Inspecting A House: A Valuable Real Estate Education that Costs a Penny Want to vastly increase the probabilities of success in the real estate investment business? Want to create a perception about yourself that instills trust and confidence? Well for the first 50 people to sign up, you can accomplish this for the introductory price of $1,495!But wait! If you sign up within the next two days, you can get this for only… are you ready? $997!Sound familiar? I have good news and good news (no … [Read more...]
Inspecting A House: A Valuable Real Estate Education that Costs a Penny
September 21, 2012 By Leave a Comment
Six Reasons Why Real Estate Trumps Investing in Stocks and Mutual Funds
September 9, 2012 By Leave a Comment
Six Reasons Why Real Estate Trumps Investing in Stocks and Mutual Funds I experienced a drug induced hallucination when I was 10. Laughing gas from my dentist caused me to visualize colorful puzzle pieces crawling all over the ceiling of the exam room. Hopefully, you have never endured this “wacky awake dreamlike state” but take my word for it, you feel out of control.To this day, I still feel a lack of control when I’m in the dental chair. Someone else is put in charge of my mouth and … [Read more...]
Don’t Get in Trouble Flopping a Short Sale
August 1, 2012 By Leave a Comment
Don’t Get in Trouble Flopping a Short Sale With the declining number of REO foreclosures on the market right now, many investors and wholesalers are having success acquiring properties through short sales. However, dealing with REO foreclosures and short sales can be two very different animals. While buying and selling an REO is typically straight forward, the laws surrounding the reselling of a short sale are quite different.For those new to real estate: a short sale is a real estate … [Read more...]
Investors: Be Careful of Misplaced Motivation!
July 20, 2012 By Leave a Comment
Investors: Be Careful of Misplaced Motivation!I’m sure many of you have heard the cliche’ saying, practice makes perfect.It’s a great saying, but sorry to say, is 100% wrong. I don’t remember where or how long ago, but I remember someone telling me that which caused the “huh?!?!” type expression on my face.This person then said, perfect practice makes perfect.After soaking it in, things finally clicked, “Ahhhhhh! That makes sense.” What benefit is the practice if you aren’t … [Read more...]
New Foreclosures Spike in May
June 15, 2012 By Leave a Comment
New Foreclosures Spike in MayInvestors unhappy with current foreclosure inventory levels may have some temporary relief in the coming months as an unexpected spike in May foreclosure activity works its way through the system. Overall activity broke the 200,000 barrier for the first time in three months and starts increased on an annual basis for the first time since 2010 according to the May report from RealtyTrac.But the bulk of new distress sales probably won’t be REOs, but rather as … [Read more...]
Rising REO Prices Are Squeezing Investor Margins
June 6, 2012 By Leave a Comment
Rising REO Prices Are Squeezing Investor MarginsCompetition for REOs is driving up prices significantly in most regions of the country, which in turn is having an effect on investor margins in some of the largest traditional investor markets.Nationally, REO prices have risen an average of 8.1 percent over the last year on a median price-per-square-foot basis have outpaced non-REO price declines of -0.7 percent by 8.8 percentage points, according to the latest data from Clear Capital.For those … [Read more...]
REO-to-Rental Goes Prime Time
May 2, 2012 By Leave a Comment
REO-to-Rental Goes Prime TimeThe business of buying up foreclosures and renting them out is no longer the exclusive, private domain of individuals and small companies. REO-to-Rentals is quickly becoming a business plan for multi-million dollar investment groups, a fundamental force in the nation’s real estate economy and a public policy strategy to soak up REOs and preserve property values.The combination of lower vacancies, increasing rental rates, and affordable REO properties has … [Read more...]
Embracing the Two-tiered Real Estate Marketplace
April 11, 2012 By Leave a Comment
Embracing the Two-tiered Real Estate MarketplaceIf you want to buy a Ford, you don’t expect to pay a Mercedes price, do you? Fords and Mercedes are two different automotive submarkets; about all they have in common are four wheels and a horn.So if you want to buy an REO, you should expect to pay a significant discount from the price of all non-REO properties in the neighborhood because they also are two different tiers of the housing market. That reality has existed since the first wave of … [Read more...]
The Midwest: REO Hotbed of the Nation?
