Financing

Real Estate Investing in most cases will go ahead and capital expense our corporate dollars in acquiring a piece of investment property after doing all the due diligence on our part that we are indeed getting the best possible deal our dollars can buy. This is one way for us to distinguish Real Estate Investing Biz that we have our own monies tied to what we know is a steal of a deal. This allows you as an investor to evaluate our portfolio, check what we have which is ready to produce positive cash flow today for you rather than wait.

In entire purchase process a typical investor may or may not have immediate cash or all the cash required to acquire an asset. Also it is best to leverage your line of credit especially when you can service a cheap debt with cash flowing assets. We have established various options, partnerships and synergy relationships to exactly point you to the right source at the least cost to and minimum bite to your positive cash flow.

We diligently evaluate and thoroughly understand each financing options. You are more than welcome to schedule a one on one no obligation session with our financing experts to do any of following tasks.

Financing

• Pre-qualification with financial institutions
• Private alternative finance options available
• Insurance products for asset management are available
• Real estate closing attorney, strategic partner, to close your investment transaction

In a real estate investment opportunity involving assets needing renovation or other costs, for a detailed example on a purchase cost of $50,000 an investor would typically incur the following out-of-pocket expenses:

• A down payment of between $5,000 to$10,000 (varies on case to case basis)
• Closing costs with insurance, typically $2,500 (Some variation exists)
• Rehabilitation costs, typically $5,000 to $7,500 (Very specific to each asset rehab need)

With these costs, the typical investor spends between $12,500 to $15,000 in out-of-pocket expenses on a $50,000 real estate property. Real Estate Investing biz is a part of your team to minimize expenses incurred by the investor! Many clients do not have this much cash readily available, or they do not want to put this much money into one real estate investment opportunity.

The interim lender offers a short-term construction loan, which includes funding for acquisition and most rehabilitation and closing costs. After the purchase your real estate property, a real estate attorney escrows the construction costs and disburses your renovation funds to the contracted team of professionals throughout the process of renovation. When the property is completely rehabilitated, the long-term financier starts the financing process by ordering an appraisal. Financing from the long term financier pays off the construction loan. The property remains on a 30-year fixed rate for positive cash flow results.

Through the financing strategy, our investors invest only 5% to10% in a $50,000 property. After the rehabilitation projects are complete, our goal at Real Estate Investing Biz clients is to create a minimum 25% equity position on the real estate property and positive cash flow.

We highly recommend that you review our suggestions on “Leverage Investing”.