No Money Down How To Buy Property With Nothing Down

Writen by Andrew Larder

If you have ever watched TV after about 11:30 at night, you’ve seen people talking about courses on buying real estate with no money down. They show vacation paradises, gorgeous girls, fancy cars, and huge mansions. All of this is promised to you if you buy their course on making a million with nothing! If you want you can spend “only three payments of $99.99″ to find out about this exciting area…OR…I’ll just tell you for FREE!

One thing I must mention first, however, is that ANY information, combined with NO action, produces NO result. If I came over to your house and showed you everything in person and answered all of your questions, and then you did NOTHING…..it was a waste of time. Yours and mine!! On the other hand, if you combine information with hard work, persistence and, most of all, GUTS, you will be successful, whether you buy the courses, read the books for free at the library, or get the information from me, right here!

I mentioned GUTS because there’s a price to be paid for everything. If you had a million dollars, you could buy an apartment building without hardly any difficulty. Just pick out one that you liked, had a good return, and passed a building inspection.

If you DON’T have a million dollars, what are you to do? Well get ready for some hard work, searching for the right deal. Get ready to have a whole slew of offers rejected, and maybe even laughed at. Get ready to hear some pompous real estate agent tell you (as one told me) “Son, I’ve been in the real estate business for thirty years now, and let me tell you, there’s no such thing as a no money down deal.” Get ready to work on a deal and spend time on it only to have it collapse.

You’re going to put in your down payment in the form of “brain sweat equity”. You’re going to pay by acquiring more knowledge than others in the area of creative real estate, and by searching long and hard to find MOTIVATED sellers, ones who want to get rid of their properties desperately and therefore are willing to help you out. Most of all, you’re going to pay by enduring the inevitable “start up glitches” that ANY business or enterprise has. If it was easy to do, then everybody would be doing it, and there would be no properties left! It is this difficulty that makes it EASY, once you know what you are doing!!

OK, so here we go, but first you need to know ONE thing: IN REAL ESTATE EVERYTHING IS NEGOTIABLE!! Let me say that again, because it is the linchpin of the way creative real estate works in real estate EVERYTHING is negotiable!

What does that mean? Are there any boundaries? NO!! Can you get someone to carry an agreement for sale for 25 years with little or no money down and no credit check? YES!! Are there ten ads in the paper offering just such an agreement, or one? Probably none! What does that mean? EVERYTHING is negotiable! If you find a motivated seller, one who is paying every month to own that property, one who doesn’t have the skills to fix it up, one who moved out of town, or the country, then he MIGHT go for it! Notice that I did not say WILL go for it, but MIGHT!

Think of yourself when you had a car that you wanted to get rid of, because it was a piece of junk. If someone approached you and asked “how much?”, you’d say “$1000, firm”. But you knew deep inside that you just wanted to get rid of the headache!! And if you ever had to wait for a month or two with no one buying your car, suddenly you were not quite so firm on the price! And if the alternator had to be replaced before the car could run, pretty soon you just wanted it OUT of your hands!! NOW, you’re ready to accept monthly payments, maybe hold something as security, etc. You just want it GONE!

It is the same with real estate properties! They go from being our pride and joy to an albatross around our necks then we’re ready to do WHATEVER it takes to get rid of it!

These people aren’t going to jump up and down and say “I’m willing to take a no money down deal for my property”! They are going to be depressed, just like the fellow with a clunker in his back yard, sitting there for months. They are going to need some convincing, but if you find the “DON’T WANTER”, the most difficult part is done! Then you make offers, look closely at each property to see if you can make a go of it (that’s a whole other report!) if you can get the property sometimes you don’t want it either! Then it is just a matter of making offers, either in person, or through a realtor, until you find someone who is ready to deal. The first time is the hardest, because no matter how many times I tell you (or the TV guys) that it CAN be done, you are going to think “not for me, not here in __________, not any more, not with my areas laws and zoning regulations, not with my personality, not with my brains, etc.”

Don’t you believe it! Look at all the people in the TV commercials all types and shapes they have ONE thing in common they went out and DID IT!
ALL IT TAKES IS GUTS AND PERSEVERANCE!!

Here’s the “stream of consciousness” of ideas on how to buy with $000.00 down, but keep in mind the whole time that IN REAL ESTATE EVERYTHING IS NEGOTIABLE!

