Posts Tagged ‘Avoid’

Learn how to avoid missing out on the Best Real Estate Investment Properties

In almost every real estate investing seminar I’ve ever attended, a lot of time has been invested in teaching real estate investors and potential real estate investor on how to find good deals. Because deal-finding is so crucial to one‚Äôs investing success and longevity in the real estate investing business, I recently decided to chat with a real estate investment friend and look back and see which methods have generated the most deals and the best deals for him.. In reviewing the 200 properties he has bought or flipped over the last 5 years, I was surprised to find that many of the “traditional” sources of great deals haven’t worked for him, while some less obvious methods have been great lead generators. I’d like to share with you the results of my study.

The Multiple Listing Service. The MLS is essentially a catalog of all the properties listed for sale by brokers. Needless to say, some of them are good deals for investors, and some aren’t.  Sometimes there is a great foreclosure in there, sometimes not. The trick is to ferret out which properties have motivated sellers without making offers on all of them. I’ve honed this skill through years of translating agent lingo like, “Handyman’s special” (looks bad, smells bad, has at least one major system that doesn’t function), “needs TLC” (ugly, but not smelly, and everything works).  What you’re going to find is a lot of cost, markup and competition has set the price.  As an investor, you really want to find ways around the ‘traditional real estate sales’ databases if at all possible.

Properties listed in the MLS are for sale.  To anyone, including the real estate investor. This may seem pretty profound, but some of the other methods touted as great ways to find deals involve locating owners, then finding out if they want to sell. Properties in the MLS also have the advantage that all of the information about the property is pretty much laid out for you – a major time saver. For the average real estate investor, time really is money.  And, with the sophisticated, computerized access available to your agent, it’s a matter of a few keystrokes to view all of the properties that are handyman’s specials, or bank-owned, or in estate, or priced under a certain dollar figure – whatever you‚Äôd like to concentrate on.  The disadvantage is that if you’re after foreclosures, you may not find the deals here.

Another reason that the MLS has worked so well  is that  generally the market for really ugly properties is where real estate investors may want to be, otherwise the deals for good real estate investing values just won’t be there. Coincidentally, these are the same properties that most agents prefer not to spend a lot of time with. In many cases, they’re downright cooperative – particularly when I’m offering all cash and a quick closing.

Direct mail to real estate agents?  At one point, we did a mail out to 1,200 agent names from the Board of Realtors and generated a 3-part mailing to send to every agent in town. For the real estate investor, this might seem like a respectable idea, however there are drawbacks.

The theme of this campaign was this: if you, Mr. Agent, have a property listed that fits a specific real estate investment criteria, I’ll make an offer and you get to keep the entire commission. Out rolled a brilliant campaign -all posted first class, incidentally – and in numbered the telephone calls. All 9 of them. That‚Äôs correct. The workweek after the 1st letters got out, we got 9 calls. We had already produced offers on 3 of the houses; 2 were out of our price range; and two were overpriced listings soon to expire.  Not a beneficial take for the average real estate investor seeking to realise a living with real estate investment .

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The succeeding mailing gave even more answers – about 16 replys – all basically in the same classes. The final mail out, a postal card, encountered no notice at all. Basically, we consumed close to 00 on a campaign that gave nothing for our real estate investing concern.

I still guess that this idea has some merit, but if  performed again, we would make some substatial shifts. Initially, we’ll target only the 350 or so brokers who name the kinds of real estate investment properties we would purchase. Then, we would do a better job of composing the marketing collateral, underlining how the broker and his seller could gain from doing work with our real estate investment business. Finally, we would make the campaign a continuous one throughout the next twelve months, trying out dissimilar letters for reception and sending the best to the same real estate agents over and over. And lastly, to personalise the campaign by following up with a telephone call to the 30 or so preferred candidates. Target marketing our real esatate investing marketing attempts.

Ads in the Yellow Pages. For half dozen years, we have featured an ad in the “real estate” section of the Yellow Pages. Each calendar year, the ad has possessed some variation of the phrasing, “We purchase homes – all cash‚Äù. This advertising only yields 3-4 calls a calendar month, but for some grounds the caliber of the telephone calls is better than those that are produced by whatever other means we have ever practiced. The sellers incline to be incited, cooperative, and bear unlisted houses.  All of these items are precisely what the real estate investor is wanting in investment properties.

