My Real Estate Tips

According to CNN and Freddie Mac, recently residential mortgage loan rates have fallen to a 38 year low.  That’s really great, now that property values have fallen to a more realistic level it finally looks like a good time to buy property.  These rates don’t directly apply to all types of Real Estate of course, commercial, land (both rural and city), and multifamily rates will be different, but generally speaking all the rates seem to be coming down. 

Those of you who are interested in getting into a home for the first time, there are wonderful new programs that will assist you with your down payment and allow up to 6% of your closing cost to be paid by the seller (which many are happy to do).  6% should cover almost all your cost of closing including some prepaid items like taxes and insurance.  Check out these new programs.

For those of you who took a beating and bruising in the stock market, you can use principals you learned there and make some, if not all, of those losses back using leverage (see my articles “Investing in Income Producting Properties, Part One and Part Two” in the Archives).  I think there is an excellent opportunity these days for the person who is looking for an investment and who wants to get a place to live at the same time.  FHA has a program where you can buy up to four rental units (total loan can’t exceed $289,000).  As long as you plan to occupy one of the units yourself your down payment can be as low as 3-1/2%.  On $289,000 that’s only about ten thousand dollars.  It gets even better; the seller is allowed to pay your closing costs up to 6% on this one too.  Even better, you can use the income on the other three units, assuming you buy a fourplex, to be part of your qualifying income for the loan.

Buying properties that need repair and fixing them up is not only fun and can get your creative juices flowing, it’s a better than ever business to look at today.  If you have basic handyman or woman skills you can get some real buys in these properties.  Whether you buy them out of foreclosure or from people who don’t have the time, knowledge, or inclination to see a property restored through completion, those skills of yours are worth big bucks today.  There is more of this type of property on the market now than ever before.  For guidance in this kind of investing activity look at Fast fixer-upper profits. 

There are good opportunities to build income in Real Estate today more than ever before, because of this economic crisis.  Don’t sit on the sidelines and be caught ten years from now looking back and saying I wish I had gotten into Real Estate ten years ago when every thing was cheaper and available.  Get out there and find one of these opportunities that will work for you.  Be cautious and examine these programs before you get involved, we are not making guarantees here, just encouraging you to see if there is a Real Estate opportunity that can bring success to you in what looks like an environment full of opportunity.

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