Learn Real Estate Investing in DC, Maryland, Virginia, and Dallas ONLY $349

When it comes to asset liquidity, you do have to make choices. Usually, however, liquidity is not a problem if you have substantial home equity. It's true that a few years down the road, you might need a chunk of cash for college tuition or some other big expense. But should you need additional money, there are two popular and relatively inexpensive ways to get it. You could take a home equity loan, which is like a second mortgage. Though interest rates vary from bank to bank, the rate on a home equity loan is usually from one to two points above the prime rate.

Like a mortgage, it has fixed payments for the term you specify, usually for 5 to 20 years. It's true that you will pay interest, but think about it this way. Suppose you put an extra $10,000 on your down payment. If your mortgage charges 6 percent interest, you are saving $600 a year, the amount it would cost you to finance the 10K. It’s as if you are getting 6 percent interest on a savings account. If your home equity loan for 10K charges 8 percent, or $800 per year, in effect it only costs you $200, or 2 percent interest.

A home equity line of credit is another good choice. Instead of borrowing a large sum all at once, you draw money out only as you need it and only pay interest on what you owe.
The interest rates on both are attractive, but they have another advantage. Interest paid on both of these types of credit is tax deductible up to $100,000, regardless of how the money is used. Closing costs for either type of loan are low.


Blessings to your Real Estate Investing Success,

Milton B. Yates
www.miltonyates.com

In Love with Real Estate Investing DC/MD/VA/Dallas...Fannie Who?...Oh yeah...Mae

You could argue that if Fannie Mae had been around, George Bailey's Building and Loan would not have been in trouble, despite his absent-minded Uncle Billy, and he would not have needed an angel and the whole town to bail him out.

It would still be a wonderful life, but perhaps not as dramatic a life.

Fannie Mae's real name is the Federal National Mortgage Association and it is a federally charted corporation, owned by shareholders, that has one main mission: To make sure there is enough money around that any American who has the resources to buy a home can get a mortgage. But not just any American can pick up the phone and call Fannie Mae.

When you get a mortgage from your local lender, the lender is the one who will be in touch with Fannie Mae. Your local lender wants to make loans, because it makes money (interest) on loans. But each local lender can only make just so many loans with the money it has available. That's where Fannie Mae comes in.

Thanks to Fannie Mae, your lender doesn't have to wait 30 years until you pay off your mortgage so that it can make a new loan to another family. Instead, your lender can sell your loan to Fannie Mae, make some money on the loan, and then loan someone else in your community money for a home.

Fannie Mae makes money because it can borrow at the best possible rate, a better rate than you get on your mortgage. Fannie Mae buys your mortgage for a lower rate than the lender is charging you, then holds your mortgage (or maybe even sells it again) until you pay it off.

In the meantime, you keep right on paying your local lender, just as you have always done.

Of course, Fannie Mae is the mega player in the mortgage paper world. It makes still more money by packaging up your loan with others and selling it in a bundle to investors, pension funds and other groups. Fannie Mae guarantees that the investors get their money, even if you default on your mortgage.

This is where Fannie's government relationship comes into play. If a vast number of people default at one time and overwhelm Fannie Mae, then she has a great ace-in-the-hole: Your tax dollars. The U.S. government has never explicitly guaranteed that if Fannie Mae failed, tax dollars would be used to prop up the corporation. But most people think that is what would happen.

Today, more than 70 percent of American families own their homes. Not a bad track record, even though Fannie Mae is often criticized as a titan that fights regulation and uses its own size and complexity to avoid close scrutiny.

Blessings to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

Voila: A Crisis in Real Estate Investing Could Be Ending Momentarily…Attention!!!

As the early days dawn on the new federal economic package, two groups are already pretty stimulated. Real Estate agents and mortgage brokers nationwide are talking about the effects of the $168 billion package that includes new, but temporary, rules for mortgages.

