Epic Real Estate Investing

Creative Real Estate Financing and Acquisition 101

Matt — Mon, 14 May 2012 21:31:55 +0000

Creative real estate financing consists of just about any method of financing the purchase of real estate of which doesn’t involve a traditional bank or an “all cash” transaction. The more credit and money you have to invest, the less creative you’ll have to be in building your real estate portfolio.

Nonetheless, even the investor with the most pristine credit score will hit a limit to qualifying for bank financing, and using “all cash” to build your portfolio isn’t typically the wisest use of your cash if another option is available, but in the end… it all depends.

In any event, it’s in the best interest of your “return on investment” (ROI) to arm yourself with some creative real estate financing and acquisition education. I cover 12 different creative strategies in a detailed step-by-step format in the EpicProAcademy, but let’s begin with some basic creative real estate investing education.

So, we’ll begin by assuming that you want to invest in real estate with little to no money. However, you should not restrict yourself to any one strategy in any one situation. There are many variables constantly at play in real estate investing as every situation is unique, as well is every Seller. The list below is to be used merely as a reference tool to assist you in your thinking through possible solutions to Seller’s needs.

Creative Real Estate Financing and Acquisition Strategy #1
Equity Sharing

A/K/A: Joint Venture, Partnership, Membership, Syndication, Shareholding, among other terms.
Often Appropriate When: You have friends, family or organizations with capital available for investing in real estate and they don’t particularly want to dirty their hands with rehabbing or leasing.
When to Avoid: Avoid Equity Sharing with the Seller when dealing with the Seller’s personal residence. If you must share equity with the Seller in this situation, word it in your agreement as deferred interest as opposed to equity.

Creative Real Estate Financing and Acquisition Strategy #2
Option

Often Appropriate When: You may not want to take title to the property to avoid liability. For example, the market has fallen and you anticipate it to come back in the near future. Maybe you anticipate a zoning change or change in use. Perhaps there’s good value in the property but negative legal issues attached to it. Or, maybe you anticipate some environmental issues with the property.
When to Avoid: Avoid spending a large amount of money for the option premium since it’s almost always non-refundable.

Creative Real Estate Financing and Acquisition Strategy #3
Option with a Lease

A/K/A: Lease Option, Rent-to-Own
Often Appropriate When: Seller is motivated to act quickly. Seller wants to maintain the tax advantages that accompany the property. Seller wants to keep the property in his/her asset column.
When to Avoid: Avoid combining the Option and Lease into one Agreement. Avoid leasing back to the original “owner occupant” Seller.

Creative Real Estate Financing and Acquisition Strategy #4
Subject-To

A/K/A: Buying Subject to Existing Financing, among other terms.
Often Appropriate When: Seller must sell fast. Seller trusts you (and you are worthy of that trust). You have too many mortgage loans and you can get another. Seller has difficulty selling traditionally. Seller is in arrears on mortgage payments. Property is in disrepair. Property is “investment” property.
When to Avoid: Avoid selling or leasing back to the “owner occupant” Seller. Avoid this if there is a balloon payment or an interest rate adjustment coming soon. Avoid if the existing mortgage puts you, the Buyer, in an upside down cash flow or equity situation. Avoid if the lender strongly objects.

Creative Real Estate Financing and Acquisition Strategy #5
Agreement for Deed

A/K/A: Land Contract, Contract for Deed, Buying on Contract, Installment Sale, Seller Financed, among other terms.
Often Appropriate When: Seller is concerned about “due on sale” clause. Seller wants a specific market value price and will concede to below market interest. Seller is selling “investment” property. Seller is stable.
When to Avoid: Avoid if the Seller is in extreme financial trouble (i.e. facing bankruptcy or divorce).

Creative Real Estate Financing and Acquisition Strategy #6
Seller Carry-Back Mortgage

A/K/A: Private Mortgage, Seller Financed, Seller Carry Back Trust Deed, among other terms.
Often Appropriate When: Seller wants a specific market value price and will concede to below market interest. Seller has no better investment options and likes the idea of a fixed rate of return over a long period of time.
When to Avoid: Avoid unless the Seller provides a title insurance policy clearing all items to which you, the buyer, object.

