forclosures
Avoid these real estate markets
Thursday, September 8th, 2011 | Bank owned, Foreclosures, Real Estate Investing | No Comments
That headline sounds pretty ominous, doesn’t it?
Don’t let it scare you! While it is accurate, the flip-side is that there are a whole lot of real estate markets that you can hone in on and make a killing!
That’s what I’m doing in my local market. I told you about my most recent finds, and that was just in one afternoon! The trick is knowing where to look.
For years, many cautious investors have been saying that now is not the best time to invest in real estate. That is one train of thought, and it has, in fact, saved many people from losing a lot of money. BUT, if you have the right information and resources, now’s as good a time as ever. Maybe even better!
Things are finally **starting** to change in select markets. You have to know what those markets are.
— > Know How to Spot Strong Markets here <—
When you click on the link above, you’ll have the chance to gain access to my good friend, Ken Wade’s forecasting video and eBook. He will show you how to get access to tomorrow’s real estate deals, TODAY. And his eBook won’t cost you a cent.
Imagine having a crystal ball for real estate deals in the palm of your hand. Find out which markets are at the top, which are at the bottom and which ones are rebounding. Even better, find out what’s going on in your own backyard.
Ken is a Harvard-trained CPA and has done over $100 Million in real estate deals, so I’d say he knows what he’s doing.
Don’t get me wrong, it’s bad and going to get much get worse in many markets; you still need to avoid them for a while. However, it’s no longer true across the board …you can start dipping your toes in (if you know where).
There’s NOTHING more important than getting in (and out) at the right time, THAT’s how you create generational wealth with real estate and avoid the catastrophe millions of people have been living through.
You have nothing to lose – check it out today.
—> Click here <—
Rip off my new business model that has 8 “Profit Pockets”
Monday, August 29th, 2011 | Real Estate Investing | No Comments
What I am about to share with you IS EXTREMEMLY ADVANCED.
Over the past 6 months I’ve experienced a BRAND NEW, SEVEN FIGURE, BUSINESS BREAKTHOUGH….and now that it’s proven, I want to tell you all about it.
********************
DISCLOSURE
********************
This is intended for the most serious real estate professionals only.
If you are not seriously striving to create a business that generates 1M dollars or more in revenues, then do not attend this class.
If you are lazy and don’t like to work, then do not attend this class.
If you don’t have any resources or money (or no way to get it), then do not attend this class.
Reason is, what I’m about to share with you is going to take a little work, some money (not a lot but some), resources and time.
BUT if you are the right type of person, this is what you’ve been looking for.
So let me tell you who this IS for.
If you have been a real estate investor for at least 3 years and have done at least 25 transactions – THIS IS FOR YOU.
If you are a real estate agent with at least 5 years’ experience and have done at least 35 transactions – THIS IS FOR YOU.
This material will most likely “go right over the heads” of all newbies who have never done a deal.
This Wednesday I’m holding two live webinars where I will reveal to you my newest Real Estate Business and Profit Model.
What’s so important about this model is that there are at least 8 different “Profit Pockets” that make you money in this model.
In the past 30 days I have profited from each of these 8 different “Profit Pockets” and you can to…….IF you set up your real estate enterprise the way I’m about to show you.
In the month of September, I anticipate making 6-figures or more by having this business model work for me.
Register for the Wednesday 2pm ET class here.
https://www2.gotomeeting.com/register/941932082
Register for the Wednesday 9 pm ET class here.
https://www2.gotomeeting.com/register/487535066
I will also be giving away “Systems Process Maps” that explain in stunning VISUAL detail EXACTLY how to set up these “Profit Pockets” in your own business to all those who attend.
While other real estate professionals are getting out of the business mine is flourishing. See how!
JOSH
P.S. This is NOT a launch of a new product and there won’t be anything to buy after this class is over.
I simply want to show you how you can set up a real estate enterprise like this for yourself.