1) The simplest way to buy with no money down is to get the seller to carry an agreement for sale. Monthly payments for 25 years are possible if the seller has no need for the money, and can be convinced to get his 6,7,8% return secured by his house instead of buying a 4% bond.
2) If you have good credit and want to put no money into a property, try a first mortgage, Vendor carries a big second for remainder. Seller gets , say 75%, and carries 25%.
3) Again with good credit, try first, smaller 2nd, and a Personal Line of Credit for remainder especially if the gap is only $10 15,000. This can even work for low priced properties where the first mortgage is combined with a PLC for the remainder be smart enough to go to another bank for PLC and tell them that you’re going to make an invstment with money and don’t tell ANY bank that you’re doing a no money down deal!
4) Payment over time seller wants $5,000 down, for example. How about $400 per month for a year? You’re still paying it, but over time maybe the property will generate enough extra money to pay this!
5) Back taxes I’ve done deals where I’ve taken over back taxes due you can pay them off at your own speed, within reason!
6) Free rent I’ve done deals where the seller had office space in the building and took 2 years free rent as down payment! Can also work for multi family.
7) Upon closing there are adjustments for that months rent close on the 2nd or 3rd to maximize this and for damage deposits, taxes to be paid for the period owned by seller, utility bills to be paid, etc. These can add up to a large amount!
Since the bank starts mortgage payments one month from closing, simply by paying an interest adjustment of 2 weeks allows you to use the first months rent and apply the second months rent to the mortgage payment.
9) Borrow on insurance policy, stocks, bonds, mutual funds, etc. If you allow the bank to secure the collateral they will be very accommodating.
10) Rack up your Visa, Mastercard and American Expres cards. A bit crazy, but I assume its a great investment!
11) Borrow from friends, relatives, boss (holiday pay?) Maybe even cut them in as partners!
12) Partners are a surefire way to get accepted for big bank loans, create enough down payments, etc. Always look for people who are interested in this area, and ask them what prevents them from buying investment properties. If its time, expertise, etc then you have a fit! All that’s preventing you is money and you have found this great property haven’t you?
13) Syndicate a group of people say 9 investors and you get the last tenth for putting together the project they will provide the financial strength for the loan, and maybe even the down payments! Anything is possible, remember? This is a lot of work to find these people, but VERY lucrative! Start with dentists and doctors, lawyers, everyone that you deal with!
14) Rent to buy maybe you make payments for 3 years and then have built up the downpayment meanwhile the property can go up in value, rents rise, and so on.
15) Option to buy Seller keeps title and gets all revenue. You simply pay a sum for the right (make it REALLY legal!) to purchase the property at a certain sum in X years. There could be a trade for this option, example trade an item or service for the option.
16) Lets make trading an item or service for down payment its own idea!
17) Foreclosure property maybe just before it goes into foreclosure you offer to keep up the payments and give seller SOMETHING, SOMETIME for his equity. (In a short while he’s not getting anything!) Lots of work, lots of books and announcement services available.
18) Fix up damaged property work deal with bank example: as is it’s worth $75,000, with clean up and fix up its worth 100,000 bank offers 75,000 mortgage based on future value you have to do fix up similar to sweat equity.
19) Lease property (ie an office building) from owner and sub lease it to tennants must be very legal and usually needs strong rent up effort!
20) Pay someone to cosign for a loan
21) Get realtor to carry his commission as a note they HATE this, but if its needed..
22) Balloon payment nothing down, balance due in three years
23)Private money from mortgage brokers ask them about it! High rate of interest, but..
24) Refinance property either before you assume it, or after
25) Find a partner where he takes writeoff for negative cash flow and you manage property this can even work with buying your personal residence investor is happy with $200 per month negative cash flow in return for your taking care of property, always a tennant (you) and investor splits profit when selling.

That’s going to be enough to start some gears running in your head. The most important part is to keep trying, and to be creative. Combining parts of one idea and another, and always probing for what the seller wants will lead you to solutions. Always probe for ways to make both of you happy. Everyone wants all cash, right now not everyone gets it! Think of the junker car in the back yard and look for ways to HELP the other person they want to sell!

Most of all, keep looking! It is not a failure on your part if someone is clinging to the hope that they’ll get a certain price, or certain terms. If they can great!! If not, check back in a few months. Many properties are still sitting there and with a MUCH more receptive seller after they have the property “sitting in their backyard, rusting” (or racking up negative cash flow and maintenance and property management headaches). Try and try again!

