Real Estate Genius Investment Software Blog

By Kurtis Squyres

There literally has never been one single year over the time that we have flipped houses that I haven’t heard the statement (or some variation, and 90% of them came from agents), “oh, you can’t flip in this market”.

And each year, I answer, “Maybe so”, or “Hmm, could be”, as I wait for our latest escrow check to arrive.

You will never hear that statement come out of my mouth.

This being said, I will say that flipping in a declining market does sort of remind me of learning to snowboard on a black diamond slope. In 2002, 2003, and 2004 if you had started flipping then it was more like learning to ski or snowboard on a bunny slope.

The reason is that if you had miscalculated during 2002, 2003, or 2004, the rapid appreciation of the market combined with the greater fool theory bailed you out every time. Leased land, floor-plans that resemble a labyrinth, war zones, glop ons (really bad add ons), overestimating value, underestimating repair and carrying costs, taking 3 months longer than you thought to make your repairs…all of these sins were quickly forgiven by the voracity of the market.

In this market, if you commit these sins, you can and will be punished, “Thank you sir, may I have another?!”

Right now, it is raining foreclosures. You have to be spot on…spot on with your rehab, spot on with your repair estimates, and one of the most important factors, aggressive in your marketing of the property…in other words, you better have some idea of what you are doing.

If not, the risk is that in the time it takes to fix up that property, 3 or 4 new foreclosures go up on your street that are priced $50,000 below the last lowest priced property. There is a LOT for a buyer to choose from.

Without espousing all gloom and doom, there is still a SHORTAGE of freshly remodeled homes out there. Even more exciting than that, every month more and more families can afford a home who could not for the previous 5 years (and chance are their families are bigger!).

There is a lot to be excited about…but you have got to be focused, you have to be accurate on your repair costs and timetable, it has to look GOOD (or why wouldn’t a family save $50k and pick the REO across the street?)…

You need to get creative and put something like a plasma HD flat screen with an Xbox in the living room, a spa in the backyard, or something that makes a family emotionally attached.

You need to make the property enticing to agents and add at least 2% to the commission of the agent or a free trip to Catalina Island (not as pricey as you might think) for the agent who finds you a buyer……AND, you need to factor these costs in advance!

If you are a beginner and you are saying, “no sweat, I can do that”, then I will always reply, “Go for it!”.

Really, no matter how much advice we or anyone else gives you, the only way to get to consistent success is to get that pesky falling-flat-on-your-face part out of the way…unfortunately, there is no way to avoid it that I know of. It is the only way to get a deep understanding of the game the same as any other hobby, business, or sport. You can read hours of books and videos about snowboarding, it’s not going to prevent you from feeling like a complete jackass the second you click your boots in and try to stand up!

This doesn’t mean you will have an unmitigated disaster, it does mean that at the end of each project if you don’t slap your forehead at least once and say, “Dohh, I should’ve”, or “I could’ve”, or “Why did I….?” then you didn’t really learn anything, and there is ALWAYS something you could have done better.

……..hey!….image how easy the rest of your snowboarding or skiing trip will be when you do learn how to get down a double black diamond!

If you don’t like snow up your nose, and you want to take a more balanced approach, then I have another suggestion for you: consider wholesaling. The money can still be great and the risk is considerably less.

Again, CONSIDER WHOLESALING. The money can still be great and the risk is considerably less.

If you are looking to change careers, get out of your current line of work so you can have your own hours and be your own boss, but you aren’t crazy about going down a black diamond right away, don’t you dare give up that dream or tell yourself that you’ll do it when the market changes.

Wholesaling means you go on the hunt for amazing deals, but then you take what amounts to a small finder’s fee, pass the lion share of the profit to another investor, and go on to the next one.

But do NOT stop there - make it part of the deal that you can check out what your investor buyer does (or doesn’t do) to the property, how they market it, what it costs, and learn everything you can from it. Who knows? …you may just get hooked on the thrill of the hunt and never even care about fixing them up.

