Positive gearing
Positive gearing is state when amount of income exceeds the borrowed amount invested in income producing assets. Positive gearing also occurs when the income balances the borrowed amount. The rent covers all costs, including the mortgage, insurance,.
"Let me know, How can I help you?"
How can I help you?
Management Shake-Up for Sharper Image
Specialty electronics retailer Sharper Image (SHRP) is in the news today; the firm said its chairman and chief executive officer, Richard Thalheimer, would vacate his post amid slumping sales numbers...(Read More).
Lease-Option Caution Signal
By: Mark Walters
Why are real estate investors having so much success offering "rent to own" homes?
Lease-options offer home ownership opportunities to folks with little cash and not so hot credit.
Oh boy, there are plenty of those around.
Both parties in a lease-option deal are counting on the buyer being able to qualify for a home loan before the option expires.
The investor wants to collect his profit when the optionee buys. The optionee wants to own the home.
During the lease period the renter/optionee must be working to improve their credit score to the point where they can qualify for a loan and buy the home.
Even though there is plenty of sub-prime loan money floating around at the present time... the lease-option method of acquiring a home seems to appeal to many.
In our own investing program.... Before we accept someone for a lease-option deal we have them interviewed by our friendly loan broker. He gives us thumbs up or thumbs down on whether our prospective buyers has a chance to qualify for a mortgage loan during the next 12 to 24 months.
It would be unethical and dishonest to enter into a lease option deal with a couple whose credit could never be cured even with a miracle drug.
We are not aware that it has happened, but we fully expect to see a lawsuit filed against some careless investor who does a lease option deal with someone whose credit is beyond redemption.
That renter/optionee has been lead to believe he can buy the home and when he finds out he can't we are sure some hungry lawyer will rush to their rescue.
We can visit that investor in jail and bring him a copy of a "no money down" book with a file hidden inside.
About the Author
Mark Walters is a real estate investor and author. His published works can be found at http://www.CashFlowInstitute.com
Understanding The Basics Of Fractional Ownership
Part 1 In A Three Part Series
We all dream of having a home away from home, that beachfront property or ski getaway we so deserve. The concept has understandably become part of the American dream. Unfortunately, statistics show that those of us who have a vacation home rarely have the time to use it [...].
|