What is great is that you get to look at with these ads once a calendar year, then leave ‚Äòem. While they usually are pricy – 1000s per 12 month time period – the telephone company will regularly charge you every month for the price. In addition, as one of the very few ads in the telephone directory that promises to buy investment properties, You have not got alot of competition.  This works out, but getting connected with  people that own the houses in hand: banks, any mortgage company that possesses (and does not want) foreclosures, key real estate agents, any one that recognises the market and recognises you embody the real esate investor that understands the marketplace.  Both cases, you succeed.  Yellow pages, you pay for the leads, the word of mouth, time is payment for the great real estate investing leads.

Advertised FSBOs? Properties For Sale By Owner,
a.k.a. FSBOs, are a preferent means for a number of real estate investors. For us, on the other hand, have never bought a holding from an owner who promoted his property for sale rather than ringing me.  Sounds like a deal for the budding Real Esatate Investor who purchases homes for a living right?

We have found various issues with straining to purchase FSBOs. The 1st is that many are not actually for sale. Some FSBOs are just “trying out the market to ascertain what variety of offers he’ll acquire. Other FSBO sellers are very moved to sell, but do not list because they need to keep all of the money from the sale. They do not wish to pay a commission – but they do not desire to receive a lower price, either. And sometimes a seller opts to try to sell their holding by themselves because they owe too much to bear a 5%-7% commission, even if he sells it at full price.  For the real estate investor, obviously there is no economic value here.

If you are purchasing expensive properties creatively, these sellers are ripe for the variety of answer you propose. A majority of real estate investors schemes is to buy ugly real estate cheaply and for immediate payment, and you just do not witness this type of deal in advertized FSBOs.

fFiers to Targeted Neighborhoods: Last calendar year, we delivered 14,000 double-sided “We buy real estate” circulars published. We employed an individual to set this flyer in the threshold of every single, two, or multi family residence they saw in the prospective region.  Every three calendar weeks or so, 5,000 approximately of these flyers were delivered, and the reply from qualified sellers was first-class. For a price of less than 0, we gained 3 deals that clearred over ,000.  For a new region for the experienced real estate investor or just examining a dissimilar way to ‘farm’ the real estate investment outlooks in a given area, this is very good and popular way to find out if there are any sound real estate investment deals to capture.

Billboards in the same neighborhood? Here is a object lesson in messing up a beneficial thing: hot on the heels of our massively successful circular campaign, I settled to spring for 4 large billboards in the same vicinity. The trouble was that my marketing budget is only so large, and purchasing the billboards signified stopping the fliers. Still, I envisioned that the billboards would get more attention anyway, so I handed over the ,800 and acquired…

No response.. Nothing……

The Point? Keep with What does work.  This is the number one rule of obtaining good real estate investment properties.
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Employing only one lead source at a time. In my experience, it is best to use at least a few dissimilar techniques of lining up deals at the same time: preferably 2 you’ve practiced before with some results, plus 1 that you are screening. Which takes us to:

Not understanding which of your deal-finding techniques are producing, and which are not. If you are going to expend money on fliers or ads or phone pole signs or whatever, it is very significant that you give attention to which methods are getting good leads, and which are not.. For any real estate investing occupation, and business in general, one needs to monitor and try out the outcomes of a marketing campaign. If you are not tracking your lead sources to expose which are producing leads and which you should give up, you’re wasting away time and money that could be set to use giving you deals.

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Foreclosure Help: How to Avoid Foreclosure

Times are tough, and maintaining control over your financial concerns is even more difficult. If you have been missing mortgage payments, or have had your lender attempt to contact you, you may be facing the possibility of home foreclosure. Foreclosure help is essential when this happens. Here are some things you can do: Manage your finances well. Prevent nonpayment of your monthly mortgage dues by reprioritizing your financial resources.

