Millionaire Real Estate Agent Ebook

Real Estate Essentials

Real Estate Essentials

Tap into the secrets of the top investors… Discover The Untold Real Estate Investing Secrets Used By The World’s Top Millionaires To Generate Massive Amounts Of Passive Incomes To Feed Their Families For Decades! Finally You Can Fully Equip Yourself With These “Must Have” Investing Tools For Creating Financial Freedom And Living A Life Of Luxury!

Get My Free Ebook


Fast Track Profit System

Fast Track Profit System by Cody Sperber is a complete and step-by-step methods about real estate investing guide that can assist you learn how an investment can progress from beginning to end in an in-depth look. Fast Track Profit System also can be a perfect method for beginner, due to the fact that it is very simple to implement, and it does not really need budget for promoting, a great credit rating, or another particular experience to start off. Fast Track Profit System is created exclusively for any investors who're bored with victimization, manipulated and tricked by scammers and sales agents that propel your business without having results. Fast Track Profit System is a method that is the main principle is to prove you the important solution to long-lasting real-estate successfulness which could show you how to jump on pathway, reach your goals and make the type of life and future that you have always wished for.

Fast Track Profit System Overview

Rating:

4.6 stars out of 11 votes

Contents: 20+ HQ Videos Course
Author: Cody Sperber
Price: $297.00

Download Now

Buying Real Estate with Option Contracts

The option contract is an effective method for buying real estate with no down payment. Unfortunately, this fact is hidden from the vast majority of homebuyers and prospective investors. This article will attempt to shed some light on this tactic. If you plan to use this tactic to acquire investment property, please take the time to review the Creative Real Estate Investment Guide in the Real Estate Investing section.

Overview of the Real Estate Investment Process Preparation Planning Real Estate Investment Analysis Tools

For lenders, the bottom line often focuses on the Debt Service Ratio (DSR). With larger investors, the focus is normally on the anticipated return on investment (ROI) and the capitalization rate. If you are serious about real estate investing, you must understand the key financial and analysis terms involved with real estate investments. Fortunately, they're not difficult to understand. They are, in many ways, common sense. These terms are not accidental concepts. They were developed as a way to gauge the subject property's chances for success. Many beginning and novice real estate investors feel overwhelmed when these terms and figures are thrown at them. To avoid that feeling, you need to recognize and understand the following concepts

Real Estate Investing

Creative Real Estate Investing Guide Overview of the Real Estate Investing Process Standard Lending Requirements Creative Financing Basics No Down Payment Programs Looking for Target Properties Property Management Basics Getting Started Guide to Preparing a Business Plan Analyzing, Building & Repairing Credit Property Take-Over Checklist Rental Application Sample Lease Agreement Installment Agreement & Proposal Sample Purchase Option Property Inspection Checklist Property Investment Analysis Form Preapproval Request Questionnaire We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please...

Real Estate Investment Trusts

The REIT is a type of legal business organization and securitization that was created by the U.S. Congress to encourage real estate investment. Ownership interests in REITs are normally traded much like other securities such as stocks and bonds. We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

The Housing Bubble Reaches the Breaking Point

The very large flows of mortgage funds over the past two years have been described by some analysts as possibly symptomatic of an emerging housing bubble, not unlike the stock market bubble whose bursting wreaked considerable distress in recent years. Existing home prices (as measured by the repeat-sales index) rose by 7 percent during 2002, and by a third during the past four years. Such a pace cannot reasonably be expected to be maintained. And recently, price increases have clearly slowed But any analogy to stock market pricing behavior and bubbles is a rather large stretch. Now that we are in a crisis, it is instructive to look back and examine whether there were ample signs of a housing bubble and whether heeding these warning signs could have mitigated the damage.

Lease with a Purchase Option

This approach of obtaining a lease with a purchase option is advantageous for home buyers and real estate investors who currently cannot qualify for a sufficient mortgage loan. It is also another variation of the no down payment plan. This article looks at this program in the following areas 2. Real estate investing with this approach.

Zoning Building Codes

We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site. The income or revenue available after operating expenses, but before the payment of any taxes. Compare to the After-Tax Cash Flow entry. For more information, see the Real Estate Investment Analysis Tools article in the Real Estate Investment section.

Investment Property

Homeowners cannot depreciate the value of their home. The IRS only allows investment real estate to be depreciated. Real estate depreciation is also applied only to improvements, the term used to classify buildings, landscaping, pavements and other artificial adjustments of raw land. The IRS does not allow the real estate investor to depreciate the value of the land.

