The rich in Billings Montana don’t settle for lousy money-market Returns, and you don’t have to either!

Where can you get an amazing investment these days?

If you are like most people in Billings Montana you are cautious with your investments. You want a solid return on your money and you’re not interested in the stress that high risk investments bring. But most people have such limited investment choices: they can invest in a money-market fund or a CD, and get a return that 9 times out of 10 does not even keep up with inflation. Or they can roll the dice in the stock market. There, every day your stocks are going up and down flying around like a six flags ride.

That does not sound like a fun way to invest my money.

A better way to invest

There is a better and people that know about this great investment alternative are more than happy to keep it closely guarded. So what is the better way?

Investing in real estate as a secured lender

What this means is you get an excellent interest rate on your money secured by a specific piece of property located in Billings Montana. If things go well, you get your money back, on top of a very attractive interest rate. If for some reason the borrower runs into difficulty, you investment is more than covered by the value of the property.

Secured loans are no longer just for banks

Banks are known for taking risks right? That is because they invest their money the exact same way. They charge a healthy interest rate and want you house as security for the loan. They either get the healthy interest rate, or they get your house. Not too bad, if you’re the banker.

The great news is that you can invest the same way banks do. You get even better interest rates than the bank can charge and you have real estate securing your loan.

Why don’t we hear about this investment in Billings Montana?

It’s simple; because they big businesses don’t make their fat commissions from these types of others using these types of investments. They want you invest in their stocks and use what people call the so called traditional ways of investing money.

Learn more about what you have been missing!

This web site is full of information on investments that can earn you a solid return and there are more opportunities to invest every day.

Who am I am how do I know about these investments? We are real estate professionals, who simply buy, fix up and sell home. We are real estate problem solvers.

We are constantly in the Billings Montana market as investors ourselves, finding houses that people must sell quickly, finding ways to get hard-working families out of the bad situations and providing families with amazing homes.

We find more good real estate opportunities in Billings Montana than even we can invest in at any one time. That’s why we use a large network or banks, mortgage companies and investor like yourself to participate along with us.

We at Big Sky Property Solutions LLC invite you to see what you have been missing. Browse this site here for other articles on investing with us. There is also an article that explains the process more in depth.

Click here to contact us now for a FREE confidential, no obligation consultation on what investment opportunities we currently have available.

Must Know Gains in Real Estate Investment

Real Estate among other investments provides superior returns because of its multiple income streams. The investor can create source of income that would last over time. The following are the rated top profits which made real estate investing an attractive investment to investors and clients alike:

Property Value Appreciation

Normally property value appreciates overtime, benefiting the investor by providing better chances of reinvesting on properties with higher value. This is influenced by inflation which increases value on sales and an equity line for credit that can be utilized in another form of investment. Appreciation wouldn’t only escalate the value of an investment but it also generates additional investment to earn from.

Mortgage and Stocks

Not everyone engaging in real estate investing is an active investor. Some would engage passively. In cases like these the investor would most likely place his or her investments in the hands of the stock market forming equities of many huge homebuilders. On the other hand, these investors can choose discounted notes for conversion of mortgage.

Inflation of Prices

The general economy has the most unpredictable status. It tends to go up really high but seldom goes down really low. Nowadays, inflation has become a continuous process and a majority of the consumers would consider to be a nightmare. But inflation is an investor’s best friend. When prices go up, it is then assumed that the price of the investment properties goes up with it. Even if there are certain areas not technically affected by the appreciation, values can increase significantly through time just by the terms of inflation. During times of inflation, if the cost of construction materials and labor for building a structure rises, results will affect identical properties big time. Therefore due to recreation costs, the value of a property increases tremendously.

Market Value Depreciation

For several reasons, there would be properties that are sold due to immediate needs of the seller to gain the equity of their property. Due to pressure, some would agree to a price significantly lower than its original market value. There are properties that are in foreclosure wherein the lenders will concur with a market rate so as to clear any history in their books and avoid further expense in marketing. When you have found properties like these, take it as an opportunity. Immediately enter the equity position which serves as your profit within the given transaction.

Have the Right to Increase

Owning a property that has lesser or zero disadvantage and having more advantage reserves the owner the right to increase its value. One typical example is when the property is located in an accessible and profitable area. You can increase the price of this property type most especially if it is a commercially good location. Another site gaining much appreciation is the one located in areas where the views and environment are welcoming, calming and can provide some sort of relaxing enjoyment.

To further improve the site, one can renovate the structure through the removal of hindrances or bad aspects of the environment. Add a deck and patio facing the view or add bigger windows; a few ways to add to the total appearance and rate of the property.

Property Conversion

One of the best examples of property conversion connected with real estate investing is purchasing an apartment having a low selling price, remodeling majority of the structure, and conveniently converting it into condominiums.

Real Estate flipping Secrets

The real estate market may have hit a serious downturn, but lease options are still a viable option for real estate investors searching for monthly cash flow. Lease options are a great way for a would-be buyer to purchase a home – and provide premium cash flow for investors at the same time.

A lease option gives the seller the right to purchase a property at a later date. Typically, the price is pre-set, but you can also have the buyer pay market value if the option is exercised.

Lease Options Explained

If you’ve got rental properties, a lease option provides the best of both worlds. You get a steady renter, more rental income, and a tenant who will treat the home like they own it; in their mind, they already own it.

The buyer pays a deposit, typically 3 to 5 percent of the purchase price. They pay rent – often at premium rates – that go toward their deposit. Usually, they can exercise their option to buy within a two to three-year period, during which time they must arrange for financing with a third-party.

