Currently, the  economic downturn has placed many homeowners and potential homeowners in difficult financial situations.

Homeowners

Many are faced with mortgage payments they cannot afford whilst living in a property that has not fallen in value,  but plummeted in value!  It is unfortunate when this situation occurs and there is a lot of stress and worry in trying to deal with this difficult  situation whilst carrying on with “normal life”.

Unfortunately for some,  and fortunately for others, “one man’s problems becomes another man’s opportunity!”

Have to sell

You find that some homeowners are left with no choice than to sell their home or flat  at a low price just to get the burden of payment removed from their finances.

In some cases, properties are also being repossessed and sold at auction or at very low prices just to let the lender get the “bad debt”  of an unpaid mortgage off their books.

Opportunity presents itself

This is the opportunity that is presenting itself to property investors all over the world. The “credit crunch” has had a worldwide effect on property ownership and property values,  resulting in properties being sold at prices which make investment via property entrepreneur a viable proposal.

Potential homeowners

People in this category are people who are currently renting, and up until recently, were considering buying property and becoming property owners.

Banks have closed the doors!

Sadly, one of the major impacts of the economic downturn has been the complete reluctance by banks to lend money with out the security of a hefty deposit.

Many people do not have the deposit at present and cannot save towards the deposit because of the difficult job market and the uncertainty of regular employment.

Happy renting

Another reason is the fact that an increasing number of people across the world are now deciding that they are happy renting long term and have no wish to buy.

The reasons for this are many,  but include the fact that people are more inclined to consider “material” items,  combined with wanting to have a  greater amount of quality recreation time.

This overrides  the need or desire  to actually own a property outright (via the bank!)

Knock on effect

The number of properties available for renting on a worldwide scale is most definitely not increasing at the rate of people who are now coming into the rental market.

The resulting outcome

Less properties for rent + more people looking to rent = increased demand for rental properties.

I felt it was important to explain the above before putting numbers into this article … now we have the bare bones of why the property rental market is attractive,  let’s add some meat with figures and sums.

……………………………………………………………………………………..

Sharpen your pencils!

If you are in the fortunate position of having deposit monies available you are in the “driving seat” when it comes to buying property.

Let’s say you have $ 30,000 saved up in a bank account….this capital is giving you an interest rate return of 5%(for example ) .. This equates to $ 125.00 a month with no increase in capital.

2 can be better than 1!

In a previuous article   (Setting a Fair Rent)  I discussed property types, the fact that 2 can be better than 1,  and the advantage of buying 2 properties as oppossed to 1 property)

For ther purpose of this article I have assumed that you have seen 2 rental properties for sale for $70,000 each… you need to pay $ 140,000  .. you already have $ 30,000 as deposit …..

Bank lending information

The  bank is to lend $110,000 at an interest rate of 5.0% over a 20 year term on a Capital & Interest basis

( your monthly payment each month is split between a part capital payment plus the balance as interest to the  lender )

At the end of 20 years, because the mortgage is on a Capital & Interest basis, the loan is guaranteed to be repaid.

Now this is where it gets interesting.

Interest payment per month is $ 730 .00 …

Each property has an expected rental return of $600.00 a month.

This equals $1,200 for both properties.

Your mortgage is costing you $ 730.00 a month; therefore you have $ 470 left over each month.. that is fairly easy maths!

Now compare the $ 470.00  a month, with the $ 125 a month you were receiving from the bank… again the maths here is not difficult!

“Risks” that you have to consider.

If one property is empty with no tenant, your rental income is reduced to $ 600 a month, but your loan payment is still $ 730.00.  This means you have a “shortfall” of $130 to find each month from your own resources.

Once you fill your empty property, you will be back in profit.

Obviously, if both properties were empty,  you are faced with a loan payment of $ 730.00 to be paid from your own resources.

The “Plus” points of rental property ownership

• Increase in Value

The property you have bought as your rental property, possibly as part of your expanding rental portfolio will increase in value over the course of time.

This is a fact…. Historically when slumps occur,  prices have always recovered due to the unrelenting demand for property coupled with the decreasing supply of available property.