Develop Clearcut Objectives For Using The Cash You Will Draw Out Of Your Property

If you are interested in becoming a real estate investor, the first thing you should do is ask yourself why you want to extract cash from the equity in your home paying children's college bills, relieving credit card debt, taking care of elderly parents. When you are sure there is a good reason to use the cash, then figure out how much you can extract.

The Concerns Over Interest Only Mortgages

Needless to say, all of the above underline why it is so important to turn to a mortgage professional who can explain all of these various possibilities. The real estate investor must have some sense of how the index moves of what constitutes the fully indexed rate and, it goes without saying, of the length of the terms for the interest-only payment period. His questions to us were practical Should he buy a home now Or should he put the money that he was able to save in a 401K, because the stock market might outperform the real estate market over the next decade He had been putting 800 a month into a401K.

Interest Only Mortgages The Increasingly Popular Way to Free Up Usable Cash

People have been rushing to buy real estate in South Florida and elsewhere. Houses that were once priced well beyond the means of potential real estate investors have suddenly become affordable. The reason It is the new financing method called interest-only loans. Interest-only mortgages will especially help the real estate investor who wants to invest in real estate because it frees up usable cash that he she would not have had otherwise. The reason for the popularity of this kind of mortgage is remarkably uncomplicated there is simply no advantage ever in a real estate investor making a principal payment on a mortgage. Nothing bad came of this system of mortgage payments as long as the homes retained their value. But the real estate market There is risk in any investment vehicle. Many people are under the misguided impression that real estate values will continue to appreciate indefinitely and consistently year in and year out. Yet real estate values are like any commodity that runs...

Dont Skip The Attorney

You may save money with a FSBO purchase by avoiding a real estate agent, but you can probably lose more by skimping on an attorney. It is crucial that the FSBO shopper select an experienced real estate attorney to represent their interests in such a purchase transaction. The rest of the typical FSBO purchase proceeds as a normal sales transaction. Without a real estate agent to guide you, however, it is important to have a good attorney to review all of your documents and protect your interest. Also, the real estate agent normally provides the all-important sales contract. In lieu of the real estate agent, the attorney should be the one to prepare and provide the sales contract.

No Down Payment Programs

Although neither widely taught among real estate agents nor openly advertised by most lenders, there are several no down payment programs and options available for the smart property investor. However, as with most if not all short-cuts, there is always a price usually either in pricing, restrictions or time. Note that if you are serious about acquring investment properties with no down payment, please take the time to review the Creative Real Estate Investment Guide in the Real Estate Investing section.

Price The Primary Advantage

As with foreclosure properties, you should not buy a FSBO home at its market price. If you are buying it at its market value, you might as well go through an experienced real estate agent who can probably get you a better and more secure deal. The advantage of FSBO properties for the seller is that the seller avoids paying 4 -7 commission to the real estate agents involved with the listing and sale of the property. It's only fair that the seller passes on some of that savings to you. Unfortunately, many FSBO sellers are more aware of how much the property is worth to them, rather than to the market. If you wish to proceed with negotiations in such cases, then you should have some appraisal values or recent sales listings of comparable properties with which to back up your arguments. Use facts about recent sales in the area to persuade the FSBO sellers to lower their asking price to a more realistic level. The only exception to this rule, of never buying FSBO homes at market prices, is...

VA offers REO deals with financing to veterans and nonveterans

You cannot directly negotiate with or submit a bid to VA. You must submit your bid through a VA-approved real estate agent (your foreclosure pro). 12. When necessary, VA evicts holdover tenants or homeowners before it markets its REOs. At closing, you will receive a vacant property.

Creative Financing Programs

This section offers information and tools about different creative financing methods that you can use to obtain and invest in real estate. The articles and items in this section include the following How to Buy For-Sale-By-Owner (FSBO) Properties Sample Offer Letter to FSBO Seller. An example purchase offer on a for-sale-by-owner (FSBO) property. We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

The Lowdown on Low Downs

Of course, just because you can buy with little or nothing down doesn't mean it's wise for you to buy. Financial discipline must precede property investment. If your lack of cash results from a spend and borrow, no need to worry attitude, shape up your finances before taking on more debt even if it's constructive debt. Little or nothing down works best for people who manage their money well and or those who want to consciously use leverage to maximize their wealth building. If you fit either of those descriptions, here's the good news.

Preapproval Recommended

It's also advisable to have a mortgage preapproval ready before any FSBO shopper starts searching for possible FSBO purchases. With a mortgage preapproval, the FSBO shopper can close the purchase almost immediately. This is an additional negotiating advantage for the savvy buyer.

