DC Fawcett Real Estate - Why investors need to use an IRA CD (certificate of deposit)

IRA is an individual retirement account; it is a method of saving money for retirement apart from 401(k) scheme.DC Fawcett Real Estate This plan offers tax breaks which makes this scheme preferable among investors. DC Fawcett explains on how to utilize this scheme efficiently.

Why investors should prefer IRA?

The IRA is a diversified account of an investor as he/she can make use of this scheme to invest their bonds, mutual funds etc. It can be used as a savings account or CD. There are two types of IRA namely, traditional and Roth IRA. The main difference between both the plans is tax factor.  If you avail traditional IRA, you pay tax when you withdraw in the later stage. In case of Roth IRA, you pay the taxes first and avail withdrawals without tax at the time of maturity. The certificate of deposit offers better rate of interest than a savings account in a bank.  The term varies from 6 months to 5 years. In order to overcome the drawbacks of inflation, the investors have to diversify the portfolio by stocks and bonds.

Points to be considered while availing IRA

Choose a FDIC -insured bank

• Not all banks are FDIC insured. Consult a financial adviser who has knowledge about FDIC and the policies. Make sure your funds are accumulated in a FDIC approved bank.

Withdrawal

Know about the perks of withdrawing the amount before the maturity, in case an emergency arises you need to know the amount you will be handed over with.

• Scammers offer IRA with a high rate of interest in order to bring in more investors, often the new investors fall into this trap as they aren’t much aware about the rate of interest usually offered.]
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Benefits of IRA CD

• A huge sum of money is insured through FDIC  insurance
• Investors can forecast the maturity amount and plan their retirement accordingly.
• Establishing an IRA CD ladder is easier than portfolio diversification.
• IRA CD ladder can save the a whole of fees paid during retirement
• These funds are accumulated to a tax-deferred account.
• These accounts can be started easily with or without the help of financial planner.
• They can be used as an alternative option, for e.g. stocks.
• Tax deductions can be availed.

Drawbacks of IRA CD

DC Fawcett complains about the issues faced by the investor when they avail an IRA CD scheme.

• Many investors tend to diversify their portfolio with stocks and bonds in order to save money for healthcare during retirement
• Inflation cannot be controlled easily; the money can be withdrawn by losing some percentage of money.
• The contribution is restricted depending on the age factor.
• Low rate of interest is offered if they start the scheme at the later stage of retirement.
• The money is locked for a substantial time and returns are low.

From the review,  we infer that there are both drawbacks and benefits of using IRA CD.  To know more about different types of certificate of deposit, please visit DC Fawcett virtual real estate investing club where blogs are written for investors’ purpose.

Conclusion:

DC Fawcett, a real estate professional has started virtual real estate investing club so that investors can get an idea about it. Entrepreneurs who are interested in real estate can make use of these blogs which will also help you out to stay scam free. The aspiring entrepreneurs can make use of DC Fawcett virtual wholesaling methods as it involves no risk and cash.

DC Fawcett Virtual Real Estate Investing Club Collateral And Home Equity Loans

Collateral option is preferred by the investors when the loan amount is huge. The borrower has to be in consent with the lender that he is allowed to take a part of the collateral for selling purpose in case the borrower fails to make the payment. DC Fawcett Virtual Real Estate Investing Club  Usually the borrower pledges his land and the borrower can expect a reasonable amount when he applies for the loan.

The collateral is used as an assurance from the lender’s perspective. It reduces the risk as he does not lose all his money when borrower falls short on his payment. The lender has all the rights to hold the borrower’s possession when there is a payment default, the possession can be sold and the amount can be used as reciprocal for the loan.

Instead of taking legal action and to avoid lengthy procedures, the lenders just sell off whatever the borrower pledges as collateral and make money.

Not only land, there are different types of collateral which is listed below.

The valuable asset can be in any form which can be made into cash when you sell.

• Automobiles
• Real estate
• Savings account ( the lender takes the amount that is left in your account whichever is due)
• Insurance policies

Usually the lender only sanctions a loan which is very much less than the value of the asset. There may be certain situations where you may need to add collateral when the existing collateral loses its value.

Collateral loans are usually applied by business men as well for personal use. They are the last choice when the investor has a bad credit score as these loans are expensive.

Similarly, home equity loans are preferred when the borrower is in need of huge amount. These loans are not having much strict guidelines and easy to get qualified. It is more of a second mortgage, when the first home you own has resulted in sufficient home equity. 

These loans are considered to be safest and you cannot come across scammers and fraudsters as these loans are provided by the bank. Know you income and expenses before applying for the loan.

