REI Newbie

Name Your Price Home Repairs

2009-05-14T09:24:00.000-04:00

Service Live is kind of like a cross between Elance and PriceLine for house services; you name the price you're willing to pay for a given job and pre-fund your account, then you get a list of pre-screened contractors who are willing to work for that price, you choose one, and when the work is done, you release the funds.

ServiceLive.com is the only online services marketplace where you can name your price for home repairs and improvements. We help you to take care of your home or office on your terms.

Founded in 2007 as a wholly owned subsidiary of Sears Holdings Corporation, ServiceLive has spent the last year recruiting and conducting background checks on the best service providers in the country across a wide variety of home services - from handymen and home electronics pros to plumbers and computer experts.

10 Potential Monster Problems

2009-05-12T12:39:00.002-04:00

Before buying an investment property make sure you check into these 10 potential disasters waiting to bite you:

Oil Tank - especially underground; if oil leaks into the water supply you've got problems; any leaking needs to be cleaned up via DEP/EPA guidelines, it is quite expensive
Septic System - another pricey replacement if it is close to end of life; always have it checked by a professional before purchase
Termites - don't skimp here, a cheap inspection and warranty beats paying for damage by these critters, remember they don't have to be active for there to be unidentified damages
Lead Paint - if the house was built prior to 1979 you need to check this, remediation can be pricey, a lawsuit will be worse
Water Damage - if the sump pump ever failed or the house is in a flood zone you may see water damage on the lower levels; this could invite mold, weakened beams and walls, and other hidden problems
Sinkholes - more prevalent in some parts of the country; broken sewer lines, old mine shafts, shifting soil and underground water are some sources of this dangerous problem
Streams/Rivers - nearby flowing water can cause problems during unprecedented rain or other weather-related issues
Location - main roads, highway ramps, auto body or gas stations nearby, industrial areas near by, and other undesirable or hazardous locations can really eat away at potential value
Unidentified containers - make sure all unidentified containers are removed prior to closing; it could be oil, paint, or a hazardous chemical which may be difficult or expensive to haul away later
Roof - sagging beams, rotted underlayment, and other problems which could cause widespread damage during wet or windy weather

Check out crime in your neighborhood

2009-05-08T10:37:00.002-04:00

CrimeMapping.com will mash-up reported crime statistics and overlay them on Google Maps. currently it appears limited to CA, FL, and a few other states but as they bring on reporting agencies it should expand. I imagine it will always work better in a city since they keep better statistics and reports.

One of the great features that the website offers is a service that allows users to be alerted of crime in their area. If you live in one of the cities serviced by the website, you can choose to get emails when new crimes are reported in your vicinity.

This is a great way to learn about a new neighborhood before investing, or keep tabs on a neighborhood you own property in to see if it is going uphill or downhill.

REI Video Blogs - Marketing and Education

2009-04-06T11:17:00.003-04:00

Here is a great way to promote your business - use video.

My friend Jon is doing this at his new vBlog REITVSHOW.com

This site is also a great way to learn about real estate investing.
He just posted episode #9 - take a peek.

Opportunity is EVERYWHERE you look. The key is you actually have to be looking to find it and act on it. If you just complain about how nothing happens for you then its probably going to stay that way! If you really pay attention opportunity is right out your front door.

Two Ways To Collect Rent Online

2009-03-01T08:58:00.001-05:00

Smart Rent Online is an easy way to allow your tenants to pay online. You just set up your properties, tenants and rent, and then the service does the rest. It will provide reminders, track payments, notify you of payments and late status. Smart Rent Online processes fund transfer through ACH transactions. For each rent payment transaction, there is a fee of $2.00. In case there is a failed transaction, there will be failed transaction fee of $2.00. You can pass this on to your tenant as a convenience fee, or split it with them. You can try this service for free.

Rentomatic also provides online rent collection with tracking, invoicing, receipts, etc. There is no transaction cost per se, but a flat fee for each unit which includes all of these features.

