Saturday, April 05, 2008

Major Plant Groupings at Winterthur

In 1962 an interviewer asked Henry Francis du Pont (1880-1969) to discuss the defining aesthetic principles of his great naturalistic garden at Winterthur. Du Pont replied, “For me, color is the thing that counts more than any other.”

The following is a list of the major plant grouping at Winterthur, showing the flower colors and time of bloom in Delaware (Zone 6B). For more than 65 years H. F. du Pont observed succession of bloom, experimenting with thousands of plants and refining the color combinations that are the essence of the Winterthur Garden.

March Bank
Color















Time of Bloom
Galanthus spp. (Snowdrops)
White















January-March
Adonis amurensis (Amur Adonis)
Yellow















March
Eranthis hyemalis (Winter Aconite)
Yellow















March
Chionodoxa spp. (Glory-of-the-Snow)
Violet blue















March
Scilla spp. (Squills)
Royal blue















March
Leucojum vernum (Spring Snowflakes)
White















March
Crocus tomasinianus (Tommies)
Lavender















March
Crocus hybrids
Various















March
Cornus officinalis (Cornelian-cherries)
Yellow















March
Muscari spp. (Grape-hyacinths)
Purple















March
Narcissus spp. and cv. (Daffodils, early)
Yellow















March
Anemone apennina (Italian Windflowers)
lavender, white















April
Uvularia grandiflora (Bellworts)
Yellow















April, May
Mertensia virginica (Virginia Bluebells)
Blue















April, May
Phlox divaricata (Wild Phlox)
Lavender















April, May

Winterhazel Walk
Corylopsis spp. (Winterhazel)
Yellow















April
Rhododendron mucronulatum (Korean R.)
Rosy lavender















April
Rhododendron mucronulatum (Korean R.)
Rosy lavender















April
Helleborus spp. (Hellebores)
Plum, cream















April
Corydalis bulbosa
Rosy lavender















April
Primula abchasica (Abkhazian Primrose)
Cerise and yellow















April

Quince Walk
Chaenomeles spp. and cvs. (Flowering Quince)
Coral, pink, white, red, orange















April
Viburnum spp.
Chartreuse, white, pink















April, May
Spiraea spp.
White















April
Exochorda spp. (Pearlbushes)
White















April, May

Sundial Garden
Magnolia spp. and cvs.
White, pink















April
Spiraea spp.
White















April
Chaenomeles spp. and cvs.
(Flowering Quince)

Pink, red















April
Prunus spp. and cvs. (Cherries)
Pink















April
Viburnum spp. and cvs.
White, pink















April
Fothergilla spp. and cvs.
White















April, May
Malus cvs. (Crabapples)
Cerise















April
Exochorda spp. and cvs. (Pearlbushes)
White















April, May
Syringa cvs. (Lilacs)
Lavender, white, deep
purple-red
















May
Paulownia tomentosa (Princess Trees)
Lavender















May

Azalea Woods
Anemone apennina (Italian Windflowers)
Lavender, white















April
Trillium spp.
White, various















April, May
Rhododendron (Kurume hybrid Azaleas)
Pastels















May
R. kaempferi (Torch Azaleas)
Coral















May
Rhododendron spp. and cvs.
Pastels















May
Hyacinthoides hispanica
(Spanish Bluebells)