The following are the benefits of home equity loans

• Rate of interest is low
• People with bad credit score can apply for these loans as getting an approval are easier.
• The investors get tax deductions

When the borrower fails to repay, his house which is kept as collateral is taken by the bank and the foreclosure procedure comes into force. The risk factor should be kept in mind before applying for home equity loan. The fear of losing your property will stop you from applying the home equity loan at times.

Also the bank should not approve loans having higher amount as bank may face a financial crisis if all those borrowers default in payment. The borrower can avail two options namely HELOC and lump sum, which is more like second mortgage type. To know more about second mortgage, the uses read the blogs in DC Fawcett virtual real estate investing club.

Conclusion:

DC Fawcett virtual real estate investing club blog will help the investors to know more about the emerging trends in commercial real estate and how to prevent from scams.

DC Fawcett Real Estate Chicago housing market predictions and fluctuations

The economy of the nation experienced a decline in unemployment numbers in 2016 making the idea of home ownership favorable and stronger. DC Fawcett Real Estate Chicago has been slower in recovering from the housing market crash. Nationally, home prices and home sales will increase.

A Quick Reviews On 2016 Home Sale Details

• Lincoln Park had the highest median condo sale price in the city.
• The Near North Sidehad the highest median sale price for single-family homes.
• Portage Parkand Ashburn tied for most single-family home sales.
• For multiunit housing, the Near North Side topped the list.
• The Near South Sidehad the priciest houses on the South Side. Houses in McKinley Park spent the shortest amount of time on the market in the city.
• Armor Squareshowed the highest increase in median house sale price.

At the end of 2016, the analysts predicted that 2017 will be buyer’s market in Chicago as the prices of property will fall very rapidly.  The sellers should take it as positive trend and Fawcett also advised the sellers to be open to negotiations and lower the expectations on their asking price.

The fall in prices is due to slow growth in population and job sector. The market will remain strong and solid.

Here are few key takeaways for Chicago investors from DC Fawcett

1. Locate highly distressed properties; pre-foreclosures.
2. Develop negotiating skills with the sellers
3. Find cash buyers, Chicago area, as Cook County known to be a hot selling area for real estate cash transactions.

Suburbs will have a strong appeal. The millennial generation is increasing their home purchase, thus demand for first-time home buyers will prefer a home in the mid-price range where all basics needs are easily accessible.  The demand for multi-family homes has been increasing steadily. Past half a decade the multi-family housing market looks incredible. They sell very faster than any other type of the property.

An overview on Chicago housing market 2017

Reports suggest that Chicago ranks 8^th which is well below other major cities when it comes to rent affordability estimating the average cost of rent for a single person in Chicago to be around $1,047
Chicago residential home sales went on great in January as the city experienced extreme climatic conditions in winter which made the buyers look out for new homes.  There was a notable increase in Chicago home prices.

The city witnessed one of the best spring home sales. The supply was low and demand was exorbitantly high and signed contracts in lightning speed and the median sale price increased by 4.3%, March home sales were pretty good and the number of distressed homes sale was historically lowest.
 
The corporate sector was flourishing and guaranteed jobs for everybody which promised the real estate market to be high.

Home buyers can prefer Chicago as the market seems pretty good. Condo and town home sellers can experience a great profit the forthcoming years than single-family home owners.  New apartments units are coming up as well as office space are expanding.

There will be a mild dip in 2018 and 2019 housing market; the need for new ultra-luxury condominiums has just started.

To know more about real estate and how to prevent from scams, check out virtual real estate investing club blogs written by DC Fawcett.

Conclusion:

 DC Fawcett is one of those experts who runs a website which generates profits and earns luxuries in the long run. This website can be called as a virtual real estate – Dc Fawcett virtual real estate investing club. Although there are some complaints (probably by those who have a personal grievance against him or something) on Dc Fawcett, he continues to be an expert virtual real estate investor.

DC Fawcett Real Estate Views On Mortgage Payments And Foreclosure

What is a mortgage transaction?

A mortgage transaction occurs when one is unable to pay the entire amount while buying a house and requires a loan to make the rest of the payment. DC Fawcett A mortgage is a legal document where the property is held for security. Borrower and lender are the two persons involved in the transaction.

A legal agreement is signed between the lender and borrower stating that he/she is in debt and responsible to pay the amount within the stipulated time. Failing to do so, the lender gets the property until the borrower pays the rest of the amount. The legal agreement is called promissory note.

What is a foreclosure?

Foreclosure is a legal process where one loses his/her home due to nonpayment of mortgages. It is applicable when the borrower does not pay his installment for 3 months. It is valid up to 10 years of time period which makes the condition worse for the future lenders to select him/her as the borrower. It is a seriously depressing issue when one loses his/her home through this process, thus steps must be taken to prevent it from happening. If needed, the support can be taken from reliable agencies to solve the issue.

