Real Estate Strategies to Consider in a Financial Freedom Plan

Everyone wants to be independent, and while there are some ways to get there, the best way s real estate.  It is one of the most lucrative ventures, but the thing is financial freedom is different from everyone.  For some, it might mean a good job that earns more money than they need, allowing them to buy better items as a result. For other people, it is being able to live without debt bothering them, giving them a peace of mind.  Some want a number to be that, a nest egg that they desire so that they can live the rest of their lives without money running out.  But, there are those who believe passive income they cant’ outlive is the answer, and they let their money work for them without putting in the hours.

You’ll need to take on the financial freedom that is based off what you can buy in terms of houses in a given year, and how many you should buy annually. If your goal is the dream lifestyle, you’ll need to work out what this would cost, if you’re looking to replace an income, the freedom number is a pre-taxed income, and then you can calculate how many properties that you’ll need to achieve this, and it’s dependant on the investment strategy that you’ll use.


To make a good strategy, is a good thing and you should know that there are many different strategies to get financial independence, and you can do this in the short-term, as in the case of flipping houses, but there are others that work better, and we’ll talk about what those are.

First is cash flow through properties, which is rentals basically.  You need to look at the freedom number based on the relation of the rental property. For example, if you want to do 60K in a year, you need to have 5K a month, and if it does earn you 500 a month after expenses, that means you need 109 properties to do this.

Then there is buying the property outright, but there’s no mortgage or interest.  You purchase properties, appreciate in value, and determine what you sell off and what you keep, and from there, you can rent out, renovate, and update.

You can also live off sales profits, which is purchasing a home, and while your focus is how much they don’t bring at the moment, it doesn’t matter. The idea is to let them grow in value so that when you retire, you sell them off and live that.  you’ll need to plan how much property you need to purchase though.

Then there is living off equity, which is similar to the last one, but instead of selling to get the funds, you borrow an equity loan against the current one that you have, so you rent them out, and the more you amass, the more rent that trickles in, growing the equity, and from there, if you borrow against, you can live off this.

Finally, there is owner financing, where you charge the buyers and interest over the course of a period.  It has shower payment period s than your normal mortgage, but with higher interests, so instead of selling off properties, you get to enjoy the accrued interest that’s there.

The best thing to do is to figure out what works for you, whether it be one singular one, or a combination of both of these strategies. Whatever it might be, you should make sure that you’ve got the freedom number as the guiding light for this, since this will show you how many properties you can live off each year.

 

How to create Asset Protection

Real estate asset protection is what the rich real estate investors do. They don’t take the same risks, but instead, they use the law to ensure maximum advantage. It’s not sleazy, but instead, it’s using the rules that are available to ensure that you get the most advantageous situations. Here, you’ll learn how to create the best leverage in a lawsuit, and how to protect yourself.


Many people don’t realize that there is a tool that is not used, which is a contract that will favor you if a deal goes sour and litigation may happen. We don’t want that to happen because it is expensive, but instead, we form a contract that gives insane amounts of leverage to settle a lawsuit quickly. The way for you to protect yourself in the event of any lawsuit, whether you’re the one suing or you’re being sued, is an LLC. These are what will protect you, and we’ll tell you how.

First, you should make sure any remedies are in the document. This prevents you from having to use complicated legal remedies. If you’re buying the real estate, and it goes bad, do you want the property or the money. If you want to get the property, you should make sure there is a “specific performance” clause there. Otherwise, you’re left with the suit for damages and money, and you have to prove the damages.

Unless you were getting a lot on the property through the way you show this is liquidated damages, which is a clause that states that the number of damages in the case of the breach of the contract, especially if the other side backs out. For example, you could say in this that if the seller refuses to execute this sale after the buyer gets financing, then the seller is liable for the liquidated damages up to $40,000. This should be one-sided so that the buyer is the only one with rights, and you can get more leverage over the seller since they have more to lose. Many may balk at this, but you can counter with this by asking them if they have any intention in backing out of this deal after you’ve put all this money into it. This clause will ensure that they won’t, and it gives you much more confidence if they know that you’re serious. It also opens the door to negotiation about what amount of damages are agreed upon between the two of you. If litigation does happen, it will really help the attorney.

Remember that every time you feel a deal is about to go bad, be prepared for lawsuit. Even if you don’t believe anyone will sue you, an LLC is used for protection. You may not be sued either, but you may have to sue someone, and you put yourself at risk. In the US, the prevailing party will get attorney fees, and you’d be surprised that the damages could be only a dollar, but since the other side did prevail, they could get up to 30K in attorney fees, so it can bite you.

The LLC is essentially the plaintiff instead of you. Since the LLC is the plaintiff, they get the attorney fees and damages, and they only look at the LLC. The cost for a new LLC is much cheaper than paying off a judgment, and remember that if a judgment is filed against you, it does appear on the credit report, thereby harming the score, so in essence you’re in the borrowing business to leverage the dollars with the bank, and if done in a personal sense it does hurt us.

