REO List Price Doesn’t Mean Squat Anymore I remember not too long ago when banks set the list price of an REO foreclosure at a particular price, but with the anticipation of settling on a lower offer. Investors built entire models around bidding at a certain percentage below asking price knowing that a predictable portion of those bids would get accepted. This was especially true for HUD properties where many investors knew the exact formula for minimum bids that would be accepted by … [Read more...]
How to Invest in Real Estate When Everything Is Too Expensive
September 23, 2012 By Leave a Comment
How to Invest in Real Estate When Everything Is Too Expensive The most inexpensive property I’ve ever bought was for $16,000.00. It wasn’t in terrible shape, but it did need a good deal of work to get it up to a rent-able standards (about $30,000.00). The most expensive property was over a half-million for an apartment complex which I still own and love dearly.However, in some areas of the country, those prices are simply not realistic. In fact, in some areas you can barely buy the … [Read more...]
Breaking Up with a Contractor is Hard to Do
August 30, 2012 By Leave a Comment
Breaking Up with a Contractor is Hard to Do Fix and flip houses long enough and sooner or later you’ll become disgruntled with a contractor. Or, they’ll become disgruntled with you. Here are some key indicators that a divorce with your contractor is eminent:Contractor displays a lack of attention to detail.Contractor is unable to complete a job on time as promised.Contractor is unable to complete a job on budget.Contractor calls you an idiot.Contractor doesn’t call you at all.Why does … [Read more...]
Fixing and Flipping: Determining Target Price Point
May 31, 2012 By Leave a Comment
Fixing and Flipping: Determining Target Price PointThe G.I. Joe Jet. Man, did I want that toy. I remember my friend Robby and I drooling over it at the department store the summer of 1984. Together we owned every other figurine and vehicle in the collection – from the Ninja to the Jeep. Unfortunately, we never acquired the Jet. At $20 the target price point was too high. By the time we had enough cash to buy it we had moved on to a more expensive hobby – BMX racing bikes.The cash in your … [Read more...]
What Does a Real Estate Note Buyer Look for in Your Note?
May 18, 2012 By Leave a Comment
What Does a Real Estate Note Buyer Look for in Your Note?Selling a property with a note can be a great way to get market value for your property, after all you are operating as the bank to the homeowner and therefore “lending” your money for their property purchase. Quite often note holders want to sell their notes for an immediate payoff but are not sure of what criteria a potential note buyer will use to judge their note value. It is important to know these items as you have a valuable, … [Read more...]
Market Conditions Do You Know How To Read Them?
March 16, 2012 By Leave a Comment
You will hear this neighborhood is hot! Or, there are Real Estate deals to be had in this city? And when you get there, it’s not what it seems.That’s because you have to be able to read between the lines of market conditions. My friend Rob Swanson shared a recorded Q & A on this subject recently and it’s full of great stories and situations of how to read the market. It’s from a couple years ago, but the info is spot-on. Here’s the link if you want to check it out.After … [Read more...]
Fixing and Flipping: It’s a Numbers Game
December 15, 2011 By Leave a Comment
Fixing and Flipping: It’s a Numbers GameTo help in the Success of Your Real Estate Investing By Fixing and Flipping there are a few steps that you need to make sure get done:You can’t polish a turd. That’s what my Dad said to me. One thing I’ve learned from being in the fix and flip business is that you may not be able to polish a turd but you can put lipstick on a pig. And in certain cases some extremely expensive mascara and cover-up. Currently, I have six houses on the books, … [Read more...]
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Is a New Real Estate Buying Frenzy Creating a Seller’s Market?
Is a New Real Estate Buying Frenzy Creating a Seller’s Market? The Fed just released a report indicating the real estate market is experiencing widespread improvement. For those who are actively buying properties right now, this should come as no surprise. With numerous investors and funds actively pursuing real estate investments, it’s not uncommon to see properties going into multiple offer situations – many times resulting in properties selling over list price.While this feeding … [Read more...]