Blanket Mortgages: An Investors Dream

Since the big real estate crash of 2008 it has been much more difficult to get a loan at the bank.  Before the crash pretty much anyone with a pulse could buy a home.  It was great, you didn’t have to come up with a large down payment because the banks would offer you one hundred percent financing on the property.  Sometimes they would even offer one hundred and ten percent financing so you can take the extra money and fix the property up.

Well those days of easy money from the banks and no down payment are long gone.  The banks lost a lot of money because there were millions of people who defaulted on the property.  They simply walked away from the mortgage because they didn’t have to put any money down.  They didn’t have any skin in the game so there was nothing to lose.  These days if you want to buy a rental property the most the banks are going to lend you is seventy five percent loan to value.  That means you are going to have to come up with a significant amount of cash if you want to buy.

There is actually a big hole in the market for people like me who want to invest in rental properties but do not have the upfront cash for the down payment.  Here is a perfect example…  There were 4 duplexes that I wanted to buy in a popular city in the Midwest.  Each property was $50,000 or less.  They all had tenants in them and each property was brining in at least $1,000 each.  So the total monthly income from the property was $4,000 (actually it was $4,250).

What I wanted to do was get a blanket mortgage of $200,000 to buy all four properties.  I did not have any money to put down as a down payment so that disqualified me right on the spot.  However, how I see it is the banks for lawrenceville water damage really have nothing to risk.  The monthly payment for a loan of this amount will be about $1,200 or so.  The monthly income generated from the properties are more than 3 times the monthly payment. Unfortunately, the banks see this ask risky because I do not have any money to put up front.  To me this is stupid and there are a lot of other investors who agree with me.  There is a big whole in the market that needs to be filled and which ever business or bank can achieve it will have a lot of business on their hands.

Playas De Tijuana Could Be The Next Biggest Real Estate Market

The real estate market in San Diego has been booming over the last 10 years.  In the early 2000’s you could easily buy a condo for less than one hundred thousand dollars in the San Diego area.  Well, those times are long gone.  The average home price is now more than $560,000 in the San Diego area.  Unless you have a lot of money to put down, that makes for a very expensive monthly payment for the average family.  About $3,500 per month in fact.

The increased housing prices and jobs that don’t increase their salaries as much as the inflated prices of housing is making people look for other ways to keep their housing costs affordable.  Sure you can rent but not everyone wants to rent for the rest of their life.  So what other options do you have?  How about making a small trek just across the border to Mexico.  I know what you are thinking, Mexico?  Really?  Yes, Really.

The Playas De Tijuana is set to explode in the next few years for real estate.  I was just there yesterday and I found several fantastic opportunities for investors to take advantage of.  You can buy a condo on the beach for about the same price as your down payment on a home in San Diego.  There are many 2 bedroom condos on the beach available for $150,000.  You can even talk to a psychic in charlotte nc and have a home built to your standards away from the beach for much less than that.

The Playas De Tijuana has a lot to offer.  They have a Walmart very close, a updated movie theater and a lot of shopping.  However, the great part about it is it still has the old town Mexican feel.  There are a lot of vendors on the street selling fresh food and produce.  They will cut coconuts and make you a fresh drink (with or without alcohol) right there in front of you.  You will not be able to find this in San Diego.

Ok, I know the next thing you are going to ask.  What about crossing the border.  Yes, I agree that can be a big hassle and I would not even dream of considering it if I didn’t have a Sentry.  With a sentry you are able to get across the border in 15 minutes max.  It dramatically speeds up the process then you can have fun fighting the San Diego morning traffic.  Luckily for myself, I do not have to go to work in the morning and fight the traffic.  I usually start my day and leave the house around 11:00 am so there is no lines or traffic for me to deal with.

So I gave my best advice, you can take it or leave it.  As for me, a lot of my investing dollars are going to be focused on the beach properties in Northwestern Mexico.  I’m sure I will have a lot of Gringos as my renters in the near future.  Until next time, Brokerwestre.