I’m torn between the two. The feeling you get when you take a trashed, smelly, abandoned pile of wood and turn it into a beautiful home….there is no feeling like it. No matter how many times we’ve done it, my jaw hits the floor when I see the work my brilliant and artistic wife pulls off time and time again..

….BUT, for me, I’m all about the fun of the treasure hunt. I’m not a fix up guy. I tried to put in a doggy door once. The box said 15 minutes. It took me two hours and put me in a really bad mood, and Cindy basically redid it anyway…sorry, I just suck at it. I admit it. But if you want a direct mail marketing system to absentee owners or a screening system to find the best repos fast, stand back!…Cindy often struggles with email….if we were good at the exact same thing we’d be in big trouble.

But the number one reason is risk…no repair costs at stake, no mortgage payments, no agents and picky end user buyers to deal with…if you are bound and determined to get out of your job, don’t have a lot of money, and not a lot of contractor experience, give wholesaling a serious thought to launch your investing career……….and as always, call us if we can help you in anyway. You can wholesale a deal to us if it’s good enough, or we can wholesale a deal to you if you are bent on fixing it up yourself, just don’t try and add a doggy door, it’s impossible.

Be Happy and Prosper,

Kurtis

http://www.FarBelowMarket.com

Kurtis Squyres lives in The Coachella Valley in Southern CA, about 30 minutes from Downtown Palm Springs.

Kurtis has personally bought and “flipped” over 300 homes in San Bernardino, Orange County, and Riverside Counties over the past 12 years.

For six years, Kurtis served as a Merrill Lynch Financial Advisor to high net worth clients and managed over 25 million dollars of financial assets. Kurtis left the finance industry to pursue real estate in 1999, and is now a leading authority of the non-judicial foreclosure process in California.
Kurtis continues to invest in and teach real estate investing full time. http://www.farbelowmarket.com

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http://EzineArticles.com/?Heartfelt-Message-To-House-Flippers&id=1008812

By C Small

Every news story in print these days related to the real estate and housing market seems to predict disaster. Home prices diving, out of this world foreclosure rates, mortgage meltdowns, and stagnating market stories govern the headlines. As a real estate entrepreneur, shouldn’t this news keep you awake at night? Shouldn’t it make you rethink getting into house flipping in the first place? Shouldn’t it cause some serious concerns?

The short answer, to put it frankly, is not really. The housing market should have little to do with your success as a house flipper. Your success as a flipper depends on many things: acquiring undervalued homes; making the right fixes; keeping costs small; making your property the best in its neighborhood; but it does not depend on the market itself.

Why then, are all the house flippers saying the sky is falling and the real estate business is hopeless? Because they aren’t in this business with the right mindset. They are speculators, hoping to acquire a property and let the market itself boost its value. When the market stops going up, these speculators unexpectedly experience their profit dry up (or turn into huge debt) and they think the flipping business is over. When the market stops increasing for flippers, it can be a bonus, as the price for buying properties stops going up, making high end homes more affordable, making the market for the less desirable homes more saturated, and providing you with a great vehicle to sell your great home and purchase your fixer upper. The prospects for success can actually go up in a stagnant or declining housing market.

If you are beginning in this business your perspective should be one of creating equity. See your property flip as an opportunity to take something that is not worth much, add something to it, and get it to someone who will pay top dollar. It shouldn’t matter that the market itself is not appreciating in value, because you are creating value and equity completely separate and apart from the market!

Remember this any time a naysayer tells you your real estate dreams are farfetched: you don’t need market improvement to flourish. All market increases do is enhance your profit margins. All that is required is the right property in the right neighborhood that needs the right fixes. Find those three things and it doesn’t matter what the market does, you can be successful.

C Small

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http://EzineArticles.com/?Does-the-Housing-Market-Affect-Property-Flipping-Success?&id=1013359

By John Krajewski

Real estate investing isn’t just for retirees looking to earn income. The promise of guaranteed earnings and the huge earning potential make REI one of the more popular ventures for many younger folks as well. With REI, the old adage of starting with the end in mind rings very true.