The stimulus package raised the ceiling on the ‘conforming loans,’ those loans that are backed by the Federal Housing Administration and have a lower interest rate. It used to be that conforming loans could be no higher than $417,000. In some parts of the country, San Francisco and other parts of California, most homes sell for more than that so many mortgages were expensive, nonconforming, or jumbo, mortgages. The stimulus package will raise the ceiling to %729,750 for the most expensive housing markets. Other markets could also have their loan ceilings raised.

This means more people will be able to finance or refinance their homes, even if their credit is poor or they don’t have a large down payment. Everybody wants to know what this means for their market.

“In Maryland,” a real estate expert, Ken Montville wrote, “If you don’t buy a home or refinance your home before December 31, 2008 you are at risk of losing a competitive rate...when your friendly neighborhood Realtor tells you that NOW is the time to buy, you may want to listen to him or her…with stable prices, major seller concessions, and low interest rates it is truly the best time in history to BUY A HOUSE!”

Another real estate expert from Orange County, Garry Loss, had this to say: “These fixes will give the financial markets time to heal and restore liquidity to the markets in time. It will also allow thousands of homeowners to refinance their loans to more favorable rates and terms. It will take a few weeks before the change will take effect. As a direct result of the stimulus package, expect demand to increase in Orange County along with a huge refinance boom.”

Real estate experts across the board feel that the government missed a chance to perk up the housing market by tying cash payouts directly to down payments on new mortgages.

Blessings to your Real Estate Investing Business,

Milton B. Yates

www.miltonyates.com

Learn Real Estate Investing in DC

Learn Real Estate Investing in Maryland (MD)

Learn Real Estate Investing in Virginia (VA)

Learn Real Estate Investing in Dallas, Texas

Term Insurance...A Good Option for Real Estate Investing Homeowners DC/MD/VA/Dallas

Some homeowners whose mortgages are not covered

by private mortgage insurance (PMI), take out a term

life insurance policy to protect their families in case of

their deaths. According to the New York Times, laddering

such a policy could be a money-saving step. Here is an

example of laddering: For a $300,000 mortgage, three

policies could be taken over time. For the first 10 years, the

policy would be for $300,000. For the second 10, a policy

would be for $200,000, and for the last 10 years, it would be

for $100,000.

Considering the low rates now being offered on $500,000 term

Life policies, a young person who is in good health might

Consider term life to protect his or her family.

Blessings to Your Real Estate Investing Business,

Milton B. Yates

www.miltonyates.com

Learn Real Estate Investing in DC

Learn Real Estate Investing in Maryland (MD)

Learn Real Estate Investing in Virginia (VA)

Learn Real Estate Investing in Dallas, Texas

How are you affected by your FICO score!!!!

Fair Isaac Corporation, maker of 

the FICO credit score used by 90 

percent of banks, says its new 

scores will do a better job at 

predicting which borrowers will 

default on a loan.  Called the 

FICO 08, it will be more forgiving 

of the occasional late payment but 

will take a harder line on repeat 

offenders. They predict that the 

new system will reduce default rates 

by 5 percent to 15 percent.  Banks 

and other institutions use the scores 

to make decisions on loans, interest, 

insurance, cellphones and in some 

cases, employment.  One other big 

change in FICO scoring is the way 

‘authorized users’ of credit cards are 

evaluated. It used to be that children 

could be listed as an authorized user 

on their parents’ cards.  They would 

then acquire the credit history for the 

card, even though they were never actually 

financially responsible for the card.  

FICO 08 will eliminate any advantage to 

being an authorized user. 

Lenders hope this change will eliminate 

a legal, but questionable practice of brokering

credit improvement by selling authorized user 

status on credit cards.