• Annual Rent Reviews

Each year,  as part of the signed Rental Contract,  you will have an  Annual Rent Reviews clause (See Article  Setting a Fair Rent)  which will allow your rent to maintain its buying power with increases in line with inflation, or what you decide is a Fair Rent.

Make Changes to the Monthly Interest Payment

The monthly interest payment of $ 730 a month on a Capital and Interest mortgage arrangement over a 20 year term could be reduced by a number of methods

1:  Extend the Term

Ask to have the term extended to perhaps 30 years

This would reduce your monthly payments to $ 595.00

The results of this are as follows:

• A surplus of $ 605 a month ( $1,200 – $595) when both properties are filled
• Reduction on the  call on your own resources when 1 or both properties are empty.

2:  Bring down the Mortgage Balance

Whenever possible throw in a lump sum to bring down the mortgage balance .. this may come from other savings you have or a maturing savings / insurance policy.

Wherever the extra capital comes from,  it will certainly open up a number of “bonuses” for you

• Your monthly mortgage payment required will decrease as the capital owed has decreased
• You keep paying the same amount each month to your mortgage,  and as less is required to pay the monthly mortgage payment,  the “extra”  is used as a capital payment  overpayment.
• This has the effect of bringing the capital owed down more quickly,  and therefore reducing the term of the mortgage.

3:  Change the loan from Capital & Interest to Interest only.

Many property entrepreneurs rely on the value of the property increasing over the course of time and are happy to arrange an Interest only mortgage.

The term of the mortgage is irrelevant as it is only interest that you are paying.

When you come to sell the property,  the expectation is that you will have waited long enough, before selling,  to be able to enjoy higher re-sale values, and as a consequence, a healthy surplus between the mortgage loan you are repaying,  and the increased value of the property.

If prices have not increased,  hopefully, you will have the option of waiting until they do rise.

Obviously,  if values are low when you have to sell,  you may make a loss on your investment.

What will the effects be on the $ 110,00 mortgage loan?

By switching to an Interest only mortgage with no monthly payments to reduce the capital, your interest only payment on a loan of $ 110,00 at 5%  interest would change to $ 550.00 a month.

You do not have the loan amount reducing, but you have more “extra” income available each month when both properties are full,  as this works out to be a surplus each month of $650.00.

This also means that if one property is empty you still have sufficient rent from the other property to pay the mortgage payment each month without having to dip into your own resources.

What do you do with the surplus each month?

The surplus each month can be put to any number of uses,  and you can even set aside a portion each month to allow you to accumulate capital,  and after, say, 12 months ( assuming the mortgage company will not penalize you),  you could throw the capital saved,  into the mortgage.

What effect would a capital reduction have?

The effect of a capital reduction on an Interest only mortgage would mean that the Interest payment required is reduced because the capital owed is reduced.

You now have a choice

• You either reduce your payments to cover the new,lower monthly interest rate charge, or, you keep paying the same amount each month to your mortgage.

• As less is required to pay the monthly mortgage payment, the “extra” is used as a capital payment overpayment.

• This has the effect of bringing the capital owed down more quickly.

Always remember to check the small print!

It is important to point out here that mortgage companies set their own criteria for adjusting mortgages, paying back lump sums to a mortgage and changing mortgages from Capital and Interest mortgages to Interest only mortgages.

Be careful when considering adjusting your mortgage with your existing lender,  or moving to a more attractive interest rate with another lender.

Check what, if any, early redemption penalties apply  to your loan.

In addition, always check what fees the lender is going to charge, and always insist on receiving a written quote before proceeding.

Interest Only.. it can be taxing .. in the best possible way!

Depending on which country you have your property and depending on the taxation arrangements,  it is sometimes possible to offset up to  100% of the interest payments as a legitimate expense against tax,  as no capital payments are being made

Worldwide demand for rental property

The rate of home ownership varies from country to country across the world,  and as a consequence the demand for rental property varies from country to country.

I have written a couple of articles which focus on the best places to buy property,  due to high rental demand, “Where is a good place for Real Estate Rental Opportunities?” and “Hurry and Catch a Ride for Rental Property Purchase Areas!”

Future articles are in the pipeline with details on new rental “hotspots” and updates on areas already visited.

