What is leverage and re-leveraging?
Leverage is the ability to buy a property using other people's money - OPM. This allows your returns to be magnified. You put 10% down, and the property goes up 10% in value - you make 100%. No other investment vehicle allows you to leverage yourself this way and magnify your gains. Leverage also allows you to buy more properties than you otherwise would be able to with cash only purchases.
Most people miss the opportunity to releverage their properties....
5647 Tryon Rd
4 Bed, 5 Bath
5,367 sq ft; 12,530 sq ft lot
This unique castle-like home just hit the market as a foreclosed property. Located in the prestigious Los Feliz neighborhood of the "The Oaks", this majestic home was formerly owned by none other than Hollywood A-Lister Nicolas Cage. He owned this property before it then switched hands to a different owner and ultimately got foreclosed on by the bank. Rumor has it that many of the home's distinctive details and features haven't...
Where is your retirement money? How do you feel about its potential performance over the next 20-40 years? Allow me to make the case for a residential real estate retirement plan. You can buy two condos, one house, or a duplex right now, for around $500,000. With a reasonable down payment, which you may be able to get from your current retirement plan, you could arrange for the properties to be cash flow positive or break even depending on area and property quality. In 30 years, the properties...
Westchester REO 4-Plex
Low density Westchester 4-Plex on a 56.5x124 street to alley R3 lot. 2,975 sq ft, two 2+1, two 1+1. Laundry hookups in each unit, separate meters, 4 carports, LA retrofitted. Asking price $459,900.
Projected Rental Scenario
Purchase Price: $459,900
Down Payment: $137,970
Loan Amount: $321,930
Monthly Expenses
Loan Payment: $1,679
Taxes (Est.): $479
Insurance: $80
Maintenance/Misc...
Just when it looked as if mortgage rates couldn't fall any further, they did.
Rates on 30-year fixed-rate mortgages (excluding jumbos) hit an average of 4.3% in September, the lowest level since 1953, according to Freddie Mac, and are still hovering below 4.5%.
Fifteen-year rates are even more mouthwatering: 3.8%. Mind you, those are averages. The most creditworthy borrowers can do even better, snagging rates perhaps a quarter of a percentage point lower.
So what's in this for you? A lot,...
It looks like the record-low mortgage rates we've enjoyed since summer are going to continue right on through the winter.
The average cost of a 30-year, fixed-rate mortgage -- the most popular type of home loan was just 4.46% in our latest survey of major lenders taken Nov. 10.
That's very close to the record low for these types of loans -- 4.62% set just last week. (By record low we mean it's the lowest average cost since Interest.com and its print predecessors began the survey in 1985.)
Interest...
Following are some of the basic questions I am often asked about loans. While a lender is always the best resource to answer all of your detailed questions about loans, and your specific situation, here are some basics to get you started.
1. What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a simple process. The buyer is asked specific questions about their income, assets and liabilities. Based on this information, they are provided with an amount...