Creative Real Estate Financing and Acquisition Strategy #7
Wrap Around Mortgage

A/K/A: Wrap, All Inclusive Wrap Around Mortgage, All Inclusive Wrap Around Trust Deed, AITD, Seller Carry-Back Wrap, among other terms.
Often Appropriate When: Seller has much equity and a low balance existing loan compared with the property value. The interest rate on the Seller’s loan is low. The existing loan has a lot of seasoning (the loan is many years old). Seller has no better investment options and likes the idea of a fixed rate of return over time.
When to Avoid: Avoid this if there is a balloon payment or an interest rate adjustment coming soon.

Creative Real Estate Financing and Acquisition Strategy #8
IRA Investing

A/K/A: Self-Directed Retirement Account Investing, HSA Investing, Self-Directed 401K Investing, among other terms.
Often Appropriate When: Seller will discount the price deeply for cash. Property needs a lot of repairs. Property has potentially great cashflow. Seller is willing to do any of the above strategies non-recourse.
When to Avoid: Avoid anything high risk or that will cash flow negatively.

Creative Real Estate Financing and Acquisition Strategy #9
Private Money Loan

A/K/A: Private Money, Hard Money Loan, Private Mortgage, Private Trust Deed, among other terms.
Often Appropriate When: Seller will discount the price deeply for cash. Property needs a lot of repairs. You have friends, family or organizations with capital available for investing in real estate and they don’t particularly want to dirty their hands with rehabbing or leasing.
When to Avoid: Avoid hard money situations wherein the entire profit margin goes to the Lender.

Above are 9 basic creative real estate financing and acquisition strategies. There are more, but anything else is essentially a variation of the strategies above. Contrary to popular belief, when it comes to investing in real estate, it’s not going to be your credit score or bank account balance that presents your biggest obstacle, it will be your creativity.

Click here to download these 9 strategies for future quick reference.

Creative Real Estate Financing and Acquisition 101 is a post from: Epic Real Estate Investing

How to Become a Millionaire

Matt — Thu, 10 May 2012 03:00:40 +0000

According to author Kenneth Fisher’s book, there are ten roads of how to become a millionaire. Or, more specifically per the title of his book, there are Ten Roads to Riches. After reading his book and learning how the wealthy got there, I left with an assured feeling of what I’m doing with my real estate investing is the right thing. Not only was investing in real estate one of those roads to riches, it was clearly the easiest road. So, if you’re wondering how to become a millionaire… investing in real estate provides the best odds.

To become a millionaire in real estate investing, there are four stages one must progress through. The first stage is to adopt the “thinking” of a millionaire real estate investor. Perhaps this idea lands for you as a timeless truth or arm-chair rhetoric.

All I’ve got to say is, ignore it at your own risk. Your “thoughts” are everything in how to become a millionaire.

You see… the population can be divided into two groups. You have those that use money, and you have those that of which money uses them. Millionaire real estate investors “think” of money as a resource or a tool to accomplish their goals. They use money.

The other group, well… they give all types of different meaning to money that causes disruption in their lives of which ultimately thwarts their pursuits. Money uses them.

You must have the thoughts of a millionaire real estate investor if you ever expect to become one.

Once you’re thinking like a millionaire real estate investor, it is now time for the second stage of “acquiring” a million dollars of real estate. Contrary to popular belief, this is not the giant hurdle many believe this to be as most millionaire real estate investors reach this mark far before they ever expected that they would.

Acquiring a million dollars of real estate is more about learning the right strategy for you than it is about having enough money to complete your transactions.

After you’ve acquired a million dollars of real estate, you’ll begin to create a million dollar equity position. This is the third stage, “own” a million dollars of real estate.

Owning a million dollars of equity is far different than being on title to real estate valued at a million dollars. It’s during this stage that most realize that they have a real estate business.

This is the stage of which you’ll discover how to become a millionaire, and it will be through management, selling, trading up and exchanging until a million dollars of equity has been created.