The fact that I have access to different areas in the world where rental properties are in huge demand and rental income returns are excellent,  is good news for all types of property entrepreneurswho wish to start, or grow their property rental business on a global scale.

Details

Soon I will be releasing details of areas throughout the world for my readers.

This will assist you in your search for popular rental areas,  and help you  decide if you want to invest in any of those areas with the knowledge available from my (”Men/Women on the Ground”)  correspondents who are already in place and familiar with the local property rental markets they are dealing in.

Watch out for my “Men/Women on the Ground” articles to help you locate attractive property rental areas combined with attractive purchase prices.

I will be releasing details of these areas for my readers in the near future.

What better way is there to find a property bargain than to have your own “Men/ Women on the ground” who are hunting out the best property deals for you?

Be sure that you are ready to read my future “Men / Women on the Ground” articles.

Everybody knows that the biggest problem about a real estate rental business is finding the deposit to put down on the property you want to buy!

I am sure you would be intrigued if I told you I have found a money source which would allow you to have access to millions of dollars .. in cash .. for short sale and foreclosure deals!

In addition, it is also possible to receive an instant pre approval letter.  What that means, is you can get into a short sale deal today! .. not tomorrow,  but today!

Credit details not required

There is no special credit requirement.  All you need is access to this unique source of cash for deposits.

Everybody is aware of the fact that the high number of foreclosures will not last forever… And unless you take action sooner rather that later, you are liable to miss out on a fantastic opportunity for yourself and your business!

At present almost 1 home out of every 4 in the United States is in foreclosure. This applies to both residential homes and commercial homes.  It is tragic for all those families and businesses, but it is also a business opportunity not to be ignored.

Forget about using your own cash!

Using the system described in this article you can forget about having to use any of your own money or credit, and make substantial profits with foreclosures and short sales!

The one ingredient you require is the ability to understand that the biggest opportunity available is not in the residential real estate market, but with commercial properties!

Why invest in Commercial Real Estate?

The main advantage here is the fact that commercial properties have far less competition.  Everyone and their auntie are running about looking for residential foreclosures, while very few, and it really is very few, people are actively working in the commercial foreclosure market!

If you consider the fact that when faced with a choice there really is no choice!  Let me explain!

You have the chance to purchase a single family home with a sitting renter….. this will be one renter paying you rent every month…. Unfortunately, your renter loses his job and suddenly stops paying rent and your rent money dries up! …… you now have to replace that renter …… the longer the home is empty the more you pay out of your own pocket to cover all your finance costs for the single family home… or you lose the home to foreclosure (it’s a vicious circle!)

1 is not as good as 24!

Compare the above to owning a complete 24-unit apartment block. You don’t have one renter .. you have 24 different renters

You do the same amount of work to close escrow on a single family home as you do for a 24 apartment block ( or a commercial office building )

By owning a 24-unit apartment building where one renter loses his job, you will still have 23 renters in place! This means that you will be able to continue to make the mortgage payment on your investment because there are so many other tenants there to cover the costs.

Commercial property types

(A) Commercial-commercial (business use only: office buildings, retail strip malls, medical buildings, industrial/warehouse space, etc.)  Commercial-commercial is a higher risk choice because so many businesses are going bankrupt.

(B) Residential-commercial (apartment buildings, 5 units or more). Residential-commercial (apartment buildings) are HOT because so many people are needing a place to live after they lose their home to foreclosure!

These residential-commercial properties which are producing a great cash flow are going to be sold at way below appraised value…… Take note here.. the rental income does not change,  but the size of loan is smaller than the loan the owner who had to foreclose on … so your cash flow situation is better and more stable.

Add to the above the fact that you are getting property at below appraised value, and as values start to climb again you are liable to make substantial gains on your investment!

This is fact not fantasy!

I can hear your “ Why?”  question here .. “Why on earth would a building owner with a good cashflow have to foreclose?”

There are a number of scenarios that many building owners fall into …. I have listed below 3 of the most common scenarios, any of which would result in the owner having to go to foreclosure..