March 7, 2012 By Leave a Comment
The Midwest: REO Hotbed of the Nation?Which metro city last quarter topped RealtyTrac’s list of best REO markets?Vegas? No dice. Miami? Nope, prices are up in Miami. Phoenix? No way, Phoenix ranked second nationally in price increases last quarter. Of course, you read the title of this article, so already you knew the right answer wasn’t a Sand State city. How about Milwaukee?Milwaukee???That’s right; the foreclosure discount capital of the nation is Milwaukee, where the … [Read more...]
You Bought an REO Now Where To Start?
February 28, 2012 By Leave a Comment
You Bought an REO Now Where To Start?First, Let me set the stage for you. You are a buy and hold investor. You have done all the work required to learn your market and make a great purchase. The escrow just closed and the REO property is now yours.You have a lot to do and you need to know where to start.Each REO property offers its own challenges. I will highlight how I would run the project start to finish as a buy and hold investor:Prepping Your REO For The Tenant The first thing I would … [Read more...]
The Feds’ REO Initiative – Explained
February 10, 2012 By 1 Comment
The Feds’ REO Initiative – ExplainedLast month, we discussed the overwhelming inventory of REO homes currently residing in the Federal Housing Finance Agency’s inventory. Federal Reserve Chairman Ben Bernanke wants to start a national REO rental program. But the agency may have seen the light – or at least a glimpse of it.They know they need someone to manage the properties, or in essence become landlords. That’s why they have opened up pre-bid qualification. Here are the nuts and … [Read more...]
What’s Going on in REO World?
January 31, 2012 By Leave a Comment
What’s Going on in REO World?Crazy, crazy, crazy. One of the agents in my office recently got an assignment for an REO. How exciting!. Agents love REO assignments, and this wasn’t his first.Here’s the crazy part: When I was going over the paperwork, I noticed that the property had been foreclosed upon by the lender in 2008. I couldn’t believe it, so I actually asked a title company to double check that date for me. And, yes, it was true.So, here’s the clincher: the property is still … [Read more...]
Can Real Estate Investors Make A Difference?
January 4, 2012 By Leave a Comment
Can Real Estate Investors Make A Difference?Foreclosures, Short Sales, Repossessions, Default, Resales! A nation’s homes shape the quality of its citizens’ lives. Homes are where the workaday world ends and family life begins. Life’s passages take place in our homes; they are where children grow up and memories are made. Homes form the building blocks of every community.Not since the Depression has a man-made disaster so threatened America’s homes and housing stock as the … [Read more...]
Knowing When To Invest In Property Or Not To Invest in Property?
January 4, 2012 By Leave a Comment
Knowing When To Invest In Property Or Not to Invest in PropertyMany Real Estate investors in recent months have noticed a decline in REO and HUD inventory in their markets. While some may speculate that we are finally working through the majority of the foreclosure casualties from the real estate crash, many analysts believe the lack of foreclosures on the market has more to do with government intervention. Whatever the case, an investor who has been consistently buying distressed properties … [Read more...]
Real Estate Trends In 2011 And Predictions For 2012
January 4, 2012 By Leave a Comment
Real Estate Trends In 2011 And Predictions For 2012The Rental BoomWhile easily overstated, there has been something of a rental boom in 2011. Vacancy rates dropped sharply to 5.6% in the third quarter of 2011, the lowest level since 2006. Meanwhile, rents rose to a nationwide average of $1,004 in the third quarter, a rise of 2.4% year.Read the full post here... … [Read more...]
Are All The Foreclosures Gone?
October 27, 2011 By Leave a Comment
Are All The Foreclosures Gone?Where have all the foreclosures gone? That's what a lot of concerned people are asking. I don't mean where is the giant shadow inventory of foreclosures and pending foreclosures. Don't worry, those are still piling up and will be skewing the market.Read the full post here... … [Read more...]
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Why Short Sale Discounts are Growing & The Best Banks for Bargains
Why Short Sale Discounts are Growing & The Best Banks for BargainsThe discounts on distress sales are critical for investors. Discounts− the price differences between “normal,” full value properties and a distress sales like foreclosures or short sales−set the parameters for capital gains when a property is sold, especially in markets with modest price appreciation. All things being equal, the greater the discount the greater the potential gain.Discounts for foreclosures versus … [Read more...]