"Should Real Estate Investors Get a Real Estate License?" is a question that comes up quite a bit. You're about to discover where it makes sense as well as where it doesn't make sense to get your license if you are also investing in real estate. The most important fact to start with is that me, as well as most successful real estate investors in this country, are licensed real estate agents. There must be a reason why that is the case. And there is, which we will get into. But you'll … [Read more...]
Short Sales Cast a Long Shadow
August 23, 2012 By Leave a Comment
Short Sales Cast a Long Shadow Yesterday the GSEs, Fanny and Freddie, accelerated the switch to short sales that has been underway for the past two years by announcing new servicing standards to speed up and streamline the processing of short sales for borrowers whose mortgages are held by the GSE’s, which is about half of all mortgages in the nation. The new guidelines, which take effect in November, allow servicers to approve a short sale for borrowers who have certain types of … [Read more...]
An Escrow Agent’s Value to a Real Estate Professional
August 11, 2012 By Leave a Comment
An Escrow Agent’s Value to a Real Estate Professional Real Estate Agent and Real Estate Investor: If you are closing deals, this blog is a must read!An Escrow Agent or Escrow Officer works at a title company and handles the documents and monies to close a real estate transaction. Working with a solid Escrow Agent can save you thousands of dollars and hundreds of headaches over time!I am going to let 3 true stories explain why a Title or Escrow Agent is one of the biggest assets an … [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...]
The Convoluted World Of Real Estate Handouts
July 26, 2012 By Leave a Comment
The Convoluted World Of Real Estate HandoutsTwo weeks ago, we found our company in a position that, somehow, we had not dealt with in our years of buying real estate in Memphis and Dallas. After having completed close to 800 transactions in the last 3 years, last week was the first time we had run into a closing where the seller used a government program to assist in the sale of the home. Not only was a government program used, but the bank involved in the loan got into the act as well and … [Read more...]
Why Short Sale Discounts are Growing & The Best Banks for Bargains
July 18, 2012 By Leave a Comment
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...]
Flipping & Rehabbing Distressed Property: 3 on 3 Interview Series
June 26, 2012 By Leave a Comment
Flipping & Rehabbing Distressed Property: 3 on 3 Interview SeriesThe second 3 on 3 installment will focus on distressed property rehabilitation, also known as rehabbing, flipping, etc. Joining me in answering three rehab related questions are two experienced and very successful rehabbers:Will Barnard – Will is President of Barnard Enterprises, Inc. and a number of subsidiary companies. he has experience in many aspects of real estate investing including: spec building, fix and flip, … [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...]
Why People Don’t Want to Become Real Estate Investors
May 30, 2012 By Leave a Comment
Why People Don’t Want to Become Real Estate InvestorsChange is all around us. Foreclosure inventories and discounts are fluctuating in ways that are virtually impossible to predict at a local level. A massive wave of new multifamily construction could change the rental equation in hundreds of markets. Government and lender bulk REO-to-rental experiments could take off, drying up inventories and introducing new competition for SFR tenants. Well-heeled investment consortia promise to change … [Read more...]
Housing Update: Distressed Sales Hang Tough
May 23, 2012 By Leave a Comment
Housing Update: Distressed Sales Hang ToughAnnouncements that a recovery is underway are not paying attention to the huge piece of the home sales pie belonging to foreclosures and short sales. Distressed market share is not diminishing in the middle of the spring sales season and it is the first time in two years when prices are rising in a majority of markets.Improving prices are supposed to inspire sellers to act, but if they are, then there is a rush of distressed properties pouting into … [Read more...]
Value Disputes and Bank of America Short Sales
May 22, 2012 By Leave a Comment
Value Disputes and Bank of America Short SalesIf you have completed more than a handful of short sales, then you have likely have been involved in a value dispute with the short sale lender. During the course of the short sale, the short sale lender sends out another Broker to complete a Broker Price Opinion (BPO) for the short sale listing. The bank then, in most cases, bases their price on the value stipulated in the BPO. However, often times, there is a discrepancy between the value … [Read more...]