To begin, decide what type of REI you want to do before you ever look at your first house. Are you looking for a property to flip? Are you planning to renovate the property for some other use? Will you rent it out as an income-producing property? What kind of area are you looking to buy in - rural, urban, or suburban? Knowing which direction to head in will save you some time and help you find the professionals and funding that are right for you.

Once you know what type of real estate investment you want to make, start talking to area real estate agents. The right agent will know the market, and be able to offer guidance from an investment perspective. Depending of the type of REI you have chosen, a knowledgeable real estate agent will be able to help you quickly locate properties that fit your needs and your budget. Don’t be afraid to let the agents know you are talking to others… REI is a huge money-maker. The promise of commission on a huge sale will be more than enough to make the real estate agents compete for your business.

Once you have an idea of what’s out there for the type of real estate investment you want, start shopping around for financing. Have no credit or bad credit? Consider creative financing through private money lenders. PML’s are often the funding choice for companies and well established real estate investors. They offer flexible funding terms, and can also put up money fast … two very important things to keep in mind on deals that must close quickly. Otherwise, talk to banks and other financing companies to find out what’s out there. It is best to prequalify for funding before going house hunting. This will prevent headaches later for everyone!

Real estate investing is not as hard as people might have you believe. It does take research and persistence. The income potential is amazing… there are tons of true stories out there of everyday, normal people making thousands of dollars through REI. It is possible, and it can be you. If you do your homework, and master the basics, it won’t be long before people are reading your story of excellence and success.

About the Author:

John Krajewski is a 33-year old real estate investor who has spent several years building a successful REI portfolio. After facing and conquering the common REI trials and tribulations that most new investors deal with, John has poured his wealth of valuable information into one amazing e-book: Secrets to Foreclosure Profits. This powerful e-book teaches real estate investors of any level how to profitably invest in foreclosure properties using the insider secrets and little-known tips discovered by John during his direct experience with foreclosure REI. Besides real estate investing, John also enjoys snowboarding, mountain biking, networking with other investors, and spending time with his family. Learn more about John’s e-book Secrets to Foreclosure Profits at http://www.4closuresecrets.com

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By Simon Volkov

If you play your cards right, investing in foreclosed properties can be a very profitable venture. Although it’s not quite as simple as the late-night infomercials lead you to believe, the following tips can help you prepare for what lies ahead.

Before property is labeled “Foreclosed” it must first be placed for sale through a real estate auction. In order to purchase property through the foreclosure auction, individuals must place a minimum bid equal to the amount of the loan balance, along with any other costs associated with the process, such as accrued interest and attorney fees.

Typically, foreclosed real estate is sold “as is”. Occasionally, the ex-homeowner may still reside in the home and individuals who purchase the property will have to deal with having them evicted. This is not a pleasant experience, so conduct research on any foreclosed property you are interested in to determine if the home is vacant or occupied.

If your bid is accepted, it will be your responsibility to pay-off any liens and/or back taxes attached to the property. You will also be responsible for taking care of necessary repairs or renovations.

While it is true foreclosed property can yield a good return on your investment, it is imperative you engage in due diligence. Learn as much about the property as possible before placing your bid at auction. Keep in mind much of the real estate placed on the auction block is not worth the amount owed on the note. Therefore, you want to look for properties that do not have tax or creditor liens attached or those in need of extensive repairs or renovations.

If the foreclosed property is not sold through auction, it is returned to the mortgage company, who returns it to the bank. At this point, foreclosed property becomes real estate owned (REO) property.

Once foreclosed real estate becomes bank owned, the mortgage note no longer exists. Generally, the bank will negotiate with lien holders to remove or reduce liens placed against the property. They will also take care of evicting individuals still residing in the home. Occasionally, they will invest in repairs and renovations.

REO properties are frequently listed on bank websites. Included will be the name of the contact person, along with their phone number or e-mail address. Prior to contacting the specialist, thoroughly investigate the property and conduct research on the market value of other homes in the area where the foreclosed home is located.

If possible, obtain estimates to determine the cost of repairs or renovations. If you plan to do the work yourself, determine the length of time it will take to complete the repairs along with the cost of materials.