Causes of foreclosure:

*financial crisis

*loss of job

*medical expenses

Procedure of foreclosure:

The lender should send a prior notice (i.e. 30 days before) to the borrower stating that the payment should be made immediately which is due; else the property will be transferred in the lender’s name.

There are two types of foreclosure namely judicial and non judicial

• Judicial foreclosure is entirely supervised by court; they send a legal notice to the borrower that payment has to be made else the property will be sold in auction for the highest bidder after the auction.

• Non judicial foreclosure which does not involve supervision of court, the foreclosing party specifies the amount due and sends a notice to the borrower.

Deficiency judgement

This situation occurs when the amount to be paid to the lender is more than the property value. But the borrower is free from his debt once he pays the difference amount only.

Types of Foreclosure scams:

Consultant companies are usually involved in these scams. The ways in which fraudulent scams may occur are

*via internet or telephone

*loan transaction

*lender scam

Dc Fawcett has stated his reviews on how to overcome when there is a shortage of mortgage payments. They are

*Modify the existing loan, in addition to that there must be a certain proof that the borrower is undergoing financial crisis and own a proper household name.

*Forbearance

*Selling the property

*Giving out for rental purpose where the amount is equal to mortgage payment

 

Conclusion:

DC Fawcett has presented several ways on how to overcome mortgage issues and foreclosure. His virtual real estate investing  club  contains blogs where investors from anywhere in the world can submit their trades before investing his/her capital which would also help other traders from different backgrounds to know the ongoing real estate scenario better.

DC Fawcett Virtual Wholesaling Solutions To The Blunders In Real Estate investment

Real estate is a field where committing errors is quite common. The investors must be careful with each and every investment you make in order to prevent from making a mistake DC Fawcett Virtual Wholesaling.

DC Fawcett Reviews highlights the mistakes and provide solutions to the investors

• Improper planning ,insufficient knowledge and impatience
• Make a thorough study of the field by reading blogs , articles on real estate before you invest, else you are committing a big mistake.
• Investors must plan how to make investments both short-term and long-term as well as set the priorities right. You should also have a back-up plan (Plan b) if plan A fails.
• Impatience will not fetch you any gain, real estate investments take a long time to fetch you returns, so only being patient you can survive and master the art.
• Decision making

Only by visiting several properties you can make out how the real estate works. Sitting at home will not fetch you profitable investments and investigate the reason that why the property is on sale.

• Doing it alone

Take help of the reputed property management companies which can give you the best results as you can make thorough study of various properties from the renowned professionals. You can also have partnership with your buddy who might be interested in real estate.

• Bad financing

Bad financing costs you heavy loss; it includes high interest rate, balloon payment and high monthly payment. Do not invest huge initially, gradually scale up the investment.

• Location and Overpricing

Whether it is rental or for sale, do not overprice in order to earn more as it will only keep your property unsold. Location is the most important factor that you must keep in mind while investing as bad location will make your property stand still in the market unsold.

• Assumptions

Assumptions will not work in real estate market; do not judge the resale value of any property just by looking at it. Underestimating repair and renovation cost is also a big blunder which will lead to financial loss and running out of cash is one of the worst thing that can happen to an investor.

• Strategy

The investors must also decide what they are going to do with the money obtained after the property being sold. This is known as “exit strategy” which must be decided before the sale. Choose right rental strategy in order to fetch returns.

• Risk and returns

Do not buy properties which are on risk, it will create a bad portfolio. Do not make investments keeping in mind about the average historical returns, as time varies, returns do change.

While investing, beware of scams that happen around you.

Fake property owner scam: There could be no proper landlord to a property, but real estate agents would try to sell off the property to you.

Conclusion:

DC Fawcett virtual real estate investing club has blogs which discusses more about the mistakes that an investor commits frequently. Investors can have a look at it before making your investments.

DC Fawcett’s ideologies on buying and renting a house

Every real estate investor dream is to buy a house, give it out for rent and make profit out of it. On the verge of retirement, the mindset changes where they would like to sell off the house and live in a rental apartment.

DC Fawcett, real estate mentor gives his reviews on buying and renting a house, it pros and cons.

Buying a house:

Down payment

At the time of purchase, the buyer has to mention down payment amount which makes the offer valid. The amount varies depends on credit points and mortgage loans.   

Tax payment

To make sure that the offer and actual price are equal, home appraisal is suggested by the lender. Home inspection is must, if there are any defects has to be checked before buying. Charges are levied almost equal to that of a home appraisal. Maintenance fees, property and utility taxes are to be paid along with insurance and closing cost. Moving cost depends on number of goods and distance.