It’s so powerful I had to share it with you as soon as the model was proven. NOW IT IS!
Pick a day and time and jump on this advanced training class.
Register for the Wednesday 2pm ET class here.
https://www2.gotomeeting.com/register/941932082
Register for the Wednesday 9 pm ET class here.
6 Parts to Rehabbing Successfully
Thursday, August 25th, 2011 | Foreclosures, Real Estate Investing | No Comments
Rehabbing is a great way to get started in real estate investing. Doing it properly will help you avoid becoming overwhelmed – and keep your budget intact. Here are six basic parts of the process that are consistent among successful real estate rehabbers:
Part 1: Before Work Begins
• Rekey or change out all locks (make extra key copies) and place a lock box on the front door. If the property is in a depressed area, board up the windows.
• Put all utilities in your (or your company’s) name and schedule them to be turned on the day you close.
• Getting the permits out of the way will free you up and help you avoid potential problems.
• Some work can begin pre-closing. Foundation repair, if necessary, is critical before doing any other work.
• If the property needs pest control services, have them come by before you start work.
• Have a plumber and electrician go through the property to completely shut things off before you begin related work.
• If the seller allows it, start tearing down cabinets, etc. Get a cleanup crew to pick up the debris. Sanitize the house.
Part 2: Roughing Out
• Replace plumbing under the house or route additional plumbing if necessary.
• Remove rotted framing and subfloor. If damage is structural, get the right permits and people to repair it.
• Replace damaged exterior doors, ensuring that they are to code.
• On a standard rehab, replace only those windows that need it.
• Prepare the exterior for painting or replace with siding. Replace and paint exterior trim, including soffits and fascia.
• Curled, warped or faded roof shingles signals a replacement job. Get a good roofer for extensive repairs. Replacing a few shingles, flashing or vents can be done inexpensively.
Part 3: Mechanical Systems
• Hire a chimney sweep to inspect and clean the fireplace.
• Have a specialist inspect and clean out the heating, ventilation and air-conditioning (HVAC) system.
• Have new plumbing and electrical installed to code. Be sure you have all permits and get the work inspected before moving on.
• After inspection, install insulation in exterior walls.
• Repair or replace driveway, patio and walkways.
• If the septic system needs repair, be sure it’s reported in the purchase contract and negotiate who is responsible for the cost.
Part 4: Unfinished Surfaces
• Replace or repair drywall in walls and ceilings.
• Replace the garage door if necessary.
• Examine and replace gutters and downspouts.
• Install wood floors, if worthwhile.
• Replace or reface cabinetry.
• Repair or replace interior doors.
Part 5: Finished Surfaces
• Paint the interior and exterior.
• Replace countertops with your chosen material.
• Replace flooring with your chosen material.
• Ensure that all plumbing is installed properly and leaks are eliminated.
• Install cover plates, jacks, lights, smoke detectors, etc.
• Install new thermostat and vents.
• Finish or refinish wood floors last, to minimize damage from traffic.
Part 6: Final Details
• Little additions, like doorknobs, hardware, house numbers, towel bars, etc. can add to the appeal – and the budget. Take care not to overdo it.
• Install appliances. It’s often cost-effective to work through one supplier.
• Install carpet, if any. Neutral colors are best.
• Have landscaping done after the major work is complete to prevent damage to the lawn.
• Perform final cleaning.
• If desired, a local designer is inexpensive and can help stage the property for extra appeal.
• Do a final walkthrough to ensure nothing is overlooked.
Many people get their start in real estate investing by buying a house wholesale or in foreclosure and rehabbing it. Following these key parts will help keep your enthusiasm up (and your budget down).
To learn how you can start your real estate investing business, click here.
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Is Your Housing Market One of the 10 Worst?
