Real Estate Liens

When we say real estate liens, a lot of people seem too overwhelmed because they are not aware of it. They think that it is too complicated for them to understand and only a real estate agent will be able to understand it. However, since you will be investing in the real estate market, it would be better if you really understand the different terms that are being used. Learn more about realty liens and the things that you need to know about it by reading this article. We will be discussing it briefly to help you learn more about it.

When we say real estate lien, it simply refers to the interest that the lender will be charging to a person. This is a form of bond that will continuously grow until the full payment for the mortgage has been made. We can say that this is a way for the lender to protect himself and to be sure that the borrower will be paying his debt within the given timeframe. Liens are not only found in realty liens transactions but in almost all processes wherein debt and loans are involved.

In other states, the term real estate lien refers to a security bond wherein the ownership of the property won’t be transferred to the person until the full payment for the mortgage and interests are discharged. This can either be voluntary or involuntary, depending on the state where you got your property. This will serve as the safety net of the lender and will ensure that he will be getting the amount that was taken from him within a particular timeframe and without losing anything in return.

To make it simpler, real estate lien refers to anything that the lender will get as an assurance that the borrower will be paying his debt in time. Although there are a few technicalities that are associated with it, you still need to be sure that it won’t be hard for you to deal with these liens. This is the reason why getting a realty agent or a realtor is very advisable for people who are getting into transactions.

There are different ways to translate real estate liens, so it would be better if you are going to get an agent or realtor who can explain the process to you. There are a lot of other things that you need to know about it, and having a professional who can give you advises based on your situation would be very beneficial for you. This will not only help you make an more educated decision, but will also help you determine the best options that you have when getting into realty transactions.

Real Estate Investing – FSBOs vs. Agent Listings?

Many would-be real estate investing professionals face discouragement because of the assumption that acquisitions require deep-pockets. Some even believe the myth that nothing-down purchases are impossible.

The early 1980s era in real estate investing known as the Zero Down Real Estate Movement was initiated by Robert Allen with his best-seller, “Nothing Down.” After observing how commercial properties were acquired with no money down, Allen applied 50 techniques from the commercial real estate industry to the residential property marketplace. He was reportedly paid $1 million advance royalties for his publication, and began holding real estate investing conventions across the country.

The Nothing Down era was a startling eye-opener to the public. Very few were aware of Allen’s predecessors, like Nick Nickerson, Al Lowry and Mark Haroldsen who wrote books on real estate investing requiring no money. Allen popularized the notion, and it was a strong public draw for his real estate investing seminars.

However, some of Allen’s convention speakers were ultimately revealed as “con men,” and some bellied up. Robert Allen himself went bankrupt in 1996. The public generally concluded that Allen was probably a fraud, and that real estate investing was impossible without deep-pockets.

The Wall St.Journal got wind of the Nothing Down Real Estate Investing Movement, and interviewed many investors who were using “Zero Money Down” techniques. The business editor of the Wall St.Journal interviewed me repeatedly (and others who knew of my real estate investing), and featured me in an editorial as one of the most successful investors in the nation who had purchased millions of dollars in rental property without any money.

These previous unfolding events are pertinent to the conclusion of how to buy real estate properties with limited funds.

I proved that properties could be acquired without cash (or credit) to the tune of $10 million in real estate investments during my first 4 years. I used a $10 bill in the acquisition of many of my properties.

Purchases from FSBOs (For Sale By Owners) were possible through negotiations with motivated sellers. I bought millions of dollars in real estate properties without cash or credit by learning acquisition skills that required no money down.

On the other hand, real estate properties listed by real estate agents minimally require a down payment that covers the agent’s listing fee. These listed properties were no more valuable than the FSBO properties, but the agent fees demanded cash upon acquisition. In the intervening years since the 1980s, I have purchased some agent-listed properties, but my target acquisition continues to be FSBO real estate property from a motivated seller.