You shouldn’t ever really do anything without having an LLC. The LLC is a way to help protect your assets in business dealings. You should only sue if it’s a last resort, and you can only sue if you’ve interacted with someone, so if you want to insulate yourself from lawsuits, you have to act like a business, and by creating an LLC that has little to no assets, it creates a shell. Since the LLC is made of the communications and the contracts, that’s the only entity people will go after. So if a lawsuit does happen, the worst case scenario is a destroyed LLC, which is not as bad as you may think.

LLCs can save you, and it’s the best means to employ asset protection.

Trump administration set to dominate U.S. housing finance

Speculations
Trump organization set to command U.S. lodging money
There will be an initiative vacuum to fill
September 5, 2018 Jacob Gaffney

September 6, 2018, marks the 10-year commemoration of the Federal conservatorship of Fannie Mae and Freddie Mac. By the start of one year from now, the Trump organization is probably going to wind up the overwhelming power administering the whole country’s lodging account framework.

What’s more, here’s the secret.
For one, Congress underneath the Obama Administration needed political will to attempt to exert any change in our space. This isn’t an issue with the Trump organization.


At the point when Mel Watt, the executive of the Federal Housing Finance Agency, which administers Fannie Mae and Freddie Mac, completes his term (or is constrained out sooner) in January, President Trump can designate his substitution.

In addition, the pioneer of Fannie Mae, Tim Mayopoulos, will leave toward the year’s end. Also, now, Freddie Mac’s CEO Donald Layton has affirmed he’ll be venturing down one year from now.

This gives the present organization a significantly bigger extension to direct the terms of lodging change. Also, what might such change resemble? The political disruption in between the white house and trumps delegations forgoing further orders.

As we’ve canvassed in Housing Wire, Trump expects colossal lodging change sooner rather than later. Concerning the legislature supported undertakings, the organization is against proceeding with the outsized job they played in the nation’s home loan back framework and supports substantially more rivalry in the home loan advertise.

And keeping in mind that it might be contended that picking the substitution to Watt would be sufficient, it positively doesn’t hurt that Fannie and Freddie appear to get new administration.

Layton and Mayopoulos were both kind enough to consider me a few times each year amid their rules. We never talked about legislative issues and both asserted they work completely under the protection of the FHFA.

In any case, upon more critical look, as in my Housing Wire magazine profile (paywall) of Mayopoulos, there is a lot of progress every effect at their organizations.

On the off chance that there is at last a president willing to consider lodging change important, as I trust the present president seems to be, at that point having the ear of everybody in control will place Trump in the most grounded position ever to leave an enduring imprint on lodging account.

Home equity fails as an investment

Home equity fails as a speculation

Such a large number of homeowners can’t tap it

September 14, 2018 Jarred Kessler

Societal perspectives have molded us to take a look at purchasing a home as a project. Placing cash into a home loan is vastly improved than discarding it on lease, isn’t that so? Possibly less nowadays.


The secret to home equity being a practical project is that the financial professional can get to it when they require it. Since that cash has a place with the homeowner, it appears to be likely and reasonable that they ought to have the capacity to get to it freely, and there are a few advance items available today that do only that. You even get the chance to keep the house. The issue with these items is that not every person fits the bill for them, abandoning a few homeowners’ developed equity caught.

Free and simple home loan capability prerequisites prompted the home loan bubble bust, causing the subsidence in 2008. Subsequently, banks fixed their prerequisites, and that doesn’t simply apply to new home loans.

Terms on HELOCs, home buybacks and refits taken care of, as well. This brought about restricted access to equity for a decent segment of homeowners except if they were eager to offer. This overwhelming circumstance prompted the approach of items that enable homeowners to get to equity by offering their home, at that point enabling them to rent it back.

Indeed, even high equity homeowners may experience difficulty getting to their equity because of poor credit. They basically don’t meet all requirements for the conventional equity-tapping alternatives once budgetary hardship is acknowledged – a standout amongst the most well-known reasons individuals swing to what was envisioned as a solid scheme accessible to use freely.

The credit prerequisites for by far most of equity-tapping choices don’t consider the way that individuals have bounty in resources. Loan specialists frequently depend on FICO score as the end-all-be-all, and low scores are at last leaving numerous homeowners in a sway.

Costs are expanding and compensation are inactive, and developing further separated each day for a ton of the U.S. populace. As that hole develops, more individuals are thinking about tapping their home equity to meet their budgetary commitments, however it’s not as straightforward as they’d possibly envisioned.

Ideally, they know about the strict prerequisites of current alternatives and hope to pull their equity before money related inconveniences close the entryway on more regular equity-tapping credits.