Addicted to PROPERTY - Why I CANNOT Stop and Why YOU NEED TO Start

The All-Money-Down Technique

Just how does the all-money-down technique work by purchasing a home with cash? For starters, i want to repeat that I must say i didn't have any cash, but I had a significant quantity of equity from Terry's home and many homes that I owned come up with to give me a substantial cash deposit. Banks and mortgage companies alike will accept money from a home-equity credit line as cash to get a home. At least they did in 1997 under the financial guidelines of the day. What you must remember about mortgages and lending is that the rules change constantly, so this technique I used in 1997 may or may not be able to be utilized in the future. Whether it's or neglects to be utilized again doesn't really matter to me as I think that there will be a way to buy real estate with limited money down sooner or later. There will always be a technique to obtain real estate but just how which will be done in the future I'm not completely sure.

I began purchasing homes in the Mayfair section of Philadelphia with the costs in the $30,000 to $40,000 per home price range. I would purchase a home with three bedrooms and something bathroom on the next floor with a kitchen, dining area, and family room on the first floor and a basement. What we call a row home in Philadelphia would consist of a porch out front and an outdoor the width of the house. Most row homes in Philadelphia are significantly less than twenty-two feet wide. For  San Diego homes for sale  of you that are not from Philadelphia and can't picture just what a Philadelphia row home appears like, I suggest you watch the movie Rocky. Twenty-two homes on each side of each block will really test thoroughly your ability to be considered a neighbor. Things that will usually cause an argument together with your Philadelphia neighbors often stem from parking, noise your kids make, where you leave your trash cans, parties, and the appearance of your home.

In 1998 my girlfriend and I moved in together and to the suburbs of Philadelphia called Warminster. After living on a street in Tacony, similar to Rocky did, I really looked forward to presenting space between my home and my next-door neighbor. I told Terry never to even consider talking with the people who lived nearby to us. I told her if one of them comes over with a fruitcake I will go on it and punt it such as a football directly into their backyard. I really believe I was suffering from Philadelphia row home syndrome. My new neighbors in Warminster turned out to be wonderful people, nonetheless it took me eighteen months before I was ready to learn that.

And that means you just bought your row home for $35,000 in Mayfair, and after $2000 in closing costs and $5000 in repair costs, you're a good tenant who would like to rent the home. After renting the house with a positive cashflow of $200 per month, you now have an outstanding debt of $42,000 on your own home equity credit line that will must be paid. When purchasing the house, I did not get a mortgage when i just purchased a home for cash as it is said available. All monies I spent on this house were spent from the home-equity credit line.

The move now could be to repay your home-equity line of credit to help you go do it again. We now visit a bank with your fixed-up property and tell the mortgage department that you would like to do a cash-out refinancing of your real estate investment. It helps to explain that a nearby you purchase your property in should have a wider range of pricing because the neighborhood of Mayfair did in the mid-90s. The pricing of homes in Mayfair is quite unusual as you would visit a $3000 difference in home values from one block to another. This is important when doing a cash-out refinancing because it's pretty easy for the bank to note that I simply bought my property for $35,000 regardless of the fact that I did so many repairs. I could justify the fact that I've spent additional money on my home to fix it up, and by putting a tenant in, it had been now a profitable little bit of real estate from an investment standpoint.

EASILY was lucky like I was many times over achieving this system of purchasing homes in Mayfair and the appraiser would use homes a block or two away and come back having an appraisal of $45,000. In the past there were programs allowing an investor to purchase a home for 10 percent down or left in as equity doing a 90 percent cash out refinance giving me back roughly $40,500. Utilizing this system allowed me to obtain back a lot of the money I put down on the property. I basically paid just $1,500 down for this new home. Why did the mortgage companies and the appraisers keep giving me the numbers I wanted? I assume because they wanted the business. I would only tell the lender I need this ahead in at $45,000 or I am just keeping it financed as is. They always seemed to give me what I wanted within reason.

This whole process took three to four months during which time I might have saved several thousand dollars. Between the money I saved from my job and my investments and cash out refinancing, I had replenished most or most of my funds from my home-equity line of credit that has been now almost back to zero to begin the procedure again. Which is exactly what I intended to do. I used this technique to purchase four to six homes a year utilizing the same money to purchase home after home after home over and over again. The truth is, the technique is a no-money down or little money down technique. At that time maybe I had $60,000 in available funds to utilize to buy homes from my HELOC, so I would buy a home and then replenish the money. It had been a terrific technique that has been legal, and I possibly could see my imagine being a real estate investor full-time arriving at an eventual reality despite the fact that I wasn't there yet.