Blessings to your Real Estate Investing Business,


Milton B. Yates
www.miltonyates.com


Learn Real Estate Investing in DC
Learn Real Estate Investing in Maryland (MD)
Learn Real Estate Investing in Virginia (VA)
Learn Real Estate Investing in Dallas, Texas

The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Part 7

Budgeting Revenue

We have finally arrived at the last incredibly effective habit of successful real estate investors; budgeting. WOW! This is a tough one ladies and gentlemen. I think it is common to forget, but we all know in the back of our heads that if we do not budget, we are sitting in a sinking paddle boat.

I wanted to share some quick tips on budgeting for your real estate investing business. Enjoy.

• Create a worksheet using your bills and payouts for the last two to three months so that you can effective monitor the expenditures.
• Make room on your worksheet for rewards for great investing days, weeks, or months.
• Go through the books/records and calculate the gross average of income.
• For each of your expenditures, determine an amount that realistically reflects your actual expenses and then set a spending level that allow room for saving some of that income.
• Subtract the total expenses from the total income to arrive at your net income.
  
• If the number is negative, your expenses are greater than your income. Your situation can probably be greatly improved by changing your spending habits of your real estate investing business.
• If you have a positive net income, transfer most of it to a savings or investment account at the end of each month. Extra cash left in a business checking account has a way of getting spent.
• After you've tracked your actual spending for a month or two, analyze your spending to identify where you can comfortably make cuts.
• Once you've got the budgeting process in place, take an in-depth look at your largest spending categories, brainstorm about ways to reduce spending in specific categories, and set realistic goals.
• Update your budget and expenses monthly.
  

Budget...Budget...Budget!!!


Blessing to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

Learn Real Estate Investing in DC
Learn Real Estate Investing in Maryland (MD)
Learn Real Estate Investing in Virginia (VA)
Learn Real Estate Investing in Dallas, Texas

The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Part 6

Business Partnership

The second to last incredibly highly effective habit of successful real estate investors is having a business partnership. A partner is defined as a person who shares or is associated with another in some action or endeavor. They are a sharer or an associate. A partner is a person associated with another or others as a principal or a contributor of capital in a business or a joint venture, usually sharing its risks and its profits.

It is very important that this person is chosen wisely. A business partner should be like minded and have similar entrepreneurial goals. Here are some major reasons why having a business partner is important:

• With a partner, there is more than one brain in operation to discuss and make business decisions.
• Great partners are able to share the load and permit you to take personal time needed for family, vacation, or otherwise.
• Your partner should be able to compliment your skills. Whatever your weakness within the business, your partner should be the strength in that area.
  
• They also must be able to share in the MAJOR risks when the unplanned occurs - because in any business it always does.

This incredibly highly effective habit can MAKE or BREAK your Real Estate Investing Business. Trust Me. Take your time and choose carefully. A business partnership is JUST LIKE A MARRIAGE. Wins, Losses, and Ties fall on all parties involved. I was fortunate enough to choose the right partner in Valarie Jacobs and together we have become the #1 Real Estate Investors in DC, Maryland, Virginia, and Dallas, Texas. Our company, A.S.A.P. Community Solutions, Inc. has become a powerhouse in real estate investing and looks to move to wherever the market permits. We both are coaching both newbee and veteran investors in their real estate activity and gained a great bit of experience through successes AND failures. So much so that we share them with our students through "the What and the How."

“The What and The How”™ of A.S.A.P. Community Solutions is an educational company that teaches wealth building strategies primarily through real estate investment. The company offers learning opportunities for real estate investors around the country through various on-site seminars, coaching programs, teleseminars, and an interactive membership website. Milton B. Yates and Valarie Jacobs pride themselves in giving both the WHAT and the HOW in creative real estate investment education. Their students and coaching clients have experienced extraordinary success through their mentorship, interactive training, and hands-on approach to teaching the principles of real estate.

Now get out there...and find you a good partner!!!!!


Blessings to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

Learn Real Estate Investing in DC
Learn Real Estate Investing in Maryland (MD)
Learn Real Estate Investing in Virginia (VA)
Learn Real Estate Investing in Dallas, Texas