Real Estate: Financial Considerations $$$Written by Dan Auito
You have permission to publish this article electronically or in print, free of charge, as long as bylines are included. A courtesy copy of your publication would be appreciated - send to: magicbullets@alaska.com Real Estate: Financial Considerations $$$ Raw land as opposed to improved property is much more difficult to finance through traditional lenders. The main reasons are that it generates very little income, development costs can be expensive, there are no buildings or improvements that can be used as collateral, and it is often considered speculative. For those reasons mentioned we find that sellers are often our first choice regarding financing. It is typical for a seller of raw land to accept 10 percent down and rest to be paid over time at a specified (below market) interest rate. This would be an example of an installment land contract. Other forms are contract for deed, mortgage and note and purchase money mortgages. In these cases, a real estate attorney usually drafts these contracts and a bank will act as an escrow agent to facilitate verifiable records of payments received. The seller often retains deed until property is paid for in full. If you want to investigate bank financing, then you may start out by offering 30 percent down with a seven-year mortgage, with bank getting an extra percentage point over and above current interest rates for standard loans. This may not be accepted, but it does give you a starting point to see just what they may be willing to do.
| | How Can the Average Person Build Wealth in Real Estate?Written by Dan Auito
You have permission to publish this article electronically or in print, free of charge, as long as bylines are included. A courtesy copy of your publication would be appreciated - send to: MagicBullets@Alaska.Com How Can Average Person Build Wealth in Real Estate? Books on real estate are a dime a dozen—and most focus on taking advantage of someone else’s misfortune. They frequently describe lofty methods for buying and selling properties no ordinary citizen can be successful using. Real estate professional Dan Auito has had enough of books that waste people’s time, money, and effort, and sap their will to believe in their abilities. So he has written “Magic Bullets in Real Estate: Your Guide to Understanding and Using Real Estate to Your Best Advantage,” which reveals how every person can live a life of prosperity and security. It describes in detail a concrete plan to find, negotiate, contract, buy, sell, rehabilitate, and flip properties—as well as manage tenants, taxes and tradesmen. “The book gives strategies on how to zero in on specific real estate,” explained Auito, who has bought, sold and rented many properties over last fourteen years. “It gives practical, affordable steps for achieving results—without paying commissions or management fees.” This common sense, enthusiastic guide dispels myth that investors need agents and managers to work on their behalf. It describes how to use mentors, appraisers, real estate attorneys, title companies, lenders and a supportive group of educated parties to inform, educate, guide and encourage. Auito said that by reading about what has worked for him and seeing how it has worked, individuals can save vast amounts of money and frustration.
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