Locate a foreclosure pro

Most mortgage lenders do not sell directly to REO buyers They don't like the unfavorable publicity and they want to promote good relations with Realtors. Because mortgage lenders expect Realtors to bring them new loan business, these same lenders can't then turn around and become FSBO (for sale by owner) dealers. In business, reciprocity rules. No matter what approach to REOs and foreclosures you choose to follow, talk with realty pros who make the business a career. If you buy an REO from HUD, VA, Fannie Mae, or Freddie Mac, you must process your offer through a licensed real estate agent. Only in exceptional circumstances

Why an Assumable Fixed Rate

As another possibility, look for a low-rate FHA VA loan that you can assume. At a time when market rates were at 10 percent, I sold a property with an assumable 8 percent fixed-rate in two days simply by word of mouth. I never hired a sales agent or even ran a newspaper ad. On another occasion when market rates were at 16 percent, I bought a property with an assumable 13.75 percent from a for-sale-by-owner (FSBO) during the first week he had placed the property on the market. Also, the subject to property that I bought (see Chapter 3) with a 10 percent (way below the current market rate) interest rate was a word-of-mouth transaction.

Exercise purchase with refinance loan after months

Tiffany has found an apartment building for sale by owner. The seller wants 400,000 Tiffany discovers that the property is actually worth about 500,000. Unfortunately, remember that the bank will base its lending on the lower purchase price and not on the higher appraisal value. Tiffany and the property can qualify for an 80 LTV loan from the bank, but she does not have the 20 down payment.

Real Estate Closings Transactions

Also called real estate settlements, real estate closings are typically anxious affairs for most homebuyers and beginning real estate investors. This is not surprising, when one considers the legal issues being negotiated, the large sums of moneys involved and the dozens of pages that most buyers have to sign at the closing.

Buying with Loan Assumptions

With many commercial properties and select residential properties, a loan assumption can be an advantageous alternative to a standard purchase. The loan assumption is an ideal alternative for prospective home buyers and real estate investors currently unable to qualify for sufficient mortgage financing.

Deducting Depreciation

Real estate investors who grasp the concept of depreciation deductions quickly realize its benefits and advantages. Even investors who do not fully grasp the concept still appreciate the tax benefits of depreciation deduction. This review will review the requirements and guidelines for real estate depreciation deductions

Title Title Insurance

As the real estate market evolved over the past century, the importance of assuring clear evidence of title became urgent. There is usually few if any questions about the validity of funds provided at closing. The deed conveying the title typically is not released until the check clears. But how is the buyer assured the title being conveyed and the deeds conveying the title are both valid and marketable.

Never Pay Off Your Mortgage

Investing in real estate is exciting and can bring huge returns. But, especially if you are new to the game, you have to be careful about how you allocate funds. By following conventional advice, you may have been making a profound and costly mistake in how you dispose of your money. This all-too-common mistake is in transforming all of your potentially usable cash into equity in your home. What the banks should have been doing was to help people accumulate their own ready-to-use cash. Instead they have done a magnificent job of convincing future real estate investors to turn over their hard-earned income to the banks in the form of enormously high mortgage payments. The size of a mortgage payment depends on how much one borrows (the principal), the length of the loan (its maturity or term), and the interest rate. Investors should look for advice from those who provide it across the whole gamut of real estate and mortgages. They should look for specialists like ourselves who can...

Lease with Purchase Option

For current renters who are not quite sure about purchasing or investing in real estate, the lease with purchase option approach may be too valuable to overlook. This lease agreement provides the renter with an option to buy the property at a later date with a pre-fixed price. Moreover, this lease agreement will credit a portion of the monthly rental payments toward the eventual down payment. For a detailed discussion of this option, see the Lease With Purchase Option article.

Go to the next segment Closings and Transactions The Closing Process

We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

The best part you can sell your note for cash

These examples are just a few of the many ways to own mortgages, not property, and get rich without the headache of being a landlord. If investing in real estate notes is something you would like to try, you might want to consider starting small, like with a mobile home note. These can be very inexpensive to buy but are extremely profitable. Look for David Butler's book, Tin Can Alley, the most comprehensive guide on mobile home notes that I've seen.

Rural Housing Service RHS Loan

We hope that you've found our Mortgage and Real Estate Glossary helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

Appraised value doesnt necessarily equal market value

3 Some streamlined refis omit this step. The topic of appraisals is discussed more extensively in my books, Investing in Real Estate, 5th ed. (John Wiley & Sons, 2006) and The 106 Most Common Mistakes Homebuyers Make (and How to Avoid Them), 4th ed. (John Wiley & Sons, 2006).