Check online for new info and more opportunities, network with other investors, ads can be used to signal what you are looking to find, partners wanted, etc. Go to your public library for more real estate and business information. Keep your mind working and searching keep looking for properties and more information one idea can be worth a fortune to you go to seminars when they come to your town and the total adds up to the “Eureka!” screamed in the middle of the night.

Buying with a low down payment is obviously much easier than buying with absolutely nothing down, so be sure to save up your money to make it easier for you. Even a no money down deal can require cash for legal fees, closing costs, etc.

Best of luck!

Andrew Larder
Creative Real Estate Investing With Low Or No Money Down
To receive free info on no or low money down real estate investing, send a blank email to: monopolyinvestments@getresponse.com

10 Commandments for First Time Residential Property Investors

Writen by Bob Ward

Potential residential property investors are often bewildered by the wealth of information available regarding property investing, which is often contradictory.

First time property investors should take the following points into consideration before embarking on their property purchase but always check their own circumstances out with their accountant before committing any funds to the project:

1. Rely on the numbers and leave emotion out of the transaction as you will not be living in the property

It’s not critical that you adore the colour scheme, the type of handles on the doors or some other features of the property - the numbers e.g. purchase price, rental return, supply of rental property in the market and potential capital gain, must stack up. These details, apart from potential capital gain, are readily available from real estate agents.

2. Start small time - you will be able to sleep at night that way

Start with a lower priced investment property and a smaller loan. As you will be, most likely, subsidising the loan repayments, there is less pain with a smaller loan if you are not receiving rental income during any period. Being able to sleep at night is always an investor’s objective.

3. Treat your property investment as long term

Unless you have bought a red hot bargain, you won’t be able to achieve substantial short term gains and you need to be able to recover your purchase transaction costs such as stamp duty and legal fees together with your selling transaction costs. Of course, capital gains tax also comes into the equation when you sell. Capital gains tax will apply when you make a profit after owning the property for more than 1 year (from purchase exchange of contracts to sale exchange of contracts)

4. Either buy locally or within driving distance from home

It’s reassuring to be able to regularly see the property and know that it still exists and you are likely to be more familiar with the market. This does not mean that you should necessarily be purchasing the property next door to your own home as it’s advisable that you remain at arm’s length from your tenant and enjoy some anonymity. If you do purchase in an area that you are not familiar with always ensure that that obtain an independent valuation on the property you are purchasing even where you are using your own home as security.

5. Engage the services of professionals

It makes good sense to use the services of an accountant, a lawyer, a realtor and a mortgage broker to assist you in purchasing and managing your residential investment property.

6. Obtain advice from your accountant regarding the name in which the property should be purchased and the loan obtained

This decision can have substantial tax implications and should not be taken lightly.

7. Consider a fixed interest loan when borrowing

It will provide interest rate certainty. Whether you borrow interest only or with principal and interest repayments depends on your own circumstances. Your home loan specialist and accountant should be able to assist you with this decision and whether you borrow on a fixed or variable basis.

8. When selecting a property to purchase look for proximity to transport and amenities and avoid high maintenance features such as a swimming pool or a large garden

It’s important to purchase property that a tenant will be happy to live in. You should try to appeal to the mass market e.g. 3 bedrooms and covered car parking in an area where there is a high demand for and not an oversupply of vacant rental accommodation. When you buy properties, which incorporate a swimming pool or a large garden area, you can count on the fact that the maintenance costs will increase without any increase in rent.

9. Don’t attempt to squeeze the last drop out of your rent

It makes more sense earn a lesser rent but to have long term tenants who will look after the property and treat it as if they owned it. It’s also smart to explore the cost of insurance cover over rental income and property damage.

10. Don’t stop with a single residential invesment property

The first purchase can be a daunting process but the second and subsequent properties are easier to purchase than the first.

Bob Ward, a licensed Australian real estate agent, is a director of real estate training and public relations consultancy, http://www.lot109.com.au Along with his wife, Susan, he’s also a seasoned residential property investor.

Mobile Homes

Writen by Seth Miller

Mobile homes or manufactured homes refer to residential structures that have the ability to be moved from one place to another. Initially called trailer homes, mobile homes have now come a long way. Modern mobile homes are much more intricate and beautiful in their designs. Some newer mobile homes appear no different than traditional brick, cement and mortar homes to the amateur eye.

