Real Estate Financing
The lending sectors can be broadly divided into two parts, public lending and private lending. Private lenders are basically investors who lend out money for profit. As mentioned above, the recession has left destructed credit reports in its wake and the best option that people can avail in such a scenario, is definitely private loans. In the following article private loans and private lenders for real estate loans have been discussed.
Private Loans and Private Lenders
When we come across the words ‘private lenders for real estate loans’, we are bound to ask the question, what are private loans and lenders. As mentions above public lenders and private lenders are two types of lenders. Public lenders include prominent banks, lending institutions and recognized financial institutions. Private lenders, on the other hand, are people who lend as investment, in order to enjoy the returns of the interest rate or APR. The following are the differences between private loans and public loans:
The qualifying terms and conditions that are levied by public lenders are stricter and it is difficult to get a loan without a very good credit report. Private lenders give loans irrespective of the credit report and history.
Private lenders levy a mammoth rate of interest while, public ones issue a humble and subtle rate of interest.
Public lenders prominently give out only secured loans, in contrast to the loans of private loans that are secured as well as unsecured. Read the rest of this entry »
Real Estate Investor Loans
One thing about real estate that I would like to tell you is that real estate is a market where prices are always on the rise. In the long term, you will see some down falls during some of the months, but in the long run there is always a rise. The logic behind such an uprise is simple, human population is always on the rise. The total volume of land however, always remains the same (ruling out the reclamation from sea which is very small) against the growing population’s need for land. Thus, an increasing demand tends to escalate the price of real estate and any properties. More the population, more is the cost of real estate going to be. Thus real estate investing no doubt proves to be a profitable affair, however, it should be done in a proper manner, as there are certain downfalls in the short run. Real estate investor loans, are commercial loans and is different from a home loan or a mortgage for a house. The loans for real estate investors, operate on the same mechanism as conventional loan, there are however, some differences. If you are asking the question how to invest in real estate, then here’s something that will help you out.
Real Estate Investor Loans
In a real estate investing business plan, the real estate lender basically takes up a loan to purchase a commercial property, with a sole intent to make profit out of it, either by developing it or either into some business venture or by selling it after developing it. The land can be turned into housing projects or even an industrial belt. Basically, the business plan needs to be good so that as a businessman you can get a good loan for real estate financing.
A real estate investor loan, which in some cases is simply referred to as real estate loans is a big loan, that is the amount that is considered to be the principle amount is enormous. Being a commercial loan, the interest amount often tends to depend upon the business firms credit standing and a complex underwriting. But in usual circumstances the real estate investor loan rates tend to be quite high. In some case, the interest rate tends to be an ARM (Adjustable Rate Mortgage), where the rate of interest remains common or fixed for a certain time period and after a stipulated time period it becomes an ARM and varies according to an index (also known as ARM margin) such as the general real estate price levels of the said locality, or some economic index or as per the profits that are being obtained through the real estate investment. In some cases, the lenders also tend to keep the interest low and take off some percentage of profit. The loan is of course secured and is also charged a substantial depreciation while the price is assessed. Read the rest of this entry »
Real Estate Statistics: Why You Need Them and How to Share Them
Posted by este in Agents Realtors, Real Estate on October 12, 2011
Real estate statistics are essential to running a successful real estate practice. It is crucial to take the time to track and analyze the data available so that you might have a leg up in understand the direction of you market. Additionally, you need to be able to present your clients with this information in manageable, bite-sized pieces that they can understand and use.
The Experts Know the Numbers
Being able to answer general real estate statistics questions with actual numbers and hard facts immediately establishes you as a knowledgeable expert and valuable source of information Sharing more precise information about the market that the nightly news makes you the resource your circle of influence needs. And in this day and age of digital interface, being able to put a face and personality to information is unique and an invaluable way to connect.
Everyone Likes to Know the Numbers
Keeping an eye on real estate statistics is a common part of the informed individual and business owner’s routine. Even if they are not buying or selling, the real estate market is such an excellent reflection and indicator of bigger things, this kind of information is highly valuable. Sharing the information in the form of a quarterly report is an excellent, low-pressure way to stay on the radar, remind people you are in real estate, and that you are an informed expert. This is also the kind of interesting information people will share with their own circles, even their friends and family. This provides you with a valuable source of new leads.
Context is King
So you have the numbers and you can quote them verbatim at the next meet-up. But failing to share information within the context of something the layperson can understand defeats the purpose. Being able to answer the “why” regarding a particular set of real estate statistics sets you apart from the hordes of agents spouting out meaningless figures to the masses. Think about what you’re seeing in the marketplace that would affect those values: seasonal trends, changes in financing, economic changes, government incentives and so forth.
Which Numbers To Know
There are hundreds of real estate statistics that you could conceivably memorize and share at the right opportunity. But knowing just a few key stats is all that is required. The top three you should focus on are the average sales price, the median sales price and inventory levels.
Say it With a Picture
Charts and Graphs are the best way to explain and present real estate statistics to non-realtors. A simple graph can really drive home the dramatic ups and downs in the market trends, far better than your words can. If you keep track of just a few market stats every month in a spreadsheet, eventually you’ll have an enormous resource from which you can quickly make charts and graphs.
Anyone can learn and track these three basic real estate statistics and learn to use them like a well-oiled weapon in their practice. Master a few basics and watch your position as expert and valuable resource soar like an upward trending bar graph.
Lauren Roberts is an REO industry veteran and the founder of REO Maestro. Founded in 2001, Lauren’s objectives and approach were very deliberate: to aggressively broaden the talents of her REO agent team by combining their expertise with systemic tracking, reporting, organization and automation. She partnered with Shupe Software Technologies whose progressive approach to software development naturally and seamlessly complimented Roberts’ vast industry expertise. Inspired by overwhelming industry and peer demand, Roberts and Shupe Tech successfully launched REO Maestro to REO professionals nationwide. In 2010, the company changed its name to Realis as they welcomed even more advanced technologies to their product offering.