and other miscellaneous costs which are all essential expenses and rates to be knowledgeable of when you are still thinking how much you can afford for a mortgage loan.

There are many lending companies out there who are willing to give you a mortgage quote but before filling in their forms, make sure that these mortgage companies are credible and have good and standing record.

To do this, shop around and at the same time, try out the mortgage quote being offered that you think will work best for you and your situation. Although the Internet can be a very rich source of listings of lending companies, it is also good to try and check out mortgage quotes offered by local lenders through your local newspapers and magazines and in your telephone directory. Some local lending companies can also be as competitive and as good as the online companies. This is also much favorable for a borrower who wants a personal touch when being assisted with his mortgage quote and other lending needs.