There are typically two kinds of mobile homes- the singlewide and the doublewide. Singlewide mobile homes are less than sixteen feet in width when assembled, while doublewide mobile homes are more than twenty four feet in width. Singlewide mobile homes consist of single pieces which are transported by means of truck trailers to the site. Doublewide mobile homes have two parts, which are fixed together on site. Some people have reservations concerning doublewide homes, as they believe they are prone to leakages if assembled improperly. However, doublewide homes are very spacious. Triplewide mobile homes are also manufactured, but they are very scarce. A triplewide home is immensely spacious and can provide for as many as five bedrooms and three bathrooms.

Mobile homes or manufactured homes need to meet the standards of the Housing and Urban Development code of the US, popularly called the HUD code. This code was effectuated in June 15, 1976 and it delineated norms to manufacture mobile homes. These norms relate to building standards, fireproofing, plumbing, heating, air conditioning and electricity systems. Apart from these rules, if the mobile home has garages, sheds, etc. then they must meet the codes.

Earlier mobile homes were classified as movable property and taxed as vehicles. This led to a spurt in people buying them, as they saved a lot on taxes. Modifications occurred in the designs of mobile homes, and newer homes are actually permanent structures that remain on one location throughout their lives after being assembled. They no longer have wheels, but can be dismantled and erected at another location if needed. This led to amendments in the taxation process. Today mobile homes are also classified as real properties and taxes are accordingly levied on them.

Mobile Homes provides detailed information on Mobile Homes, Mobile Home Community Parks, Mobile Home Rental Dealers, New Mobile Homes and more. Mobile Homes is affiliated with Motor Home Rentals.

Help Your Agent Show Your Home

Writen by Jeanette Joy Fisher

Once your home has been spruced up, both inside and outside, you’re ready to let buyers begin looking through it. However, since you also have to live in your home during the listing period, it means that you’ll have to get the home ready for showings by agents, sometimes on short notice. Here are a few secrets you use to make your home look its best when you know agents are bringing clients by for a tour.

First, keep your kitchen countertops clear, and keep dishes out of the sink. Both of those situations make a negative impression on potential buyers because they make the kitchen look cluttered and less than clean, even if the rest of the kitchen may be spotless.

Next, go through the house and open all the curtains, shades, and blinds. You want your home to look spacious, warm, and bright, so you want to get as much light into each room as possible. If it’s a nighttime showing, turn on the lights in each room, to make them look inviting and homey. Of course, if you discover that a light bulb has burned out, replace it before the buyers arrive.

If it’s cold outside and you have a fireplace, put a log on to give a cheery, warm feeling to the room. If it’s summertime, the fireplace should be clean. Either way, it shows off the fireplace to its best advantage.

If you have pets in cages, take them to a neighbor during the showing. Some people are turned off by small pets like rats or hamsters, so don’t let those bad feelings taint a buyer’s impression of your home.

It’s also best if YOU can be gone during the showing, if at all possible. That allows buyers to feel free to make comments without having to worry about hurting your feelings. Being able to speak freely is an important part of the home touring process, so don’t stifle it by being home.

If you absolutely must be home for some reason, find one room in the house, preferably a family room, den, basement, or out of the way room, and stay there. The buyers will want to look closely at the kitchen, bathrooms, bedrooms, and master suite, so you’ll want to allow them free access to those rooms.

Try to keep the house picked up and vacuumed as much as possible, to avoid last minute cleaning frenzies when you get a call from an agent wanting to show your home. It will make your life a lot less hectic, and will allow your home to make as good an impression as possible at all times.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher, interior design instructor, helps home sellers with color psychology to make their homes more saleable. Jeanette Fisher, author of interior design, real estate investing, and home staging books teaches home sellers five ways to get more money from their home sale. Home Selling Articles Free home seller’s reports Sell Home Fast.

Three Ways For Buying Foreclosed Real Estate

Writen by Tim Lee

The process of mortgage foreclosure presents three good opportunities for investment Default/Pre Foreclosure, Auction/Sale and the REO.

Buying Default/Pre Foreclosures

The process of buying pre foreclosures involves a direct interaction with homeowner and the lender. The objective here is to make the homeowner win by selling and win yourself by buying the property at a discount.

The whole deal as outlined above could be a great investing opportunity, but, timing and procedure is everything. You could discount the market value on closure anywhere up to 35% on an average. If you act in time and structure the deal properly, you may even get away with a small down payment. The ale agreements can also be tailored to your advantage by keeping them unique and flexible.

The other side could be that the owner is not available to deal. A lot of competition is out there looking to cut you down. Research in the court could be confusing and take up valuable time. Negotiations with lien holders are not ruled out.

