Financing Archives

Using Leverage in Real Estate by Avoiding Risks: Building Wealth

April 14, 2019 by Marco Santarelli

leverage in real estate Archimedes made the comment, “Give me a lever long enough and a fulcrum strong enough, and I can move the world.”

“Leverage real estate to buy more properties. Invest in real estate with leverage.” You’ve probably heard the phrase many times. Yet it is difficult to get a clear answer as to what it means. All the while, you’ll be told that learning how to do this requires paying for their book or seminar. We’re going to break the mold and tell you what leverage is before explaining how to leverage real estate to build wealth. Leverage is a method that allows you to control properties with little cash.

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Current Housing Trends That Will Change The Market In 2019 And 2020

November 13, 2018 by Marco Santarelli

Housing Trends And Predictions For 2019 and 2020

Is 2019 a good time to buy a home, sell a home, move up, or invest in real estate — or will you be better off parking your money elsewhere, whether that means buying a house in a different location or an investment in an entirely different industry? While no one knows exactly what will happen with home prices in 2019, if you have the right sources and know where to look, there is enough evidence to make a sound educated guess. Where will we see softening housing trends first, and which cities are still showing healthy growth? We examined all 381 metropolitan statistical areas (MSAs) in the US for local affordability (and change in affordability), housing market price growth, and the pace of housing market price growth to pinpoint where the housing market is slowing down.

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Buying an Investment Property Under the New Tax Plan

November 7, 2018 by Marco Santarelli

Given the new proposed United States tax plan from the Trump administration, investing in real estate has some potential implications for a new investor. Most consider the changes extremely beneficial to first-time real estate investors in particular.

To cover the basics first, the existing tax structure allows for real estate investors to write-off all the expenses of owning and running a rental as those properties are considered a business operation. In addition, any interest on the mortgages for these investments along with any repair or management costs can be deducted pre-tax on the total income of the property so that the property owner is only taxed on the actual cash flow they’re earning from the investment.

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3 Things To Keep Your Earnest Money Deposit Safe

October 19, 2018 by Marco Santarelli

Once your offer finally gets accepted, one of the first things you’ll do is submit an escrow deposit. This money — your “good faith” deposit — helps show the seller that you’re serious about buying the home.

If the home closes successfully, that money is applied to your down-payment. However, if the deal falls through, there is a chance that you could lose out on thousands of dollars.

With that in mind, many buyers want to know what they can do to help keep their earnest deposit safe. Here are 3 foolproof ways to protect your escrow deposit. If you follow this advice, you can rest easy knowing that your hard-earned money will stay where it belongs.

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What Are The Different Types of Mortgage Loans For Real Estate Investment?

September 5, 2018 by Marco Santarelli

Types of Mortgage Loans

When you start searching for mortgage options, you will probably find out that there are different types of mortgage loans to choose from. With so many types of mortgage loans, you may most likely don't know where to begin. You know you need to pick the best mortgage rate, however, you ought to comprehend this doesn't really mean going for the mortgage with lowest rate. This is because there are some other variables to consider which can influence your decision.

There are some mortgage options which should know about financing investment properties. Let us discuss the 4 most popular types of mortgages in real estate. The motivation behind this article is to educate you on different types of real estate investment loans that you can use in your real estate investing.