The final stage that you’ll move through is the “receiving” of a million dollars a year from your real estate. This is the peak, the place where those that focused on the prize and endured the first three stages land. This is how to become a millionaire, the type of millionaire that can remove themselves from the day-to-day work of their business and enjoy what they created.

Learning how to become a millionaire is like learning anything else.

There was a time when you didn’t know how to tie your shoe, when you didn’t know how to ride a bike and when you didn’t know how to drive a car. I’m going to jump out on a limb here and assume you now know how to do all three of those things without giving them a second thought.

How to become a millionaire investing in real estate is just like that!

Stick to the road that has been traveled by every millionaire real estate investor before you… 1) “Think” a million, 2) “Acquire” a million, 3) “Own” a million and 4) “Receive” a million, and millionaire status will be yours, too.

How to Become a Millionaire is a post from: Epic Real Estate Investing

Seller Financing and Lease Option – Real Estate Investing Case Study

Matt — Sun, 08 Apr 2012 04:44:45 +0000

A proper real estate investing education is critical to an investor’s success, and perhaps the greatest learning comes from implementing that education in the real world. Real life application of that real estate investing education provides a certain type of education that no classroom could ever match. Secondarily, learning from others’ experiences can accelerate one’s learning like nothing else. It has been said, “Learn from others mistakes’ (and I would add others’ successes, as well) as we won’t be here long enough to make them all on our own.” In the spirit of increasing the financial literacy of the world, we’d like to think we’re doing our part by beginning a new series today… The Epic Files! Enjoy.

Seller Financing and Lease Option – Real Estate Investing Case Study is a post from: Epic Real Estate Investing

A Quick Tip for Real Estate Investors

Matt — Sat, 07 Apr 2012 04:12:33 +0000

From a recent survey, when 100 millionaire real estate investors were asked “Where do most of your deals come from?” 86% percent of their total deals came from just four sources!

7% came from foreclosure listings
9% came from advertising
10% came from walking and driving neighborhoods
60% came from their networks!

And just what that conveys is, real estate is truly a people business. Not only is every piece of real estate you acquire or sell will definitely be to or from another person, 70% of your deals will be referred to you by another person.

This is indeed a people business.

I know that could be a “no-brainer” to you. Everyone knows that this is a people business, right? Then again, maybe everyone doesn’t. If we did know that, perhaps there would be more effort and investments made in developing one’s people skills “for this people business” as opposed to the constant and never-ending pursuit of the easiest way to do this business. That darn silver bullet! “It gets me every time!”

In this post, I’ve actually got a silver bullet for you. Real estate investing CAN be easy.

If you didn’t know already, you’ll want to know that people do business, in this particular people business, with people that they like, trust and have confidence in their competence. That being the fact, and if 70% of the most successful real estate investors’ deals come from other people, almost certainly the most pressing issue and burning question within your business should be…

“How do I get more people to like me, trust me and have confidence in my competence?”

Watch the video below to learn of three practices you can implement in your business immediately that will cause a greater number of people to like you, trust you and have confidence in your competence. Operate in this fashion and people will WANT to do business with you. People WILL refer deals to you.

If you liked this video, and you happen to have a fraction of a second to spare… would you mind clicking one of the little social media icons at the top or bottom of this page to share this information. Much appreciated:-)

A Quick Tip for Real Estate Investors is a post from: Epic Real Estate Investing

Matt Theriault on Real Estate Radio – KTLK AM 1150

Matt — Fri, 23 Mar 2012 17:51:53 +0000

Last weekend Matt Theriault had the pleasure of being a guest on Toni Patillo’s real estate radio show Call Toni Real Estate Radio on L.A.’s KTLK AM 1150 to discuss flipping houses in a down market.

Download the entire show by clicking here.

Special thanks to Jeff Coga and Jonathon for the video work. If you like Jonathon’s work, you can reach him at foulproductions@yahoo.com or 213-858-2062

Matt Theriault on Real Estate Radio – KTLK AM 1150 is a post from: Epic Real Estate Investing

Financial Freedom – How to Finally Get It!