They can buy if they want or they can choose not to buy. No matter the decision, you as a real estate investor get to keep their deposit and premium rental rates.

Lease Options Provide Benefits For Buyers And Sellers

The option money does two things: It takes the house off the market for a set amount of time and it gives buyers options to buy if they choose. As a real estate investor, you get money no matter if the buyer decides to exercise the option or not. The buyer, however, also gets the first shot at buying the home.

Let’s say a buyer doesn’t qualify for your home now, but will in two years. You charge a higher deposit, a premium monthly rent, with a percentage going towards the purchase price.

Fast forward two years later and hopefully the buyer will be in a better position to buy. They’ll already have their down payment if the seller applies it to the mortgage. Let’s look at this example: You have a $160,000 property on a 2-year lease option with 10% option money.

Monthly payments are $1,000 with 20% going toward the purchase price. At the end of the option, the purchase price would be $139,200, with $16,000 in option money and $4,800 in lease payments going towards the purchase price. Option amounts are negotiable, generally 3-5 percent of the purchase price.

As an investor, you unload the property plus you’ve generated a healthy monthly income. The buyer, meanwhile, gets their house. Lease options provide win-win options for buyers and sellers.

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Mobile Home Investment – Easy Just Got Easier!

I know I get on my high horse a lot, but I think all of us in the mobile home biz community need to take more pride and make some more noise about what we choose to invest in. The more people I talk to the more negative, incorrect stereotypes about factory built homes. Spread the word and deals will become attracted to you. Your reputation will soon get around. Instant medium/big fish in a big lake!

In a quick week recap: I discovered an easy way for my tenant’s bank accounts to be debited every month when their payments are due. How great is that! Stop in at your bank and ask for any forms you will need to get signed.

Make sure to grab an extra blank copy of the “Automatic Debit Form” (or similar sounding name) at your bank. This extra copy will be used later to make copies. Why you ask? I will more than likely send all my tenant-buyers a copy and ask that they cooperate with our “New adjustments and improvement transitions.” Offering a $5 discount per month or a one-time credit of $20 may excite a reluctant tenant-buyer to sign up for our auto-debit program. (One down fall – NO MORE LATE FEES!)

In other news all is great on the vacancy front. 100% Occupado!

– John F.

Tip: On a blank sheet of paper list all the qualifications that your TB must have in order to be approved with you. Such as: a credit score above, no major felonies, job history specifications, etc. This will help eliminate any lawsuits in the future if anyone claims that you are screening people unfairly. File this sheet in the back of your filing cabinet and keep it safe.

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Why Cash Flow is Paramount to a Real Estate Investment

The starting point for any investor making a real estate investment decision is a study of the overall market and supply and demand factors in specific cities and towns. Whether for speculative purposes or part of a long-term strategy, investors are never willing to engage in real estate investing unless the financial climate agrees.

As such, the bottom line for investors trying to decide whether to buy or hold boils down to their ability to analyze the health of a property’s cash flow, rental demand, and rent rates; because these will change over time for any income-producing property in any area and a prudent investor will want to stay on top of it.

The key element when analyzing rental property is the cash flow produced by the property (which simply stated is the difference between cash inflow and outflow). At all times any prudent investor engaged in real estate investing wants to know how well the investment is performing and subsequently whether it’s worth buying (or worth holding) based the climate of the property’s specific market.

Even if you accept the premise that rental property values will grow in value over time and will accumulate equity as you pay down the loan, you still need to be able to afford to hold onto the property. If the annual income you collect from the property, for example, does not cover the cash payments required running the property (i.e., mortgage payment and operating expenses) then you must decide whether you can afford to “feed” the property out of your personal budget as well as perhaps reduce your ability to invest capital in other markets.

Here are some questions you should ask and be convinced of when contending with negative cash flow. Is the situation temporary? Research the building trends, available financing, employment, demographic, and other economic trends in the area to determine whether they are positive or negative. How are market conditions going to change in the near future? Listen to the experts and try to quantify their predictions. Is market value growth exceeding negative cash flow? In other words, do you anticipate that the property value anticipated over time offsets having to feed the property and you can afford to wait it out?

When real estate investing, it always helps to find indicators that demonstrate a trend. If they are positive and appear promising (even in a slow market) then you might want to jump in, or in cases where you already are invested in a rental property you may wait out the market (if you can afford to); otherwise, don’t make the investment or (if you already own the property) it may be better to sell and cut your losses.

Here’s to your real estate investing success.

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The Great Potential of Cleveland Investment Property

Though the current economic climate has left many people without homes and jobs, smart and determined real estate investors are finding great real estate deals in the Cleveland housing market.  Our new Cleveland investment property is an excellent opportunity for those that want a great deal of cash-flow and long-term appreciation potential.

All properties are extensively rehabbed with up to $25,000 in work per property.  All properties are tenant occupied and managed by professional management  Properties range from 3 to 5 bedrooms, 1-3 baths, and up to 2 car garages.

Cleveland’s cost of living is 15.5% lower than the U.S. average. It has also been undergoing major revitalization in all sectors.  The Economist has repeatedly voted Cleveland as one of the most livable cities, not only in the U.S., but in the world.

If you’re serious about beating the hard economy and making a great investment in cash-flow real estate then you should evaluate our latest offering of Cleveland investment property.

© 2010 Marco Santarelli

Norada Real Estate Investments

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