Contrary to popular hype, getting started for retirement late is not a crisis – as long as the right plan of action is put in place. One increasingly popular source of retirement income is the reverse mortgage. Although we typically think of a 401(k) or an IRA when we think of saving for retirement, a reverse mortgage allows you to access the equity you have already built in your home as a source of income. This makes a reverse mortgage an option if you are looking to save for retirement or pay for a home improvement, health care expenses, or to support the transition to a long-term care facility. How Does a Reverse Mortgage Work? A reverse mortgage basically operates in the same way a traditional “forward” mortgage is negotiated with a lender. However, instead of paying a monthly payment to the lender, you…

Many of us have noticed some changes with our credit cards lately. In an effort to protect consumers, the credit card industry has been forced to make some changes. We saw how credit card cash advances and advance tax refunds brought money problems to many households. Fortunately, some of the changes coming with the CARD Act will help consumers avoid problems that can lead to serious and long term financial trouble. On the other hand, creditors are finding new and creative ways to remain profitable. Overdraft fees At one time or another, most of us have been unfortunate enough to have mismanaged our checking accounts and been charged an overdraft fee. The Credit CARD Act is severely limiting banks’ abilities to charge these fees. As of July 2010, consumers will have to opt in to be able to overdraft using their debit cards. Balance transfers…

Before we discuss deal terms, let’s discuss when you should ask potential investors about “deal terms”. This applies to Hedge Funds, as well as private equity firms and venture capital firms. I always recommend that my clients prepare a separate Executive Summary to save them time screening potential investors and to protect some of their confidential information. You can weed out funding sources who will waste your time by first sending them your Company’s Executive Summary instead of your full Business Plan. The time you spend working on raising capital and meeting with potential investors is valuable. Use it wisely and try to find your best candidates for funding quickly. Concentrate your efforts on them. Remember, venture capital firms usually focus their funding efforts on start-up companies and private equity firms usually focus their efforts on existing companies. Some very successful Hedge Funds…

Many people have witnessed the sudden rise in the use and interest in wireless phones. This popularity is often attributed to the convenience that cell phones provide us. Of course, through wireless phones, we are able to constantly communicate with our loved ones, friends and business partners. Cellular or mobile phones are highly regarded as helpful tools for communication. They offer us the capability to call and send short messages to other people, through effective and affordable phone service options. The most common phone service alternative we are all familiar with is the prepaid cell phone service But, is it wise to purchase just any wireless prepaid phone service? The answer to this query is a big no. You should think about several things before you finally settle for a prepaid cell phone service. This is critical since your choice will determine whether or…

With market analysis, you need to define what your price range is. Don’t tell me you’re a real estate investor and you buy anywhere from $10,000 to $45 million. That’s not meaningful to anybody, and particularly not as a private lender. It doesn’t mean very much if that’s what your range is. Define Your Price Range If you’re going to be buying single-family houses, I want to hear, “I’m going to be buying anywhere from $75,000 up to $150,000.” That’s a fairly nice range. Or, “I’m going to be buying single-family homes in nicer communities for $400,000 to $600,000. I’m not doing the low-end stuff. I’m not doing a little bit of this. I’m going to be buying bread & butter, medium priced homes.” If you really want, that’s fine, you can do high-end stuff. Just say, “I’m…

I have many students contacting me with questions about organizing a Private Lending Credibility Kit but, there are a few questions that stick out in my mind and are frequently asked. Can I use my resume as my bio? I guess a resume he was referring to would be a job resume. I would not recommend that. Clearly, a bio in the way I’m thinking about it is more of a story. It’s more of an explanation as to why you’re an expert in the real estate investing field. It is not a dry set of facts about where you’ve been, what schools you went to, what jobs you’ve had, and what dates that you’ve had those jobs. I’m not saying you can’t use a resume in there, but I think a bio is more of a story, an explanation. It’s very powerful when…

Lease options are a great concept, but the reality is they don’t work too often in the real world, particularly right now, because if anybody could not have gotten a mortgage a year ago – I think John is the mortgage broker – if they couldn’t get a mortgage a year ago or 18 months ago, they’re sure as hell not getting one today. The whole lease-option concept right now has some problems and some issues. Lease with Option to Buy By the same token, if you wanted to allow somebody to come in and rent it say for five years, with the option to buy it at some point, that would be a logical and very valid business plan I would think. Your private lender would understand that. You would explain to them, “We will rent it to them at $1,000 a month, but they…