• Firstly,  perhaps he got an adjustable ARM mortgage and couldn’t refinance his property (because banks have tightened up on lending) so his mortgage payment doubled or tripled, taking him out of positive cash flow.  Now he is losing his building.
• Secondly, he took out a second and third mortgage against his property when the market was HOT and now he cannot pay back the second and third mortgage payments because he is now upside down on his property and even if one or two tenants left, that leaves him in a bad cash flow position.  Now he is losing his building.
• Thirdly,  he has some commercial office space or industrial/warehouse space and lost his tenants because they went bankrupt.  Because his building is empty or less than needed capacity to cover his expenses, he is in a bad cash flow position.  Now he is losing his building

Now you will understand that there are many reasons for foreclosures to happen.

Flipping and Rentals

Given the right strategies with no money down  and no credit required,  anyone can enter this market and make a very substantial profit from either flipping the property or keeping it as a rental.

“Flipping ” means a property that is bought then resold

“Rental” means a property is bought, then hung onto it for a rental income.

Opportunity and good fortune

Windows of opportunity appear only a few times during our lifetimes …  back in the Depression there was a similar real estate wipe-out,  when real estate owners were offered interest-only loans… even then,  many people were unable to afford their mortgage payments and the lenders had to foreclose.

Interest only loans largely disappeared after this.. that was until about 7 years ago .. and we see the pattern repeating itself …. Despite interest only loans being made available, people still cannot afford their mortgage payments….  and once again there is a flood of foreclosures out there!

This is the window of opportunity I mentioned earlier! … and the system reveiwed in this article will allow you to DRAMATICALLY PROFIT from the current foreclosure crisis.

Short Sales and Foreclosures

This system is called the “2 & 2 & 2″ System and deals with Commercial short sales and Foreclosure properties.

It’s so effective that the system has been trademarked, meaning no one else out there is teaching these incredible, powerful, and highly profitable foreclosure real estate secrets!

There are 2 main ways to acquire foreclosures and 2 things you can do with the foreclosures once you get them…and 2 other strategies to cash in even bigger! ( hence the 2&2&2 heading!)

Get these short sale foreclosures…

Method #1: Get a property in the “pre” foreclosure stage before the property owner officially loses their property to the bank.  This is done in the form of a “short sale”…which will be explained in a minute.

Method #2: Acquire a foreclosure directly from the bank.  And, no, we are not talking about auctions either.

Now you’ve got it .. what do you do with it?

• Technique #1: Get your property and KEEP IT to rent it out for monthly passive income and you can later choose to sell the property when the market goes up or cash in with monthly rent profits for years to come.
• Technique #2: Get the property then FLIP IT for instant profits.  (Not recommended in today’s real estate market.)

Consider a bigger profits Strategy

• Strategy #1: Fix up the property before reselling it for BIGGER PROFITS.
• Strategy #2: Purchase multi-unit foreclosures (duplexes, triplexes, and quadraplexes…anything of 4 units or less for residential living purposes) and “convert” them for individual sale. 

The 2&2&2 system has been proven to be highly effective and is a tested and proven system that will streamline the process for huge cash payouts in your pocket.

The system provides you with a simple “blueprint” to follow,  and if you do,  you will enjoy massive payouts from this trademarked system.

How it all works .. with short sales

Short sales are extremely profitable.  You work with the property owner directly but you can negotiate the terms with the bank.

The property owner sells for less than what they owe on their mortgage.

This is extremely popular in this current real estate market, since so many people bought at the peak and now the appraised value is worth much less than what they owe.

The bank allows a third party (you) to come in with a greatly reduced offer price… rather than the bank having to take on another foreclosure (because they don’t want anymore!).

But, this system allows you to offer even lower than the  asking price.

Exceptions are acceptable to banks !

If the property owner is in pre-foreclosure, because of the types of “exceptions” mortgage lenders are starting to accept (because they don’t want another foreclosed property), you can negotiate what’s called a “take-over short-sale”.

This will allow you to legally take over the property with the loan in your name for an amount LESS than what the property owner owes on the home (if the property is worth less than what’s owed on it).

A question asked many times is .. ” Is it hard to do these kinds of negotiations with banks and lending institutions? ”

Not at all.