Keep in mind banks are just like any other business. Their eyes are on the bottom line. If you want a good deal on an REO foreclosed property, make a respectable offer and leave room for negotiation. More often than not, the bank will respond to your original offer with a counter-offer. You may have to submit several counter-offers to obtain the price you want. Be persistent and remember, virtually everything in a real estate transaction is negotiable.

Not every foreclosed property will be a good deal. You will probably have to sort through quite a bit of rubbish in order to find your diamond. But, it can and does happen and there’s no reason you can’t grab your slice of the real estate pie.

Simon Volkov is a private Real Estate Note Investor in Orange, California. He offers nationwide investment opportunities for serious investors via RSS feed and email subscription. His website provides resources and articles focused on today’s real estate market. Subscribe to his free investment opportunities by visiting www.SimonVolkov.com.

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http://EzineArticles.com/?Tips-for-Investing-in-Foreclosed-and-Real-Estate-Owned-Property&id=1015404

By K. Kleinholter

You usually don’t hear people talking about “hidden” costs when flipping houses, rather, you hear about how much money they made.

“And we really didn’t have to do much either!”, you’ll hear them say.

While there are flipping jewels that do indeed fall into people’s laps, the reality is that those flips are few and far between. If you’re considering flipping, you certainly want to go into it with a lot of enthusiasm, but with a healthy dose of caution as well. Learning to “read” houses when inspecting them before buying will help you see more clearly what possible repairs might be needed to make the house ready for the market. Not paying attention to certain warning signs of structural problems could mean the difference of making, or losing money altogether.

If you’re relatively inexperienced at flipping, or considering your first flip, pay attention to what the house is “telling you”. You could go into it thinking you will make some great money, only to spend any profits on major repairs. Remember, in many flips, you are buying foreclosure property, property with tax liens against them, etc. So, understand that you are buying the property as is, warts and all.

Some major repair signs to be on the lookout for, are the following:

Having this particular increased-awareness mindset makes good business sense when evaluating any piece of property. Consult with a professional such as a general contractor or realtor and have them help you assess any possible repairs and related costs. When you have all of the facts and figures in front of you, can you then make an informed decision. When you do, in fact, submit a bid, you’re price will reflect any necessary repair expense.

If you’re relatively new or considering entering the house flipping business for the first time, please visit http://www.House-Flipping-Helper.com for more information regarding all things house flipping and remodeling.

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http://EzineArticles.com/?House-Flipping—Become–Aware-Of-Hidden-Repairs&id=893705

By Bryan Benson

An over leverage home is one that you want to stay away from… meaning that the amount owed is more than what the house is worth, even more than the AVR. About the only thing you can do with these homes is list them.

An exception might be if there is significant damage to the home, for example if there is fire damage. Under these circumstances, selling the home by traditional means may not be an option. The average buyer does not want to buy a house that needs repairs, they want a house that is ready to go… ready to move into and start making it a home.

But people in this business are not the average buyer. In fact, homes in this condition are exactly what is sought after. Spending a couple thousand dollars in repairs is all that is needed, and then the house is back in shape to sell to that average buyer, which is what generates our profit.

Complications can creep in when it is a HUD home. They usually insist on listing the home, which only a realtor can do. But again, we’re dealing with a home with excessive damage which can’t be listed the traditional way. So, do you just tell the mortgage company the place had a fire so there’s no point in listing it because no body’s going to buy it, or should you play the game for a while?

That’s really the question. Well, the answer is you’re going to need to play the game. HUD mortgage companies have a set of parameters that they have to push this thing through in order to get it to meet their criteria. Because even lost mediators are subject to internal audit and if a deal ever comes up down the road as having not been done by the book, their butts are on the line. One of the most common parts of a short sale is for the seller to have had the house listed at one time previous to your negotiation with the bank. The bank wants to know that all normal methods of selling this house for some value greater than what you would presumably offer have been exhausted.

