Investors ... Stay Informed on the Local Market

FHA has rescinded its 90 days anti-flipping rule for 1 year!

Short sale and REO flipping are becoming more and more accepted by the government and major
lending institutions.  This is evidenced, among other things, by Freddie Mac’s recent bulletins, updated credit policies by
Wells Fargo to allow for C buyer financing, and revised title bulletins stating that the C purchase price does not need to be revealed to the A lender as long as certain disclosures are made.

The FHA has rescinded its 90 anti-flipping rule and will, for a period of 1 year, allow FHA buyers to obtain loans
on properties that have been recently purchased by investors.

Click here for the official announcement.

There is a lot of free information available to you about buying, selling or investing in Downtown Minneapolis condos. For complete information about the Downtown Minneapolis condo market including current Minneapolis condos for sale, values, and more please visit the most complete website online dedicated to everything Downtown Minneapolis condos at www.LivingInDowntownMinneapolis.com. Contact me with any of your condo or mortgage related questions today. Call 612-735-6834 or email mike@mikeweiland.com.

P.s. For instant and unlimited free search of Downtown Minneapolis condos click here to begin your search now!

Tips to buy REO Foreclosures, by Downtown Minneapolis Foreclosure Expert Mike Weiland

Buying foreclosures can sometimes be like chancing upon a bounty. Prices of many of the REO foreclosed homes are lower than the market price. So obviously, there is fierce competition to grab that bank-owned property. The bank scrutinizes all the offers and selects the best one as per their choice.

So, securing a REO offer is not the easiest of tasks. But, a systematic approach can go a long way in securing the deal. They can be as follows –

1. Finding out the original price – The actual price of the property would provide with a benchmark to delineate the offer you would make. The purchase price, the loan amount, the number or the total amount of mortgage payment already done and the remaining balance are the factors basing upon which you would have to fix your final offer.
2. The market value of the property – At times, the original purchase price has little bearing on the real market price of the property – such is the uncertainty of the real estate market. In such cases, making a logical study of the selling prices of the homes that are similar in size and the features in the locality, would give you a perfect idea to formulate your offer.
3. Scrutinize the REO listings – Find out the past history of the listings of the agent and try to find the out the differential amount with regards to the listing prices and the eventual selling prices of the properties. You adjust your price just marginally above the expected selling price.
4. Cash offer – The banks usually prefer cash offers. Hence, if possible try to make the payment by cash.
5. Take into account the number of offers – The pricing is also dependent upon the number of offers that have been made for the property. If there are only a couple of applications, you may place a low offer and settle for a higher one if you expect competition.
6. Approval of the owner – You should approach the owner of the property beforehand and get his approval letter. Don’t expect the bank to do all these for you.
7. Inspection – The inspection and necessary repair works can be talked after the deal is over. The bank staff usually loath such discussion during the negotiation stage.

These are some of the tips that would help you in buying REO foreclosure.

There is a lot of free information available to you about buying, selling or investing in Downtown Minneapolis real estate. For complete information about the  Downtown Minneapolis real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Downtown Minneapolis real estate. So please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 612-735-683 or email me at mike@mikeweiland.com.

P.s. For instant and unlimited free access to Downtown Minneapolis Minnesota mls property search click here to begin your search now!

Top 3 Mistakes Downtown Minneapolis Investors Make when Buying Foreclosures, by Investing Expert Mike Weiland.

Foreclosures in Downtown Minneapolis have the reputation of being very profitable investments for real estate investors. While that can be true, they can also be very dangerous investments where you can lose a lot of money. In this article, we'll go 3 of the most common pitfalls Downtown Minneapolis investors make, so you can avoid these mistakes if you decide to invest in foreclosures.

Pitfall #1 - "All Foreclosures are Good Deals"

This simply isn't true. Foreclosures are often in terrible condition. For that reason, banks and the government are often willing to provide major discounts on the property's price. Even then, however, the property may not be a great investment.

It's only beginning investors that think all foreclosures are good deals. Experienced investors know that just like anything else, finding a good foreclosure property takes time, expertise and research.

Pitfall #2 - Jumping into Fixer Uppers

We've all heard of people who've made millions buying shambled houses, fixing them and then "flipping" them. While this can be a very profitable model, it also has its pitfalls.

The biggest pitfall is beginning investors who jump in to the Downtown Minneapolis fixer market without the expertise to back it up. Unless you can predict how much your repairs will cost, how much you can sell the property for and then work your way backwards to what the selling price must be in order to be profitable, then you're not ready for a fixer upper.

There are many profitable deals that don't require the level of expertise that a fixer does. For a beginning investor, it's usually better to start with those deals.

Pitfall #3 - Not Performing Good Research on Foreclosures in Downtown Minneapolis

Good research is a key component to being profitable in the Downtown Minneapolis foreclosure market. You must know how much your property can sell for in the market. You should know what the trends in the area are, including community projects, new buildings that are being built, crime rates, etc.