Rentomatic is more than a payment collection tool, it lets you fill vacancies with ads that post to craigslist, Rentometer, Google base and Oodle, etc. It also tracks your ad response. It has a property management dashboard for all your properties, and can manage your properties, tenants, leases, and income/expense transactions.

COST FOR RENT COLLECTION: $5/mo per unit online processing for all 50 states, and in these 24 states via check or echeck; credit cards coming soon.

COST FOR MANAGEMENT FEATURES: Plans from $9.95/mo (up to 5 units), through $59.95/mo (unlimited)

It appears that you must by a management plan in addition to the rent collection plan if you want to collect rent online. So this is a more expensive plan than the previous, however, if you were looking for an integrated full property management solution then it could be worth looking into.

20 Landlord Tips for Newbies

2009-01-07T09:31:00.000-05:00

20 Tips I've accumulated over the years

Never call yourself a Landlord or Owner - you are a Property Manager
Get a PO Box and never disclose your home address
Allow up to 2 hours for paperwork before a tenant moves in
The quality of your property determines the quality of your tenants!
Use a competent real estate attorney
Document messages you receive from tenants (voicemail, etc.)
Use a specific key for vacant units - and only vacant units
Use cell camera to snap photo of driver license or applicant
Always dial *82 before calling tenants
Never give tenants your cell phone number
Before processing the application make a copy and mark it 'original', and the other 'Copy'
Document the Date & Time that the form was submitted
Send a bill on the 20th for next month's rent
Use the postmark date on the envelope to determine 'lateness'
Offer day shift officer $50/week to park his police car in property parking lot
Charge tenants $25 for missed repair appointments
Review insurance rates every 2-3 years.
Pay tenants referral fee if they find a new (qualified) tenant
Use dedicated bank accounts for your real estate activity
Use the Equal Opportunity Housing logo on all forms (http://www.rrv.net/usarealty/hud%20logo.gif)

Buildium is #1 in Online Property Management

2009-01-05T10:24:00.000-05:00

A nice property management application that comes highly recommended from a friend with over 20 units. Reasonably priced and a free trial to boot.

Whether you're a professional property manager, condo owner or a member of an HOA, Buildium has a property management solution to meet your needs. Completely online with no software to install, Buildium's property management software features full general ledger accounting, budgeting, secure online payments and access for renters, property owners, board members and more.

A new way to pay off your house

2009-01-02T22:22:00.003-05:00

A good article on MSN about Home Accelerator Loans. You could pay off your 30-year mortgage in less than half the time - legitimately, with out spending more per month. You may have seen the ads for UFirst and such....

Here is an article on this topic.

Free Property Management Software

2008-12-13T16:59:00.001-05:00

Simplify'em Property Management Software

Simple, Easy Setup - Be up and running in seconds!
Save Money Instantly - Get a comprehensive list of overlooked write-offs
Get Rent Collected on Time
Tax Time is a Breeze with One-Click Tax Report & Schedule E!

How to get your renters to refer new tenants - let someone pay them!

2008-12-05T09:43:00.000-05:00

IntroIn lets you search for rentals nationwide; connect with referrals; and share info to earn money.

While IntroIn is mostly meant for potential renters to check out life at a particular complex (what's good, what's bad) - it can be used effectively by landlords and property managers as well. Current tenants who refer new tenants get paid a referral fee.

You can - Post a free listing and connect with renters who are hunting in your area. Become a resource, share your knowledge and offer incentives to attract renters. Get bonuses from your leasing authority/management company.

20 Ways to Add Value to Your Multi-Family Properties

2008-11-23T09:15:00.001-05:00

If you own a multi-family property you know that for every dollar you add to the bottom line you add between $8 and $12 to the value of your property. If you use the 20 tips below to add $5000 to your annual bottom line -- for example -- you just made yourself $50,000 if you decide to sell. You can even use this increased value to obtain a larger line of credit, if you don't want to sell, and use that money for other investments.

