Category: Business Finance

Most likely, when you’re first starting out as a new real estate investor you have very little money. I know I did. You probably have just enough money to do some marketing (such as direct mail or bandit signs) but there isn’t much to spare.

Well… if you’re new and short on funds, then there are certain types of deals you’ll want to do and certain types you’ll definitely want to avoid. For example, I highly recommend that all new investors start out wholesaling. This is the least risky type of deal to do and you get incredible leverage.

What I mean by leverage, is that you’re putting down a $10 deposit (never put more) and you end up making $5,000 to $10,000 when you assign your contract to a buyer. Turning $10 into $5,000 sounds pretty good to me. And like I said, this is the least risky method because if for some reason you can’t find a buyer to assign your contract to, then all you lose is $10.

As you can see, this is perfect for the new investor with little cash to spare.

More importantly, once you’ve done your first wholesale deal you can fund your marketing activities with a percentage of the money you make from the deals you do. In other words, you don’t have to pay for marketing expenses out of pocket anymore, you just take a portion of all the deals you do. bad credit loans with guaranteed approval are very vital for the things that are very vital for the things. bad credit loans with guaranteed approval is not that much difficult for the people to get the full access. 

After wholesaling, the next best methods for beginners are either lease options or subject-to’s. Both of these methods require zero money down (if you know how to do them right) and you can walk into instant cash flow of several hundred dollars a month. The only risk with these methods is if you sell the houses on a lease option you could have vacancies. That’s why you’ll want to thoroughly screen your rent-to-own tenants to try and eliminate this problem as much as possible.

Now let’s get to the method I would never do…

If you’re a new investor I would avoid rehabs like the plague. I’ve known many new investors who were hell bent on doing a rehab for their first deal and almost always it turns out bad. First, with a rehab you have to put way too much money down. You have to pay the closing costs, insurance and the 5 points on a hard money loan.

Also, ask any rehabber, and they’ll tell you that no rehab is done without “surprises” popping up. You may think you’re doing a $30,000 rehab and before you know it, it turns into a $50,000 rehab.

Simply put, there is just way too much risk in rehabs for the novice investor. Once you become experienced, then go ahead and do one. But starting out, you want to make things as easy as possible. Especially because you want your first experience as a real estate investor to be positive, that way you’ll enjoy this business and want to keep doing it for years to come.

One of the most popular options for credit cards is known as the zero percent balance transfer credit card, one that offers tremendous benefit. For starters, if you have a current balance on another credit card but the interest rate is high, a significant amount of the money you pay each month is not reducing the balance but going toward the interest. As you can imagine, this means a lot of your hard-earned money is being wasted.

The investment of money with the correct and the right Credit Repair Companies is essential for the people. There is no less interest available at the amount to get the desired results. A pleasant experience is available to the individuals.

An example of how serious a problem this is, consider that if you had a credit card at 18% APR and the balance was $1,000, if you only paid the minimum payment of $25 each month, it would take almost 13 years for the entire balance to be paid in full! For a $1,000 balance using this scenario, you would pay more than $1,115 just in interest without the original principle balance being touched.

On the other hand, if you were to secure a zero percent balance transfer credit card that had a grace period of six to twelve months, you could transfer the entire $1,000 balance and during that timeframe, pay off the balance completely. In addition to eliminating the debt, you just saved yourself all the money that you would have otherwise paid on interest. Obviously, this provides you the chance to get out of debt but also improve your FICO credit score.

Although each zero percent balance transfer credit card is slightly different, on average the introductory period in which no interest applies is three to twelve months. The goal is to find a card that offers the longest introductory period but also one that keeps the interest rate low once this period is over. Additionally, you want a zero percent balance transfer credit card that would offer other benefits such as shopping rewards, cash back bonuses, and more.

Unfortunately, some people overlook the introductory period simply because they failed to read the details. Therefore, before accepting a zero percent balance transfer credit card, you need to know the associated terms. Finally, you would be in the driver’s seat regarding your debt and the way in which your money is spent. After all, you probably have other things you would rather spend $1,115 on than interest for a credit card debt. Today, finding a 0% APR transfer card is easier than you might think but to find the best, it would be worthwhile to conduct research.