Blue















May

Peony Garden
Paeonia (Hybrid tree peonies)
Red, gold, white















May
Paeonia (Herbaceous peonies)
Salmon, white, pink, red















May
Rhododendron (Kurume Azaleas)
Pink















May
Weigela cvs.
Pink















May
Kolkwitzia amabilis (Beautybush)
Pink















May

Sycamore Hill
Narcissus cvs. (Daffodils)
Yellow, white















April
Forsythia spp. and cvs.
Yellow















April
Cercis canadensis (Redbuds)
Rosey lavender















April, May
Paulownia tomentosa (Princess Trees)
Lavender















May
Syringa spp. and cvs.
Lavender















May
Aesculus cv. (Horse Chestnuts)
Rosey red















May
Kalmia latifolia (Mountain-laurels)
Pink















May, June
Chionoanthus virginicus (Fringe Trees)
Cream















May, June
Deutzia spp. and cvs
White, lavender















May, June
Philadelphus cvs. (Mock-oranges)
White















May, June
Viburnum spp. and cvs.
White, cream















May, June
Rosa cv. (Roses)
Various















May, June
Spiraea spp. and cvs.
White















May, June

Quarry Garden
Chionodoxa spp. (Glory of the Snow)
Lavender blue















March
Scilla spp. (Squills)
Royal blue















March
Narcissus cvs. (Daffodils)
Yellow















March
Caltha palustris (Marsh-marigolds)
Yellow















March, April
Cornus spp. (Cornels)
Yellow















March, April
Primula denticulata (Drumstick Primroses)
Lavender















April
Rhododendron spp.
Pink















April
Primula hybrids (Candlabra Primroses)
Fruit shades















May, June
Lobelia cardinalis (Cardinal Flower)
Red















July, August
Lobelia siphilitica (Blue Lobelia)
Blue















July, August
Ligularia sibirica v. speciosa
Yellow















July, August
Hosta spp. and cvs.
White, lavender















July, August

Enchanted WoodsTM
Cercis canadensis (Redbuds)
Rosey lavender















April, May
Mertensia virginica (Virginia Bluebells)
Blue















April, May
Primula elatior (Oxlip)
Yellow















April
Hyacinthoides non-scripta
(English Bluebells)

Blue















May
Rhododendron (Kurume hybrid Azaleas)
Red, white, pinks















May
R. kaempferi hybrids (Torch azalea hybrid)
Rose, salmon















May
Rhododendron bakeri (Cumberland Azalea)
Orange















June
Hydrangea spp. and cvs.
Lavender, white















July, August
Hosta spp. and cvs.
Lavender, white















July, August
Clethra alnifolia ( Summersweet)
White















August
Begonia grandis (Hardy Begonia)
Pink















August
Aster divaricatus (White Wood Aster)
White















September

For more information, see Winterthur in Bloom by Harold Bruce (New York: Chanticleer Press, second printing, 1986), and The Winterthur Garden: Henry Francis du Pont’s Romance with the Land by Denise Magnani (New York: Abrams, 1995).


Buy Foreclosed Properties for Zero Down

Here's how you can buy property with only having to put little or no money as a down payment.

  1. You will still have to make an earnest money deposit, something like $100 - 1,000 is common, $500 is standard in most states (this money is not refundable, and basically it sets you up a reasonable amount of time to close on the property, you pass that date, the bank takes your money). Earnest money is not required for the transaction. It is simply a guarantee that you intend to fulfill the deal. And, with any Buy/Sell agreement properly written earnest money actually is indeed refundable.
  2. If you are a first time home buyer you can potentially utilize an FHA (Federal housing administration) Loan. You can purchase a property with "Zero Down," zero closing costs, and it will more or less be tacked into the mortgage (and you'll end up with .5 - 1.0% higher interest rate than market is yielding for your credit type). The property however must pass specific guidelines, you will not be able to utilize this financial product if this house is in need of repair (foreclosed homes and fixer-uppers are two separate things).
  3. Use a credit card. You can technically, (legal, but falls in the grey area) do credit transfers, but you will eventually have to pay off the credit card. This is usually done on an investment property after you have obtained the house and then sold it again at a profit to cover your total cost plus interest accumulated.
  4. Credit card rates are almost always much greater than mortgage interest rates. Experienced mortgage brokers and lenders can help you with 100% financing on any property including foreclosures whether they are bank owned, lender owned or government owned.
  5. There is no secret to No Money Down foreclosures. While credit card advances to purchase property are by no means in a grey area provided you are either (a) indicating that your down payment is borrowed or (b) getting a large enough advance to pay "cash" for the property it is not very smart unless you have a credit card with an interest rate below about 9% amortized for 30 years. I don't know of a credit card amortized for 30 years.
  6. Even if the property is in need of repair there are lenders who will lend the full purchase amount and the full repai amount provided they are less than 80% of the after repair value (ARV).


Get a Down Payment Grant

Sources of money to use for your down payment when buying your home.