Home Prices over Time

There were many reasons for the upward movement, as we'll explain in detail in Chapter 2, but the biggest driver of the housing bubble was the simple fact that the amount an average homeowner was able to borrow to buy a house tripled in a relatively short period of time, as shown in Figure 1.3 . to 176,000, a 4.8X ratio. A year later, the figures were 38,000, 274,000, and 7.2X, and by January 2006, with income of only 39,600, the amount that could be borrowed to buy a house was an astonishing 363,000, a 9.2X ratio. This enormous borrowing power persisted for another year-and-a-half until the housing bubble began to burst in mid-2007.

Efficient Sensitivity Analysis of Mortgage Backed Securities

Options because of lack of complete and unbiased information, e.g., they may not be able to obtain an accurate home price, unless they are selling it. And there are also some other fixed variable costs associated with these options, such as the commission paid to the real estate agent, the cost to initialize another loan, and the negative credit rating impact when the borrower defaults on a mortgage. All these factors contribute to the complexity of MBS cash flows. In practice, the cash flows are generally projected by complicated prepayment models, which are based on statistical estimation on large historical data sets. Because of the complicated behaviors of the MBS cash flow, due to the complex relationships with the underlying interest rate term structures, and path dependencies in prepayment behaviors, Monte Carlo simulation is generally the only applicable method to price MBS.

Subprime Lending Grows Rapidly and New Products Gain Acceptance

The rapid growth of subprime lending is a relatively recent phenomenon, even though such mortgages have been around for some time. Figures 3.4 and 3.5, respectively, show that subprime home mortgage originations increased dramatically, from 160 billion in 2001 to 625 billion in 2005. Over the same period, subprime home mortgages outstanding rose from 479 billion to 1.2 trillion. (Both originations and the amount outstanding declined sharply when the housing bubble burst only 16 billion in subprime mortgages were originated during the first three quarters of 2008.)

Low Interest Rates Contribute to Credit Boom and Record Homeownership Rates

The government has always stressed the virtues of homeownership and taken steps to promote it over the years. But while homeownership may be a worthwhile goal in and of itself, providing credit in excessive amounts to the home mortgage market leads to housing booms and busts. The increases in homeownership may therefore last only as long as the housing bubble does and the broader financial sector and economy may suffer tremendously when the bubble bursts.

Statement Of Edward Kramer

There is a very close relationship among the traditional financial institutions, mortgage brokers and real estate agents. Brokers know where to get their clients financed, and lenders have a history of doing business with certain mortgage brokers and real estate agents. It is a symbiotic relationship. Lenders know who is breaking the law and who is skirting the law. They know who the bad guys are. In fact, those were the words used by a mortgage broker who recently confided, We know in our industry, and certainly the financial institutions know, which mortgage brokers are really doing a disservice to clients. Unfortunately, these predatory lending practices are often being funded by financial institutions. This practice may be driven by the need to comply with their Community Reinvestment Act (CRA) obligations. The act was meant to help meet the credit needs of all communities in a bank's assessment area, including low- and moderate-income (LMI) neighborhoods. However, in a perverse...

Calculating Depreciation

First of all, depreciation is mandatory. You must accept and claim depreciation deductions if your property qualifies for depreciation . You cannot elect out of it. Consequently, real estate investors cannot file 1040EZ short forms. You may wonder why someone would forego depreciation deductions there are investors with sufficient deductions elsewhere and don't need any more deductions. Moreover, depreciation tends to be considered passive activity losses so they cannot be easily deducted against ordinary or portfolio income. Real estate investors are most often concerned with the following MACRS tables Gene can therefore deduct up to 22,730 in depreciation deductions against the property's income. If the property generates a passive activity loss, that loss can then be deducted against other passive activity income. As will be discussed in the Passive Activity Deductions section, a net passive activity loss that arises from real estate investments can sometimes be deducted from...

Recapturing Depreciation

Savvy real estate investors also realize that they don't have to pay capital gain and depreciation recapture taxes. They can dispose of their property through a tax-free real estate exchange. For more about depreciation recapture and capital gains , please review the All About Real Estate Capital Gains article.

Refinance and invest the proceeds

Your interest costs (at today's rates) should total less than 7.5 percent, but the rental income plus appreciation of your property should yield (after expenses) 10 percent to 20 percent on the amount of your invested capital. With this spread between borrowing costs and yield, your leveraged rate of return proves wise. If you choose your rental property according to sound investment principles (as explained in my books on real estate investing), you could achieve these high returns with little risk. Mortgage Secrets would never advise you to gamble your home equity with risky ventures. 4 For more details, see my book, Investing in Real Estate, 5th ed., (John Wiley & Sons, 2006). 5 For a detailed discussion of Siegel's faulty analysis and conclusions, see Gary W. Eldred, Value Investing in Real Estate (John Wiley & Sons, 2002). Unfortunately, that 10 to 12 percent stock return figure does not warrant confidence. Stock market volatility creates more destabilizing uncertainty than...

