Category Archives for "Lease Options"

Bank Loan Modification – Three Myths About Cancelled Loan Modifications

What most people don’t know, though is that in many cases, it wasn’t the lender’s fault.

Myth 1: Most lenders arbitrarily cancelled trial loan modifications to suit their own purposes

At the beginning of the MHA program, the Obama administration understandably wanted to make some fast progress helping people with their mortgage situation. They therefore required lenders to grant trial loan modifications to nearly anyone that signed up, regardless whether or not they were qualified. Lenders were required to grant the trial modification without income documentation or any evidence that the borrower would be able to make the modified payments.

It wasn’t until the time came to convert these loan mods from trial to permanent that the problems began. When lenders requested documentation that would support the income needed to stay current on the modified payments, many borrowers couldn’t provide it because they had lost their jobs. Also, many borrowers had failed to make their trial payments as they agreed to, causing the loan mod to be forfeited. The reality is that in nearly all of the trial modifications that were cancelled the borrowers would not have qualified in the first place.

Myth 2: Lenders are only starting trial bank loan modifications to get a few more payments from homeowners before foreclosing on the property

It’s true, there are many stories in the media about borrowers that have made their trial payments as agreed only to have their trial modification cancelled and the home foreclosed. But in the big picture, those are rare occurrences, and usually a product of poor communication between different departments at the lender. Nobody ever talks about the successful cases. The reality is that lenders don’t want to repossess homes. They are in the business of lending money and generating interest income. If they have a chance to turn a non-performing loan into a loan they are confident will perform for the remaining term. Only if the lender doesn’t believe the borrower will stay current will they decline the permanent loan mod.

Myth 3: Only a few lenders are participating in the MHA program

The reality is just the opposite. Nearly all of the major lenders are participating in MHA. If your lender sells loans to Fannie Mae or Freddie Mac, they are required to participate. Go to our list of banks and lenders participating in the MHA bank loan modification program to see whether your lender is accepting loan modification requests.

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Lease Option Real Estate Investing

A real estate lease option contract is a combination of two documents.

The lease part of the contract is where the owner agrees to let you lease their property, while you pay them rent for a stated period of time. During the lease period, the owner can not raise the rent, rent it to anyone else, or sell the property to anyone else.

The option part of the contract represents the right you purchased to buy the property in the future, for a specific price. If you decide to exercise your option to buy, the owner has to sell it to you at the negotiated price. The option part of the contract obligates the seller to sell to you during the option period — but it does not obligate you to buy. You are only obligated to make rental payments as agreed during the lease period.

When the lease option contract is written and structured properly, it can provide tremendous benefits and advantages to the investor. If the lease option includes the “right to sub-lease”, the investor can generate a positive cash flow by renting the property to a tenant for the duration of his lease, or lease option the property to a tenant-buyer for positive cash flow and future profits. If the lease option includes a “right of assignment” the investor could assign the contract to another buyer for a quick profit.

Lease option real estate investing, is a flexible, low risk, highly leveraged method of investing that can be implemented with little to no money.

High Leverage

It is highly leveraged because you are able to gain control of a property and profit from it now–even though you don’t own it yet. The fact that you don’t own it, also limits your personal liability and personal responsibility. Only if you decide to purchase the property by exercising your “option to buy”, would you take title to the property.

Little to no money

The real estate investor’s cost to implement a lease option contract with the owner requires little to no money out of pocket, because it is entirely negotiable between investor and owner. Also, there are a variety of ways the option fee can be structured. It can be structured on an installment plan, balloon payment or other agreeable arrangement between both parties. The option fee can even be as little as $1.00.

In order to secure the property for purchase at a later date, tenant-buyers typically pay a non-refundable option fee of approximately 2%-5% of the negotiated future purchase price to the seller. Depending on how the lease option agreement is written and structured, the investor could possibly use the tenant-buyer’s option fee money to pay any option fee owed to the owner.


Lease option real estate investing is a flexible method of investing because the terms of the agreement, like payment amounts, payment dates, installments, interest rate, interest only payment, balloon payments, purchase price and other terms are all negotiated between seller and buyer. Responsibilities of both parties are also negotiable. For instance, if the investor doesn’t want to act in the capacity of a landlord, he could specify in the lease option agreement that tenant-buyer will be responsible for all minor maintenance and repairs and the original seller will remain responsible for any major repairs.