  1. Determine approximately how much money you need. Your banker or mortgage broker can help you with this. Your real estate agent should be able to help you if you haven't gone to the lender yet.
  2. Investigate local bank programs. Sometimes lenders will provide mortgage loans, particularly to first time home buyers, that require NO down payment. There are federally guaranteed loans that are often available through the VA or the USDA. These require no down payment - which is just as good as getting a grant, eh? Federal programs from the FHA insure loans so local lenders will make minimal-down payment mortgage loans.
  3. Look into HUD (Dept of Housing and Urban Development - a huge Cabinet agency, 2nd in size only to the Dept of Defense). This department has a very under-used, but super program that grants money for down payments. This program is called: ADDI, or American Dream Downpayment Initiative. A clickable link to it is on my website (that URL is below) or just search for HUD.
  4. Consider private "charitable" sources of downpayment money. Most of these essentially require the seller to fund your down payment. This is rarely a good idea. You have (hopefully) wrung enough other concessions out of the seller, like a very reduced price, that s/he will refuse to do this for you. But - no matter, you can almost certainly do this on your own.
  5. Remember to be patient. After all, you will be dealing with civil servants! (Civil servants are quite often dedicated public servants that stand up for the public's long term best interest (as opposed to politicians who sometimes stand for their own short-term ephemeral interest). That said, they are often underpaid and overworked, and have built stable systems in an ever-volatile democratic government. Therefore, they sometimes appear ornery and difficult. Keep in mind though, there may be a method to their madness.

How to Get a Construction Loan

Learn everything you should know before you even think about applying for a construction loan.
Obtaining a good construction loan is a lot easier when you have been handed a course of action.

Steps


  1. Get pre-qualified for a loan. This will help to determine if the requested loan amount is within your budget. It will also allow you to find out what the monthly land or mortgage payment is going to be, and to make sure you qualify before you run out and buy land.
  2. Find an experienced construction lender. Local banks, if they do construction loans, might be able to offer you a great rate. National Lenders are more likely to have construction programs. But your first consideration should be construction lending experience. Even more than a mortgage loan, a construction loan is complicated. Avoid using any entity that provides you with a loan officer who doesnt have significant experience providing construction loans to consumers.
  3. Choose the right construction loan product. Call your local banks and ask for the construction loan department or a construction loan officer. Most of the time, you won't get anywhere. If you do find a bank that will do a construction loan, they usually can only offer one product that may or may not be competitive in today's marketplace. A typical construction loan nowadays is a construction to permanent loan that may or may not allow you to lock-in today's low interest rates until the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher along with your monthly payment. This is usually not what you want, so be careful. Some things to watch out for:
    • Some lenders have a higher interest rate if you lock in upfront.
    • Some lenders try and sell you on a higher rate or adjustable rate during construction with the hope of a float down rate after the home is built.
    • Some lenders have a non competitive long term lock along with a fee.
    • Some lenders have such bad service no matter what rate or program they have, it's not worth doing business with them.
    The most important thing when searching for a good construction loan is to find an experienced construction loan specialist that knows which banks are the best. The best banks can offer you a low rate now, upfront, before you start building your new home.
  4. Understand how the construction loan industry has changed. Today's construction loan choices include the 30 year fixed, 15 year fixed, 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM and the popular interest-only loans. The construction loan of the past was a short term 1 year loan that the customer would have to refinance into a new loan once the construction was completed. This two time process cost the customer two sets of closing costs and you would have to re-qualify for the new loan once the home was completed. The most popular construction loan today is the "One Time Close" but not all are created equal. Just like any product there are the best loans, good loans and downright bad loans. With today's technology, you now have the ability to obtain a construction loan from the best banks in the country and sign your loan documents at your local title company or escrow office. This benefit allows you to have the most competitive construction loan available. The loan that you should apply for is simple; ask for the lowest rate, one time close for a specific period of time that you think you'll be living there. The graph below shows the type of loan you should apply for depending on your needs.
  5. Know where to go. Most banks offer loans, but not choices. One way to get different choices is to go shopping to every bank in town. Or you can call an experienced construction loan broker who has done all of the homework for you and has direct access to hundreds of banks nationwide. A broker is a representative for hundreds of banks. Although the broker serves as middle-man, his or her services will not cost you anything extra. That's because brokers get loans at wholesale rates, and pass them along to their clients at retail prices, just like any other business. In fact, because or their volume, many brokers are able to offer their clients better deals than you can get by talking to the banks on you own.
  6. Decide if you are going to lock in your interest rate until completion of your house, or let them float in the hopes that rates will go down. If the rates are heading upward, lock. If the rates are stable, relax. If the rates are headed downward, float. Always ask. Is the construction loan rate locked upfront or floating during the construction loan period? Then ask, is the rate during the construction loan the same rate when the loan converts into the mortgage period.
  7. Know your construction loan officer and his or her level of experience. Loan salespeople usually have one main goal in mind when helping you with your loan request and that is the commission (also known as loan fee, points, or yield spread premium). The following questions allow you to quickly find out if your loan officer is experienced at construction loans and is not simply after your money:

    • How long have you been doing construction loans? 5 years or more is best.
    • What is the loan to cost (LTC) required for construction loans? This is cash equity such as down payment on land. This can range from 5 to 20%.
    • What is better? The voucher or draw disbursement system and why? Draw is now the most popular because the customer has the control of the money.
    • Does the bank require a contingency and an interest reserve account? This is a choice but most banks automatically add both to the loan amount.
    If the loan officer (sales person) can answer these questions with no problem then they have passed a pretty good litmus test.
  8. Find out how to qualify for your loan. The first thing your loan officer wants to see is your completed loan application. The loan application called the (1003) will tell a story of your financial picture. The completed loan application will tell the loan officer many things including:
    • What type of loan you want
    • How much money you need
    • Where you currently live
    • If you rent or own
    • Your social security number
    • Your current employers
    • A list of all your assets (money) and liabilities (bills)
    • How much money you make
    • How much real estate you own
    • Some declarations along with some government questions
    The loan officer will analyze this and other documents (including your credit report) to determine whether you qualify. This analysis yields a ratio called the income to debt ratio, and depending on the bank's underwriting guidelines, this ratio will usually range from 36% to 45%. The income to debt ratio is the percentage of monthly debt payments (including your new mortgage payment, taxes and insurance). This ratio should not exceed 36% to 45% of your monthly income. Some banks will allow you to exceed this ratio if you have an excellent credit history and excellent credit score. The current and the most popular method of qualifying for a loan today is the stated income loan. Stated income allows you to qualify without verifying your income on your tax returns, W 2's or pay stubs. The only thing the bank verifies when applying for a stated income loan is your credit score, bank statements and that you're employed.
  9. Avoid the "bait and switch". The mortgage lending business is notorious for baiting and switching, which is when a loan officer or advertisement offers you one thing and then tries to sells you something else. Typical signs of baiting and switching are obvious, some basic examples are:
    • Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
    • You are offered a construction loan with no points and no loan fee's. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
    • You are told that you will not have any payments while you're building. What you're not told is that all construction loans have this option and it's called "interest reserves" and the payments are added to the loan amount.
    Remember that if it sounds too good to be true, there's usually a reason. Always get your quote in writing, and if you are satisfied with the rate and construction loan program you are quoted, ask to lock it in upfront.
  10. Realize that most loan products typically go hand in hand with banking guidelines. These guidelines are provided to loan officers to coincide with the customer's qualifications. For example, if you have a very high (FICO) credit score with land free and clear, you have more loan options than the person with a very low (FICO) score and no land equity.
  11. Make sure your loan officer has structured your construction loan properly. Structuring construction loans for approval is vitally important and is the last thing on most customers’ minds. Common mis-structured loan scenarios include:
    • Missed deductions
    • Low cash equity
    • Improperly completed appraisal
    • Unexplained credit derogatory
    • Income incorrectly calculated
    • Mismatch of customer loan request to the correct lender
    • Plain and simple incompetence