20 Value Enhancers

Increase occupancy level
Increase rental rates
Add coin-operated laundry and vending machines
Subdivide extra land
Change the zoning
Change the use
Change the allowed density
Change ownership type (condos, etc.)
Sell ownership interests in the property (like a time share)
Allow billboards or cell towers on the property
Lease your water rights
Sell your air rights
Accepts credit cards for rent and charge a fee
Use collection agency for uncollected rents
Lower property taxes (e.g. if crime goes up, state that value has gone down, and thus taxes should follow)
Lower utility costs: electricity; water reducing devices
Renegotiate maintenance contracts
Lower repair costs
Lower tenants turnover rates; every time a tenant leaves, find out why
Refinance the mortgage to get a better rate

14 Markets With Nowhere to Go but Up

2008-07-08T14:30:00.000-04:00

Daily Real Estate News | July 3, 2008

PMI Mortgage Insurance Co., has ranked the nation’s 50 largest metropolitan statistical areas according to the risk that home prices will decline further during the next two years.

The highest risk is in areas where home price growth was the greatest during the housing boom. The lowest risk of prices declining further is in areas where affordability has increased.

PMI identifies these areas as having a less than 1 percent risk of home prices declining further (read the whole list of metro areas ranked on the risk index):

* Milwaukee-Waukesha-West Allis, Wis.
* Cleveland-Elyria-Mentor, Ohio
* Austin-Round Rock, Texas
* Denver-Aurora, Colo.
* Charlotte-Gastonia-Concord, N.C.-S.C.
* Kansas City,Mo.-Kan.
* Columbus, Ohio
* Cincinnati-Middletown, Ohio-Ky.-Ind.
* Indianapolis-Carmel, Ind.
* San Antonio, Texas
* Houston-Sugar Land-Baytown, Texas
* Pittsburgh, Pa.
* Dallas-Plano-Irving, Texas
* Fort Worth-Arlington, Texas

Source: PMI Mortgage Insurance Co. (07/01/2008)

Find a Lawyer - (Almost) Anywhere

2008-06-22T09:38:00.000-04:00

Avvo lets you search for attorneys anywhere in the US (there are some states that are not yet covered) by practice area. These attorneys are rated by users. There are also online legal guides that can be useful, as well as a forum to get free legal advice.

ULTIMATE Online Resource Guide to Real Estate Investing

2008-06-20T21:33:00.000-04:00

I have added my latest resource for investors at all levels. Click on the Paypal widget in the left column if you are interested.

Now is the best time in decades to invest in real estate --There are always several emerging markets in the USA at any given time - yes even right now!

This guide contains over 250 active links of the absolute best real estate investing resources to be found online. Most of them are free.

This is not some Google search and create a lame list
These are all links that I have painstakingly bookmarked over the past 18 months of investing in real estate.

I use these sites each month! I purchase property in several markets throughout the USA and have used these sites and services to invest remotely and locally.

Here is a peek at some of the stuff included in this resource:

# Over 50 links to locate the best deal for pennies on the dollar
# Bank-owned and Foreclosure listings for all areas of the USA
# Government auctions for homes (multiple agencies)
# Find the best financing for any investment property
# Find all lenders and their financing criteria; access the same information that mortgage brokers have (They're gonna be mad at me!)
# Where to find loans specifically for renovating and flipping houses -- even if your credit is bad
# How to find private money and hard money to do as many deals as you want
# Coroporate credit and loans - keep your real estate loans off your personal credit report
# Title and Appraisal companies on the internet
# Get the real value of any investment home via the internet
# Access to MLS systems from various places around the country
# Direct Mailing services - outsource your whole marketing operation to find motivated sellers
# Where to find the best local contractors
# Price any renovation job online using detailed calculators and reference guides
# Get quotes for all rehab work - get the best price
# Look up municipal codes for any area
# Find a great home inspector that provides detailed electronic reports and photos
# Wholesale suppliers for building materials, appliances, cabinets, and furnishings, etc.
# Reference data and intelligence reports on finding the next emerging markets to invest
# Where to find the best brokers/agents
# Crime statistics for all cities and neighborhoods in the USA
# The best landlord information and reference sites
# Online property management software for free
# Online lease and management forms
# Find out how to determine what a property will rent for in any area
# Screening services and credit check services
# Where to find the best property managers anywhere in the country
# Services to collect rent, both current, and past due
# The best sites to sell your property
# How to sell (exchange) your property without paying any taxes
# Build free virtual tours of your houses
# Create professional marketing materials and automatically distribute them online for free
# Over 40 of the best general education and reference sites for real estate investors

All of this for just $9.99! - This would take you months of research to get all this!