You should also be sure to get a home inspection. If you're bidding on multiple properties in Downtown Minneapolis at an auction, it's important that you actually step foot in all the properties you plan on bidding on before you bid on them.

These are 3 of the more common pitfalls that Downtown Minneapolis investors tend to fall into. By avoiding these pitfalls, you'll set yourself ahead of most beginning foreclosure investors in Downtown Minneapolis

There is a lot of free information available to you about buying, selling or investing in Downtown Minneapolis condos. For complete information about the Downtown Minneapolis condo market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Downtown Minneapolis condos. So please feel free to contact me with any of your mortgage questions and I will me more than glad to answer your questions. Call me on my cell at 612-735-6834 or email me at mike@mikeweiland.com.

P.s. For instant access and unlimited free Downtown Minneapolis condo search complete the form below to begin your search now!

What You Need to Know About Getting a Real Estate Investing Loan in Downtown Minneapolis, by Downtown Minneapolis Real Estate Expert Mike Weiland.

Getting a real estate investing loan is quite different than getting a residential property loan. This is especially the case with commercial property loans. How can you apply for and qualify for an investing property loan? Read on to find out.

There are two types of investing loans. There are Non-Owner Occupied (NOO) loans which apply to real estate purchases of 4 units or less. With a NOO loan, the loan process is pretty similar to that of a residential loan. The most important factors are your credit score, Debt to Income ratio, etc.

The second type of loan is the commercial real estate investing loan. This type of loan applies to any loan for buildings with more than 4 units. The process for getting approved for these loans is completely different.

First off, your personal credit as an investor has very little bearing on a commercial property loan. Even someone with poor credit can qualify for a commercial property loan if the rest of the numbers look right. Often time’s lenders won't even pull your credit report.

When considering a commercial property loan, lenders rely much more heavily on the "Three C's of Credit." These are:

Character - What is your investing history? How reliable are you to repay the loan?

Capacity - Rather than looking at your personal income, the primary factor will be the income of the commercial property. How does the income from the property look, can it pay for the loan and then some?

Collateral - Finally, if you should default on the loan, how difficult will it be for the lender to get their money back? What is your property worth on the open market or at auction? How easy or difficult is it to liquidate the property?

If you can prepare a good case for your loan with the Three C's in mind, you're very likely to get your commercial loan approved.

You now know about the two types of real estate investing loans, the difference between the two and how to qualify for each type of loan.

There is a lot of free information available to you about buying, selling or investing in Downtown Minneapolis condos. For complete information about the Downtown Minneapolis condo market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Downtown Minneapolis condos. So please feel free to contact me with any of your mortgage questions and I will me more than glad to answer your questions. Call me on my cell at 612-735-6834 or email me at mike@mikeweiland.com.

P.s. For instant and unlimited free access to Downtown Minneapolis condo search click here to begin your search now!

Where to Get Money for Investing in Downtown Minneapolis Condo - By Mike Weiland, Downtown Minneapolis Investing Expert

Beginning investors often times don't have the money or expertise to find the money they need to invest in properties they find. Fortunately, there are many sources of money for good investment deals. Where can you find these sources? Here we'll cover some of the more popular sources of funding for real estate deals in Downtown Minneapolis.

Hard Money Lenders - Hard money loans are short term loans with very high interest rates and upfront points. You can expect to pay as much as 3%-10% in upfront costs to secure a hard money loan. However, for short term projects, these can be a great source of cash.

Angel Investors - If you truly have a winner deal on your hand, other experienced investors may be willing to lend you money in exchange for part of the profits. It helps to join real estate investing groups and make contacts so that you can find angel investors.

Non-Owner Occupied Loans - These are loans from traditional lending institutions that work similarly to residential loans. They look at your credit and debt to income ratio to determine if you qualify for the loan. NOO loans apply to investment properties of 4 units or less. Be aware that tax laws for NOOs differ from a standard mortgage loan.

Commercial Property Loan - These are loans from traditional lending institutions that work very differently than a mortgage. These loans are based completely on the property and your credit rating is not taken into consideration at all. The primary consideration is whether or not the property can pay for the loan, your character as an investor and the value and liquidity of the collateral.

Seller Financing - Seller financing is basically when you have the seller finance the property rather than have a bank finance the property. Seller financing is negotiated on a case by case basis.

As you can see, there are many different ways to finance an investment property. If the deal is truly a good deal, there should be no shortage of options for you. After all, investors are out to make money.

There is a lot of free information available to you about buying, selling or investing in Downtown Minneapolis condos. For complete information about the Downtown Minneapolis condo market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Downtown Minneapolis condos. So please feel free to contact me with any of your mortgage questions and I will me more than glad to answer your questions. Call me on my cell at 612-735-6834 or email me at mike@mikeweiland.com.

P.s. For instant access and unlimited free Downtown Minneapolis condo search click here to begin your search now!

So You're Looking for Downtown Minneapolis Short Sales

You will likely come across dozens of Downtown Minneapolis properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.”

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