  12. Factor interest reserve and contingency funds into the cost of building your new home. Interest reserves are added to your loan amount to make the monthly payment on your loan. Yes, you read that correctly, you will not have to make a monthly construction loan payment while your home is being built. The payments are made from this interest reserve account and no, it’s not free. This reserve is added to your construction loan amount. Interest reserves were designed for the benefit of the customer. Most people building a new home are either paying rent or have an existing mortgage payment while their home is being built. The last thing a customer needs is another monthly payment while building. So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount. If you do not want interest reserves added to your construction loan amount, you can ask to make your own monthly construction loan payment. Contingency funds are added to the loan amount just in case you need more money to build your new home. With all good intentions, construction loans tend to have cost overruns. The bank adds 5% to 10% of the cost breakdown and adds this amount to the loan amount just in case you have cost over runs or need better appliances. If you don’t need or use this extra contingency fund then it will not be added to your mortgage upon completion of your new home.
  13. When you apply for a construction loan, ask your loan officer to provide you a copy of the estimated construction loan budget. This budget is not usually meant for the customer but an experience construction loan officer should not have a problem providing this to you. The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees.
  14. Construction Loans are most often 'Story Loans'. In other words, the lender needs to know what exactly you want to accomplish, why you want to do it, and how you intend to accomplish it (e.g. what is your 'story'), before they can recommend a program and approve your loan. For instance, if you intend to live in the home after the project is complete (owner-occupied), your options, rates, and even potential lenders may be very different than the same loan to an 'investor' who intends to immediately resell the property.


Tips


  • The Most Important Elements of a Construction Contract
  • Construction loans are a little more paperwork intensive than purchase money loans. Every construction loans has a part known as the builder’s package.
  • A Builder’s package includes items such as; a builder’s statement or resume which includes things like previous experience references and credit and banking references, a line item cost breakdown, a materials list and last but not least a construction contract.
  • Guidelines for construction loans require a borrower to enter into a written contract with a builder/contractor.
  • A line item cost breakdown is an integral part of a construction contract and such it should be referred to at all times. It is common for a homeowner to change some specification or other and it is highly recommended that a firm change order be written in these cases.
  • A Construction contract is a written agreement between the borrower and the builder for services to be provided by the builder for a stated consideration.
  • A properly written and customary contract contains:
    1. A clear statement outlining the responsibilities each party will perform.
    2. The date of the contract, the scheduled dates for commencement and completion of construction of the project . An event date, rather than the actual date, is sometimes acceptable.
    3. The amount of payment the builder is to receive for each stage of construction, as well as under what conditions it will be received, such as passing inspection etc... If the property is located in a state that charges sales tax, the contract must specify whether the amount includes state sales tax.
    4. Proper reference to a completed and signed Line item cost breakdown and list of materials..
    5. A payment method that is compatible with the line item cost breakdown and the disbursement procedures of the investor.
    6. Provisions for possible changes to plans or specifications by appropriate change orders. Since most construction loans have a contingency provision a cost over run may be paid for using that provision.
    7. Full identification of all parties and definition of all names used in the contract (contractor, owner, subcontractors and architect).
    8. Architect's responsibility, if any.
    9. Signatures of the borrower and contractor.


Make a Fortune in Today's Real Estate Market

The real estate markets around the country are hurting for buyers. It is now the time for the investor who has been sitting around or wanting to diversify their portfolio can make real estate purchases today like no other time in history. With most markets flooded with properties, you can really make wise educated decision on any property on the market.

Steps


  1. Make a detailed plan as to where you want to buy as to area. In today's market and with the power of the Internet you can make purchases anywhere.
  2. Go partners with someone else that you trust. This is especially important if you do not have a lot of cash and your credit is not over a score of 720
  3. Make an application to a mortgage company. You need to know what they can do for you and let them know what it is that you are looking to do. If you are going to buy single Family Homes or Multi-family buildings. Make sure they can make the loans and how much of the rental with they use towards qualifying you for a mortgage.
  4. Get a commitment fro the the bank Make sure you tell the loan officer what you want up front. Once you find the property you want to purchase you can make the deal a cash offer subject to appraisal.
  5. Start locating properties. Contact agents that specialize in working with Buyers and not an agent who works for the seller. However, a sellers agent can provide information about a property that a buyer's agent may not know. The realtor's fiduciary duty is to provide honest real estate help and knowledge to all parties in the transaction.
  6. Make a list of the type of properties have your agent send you print-outs of properties. Make a list of the ones you are interested in then go out by yourself and drive around the area. Don't be afraid to knock on doors in the area and ask questions of the people. Such as Schools, Shopping, Crime, you get the idea. You can also go online to check out the schools ratings and the crime stats for the area.
  7. Make appointments to see each one of them and take notes on what you like, expected repairs and what you do not like. Get the Seller Disclosure for each property. This will become a great tool down the road. Once you have all of the properties listed and all of your notes written down on each property.
  8. Research online and with your agent as to the true value of homes that have sold and are currently on the market and how long it has been on the market.Find out if it had been listed before by any other office or For Sale by Owner. This is a very important step. Remember the time a property is on the market will have a dramatic effect on your offer.
  9. Start placing offers on properties. Try to make your upfront money as big as you can and the settlement date as short as possible. Remember you have a mortgage already if you did what it says in step #3 and you are ready to make offers. Make sure your agent knows that you are going to move very quickly and you want the seller to move just as fast.
  10. Avoid emotions into the transaction. Don't buy properties because they look good or you like the interior. Make smart educated purchases from good data. Ignore the decorations and the pot-pourri try to compare house size, location and age. You may be willing to redecorate a bargain if everything else is good.
  11. Buy the worst house in the best neighborhood to get a good deal.


