Posts by Justin Ford
What Warren Buffett Can Teach You About Real Estate
“The investor of today does not profit from yesterday’s growth.” – Warren Buffett Warren Buffett didn’t make the bulk of his money by being a great investor. That was just the first part of his success. If that had been the extent of it, he might have a paltry $100 million or so today .…
Read MoreTurn $1000 and a Weekend of Work Into $10,000
“With every project you do, you bring out a part of yourself, and it seems to be quite a good way of expanding a person.” – Kate Beckinsale If you’re considering putting your house on the market, make sure you know how to get the most bang for your home-improvement buck. A $1,000 investment…
Read MoreYour Local Real Estate Agent: Friend or Foe?
“Donald Trump made $375,000 for each of the 16 episodes of “The Apprentice” — a total of $6 million. Here’s what he had to say about it: “That may sound like a lot of money, but real estate is still better.” As a real-estate investor or a homebuyer, you want to buy a property at…
Read MoreWill You Be Protected When The Real-Estate Bubble Bursts?
I love investing in real estate. It’s a fair amount of work, but I enjoy just about every aspect of it. I’ve been fortunate enough to realize triple-digit profits on properties several times in under a year — as the result of leveraged appreciation, net rents, and amortization. On other properties, I expect to get…
Read MorePut Down 3% and Get 100% of the Profits
When you’re a real-estate investor, you’re essentially in the business of finding investors to back your projects. Those investors are lending institutions or private lenders. They receive interest payments from you and, initially, loan fees. You get to keep the profits. This is what is called “positive leverage.” It means you can ratchet up your…
Read MoreHow to Save Hundreds with a 5-Minute Phone Call
“You’ve got to do your own growing, no matter how tall your grandfather was.” – Irish proverb I received a notice last week from a “mortgage service corporation.” They told me that by switching to twice-monthly mortgage payments, I could ultimately save tens of thousands, perhaps hundreds of thousands, of dollars. And the best part?…
Read MoreAre You Paying Too Much in Property Taxes?
If you make one of the following four common mistakes, chances are you’re paying more in property taxes than you should: 1. Not properly “homesteading” your property with the local tax authorities. “Homesteading” is basically the process of letting the county know that the property is your primary residence. You do that because in…
Read MorePay a Good Price for Every Property You Buy
In Message #993, I discussed several techniques for financing low-money-down real-estate purchases. Today, I’m going to describe one technique that will help you quickly determine how much a property is worth. Use it and you’ll never have to rely on a broker’s potentially inflated figures or worry about overpaying. It’s best to determine your own…
Read MoreCreative Techniques for Financing Low-Money-Down Real Estate
“I’d rather be a pimp with a purple hat . . . than be associated with banks.” – Pete Zamarello (real-estate developer) A small but growing minority of major lenders will lend you 90% on an investment property. Usually, this will come in the form of two loans. The first mortgage will be for 80%…
Read MoreCan You Buy an Investment Property with No Money Down?
“A bank is a place that will lend you money if you can prove that you don’t need it.” – Bob Hope Buying investment property with no money down is possible, though it s by no means common. Nor is it easy. Probably the most common type of “no-money-down” purchase is when investors use credit…
Read MoreThe Hidden Danger of Negative Amortization
“The cautious seldom err.” – Confucius I’ve bought properties with fixed-rate, adjustable, assumable, 30-year, and 15-year mortgages. They all have their plusses and minuses. But right now, with interest rates rising, ARMs (adjustable-rate mortgages) are soaring in popularity. So it may be a good time to spell out some of their advantages — and warn…
Read MoreReal Estate: Be a Sharp Investor First, A Sharp Borrower Second
“Genius is the ability to put into effect what is in your mind.” – F. Scott Fitzgerald (“The Note-Books,” The Crack-Up, 1945) Forbes published its first list of America’s Richest People in 1982. At the top of that list was a man named Daniel Ludwig. You’ve probably never heard of him, but 20 years ago…
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