Wednesday, August 10th, 2011 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
It seems like demand for housing has just run out in some housing markets. While 18 of the top 20 housing markets have begun to improve, other places like Boston and Washington are holding steady. Foreclosures are high. We’re still trying to recover from the robo-signing scandal. More houses are on the brink of hitting the foreclosure market, sitting vacant. When talking about markets where the housing situation is worst, you’ll find cities that were being hit hard many years ago. Housing prices have been falling sharply, vacancy rates have risen consistently while the demand for housing decreases. These also tend to be large, older cities like Dayton, Detroit and Atlanta. But what, according to a study conducted by 24/7 Wall Street, are the ten worst?
10. Oklahoma City, OK – Vacancy rate of 5.2%, rental vacancy 9.6%, unemployment 4.9%
9. St. Louis, MO – Vacancy rate3.3%, rental vacancy 11.4%, unemployment 8.6%
8. Kansas City, MO – Vacancy rate 3.7%, rental vacancy 11%, unemployment 8.4%
7. Detroit, MI – Vacancy rate 2.4%, rental vacancy 17.2%, unemployment 11.6%
6. Dayton, OH – Vacancy rate 4.7%, rental vacancy 10.7%, unemployment 9.3%
5. Baton Rouge, LA – Vacancy rate 3.9%, rental vacancy 13%, unemployment 8.4%
4. Atlanta, GA – Vacancy rate 5.4%, rental vacancy 11.8%, unemployment 9.7%
3. Memphis, TN – Vacancy rate 4%, rental vacancy 13.5%, unemployment 10.1%
2. Indianapolis, IN – Vacancy rate 5.2%, rental vacancy 13.5%, unemployment 7.8%
1. Tucson, AZ – Vacancy rate 6.8%, rental vacancy 15.9%, unemployment 7.8%
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Nearly 27% of Mortgages Rejected Nationwide
Sunday, July 3rd, 2011 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Across the country, banks are hindering the housing market recovery due to their cautious lending practices. This has resulted in an increase in the amount of mortgage loans being rejected by these largest banks. The 10 largest lenders together have denied nearly 27% of all mortgage applications. Where they once were free and loose with their lending standards (which got us into the dire situation we’re in now), many agree that things have swung too far in the other direction – now being too stringent in their lending standards. The popular sentiment is that the lending standards need to be easier for mortgage borrowers in order to help the US economy on the road to recovery.
Check out this graphic below, and you’ll see how the denial rates (the darker the red, the higher the percentage) are concentrated in the south and the so-called “Rust Belt.”
For the informed real estate investor, there are many avenues available to successfully invest and grow their business. To find out how, check this out.
Cities Still Registering Low Home Prices
Saturday, July 2nd, 2011 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
The housing market is not yet gaining the momentum it needs to recover. In the most recently released report from Case-Shiller. Robert Shiller predicts property values will continue to fall another 10-25% in the coming five years. Nineteen out of 20 major cities showed a year-over-year drop. Washington was the only area to show an increase (4%). Some cities actually hit new lows from 2006-2007, which Cleveland, Detroit and Las Vegas hit their lowest levels in more than a decade.
The housing market is not hitting its’ stride yet. Sales of previously-owned homes were down 3.8% in May over April. New home prices dropped for the first time in three months – by 2.1%. One factor in this is continued competition in the number of foreclosed homes on the market – sitting at an inventory of 1.8 million homes. That group alone will take years to move.
Borrowing is still difficult. People are feeling less wealthy and equity is shrinking. The unemployment rate is still hanging at around 9%. Developers are less willing to take risks on building new homes that will just sit vacant. The housing market is still a direct impact on the overall US economic recovery.
Amazingly, there are still huge opportunities for the educated real estate investor to capitalize on and thrive in today’s market. To find out more, click here.