Tips

  • It is now a Buyers market... so go out and buy!
  • If you are buying single family residences for investment purchases, you might consider all the for sale by owner properties before those sold by agents. Try www.forsalesbyowner.com to start your search.


Warnings


  • When you ask that an agent reduce his commission, you are offering the agent less incentive to sell your home compared to your neighbors home where the commission is higher. All things being equal, neighborhood, home size, etc. an agent would do themselves an injustice by recommending yours at a lower commission over another at a higher commission.

Buying and Flipping Real Estate

Let's face it; there are so many get-rich-quick schemes out there that it makes your head spin. This is a practical way to achieve millionaire status and stay rich forever--the same way that countless others have gotten rich.
The time frame will probably take at least 36 months. But it could be shorter if you have the time and dedication to work this plan full time.

Steps


  1. Understand that wealth is generated by owning "income producing assets". Assets are things like: rental houses, rental apartments, businesses, trademarks, copyrights, intellectual property, land, commercial real estate, and the list goes on and on. Just drive around. All the businesses you see and use, the apartment you rent, etc etc...they're all making some guy or gal rich. Who? The one who owns them. So embed that in your mind. No lotto, no MLM, no get rich quick schemes, lets get real. You get income producing assets and you will get rich plain and simple. So now that you've pinned up that saying lets get the assets, here's how...
  2. Get yourself a place to live, a computer with Internet access, a job, or a source of basic income to get you by on (such as a job, any job!) and if possible a car, even a junker is good. If you're not at this point yet, that's okay. You can still use this plan. However, ideally you should be at least living in your own apartment and having the basic foundations in place.
  3. Check your credit score. Go online to some of these places like Equifax or other places that can provide your credit score and find out what it's at? If it's bad, consult with a company from the yellow pages or back of the newspaper or on this site on how to "repair your credit". However, never declare bankruptcy. If you don't have much credit at all and need to establish credit then begin by trying to get a department store card. Get several of them. Use them to buy your shopping items from that store for a while, and then just pay off the department store cards. Do not keep any balance on the card. Then do the same for a credit card. Get a credit card, such as from Capital One, or any other credit card company you see out there advertising cards. Start to use it, but never max out the card. In order to best improve your credit score, try to maintain about a 30% balance at any given time. This shows that you know how to properly use credit.
  4. Go from "renting" to "owning". It's a mental barrier for some that needs to be broken, just as much as it is a practical step in this formula to becoming a millionaire. So if you're renting a home or apartment, chances are you're making enough money and have good enough credit to qualify to move into a home. Call up some realtors and let them know your situation. Tell them how much you pay in rent and tell them that you now want to own. Even if you need to downsize to a smaller condo or whatever, just do it. The key is, you need to own.
    • Know that you may have to take what you can get. This often means buying a home from a seller who perhaps owns the home free and clear and will allow you to do perhaps a lease option, or carry the mortgage for you. Alternatively you get the seller of the home to carry 25% of the equity in the form of a second mortgage and then go to your bank to get the "first mortgage". Alternatively you put down 5%, get an insured mortgage and borrow the remaining 95%. The 5% can be borrowed from multiple sources such as, a bank, the realtor, a friend, your boss, so explore you options before dismissing it. Now, all this might sound complicated. But a good realtor who knows the ropes will "get you into home ownership". If they can't, you're simply talking to the wrong realtor. The right realtor will have all the connections to get you into the home.
    • Try and find a good deal. That means you're getting into a home that the seller is desperate to get out of it, and will sell to you at a discount, perhaps 10% of a discount of what the property is really worth.