The Best Real Estate Markets To Invest In For 2017

Buying an investment property is a good decision.  It provides steady returns year after year, you have a physical asset, and it is much less risky than the stock market.  However, not all real estate markets are created equal.  Where you buy may be even more important than what you buy.  When investing in real estate there a some things you need to consider such as how strong the job market is in the area, the median price of homes, and the average vacancy rate for rentals.

With all of these things in mind you can narrow down your search pretty quickly.  At Brokerwestre, we are going to make it even easier for you.  In fact, we have done the hard work and are going to simply tell you where we think the best places are around the country to invest.  Our goal is to get you the most bang for your buck.  Right now of all the places, Florida seems to have a lot of areas that are booming right now.

Places in Florida that we would put at the top of our list include Jacksonville, Fort Myers, Daytona Beach, Tampa, and Sarasota.  Florida takes five of our top ten spots when we recommend cities to invest in.  Why are these cities so good?  The average home price is fairly low considering you have sandy beaches very nearby.  These cities tend to have rather low crime rates, have well built infrastructures, and a lot of good schools to choose from.

So where should you invest if you are not in the mood to buy in Florida?  Our top five suggestions outside of Florida are San Antonio TX, Charleston SC, Phoenix AZ, Colorado Springs CO and Grand Rapids MI.  All of these cities are very affordable, especially Michigan and Texas.  They all are experiencing an increase in job growth as well.  Many new companies are moving into the area and are creating jobs in the medical, healthcare, manufacturing and technology sectors.

If you would like more information on where to invest you don’t have to rely on your tarot reading orlando any longer.  Opt in to our email list and we will provide you with a steady stream of investment properties that are solid picks that we keep an eye on each week.  Find one you like then give us a call.  We can help you secure the property quickly and have you owning your first investment property in no time.

Foreclosure Properties May Not Always Be The Best Deal Out There

It’s such a hot term over the past few decades.  You hear it all the time, people looking to purchase foreclosures who claim to get a fantastic deal so they can fix the property up and resell it for more quickly.  Although this does happen, it is not a common as the television personalities make it seem.  The deals are few and far between.

So how does a home get into foreclosure anyway?  Well, it simply occurs when a person or company does not pay their loan and then the bank or financial institution acquires the property.  The lender will have to take the property back and they are looking to not only get what they are owed on the property but they will want the back taxes and other fees that they incurred as well.  All of these fees make it harder and harder to find a great deal in the foreclosure market.

However, the deals certainly can be found.  You just need to make sure you do you homework and due diligence before you decide to take the leap and make an offer and eventually purchase a foreclosure property.  The foreclosure process varies between states but most of the time the properties of escondido carpet pros will go to auction and you will have to compete with other investors to obtain the deed.  In order to get the property you will have to go in with an all cash offer.  This further eliminates some of the competition because not everyone is able to do this.

However, what you can do is go to the bank and get preapproved for a certain credit line.  You will know exactly how much you are going to be able to bid and you will be treated just like a cash buyer and will be able to compete with the big money investors that will be at the auction trying to take that perfect piece of real estate out from under you.  The auctions are usually held at the same times and on the same days of the week.  You will need to check with your local county courthouse to find the times and auction days relative to your area.

How to Purchase Rental Properties With Nothing Out Of Pocket

Since the real estate collapsed in 2008 the banks have definitely tightened up their standards for accepting loans.  Many people will tell you that you can no longer acquire properties, especially one you are not going to live in, for nothing down.  In the early 1990’s the no money down phenomenon was very popular.  You couldn’t go a day without seeing a infomercial about it on the television.

You can still buy properties today without spending anything out of pocket you just have to be a bit more creative and have a higher tolerance to risk.  However, with that being said, even if you can buy a property with no money down does not mean that you should.  I highly recommend that you have some extra cash as a backup and make certain that you are not over leveraged on the property.