Gaining a Tax Advantage Performing Tenants in Common Real Estate Transactions

Tenants in Common arrangements have become quite popular in recent days because the real estate industry has come to appreciate the great tax advantages that they offer. A TIC is a kind of joint tenancy that can be offered as a replacement property investment to 1031 exchangers. TICs have sponsors that purchase the property and apply for financing on the property. The properties are usually triple-net with A-rated tenants. TICs are at times sold as securities and sometimes as real estate. Tenants in Common arrangements enable people to have individual ownership of the property in question. We recommend that people buy real estate property using a TIC and that they especially do it through an entity known as a limited liability company. In other words, the person forms a single member LLC to purchase his her interest as a tenant in common. The individual ownership of the LLC is viewed as a disregarded entity for tax purposes, which means that the tax benefits flow through to the...

Try it before you buy it

Option (a contractual right) to buy that property at a later date. In the early 1980s, Robert Brass called lease options the most overlooked and underused property finance possibility. At that time, most homebuyers, home sellers, and real estate agents remained clueless about this technique. Times have changed. Wherever I travel throughout the United States, I always check through the local real estate classifieds. In most cities, real estate agents regularly handle lease options and other low-down-payment property finance plans. I have also seen lease options promoted by home builders and developers of new condominiums and townhouses. In San Francisco, one ad from Bay Crest Condominiums boldly announced, If You Can Afford to Rent, You Can Now Afford to Own Exciting New Lease Purchase Option. No question, lease options can bring ownership closer to reality in several ways, such as

Dont Be House Rich and Cash Poor

For a long time, anyone with pretensions of becoming a real estate investor had been trapped in the old-school way of thinking everyone advised him or her to pay off a mortgage as quickly as possible. That meant turning over his or her cash to the banks or financial institutions, leaving the person with little or no usable cash. They were making a higher monthly mortgage payment, and not leveraging their money to make more money. The explosion in the real estate market in our home state of Florida the past few years has been unprecedented. No one has ever seen such interest in real estate. The state has issued 295,000 real estate licenses. There are thousands of real estate agents in southern Florida. The market is truly at an all-time high. It seems that everyone has developed an interest in real estate.

Issues Identified In The Mcp Process Of National Concern

As an added step to these projects, representatives from the Reserve Banks that conducted MCPs met to exchange their individual findings and experiences and also to discuss areas of common concern. Among the issues of common concern were access to homeowner's insurance, appraisals in redeveloping communities, steering by real estate agents and the use of credit scoring technology in the mortgage underwriting process. The last is the subject of the first installment, which provides the context for the next four installments on fair mortgage lending practices involving the use of credit scoring technology. The Federal Reserve Banks of Boston, Chicago, Cleveland, San Francisco, St. Louis and the Federal Reserve Board have representatives on the research committee, and they all have participated in this series.

Accrued Depreciation Accumulated Depreciation

The total of depreciation that has been claimed on a property. Owners of investment real estate must claim depreciation deductions on their annual tax returns for the investment property. When the property is sold, the accrued depreciation deductions must be reclaimed and taxes must be paid on the accrued depreciation . For more information, see the depreciation entry or the Investment Property Tax Advantages Depreciation Deductions article in the Real Estate Investing section.

Create the Ideal Exit Strategy

The primary goal in investing in real estate should be to convert the value of your property into cash. This conversion is known as an exit strategy. There are various exit strategies. Some convert money tied up in equity into cash, and some convert property into other property (performing a 1031 Exchange, for example). When you refinance that new property, you convert that property into cash, and reduce your taxes all part of an exit strategy. Employing cost segregation analysis, i.e., using depreciation to reduce taxes, is another exit strategy. We will be talking about these exit strategies 1031 Exchanges and Cost Segregation Analysis in greater detail in later chapters. People say the real estate market will go up forever they are very mistaken. The one good thing about living to be 60 years old is that I've been through at least seven real estate cycles. If I

Discounted Cash Flow

A financial expression of the estimated current value of future cash flow. This measurement helps to estimate the current value of a property, based on its future earnings. By comparing this current value estimate with the projected development cost, the real estate investor can analyze the profitability of the investment. This calculation begins with the projected future cash flow, and then reduces that cash flow by the discount rate. For more information, see the Real Estate Investment Analysis Tools article in the Real Estate Investing

Tax Shelter

Investments or maneuvers that can produce opportunities to lower income or capital gains taxes. Changes to the tax codes have severely hampered most tax shelters. Previously, paper losses from real estate investments could be used to offset taxable personal income. No longer. The IRS now distinguishes between passive and active income losses from passive income such as most real estate investments can only be offset against other passive income. Passive income losses cannot be offset against active income. For more information, see the Investment Property Tax Advantages Deducting Losses and Depreciation article in the Real Estate Investing section.