• Banks are  willing to work with anybody  (no matter how bad your credit and with no money down) because the property is already going to be foreclosed on.
• The bank would rather take a shot with someone who wants to take over the property and who has a plan on renting it out (or reselling it) than losing out on it altogether.
• The bank will do just about anything to not get another foreclosed property in their inventory, because the bank does not want to repossess the property!

Why do banks not like to Repossess a property?

(1) It is very costly for a mortgage company or bank to do a foreclosure.  Legal fees are extremely high..

(2) It takes several months to get someone out of a property, and with commercial properties the bank cannot kick the tenants out.

(3) Many times when people are foreclosed, they wreck the property by taking appliances, lighting fixtures, and causing other damage to the home that the bank has to repair.

(4) All the while the property is sitting vacant, the weather and environmental elements start eating away at the fabric of the property.

(5) Sometimes people break in, causing further damage and theft to the property.  

All the above are a huge drain on the bank’s resources!

Eventually the property goes to an auction.

This where the bank loses even more money, because they usually can’t get even close to what they originally financed the property for!

If they financed a property for $500,000 and the market value is now $400,000 then they’ve already lost $100,000.

Say the property increased in value for a short time and the property owner took out a HELOC or a line of credit for $50,000.  This means the bank is out $150,000 before we even start!

Now add in all the legal fees, the cost of damage and theft from the property, the devaluing of the property from sitting without proper maintenance for a year, two years, or longer.

Finally the bank has to take the property to auction.. just to get rid of it! Perhaps they sell it for $250,000.

This means they have lost $300,000 on this home not including all of the legal fees and fees associated with the auction.

Think of the number of lenders out there!

Multiply the above outline by the thousands of homes held by each bank and lending institution. The amount is colossal, and a huge potential strain and drain on their resources!

You step in with a real alternative to them losing all that money … this is when they become like crocodiles and want to snap your hand off!

There’s more ammunition here!

Banks are reluctant to hold commercial properties because banks are not property letting companies,  and they do not want to manage a bundle of tenants. If they take the property back, by law the bank cannot remove the tenant, instead the bank has to become a rent collector, send out maintenance to mend toilets and to act as a property management company.

So we have even more reasons why banks want to get rid of commercial properties more quickly than single-family residential properties.

The system within the course unveils many strategies!

There are a number of specific, targeted methods used to find pre-foreclosure property owners which are fully covered in the entire course.

Overview to help your understanding

I have written a brief overview to help you understand the process so far!

• You find the property owners ( this method is explained exactly,  and gets people to come to you in droves).
• You then work with them to take over their property (with no cash and no credit) via a “take-over short sale” (which is not the same as a regular short sale) with a simple contract which is legally binding.

Remember you are looking to take over the property at BELOW MARKET VALUE and at MUCH LESS THAN WHAT THEY PAID FOR IT.

Why not get properties at auction?

Everyone and their mother is doing that.  It is not  recommended that you follow the herd,  and go to a foreclosure auctions.  If you do,  you will lose out big time!

Alternatives to Auctions with no cash or credit!

Banks have deals where you can buy in “lots”… you buy 10,50,100,500 or more homes within a lot.

The lots can be picked up for no cash and no credit
Using the “lot” system beats hands down the process of going to an auction with the rest of the “ herd”  who,  quite frankly, end up paying more than they have to on a home.

The auction makes them think they are getting a deal…. when they actually get caught up in the “eBay bidding mentality” and end up paying much more than they should for a property,  unfortunately, and more times than I care to mention,  they find they then have to then carry out tens of thousands of dollars in repairs.

Worried banks are good to work with!

If the banks do not get rid of these properties, they are stopped from lending anymore money on new loans!

Specific government regulations state that each bank and mortgage institution has to have a specific ratio of cash to lend vs. actual mortgages on properties.

When they are holding a certain number of foreclosures in their inventory, it messes up their ratio and they aren’t allowed to lend anymore money until they dump the foreclosures.

The best way they can “dump” the foreclosures is to put them into “lots”

It is possible to pick up property at 10% of market value!

In other words a property valued at £500,000 is bought by you for $ 50,000! …. This is no joke .. it happens all the time!

But there is an even better way !