How to Address Closing Cost Credits in Short Sale Transactions
May 15, 2012 By Leave a Comment
How to Address Closing Cost Credits in Short Sale TransactionsAgents, buyers and sellers are abuzz because it’s a seller’s market again. Just a few weeks ago an agent friend of mine received 24 offers on his short sale listing, and another property in my area got 10 offers the very same weekend.When reviewing short sale offers with clients, it is important to look at the type of loan that the buyer will obtain: VA, FHA, or conventional financing. And, will the buyer require a closing cost … [Read more...]
Be Careful When Inheriting a Tenant
May 9, 2012 By Leave a Comment
Be Careful When Inheriting a TenantWith the extraordinary number of short sales and foreclosures over the last few years, many distressed properties are actually being purchased with the previous tenant still residing in the property. For many investors, the thought of avoiding up front rehab costs as well as the time and expense associated with finding a tenant adds to the appeal of this scenario. Admittedly, I too have been drawn to certain properties because of the prospect of inheriting a … [Read more...]
Short Sales – How to Manage the BPO
May 1, 2012 By Leave a Comment
Short Sales – How to Manage the BPOI’m not going to say that I am super strong. I’ve done some martial arts and some kickboxing, but if I hit you, I probably wouldn’t take you to the floor. Nevertheless, I know the best way to fight a bad Broker Price Opinion (BPO). I can knock that baby to the floor in three easy moves. And… here they are:Meet the BPO agent at the property. In order to be able to intelligently discuss the BPO with the seller’s lien holder, it is a good idea to … [Read more...]
Are Short Sales the Next Big Investment Market?
April 26, 2012 By Leave a Comment
Are Short Sales the Next Big Investment Market?In January 2011, an estimated 74,000 homeowners received some form of loan modification. According to Hope Now, a non-profit mortgage relief organization, this number is 27% less than the amount one year ago. And the downward trend continued in February 2012 with 20% less loan modifications than in 2011.Why the decrease? According to Eli Tene, co-founder of Peak Corporate Network, it’s not at all surprising. He says in a company press release, … [Read more...]
Improved Short Sale Processing Time – Fact or Fiction?
April 24, 2012 By Leave a Comment
Improved Short Sale Processing Time – Fact or Fiction?If you are considering the purchase of a short sale or if you are an listing short sales, 2012 may be the year for you. First off, the Mortgage Forgiveness Debt Relief Act of 2007, which protects certain short sale sellers from tax liability, is set to expire at the end of the year. The Treasury has amended the HAFA guidelines for those short sale sellers interested in participating in the government’s HAFA short sale program. Bank of … [Read more...]
Real Estate News by the Numbers: Weekending April 20
April 21, 2012 By Leave a Comment
Real Estate News by the Numbers: Weekending April 20A quick rundown of the important real estate news from the week of April 14 – April 20, by the numbers:33% – Increase in January, year-over-year, in short sales in the U.S. In total, 32 states saw an increase in short sales.6.9% – Increase in mortgage applications, on a seasonally adjusted basis, from the week before. The Refinance Index was up 13.5%, whereas the Purchase Index was down 11.2%2.6% – Decrease in existing homes sales in … [Read more...]
Marketshare Decline With Foreclosures And Short Sales
April 20, 2012 By Leave a Comment
Marketshare Decline With Foreclosures And Short SalesAccording to latest Realtor Confidence Index survey by the National Association of Realtors, a sign that lenders have not yet released large volumes of backlogged foreclosure inventory by the end of March, when the survey was conducted. Fewer numbers of foreclosures and short sales also accounted for a decline in the distressed sale market share in March. March foreclosures fell to 18 percent from 20 percent of all sales in January and … [Read more...]
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Where Oh Where Have All the Distressed Sales Gone?
Where Oh Where Have All the Distressed Sales Gone? The signing of the Attorneys General agreement five months ago was supposed to speed up foreclosure processing and move more properties through the pipeline faster than we’ve seen since Robogate. Over the past year, new initiatives by the GSEs and the biggest banks, and improved transaction management technology were supposed to get record numbers of short sales to closing faster and easier than ever.So what the heck happened?If you’re … [Read more...]