Real Estate Essentials – Passive Income From RE Investments

Learn How You Can Explode Your Passive Income Through Mastering Real Estate Investments

Real Estate Essentials – Explode Your Passive Income Through Mastering Real Estate investments is an eBook that is aimed at helping you become successful by investing in real estate. This is research based on expert advice and firsthand experience of real estate investors.

And today the book, from which this post was extracted is yours for the keeping. Yes, it’s your FREE gift simply because you are a visitor to this, the REAMS blog-site.

Following is the excerpt from chapter 2 of Real Estate Essentials – Explode Your Passive Income Through Mastering Real Estate Investments

What to Consider Before Investing in Real Estate


In chapter two, we look at the factors to consider before real estate investment. There are many benefits of this kind of investment. However, you just can’t rush in and put your money in it before making a few considerations.

  • Capital
  • Returns on investments
  • Analytic abilities
  • Investing your time
  • Stress Management
  • Research
  • Market Research
  • Return rates
  • Type of investment to make

There are people who are well suited for real estate while others may not be able to handle the pressures and stresses that come with this kind of investment. You have to learn about what to expect in the industry so that you can gauge which category you fall in.

Remember, even if you don’t have what it takes, maybe you can work on this. There are things that you can learn with time. There are also solutions to some hurdles that may be presented by real estate investments.

Think About This!


This is one of the key considerations to make before investing in real estate. You will need to have adequate capital in order to make your investment. Even if you save a lot of money, probability is that you will require further funds such as loans.

To invest in real estate is not easy because properties normally cost a lot. In addition, apart from buying the property, you may have to do some repairs or renovations. You have to ensure that it is in good condition so as to get a good quote when you decide to sell it.

Apart from the cost of buying property, there are also additional transactional costs that you will incur. For instance, there may be a brokerage fee. There are also taxes that have to be paid. You can look for loans or other means of raising the capital well in advance. If you don’t manage to do this, you should then consider alternative investments.

Returns On Investments

Investing in real estate doesn’t guarantee overnight success. If you are looking for an investment that will give you returns in just a month or two then this isn’t the right investment for you. Real estate investors know that you have to be very patient in order to get your returns. You also need to set realistic goals.

If you try to rush your investment, chances are that you will make losses. Desperation may force you to make bad decision such as selling your property for less money that you would have if you had taken your time. Real estate investment can be very profitable but it takes time. In addition, it also takes a lot of hard work. This is not the kind of investment that you will make and just wait for returns to materialize. You will need to work hard so as to succeed.

Time Investment

You should be willing and able to invest both time and effort before getting into real estate investments. There are many people who have managed to invest in real estate on part-time basis. This means that they have full time jobs but still have to manage their investments. This doesn’t mean that they don’t have to give adequate attention to the investments though.

It is good to try and see if you can spare adequate time in advance. Just test yourself like you would if you had already made an investment. You can use sometime to consult with people in the industry and carry out some research. This will allow you to determine how much time you can invest in real estate. If you try out this exercise and find out that you are unable to spare sometime from your job, then you are not ready to invest in real estate.

Click this link to get Your FREE Copy of REAL ESTATE ESSENTIALS eBook!

More Relevant News

Wells Fargo To Exit Wholesale Channel After Fair-Lending Accord

From Bloomberg, an article written by By Dakin Campbell and published Jul 12, 2012 11:58 AM ET


“Wells Fargo & Co., the largest U.S. mortgage lender, said it will stop funding loans originated and sold by independent mortgage brokers after settling a federal fair-lending investigation.”

“The company made $7.4 billion of mortgages through brokers in the first quarter, the most of any lender and 21 percent of the industrywide total, according to Inside Mortgage Finance, a trade publication. The loans made up about 5 percent of the company’s total, according to the statement.”

203k Construction

The FHA-insured 203k rehabilitation program permits the new construction of homes that have been demolished or will be razed, provided the existing foundation system is unaffected and will still be used. The complete foundation system must remain in place. This feature of the program makes it unlike other traditional mortgages and standard “New Construction” mortgages for the financing of one-to-four family residential properties in many ways.

Most new construction loans start with architectural specs and plans, environmental reports and, most importantly, the creation of a foundation upon which to construct the new home. Professional builders, professional engineers and local zoning inspectors are engaged to insure that the home, when finished will comply with relevant local ordinances thereby making it possible for the issuance of a Certificate of Occupancy.