Rate of Return

A percentage measurement of revenue generated by an investment for an investor. This rate divides the revenue received by the amount of the initial investment and is usually provided for a specific period. For example, an investor buys a stock for 100 and receives 5 in dividends during the first year. That investment generated a preliminary rate of return of 5 . For more information, see the Real Estate Investment Analysis Tools article in the Real Estate Investing section.

Supply and Demand

Economic principle describing the basically three-part relationship between the supply, demand and price of certain goods. A high-supply and low-demand market will create lower prices (deflation). A low-supply and high-demand market will create higher prices (inflation). A subsidiary concept of the law of supply and demand is that the market tends to adjust itself toward equilibrium. For more information, see the Real Estate Investment Analysis Tools article in the Real Estate Investing section.

Debt Service Ratio

Also called the debt coverage ratio, the DSR is the a measurement of a property's ability to handle a loan debt. The DSR is the projected debt service payments divided by the after-tax net operating income. Commercial lenders often impose minimum DSR restrictions of 1.10 to 1.35. The most common DSR is 1.2, which means that lenders require the property to produce net operating income that is at least 120 higher than the projected debt service payments. For more information, see the Real Estate Investment Analysis Tools article in the Real Estate Investing section.

Final Tips

Please remember that regardless of your credit situation, there are ways to buy a home or invest in real estate. The Damaged Credit Options article offers a thorough discussion of the many options and alternatives available for prospective investors, homeowners and borrowers who have damaged credit. If you are serious about using installment contracts to acquire investment real estate, please take the time to review the Creative Real Estate Investing Guide in the Real Estate Investing section. We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to...

Active Income

Revenue or income generated from a person's direct effort or investor's active participation in a business' operations. Salary and wages from regular employment or self-employment are primary examples of active income. This label comes into play in discussions about Tax Shelters, which contrasts active income with portfolio and passive income, which are the three types of ordinary income. For more information, see the Investment Property Tax Advantages article in the Real Estate Investing section.

Pass Through

Expenses incurred by a property owner or manager that are charged to the tenant, per the lease agreement. In Triple Net leases, for example, the tenant is assessed for the tenant's share of the property's taxes, utilities, insurance, maintenance and operating expenses. For more information, see the All About Leases article in the Real Estate In-Depth section, as well as the Basics of Property Management article in the Real Estate Investing section.

Actual Eviction

A legal remedy available to landlords who have lessees in holdover tenancy. Actual eviction requires the landlord to decline all attempted rent payments, give the holdover tenant adequate notice and filing for court action to forcibly remove the holdover tenant. Federal, state and local consumer protection laws normally require landlords to follow strict guidelines when trying to evict tenants. In most cases, the eviction process can take several months as the eviction must be approved by the local courts and enforced by the sheriff's office. For more information about evictions, please see the Real Estate Management Tenant Issues article in the Real Estate Investing section.

Adjusted Tax Basis

Also called, adjusted cost basis, this is the net book value of a property, on which a capital gain or loss is based. This calculation begins with the basis (original purchase price), to which capital improvements made since the purchase and buying expenses are added any depreciation taken for tax-related deductions is then subtracted from that amount to arrive at the adjusted tax basis. When the property is sold, the capital gains tax is calculated as the new sales price minus the tax basis. For more information, see the All About Capital Gains article in the Real Estate Investing section.

Real Estate Exchange

A tax-free or tax-deferred exchange of similar properties, permitted under Section 1031 of the Internal Revenue Code. As there is no sale, no capital gains are assessed unless one of the parties receives boot--or cash consideration--in addition to the property received in the exchange. The capital gains taxes are essentially deferred until the new owner sells the property for cash or like consideration. The most common types are multiple exchanges or Starker exchanges. For more information, see the All About Capital Gains Tax-Free Exchanges article in the Real Estate Investing section.

Starker Exchange

A type of tax-deferred real estate exchange with a delayed term. This option gives the seller more time to find a like-kind property. For a Starker exchange, the proceeds from the sale of a property must go into an trust company escrow that the seller must not control. The seller then has 45 days to find and 180 days to purchase a like-kind property, which is then bought with the escrowed funds. For more information, see the All About Capital Gains Tax-Free Exchanges article in the Real Estate Investing section.