Eliminate expenses that are not essential, at least until you can make your mortgage payment for the month. Your family’s health has to be priority number one, and your hearth and home second. Communicate with your lender. When you realize that your home is about to be foreclosed, contact the lender immediately. You may also receive correspondence from them, informing you of possible legal action. Discuss options with your lender as soon as this happens to help save your home. Be informed. Know what you can and cannot do regarding your mortgage. Read through the loan documents you have to know what will happen in case you are unable to make your mortgage payments. The foreclosure regulations are different from state to state, so contact the housing office in your area. In addition, you may find reliable information on foreclosure prevention, also known as loss mitigation, on the Internet. Talk to the professionals.

The Department of Housing and Development can give you no- or low-cost counseling services about foreclosure help and other housing matters. These experts understand the law, and will help you go through the best available options. They can even aid in any negotiations with your lender. Talk to a certified housing counselor in your area for expert advice and assistance. Use what you have. Additional financial resources may come from the assets you already have, including jewelry, cars, and life insurance policies. You can sell these to get extra money with which you can reinstate your loan. Even if the money you get from these efforts is insufficient, it will go a long way in loan negotiations by showing your lender that you are willing to do your part.

Say no to foreclosure prevention companies. You may already have very little in the way of liquid assets, so keep what you have. Paying for foreclosure prevention from companies that offer these services is ill advised. They may promise to successfully negotiate with your lender, but you could have an equal chance of success with the advice and aid of an HUD-certified counselor. Use the money towards your mortgage instead. Address the problem as soon as you can. Wherever your home is in the timeline of foreclosure proceedings, you can still save your home if you choose the right foreclosure help, ASAP. The longer you wait into the proceedings, the likelier it is for your home to be foreclosed. Stop foreclosure and sell your house today! www.TheCincyHouseBuyer.com

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Buying An Investment Property: Things To Avoid

With any house acquisition you are considering, one must contemplate area. Position, Position, Position, as the mantra goes in the property market.

But besides an ideal location, there are other crucial elements to think about before rushing into the property marketplace to purchase a property.

Even though property investing is an effective strategy, it can spell disaster when you have not meticulously considered the pros and cons of the game. It’s going to call for in depth investigation so you should do your homework extremely effectively indeed. Discuss with real estate agents and property attorneys, and find the assistance and data obtainable from the Real Estate Institute of Australia. Getting your research together may be the single most important thing you can do.

Having stated that, getting a residential or investment house can be a excellent stable investment. Look for an ideal home to suit your investing purposes that will also suit your budget; and never because you are attempting to ‘time’ the market. Housing markets run in cycles of 7-10 years, and the timing will also often vary. If you select the right property to begin with, the timing of your purchase is of lesser importance.

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When one takes investment properties in Melbourne as an example, one would see that the Rental vacancies are lower and you’ll find a growing number of immigrants investing in the Melbourne property market.

This is a excellent indicator of the value of investing in an region like Melbourne. Property buyers tend not to devote their life financial savings on a property that isn’t going to give long term growth and investment. What this means is that demand is always greater than supply for properties and investment properties with capital growth opportunities.

When considering an investment property, it really is important to take a long term view,and cautiously examine the wisdom of your selection. Can you keep up with the repayments? Do you have ample cashflow to allow for repairs and upkeep? What about intervals of time that your rental investment may be vacant? Make sure that there’s a high rental demand for the investment, by checking the rental vacancy rates in the suburb you’re considering investing in.

You need capital growth to be a important factor in selecting an investment property. For this, you’ll need to have a look at the supply and demand of these properties. Capital gains are driven by scarcity, as well as high demand. Make certain that demographics point to a constant level of demand; not only now, but for years to come. As a rule, demand must always be greater than supply.

In case you really feel you can not afford your own individual rental property right now, however you really feel you might have discovered the right property, you can find other ideas you may think of.

One thing to consider is getting a second home loan in your existing house. Another idea is to create a syndicate with friends or loved ones to start you into the property market. A fantastic legal professional will help you keep things air tight and accountable. Collectively it is possible to use the leverage of a syndicate or ‘Joint Venture’ to advance and develop your portfolio.

Bear in mind to get your property in a high demand area. Investing in Melbourne Property is popular for this very reason.