Repair work

In case, you are purchasing home for the first time, it is great if you choose second hand furniture. Repairs are mandatory, so it is the purchaser duty to shell out the money from his pocket and replace with the new one or repair the same.

Pros:

 Equity
 Tax benefits
Can selling it out for rent
Interior decoration

Cons:

  If the value of the property declines, it leads to financial loss while renting.

Renting a house

Renting a house is comparatively smarter choice, because it is cost effective than buying a house. But there are several costs that you may need to bear.

·         Deposit:

Owners request the tenants to pay the security deposit which can be used if any damage or repair occurs. It is known as security deposit which is returned to the renters at time of vacating the house.

·         Rental payment and insurance:

Prior to moving in, you need to pay the monthly rent, it may vary if you move in between the month. The moving cost depends on number of goods and distance you travel to shift which is similar to moving cost of buying a house. Renter insurance is not mandatory but it is safe to apply in order to protect the house from burglary and fire.

·         Utilities:

Owners may provide basic amenities at the time of moving in, if so they are charged along with the monthly rent.

Pros

Can shift and vacate easier
Credit profiles and points are not strict
Few utilities to be carried while moving

Cons

 No tax benefits
 No equity and housing security

  Rental scams take place quite often.

         They are in form of telephonic conversations pretending to be the owner or real estate agent asking you to transfer money.

    Fraudulent scammers copy the content from sites which are on sale to rental site. So investors must be safe.

   Showing the properties which are belonging to government or corporate to renters which have no landlord.

 To stay secure and safe, join virtual real estate investing club founded by DC Fawcett where his blogs speak about rental and short scale scams.

DC Fawcett Real Estate Reviews – Highly Profitable Real Estate Investments

Introduction

Dc Fawcett Real Estate – Investing in real estate can be a life changing experience! Here is the list of ways which can be used efficiently to make money with real estate!

How to become more profitable real estate investor?

Can i make a huge profit in my first investment? What kind of real estate investment can work out these days?

If these are the questions which you need to get answered then you might be probably investing in real estate for the first time. Real estate investments can be a life changing decision, both in a positive and negative way. It is long term but yet efficient mode of investment which earns you a huge profit.

DC Fawcett Reviews – What are the common sources of real estate profit?

Appreciation or rise of the land value is the most important factor in real estate business. The land value increases as the time passes by and reselling value also increases. Before purchasing the property do a thorough research on upcoming valuable projects or construction economic zones or buildings which raises the appreciation value of the land drastically.

As the cities expand, the land value also increases so that many real estate investors start building the houses. You have to search for such a developing property and invest in it.

Investment in residential properties

Residential property investments are highly profitable and investors can also self occupy such properties. The value of the residential properties increases gradually when all the amenities nearby the houses are coming up. For example, houses nearby schools, colleges and educational institutions sell for higher rate and they can be sold faster too.

House Flipping, why is it called best real estate investment method?

The process of buying an old or repaired houses for under market value and reselling it for higher value could be the simple definition for house flipping. With the help of contractor or individual workers like painter, plumber, carpenter, electrician etc. you can fix, repair or renovate the old house.

Soon after completing the process you can put up the house for sale in market. Make use of online marketing tools and other advertising methods like distributing pamphlets, multiple listing websites etc. to sell the house quickly. Real estate investments also need some marketing skills which help you to sell the property quickly. Make sure that you sell the houses for higher market value price and earn more profit. You can do the renovation, repairs and other improvement works by yourself or hire a contractor to do it.

There are different types of real estate investments like commercial, industrial, rental, mixed etc. Real estate investment has slow returns and you can’t be assured of the profit always. Weigh out the costs and benefits of your actions before start investing in real estate.

Dc Fawcett Real Estate – Advantages of investing in rental properties

Rental properties, a wise and effective way of real estate investment. When you purchase a property and rent it to a tenant, you are entitled to earn a income throughout the year. There are some drawbacks like regular maintenance is needed for such properties and also you need to find a good tenant if one residing in your property decides to leave. The stages of rental properties are,

Property purchase :
Do a proper research and buy a property in developing area
Proper maintenance of the property :

When your property gets old, it has to be renewed to attract more tenants
Searching for tenants to accommodate :
You might have to do this occasionally
Your monthly rental income or Cash flow should exceed the mortgages and other expenses

Conclusion

DC Fawcett is well-equipped in Virtual Real Estate Investing. He is adept at rehabbing, wholesaling etc. in virtual markets where he does not reside. He also provides free Virtual Real Estate advice that is written on his blogs.  One can also know about short sale investing through his blogs.