Depreciation

Under standard actual cash value coverage, insurance policies will deduct depreciation from original cost when calculating reimbursements. For tax deduction purposes, however, depreciation can only be taken on property used in a business, trade or income generation. Personal residences cannot claim depreciation deductions. Depreciation deductions can be calculated with either the straight line method or accelerated cost recovery system. For more information, see the Deducting Depreciation and Investment Property Tax Advantages articles in the Real Estate Investing section.

Real Estate

REXI 's real estate portfolio has taken a beating, along with the rest of the real estate market, but the company has real expertise in the distressed real estate business, which is booming in these troubled times. 2. Real estate investment fund assets, primarily multifamily apartments. Real estate investment funds and Resource Real Estate commenced fundraising for Resource Real Estate Investors 7, L.P. (RREI 7), a 40.0 million offering that will invest in multifamily real estate assets. Through February 3, 2009, Resource Real Estate had raised 20.4 million through RREI 7. We anticipate closing this fund in late fiscal 2009. In addition, Resource Real Estate intends to launch Resource Real Estate Opportunity Fund L.P., a real estate partnership focused on investing in discounted real estate.

About Atlas Mortgage

Atlas Mortgage Corporation is an Oklahoma mortgage Supervised Lender. Atlas's loan consultants have amassed decades of experience in banking, home mortgages, commercial finance and real estate. Atlas is a fullservice mortgage supervised lender licensed to provide mortgage loans for any properties in Oklahoma. Whether you're buying a home, consolidating your debts or building a real estate investment portfolio, Atlas can provide you with the exact mortgage financing you're seeking. We provide borrowers and real estate agents with a realistic assessment as soon as we perform the preliminary qualification. We then employ all our resources to ensure that our borrower receives the best loan possible. We hope that you've found our Mortgage and Real Estate Resource Center helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate....

Purchase Loans

The purchase mortgage loan is any financing used to finance the purchase transaction of a real estate property. Although the typical community bank will only offer a handful of purchase mortgage programs for their customers, there are actually hundreds of different programs available for the home or real estate investment purchase. Tax loopholes and benefits make mortgages and real estate properties excellent tax shelters. The interest that homeowners pay on their mortgage loans are tax-deductible, which reduces the borrower's taxable income. With investment properties, interest is normally not tax-deductible. However, real estate investors can deduct certain expenses--the most profitable of which is depreciation. This article will provide anintroduction to the purchase process that may help home buyers and real estate investors save hundreds, perhaps thousands, of dollars. For more information about purchases, please see the Homebuyer Guide, Mortgage Deed and Promissory Note and...

Real Estate In Depth

Real Estate Trusts Living and testamentary trusts Land trusts Real estate investment trusts (REIT) 24. Real Estate Investment Trusts We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

Syndication

In the real estate industry, syndications are often limited partnerships formed to operate a real estate investment. The general managing partner is the syndicator. We hope that you've found our Mortgage and Real Estate Glossary helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

Background

Resource America went public in 1986 as a specialty finance company that bought commercial mortgages at a discount. It also held some energy assets like gas wells and pipelines. It built up Fidelity Leasing and in 2000 sold it to ABN Amro for 583 million, approximately twice the net assets of the lease portfolio, a significant premium. Later, REXI IPO 'd its energy assets by selling shares of Atlas America in 2004 and then spun off its remaining shares the next year. In 2005, REXI also created Resource Capital Corporation, a real estate investment trust (REIT) that trades separately under the ticker RSO. Overall, REXI has a very good track record of accumulating assets on the cheap and selling them at good prices, with solid gains for shareholders.

Option to Purchase

The right to purchase or lease a property at a certain price for a certain period of time. For example, a lease agreement with a purchase options provides the prospective buyer with a limited option to eventually purchase the property. Any financing that the buyer obtains (after a seasoning period) often will be considered a refinance, so that down payment is not always necessary. For more information, see the Buying Real Estate With Option Contracts articles in the Creative Financing section.

Exclusive Listing

A type of listing agreement between sellers and real estate agents that gives the listing agent exclusivity among all other real estate agents. However, the seller can avoid paying any commissions if the seller finds the buyer without assistance from the seller. If the property is sold through any other real estate agent, the listing agent receives a commission from the seller. Compare this to open listing (non-exclusive) and exclusive right of sale (totally exclusive). For more information, see the Shopping with Realtors article in the Homebuyer Guide section.

Getting Started

Also, remember that regardless of your credit situation, there are ways to buy a home or invest in real estate. See the Damaged Credit Options article for a thorough discussion of the many options and alternatives available. We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

Sale Leaseback

For example, Mark bought a prime industrial lot with the intention of building a new site for his company, which was currently leasing space. After a decade, Mark realized that he didn't want to spend the money to develop and build on the lot. So he enters into a sale-leaseback arrangement with a developer, who buys and develops the property. Mark sells the lot to the developer (for a nice profit) and moves as a tenant into the facility specially built by the developer. On the other hand, the developer obtains a good property investment with a long-term tenant.

