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Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn’t help but wonder why people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?

Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.

One of the most popular late night infomercial shows tells beginners that it’s possible to make a fortune by buying houses with no money down and then renting them out to cover the monthly payments. It’s true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.

Rentals don’t normally qualify for no money down financing. Institutional lenders aren’t supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.

Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a lender asks where your down payment will be coming from, saying, “the seller” is not the right answer! Today’s sellers are also fairly savvy, and understand that with no money invested in a property, a buyer could easily walk away and leave them with a home that’s been ruined by careless tenants.

Another TV program offers a bogus system for buying houses at ridiculous prices, but think about it: has anyone bought a home, free and clear, for $345.00 at a tax sale recently? Hordes of investors flock to the tax sales in the area where I live, bidding up the prices of foreclosure properties far beyond a few cents on the dollar. It just doesn’t happen.

Today, another real estate investment scam is popular in Southern California. Here’s how it works: a young person we’ll call Charles charged $4,000 on his credit card to hire a real estate “mentor,” after the mentor wined and dined him at a fancy Beverly Hills restaurant.

In exchange for the fee, the mentor instructed Charles to find distressed houses by driving around the area and writing down the addresses of ugly houses in nice neighborhoods. Once Charles had given him the addresses, the mentor obtained the owner’s address and sometimes a phone number. Then it was up to Charles to call the owners and talk them into selling their houses for no money down, and carrying the paper, too!

I met Charles when he called me about buying a property that my husband and I had on the market for $1.2 million. When I asked him how such a young man was going to make the payments on $1.2 million home, he told me that he planned to rent the house out for enough to make the payments.

As a real estate investor myself, I tried not to laugh at his naivete, and after talking to Charles and listening to his frustration about trying so hard to follow his mentor’s advice, I offered to help him find a property, and I’m happy to say that Charles now owns his own home. But he’ll still have to spend years paying off a $4,000 credit card bill.

If you want to make money as a real estate investor, a good first step is to buy your own home, like Charles did. You can do that for no money down if you have good credit, or for a relatively little amount of money down if your credit is poor. Once you’ve purchased your own home, fix it up and then either sell it or refinance it and use your profits as the down payment on an investment property.

Don’t pay hundreds of dollars for out-dated methods that may have worked in the middle of last century! They’re a waste of your time and money. Real estate investing is truly a great way to make a fortune, but you must stick to tried-and-true proven strategies, ones that work in today’s real estate market.

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm

I can’t emphasize enough how important it is to have a step by step guide for sellers and tenant buyers. However, many of you are missing out on other income streams that these step by step guides can generate. In fact, they can become a business in and of themselves.

We all know that during the course of our telephone calling to sellers, that sometimes the numbers just don’t work. Those are the times you go for the consultation. While a telephone consultation is great, the seller wants some concrete information to guide them. Something they can have after they hang up with you. Taking notes during your telephone consultation is not something a seller is going to do. So what is going to happen is that seller is going to keep calling you. And while some “guru’s” insist you can keep charging them for each question they ask. Let me tell you, fat chance of that happening. In fact, I can almost assure you of the seller calling their credit card company to complain about the charge. So rather than run into these problems, have a contract that is signed, and provide a solid consultation package to your seller. Which means, have written material they can refer back to. Have a step by step guide which covers all the seller needs to do to move their property.

So, our first way to generate income from our seller’s manual is as part of our consultation package. The second way is if the sellers says to you, “I don’t want to do a consultation, I’d rather do it myself.” Then you would give the seller the option of purchasing your step by step guide. We price our consultations based on the house price, and what kind of follow up the seller would like. We offer 30,60 or 90 day follow-up. We also sell our guides in print ($49.95) and electronic format ($19.95) for those sellers who want to do it themselves. These are the price points that work best for us. You can however, set your own price points. We know of some individuals who are getting $99 in their region for each of these manuals.

Another way to generate income, and a way to increase exposure of your seller’s guide to using the lease purchase advantage, is to place small classified ads in Pennsysavers and other small papers in your local and surrounding areas.

Another way to generate income is to provide seminars and/or classes to sellers in your area regarding the advantages of lease purchasing their property rather than selling, and sell your step by step guide as part of the seminar. Or you could offer free seminars/classes and use your guides as back of the room sales.