Matt — Thu, 15 Mar 2012 16:18:02 +0000

Have you been working at this “financial freedom” thing for a while? Want to know how to finally get it? I’d be happy to share it with you, but you might not like the answer. If you are ready to leave behind failing ideologies and shift your thinking, you’ve got a chance. Ready? Let’s get started on the true path to financial freedom.

If you want something you don’t have, you’ll have to do something different than what you’ve been doing. So let’s start there. Insanity defined is doing the same thing over and over expecting a different result. The road to financial freedom you’ve likely been traveling (unknowingly) has been all wrong, but not just wrong… insane.

You will not experience financial freedom anytime in the foreseeable future by work, work, work, save, save, save. Traditional investment vehicles such as IRAs, 401ks, annuities… they pay you nothing. The entire investment philosophy around these investment vehicles is based on “someday.” Someday you’ll get to enjoy the fruits of your labor. Hopefully, you’ll be young enough to actually enjoy it. This is called “accumulation” thinking or a “someday” mindset. This mindset is a trap. It certainly isn’t a “financial freedom” mindset.

Watch this excerpt from the Epic Pro Academy on how to get financial freedom.

The key to financial freedom is to shift your “accumulation” mindset for a “cashflow” mindset. Your goal, as appealing as it may sound, should not be security. Your goal should be independence and freedom. Freedom does not exist in a life of which time is exchanged for dollars. Contrary to popular belief, independence and freedom doesn’t even come from eliminating your debt. Financial freedom comes from passive income, or in the world of real estate investing… it comes from cashflow.

The sooner you ditch the accumulation mindset, the better. Rather than waking up every day to go to work for your money, start focusing on creating a system that works for your money for you. Rental real estate is such a system. You don’t have to build your entire portfolio tomorrow, but you should get started. It begins with just one property. After you get the one, rinse and repeat. Use the cashflow from that property and put it into the next one. Then you’ll have two, and so on.

Financial freedom does not come with flipping properties, it comes with holding them. Focus on getting your first (or next) rental property in the next six months. Get another in the following six, and another in the following six. Leverage those three to get two more in the following six. Keep reinvesting your cashflowing assets into more cashflowing assets. Continue this pattern, and financial freedom will be yours SIGNIFICANTLY faster than it ever would have been following the traditional ideas of which most of us have been raised.

So, the answer to how to finally get financial freedom is to shift your thinking from one of “accumulation” to one of “cashflow,” and then take action on your new thoughts. As the ol’ En Vogue song goes… “Free Your Mind and the Rest Will Follow.”

Financial Freedom – How to Finally Get It! is a post from: Epic Real Estate Investing

Financial Freedom through Investing in Real Estate

Matt — Sun, 26 Feb 2012 15:50:55 +0000

Achieving financial freedom through investing in real estate is much more than an idea to dream about while on your lunch break at your 9 to 5 job. This dream can easily become a reality setting you up for an early retirement. But there is a catch! To move this idea from the dream state to a tangible reality, you must first wipe traditional ideas of money and wealth from your thought process. If you continue to follow what we have been told is the traditional path to prosperity, you will end up in a dead end trap.

Financial freedom has nothing to do with being trapped in a cycle of working for money, accumulating that money, and hoping that one day that money provides security. You may think that stockpiling your hard-earned cash in a 401k, IRA, stocks or annuities will one day give you the freedom to enjoy your life and not worry about finances. Recent history has shown that this does not work. Investing in real estate, however, is another story.

To achieve financial freedom, you need to consider real estate investing. Why is investing in real estate the correct path towards achieving freedom financially? First, you can start now with little risk and little to no money while keeping your full-time job. Second, rental real estate can provide you with a source of passive income each and every month slowly freeing you from the grasp of your 9 to 5 job. Third, you can leverage the equity in your properties to purchase more rental units or to fund other businesses that provide automatic, residual income.

Waiting and hoping to reach a mythological destination known as “some day” is no way to live your life. Unfortunately, that is the way the majority of people do live their lives. They feel trapped, desperate and longing for that day that they can taste financial freedom. Using sound principles and taking action today investing in real estate allows you to taste that freedom sooner rather than later. It puts your money to work for you instead of you working for your money.