During the years from 1995 to 2002, the real estate market in Philadelphia made gradual increases of maybe 6 percent as each year went on. I begun to track my net worth that has been completely equity, meaning I had no other styles of investments to look at when calculating my net worth. In most cases, the first five years of my property career did not go well because of the bad decisions I made purchasing buildings and the decline on the market. Furthermore, my lack of knowledge and experience in repairs made it a rough. The second five years of my property career that I simply finished explaining didn't make much money either. I supported myself primarily through my career as a salesman, but I possibly could definitely see the writing on the wall that later on real estate would be my full-time gig.

Realty Professionals of America

I own an office building that has a property company as a tenant called Realty Professionals of America. The business includes a terrific plan where a new agent receives 75 percent of the commission and the broker gets only 25 percent. If you don't know it, this is usually a pretty good deal, especially for a new agent. The company offers a 5 percent sponsorship fee to the agent who sponsors them on every deal they do. If you bring someone who is a realtor in to the company that you have sponsored, the broker will pay you a 5 percent sponsorship out from the broker's end so that the new realtor you sponsored can still earn 75 percent commissions. As well as the above, Realty Professionals of America offers to increase the realtor's commission by 5 percent after achieving cumulative commission benchmarks, up to maximum of 90 percent. Once a commission benchmark is reached, an agent's commission rate is only decreased if commissions in the next year do not reach less baseline amount. I currently keep 85 percent of all my deals' commissions; plus I receive sponsorship checks of 5 percent from the commissions that the agents I sponsored earn. If you want to know more about being sponsored into Realty Professionals of America's wonderful plan, please call me directly at 267-988-2000.

Getting My PROPERTY License

One of the things that I did in the summer of 2005 after leaving my full-time job was to create plans to get my real estate license. Getting my real estate license was something I usually wished to do but never appeared to have the time to accomplish it. I'm sure you've heard that excuse a thousand times. People always say that they are going to take action soon as they find the time to do it, but they never appear to discover the time, do they? I do not let myself make excuses for anything. So I've composed my mind before I ever left my full-time job that certain of the first things I would do was to get my real estate license. I enrolled in a school called the American PROPERTY Institute for a two-week full-time program to acquire my license to sell real estate in hawaii of Pennsylvania. Two terrific guys with a world of experience taught the class, and I enjoyed the time I spent there. Soon after completing the course at the American Real Estate Institute, I booked the next available day offered by the state to take hawaii exam. My teachers' advice to take the exam immediately after the class ended up being an excellent suggestion. I passed the exam with flying colors and have used my license often since to buy real estate and reduce the expenses. If you are going to be considered a full-time property investor or a commercial property investor, you then almost have to get a license. While I know some individuals who don't think this, I'm convinced it is the only way.

I worked on one deal at $3 million where the commission to the buyer's real estate agent was $75,000. By enough time my broker took a share, I walked with $63,000 commission on that deal alone. With the average cost per year to be a realtor running about $1200 each year, this one deal alone would've covered my real estate license for fifty-three years. Not forgetting all the other fringe benefits like access the mls offered too many realtors in this country. While you can find other ways to get access to the multiple listing services or another program similar to it, a genuine estate license is a great way to go.

A few of the negatives I hear over and over again about having your real estate license is the fact that you must disclose that you will be realtor when investing in a home if you're representing yourself. Maybe I'm missing something, but I don't see this as a poor at all. If you're skilled in the art of negotiation, it's just another hurdle you need to deal with. I suppose you could result in a lawsuit where a court of law could assume as you are realtor you have to know each one of these things. I don't spend my life fretting about the million ways I can be sued any more than I worry about getting hit by way of a car every time I cross the road.

The Addict
From his first investment property over twenty years ago to his relentless seek out the next good deal every day, Falcone is a non-stop real estate investment machine!

Get Addicted
Sometimes addiction is an extremely positive thing. In this book Phil Falcone, the ultimate real estate addict, will show you how to achieve amazing success as a genuine estate investor:

� Delve into the facts of actual deals he negotiated and learn why his methods were so effective
� Discover why his residential to commercial real estate strategy will generate ultimate wealth
� Understand how he used apparent liabilities (OCD, insomnia, and workaholic behavior) to greatly help him achieve his goals
� Explore why he can't stop investing in real estate, and how you can start controlling your personal financial destiny through property