Getting the right source of money!

The biggest catch in real estate investment is finance. While many are enticed by the glitter of investing in Dallas investment homes, they do not always have the finance to realize their investment dreams.

I was one of those non-cash-rich-investors. Some of my acquaintances had their bank accounts brimming with profits made from real estate investments before the fall in 08. I had always  wanted to follow their winning strategy. However, lack of finance kept me back. Then, my friend told me that there was a way.

On his advice, I decided to go ahead with my investment dreams under the guidance of an expert real estate wholesaler.  I chose to hire New Western Acquisitions as my mentor and guide.

After our first meeting there has never been a doubt in my mind as to who I would trust with my financial success. Our first meeting, their knowledgeable representative first discussed my investment goals and financial limitations. He took the time to fully understand what I wanted to accomplish in a specific time frame and what my financial capabilities were at that moment.   We shook hands and he went to work finding a suitable property I could start with and turn a profit in a reasonable amount of time.

Then it was time to arrange for the finance to purchase the property. Foreclosure properties are sold on a cash-on-sale basis. I lost hope,   I knew I did not have the available cash  finance. My agent set up an appointment with a private money lender.   I got a loan for the purchase price as well as the repair estimates. The amount of money I was required to put down was very little. I was able to purchase a property, and flip it within 3 months.  I repaid my loan out of the profits and had enough left over to invest in 2 more properties.   I now have 9 rentals in my portfolio.  And I intend to acquire more.

Thanks to New Western Acquisitions for their excellent services all through!

When the Hammer Strikes...

Have you ever bought a property at an auction? Did you know that you can get a great deal at an auction?

Here are some basics about purchasing real estate at the courthouse steps.

A property is foreclosed when the owner fails to pay his mortgage installments or has unpaid tax obligations to the Government. A property is foreclosed when the owner fails to clear his tax liability for three consecutive years.

Once the property is foreclosed, it is auctioned in a bid to recover the lender’s unpaid loans.

The minimum bid is often the amount due to the lender.

Typically, the property to be auctioned is occupied by the owner. Therefore, as an investor you may not be able to view the property before the auction. Properties are auctioned when the owner is unable to pay his dues. Thus, you cannot expect a well-maintained property. It may be in a distressed condition. It goes to reason that if they can not pay their taxes they most likely cannot pay for repairs and upkeep of the home. While some of them require cosmetic repairs, others may require extensive repairs. A smart idea is to conduct research about the property to understand the true condition and the magnitude of repairs required. Also, conduct a research on the neighborhood and the prevailing prices for similar properties. You can also ask the auctioneer to arrange for a viewing of the property. Do so with a professional, who can evaluate the repairs cost.

Avoid falling for the bidding game. You might bid higher than the others to acquire a promising property. However, it is a better to assess the value of the property and set a limit before going to the auction. It is better to stick to a limit on your spending.

Purchasing Dallas investment property at an auction is definitely a good option. However, learn the tricks of the trade before bidding at one.