Buying a home in todays market

PMI or Private Mortgage Insurance is a policy which protects the lender who loans money, at a high loan to value, in case you default. Whenever you borrow more than 80% of the price of a home that you are purchasing or refinancing lenders will usually require a PMI policy. The policy is usually paid by you when you make your monthly mortgage payment. The monthly PMI cost is determined by:

1. The type of loan you receive

2. How much of the value of your home you finance above 80%

3. Your loan amount

Your Exit Strategy ties directly into why invest in real estate.

Many would be investors say I want the property to generate cashflow. Others say I am looking for appreciation and still others say I'm interested in flipping the property.

Everyone of these types of investors need an exit strategy.

Why invest in real estate?

To answering question one from our last blog entry you have to ask yourself what investment vehicle can I get into and what kind of a return can I earn?

Three of the most popular investment vehicle available to almost everyone are:

1. Invest by putting your money into a cd or moneymarket account

2. Stocks or mutual funds

3. Real estate

When you choose to invest in real estate it is critcle that you first formulate your goals. In order to create your real estate game plan you need to have planned objectives.

Real Estate offers potential appreciation, monthly and sometimes weekly cashflow, great tax advantages and my favorite, the ability to use other peoples money for my investments. Step 1 to begin investing in Real Estate is to answer these 10 questions.

When I visit with local REALTORS who work with investors or with the investors themselves everyone is on the same page. This is a fantastic time to buy real estate. I have many investors who are pre-approved just searching for their next aquisition. This past Saturday I turned on the television in the afternoon and I saw an infomercial saying the same thing. The infomercial was done by Dean Graziosi. I guess he has been on telivision for years but this is the first I heard of him. Don't spend alot of time watching TV. Anyway,this is a Great time to buy real estate!