Overwhelmed And Out Of Money – How To Steer Clear Of Foreclosure On Your Home
As 2009 enters its fourth quarter, many people are asking «Should I buy a house now or wait?» The National Association of Realtors is running advertising right now asking the question, «Why are you sitting on the fence?» For the cynical out there, you may think that this is a shameless way for the Real Estate industry to drum up business. After a few lean years real estate agents are hungry for a sale, you may think. But still you ask, should I buy a house now or wait?
The Rehabber will generally net more than a wholesaler, but look back at all of the risk and time associated with doing a rehab. The average, depending upon your location is between $25,000.00 to $40,000.00. and at times even more. But most wholesale deals are going to net you anywhere between $10,000.00 and $20,000.00. As you get better at negotiating, you’ll be getting properties under contract for less and less, allowing you to sell the contract for more and more.
A sure strategy for preserving your capital is never be greedy. Greed moves you to gamble with your investment in things you don’t understand just because other people are making ‘killing’ profits. The crash may just be at the corner immediately you join the band wagon.
First, it allows you to have an investment. You will own your property and use it as an asset instead of put your money into rent, which often seems wasteful. It is important to own something as collateral if you ever need to go to the bank to secure a loan. By putting your money into visit instead of a bank account you will make more in a shorter period of time. The amount a bank will pay you in interest is often less than what you can acquire in a real estate investment.
Fifth, is something that I coined real estate in Africa my book thirty years ago. It is called equity discount. If you buy a property for $200,000 and immediate re-sell the property for $250,000 you have made $50,000. That difference is called equity discount. Keep in mind that equity discount can be a negative number as well if you are buying a property for more than it is worth. Why would you do that? Trust me, sometimes that are good strategies to do that.
According to the Kentucky Public Service Commission natural gas prices will rise by about 7% for this winter. This will affect roughly 44% of Kentucky homes, according to the commission.
The final aspect is the expected returns which should compensate you for the first 2 components. These expected returns must pay you back your entry costs quickly and compensate you much more than a day job. The reason for that is you are taking on risk by taking on a business proposition and you will need to make sure you are compensated for this risk on top of your hourly expected earnings.
For most families, furniture is something to be used in living. This means it suffers wear and tear. Hey, that’s life! When it is time to sell, however, that wear and tear can hurt your curb appeal. You need to objectively evaluate whether your have a furniture problem. If you do, you can obviously go out and buy new pieces. Since this tends to be expensive, another option is to rent furniture if you only need a few pieces. You can do this at furniture rental stores and the cost is a lot less than buying.
Several other scams will be explored in thjs series of articles including employment, inheritance, investment, pet lottery and prize scams. Have you heard from the son of the King who was killed in a coup and left money in a secret location which you can help to get out of the country yet?