Last but not least is to advertise on the web. Put up a special web site for your guide, advertise in ezines, put up classified ads. The web works 24 hours a day, seven days a week. Put it to work for you.

In regards to tenant buyers, and generating income with your guide, when you get calls on your property, be sure you are screening your tenant buyers to get a current address and telephone number. This way you can send out a follow-up letter telling them about your consultation services, which includes your step by step guide. Also mention that they can also purchase the guide and do it themselves. If they find after purchasing it, they still need help that you will credit the purchase to your consultation price. You now have two different ways to generate income. Again, we offer the guide in print ($49.95) and electronic ($19.95) format. But as mentioned previously, you should set your own price points. You might be able to sell them for more in your area.

Another way to generate income from your tenant buyer guide is to do up a number of different classified ads emphasizing the bad credit, bankruptcy, buy your dream home advantages of lease purchasing. Like the classified ads for sellers place them in Pennysavers or small local papers.

Another way to generate income from your tenant buyer guide is to place door hangers on every apartment in a particular complex. Or put up a flyer with all the advantages, with pull offs with your name and telephone number, and put them up by the mail boxes in all the apartment complexes in your area.

I can think of one lady in the Florida area who purchased our reprint rights and this is all she does. She is making an excellent living just selling manuals to tenant buyers and sellers by putting up flyers and advertising in the local papers.

Another way to generate income is to provide free seminars and/or classes to buyers and use the guide to generate back of the room sales. Or you can charge for the seminars (classes) and include the guide as part of the class.

Again, don’t forget the web for your tenant buyer guides. Run classified ads, advertise in ezines. Put up your own website. Put the web to work for you.

You can make a business just out of selling how to guides to sellers and buyers. So don’t limit yourself. See how many different ways you can come up with in addition to the ones listed above.

You can find information on our reprint rights package at:http://www.homebusinesssolutions.com/products/reprints.htm

Copyright 2002 DeFiore Enterprises

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our “how to” Home Business Solutions Digest, it’s like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com

Avoiding high fees when home refinancing with bad credit is as
important as finding low rates. With fees adding up to thousands of dollars,
make sure that you are getting the best deal by comparing lenders. Also
look at other types of credit to securing cash out financing.

Ask About Closing Costs And Fees

To save yourself money, research lenders before settling on a refi
loan. Request loan quotes that include information on closing costs and
fees. The APR will include the interest rate, closing costs, and any
annual fees. But be sure to also ask about early payment or any other fees.

Be aware of fees or closing costs that are included as part of the
principle. These are often labeled as “zero down” loans, but in reality you
are paying for those fees throughout the loan.

With loan quotes, know that even the fees are negotiable. You can ask
for them to be removed or eliminated. Some fees, such as the early
payment fee, are only removed if you pay an additional amount at closing.

Select Low Fee Terms

While you are researching financing companies, also take a look at how
they structure their loans. Often the lowest rates, such as interest
only or balloon payment loans, have the highest fees.

Select terms that are more favorable for low fees, such as fixed or
adjustable rates. Adjustable rates are usually the lowest costing loans
with some risk of increasing future rates.

Other Ways To Cash Out Your Equity

If you are simply refinancing to cash out part of your equity, consider
applying for different types of credit to save on fees. Second
mortgages and lines of credit have much lower closing costs than refinancing
your total mortgage. They can also be held for a shorter period, which
also saves you money.

While low fees may be your goal, be open to better financing options.
By comparing the APR, you may find that average fees can yield better
rates that will save you money. The longer you keep your loan, the more
important low rates will be.

View our recommended
Bad Credit Mortgage Refinance lenders or view all of our Recommended Refinance Lenders.

This is where most developers end up. Once executed, this can prove to be money for old rope. Ok thats a bit pushing the point, but here i can teach you some really useful tips on how to let with very little fuss. The essetial element is to first consider the previous chapters as just as important as the monthly cheque you receive from your tennants. In effect the two are very much releated. So re-read those chapters before you get to this exciting chapter on how to but to let.

My 10 Steps to success
Ok i’m going to make this very easy by revealing my 10 steps. Follow this and you will succeed, ignore a step and you may struggle. Here goes…

1. Find the right area to buy into and make some appointments with local letting agents normally estate agents will be able to offer help with letting too .