Investors Rule the West Coast
Wednesday, June 15th, 2011 | Bank owned, Foreclosures, Real Estate Investing, Real estate short sales | No Comments
If you’re a real estate investor on the West coast, you’re sitting in a great position these days. Why? Because according to ForeclosureRadar, “third-party investors are reselling foreclosure properties they’ve scooped up at auction at a rapid pace in states along the country’s western seaboard,” including California, Arizona, Nevada, Washington, and Oregon. Here’s the best part – investors are moving distressed homes faster than banks are.
ForeclosureRadar tracks foreclosures and auction activity in the states listed above, and has seen one consistent statistic in all those states in May – a decrease in the amount of time investor’s need to sell properties purchased at foreclosure auctions. For example, in Arizona, investors were able to sell properties in 95 days, versus 150 days for banks. In California, it took just 134 days, versus 227 for banks. Similar numbers were seen in Nevada, Washington and Oregon.
The reason for this gap is that investors have “become better at turning a foreclosure into a marketable property that attracts buyer interest,” according to the CEO of ForeclosureRadar.
To read more, click here.
To learn more about kicking your real estate investing into high gear, it’s easy to get started – just click on the “Click here to gain access” button in the box to the right – “Join Josh on the 4 Strategies That Create An Instant Cash Infusion Online Event.”
3 Strategies to Make Money Now in Real Estate Investing
Friday, June 3rd, 2011 | Bank owned, Foreclosures, Real Estate Investing, Real estate short sales, Short Sales, Wholesale properties | 1 Comment
If you want (or NEED) to make money right now, then I’m going to show you the easiest, fastest and safest way to cash your next check in real estate in as little as 30 days, and repeat that process again and again. You’ll discover three very simple and very proven ways to make $500 to $20,000 for every deal you do. The best part is you won’t need…
- Money (or have to beg others to borrow it).
- Credit (or qualify for any bank loans, whatsoever).
- Experience (this is easy, and you can start immediately).
- Time (2 to 3 hours average per deal is all it takes).
These strategies are super simple; you can do this with zero experience:
- If you can find a house with no equity– which isn’t hard to do… You can do this!
- If you can find a buyer who can’t get a bank loan– which isn’t hard to do… You can do this!
- If you can find a house headed for foreclosure – which isn’t hard to do… You can do this!
- If you can find a short sale investor in your town – which isn’t hard to do… You can do this!
And get this… You won’t EVER need to take ownership of a property (you’ll NEVER take ownership of a home if you don’t want to — you make money connecting the dots!). You can make a substantial and consistent income as a real estate investor and you’ll never need to buy or take ownership of a property. EVER!
Here’s what we know:
- Today’s housing market and economy are a total mess.
- There are way too many houses on the market with no equity.
- Banks aren’t lending, even to qualified applicants.
- The strategies for making money in real estate take too long.
So how can you and I take advantage of this real life scenario? I’ve perfected these three easy strategies you can put into action for an Instant Cash Infusion. Anyone can do this, from anywhere, with only a few hours of time each week, starting with nothing, no money, no credit – just connect buyers and sellers and you will regularly cash $500 – $20,000 checks.
The 3 Instant Cash Fusion Strategies are:
1. Convertible Equity Option Assignments
- House is paid off OR has lots of equity.
- These typically need a lot of work.
- Sign “Option Contract” for $42,000.
- Record “Notice of Option” in public record at courthouse.
- Sell your option for $47,000 to rehabbers, who are easy to find at the local foreclosure auction.
- Release Option and Collect a $5,000 “option release” fee from the new buyer.
Equity Option Assignments are simple and the easiest to explain. Here’s an example from my investor friend Justin from Cincinnati: He finds a house in probate after talking with a few attorneys. The house is in shambles. The executor says he’ll sell it for $22k. Justin finds a buyer for $32k. Justin pockets $10k without ever owning a home and without a bank involved.
2. Short Sale Option Assignments
Seller Lead:
- In default with no equity.
- Sign “Option Contract” with seller.
- Record “Notice of Option” in public record at courthouse.
- Sell your option to another short sale investor.
- Release Option and Collect a $500 – $5,000 “option release” fee.
