Archive for March, 2010

Free Government Money- Part 2

Let the Government Help You to Make Money

Of the many different types of financial assistance available to us I especially like the Rental Rehab Loan Program. Here how it worked for me. Several years ago I purchased a four unit building that had my friends wondering if I had lost my mind. The units were one bedroom one bathroom each and were inhabited by four elderly ladies who had been living there from 21 to 24 years.

The problem was that their rent had never been raised! The total income from that building was around 460 per month! FOR THE ENTIRE BUILDING!! No I’m not crazy. I did my homework and I found a Government program called the Rental Rehab Loan Program. The program required that I borrow at least 5000 to be used for upgrades in the building. The benefit to me was that I received the money at a very low interest rate and much more importantly the tenants would qualify to go on the Section 8 Government Subsidy Program!

A Great WinWinWin Deal

All four of my elderly tenants were existing on a very meager social security income. They lived in the fear that whoever buys the building will want to raise the rent. They knew that the market rent was around 625 per month and they knew that they could not afford it. They all thought that they’d end up homeless on the streets. They had no idea that these wonderful Government programs existed. I borrowing as close to 5000 as I could I wanted to maximize my cash flow and started the work on the property.

When it was all over I ended up with a really nice building with 4 wonderful senior citizens as tenants. I increased the income from the building from 460 per month to around 2600 per month thanks to my partner Uncle Sam.

Everyone Was a Winner

Everyone won in this deal. The Government won because they were able to get the money out into the community where it could do some good. The tenants won because they were able to stay in the homes they’ve been in for over 20 years. They actually ended up paying less toward their rent because of the Section 8 Subsidy. I obviously won because I was able to take a nonperforming piece of property and turn it into a success. Thank you Uncle Sam!

Do I Need To Have Good Credit?

That depends on which of the many programs you’re applying for. There are some programs that are project based. In other words if your project fits a certain category the project itself can qualify for the money. It could be the real estate the area the tenants or the business that qualifies not you personally. If it’s a program that requires you to personally qualify then your credit can become a factor. But understand this. There are programs that are designed for people with bad credit. There are even programs that require you to be turned down by a bank before you can qualify for the money!

Stay tuned. In the upcoming “Part 3″ I’ll discuss ways to go about getting this free money and resources that can help.

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Fractional Ownership In Real Estate
As the phrase suggests fractional ownership refers to partial ownership of a property. The piece of property that represents the subject of fractional ownership is typically owned by at least two individuals. Fractional ownership in real estate is quite popular for vacation resorts and properties. In fact fractional real estate ownership is quickly becoming a better alternative to full ownership as far as vacation homes are concerned.

Vacation properties are often used infrequently which makes it fairly hard for full owners to justify or recover their investment. The advantages of fractional ownership in real estate become more obvious if you consider a large and expensive property or a luxury vacation home which you cannot afford to purchase on your own nor cover all the expenses that are generated by owning a second home. Instead of being the sole owner of the real estate property you purchase and own a fraction of it and share all taxes and maintenance costs with the other owners. Do not mistake fractional real estate ownership for timeshares. The concepts are different in many aspects. In fact the only thing they have in common is that both options are mostly preferred for vacation properties. Timeshares refer to renting a specific property for a determined amount of time without owning any part of the property itself. As has been said before fractional real estate ownership allows you to become the owner of a fraction of the property with all the advantages and benefits that derive from this.

Fractional ownership in real estate involves sharing. This means that your use of the property will be restricted when the other owners are using it. The specific amount of time that you can spend at your residence depends on the number of owners as time must be equally split among all owners. With split cost of ownership and savings on insurance and maintenance costs along with the opportunity to invest in a wide range of properties fractional ownership emerges as a very good deal.

The fractional real estate ownership option represents a very good solution for those interested in making some profit. If you purchase a piece of real estate property together with several other owners and choose not to use part or all of your allotted weeks at the residence you can rent them out to other parties and make profit. You can choose to rent the property to the other owners or to other individuals who are not part of your fractional ownership plan. The contract that all owners must sign when opting for fractional ownership in real estate typically includes the rules regarding the rental of the property to other parties.

Owning a vacation property is just a beautiful dream for many people. However with the fractional real estate option this dream can come true. Fractional ownership in real estate represents a very easy way to own a vacation or resortlike property. The most important advantages that come with fractional ownership including having a place to spend your vacations little responsibility for the property and the related expenses as well as the opportunity to sell your share of the property as you wish.

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Four Ways Your Cyprus Property Can Make Money

Today owning property in Cyprus is what dreams are made of. It’s the new hot destination that has everyone clamoring for their wallet in order to purchase a piece of the property action. Property on Cyprus is still relatively cheap but earnest development coupled with the sheer volume of people who want to live in Cyprus and/or holiday there promise to push housing costs through the roof. If you get in on the action now you could end up making a nice profit.

Sound interesting? Before you pack up everything and move the whole family to Cyprus you should know that you can make money simply by purchasing a holiday property in Cyprus. You don’t have to move there. In fact you can make more money than with a conventional property investment and still get to enjoy your new holiday home whenever you want to.

How? The following 4 strategies can be used to make money in Cyprus holiday property:

1. Develop and Sell Right now there is an unbelievable demand for development on the island of Cyprus. You can purchase undeveloped property relatively cheap develop it as holiday property condos villas cottages etc. and sell it off bit by bit to people interested in purchasing Cyprus holiday property.

2. Buy and Hold Housing prices are expected to soar in Cyprus in the near future. Now is a great time to purchase a holiday property and hold it until the housing bubble in Cyprus fully inflates. In the meantime you can use your property in Cyprus as a getaway destination or a second home. You may even decide to live in it full time once the charm of the island takes hold of you.

3. Buy to Let Holiday housing is in great demand on the island and not everyone can afford to buy. In fact most people visiting Cyprus seek rental housing. If you own property in Cyprus you can cash in on this demand by letting out your property to families on holiday. You do not even have to be present to manage your property or book guests. A management company can take care of all of this for you. When you want to stay on Cyprus all you have to do is black out the time period that you will be living in your Cyprus home.

4. Manage Properties If you want to be on the other end of the above equation you can choose to manage other people’s holiday properties on Cyprus. However you may have to make Cyprus your permanent home so you can keep a close eye on your business.

There are so many ways that you can make money by investing in Cyprus properties right now. The opportunities are limitless. With a housing market as hot as the one in Cyprus it is hard to make a wrong turn or a bad investment choice. The bottom line: If you can afford it; go for it.

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