You may also be wondering if you should let the bank know that the place is vacant until they’ve figured out for themselves via the VPO or something. It is preferred that the house be vacant and you having the control of it and being the VPO contact. So at that point you’re going to have to disclose the fact that it is vacant because they are going to need to get in it to do the VPO.

For additional information on real estate investing and the hot foreclosure market, I recommend joining Ron LeGrand’s href=”http://www.MillionaireMakerNewsletter.com” mce_href=”http://www.MillionaireMakerNewsletter.com”>Millionaire Maker Newsletter The newsletter itself is loaded with great tips and resources, and he’s usually giving away something free like a CD or something that generally has a lot of great information on it.

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By Leslie Collins

In order to successfully flip real estate contracts whether you’re involved with potential rehab projects or pre-foreclosures you need to have a solid investor network to present your ‘package’ to.

It is imperative long before you lock up any property that you can, within a few phone calls, contact active and willing investors who will consider your offer.

The key to successful real estate contract flipping is making it easy for your upstream investor group to quickly resell properties you’ve assigned to them. Consistently providing well priced deals that your investor group can turn over quickly gives you the credibility you need to flip contracts on an ongoing basis.

Many rehab investors have more money than time so by you doing the legwork you are providing them a valuable service.

Here are FIVE tips that’ll help you gain credibility with potential investors looking for properties:

1.) Accurate repair estimates - Investors don’t like surprises. When evaluating a property be able to estimate the repairs by a margin of about 20%. If you underestimate your repair cost, your investor will have to re-evaluate whether or not the property is really a good deal or not.

2.) Accurately estimate the Market value of the property - Don’t base your property value estimate on the asking price of other houses that similar in spec. You need to base your value on similar houses that have been sold in the area in the last 30-60 or 90 days.

3.) Understand the impact of holding costs - Know the average ‘Days On Market’ (DOM) for properties selling in that area. This will have a critical impact on your investors holding costs and ultimately your profit. If the average DOM is 90 this means the investor can expect to pay out 3 months of loan payments, most likely borrowed from a hard money lender at somewhere between 12-14%.

Of course if you know the average DOM is 15-30 days your deals will be all the more attractive to outside investors.

Again due diligence in the form of market research on your part will insure you are credible and are communicating the most accurate information regarding DOM to your investor group.

4.) Research the property - be prepared to examine and communicate to your investor group issues regarding deed problems, structural records, comps, zoning status, insurability report, and other key details that would affect closing and or re-sell. Again no surprises.

5.) Be serious and know your role - in other words, treat this as a real business. You are providing a service, a specialized niche that requires a combination of negotiating skills and knowledge of the real estate market. If your assignments turn over or ‘flip’ quickly and at the right price you will be getting weekly calls from investors providing you endless business.

Summary

The good news is flipping real estate contracts can be learned; there are some really good methods in the form of e-books available which are not very expensive. Successfull real estate contract flipping involves a mix of knowledge and experience, and probably the best way to get your foot in the door making money in real estate. Why not start the learning process? Most realize there’s nothing to lose and opens the door to acquiring wealth.

Leslie Collins has executed hundreds of preforeclosure deals in the last 5 years - which actually helped distressed homeowners as well as generating thousands of dollars in profits. Interested in learning about assigning realestate contracts for profit? - Visit: Find and Assign - beginners guide to real estate profits.

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The mortgage loan is given to the borrowers by taking their property documentation under the custody of the creditors till the last installment of loan charges. The loans are categorized into the various kinds, including personal loan, pay day loan, secured loan and unsecured loan etc. every one wants to have cheap loans with cheap interest rates. The business insurance is provided by the insurance companies for the establishment of the business with full security. The student loans are offered for the financial assistance of the needy students. The home equity loans are offered for the home owners who want to take loans by providing the real documents of their real estates. The business loan is particularly offered for the enterprisers to establish their business successfully.

By Bruce Swedal

One of the hottest trends in real estate over the last few years has been “flipping” houses. You see it everywhere, in books, articles and reality TV shows. Flipping is hot and why not? There are several ways to do it successfully and here is a list of the most common.