At this point the purchaser/builder will be issued legal documents declaring him/her the owner of a legally constructed residence. That’s a very brief description of the new construction process which gives you a basic idea of what is involved. Most traditional mortgage financing plans, including the FHA-insured 203b program (sort of a big brother to 203k), provide only permanent financing.

What this means is normally lender will not close the loan and release the mortgage proceeds unless the condition and the value of the property provide adequate security. Therefore when rehabilitation is involved, the lender will insist that all rehab work be completed and improvements finished to meet lender’s required property standards before a long-term mortgage is made; especially when major construction was being done. This is a problem that has caused many a real estate contract to be cancelled (dead deals) for quite a long time.

Under the 203k guidelines and procedures, each situation discussed in the previous two paragraphs is addressed. In fact, the 203k program was designed to address those situations by providing the financing necessary for a newly constructed home on an existing foundation system that is unaffected, as well as a house in need of repair or modernization, with just one mortgage loan, at a long-term (30 year) fixed rate to finance both the acquisition and rehabilitation/new construction of the property.

203k funds are based typically on the projected value of the property with the work completed (the after-rehabilitation value).


Regulations. The provisions of Section 203(k) are located in
Chapter II of Title 24 of the Code of Federal Regulations under
Section 203.50 and Sections 203.440 through 203.495.

If the government can’t run business, how come business always run to the government for a bailout when it runs into trouble?
FHA-insured mortgages, government run for 75 years. Not too shabby, huh?

Housing Crises: When Every Penny Counts!

Financing solutions

Two mortgage articles I wrote early last year dealt with possible solutions to some of the problems that existed in the real estate and mortgage industry – see Government Program Could Ease Sub-Prime Mess 01/17/2009, and Mortgage Offers New Expected Yields 03/10/2008 – for more on those articles which, as with most of my articles and blog posts, dealt with the FHA-insured financing programs for residential one-to-four family homes and mixed-use properties (203(b), 203(k) and HECM reverse mortgages); but based on my objective which is to help home buyers and homeowners find affordable, practical methods of financing, it is necessary that I write something about the latest affordable housing program, Making Home Affordable, announced by the Administration early this year, even if it focuses more on Fannie Mae & Freddie Mac than FHA.


In accordance with a July 1 Press Release, HUD Secretary Shaun Donovan announced the expanded eligibility for the Making Home Affordable program announced by the Administration on February 18, 2009. The Secretary’s announcement makes the program available to borrowers who are up to 125% underwater (higher mortgage balance than home value) in the Las Vegas area. That community tops the list of those “hardest hit” by the mortgage crises and thus served as an appropriate venue for announcing the 20% increase in eligibility over the original maximum of 105% announced in February.

The Federal Housing Finance Agency has provided authorization for borrowers with mortgages owned or guaranteed by Fannie Mae and Freddie Mac to refinance their loans according to terms of the newly modified Making Home Affordable refinance program which is expected to increase the number of homeowners who will be eligible to participate. This announcement is viewed by many as a positive step in addressing the mortgage financing needs of many hart-hit communities.


The opinion of this author when the program was first introduced in February was that it didn’t go far enough to address people’s financing problems because there was already a mortgage program on the books that allows for 110% LTV financing, which included home repair costs of up to $5,000, and which I covered in several of my articles under the term FHA 203k, so I could not get very excited about a new program that allowed for less than 110%, even though it applied primarily to Fannie Mae & Freddie Mac (under FHFA authority as of last Sept), instead of HUD/FHA.

This latest initiative though, should serve to make a significant difference in the mortgage refinance efforts of those homeowners in an “underwater” mortgage situation, and it is one that this author can certainly embrace and, yes, get excited about. I had intended to start this article with the following oft-repeated terms, but found 125% financing much more appealing:

“When push comes to shove”; “When the rubber meets the road”; “When the going gets tough…” You know the rest!

According to Secretary Donovan, “…The president’s Making Home Affordable plan is already helping far more families than any previous foreclosure initiative and with today’s announcement we will extend its reach even further.” With that objective, it would seem to this author that homeowners in all parts of the country can look forward to more positive results in their refinancing efforts.



Portions of this article are based on information obtained from the Making Homes Available Web site at also available on HUD’s Web site

Running Business

If the government can’t run why is it that business always run to the government for a bailout when it runs into financial trouble…like a recession?
FHA-insured mortgages… Government-run for over 75 years! Not too shabby, huh?