If you can find a house in foreclosure -which isn’t hard to do, get an option on the house and then sell your option to another short sale investor in your area who is willing to wait the 4-7 months to cash the big checks – who are everywhere – you can do this and you can collect a $500 to $5,000 check in the process And the best part of all is that short sale investors are excited to have bird dogs like you bring them deals.
3. Convertible Master Lease Option Assignments – This is the one that’s most exciting to me.
Seller Lead:
- No Equity & No Default
- Remember there are 20 million of these leads out there
- Sign “Option Contract” for whatever they owe
- Record Notice of Option in public record at courthouse
- Sell your option to lease option buyer
- Buyer puts $3-5% down and makes payments
- Release Option and Collect a $3,000 – $20,000 “option release” fee
- OR
- Sandwich “Option” – Cash Now, Cash Flow, Cash Out
These strategies are super simple; you can do this with zero experience:
- If you can find a house with no equity– which isn’t hard to do… You can do this!
- If you can find a buyer who can’t get a bank loan– which isn’t hard to do… You can do this!
- If you can find a house headed for foreclosure – which isn’t hard… You can do this!
- If you can find a short sale investor in your town – which isn’t hard… You can do this!
- This works fast. You can be driving in leads for sellers and for buyers within 24 hours, and it works in almost any market
- If you’re new investor, this is your golden ticket!
- And if you have experience and need to fix your cash flow problems, here’s your answer.
Most investors are just throwing away these deals because they have little or no equity, not knowing they are hidden treasures! To learn how you can tap into these goldmines, or to kick your own real estate investing efforts into high gear, click here .
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8 Steps to Successful Wholesaling
Friday, June 3rd, 2011 | Bank owned, Foreclosures, Real Estate Investing, Short Sales, Wholesale properties | No Comments
Wholesaling properties is a fantastic way to get into real estate investing with little or no money. On paper, the process is simple: find a bargain property, get it under contract and sell to a bargain buyer. That buyer will either buy the property to rehab and sell, or buy the property to rehab and use as a rental. By learning how to wholesale, the new investor will learn many essential skills that are crucial to building a successful real estate investing business.
So as a wholesaler what kind of money can you make? Remember, you’re going out getting the lead, locking up the property and then finding a buyer. What you’re not doing is taking the risk of owning the property . . . along with the risk of rehab, managing contractors, finding tenants, or taking a risk betting on the market. For your role in wholesaling property, you will be paid on average anywhere from $5,000 to $15,000 per transaction. Count on making about 10-20% of the value of the property you are wholesaling. Of course, this depends on your market and the quality of the deal. At SREC we’ve seen plenty of transactions where we made less, as well as plenty of transactions where we made more, but $5k-$15k is an accurate range.
There are eight main steps to building a successful wholesaling business:
- Marketing – If you don’t have a plan to get a steady stream of leads month after month, then you risk falling into the same feast and famine trap that often afflicts those in the real estate business. When investors fall into a pile of cases, they usually get so focused on what they have in hand that they stop advertising. Once those initial transactions have closed, there’s nothing to follow. You need to put a plan in place made for the market where you are going to be doing business.
- Property Evaluation – Learn how to buy right, and you’ll have no problem getting transactions done because bargain buyers will want what you have to offer. You need to evaluate the street scene, the Seller and the property. At times, it will be hard to stick to the numbers because you’ll want to do the best you can for the Seller. At the same time you need to be aware that you don’t want the Seller’s problem –– the house –– to become your problem because you paid too much and have limited your exit strategies. Buy cautiously, buy smart, and stick to your numbers.