  5. Immediately re-list your new home at at least 10% to 25% higher than what you paid for it. That's where finding a deal comes in. You should have bought the home or condo at 10% to 25% of a discount knowing full well that you could immediately re-list it at that much more. Make it all nice, without spending much on it. Don't do any major renovations. Just re-list it higher, but just decorate it nicely like you see on those shows like "flip this house". You can get good ideas from places like: show homes, magazines, TV shows, Internet, etc. Remember you need to do all your calculations. Factor in everything, all your expenses so that you're positive to make that 10%. So let's say on a very basic entry level, I'm not choosy just get me in the door, home that cost you $150,000. You immediately re-list it and make 10% net profit in 90 more days. So you instantly made say $15,000. Now don't you dare spend that money! Here's what you do....
  6. Start looking for a nicer and more expensive home to flip. It still has to be one that you can be approved for a mortgage on; unless the seller is willing to carry the mortgage,in which case you wouldn't need to qualify which is another good scenario to look for. So let's say you find another property for $300,000. You put down 5% ($15,000) and the rest is financed either through a bank, or by the seller themselves. Now do the same thing over again. Make it pretty, without spending much if anything. Re-list and try to make at least 10% net profit.
  7. Repeat the process a few more times. Chances are strong that the most you'll be able to make on a flip is about $100,000. Beyond that point it can become very difficult to flip, as you want to stay in the 3 bedroom, 2 bath homes that the majority population is buying so that you can move the home fast.
  8. Continue the process for a second year. Start to flip homes continually and try to make between $50,000 to $100,000 per flip. Now you have $300,000 to work with. Now that you have some serious cash to work with you're ready to join the big leagues.
  9. Find a few key properties, such as small walk-up apartment buildings, or commercial real estate such as retail bays, or even businesses to buy. You need to be very careful and do your homework because this is what will move you into owning income producing assets that will take you up to and beyond millionaire status. Shop around and try to secure properties for as little of that $300,000 down as you possibly can. Go to realtors and tell them who you are, have a business card, a company name, and maybe even a website made up so that you look like a professional. Tell them you're looking for commercial or residential real estate in the form of small apartments, retail bays, strip malls, etc to invest in and that they should send you any offers that come available. Provide your business card with all your contact info, especially fax and email. As listings come in from them and as you check your local commercial mls listings you'll find properties.
  10. Start to place lots of offers, offering very little down out of that $300,000. Try to go for lots of offers and try to average placing only 10% down on each property with the seller carrying a second mortgage, plus a first to cover the rest. That means that your $300,000 can leverage $3,000,000 dollars worth of apartments and commercial real estate. On average, that should generate for you approximately $10,000 to $15,000 per month in positive cash flow, plus another $8,000 to $12,000 per month in equity build up on those properties. With that kind of money coming in, you can start to afford to buy more buildings. At this stage you can still flip homes but it's kinda optional.


Warnings


  • Highly leveraged properties are some of the higher risk properties. Do all the research you can to determine if leveraging your properties is the best strategy for you.
  • Consider the housing market in your location BEFORE you begin this plan. Currently the housing market is slowing (to a near standstill) in many locations and properties listed in them are sitting on the market for months. If your location is one of these slowing markets you'll have a GREAT opportunity to buy a house at a bargain, but you'll have a tough time trying to sell it at all and forget about making a quick $100,000. on it.
  • Read and study all the courses you can on flipping homes and buying apartments with little to no money down. Maybe you can get starting in even buying rental properties sooner than you think.
  • To sit around and not do this means: You could work 9 to 5 for the rest of your life just to get by. Be dead broke or dead at age 65. With no equity to help your kids in life. And you'll be stuck in that 1 bedroom apartment forever. So don't get stuck in the mold. Break free from it by building up Income Producing Assets starting today by getting into a home and using it as a springboard to buying and selling, and then eventually buying and holding real estate assets.


Things You'll Need


  • Desire to have more in life
  • A basic foundation laid: IE: job, car, apartment, computer
  • 1 hour a day to work on this
  • Start to improve your credit if it's not very good.
  • Carlton Sheets has a great course called "No Money Down Real Estate". Also Dolf Deros has a course as well which is very good which you can pick up at Chapters or any online books store.

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