When foreclosure takes place you are too late, however, if you contact the owner whilst he is in “pre” foreclosure, you can put the system to work…

Here’s an example to help you follow how the system works…..

(a) When a property owner falls behind on his mortgage payments then he is in default with his loan contract with the bank.

(b) After a certain number of months go by, the bank files a Notice of Default with the county of which the property is located.

(c) Once this notice is filed, you can get the name and address of the property owner and you can contact him directly.

(d) At this point maybe 50 other investors will be contacting the property owner as well! … Fear not,  the system outlined in the course has a specially worded letter that is extremely powerful and extremely effective.

The course is extremely effective because it has been tested and proven to work time after time.

In fact it has a response rate as high as 10% … this equates to 10 homeowners out of every 100 letters you send.

In addition to the above,  you get to use a sourcing system which immediately locates these lists of people in default the day after the Notice of Default is filed.

This is so much better than other online sourcing systems that will take weeks or months to get you this information.

First in the queue is a big advantage

You want to be the FIRST ONE to send a letter once the Notice of Default is filed and this system has the sourcing methods to get you these lists the day after the notice is filed.

The system also shows a specific step-by-step strategy for you to use in order to get the property owner to agree to do the deal with you and not with someone else.

It also shows you

• how to negotiate the short sale with the bank,
• how to get the bank to finance you to take over the property,
• how to use NO CASH and NO CREDIT to do the deal.

100% cash

Even better, use the money source within the system,  and get 100% CASH on your short sale property.

Yes, you can even get an INSTANT pre-approval letter from this source …  so you can put an offer on a property today!

If all the above was not enough ,  a simple strategy of holding onto your properties for 3-7 years ( whilst collecting decent rentals ) means that when the market comes back,  and it will,  you can sell some of these properties.

Not only are you making some fast cash NOW,   but you can cash out when the market comes back up and credit becomes more available to fund properties.

So you keep the properties that are providing a huge monthly rental income ( after costs) and for the ones that are not showing large profits on the cashflow,  you flip them when the time is right for instant cash!

The system available to you will give you cash now and long term prospects of being in receipt of large profits later as well.

How is it possible to achieve such large profits ?

(1) You can go  directly to the bank and negotiate a “take over” of the home with NO MONEY DOWN and NO CREDIT.  Most times you do not have to pay the regular acquisition fees including broker/agent commissions… this is  because they are “rolled” the fees into the loan. Plus there is no need to pay closing costs!

(2) The course in this article shows how to access a secret money source who can give up to 100% of the cash needed for your deals.

The interest rate is a little higher than a conventional loan but why worry?  You are getting some of these properties at LESS THAN HALF of appraised value so you can afford a higher interest rate!

Quick cash also available!

There are times when cash will be required to complete a deal.  You may need to pay for an appraisal or help the homeowner move (with cash).

The course contains details of a source that will provide you with an UNSECURED LOAN for up to $25,000…yes, even if you have bad credit!

This source is for those moments when you need a little cash to get the deal going!

Think about it…you can do these deals with NO MONEY of your own!!

After your successful purchase

So, what happens after you get your foreclosures?  After all, it’s almost impossible to sell a property in this market, right?

The secret:  Get the property and HOLD IT for at least 7 years!

Kenny Rogers in The Gambler sang, “You got to know when to hold ‘em, know when to fold ‘em, know when to walk away, know when to run…”

Investing in real estate requires these exact strategies in order to be successful.

Here’s a proven strategy for this current real estate market:

1)  Get foreclosed properties

2)  Hold them for a minimum of 3 years (preferably 5 years)

3)  Rent them out until the market comes back up

4)  Sell them years later at huge profits

Most other “flipping” courses will show you how to buy a foreclosure then quickly resell it.  Yes, you can do that in this market and still make profits.

Do you want to MAXIMISE?

This course shows you how to MAXIMIZE on this opportunity and make the most money possible.

After all, which is better ?

• Buying a foreclosure then flipping it for a quick $15,000 to $25,000 profit NOW

or

• Waiting a few years and flipping it for a delayed $100,000 to $200,000 profit LATER?