Do your homework, and make certain you might have ample cashflow to service your investment loan in the long term. With the proper analysis, you’ll be ready to decide on an investment that can only prosper.

How to Avoid Foreclosure & Keep Your Home

Foreclosure is an intimidating word with real life consequences.  Behind every court document is a frightened family fighting to maintain the home they worked so hard to acquire.  Regardless of what some sources imply, most people suffering in foreclosure are struggling to do the right thing.  Often they were not prepared, like many of us, for an unexpected illness, job loss, or divorce.  Follow the advice below to regain your financial footing and keep your home.

Most importantly, be vigilant.  Open all of your mail and read it.  Foreclosure is a multi-step process that can be short-circuited at nearly every stage, but only if you know what is coming.  If a court date is listed, make arrangements to attend.  Not opening your mail does not stop the foreclosure.  It makes the situation worse.  First, you do not know what is in the documents from the basic allegations to critical court dates.  This leaves you completely unable to defend yourself.  Banks make mistakes, but you cannot make that argument if you do not know what it is claiming against you.  Second, in most states, if the mortgage company is not able to serve the court papers on you by certified mail it can send a sheriff to your house to serve the papers on you personally or post the papers on your front door.  If that form of service fails, many states allow for a legal notice to be published in the newspaper for a certain amount of time to be sufficient notice, even if you never see it.

The latest economic crisis has made one thing painfully clear: anyone’s circumstances can change in an instant.  If your income changes be sure to prepare a new budget.  This exercise will be helpful for several reasons.  First, it will reveal ways you can reduce your expenses – eating out less, smaller cellular phone package, no movie channels, etc.  Second, it will show the mortgage company and court that you are committed to working the situation out.  Finally, if you know your financial forecast for the immediate future it puts you in a better position to negotiate with the bank – you know what you have to work with and what you do not.  You do not want to commit to another arrangement that really cannot afford.  It is important that when you compute your budget that you do not include money that you do not have such as a raise or bonus.

Even when your finances start to tighten, do not stop making payments completely.  Make partial payments even if you cannot pay the full amount.  Banks may not be allowed to continue foreclosure proceedings if they are accepting payments.  The burden, however, falls on you to go to the court date and state your case showing proof of payment in the form of cashed checks, money order stubs, etc.  Plus, a court will take into account your continued efforts to meet your obligations.

Be aware of your options before a foreclosure ever comes.  Mortgage laws are changing a little bit every day, but 5 options to avoid foreclosure have been around for some time: refinance, forbearance, modification, short sale, and bankruptcy.

Before the recent housing collapse refinancing unfavorable mortgage terms to those more palatable was the most common choice.  If, however, you have begun missing payments your credit may be damaged enough that you cannot get good refinancing rates.  Plus, you may not have the equity available or cash for a closing for this to be a viable option.

If you have experienced a temporary disruption in pay or finances, you may be able to negotiate a forbearance.  The key to a forbearance is that the condition that caused your financial trouble must be temporary because you are agreeing to still pay all of the money owed, but for a few months your payments are instead tacked on to the end of your loan.  This option has some practical consequences.  First, you are relieved of those payments for the time the bank agrees.  If the mortgage company agrees to a forbearance it should not charge you late fees for the time agreed upon.  Second, the mortgage accrues interest so your balance is still growing at your rate of interest.  Third, if you escrow your homeowner’s insurance and/or property tax into your monthly mortgage payments you may experience an escrow shortage that will have to be made up.  It may be advisable to at least pay the part of your payment dedicated to the escrow.  Finally, a forbearance may extend the amount of time you have left on your loan and/or increase the amount of your payment for the time remaining on your mortgage.  Be sure to discuss these issues thoroughly with the bank when negotiating a forbearance.  If the bank representative does not have solid answers, ask to speak to a supervisor.

Loan modifications are becoming increasingly commonplace.  This option is as straight forward as it sounds.  You have analyzed your finances and realize that the current loan terms, usually adjustable interest rates, are not going to work for you any more.  Contact the mortgage company to negotiate new terms.  Banks are loathe to do it, but stand your ground – the bank does not want to have another house they cannot sell in this market.  Know exactly how much you have to spend on the mortgage, taxes, and homeowner’s insurance, and work with the bank to get there.