Financially Low Risk

It is low risk financially, because if the property fails to go up enough in value to make a profit, you have the purchased the right to change your mind and let the “option to buy” expire. Even if your tenant-buyer decides not to buy the property, you have profited by a positive monthly cash flow from the tenant-buyer’s rent payments, and upfront non-refundable option fee.

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A Good Investment Strategy to Make Money Investing

Good investment strategy does not rely on speculation or trying to time the markets. No matter what you hear, no one has a proven and consistent record in market timing that beats the markets significantly over the long term. If they did they’d make a ton of money investing, and they’d hide their secrets, not share them. So, why not settle for a good investment strategy that makes only one major assumption: that the Malaysia will grow and prosper over the long term?

Investing money in the three areas above is simple with mutual funds. To lower your risk and add flexibility to your investment strategy, add a fourth fund type called a money market fund. At today’s interest rates these might not look like a good investment, but they are safe and earn interest that tracks current rates. Getting more specific, by owning just 4 different funds you can put together a good investment strategy for 2016 and beyond and make money by investing in America’s future. In order from high safety to higher risk and greater profit potential: a money market, intermediate-term bond, large-cap equity-income, and equity real estate fund is all you need to own.

A good investment strategy to get your feet wet is to simply invest equal money in all 4 funds. Timing strategy requires no judgment calls or guessing. One year later and once a year after that, you simply move money around to make all 4 funds equal in value again. This automatically forces you to take some money off the table from your better-performing funds – and to move more money into those that didn’t do as well. The net result over time is that you are buying more shares when prices are down, are selling shares that are relatively expensive.

This is also a good way to make money investing over the long term while keeping a lid on risk. Simply buying and holding funds is not a good investment strategy, and has gotten many average investors in trouble in the past. For example, real estate funds were good investments for multiple years until they were nailed by the financial crisis. Had you owned them and just held on, by 2016 you could have had a significant amount of money accumulated and at risk there… resulting in big losses as a result of the financial crisis.

There’s more than just simplicity involved in what I am calling a good investment strategy for 2011 and well beyond. This strategy employs two of the only time-tested tools in the investment business: BALANCE & REBALANCE and RINGGIT COST AVERAGING. The first tool keeps you on track while keeping a lid on risk, and the second is the tool that works to lower your average cost of investing by having you buy more shares when prices are lower and fewer when they are high.

You can put a good investment strategy together with only moderate risk by owning just 4 different mutual funds. People make money investing over the long term with bonds, stocks and real estate; and the smart ones keep some money in a safe investment as well for flexibility. In years past, some folks simply got lucky and made money investing without a strategy. With a good investment strategy you won’t need to cross your fingers and rely on luck. If America prospers in 2016 and beyond – so should you.

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A Look Into Alternative Investments

What are alternative investments

Alternative investments are asset classes that generally don’t move together with traditional equity and fixed income markets. They usually follow their own cycles. As a result, alternative asset classes have a low correlation with standard asset classes; therefore they may help diversify your portfolio by reducing the overall volatility of the portfolio when traditional asset classes such as stocks and bonds are performing poorly.

Historically, alternative investments have been restricted to high-net worth individuals and institutional investors, but these days they are far more available to a wider audience. Alternative investments range from real estate to hedge funds to commodities and can complement a variety of investing strategies. However, they are designed to complement a well-founded portfolio rather than to serve as the focal point of the portfolio.

Most people are attracted to alternative investment because they may yield a higher return than traditional investments, but note that potentially higher returns also may carry higher risks with them. What’s important to note is that alternative investments may be more illiquid than their conventional counterparts – they cannot be sold readily like stocks and bonds – and some may need to be held for a longer time horizon. Additionally, there may be unique fees or tax consequences.


Including a small portion of your portfolio toward precious metals such as gold or silver may offset the performance of other assets in the portfolio such as stocks and bonds, because precious metals typically don’t move in tandem with conventional investments.

Gold is typically viewed as a hedge against inflation and currency fluctuations. So when inflation effects the purchasing power of a currency – say the dollar weakens against the euro – gold prices tend to rise. As a result, investors place their money in gold during economic and market downturns.