Well, you are out there to make a nice and tidy profit and these small encumbrances would not really hurt.

Auction Buying

Buying foreclosed real estate in a court auction could be the most rewarding and the most risky at the same time. The bidding normally involves biding against the lender and other competition. The process of auction is a very fast and normally requires payment in cash within 24 48 hours.

You could get good to excellent discounts and get a wonderful return on investment in the end. By far the best investment, if you do not consider the time wasted on postponed auctions, expensive title searches and risks of improper research.

Buying REO’s

The easiest way to buying foreclosed real estate is buying REO’s (real estate owned). An REO is a category of property where the lender repossesses the property to cut losses and wants to dispose it off for cash, since the lender is not in the real estate business.

The lender is the only lien holder, 90% of the time which means that the REO will have a clear title (saves a lot of cost and heart burn). The property can be assumed free of all liabilities and repairs since the lender has the major interest. The property thus, may be ready for resale once it is purchased although the savings may be small (usually 10 15%).

Buying foreclosed real estate can be a profitable business if you do your homework before you invest and have the right backing of financiers to finance your acquisitions and a good marketing network to attract buyers.

For listings of foreclosed real estates, please visit http://www.real estate foreclosed home.info/

The Bulgarian Property Market

Writen by Surinder Ahitan

The Republic of Bulgaria

Bulgaria is located in southeastern Europe. Situated in the east central portion of the Balkan Peninsula, bordering the Black Sea. Covering an area of 42,823 square miles and is almost rectangular in shape. Its position making it a natural crossroad between Europe and Asia.

It became a communist country at the end of World War II but communist domination ended in 1990. Bulgaria joined NATO in 2004 and is set to join the European Union on January 1, 2007.

Foreign Interest in Bulgarian Property

Foreigners, especially the British, have shown a special interest in Bulgarian property. There are two main reasons for this ever increasing interest. The first reason is the country’s climate and natural surroundings. The second reason is more obviously, the low cost of living in comparison to Western Europe.

Overseas buyers can generally be classified into three groups: those looking to purchase a second or permanent home; those looking for a holiday home with the option of renting it out (buy to let); and those purchasing for purely business purposes for renovate and resell (speculative purchase). Purchase trends show that most buyers are interested in Bulgarian property for sale in the rural areas or apartments situated in popular beach or mountain resorts.

The Bulgarian Property Market

Bulgarian property is extremely good value and foreign investors may stand to profit substantially. In recent years, foreign capital has been a major component in the Bulgarian real estate boom. Although there are admittedly other factors causing the boom such as the low interest rates, the continuous and intensifying flow of capital deserves the bulk of the credit.

The interest in property in Bulgaria is steadily increasing and is expected to further increase as the impending acceptance of Bulgaria in the European Economic Community draws near. According to a Wall Street Journal report, Bulgaria registered the highest rise in its real estate prices (more than in any other country) with a staggering jump of 48 percent.

Property developers believe that the peak is yet to come as there are still many undiscovered places of beauty in Bulgaria as well as untouched property ready to make it’s first entrance into the property market.

Buying Bulgarian Property

Certain constitutional restrictions on foreign investment in Bulgarian property presented some impediments for inward investment. The Bulgarian Property Law was amended in July 2000 which removed such restrictions. The only requirement left was the registration of the investor or investing company in Bulgaria.

Essentially, the process of purchasing a property in Bulgaria necessitates the incorporation of a limited company which can be set up through a solicitor.

There is a requirement to own the land on which the property is situated, before it can be purchased by a foreign national. Property checks can be done by a reputable Bulgarian solicitor. The buyer will receive an initial contract of sale which would require a deposit and the contract of purchase should then be signed before a Bulgarian notary. An independent translator must be provided by the buyer for this transaction.

Notwithstanding tales of complicated legal battles and claims of long lost relatives as highlighted in the UK media, developers are quick to defend Bulgaria as having very strict land registry laws thereby making chances of such claims very rare. Potential buyers of homes in Bulgaria are encouraged to at least visit the country first and make the final decision themselves. A checklist of possible pitfalls is provided by the developers to ensure complete satisfaction on the property purchased.

In conclusion Bulgaria is proving to be the hotspot for European property and it is advised to make your moves while the prices attract. If you do so you will certainly realise how wise your investment will have been.

Surrinder Ahitan’s website Bulgarian Property Advice provides detailed information and advice on the most lucrative areas to invest in Bulgaria. You will learn how to get around, get a flavor of the language, history, culture and more.