2. Once you’ve picked their brains to assess the state of the lettings market (and discovered what type of properties are most in demand) you can begin the house hunting game. Get several viewings under your belt to get a feel of the market.

3. Talk to mortgage providers early on in the game to ensure that you find the best deal. If you have a personal financial advisor, they will do this service free of charge, use this free service, it may save you money and time along with our useful free development guide on this site.

4. Once you’ve found a suitable property put in an offer and be patient. What you might think is a silly offer may prove to be a bargain, remember you can always increase your offer.

5. When your offer on the property is accepted you’ll need to get a licensed conveyor or a solicitor to deal with the legal and financial paperwork.

6. This is the step that can seem to go on forever, the survey and searches.You will also need to get it valued. Then you’ll be in a position to finalise your mortgage arrangements with your finance lender.

7. Who will property manage ? Once you’ve been handed the keys you’ll need to decide whether you are happy to manage the property yourself or if you want to hand it over to a letting agent.

8. The chances are that the house will need some work doing on it, so it’s best to get the workmen in there as soon as possible. You will find our buying to let profit calculator useful at this point.

9. If you’re planning to let the property furnished it makes long-term sense to invest in solid/ robust furniture (ideally carboot sales house clearances or local auctions are an ideal way of sourcing good solid furniture without putting costs through the roof).

10. Before your tenants take control of the property, do make sure that they are clear on the terms of your contract to avoid any later possible complications.

Rental Property Management
www.rentalpropertymanagement.co.uk
The Authority on Buying to let property in the UK
Your free property development guide

If you’re a city dweller who is looking for a home in the suburbs, it’s likely that you’re looking at homes with septic for the first time. This situation tends to make buyers nervous. It needn’t.

Let’s take an overview of what a simple septic system is, how it’s maintained, and what you can do if you’re buying a home that uses one. A septic system is a self-contained system for disposing of sewerage. They’re frequently found in rural and suburban areas that do not have public sewerage systems. The system one sees most often is a holding tank in which enzyme and bacterial action decomposes the waste material and buried lines in a drainage field use soil to strain out what remains.

Septic permits are usually issued specifying the number of bedrooms a house may have that is to be built on the lot for which the permit is being issued. How well the soil percolates (how well water drains through the soil) on the lot is taken into account when issuing the permit. It typically costs between $6,000 and $10,000 to install a conventional system in the part of the country I live in. Systems are usually adequate for the size of the house because of the permit system.

When a system and the demands of a household are in balance, it can be literally years between times any maintenance is needed. Some jurisdictions require that they be pumped periodically. There are companies which make a specialty of this. In my area it costs about $200 to have a septic tank pumped.

Home Buyer Precautions

There are a number of things a homebuyer can do when buying a home with a septic system to minimize the possibility of having a problem. You can make your contract offer subject to a septic inspection and pumping. You can ask the seller to sign an affidavit stating that to the best of his knowledge the permit was issued for the number of bedrooms the home has, or, alternatively, you can check at the courthouse yourself. Just call and ask what department handles the permits, then call that department and ask about archived information.

Water should not stand for hours after a heavy rain on property with a septic system. There should never be any unpleasant odor associated with a septic system.

Alternative Systems

What we’ve been talking about is a simple conventional septic tank and drain field. It used to be virtually impossible to install a septic system where the soil does not drain well, or where the water table is high. Clay soils don’t drain well. High water tables are often encountered near the ocean, near marshy areas, and in areas near large bodies of water. Some pretty amazing systems which can handle problem areas have been designed in recent years.

I was recently talking to a builder friend of mine who is building a new home for his own family. The soil on their property drains very poorly. He has done some research and has contracted out having an alternative system installed. He got three bids which ranged from $18,000 to $60,000. After talking to the manufacturer, he accepted the low bid. It looks like the finished job will come in right at $20,000 and the contractor is following the procedure recommended by the manufacturer.

I’ve seen very few re-sales of properties using these super-duper systems-on-steroids, but I predict they’ll start turning up fairly soon. My builder friend says he could build a house on a rock using the best new systems. It sounds like we have some interesting developments to look forward to, doesn’t it?

Raynor James is with www.fsboamerica.org – providing FSBO homes for sale by owner. Visit our “sell my home” page at www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit www.fsboamerica.org/buyer.cfm to see homes for sale by owner.