Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.
Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment.
An investor today has a hard job finding a return on investment that compensates an investor for risk. In fact it appears there is no relationship between return interest rates and risk. In addition, if you are trying to live on the income generated by your investments, there is no return at all after subtracting taxes and inflation from your return.
What may be just right for retirees is hard money lending. A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk, but the loans have shorter maturities. Most hard money loans are secured by a specific property and the loan to value is less than 70%. These projects last from a few months to a few years and are secured by the property.
The qualifying criteria for a hard money loan varies widely by lender and loan purpose. Credit scores, income and other conventional lending criteria may be analyzed. However, most hard money lenders primarily qualify a loan amount based on the value of the real estate being collateralized. Typically, the biggest loan one can expect would be between 65% and 75% of the property value. That is, if the property is worth € 100,000, the lender would advance € 65,000 – € 70,000 against it. This low LTV (loan to value) provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.
We are a rapidly growing company and see the opportunities in Portugal, Algarve. We are seeking hard money-lenders to provide short-term financing for periods usually less than one year. We offer hard money lenders flexible terms and the returns are higher than typical banks offer for savings. If you would like specifics about projected returns to hard money lenders, please call us to discuss the kinds of deals we offer.
FIMO FINANCE Property Group is here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 0041 265 880 018 to let us know what YOU need help with!
3 Reasons why you should invest in real estate still in 2018
The real estate market is a great option for those who want to start investing and also for those looking to diversify. Investing in real estate is safe, profitable, and offers great opportunities.
A well located property can be the opportunity to have the dreamed up holiday home, near the beach, for example, to spend a pleasant time and rest with the family.
1.Investing in Real Estate is safe
Investment in the real estate market is considered by many to be one of the safest types of investment. Mainly because, when buying a house,apartment, commercial space or land, you are acquiring physical assets, that can not be easily stolen, as with goods such as cars,art or jewelry.
In addition, investing in real estate also provides more security for those who have or plan to have a family and are thinking about the next generations. Houses and apartments can easily become in the future as a source of income.
Why now?With the current worldwide economic instability, keeping a saving account in the bank may not be the best option. The best alternative will be to go for investments like real estate, which can not be confiscated or suffer short time market flutuations, such asshares.
2.Good profitability possibilities
Finding the right property in the exact location requires research and analysis and it is therefore advisable to find a suitable company with market experience in order to help you to find the best opportunity avoiding headaches during or after the acquisition
Profitability and rentability are great reasons to invest in real estate. When choosing a property in an area with high valuation rates, the tendency is that, over time, the value of the property increases steadily and significantly.
Over the years,you can make a good profit - in some cases even more than100% - without having to worry about market fluctuations.
3. Seize opportunities
It is very likely that you have already searched real estate websites and noticed that the portfolio of the best real estate counts, more and more, with some opportunities not to be missed and with great sales values. This applies to both new and used real estate properties, whether they are already valued or rising.
The time to invest is now! If you leave it for later, chances are that the opportunities will disappear from the market.
So, take the opportunity to search the best real estate portfolios. You will surely find an option that meets your needs, requirements and budget.