Condo Hotels Offer Means to Invest in Dubai, World’s Fastest Growing City

Writen by Joel Greene

Have you ever thought to yourself, “If only I’d bought land in Orlando pre Disney?” Or how about, “I wish I owned a piece of The Strip in Las Vegas?” Just imagine where you’d be today if only you could have foreseen the future of these exciting cities.

Well don’t give up now. It’s not too late for all real estate investment opportunities. The trick is just to find the next Orlando or Las Vegas and invest now.

DUBAI, SHINING STAR OF THE MIDDLE EAST

So where’s today’s best opportunity? It’s a little known city that is rapidly becoming the shining star of the Middle East Dubai.

Dubai is one of the seven United Arab Emirates, and it’s been noted as the fastest growing city on the planet. In fact, it has all the makings of a blockbuster success of epic proportions. Here are a few of the accomplishments and projects underway that are helping to put this city on the map:

Alternatives to Paying Realtor Commissions

Writen by Kris Stone

Recently, most commissions have fallen significantly as the Internet reduces the role of agents.This includes stock brokerage commissions , airline tickets, insurance, shopping and many more.

However, the single biggest commission most consumers may ever pay the one for selling their home has only fallen modestly from the traditional 6%.That is largely because selling houses is much more complicated than selling stocks or airline tickets.

A number of alternatives to traditional real estate brokers are starting to show up in some markets.
Some offer commissions as low as about 3 percent, while others offer rebates that can total thousands of dollars. Still others offer fixed prices for listing homes on their Web site starting as low as $9.99 (Note: http://www.YourSaleByOwner.com/ was offering these rates on the date of this publication).

Listed below are the alternative options to using traditionla real estate agents for home buyers and sellers.

SERVICE TYPE: Traditional SERVICE OFFERED: The Seller pays a pre negotiated commission(typically 5 percent to 6 percent of the sale price). The commission is divided between the buyer’s and the seller’s agents. COMPANIES: RE/MAX , Weichert

SERVICE TYPE: Discounted Commissions SERVICE OFFERED: The Seller pays a pre negotiated commission typically 1 to 2 percent to both the buyer’s and the seller’s agents. COMPANIES: Foxtons

SERVICE TYPE: Rebates SERVICE OFFERED: Cash or gift cards for using a participating agent. Agents share part of their commission with the buyer or seller. COMPANIES: http://www.RealEstate.com/

SERVICE TYPE: For Sale by Owner SERVICE OFFERED: Typically a web based offering with a flat fees starting for as low as $9.99. The services include listing homes on websites & search engines. COMPANIES: http://www.YourSaleByOwner.com/

Senior Partner YourSaleByOwner.com

Foreclosure Investing Legal Structure

Writen by Paul Wells

As a real estate investor specializing in foreclosures, the type of legal structure you select for your business largely depends on what your business is going to do. In this article I give you guidelines you can follow to help you select the appropriate legal structure for your business.

Firstly, you need to estimate how much business volume you are going to do. Are you planning to do two to three homes per year? If so, then you probably should just file a simple LLC or a simple limited partnership.

If you’re doing anything more than four homes a year, you should consider a corporate entity. Corporate entities offer the most personal protection to the real estate investor by far.

LLCs are good to use if you were to buy a home with somebody and have it on a short term basis. LLCs protect their members from personal liabilities and they give the flexibility of a partnership. In many cases, the particular real estate deal as well as the advice of a tax attorney or CPA will determine what entity you choose.

One of the things that you don’t want to do with a foreclosure investing business is take any properties in your own name. So it’s critical to get good tax help and good legal help when forming your business structures.

We incorporated. We started with Rocky Mountain Real Estate, Incorporated, which is now Colorado Realty Solutions. And the reason is simply asset protection. You take houses over and you want to put them in the name of the corporation instead of your own name. That way, if someone decided to sue the purchaser of the house they would have to sue the legal entity, not you.

Many investors will work in what is called a limited partnership or a liability company. Whatever the case, use a legal structure so that your business assets and liabilities are not tied to your personal fortune.

My best advice is, when it comes to selecting the best legal structure for your situation, always consult a competent tax attorney or CPA.

Paul Wells has been investing in foreclosures full time for more than 5 years. For more foreclosure investing secrets like the one in this article, subscribe to Paul’s Free Foreclosure Investing course here: http://www.FreeForeclosureInvesting.com