Next, if your house is now simply more than you can afford, do not just abandon the property and walk away doing long-term damage to your credit and harm to the neighborhood you called home.  Talk to the bank about a short sale – how much they are willing to compromise and accept on a sale so you can try to sell the home.

Bankruptcy is another avenue to explore.  Chapters 7 and 13 are those most commonly applied to individual consumer cases.  If your goal is to keep your home, Chapter 7 is not the best option for you.  It is, in essence, a complete liquidation of assets to pay debts.  This will almost certainly include your home.  Chapter 13 is a better option for keeping your home, but you must have the financial ability to make monthly payments into a multi-year plan, usually 5, designed by the bankruptcy court.  As long as the plan is followed, any debts not paid at the end of the plan are discharged and you get to keep your collateral.  Under the court plan, a debt holder must be paid at least as much as they would if the collateral or asset is sold outright under a Chapter 7.  Bankruptcy laws are very complicated.  Plus, credit counseling may be required before a bankruptcy can be filed.  The best thing to do is talk to a bankruptcy attorney.  They can refer you to credible credit counselors and map out the most appropriate course of action for your family.

Be sure to insist that all new agreements with the mortgage company be in writing.  When you receive the paperwork review it to be sure it includes all of the new terms agreed to as you understand them to be.  Do not sign the documents until you are sure.  If you do not understand what the paperwork says, find an attorney to help you sort through it.

The foreclosure laws vary by state and they can be difficult to understand.  There is no need to feel alone through the process.  Every state has a legal aid department that can provide free or low-cost legal advice to those who meet income threshold requirements.  If you do not qualify for legal aid, do not give up.  Find the law school nearest you.  Most law schools have legal clinics where students supervised by attorneys can help the public with a wide range of legal issues.  For example, working with North Carolina Legal Aid, North Carolina Central University’s School of Law has a group of student volunteers guided by faculty called the Foreclosure Prevention Project.  Together, the organizations aim to inform the community homeowners of their mortgage options and assist with ownership issues.

When you feel your financial position start to slip out from underneath you, your greatest tools are tenacity and communication.  Banks have cut back on their customer support staff so be prepared to make multiple calls only to sit on hold.  The best thing you can do is arm yourself with a pen and paper.  Every single time you call the bank write down as much of the following information as you can, even if you never actually get to speak to someone:

the number you called;
the time you dialed the phone;
how long you sat on hold;
the full name or work identification number of anyone you do speak with;
as much detail of the conversation as you can jot down;
the next step; and
when it is to occur.

This information will help you stay organized and focused through a trying event.  You will know what needs to be done next and who is to do it.  Plus, if your case does go to court before you have had a chance to get everything straightened out with the bank, you can show the judge, magistrate, or court clerk all of the effort you have made to do the right thing.  In this financial climate, the person handling your case will probably be sympathetic, having heard similar stories for months.  Your case may not be dismissed, but it may be continued to allow time for you to make arrangements with the bank.

Homeownership is the American dream – until it turns into a nightmare.  Life is full of pitfalls that can push even the most fiscally responsible person to the breaking point.  There are several options available to keep the keys to your kingdom in your hand, but you have to take the initiative and fight.  Know your budget, document all contact with the bank, be vigilant about court dates and deadlines, and seek legal advice if you feel overwhelmed.  You can be sure that the bank will have someone knowledgeable in court to represent their interests.

Short Sale v Foreclosure: Using a Short sale to Avoid Foreclosure in Florida

Article by Daren

Selling your home via a short sale is an increasingly popular method that homeowners in south Florida are utilizing to avoid foreclosure, and many homeowners want to study the benefits of this kind of selling vs foreclosure. Short sales – transactions where a home is sold for less than the outstanding mortgage amount – increased 49 percent in South Florida last year. In fact, there were 16,800 less sales in Miami-Dade, Broward and Palm Beach counties in 2010.

