Your Questions About Real Estate Investing Tips

Mark asks…

With regards to becoming an real estate investor. Is it more difficult to get financed for rentals?

My husband and I want to start investing in rental properties. We have excellent credit, excellent combined income and have cash in the bank. My question is, will we require more money down, expect a higher interest rate and find it more difficult to get approved for a loan for rental properties? I have a friend that suggested not telling the lenders that we were purchasing a single family home or a duplex for renters and to say that it was for our primary residence. What are the repercussions for saying that? Isn’t this illegal? I am a big believer in karma and do not want to do anything that is outright illegal. If someone can give me some tips or advice, I’d greatly appreciate it. It is hard to tell who is telling the truth or who just wants to sell their BS real estate plans on tape for a low payment of $89.99 a month! Thanks for your time!

John answers:

Because, as you say, you have excellent credit,combined income, and cash in the bank, you are already in an advantageous situation. Therefore, the effect of a little stricter lending rules should be minimal for you. And if you are setting the stage for a successful long term investment plan, or at any other case, you do not need to hide any facts. What would affect your continued success is what you buy, where you buy, at what price, and how well you manage and maintain your properties. And as far as financing goes, keep up the good work with your credit score and personal finances so that the lenders would be pleased to lend you money. Should you need more guidance, my e-mail is available or you can contact me via:

Robert asks…

Getting started in Real estate investing?

I have decided that I am going to start a real estate investment LLC. As far as finding my first deal..any tips on Hard Money lending? Do they provide you with the all of the money to purchase the property in return for a percentage of the profit made? Or does it depend?

John answers:

You have nothing to invest and you want to start investing?

You have a screw lose.

Hard money does not give a damn about your profit. You get their money, you pay HIGH interest and you pay it all back within 1-2 years or they take everything you own now and will own in the future.

There is no possible way you will not lose your shirt with this lovely plan.

You need to come up with another, one that involves your own capital.

Paul asks…

How do I get started in real estate investing 2 generate income (either passive monthly or quick buy+sell)?

I have a pretty decent amount of extra cash available and I want to start investing in real estate to generate passive (rental) income or quick turnaround profit, but I have no idea where to start.The current market seems like it would be a great one to jump into due to very low prices. I read Robert Kiyosaki’s Rich Dad Poor Dad recently. I definitely want to start making my money work for me and not the other way around. He makes it seem so easy to buy and sell properties, especially during a down market, with putting up very little money. I have done some web searching and it seems that there are a ton of real estate investing strategies out there. Any advice, tips, strategies, help, knowledge, recommended reading, etc. would be greatly appreciated. Thanks.

John answers:

Well, don’t believe everything you hear.
Why is Robert Kiyosaki selling you books on how to get rich in real estate instead of investing himself? Because selling books to vulnerable people is more lucrative than investing in real estate.
Think about it!

Steven asks…

Help need advise… I am starting a Real estate company “by myself” I have some money to invest to promote..?

to promote myself and my services… and I AM also thinking of doing some vending business.. I’m 19 a student but also thinking to do alot and have the drive… any helps/tips/suggestions? For me to grow big in the present and future… ( I am seperated and yet not legally divorced theres a reason to it…. ) but any tips please? thanks! 🙂

John answers:

If you are a 19 year old student you are not starting a real estate firm. You have to be an agent before you can be a broker.

My tip/suggestion would be to actually research a job before you think about doing it.

Maria asks…

Investments in Gold?

Is investing in gold a sound investment these dayscompared with the stock market? How about real estate?

Any other good investing tips

John answers:

Id agree that the stock market, and the property market (bar continental Europe) is heading for a crash, not a time to buy these markets at present.

Gold has had a good run for a long time (check Merryl Lynch Gold & general’s fund performence – HOWEVER, GOOD PERFORMENCE USUALLY MEANS NOTHING, BECAUSE IT SAYS NOTHING ABOUT THE FUTURE!), and this is mainly due to Indias rise as a prominent power – more indians are getting wealthier, and more gold is needed.

In the west when we aquire wealth we buy cars, houses. SOme will buy fine wine, cigars, cocaine, holiday apartments, designer labels etc. Indians buy gold. And India is getting much more wealthy.

Another tip I would give is any sort of natural resources. Gas, Oil, base metals etc. These are usually more robust stocks in a bear market, and any sort of major correction in the market sees these flourish (check JPM morgans Natural resources fund)

Be aware that if Gold has a good run (ie high growth in value), it wont rise as fast as a stock market investment, which generally can give the best rate of return anywhere. However, if you time it wrong, you will lose just as fast, perhaps even faster in the stock market, and now is not the time to buy the stock market.

I would say, buy gold, natural resourses – also corporate bonds (debt dont know what you call it in the states), gilts (in the US these are called Treasury notes i think) just to make your portfolio a little safer. Cash is looking good, as inflationary pressure is raising interest rates.

After the stock/property (real estate) markets crash, more your money out of these and buy at the bottom of the market!

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