The most obvious way to acquire a property with no money down is by using owner financing.  This may be the most obvious but it is not the easiest to get done because it requires the most risk on the part of the homeowner.  You will need to find a homeowner that is desperate to get a deal done.  More than likely the homeowner will be behind on payments.  With owner financing you will be making the mortgage payments for  him or her and will take over the rights to the property.  This will in turn help the homeowner improve his or her credit since a mortgage payment is one of the most important aspects in credit history.

A second strategy that I have used a lot in the past to gain new cash flowing rental properties is to bring in a partner.  This works really well in larger multi unit properties like apartment buildings.  The partner will come up with the down payment and in turn you will give them a larger percentage of the profits each month.  What percentage you work out is between you.  However, I usually gave them between 65 to 70 percent of the monthly cash flow since they are coming up with the money.  It works for me because I own a new property for nothing out of pocket and it works for the investor because he will get a positive cash flow each month with a small down payment.

For more investment strategies and how you can find several positive cash flowing properties with little investment contact us at Brokerwestre Real Estate.

What You Need To Look For When Listing Your Home For Sale

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Just like the old saying “you get what you pay for” this is true as well when selecting a real estate agent to list your home.  It is good to do your due diligence before hiring a realtor to represent you.  In the United States there are more than 80,000 realtors to choose from.  However, the average agent only sells 4 homes per year.  Unless these agents are selling multi-million dollar properties, which they are not, those four home sales are not even enough to make a living off of.

The average agent does not actually market your home.  Instead, they do the three P’s of real estate.  They Place your property on the MLS, Put a sign in the yard, and then Pray that it sells.  When selecting an agent you want to make sure he or she has a true marketing plan that is proven to be effective.  An agent like this will generate top dollar for your home and get it sold quickly and efficiently.  You also want an agent that is a good negotiator and will not just accept any old offer that they receive on your home.  Their job is to fight for you to get you the best possible price for your house.

You also want to make sure that you help the realtor out a little bit by making sure your home is in the best possible position to show to prospective buyers.  What does this mean?  Are you going to have to spend thousands of dollars to remodel your home?  In most cases no.  You simply need to freshen up the paint in rooms and areas where it is faded and old.  This will make a big difference and does not cost a lot.  Especially if you do the work yourself and save the cost of hiring out painters.  Another area that should be given consideration is the carpets within the home.  Often the carpets just need to be cleaned instead of completely replaced.  Doing this will help the home to show its best.  A good team can be found in your local area and will typically only cost about $150 to get the job done.  Here is a team we recommend and have used many times in the past.  The carpet pros use only organic soaps and materials and your carpets will be dry and ready to walk on in less than 2 hours.

Finally, when selecting an agent, make sure you interview a few of them to select the one that will sell your home for the most money and with the least hassle.  One big trap that many home sellers fall into is listing with their friend or coworker just because they know them and want to do a favor for them.  The homeowner could possible lose thousands of dollars because the agent may not be the best one to sell their home.  Unfortunately, at Brokerwestre we see this all the time and we want to save you from the headache.  If you plan on buying or selling your home within the next 3 to 6 months then give our office a call.  We have sold more than 2,500 homes and have the experience you need.  We look forward to working with you.


How To Acquire a Commercial Property Loan With No Money Down


Compared to residential property loans, commercial loans represent a small percentage of the overall loans out there for properties.  One of the best advantages of trying to obtain a commercial loan is that a person does not have to have good credit in order to get a commercial loan.  What? Does hearing that surprise you?  Well the reason you don’t need to have good credit is because the property itself is what the lender is going to be looking at instead of your credit.

Many commercial properties are very expensive and go far beyond what the average person is able to repay if the loan were to default.  Therefore, the lender is going to look at the overall cash flow of the property to determine whether it is a safe investment or a big risk.  For example, if I am trying to purchase an apartment building with 25 units and it has had a strong history of high occupancy, low turnover, low expenses and high cash flow then the lender is going to approve this loan.  If you were to default on the loan the lender would own the property.  The cash flow from the property will more than pay for the loan expenses each month.  The experts at break down how lenders look at commercial property versus how they examine a residential property for a loan.

