It is all over the news, on the Internet and in all of the local newspapers of recent years that it is difficult to obtain the financing that is required to invest in the real estate market. However, with a little research into the subject, you will learn that many traditional financing methods are still available to the investors of today’s real estate market. Although, they may not be the most popular methods for financing real estate investment transactions, they do still work just as effectively as they ever have, if not more.

What Options are Available?

In the real estate market of today, many sellers are willing to finance the transaction themselves in order to sell the property quicker. When property owners are stressed, they become progressively supportive as the source of their stress worsens. This type of transaction is a win-win situation for both the investor as well as the seller. The seller is relieved of the stress and the investor gains positive cash flow.

Another traditional financing method that many investors in the real estate market are still using today is private lending. Private lenders have always been a viable option for obtaining the funding that you need to invest in the real estate market.

However, with the low interest rates that are offered among those in the financial community combined with a volatile stock market, more and more private investors are looking for at least an eight percent return on their investment. If you come up with a deal proposal for potential investors that makes perfect sense to you, cautious investors will have no problem seeing your vision.

Another option for financing is hard money lending. A really great deal is worth spending just a little bit more. You may have to pay a higher price, but you will be able to take advantage of a great deal that you would otherwise miss.

Property Options Australia
Property Options Blog © 2006 - 2009

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Once you have found an investment property that you would like to purchase, your next move is to start thinking of ways to finance it. If you are interested in single-family housing or investment properties that have only four units or less, your best choice may be a good lender.

Banks are also typically good; however, they usually offer loans with shorter terms and higher interest, especially for investment properties. It is best to give your local banks a call to see what they are offering on typical properties in the area.

The Best Deal…For Whom?

Mortgage brokers typically charge about one percent of the amount of the loan to find you a quality source for funding. The majority of mortgage brokers are on your side; however, not all mortgage brokers as exactly honest, upstanding citizens.

Typically, a mortgage broker is a salesperson with particular enticements that will earn you more money. Some mortgage brokers as for a small upfront fee, however, may not find the ideal loan program that best suits your needs.

For instance, your mortgage broken may be faced with the responsibility of choosing between two different loan programs. One bank offers a 7% 30-year fixed loan with a $2,000 bonus for the mortgage broker. The other choice is a bank offering 6.5% on a 30-year loan, but with no broker bonus. In many cases, the broker will take the deal that is best for him or her, which may not necessarily be the best deal for you.

Find Someone You Can Trust

The best idea when looking for a mortgage broker is to ask around. Find out whom your family and friends recommend. Look for someone you can trust who does not deal with questionable loan programs. Always as to see the specific details on all loan programs that are available to you. Mortgage brokers are required by law to show you any monies or commissions coming in or going out on a deal.

Property Options Australia
Property Options Blog © 2006 - 2009

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When You Are Ready To Seal The Deal

When you find a property that you want to buy there are some important things to remember:

• If you have a real estate agent that you are working with you must conduct all of your negotiations through that agent. Do not go to the homeowner separately and try to strike a deal.

• If you attend an auction be aware that all purchases are final. You will not be allowed to negotiate the contractual terms or have building inspections done after your bid is accepted. You must have everything done before you place your bid. Once your bid is accepted it is too late to do these things.

• Always get a building inspection and pest inspection done before you buy a new property. It may seem like just another added expense to pay but you will find that it is well worth the time and money to have these done. Knowing what you are getting into before you make a deal by having these inspections done can save you thousands of dollar and a lot of headaches in the future. If you know that the house that you are interested in purchasing has problems you may not want to buy it after all. Or you may be able to negotiate a much lower purchase price as a result.

• Get pre-approved for your loan before you start looking at houses. This will save you a lot of time and energy in the long run and will help you to determine how much house you can afford. That way you will not be looking at homes that are not within your reach financially and you will know how much money you need to have saved for a down payment.

• Decide what type of financing you want to get, whether fixed, variable or a combination of both.

Property Options Australia
Property Options Blog © 2006 - 2009

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The Commonwealth Bank recently announced that home buyers will have to come up with at least 3% of the purchase price for a home as a down payment on their mortgage out of their own pocket. This would be in addition to any money that is received from the First home Owners Grant or any other available government grants.

First Home Owners Grant Is Not Enough Anymore

The First Home Owners Grant has been helping first time home buyers to be able to get into a home easier by using the $14,000 as a deposit and not requiring them to have to come up with any money on their own. But this is all set to change now which could make it harder for a first time home buyer to get into a new home.

Banks Are Leary And Nervous

One of the reasons for the change in policy is due to the fact that people are more apt to stick with a home if they are financially vested in it. If someone gets into a property and has none of their own money into the house it is much easier to walk away when times get hard. The banks want to make sure that they are not losing money to new homeowners that are not committed to repaying their loans and upholding their end of contractual agreements. There is also concern that if there are future inflation and interest rates hikes it will make repayment of loans even harder.

3% Down Minimum Requirement

Australians who are looking at getting into a new home will now be required to put at least 3% of the purchase price down out of their own pocket. The banks are hoping that this will encourage home owners to stick with it, even if times get tough.

Property Options Australia
Property Options Blog © 2006 - 2009

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Is it really possible to make a fortune by investing in property options and only risking a minimal amount of money up front? This is the question that many novice investors are asking before they take the plunge and invest in options. It is understandable that they are cautious, especially with the horror that is the United States real estate market. Investors are hesitant to put up their hard-earned money because they are afraid of losing everything.

However, what many people do not realize is that there are real possibilities that open up to you when you invest in property options. There is less risk than investing in the traditional real estate market.

What It Is

A property option is simply a legal document that gives you the rights to earn a profit on a particular property. You do not have to hassle with maintenance and tenants as you would with a traditional property investment. You have greater control over how much money you will make from your investment. You can increase your profits by adding to the value of the property. If you decide you no longer want to be an investor in the property options market, simple walk away. Your loss will be no more than what you would put down on a traditional piece of real estate.

Where To Learn It

Massland founder, Mark Rolton went from living from paycheck to paycheck from his blue-collar job as a window washer all the way to the billionaire status he enjoys today. He did it all by using the strategies and techniques that he is more than willing to teach you. Mark Rolton will educate you on all he knows about investing in property options, help you find the right property to get you started in the market and even help with financing were necessary.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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