Don’t get me wrong:  If flipping is your goal and you want quick money over and over again then you can do it even in this crappy market.  Is it recommended?  No.  Not at all.  Not in this market!

We know that rather than settling for a few thousand dollars in profits on a property,  you can make so much more if you follow the massive cash flow blueprint?

The blueprint will show you when to cash in on your rental property, and achieve the maximum financial potential.

Don’t worry; you can still access the true foreclosure flipping secrets if you want to quickly flip every property you buy.  The course does illustrate how you can use the most successful flipping strategy available, and allow you to make the most money possible on each deal.

Why Real Estate Investing is still the best cash flow business!

Right now the rental market is booming because all the people who lost their homes need a place to live!  They may have been unable to afford their super skyrocketed mortgage rate that tripled with their adjustable ARM mortgage but they can afford a rental at a fixed price.

Everybody will always need a place to live no matter the economy.

Prices for real estate will ALWAYS GO UP regardless of the state of the market right now.

Imagine if you purchase 10 properties today and hang onto them for 10 years!  Can you imagine how much your net worth would be in a decade?  You could be a MILLIONAIRE just with 10 properties!  And getting 10 properties can be done in just a matter of weeks!

Now is the time to do this because in 5 years or 10 years prices of real estate will have risen,  and if history is anything to go by,  they will probably doubled!

Here’s how to start cashing in NOW!

The course described in this article was created with a proven step-by-step Commercial Short Sale Cash Flow System.

The information in this proven system is very valuable.

In addition, due to the difficulty in obtaining funding in today’s real estate market, the added benefit of getting access to the contact information for the secret funding source makes the entire package worth its weight in gold!!

You won’t be left out!

You can enjoy the immediate benefits of this incredible, power-packed course for a mere $97!

What does the course give you?

FORECLOSURE MANUAL

How to really take advantage of the foreclosure market (which is HUGE right now) and how you can make money flipping them or buying and renting them out.  There is a SECRET that NOBODY ELSE is talking about.  Use this secret to CASH IN BIG TIME!

QUICK-START MANUAL

A complete outline of the manual with step-by-step instructions to show you how to start profiting immediately.

BONUS REPORT

This power-packed report can show you more secret strategies you can use to help you quadruple your profit potential with a strategy that no one else teaches.

RESOURCE DIRECTORY

This lender list includes the SECRET MONEY SOURCE to get UNLIMITED short sale/foreclosure deals with NO CASH from you.  Also, discover  secret listings of hard money lenders.  This directory also includes  secret sources to get you an unsecured loan of up to $25,000 with bad credit!

REAL ESTATE FORMS CD-ROM

Includes all of the contracts and forms you’ll ever need for all of your real estate deals.  You’ll get a physical copy of the forms and a CD-ROM of the forms.  This alone is worth $300!

SUCCESS ORGANIZER

This is a ready-made template for all of your forms so you simply print them out and start using them instantly.

AUDIO SEMINAR

This step-by-step audio seminar will show you exactly what to do in order to make money in foreclosures from what to do on Day 1  ..   to closing your first deal  .   to renting out your property  ..   to selling it.

SOFTWARE

This software will help you ANALYZE the cash flow potential of your real estate deals!

UNLIMITED EMAIL CONSULTING

With the author PERSONALLY for 60 days!

That’s right! You’ll have access to her PERSONAL email address to ask any question you want about your short sale foreclosure investing strategies! Now, how many “gurus” offer that?

Your exclusive access to this entire course described above is a mere $97.00!

A price like this is practically nothing compared to the time and effort you would have to put in to re-invent the wheel and make it work for you on your own.

Immediate benefit can be yours!

You can immediately benefit from the experience and knowledge of the author and enjoy the profits of success!

The course has limited availability at the special price on offer… It takes about 5 minutes to download ( depending on internet speed ) … You need to have the following

• Adobe Acrobat Reader ( available free at www.adobe.com)
• Microsoft Word
• WinZip to view the real estate forms included in the course
• Windows media Player (available free at www.microsft.com)

This trademarked real estate system provides you with information that you will not find in ANY other real estate “system.”  And you even have a guarantee of knowing that this system has more “insider” information and secrets than most other investors have access to.