When it comes to real estate loans and you want to rent out your home, a lender is reluctant to lend you more than 75 percent LTV.  On a commercial property you are able to find lenders that will lend up to 90% of the total value of the property.  If you don’t have the cash to pay the ten percent down payment you can always get an investor to partner with you on the deal.  You will probably need to give him a majority of the property, maybe 60 to 70 percent but you will then have a property that cash flows with nothing out of pocket for you and you own 30 to 40 percent of it.  Not a bad deal if you ask me.

Once you have done this once, there is no reason why you can’t go out there again and find another property that cash flows, contact the investor again, create the deal and now you own (partially) two properties.  Once again, with no money down for you.  If you do this for a year, or two or three you can easily see how you will be able to quickly retire with a strong residual income from commercial real estate.  If you are looking for commercial real estate that has a strong positive cash flow contact our team at Brokerwestre Real Estate.

Using Your IRA For Real Estate Investing


Using your IRA to invest in real estate is considered by some to be a crazy idea that should not be done.  I on the other hand, believe it is a solid strategy and as long as the proper caution and analysis is done, is a good choice.  Back in 2007 and earlier the real estate investing market was booming.  Then the banking industry suddenly tanked and your traditional forms of investing didn’t look so good anymore.  It was quite risky to invest into the stock market since it can be so volatile.

The typical person will invest their IRA into mutual funds, the stock market, gold and other so called secure investments.  However, these areas, especially mutual funds, come with hefty fees when you try to take your money out.  Heck, they even have large fees when you keep your money in.  That is why I believe moving your IRA into an investment such as an apartment building is much better suited for me and my retirement.

Buying an apartment building, or any multi unit property, has many advantages to it.  First and foremost, it will bring you a steady income each and every month.  Your tenants will be paying you each month and will be paying your mortgage for you as well.  One thing that many people consider as an obstacle to buying an apartment is that they don’t want to be a landlord and spend all of their time collecting rent.  Well, I agree I wouldn’t want that either.  That is why I only have to keep tabs on the property management company instead of all the tenants.

The property management company will handle all of the tough tasks such as getting new tenants, fixing any repairs, collecting rent, and depositing your rent checks into your bank account each month.  The small fee, usually 10 to 15 percent that they take is more than worth it.  If you need to update the property when a tenant moves out like replacing the carpet from Hollywood Carpet Pros, or painting the interior the property management company will cover that for you as well.  It’s important that you select a property management company that has good reviews and a lot of experience.  Join your local investment club and as the local people there who they recommend to manage their property.

Another reason I prefer to use my IRA to buy real estate is because it is a tangible asset that tends to increase in value faster than your mutual fund IRA account.  You can also get a tax break because you can deduct the depreciation on the building from your taxes each year.  These things really add up and can bump your overall profit up a few percentage points each year.

Quick and Inexpensive Renovations That Add Value To Your Home

When you are selling your home you want it to sell quickly and for top dollar.  However, many homeowners don’t have a lot of extra cash to throw into their home before selling it.  The good news for you is that you don’t have to spend a lot to get a good return on your investment.

One of the first things that we recommend here at Brokerwestre is to focus on the outside of the home.  This is the first thing a potential buyer will see.  Improving the curb appeal will definitely increase the likely hood of your home selling for a greater amount.  So how do you do this exactly?  We are glad you asked…

One of the first things we suggest you spruce up is the front door.  This can be done by either staining the door if it is solid wood or painting it with a fresh coat of paint.  Creating a front door that stands out has become a very popular trend lately.  In fact, studies have shown that houses with a red front door tend to generate a higher sales price than homes that do not have this color front door.  Also, make sure that the door is not damaged.  If it is then you need to either get it repaired or replace the door entirely.

Another area that can be a sore spot when a new buyer stops by is the driveway.  We admit, installing new pavers for your driveway can get a bit expensive, but it will quickly bring up the value of your home.  However, if you have a blacktop or cement driveway simply patching the areas with cracks or holes will make a night and day difference.  This can be a lot of work and it does take a bit of skill to get it right.  We suggest hiring a professional crew to do this job.  In fact, one team that we have used for this process is Wellington Roofing Pros.  Don’t let the name fool you, they do a lot more than just roofs.  They focus on complete home renovations, are well priced and do a great job.