The first way we will discuss is the most common. That is the buy it, fix it then flip it method. Basically you buy a fixer upper and repair it then sell it for a profit. Many successful real estate investors have been doing this for years. They have tested out the system and proven it for you. The key is to purchase home as a bargain that requires as little fix-up as possible and you can typically generate $15k to $50 in profit.

Another method for flipping is the as is flip which works in hot markets. If you are not interested in fixing up properties flip it untouched. For this to work you typically need a home that does not need much in the way of repairs. In a hot market you can price the home for sale just below market and quickly turn a profit in a short period of time.

Then we have the buy it and refinance it with a lease option flip. Using this method for flipping you buy the home, fix it up and sell it for terms. That means you are selling the property in a lease with an option to buy later. The mortgage payment for the home will be covered by the rent payment you receive during the lease. If your tenant later exercises the purchase option you will get your profits without incurring the cost of a realtor in most cases.

Yet another method of flipping is called the wholesale flip. You can use this method because the buy it, fix it and flip it scenario is so hot. When there are a lot of investors in the market seeking fixer uppers you can capitalize on this trend by finding the properties that show promise and re-selling them to investors ready to fix them up. Using this method does not generate the per unit profits that that fix it and flip it method does, but you can turn properties much faster for a smaller profit and not that much effort.

The last tactic to be covered is the pre-construction flip. This method should be used when the real estate market is very hot and appreciating at a rate of around 2% per month. By purchasing a home from a builder before construction is finished you can then complete the purchase when construction is complete and immediately resell the home for a profit. There is a potential down side on this method if the market should slip. Then you could end up with a home that is worth less than when you ordered it 6 months previously. Typically when home buyers are in the market for a newly constructed home they will pay a premium over the normal price if they can get a nicely upgraded home that is available to move in now.

If you are considering flipping homes for profit one or more of these methods should work nicely for you. You just need to evaluate the market you’re in and choose the method for flipping that will work best based on the market situation.

When you want to sell your home wouldn’t it be a good idea to have it listed on the href=”http://www.bruceswedal.com/” mce_href=”http://www.bruceswedal.com/”>Denver Real Estate website with the most traffic? Find additional resources at the Authority href=”http://www.authoritydirectory.com/Real-Estate/” mce_href=”http://www.authoritydirectory.com/Real-Estate/”>Real Estate Directory.

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By Clay Davis

It is easy to say that you want a home investment that needs fixing up, but it can be a challenge to find one in just the right location. A home that needs a little TLC is an excellent way to buy a one for less than market value and that you can later resell for a higher price. And if you know where to look, there are some great deals to be found.

Besides having a little bit of good fortune, you also need to be smart about how you search for your fixer upper. You first want to check around neighborhoods that you are really interested in. Many homes do not advertise themselves as fixer uppers, so you need to start by evaluating many different houses in your price range to determine if they are possibly bigger and better than what you think they may be. This can be done by scanning the neighborhood for “for sale” signs or by contacting a local real estate agent who might know of a fixer upper for sale.

You can also check the classified ads of your local paper. Look for a home that shows signs of requiring work, although some will be listed as fixer uppers. Anything that says it needs a little TLC or is a “diamond in the rough” should be regarded as fixer uppers. If it is in your price range, take a closer look to see in what condition it actually is.

Another means of finding a home that you can fix up and later resell is to search for foreclosure homes. This can be done through the Internet or a foreclosure auction web site that alerts you to foreclosures in your area. These homes are usually in some sort of disrepair and need work. They also sell for considerably less than market value, so you know you can get a good deal on them if you are willing to put in the time and effort.

There are actually many web sites that list only fixer uppers, so it is a good idea to do some research on your own. You can search through these listings to locate a home that you not only can afford to buy, but also afford to repair. It may sound like a challenge - and it is - but if you know where to look and what to look for, then it is an investment that can really pay off over time.

For practical home selling and buying information, please visit http://www.homes-sell-buy.com, a popular site providing valuable insights about great home locations and home related information that will be of value in your search for the perfect home community.

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