Investing in gold can be accomplished in several ways, including futures funds, exchange-traded funds, mutual funds, bars, and coins. Nevertheless, since precious metals make up a small sector, prices often change dramatically. This type of volatility can create opportunities for investors in the form of high returns but it can equally result in dramatic losses.


Real estate investment trusts
A popular type of alternative investment is commercial real estate. Until recently commercial real estate has been mostly inaccessible to retail investors and was widely enjoyed by high-net-worth individuals and institutional investors for its potentially higher yields and diversification attributes. Since the inception of real estate investment trusts (REITs), investing in commercial real estate has become available to wider range of investors.

REITs pool money from investors and invest the funds in properties ranging from office buildings to apartment complexes to hospitals and warehouses. REITs are offered to investors in two forms: traded and non-traded. Both offer exposure to commercial real estate assets.

Publicly traded REITs can be easily bought and sold on a daily basis on active secondary market. However, they tend to be more volatile.

Non-traded REITs are illiquid investments appropriate for investors with a long-term investment time horizon of at least 5 to 10 years. Non-traded REITs are not aligned with stock and bond market movements so they add great diversification to a portfolio.


Other alternatives
Alternative investment can also include assets such as art, gems, rare collectibles, and antiques. In addition, venture-capital funds are considered alternative investments. These alternative investments can help provide investors with added diversification and can help balance out performance across various market swings.

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The Basics Of Stock Market Investing For Beginners

Beginners need to start small, especially if stock investing is the first type of investing ever done. While something new is always exciting, it’s the overeager investors that may need to find a way to bounce back from losing money on bad stocks.

Understanding The Value Of A Stock

When you purchase stock in a company, you own a small piece of that company. This means that you also get a small share of the company’s profits. If the company thrives, your stock will thrive. If the company fails, your stock will suffer. That’s why people are constantly buying and selling different stocks. As a company starts to go downhill, the stock certificate has less value. To avoid losing money on stock market investing, many try to unload their stocks before a company goes bankrupt or out of business.

The same is true for a business that has what is known as hot stocks. This means that stocks in this company are in high demand because the return of investment is high. These stocks are usually more expensive because of the demand.

Understanding The Risks Of Stock Market Investing

There are a number of risks involved when playing the stock market. If you purchase 50 shares of a hot stock at 500 a piece, you are investing 25,000 in stocks that you hope are going to double or triple your investment. But if that company suddenly starts struggling, the resale value of your stocks could go down to 100 a piece or less, meaning that you are losing quite a bit of your initial investment.

Some people stick it out and wait for the company to rebound, while others sell immediately so they don’t lose their entire investment. Stock market investing relies heavily on strategic decisions and research in order for a person to be successful.

Understanding What Type Of Investor You Want To Be

There are investors who like to only focus on bull markets, when the economy is good, people have jobs, and trading is beneficial. Others like to risk the bear market, when everything is on shaky ground but the chance for a high return stock is still there. By knowing how you want to start your stock market investing, you can avoid being one of those cases that loses all of their money on their initial stocks.

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Emotions Don’t Work in Stock Market Investing

Investing in the stock market is a difficult proposition, and a decision which is supported by emotion for a majority of the people, and this leads to a process wherein people actually start having an innate conviction that quite probably it is not feasible to invest and win simultaneously. People normally act unreasonably and emotionally in places and proceedings where money is implicated, and additionally when they are involved with imperative decisions concerning money as well. The most noticeable facet of emotional stock market traders as well as investors is that they indulge in spreading affirmative news as they have already purchased a stock when they were investing in the stock. However, it is a proven fact that if emotions occupy a central position in the sphere of stock investing, it hampers your efforts to be objective.

Prior to investing in the stock, ensure that all the relevant decisions have been taken. In case you happen to have purchased a stock, assess the market charts, although they primarily bear optimistic and bearish displays on them, and this encourages a spurt of emotion. It is then rendered futile trying to make you comprehend that the optimistic indicators are more prevailing and the stock should be in a far more elevated rank. After all this is your primary anticipation from your investment, however your assessment on the results on the charts was somehow not quite that purposeful.