Financial Freedom through Investing in Real Estate is a post from: Epic Real Estate Investing

How to Invest ‘Subject To’ and Overcome the “Due on Sale” Clause

Matt — Sat, 25 Feb 2012 22:06:34 +0000

Since opening up the EpicProAcademy, the majority of questions have revolved around “how to invest ‘subject to,” and specifically how to overcome the “due on sale” clause. Investing ‘subject to’ is when a motivated seller signs over the deed to you while you continue to make payments on their existing financing. You have taken ownership of the property subject to the existing financing. You, the buyer, own the property while the seller still owns the liability of the loan.

How to invest ‘subject to’ is actually a very simple strategy, but like every strategy it’s not going to be a good fit for every situation. Whether it’s seller financing, lease options, private money, hard money, whatever it may be… ‘subject’ to is just another tool in the toolbox of which enables you to use someone else’s money to transact your real esate. Typically, your ideal situation for ‘subject to’ investing is just about any situation where a quick takeover of the property is in order to solve the challenge at hand.

Ok, so why would a seller agree to such an arrangement? Remember, at the center of every real deal is the seller’s motivation to sell. First, you do need a motivated seller for this strategy to be applicable. When you do find the right situation and takeover a motivated seller’s payments, the seller benefits by getting peace of mind and preservation of their credit score. Should the seller raise a concern around whether you’ll follow through and actually make the payments, you can explain that the risk of losing your money in the deal and the equity in the property is enough to keep you from missing payments.
The answer to the question “how to invest ‘subject to” is not a complicated one. As long as you are clear with regard to what “subject to” is, it’s not as difficult to execute as it may seem. If you know how to explain it to the seller, and what steps to take to protect you and the seller, you can use the ‘subject to’ strategy over and over with minimal risk.

As great as this strategy can be in your real estate investing, however, there are some things of which to be aware. There are precautions you should take to protect both you and the seller.

First, make sure that the seller knows everything that you know about how to invest ‘subject to.’ Full disclosure with the seller will keep you out of a lot of potential trouble. The last thing you want is to find yourself in court with the seller accusing you of stealing their home. The investor almost never wins this argument unless you’ve covered EVERY base, and even then there could be some risk. Just be straight with people, make sure everyone involved gets what they were promised and you should be okay.

Second, don’t take over a property just because the owner agreed to give it to you. It can be very exciting, especially if it’s the first time for you, when a seller signs over the deed to you. Nonetheless, it still has to be a good deal. It still must be a property that meets your criteria and moves you toward your goals meeting your minimum deal standards.

Third, and this is the biggest one! It’s one of the most feared and misunderstood, yet most fascinating, subjects in real estate investing. The dreaded “due on sale” clause. As simple as a subject to transaction can be, it’s this specific clause found in most loan documents today that stops most investors dead in their tracks from moving forward on a ‘subject to’ deal. It’s the primary reason people are searching for answers of “how to invest ‘subject to.” Once you understand the “due on sale” clause’s history, purpose and how to work with it, you’ll find that there’s really nothing to fear but fear itself.

The “due on sale” clause, also referred to as an “acceleration” clause, is an authority clause in a loan document that gives the lender the right to call the loan due. Many people think the “due on sale” clause applies only when title of the property is transferred away from the borrower’s name, not true. Most “due on sale” clauses paint with a very broad stroke and just about any modification to title, interest or possession can trigger the clause. Even with this broad spectrum of rights, lenders rarely exercise this right because it’s typically not in their best interest to do so.

Then if it’s not in their best interest, why is the clause there?

Lenders began including “due on sale” clauses in their loans back in the ’70‘s during a time where interest rates rapidly increasing. Instead of taking out new loans… regular Tom, Dick and Mary “home buyer” were assuming the existing loans on homes because the interest rates of those loans were so much lower than new loans.

