When 'overnight' = 30-60 days...

The Lazy Investor
The Mortgage market has changed - again... At least, around buying properties in Las Vegas. This information is useful for anyone that experiences a rapid influx of property buying, as is happening in several areas of the country.

This issue has hit Nevada first, but will likely bloom into the entire country soon.

Getting a loan today for a property in the Vegas Valley is tough, and certainly if it is an investor loan.

This is due to a variety of reasons, but the effect is that new mortgages are taking anywhere from 45-60 days most of the time, and occasionally 30-45 days - if you are 'lucky'.

The result of that causes a difficult situation for Real Estate investors (and has an effect on homebuyers, too).

Investors trying to make a deal with a Seller often must include 'fast close' as one of the terms in the agreement. The Seller will accept the lower offer the Investor must make in exchange for moving quickly. It has been the 'rule' forever...

In today's market, though, the Investor cannot move quickly if (s)he is trying to put a new loan on the property - certainly not when the Investor is looking for a 90%-100% loan.

If the Investor puts a substantial amount of CA$H of their own into the property, there are some considerations and the mortgage companies tend to move more quickly.

Therefore, the 'secret' to moving into properties in such a market is to have a substantial down payment.

But, how do you get a substantial down payment?

That's the rule of investing! You must build that capital from other deals!

Oh, I know - you wanted to get RICH in Real Estate overnight, right? Well, you see, that happens very rarely - it was possible when the 'wave' is first forming, as it is rolling in you can ride it for a short while.

The smart investor remembers to take the CA$H from all these 'easy' deals and put it aside, back into the business - not living off it!

That way, when the market changes (as it will, I assure you...), the investor is ready for the next 'wave'.

The simplest way to keep this money separate? Create a separate business entity where you keep all the big cash in a separate bank account. Of course, this is better for bookkeeping and income tax planning, too.

By keeping your wealth building separate from your living expenses, you can create massive wealth very quickly.

An "INSIDER TIP" - Don't be too quick to become a 'full time' investor! By keeping your current job for a year or two while you are building your business, you maintain your excellent credit rating as an employee while building credit references for being in business for two years or more.

It is the way the 'system' of credit works - live within their guidelines and you'll get your loans done more quickly. This is NOT one of the places you can do a lot of 'creative' things! Sometimes, we have to play by their rules - and when it comes to those that have the money, it is always the 'Golden Rule' - those that have the money MAKE the rules!

Happy Investing,

Steve