The foreclosure process in Florida can be lengthy, so homeowners have plenty of time to explore their options to avoid foreclosure. When you are thinking about foreclosure v short selling, there are four or five main points to consider: the effect on your credit, the effect on your employment, whether you will be stuck with a deficiency judgment and how soon you will be able to buy another home.

Many people mistakenly think that once they are in foreclosure, their credit is so bad that the issue of selling it short v foreclosure is irrelevant. Sure, your credit does take a hit when you stop making payments, but if you let your home go into foreclosure, you have two extra problems with your credit.

Firstly, your credit report will show your foreclosure for seven long years. You can rebuild your score, but having “foreclosure” on your credit report is a big black mark that makes creditors consider you a far greater risk than if you did a short sale. A short sale will show that you were someone who took action to avoid foreclosure, and someone who cared about your finances. Bad credit can stop you from buying a car or getting other credit and it could cost you thousands every year in higher repayments.

The second problem that really messes up your credit with foreclosure is that you will be stuck with a deficiency judgment. This is another black mark on your credit, and if your credit report shows you still have a debt for tens of thousands or hundreds of thousands of dollars; it also makes it hard for you to rebuild your credit score.

That of course brings up the other question of deficiency judgments when considering a shorter sale v foreclosure. Will you also be stuck with a deficiency judgment if you do a short sale? That depends. If you have a genuine hardship and it is your principle residence, and you have an experienced Realtor who negotiates to have your mortgage debt considered a full settlement, then you will be able to walk away free. In Florida, banks have up to five years after a foreclosure to sue the homeowner for the difference between the outstanding mortgage and whatever is generated at a foreclosure auction.

One question few people think of when considering a reduced sale v foreclosure is how it could affect their ability to rent. Many landlords and apartment buildings do not rent to people who have let their home go into foreclosure, so that makes it harder to find alternative accommodation when it comes time to move.

What about employment? Do you have, or might you in the future, a government job or position in financial services where your employer considers your credit and won’t hire you if you have a foreclosure? We are helping someone do this type of deal right now because if his home goes into foreclosure, he will lose his job. In this area, the question of short sale v foreclosure is very clear. Do whatever is necessary to avoid foreclosure.

The last thing to consider in this issue of short sale v foreclosure is whether you may want to buy another home in the next five years, especially now that home prices have dropped by two –thirds in many places in south Florida. No bank is going to want to give a mortgage to someone who did nothing to avoid foreclosure. Fannie Mae recently announced it would ban strategic defaulters from getting new loans for seven years. With a shorter sale, it is possible to get a new mortgage in as little as two years.

So, when considering a short sale v foreclosure, the advantages of a selling it short to avoid foreclosure are clear. Do whatever you can to avoid foreclosure.

Tables Turned: A Collier County couple turns the tables on Bank of America, the bank that tried to foreclose on their home. Now, the family is foreclosing on the bank! Even bringing trucks and deputies ready to seize property.
Video Rating: 4 / 5

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Useless Real Estate Middle Men and How to Avoid Them!

These companies are called lead generation companies. They spend vast amounts of money advertising on TV, the Internet, radio, and in print so that you’ll go to their website to find information about real estate. When you click on a property and request information the company then either sells the lead at a fee ranging from – for an unqualified lead or up to a 35% referral fee for leads that are more valuable.
The answer might be pretty surprising. They don’t do anything, but forward the lead to a service provider. Yep, that’s right. You can search the MLS on any number of free websites so the website they provide is little more than a mechanism to get your information. Some people think agents, contractors, or other service providers are overpaid for what they do. Take a look at these companies and ask yourself if forwarding an email is worth 00 (That’s the commission split they would receive on the sale of a 0,000 home.).
For the most part, the Realtor, mortgage broker or other service provider pays for these leads. The laws of business provide that you can’t get something for nothing. This is very true. So by adding no value to the transaction and taking up to 35% of the payment for service, the middle-man is taking value from both the consumer and the service provider.
In real estate like many other service industries, the best Realtors obtain their business through referrals. The weaker, newer, less experienced agents typically buy leads from sources such as these. The next time you visit a site like these lead generators, think twice about giving them your information and go directly to the source. You’ll cut out the middle-man and get a better agent for your hard earned dollar.