Lenders then started to insert the “due on sale” clause to protect themselves from themselves citing that they needed this clause to protect their collateral by staying abreast of who was actually living in the properties. B.S.! Lenders only wanted to generate new loans at the higher market interest rates. As time passes, the lender’s actions (or lack thereof) prove this to be so. Lenders haven’t regularly enforced “due on sale” clauses since the early ’80’s. Why? Because interest rates have been on a fairly steady decline since then and they’d lose money if they wrote new loans at the lower rates.

By the way, you’re not going to jail for violating the “due on sale” clause. Did you hear that Realtors??? It’s not illegal. In order for something to be “illegal,” there must be a violation of an actual law. There is no federal or state law stating it’s a crime to violate the “due on sale” clause. The worst thing that could happen to you is that the lender exercises their rights under the due-on-sale clause and takes the property back, and even then… they can’t do it inside of 30 days (hint!, hint! for the wholesalers reading this), and even after the 30 days if the property is occupied, the lender will have to abide by normal foreclosure proceedings of which should be enough time for most fix and flippers to execute their strategy (hint! hint! for the fix and flippers reading this).

So, what about the long term investors? Are you willing to takeover a property ‘subject to’ with the risk of the lender busting you? If you’re willing to take the “risk,” you have two real viable options on how to approach it. You can either sneak in the back door, or you can go in the front door screamin‘ “Honey, I’m home!”

Let’s discuss the back door first! It’s ye’ ol’ trust assignment trick.

You see, there’s a loophole that many investors like to exploit. The Reagan Administration back in 1982 enacted the Garn-St. Germain Depository Institutions Act of which was intended to revitalize the housing industry by ensuring the availability of home loans. Within the act there was a significant consumer benefit included that allowed anyone to place real estate in their own trust without triggering the “due on sale” clause. Primarily for estate planning reasons, real estate investors recognized an ancillary opportunity using a land trust.

A land trust is an agreement of which one party (the trustee) holds ownership of a piece of real estate (real property) for the benefit of another party (the beneficiary). The real estate investor opportunity being that the transfer of real estate using a land trust is EXEMPT per the Garn-St. Germain Act. Get it? I’ll break it down to you in three simple steps.

So, imagine you come across a great deal. You have successfully found a property that meets your criteria and a seller that will meet your terms; And your terms being you want the property subject to the existing financing. Good to go!

STEP 1: Your motivated seller signs a land trust naming you as the trustee. The seller is the beneficiary. Following me?

STEP 2: Your motivated seller transfers title to YOU, the trustee (Thank you Garn-St Germain Act). As per this action, there is no violation of the “due on sale” clause. The transfer to a trust is exempt. Excited yet?!

STEP 3: The motivated seller now assigns their interest in the trust to you. This assignment isn’t recorded, meaning that there’s no public record of it. The motivated seller then moves out and goes on about their business, and YOU or your tenant move in! Ta dah!

You are now the beneficiary of the trust, the beneficiary of the trust that owns the property. Now, the trustee (also you) makes the existing loan payments and you live happily ever after, right?!  Well, it’s not that cut and dry. You MUST know that when the motivated seller assigned to you their interest in the trust that that indeed triggered the “due on sale” clause, but who’s going to tell the lender?

Typically, there are only three real ways of which the lender will get wise to the transfer. I explain those three ways in this video.

So, that’s how to invest ‘subject to’ sneaking in the back door. Let’s try the front door now.

Imagine the same scenario with our motivated seller in our previous example. As soon as you get an agreement from the seller allowing you to takeover the property subject to the existing financing, turn the entire file over to a third party servicing company and let them do the rest. Let them do everything. Let them communicate with the seller. Let them communicate with the lender. Completely remove yourself from all parts of that conversation. And here’s why…

It’s similar to how when attorneys talk to other attorneys. They speak the same language. They respect each other’s position. They just pass paperwork back and forth like it’s an every day thing… because it is. And when note servicing companies are speaking to other note servicing companies, it’s just like that. It’s just passing paperwork back and forth.