Creative Financing

The FSBO purchase transaction may also provide the buyer with an opportunity to exercise an assumption option, which has many little-known benefits for the buyer, including savings of thousands of dollars in interest payments and possible reduced down payments. For more details about the benefits and advantages of mortgage loan assumptions, see the Buying Property With Loan Assumptions article.

History

Dramatically in the case of a highly leveraged financial institution like MBIA. As MBIA has discovered, there are vast differences between municipal bonds and structured finance products. The domestic public finance business has been around for a long time, so it can be modeled with a reasonable degree of accuracy, and MBIA successfully participated in the market for decades. In marked contrast, the structured finance products Wall Street was peddling during the housing bubble were relatively recent creations with risks that were unknown to MBIA (and, as we now know, to the rating agencies who misrated them, the banks that sold them, the regulators that failed to regulate them, and the institutional investors that bought them). MBIA is a classic story of a company stretching to continue its long-accustomed growth by getting into areas it had no business being in and the company and its shareholders have paid a terrible price. As the housing bubble burst and the credit crunch hit with...

Before

Our current MACRS rules were enacted by Congress with the Tax Reform Act of 1986. Prior to 1987, real estate investors used the Accelerated Cost Recovery System (ACRS), which offered a more advantageous depreciation system. ACRS depreciation periods ranged from 15 to 19 years for investment real estate, almost half the time MACRS required.

Multifamily homes

Multi-family homes are known by lots of different names most often they're duplexes, triplexes, or fourplexes (don't get us started on the grammatical incongruousness of fourplex). For those savvy real estate investors who purchased a multi-family residence, don't feel left out. As long as you live in one of the units full

Industry

This section contains articles that discuss different aspects of the residential mortgage loan industry. For borrowers and property buyers who want to know more about what motivates the institutions and parties in the real estate market, these articles are highly informative reading We hope that you've found our Mortgage and Real Estate Resource helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

Avoiding them

A review of real estate capital gains taxation can qet complicated because of the many regulations and allowances provided by law. But a good working knowledge of these tax regulations and benefits can often mean the difference between profit and loss for many real estate investors.

Passive Income

Revenue or income from investments in which the individual investor does not actively or materially participate. Limited partnerships and real estate investments are considered passive. Passive income losses cannot be used against active income. Real estate losses are always considered passive income losses but they may be deducted against active income if the individual actively participated in at least the management decisions and personal active income is less than 150,000. Contrast this with active income and portfolio income, which are other forms of taxable ordinary income. For more information, see the Investment Property Tax Advantages Deducting Losses article in the Real Estate Investing section.

Open Listing

Also called a simple listing or general listing, non-exclusive agreement between the seller and real estate agent that requires the seller to pay commission only if the listing agent is able to bring the buyer to the seller. If the seller finds a buyer through another agent or with no help from the listing agent, the seller will NOT have to pay

The Government

Even the briefest study of the history of financial markets shows that they are prone to boom-and-bust cycles unless governments carefully regulate them. Thus, it's not surprising that the housing bubble was made possible by a complete failure of government at all levels to properly monitor and regulate many different areas. Here were some of the key events

Housing Expenses

A real estate investment trust that invests in both areas allowed by law real estate mortgages and ownership of income-producing properties. For more information, see the Real Estate Trusts article in the Real Estate In-Depth section. We hope that you've found our Mortgage and Real Estate Glossary helpful and informative. We welcome all comments, critiques and suggestions please send emails to atlas atlastitle.net. Remember that whether your are buying a home or an office building, you are investing in real estate. As with all investments, the best investors are those who can gather the most knowledge, tools and resources. Regardless of whether you use our lending services, please spread the word about our resource center to anyone you know who may benefit from our site.

Carrying Costs

Speculators and real estate investors who purchase property with the primary goal of reselling for profit must be especially concerned with the project's carrying costs. Carrying costs refer to the net amount of expenditures that investors must outlay before the property is resold and profits are realized. The carrying cost usually excludes the purchase price and deducts operating income. Unfortunately, uninformed real estate investors often look at just the purchase and resell prices. On the surface, buying a property for 100,000 and reselling it for 150,000 would seem like a no-brainer. This transaction, however, would be a disastrous decision if the carrying costs came to 60,000. Savvy investors know that the purchase price is only part of the total expenses required by a real estate investment. Carrying costs include the operating expenses, as well as the acquisition costs, mortgage payments, capital improvements and selling costs. Understanding carrying costs is often the...