It is also worthwhile to comprehend that investing in the market should never be dependent on estimation which has been expressed in the varied public polls. In the frenetic world of the media, there is an absolute overabundance of display pertaining to useless reports pertaining to the economy as well as the stock market, and they are chiefly determined by the varied public opinion polls. It is quite difficult to stay abreast of the current news which are being displayed on the television, and then ensure that you are prejudiced by it and you should steer clear of making stock market investment decisions centered on what you have heard.

If you want your stint at investing in the stock market to be an unbiased and purposeful one, it is imperative for investors not to be taken in by what they have heard on the varied news channels when they are in the process of making important decisions pertaining to stock market investing. It is not impracticable that you might be in a position wherein you have invested in a bubble stock that is about to burst and this could occur at just about anytime.

It is worthwhile to be aware of the fact that emotions are detrimental within the sphere of stock market investing. It is advisable to maintain a balance so that you are not heartbroken when you suffer a loss and neither are you too happy when there is a gain. It is essential to make every effort for a proper balance when you are investing in the stock market.

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Trailing Stop: Tips and What You Need to Know When Engaging in Stock Market Investing

The first part of stock market investing is easy – and that is buying stocks. But the most important part of trading is knowing when to sell. How do you know when you should sell your stocks? Some people made grave mistakes of selling their stocks too soon when it is about to reap the upside or holding for it too long that it loses its value. The problem lies with an investor’s emotions and greed, as this is what causes them to hold on to a stock for a long time. The key to being successful in investing is to buy stocks with the full intention of selling it to make profit in the future using a strategy called trailing stop. This strategy helps you to have a good exit strategy in your investments.

In stock market investing, you should test the waters by investing in stocks that you think will be doing well in the market. After seeing the performance of these shares in the market for a time, you will see which ones are earning and which ones are losing value. These stocks become more expensive over time as it earns and the ones depreciate over time. Many people make the mistake of buying cheaper stocks because they think that they are getting a bargain, but in reality, these stocks are not performing well and you will end up losing money by investing in them.

A good way to know on when you should sell your stocks is the 25% rule. You should sell your stocks when it is falling 25% on its peak. If you purchase a stock at $50.00 and it doubles its value at RM100.00, you should only sell it when it falls down at RM75.00, which is 25% off its highest value. For stocks that you have invested in which are falling in value, you should sell them when they are also 25% off their original values so you can avoid losing too much money in them.

Remember, with the trailing stop strategy and these other simple trading tips, you can minimize the risk of losing money in stock market investing. All you have to do is follow this simple principle and you will surely reap big rewards in the shares that you are purchasing.

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Do It or Lose It: Stock Market Investment Simplified

Stock Market Investment:

It might sound intimidating idea to a novice but stock market provides tremendous opportunities to the traders and investors. The risky nature of the business might sound alarming to the hoi polloi but money lies mostly in the risky jobs. With careful planning and research you can minimize and control the risk factor as well.

Start with little money:

The best part of stock market investment is that it can be started with little money. Unlike real estate or retail business you can develop the business orientation at the cost of little risk. Investment in stock market can be started with as little amount as hundred dollars. Trust me or not but its all about landing into the market with a little money in your but realistic expectations of reasonable returns.

Do it as an amateur:

You don’t have to necessarily take it as full time professions rather take it as an amateur. Carry on with your routine stuff and invest in stock market along with it. All you have to do is pitch in a bit more effort and follow your stocks. So, it won’t disrupt much of your routine life and will earn you good many chances of multiplying your investment.

Easy to operate:

The virtual world of stock market is easy to access, making it remarkably smooth to follow your stocks. Back from your office, resting on the couch, sipping your juice and here you go, tune into any business channel and monitor your stocks. You can even have stock alerts on your cell phone and email which will help in making timely decisions and will keep you updated about the general market trend. There are many brokerage firms offering personalized portfolio which helps you keeping tabs on the market.

Ideal for long term investment:

Make up your mind that your investment will take some time to grow and there is no luxury of taking it out any time you want. I must reiterate the fact that your investment is fixed for minimum three to five years. Stock market denies the indulgence of pulling out your investment at your time of need.

You must wait for the ripe time to draw your capital out. So it is an ideal investment if you are willing to forego the investment for sometime. Even if the stocks are going down, don’t make hasty decisions; just be patient and watchful because that is way stock market works.