Once the note servicing companies have completed their duties, all there is to do is make the payments. Actually, in both scenarios you want to make the payments. Do NOT miss a payment. You put in all that work, got a smokin‘ deal, and you stand to make a great profit. Don’t mess it up by missing or being late with a payment. Don’t give the lender any reason to call you. That’s one of your strongest lines of defense against the “due on sale” clause, and here’s why…

In today’s market with the amount of foreclosures, pre-foreclosures, short sales and loan mods, do you think the lender would have the man power or even the interest to police their accounts that are in good standing??? No way!

Okay, so that’s how to invest ‘subject to.’ All fine and dandy, right? But what about ethics?

Glad you asked.

If it were unethical or fraudulent, then why would so many different states in their standard state Realtor Association purchase agreements and paperwork include ‘subject to’ as a financing option on the contract? CA has it, Utah has it, and New York has it to name a few.

Further, the state bar associations of Alaska, Illinois, and Virginia (among other states) in case after case have had no problem with lawyers aiding their clients in concealing these types of property transfers using the land trust example I just gave you.

So, if it is not illegal, unethical or fraudulent for an attorney or broker to sneak in the back door… it isn’t for you, either.

The most you’ve got to lose is the time you’ve invested and the money you put in the deal, of which brings me to best practices when investing subject to.

It’s an ideal strategy for short term investing such as wholesaling and fixing and flipping. Go for it! Now, if your subject to investment is going to be a long term hold type play, I would recommend not investing any more in the deal than you’re willing to lose. And here’s why…

If you give a motivated seller $50,000 down to takeover his property subject to the existing financing and two years down the road the interest rates make a big jump up, it’s very possible that lenders might start investigating their lower interest loans. It’s not likely, but it is possible. And in the event that they do, they could accelerate the loan and take the property back of which you’d have to say goodbye to your $50,000.

So, if it’s a short term strategy, go for it! If it’s a long-term strategy, just be careful of how much you put in the deal upfront.

Hopefully, I’ve been able to clear the air a bit and dispel some myths around how to invest ‘subject to’ and overcome the “due on sale” clause. It’s an awesome strategy to have in your tool belt, but it does you no good unless you actually use it. I’m assuming you are now armed with enough information about ‘subject to’ and the “due on sale” clause that you can make an educated decision for yourself whether this is a strategy for you, or not.

If I’ve left you with some questions, share them with me in the comment section below. Also, if you found this information valuable… please do me a favor and click the FB “like” button below or lend me a tweet

To your success…

How to Invest ‘Subject To’ and Overcome the “Due on Sale” Clause is a post from: Epic Real Estate Investing

How to Find Real Deals in 4 Simple Steps

Matt — Sun, 12 Feb 2012 20:47:32 +0000

The most common question asked of me is “How do you find your deals?” That question is on the tip of the tongue of every person I meet contemplating how to become a real estate investor. It’s understandable because without deals, “real deals” specifically, one’s investment plan can be executed nor can one’s goals be accomplished. To be successful in real estate investing, you need to know how to find deals or your real estate investing journey will be short-lived.

A real deal is defined as a property that meets YOUR criteria and a seller that will meet YOUR terms. Typically, finding the properties that meet your criteria is the easy part. However, find property owners willing to sell to you on your terms is a bit more challenging. The entire process of successfully finding real deals isn’t easy, but it isn’t complicated either. As there are a wide array of finding properties that will meet your criteria, there is only one way to find property owners that will sell to you on your terms. Enjoy the video!

How to Find Real Deals in 4 Simple Steps is a post from: Epic Real Estate Investing

Real Estate Investing Lead Generation’s 5 Commandments

Matt — Thu, 02 Feb 2012 05:38:13 +0000

Lead generation is the foundation of any successful business, and real estate investing is no different. Without leads… there are no customers, and without customers… there is no business. Generating the leads, however, is only half the battle. Sorting those leads is the next step in the process. Successful real estate investing comes down to knowing the difference between “opportunity” and “trouble,” and then taking action on the opportunity. Follow these 5 Lead Generation Commandments and knowing the difference will be a snap! The “taking action” part is up to you.

Real Estate Investing Lead Generation’s 5 Commandments is a post from: Epic Real Estate Investing