Of course we can’t ignore the landscaping when we are talking about curb appeal.  This is the first area that people thing of when we mention the exterior renovations.  Fixing the yard is easy and will not cost a lot of money.  Focus on creating a peaceful, inviting environment when you walk up to the front of the house.  The grass should have a straight solid edge next to the walkways.  Plant flowers, trim bushes and go the extra mile to stand out by adding lights for the night, statues or water features to make the home pop.  These things do not have to cost a lot of money and you will get more than triple your money back when the buyer makes his or her offer on your home.

Finally, if your budget allows for it.  Throw a new coat of paint on the entire home.  This is easy if you have a brick home because all you have to do is the trim work.  If you have a house with wood paneling on the exterior it will obviously cost you more because there will be a lot more square footage to paint.  Doing this will enrich the color and will once again give you a lot of bang for your buck.  For more information on how to improve the curb appeal of your home please feel free to contact us at Brokerwestre.  We will have one of our experienced agents and contractors come to your property to give you the best advice completely for free.

  • Brokerwestre Staff

Southern California – Should You Rent or Buy?


We all know southern California is a beautiful place to live.  There are plenty of things to do, outdoor activities, hiking, beautiful beaches and fantastic weather.  Unfortunately, it can be quite expensive to live here.  The housing prices have gone up dramatically over the last 10 to 15 years.  In fact, the median house price is over $500,000.  That is not exactly affordable on the average person’s budget.  However, there comes a time when most people are ready to trade in their rental payments and start looking for a piece of property they can call their own.

The question is, is it a smart decision to buy instead of rent in a market where the housing prices are so high?  If this was 15 years ago and you could foresee the future the question would be a very easy one to answer.  You would do whatever you could to purchase property in southern California and earn a hefty return on your investment.  But it is not 2001 anymore and the prices are not anywhere near as cheap.  So is purchasing a home worth it?  Are the values going to increase or will you be upside down if the housing market were to burst?  Southern California has a very strong renters market.  You can charge high rent and usually at least break even on the property if not get a positive return.  After your deductions for expenses and depreciation on your tax returns you are sure to come out ahead of the game.

That is why at Brokerwestre, we highly recommend multi-unit apartment complexes and duplexes as top investments in the southern California area.  Are they going to be expensive?  You can bet on it.  Are they worth the expense?  We believe they are.  You can charge high rent and once the property is paid off you will have a very significant income stream that you can rely on for your future and your retirement.  You will have to determine whether a property is the right one for you by determining its price to rent ratio.  The total cost of ownership of a property includes financing, repairs and property management fees.  You want to make certain that your property can more than cover these expenses each month. This site: will give you more information about what to look for in a rental property and the dangers to look for so you don’t get a “lemon”.  You should also keep in mind that the price of rents in Southern Cali have been increasing year over year for many years now.  In fact, the average rent has increased in California by 4.6 percent each year which is more than 1.2 percent more than the national average.

Will this trend continue?  As long as people want to live in warm weather and live near the beach then yes we see the trend continuing.  However, at some point it is going to have to taper off.  We just haven’t seen it yet.  At some point there is bound to be another real estate bubble.  Here is some information about the future of the real estate market and the real estate bubble.

The good news is that even if a property does not continue to increase in value and if people begin to slow on purchasing property you will still have a great investment because the rent market will be very strong.  You will be able to charge higher rents with the higher demand for your units.  The market is going to continue to change but it is nothing we have not experienced in the past.  Our advice is to purchase a property, hang on to it, rent it out and receive a steady income each month.  We are not suggesting a quick flip but a long term investment.

If you are looking for a for a rental property in southern California that will give you a positive cash flow then contact one of our brokers at Brokerwestre today.  We would love to sit down with you, discuss your goals and get you set up with the right property.