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Learning the Ropes of Stock Market Investing

Stock market investing is ever evolving because it encounters a lot of changes even by the minute. As with an actual market, the law of supply and demand also applies to the stock market as prices go up and down depending on how much are being bought and are sought after and how many are being sold by companies and individuals. One thing that you should know about stock trading is that if a stock is deemed expensive and is rising, this does not mean that it is always safe to buy and invest in them. Cheap stocks also do not mean that they are extremely unstable or volatile. Trading is actually quite a tricky endeavor so one should educate themselves constantly about the industry that they want to invest in for them to not waste their money. A lot of beginners are getting discouraged knowing this fact as there are lots of things that one should learn and master.

There are a couple of concepts when it comes to the actual stock market investing and there are three strategies under it. Choosing whether to go the route of short, medium or long term investments will help you in choosing the stocks that you should invest in. Short term investments is considered risky when compared to the other two as even small things can affect the stocks or investments in this strategy. If you want to do this, you must sink a lot of your time in monitoring the stocks’ performance and how much it opens and closes daily.

The medium term stock market investing strategy takes a bit longer to come into fruition and is considered complicated to delve into. Gap trading, Fibonacci trading and contrarian investments fall under this category of strategic investing.

The safest strategy to go into is the long term stock investments and they also give bigger profits as compared to the two. The consequences for this strategy however is that the pay off is considerably longer. Long term investments do not have a lot of risks and investors go into this to enjoy a regular income from their investments. You should be highly knowledgeable in companies and industries before you invest in a long term stock as your capital will be tied for a longer time. Keep in mind that investing is not just a light hobby but something that needs to be taken seriously and if you are considering on entering stock market investing, you should treat is as like your own business.

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Stock Market Investment

Going in literal terms, a stock market is a place for the trading of derivatives and company stocks, listed on stock exchange. The stock comprises of shares, commodities and so. As earlier said, ‘a risk cell’, this market is full of uncertainties and risks. Risks, to loose the hard earned money. Every investor invests in stock market with a perspective and motive to earn positive better results. The bulls and bears are the situations with which you may make some or loose some. The uprising in stocks is termed as bulls’ situation and vice versa.

As such, stock market investing is not a child’s play. The investing in stocks may be carried as a sideline business by an investor but the amount of knowledge needed to invest cannot be side lined. It demands a fearless, fiery and extensive knowledge to understand moods of the stocks. An intuitive person may succeed once but that does work for all time. All counts is the experience in this field along with the almighty luck. Yes, luck is also an important factor that moves on with an investor.

The stock market always has shocks and news in stock. No one can be sure about what’s next? The pressure of bulls and bears along with the fear of losing money and the predications and tips by the companies always adds spice to the happening world of stock market. One has to be familiar with the dictionary of stock’s world. What I mean is- the stock market has its own words to represent the situations and products. Bulls and bears being the example, one has to work upon the dictionary used in this market. Intraday, future and options (f and o’s) are mere examples of these.

Being aware of the fact that it is a risky affair to invest, thousands of people invest daily in the stock market. To provide assistance there are brokers available who try to get the best possible deal. Brokers are the people who work on percentage basis to fetch the best deal. Very often, the commission is calculated on the money invested. This commission, in turn, is known as brokerage. This amount has to be paid by each investor who does not posses his own pass to trade directly in stock exchange.

Well, only one thing is certain and that is change. Changes are always certain, so does the experienced stock world.. It has moved on to cyber space from the clattered, clumsy stock markets, which looks nonetheless fish markets. The evolution of Internet is the reason for the revolution in stock markets as well as other trading. It got the easy access feature along with the comfort of operating stocks from one’s office or home. The speedy technology acted as a catalyst to break the norms of stock market. It is no more an alien world for people. Rather, it got unearthed and the mysteriousness of this trading place just vanished. Now, people are comfortable trading online and the investors and their investments have increased three-fold. The bulls and bears are no more only confined to the creams rather it has skimmed to the commons.

Moreover, the technological support not only acted as middlemen rather it worked as a magnet which brought thousand of new faces to the stock market. The advances of online brokerages, online trading and online investing further jacked the boom in the stock market investment.

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