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Black Hills Spruce
Did you know that Black Hills Spruce trees have dark, dark brown
bark and dark, dark green needles which are their leaves. From
afar, it takes surprisingly few of any evergreen tree to appear
black. It takes even fewer of the Black Hills Spruce...
Fencing Options for Your Home and Property
"Good fences make good neighbors," wrote a beloved American poet decades ago. There is some truth in the idea that some of us function better when we know and respect common boundaries. This can be especially true when we put up fences in our lawns...
Home Safety Tips: Arm Yourself Against The Threat Of A Break-In
(NC)—In 1999, Statistics Canada reported that there were approximately 92,485 break and enters reported to police, however, some of these crimes remained unreported. Property crime losses ranged from little or nothing of value to materials...
Is a Vacation Home Right for You?
Many of us dream about owning the vacation home in the Mountains, or on the Lake or Ocean. A place where one can retreat periodically from the hustle-bustle of everyday life. However, for those who do achieve the financial resources to make such...
The Lease And Purchase Option
If you have an investment property, should you rent it or sell it? The answer to that question is that you should do both. If you have lots of time on your hands and are handy with tools, you can choose to rent out your property. However, if you...
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Good Credit Scores = ROI Profits For Real Estate Investors
Strong credit saves real estate investors money on mortgage finance costs. A good credit score, along with other credit and mortgage qualifications, means that investors can pay lower fees for financing, such as points and interest charges. Also, good credit scores help you avoid garbage fees associated with non-prime loans.
However, the real money making difference for real estate investors comes into play in the return on investment (ROI). When you build up your credit score over 720, you open the way to finance multiple investment properties using other people's money. Today, you can get investment property financing for as little as 5% down when you meet the qualifying credit requirements. This means that your ROI on your cash investment for the down payment can be significant.
For example, let's take a home I found in Bradenton, Florida. Built in 1999, this 3 bedroom, 2 bathroom, 1600 square foot home looks like a great buy for only $219,000. Assume that the property could be purchased for $215,000. With strong credit, the 5% down cash investment of $10,750 buys into the appreciation value
of $215,000. A lower credit score would mean that you'd have to put 10%-25% down or more, which lowers your return on investment. You would need $21,500-$53,750 down to buy into the same $215,000 appreciation investment. In this case, your ROI for your cash outlay would decrease significantly.
Of course, other factors like carrying costs affect your investment capabilities. The point, get your credit score over 720 so that when you're ready to buy investment property, you get the best return on your money.
Copyright © 2005 Jeanette J. Fisher. All rights reserved
About the Author: Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, and other books, has researched mortgage credit qualifications and credit scores to finance multiple investment properties. For free "Credit Tips for Mortgage Financing" report, see http://recredithelp.com/
Source: www.isnare.com
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