- Making an Offer – Making the offer is something that good investors work toward from the initial buy call. Each investor has their own way of getting the information they need to make a decision. Likewise, each investor has their own way to approach a Seller with the offer. Some are methodical in setting expectations throughout the process and will make an offer over the phone after the appointment, but only after they’ve done extensive research and have contacted potential buyers. Others like to get out to the house, meet with the owner, and do it face-to-face so that they can lock up the deal fast. Some investors like to have their exit strategy in place before they get the house under contract, that way they can be sure to meet the expectations they have set with the Seller. Others like to lock the property up first using the contract, and then determine the exit strategy trusting that their buyers list will come through for them.
- Negotiating – Two simple rules: 1) If you’re not embarrassed by your offer, then you’re offering too much; and 2) If you make an offer and the Seller jumps at it, you’ve probably left money on the table. For you to be a successful real estate wholesaler, you have to leave the majority of the profit to your buyer. Your buyer is taking the risk: You need to make sure that you are helping to set up that buyer for success, not failure. Remember, when focusing on wholesaling, you’re not looking to hit home runs, but many singles, doubles and even a few triples. The wholesale business is a volume business, so set it up accordingly
- Securing the Contract – Some investors have been known to get the contract signed at the first appointment while others take more time and like to get the paperwork finished at their office. There’s no rule here, it all depends on how you want to run your business. Be sure that copies of the contracts, addendum and other associated paperwork be given to the Seller for their records. If at the first appointment the seller is willing to sign a contract for your offer price (or a slightly higher negotiated price) then by all means sign the contract at the first appointment. Then send them a copy after you get back to the office and have a chance to make copies.
- Finding the Buyer – If you don’t have a buyer, then you don’t have a transaction . . . at least one that’s going to put money in your pocket. If you are planning to build a business that uses wholesaling as its primary exit strategy, then you will need to cultivate a list of buyers. Building a huge buyers list of hundreds of buyers will not happen overnight, but if you commit to networking locally and using Internet marketing strategies, you will cultivate a buyers list that you can use time and again when you have properties to sell.
- Assigning the Contract – Another name for wholesaling is “assignment,” in that you “assign” the contract to a bargain buyer that will close on the property. Draft an addendum that protects your interest so that you can collect your fee. While you can get paid outside of closing (P.O.C.), you will want most of your assignment fees and profits to be paid out at closing off of the HUD1 from the title company as a way to avoid any misunderstandings should the deal fall out. Likewise, each buyer should be vetted. The degree that you dive into someone else’s work is up to you. In this industry, never take anyone at face value.
- Seller Communication – Keep the Seller informed every step of the way. If you’ve changed your mind about wholesaling the property and instead wish to buy it to rehab and sell or keep as a rental, tell them. Remember all they want is for the house to sell. If, as a wholesale deal you find an end buyer, tell them. If the buyer falls out, tell them. Make sure that they have the contact information for the title company you are closing with so that they have another source to verify the information you are giving them. You can avoid a great deal of trouble if you make a consistent effort to keep the Seller in the loop.
For those investors who focus on wholesaling properties full time, it’s a volume business. The numbers add up quickly, and if you put the right system into place, you can easily get multiple deals competed month after month. Wholesaling is a great way to learn about real estate investing while building a business that will lead into doing more sophisticated and lucrative deals. It’s also the best way to make fast cash in real estate. Depending on your buyers, you might be able to close transactions in as little as seven to 45 days. Finally, understanding how to wholesale properties keeps your business agile when considering different exit strategies. The more ways you know how to make money off of every “buy” call that comes into your office, the better your chances are of building a business that supports the lifestyle you want.
To learn more about wholesaling houses, or to kick your own real estate investing efforts into high gear, click here .
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Best Spots Around the US for Flipping
Tuesday, April 5th, 2011 | Bank owned, Foreclosures, Real Estate Investing | No Comments
Last year, the national average for flipped houses was 7.9% of foreclosed properties. “Before the housing market crashed, house-flipping was a sport that even amateurs could play. Investors would swoop in, buy a property or two, and watch as the buoyant forces of the market brought the price higher and higher.”
But where are the best spots in the country for house flipping? Click here to find out.
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