Naked Lady Real Estate, The Bare Truth About Real Estate Investing

No Money for Investors? What are you going to do about it?

I have been spending a lot of time over the last couple of months in the trenches of  “show me the money.”  Right now, there are no loans for investors with 4 or more houses - period.    I did find a bank that is still doing loans for investors with more than 10 homes… but what was the catch?  The laundry list of items that you needed in order to qualify left me shriveled up in ball in a dark room sucking my thumb - NAKED!  It was funny.  I was so excited and told my whole club that I found a bank!  Then I had  to break the bad news - unless you are God, you will not qualify.  Bummer dude!

So here we are. I have to tell you the truth - unless I know that I can sell a home to an end user and they are going to qualify and be able to get a loan - then no go.   I have money lined up to buy REO’s.  We have the 20-30% down and have the hard money all lined up… but we are still so sketchy to buy these properties!   It’s crazy.  I think we will feel way more secure if we were using only private money - which is our goal.   So this is the plan for us- forget the banks all together.  We don’t need no stinking banks.  We have moved away from using banks whats-so-ever and focusing on private money completely.

To finish reading my article please click here to go to Biggerpockets.com

Land Trusts Made Simple - FINALLY!

I have been waiting for 6 months to learn how simple land trusts.  As some of you may know, I am a great supporter of the NARS Land Trust model and have even had a mastermind group for it for many months.   Well enough of that for now - I am in a new phase in my life... to keep it simple! 

There are so many deals and opportunities out there!  Honesty - I don't know what to grab onto.  But what I do know is that keeping it simple is the most important thing.  Buying houses subject to and keeping the existing loan (if it is a good loan), in place is ideal.   But what about all those REO's?  Sigh.... what to do, what to do...  REO's good.  Not being able to get loans for them - bad.  Sigh... 

 I digress...

What was this post about again?  Oh yea,  Land Trusts made simple!  No matter what properties we are buying we need to hold them in a Land Trusts!  So Now I am bringing The Hughes Brothers in from Illinois to teach us how to do Land Trusts!  Or rather - learning how to do Simple Land Trusts. 

It all starts this week at my real estate club meetings.  If you are in Los Angeles or Orange County - then please do come and network with us!  If you are not - then no worries - we will be video and audio taping it! 

For more information on the meeting please visit our Naked Real Estate Investors Club webiste

Lets Network and have some fun people!

In Deeds We Trust!

Real Estate Trust Deeds are one of the safest investments available because the investment is not only secured by real property: land, homes and buildings, but is further insured by a title insurance company.  

What is a Trust Deed?

A trust deed (sometimes referred to as a Deed of Trust) is a document recorded with a county recorder’s office creating a  secured lien on real property to provide collateral for lenders and trust deed holders.

What is Private Real Estate Lending?

Private Lending, specifically Real Estate Trust Deed Investing, is when regular people like you and me invest our money in Real  Estate Trust Deeds.

Basically, private lending is your opportunity to become the bank and earn a much higher interest rate than a conventional bank pays on a CD or Money Market Account. Not only does it pay higher than stock accounts, it’s an alternative form of investment that frees you from the volatility of the stock market.

The security level of the loan is based on the loan-to-value (LTV) ratio of the property that it is securing. The lower the LTV the greater security the lender has against a drop in real estate values and potential loss.

What kind of interest do people earn as private lenders?

At this time private lender/investors are generally paid anywhere between 8% and 12%  interest per annum for the money that they lend. Payments are disbursed monthly, quarterly or at the end of term. Depending upon the type of project held as security, your return has the potential to yield even more.

The real estate market is down right now, why would I invest in trust deeds?

Most of what you’ve seen on the news is about foreclosures in the residential housing market. Our investors normally hold deeds to income producing properties, such as commercial property and apartment houses. These properties are not as vulnerable to the down turns that are experienced in the residential real estate market.

In addition, the borrowers of your funds are more sophisticated in real estate development and investing, and, therefore, are a better prospect than someone who wants to borrow money to rehab a house they believe to be a “great deal”.

What are other advantages of owning trust deeds?  

1. Trust deeds are liquid and can be sold rather easily to another lender.

2. A lender may borrow against them by using them as security. 

3. Real estate collateral is often viewed as more secure than stocks and equity investments, because its value can never diminish to zero.

4. The private lender isn't responsible for the payment of property taxes, maintenance, gardening, repairs or any other expenses connected   to the property. 

 Think of it as a cost and time effective way to invest in real estate without the tenants, toilets and trash. Private  Lending is a Win/Win for all.