The techniques and strategies that are taught are cutting-edge, so confidentiality is required with regard to the foreclosure secrets, systems and techniques contained within the course.

If you do purchase the course you have to promise to agree to the following:

• You can’t sell this system or resell it.
• You can’t tell your friends, family, co-workers, or associates about it.
• You can’t write a book about.
• You can’t even tell your real estate agent about it.Remember this information and system is for YOUR EYES ONLY.

As a matter of course, a 60-DAY MONEY-BACK GUARANTEE is offered….. so, if you decide this isn’t for you then ask for a no-questions-asked refund.

You have 60 days to review the material.  If it’s not for you then you can get a refund of 100% of what you paid.  That means this offer is RISK FREE.

I feel that you have nothing to lose and everything to gain!

Purchase Price .. Down Payment .. Loan Interest Rate .. Repaying the Mortgage Loan .. Other Regular Costs .. Final Thoughts

(A) Purchase Price …… is this set at current market values?

Check similar properties in the locality, check if it has been empty for a long time, and if it has been on the market for a long time … the longer it has been empty the more keen the seller will be to make a sale …. And as a consequence there is a better chance of a lower offer being accepted for a “quick” sale.

(B) Down Payment ( Deposit payment )

Depending on what capital you have available will determine how much cash you can put down on your rental property.
It is assumed that the difference between the deposit and purchase price is going to be met by a mortgage.

This next bit is important to understand:

The lower your deposit, the higher the “ risk” that the lender is taking on board with your purchase.
As a consequence the higher the “risk” from the lender’s point of view means the higher their interest rate will be along with higher fees and, more than likely, some kind of long term redemption penalties.

Wherever possible put down a good Deposit to keep the Loan to Value ( LTV ) ratio below 70%. This will give you access to better rates and conditions in the mortgage package.

(C) Loan Interest Rate.

As already mentioned, the higher the LTV ratio, the higher the Lender’s risk will be.
This “exposure” to risk means they are going to charge you for the risk they are taking, and therefore the higher the Interest rate will be.

(D) Repaying the Mortgage Loan

There are two ways to approach this area

(1) Take out an interest only loan with the intention of either paying the loan back from other capital sources, or selling the property in the future to repay the loan.

At this point you are hoping that the sale price handsomely exceeds your purchase price, and therefore provides you with a good profit (Capital Gain).

Historically, property prices do increase over time. This includes taking into account violent downturns in the property market like at present.

Prices do recover, and hopefully, you can hold onto your property until you find yourself in a period where property prices are on the increase, allowing you to achieve a good return on your initial capital investment.

It is not rocket science here, but I feel it is important to point out that were prices to fall during your ownership of your rental property, you may find that when you sell your rental property, you cannot repay all the outstanding mortgage from the sale proceeds and a “shortfall” occurs.

You will therefore have to find the “shortfall” payment from other capital sources.

(2) The second way to pay the interest is to set up a Repayment mortgage Loan which means that each month your payment is split into two payments, with the first payment being used to pay Interest on the outstanding loan, and with the second payment being used as a part capital payment.

The major difference with the second method of repaying your mortgage is that the second method guarantees to repay the mortgage loan on your rental property by the end of the mortgage term.

The shorter the term of the loan, the higher your monthly payments will be.

Conversely, the longer the term, the less your mortgage payments will be.

It is up to you to decide what is affordable each month, and to ensure that the lender is prepared to accept the fact that you want a Repayment mortgage over a set number of years.

(E) Other regular costs

As part of your budgeting exercise, you have to consider other regular costs which you are going to have to allow for:

Property Insurance, Public liability Insurance ( normally part of the property insurance), costs for maintaining your rental property,

(F) Final Thoughts

When you are working out all your income figures, bear in mind the fact that your rental property may not be full for 12 months per year, and therefore you have to allow for the fact that it may be empty for a number of months, whilst you seek a new tenant.
This factor makes the level of rent you will be asking for the rental property an important factor.

………………………………………………………….

You have now had access to the first two articles in this mini series of 3 articles :

Your Cashflow (article 1)

Calculating your Budget (article 2) .

The third and final article will look at  how to Find your Rental Property

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