With current 5 year CD rates at 2.94%, and dropping, one of the things we’ve been doing is replacing a lot of our private lenders that are at 10, 12 and 15% interest rates with MUCH lower rates. Just think about how much money you, as the real estate investor and holder of the property, could save if you replaced all your 12% money with let’s just say 7%. That’s a 5% savings each year and on just a $100k home that is a $5,000 savings. So, how exactly do you go about it?

Begin Setting the Stage
When you send your private lenders their monthly or quarterly statements put in a little blurb about their current rate and compare it to other rates. (you can get current rates on various websites). This keeps your lenders updated and shows them what a great deal they are getting from you. Reinforcing the great decision they made to invest with you. (more…)

Over the past decade, I have met hundreds of real estate investors with the majority having limited success as investors. Very successful real estate investors are a clear minority. I have observed that the most successful investors share five characteristics that are the foundation of their success.

Written Plan

All successful investors have a written plan that they constantly work and use for daily goal planning. The difference in people’s abilities is directly affected by the goals they set. A study of the Yale class of 1953 found that three percent had written down financial goals for their futures at their college graduation. When the group reconvened in 1973, this three percent of the class that had started their careers with some kind of plan controlled more combined net worth than the other 97 percent combined. (more…)

OK, I admit, I live in the “foreclosure capital” of the world!

Not only Florida, but here in the Cape Coral, Fort Myers, Florida area. The “ground zero” of the splattered bubble.

While the median resale home price in this area has been sawed in half in the past year, according to industry data, real estate professionals say they’re seeing a sales boom that may hoist the market from the “quagmire of real estate sludge.” Well of course, you rocket scientists… If I offer to sell you my classic automobile for almost nothing, you’d buy it too! (more…)

After investing in tax delinquent properties for more than 5 years, I have come across all sorts of situations. If you don’t have the experience that will help you make the right decision you may end up with a big problem on your hands. Below are just some of the biggest mistakes you can make and how to avoid them.

1. Give Up Too Quickly. You just read about Christa’s $10k house. What you don’t know was that this was not the first time she bid at the auction. About a month before this purchase, Christa lost bids on about 3 properties. She also had to overcome some obstacles involving the use of her self-directed IRA to buy at the courthouse. I worked with Christa over the phone for a couple of weeks after she bought my Tax Deed Home Study course so I knew exactly what she was experiencing and I advised her on what to do. (more…)