Texas Mortgage Blog

Houston and Dallas Hard Money Lenders Cont.

If you're dealing with a top tier hard money lender (i.e., Zeus Mortgage) then you should stay away from deals that they won't approve. Typically, these hard money lenders are in the business of lending money and not owning real estate, so they evaluate each deal on the premise that YOU MUST SUCCEED.  If not, they will then own the property and that's not what they do.  There are some hard money lenders who are your lender AND your competitor.  They are lenders and they buy property.  Obviously, there is an inherent conflict of interest here. 

New Investor Starting with OPM

As a board member for The Realty Investment Club of Houston (The RICH Club) I get copies of the posts that are presented on the http://www.richclub.org Forum which is under the Members Only section of the site.  Here is a post that I recently responded to that I think you might be interested in. 

"Hello everybody,

       I'm a new member to the club. Freshly coming out of an investing class, wanting to know which is the best way to start in real estate investing with little or no money using OPM method?"

                                                       

The Wealth Seminar - Create It, Leverage It, Protect It!

You're not alone if you made a resolution to save more, to make more, or to do more with your finances in 2007.  You're not alone if you haven't given it your best effort.  You're not alone if you're trying to figure out how to get started, how to get to the next level, or how to protect everything you've accumulated. 

The good news is that you don't have to do it alone.  The bad news is that if you don't attend The Wealth Seminar on February 27th then you will be alone because everyone else will be there.

Tax Implications of Negative Amortization

If you've been considering implementing Negative Amortization into your Mortgage Plan then you are probably wondering the same things:

"What are the tax implications on negative amortization? If you are paying less than interest only and your home mortgage increases can you still write off your depreciation? Can you write off depreciation on your home or just investment property? Let me know."

Valentine's Day Gift Ideas

If you are looking for last minute Valentine's Day gift ideas.. Don't go to Nordtrom or Macy's or call 1-800-Flowers and spend your hard earned discretionary income on a disposable or meaningless gift like flowers or diamonds, this cupid would suggest giving the gift that keeps on giving... And no, I'm not talking about Victoria Secrets either.   

Foreclosure Tsunami Forecasted

COLLEGE STATION (Real Estate Center) – Based on results from its recent mortgage study (see article), the Center for Responsible Lending (CRL) has predicted that one out of five subprime loans issued during 2005 and 2006 will fail, resulting in foreclosure for millions of American homeowners.

Why do Wholesalers take the "whole" profit?

Here is a recap of a question I received from an investor regarding wholesaling:

“I have been investing for 6 months.  I am considering fixing and retailing properties.  My problem is that wholesalers seem to be pushing properties with no profits.  After I buy a house, refurbish it, and list it for retail there’s nothing left for me.  Where is there any profit for me after I pay 6% to realtors and the 30% Uncle Sam wants for his short-term capital gains tax?  I was taught several years ago to use the 70% rule minus any repairs… is this outdated?  I guess I still believe anything that sounds too good to be true probably is, and I have a bad, possibly ignorant, bias that there are many wolves looking to feed on the new meat in this game.” 

Creative Investor Financing

Deciding whether you are a real estate investor or in the business of real estate, there is a key difference, will determine which financing options are optimal to your situation.  Financing options and market changes are not a necessary evil.  They are a key component to your success which, if ignored, will cause you to lose profits and jeopardize your investments. 

Stop Foreclosure Doomsday

The foreclosure naysayers and doomsdayers are making the impact worse then it is.  You don't have to believe the hype.  Yes, there will be some fallout but nothing like they are anticipating.  A majority of the homeowners who purchased their home using ARMs (Adjustable Rate Mortages) are not going to be shocked when all of a sudden it starts adjusting.  They either purchased the house this way because they had no choice (subprime) or because they wanted to take advantage of the low rates at the time. 

Paying Off Your Mortgage Early - Bad Idea?

For years, banks and financial advisors have been recommending that you pay extra cash into your mortgage, to cut down the huge interest amount and reduce the period over which you pay back the loan. But is that the best strategy?