Myth #1: I need a 20% down payment to buy a home. For the last three years, first-time homebuyers’ median down payment was just 6%. In 2015, repeat homebuyers’ average down payment was 14%. That’s thanks to programs such as conventional mortgages requiring less than 20% down; FHA loans requiring a minimum 3.5% down; plus
Why Invest in Real Estate? Investing in real estate is growing in popularity and is widely considered to be a better choice versus stocks when it comes to return on investment (ROI). People also enjoy control over their cash when investing in property. As the landlord, you can choose whether to upgrade a property, raise
The lease option can be a powerful strategy in real estate—but it also comes with its challenges. 1. The Due-on-Sale Clause You’ve probably heard about due-on-sale clause before, but just so we’re all on the same page, let me give you a brief description of what it is. In nearly every mortgage paperwork, there is a
1. Flipping is speculative, and that makes it no better than stock market investing. You see, any time that you buy an asset with the intention of making money when you sell that asset, you are not really investing – you’re speculating.
1. Cash Flow If you’re holding real estate as an investment, you will have tenants. Each month they will pay you rent. Let’s say that you own a rental house and get $1,500 per month in rent. Over a year, that is $18,000 in income.