Whatever You Do...Don't Buy in an LLC

2008-05-10T21:55:00.001-04:00

Buying my most recent property in Spartanburg, SC has become a royal pain. Besides the fact that my property manager quit the business on the same day I closed (and thus had to scramble for a new one), and besides the contractor I hired wasn't all he was touted to be (I should have expected that one) - there was one thing that still plagues me to this day, 6 months later...

I purchased this property in my LLC. In the current mortgage climate - there is no bank I have found that will fund this. I had several mortgage brokers looking for a loan but there were no takers - most of the banks that used to do this have gone out of business.

I quickly re-titled (using a quit claim) into my personal name but since the transaction was under a year old the banks were looking at the HUD-1 and seeing the purchase in the LLC name.

After finally finding one bank who was willing to do the transaction for a lesser LTV, I found out they are closing there doors on June 15th. So now I still have no loan and I am exposed since I have a renter in the house titled under my own name.

To make matters worse - in the ensuing 6 months the area homes have lost some value so my appraisal has now been reduced by $20k!

I am calling some local banks to see if they will hopefully help rememdy the problem. I also found out that if I had used a trust and made me the beneficiary, that would have been an easier situation in which to get a loan.

Sponsor: Full Color Business Cards from PsPrint

Brian Tracy is the Man!

2008-04-16T19:45:00.000-04:00

Brian Tracy is a leading authority on personal and business success. He is the best-selling author of 16 books and over 300 audio and video learning programs. Brian addresses more than 250,000 people each year, has spoken in 23 countries, and speaks 4 languages.

Brian gives away a lot of free stuff at his site that will help in your business and personal success. I have used some of his products in my real estate business recently and found him to be the real deal. If you go there now you can get your choice of 14 different FREE audio programs!

For REINEWBIE readers, here is a Gift Certificate

3 Places for Half-Priced Homes

2008-04-13T21:09:00.000-04:00

Finding a bank REO or a good foreclosure deal in an inflated market can lead you to a property you could get for 50 cents on the dollar.

If you are looking for some foreclosure bargains (and there are so many now), most people start at www.RealtyTrac.com
. This has been generally a good site for me, but everyone and their brother is using this site.

Here is the next place I go to find recent Foreclosure Deals
.

Next take a look at RealtyStore for 1/2-price homes and Homes as low as $10k!
.

Low Cost Contracts and Legal Forms for Investing

2008-04-10T11:22:00.000-04:00

Are you thinking about becoming a landlord? Are you leasing residential or commercial property? Are you buying or selling a home? Do you wonder what you need to put a property under contract in your state? How about setting up an LLC to protect your assets? Having the right form is crucial --

Here are a few places to get low cost real estate investing legal forms.

I have been a fan of Socrates.com
for a while. Socrates products include a wealth of legal and business forms, kits, books, guides and software for every personal, real estate and business need. These forms are prepared using state-specific requirements.

Another site that offers Attorney-Prepared Legal Forms At More Than 50% Off Attorney Prices can be found at FindLegalForms - including Legal forms for your limited liability company.

How to Showcase Your House for Sale

2008-04-07T11:04:00.000-04:00

I am always looking for more ways to list a property for sale - especially in this market. I posted 50 ways in a previous post to rent your home and I will post a similar one for selling a home soon. In the meantime - Here is something that was recommended to me: Showcase your Property to millions of home buyers with Homescape today!

Homescape provides an easy way to sell a property online. You can showcase it to millions of home buyers each month.

There are over 2 million listings in their National Home Search. They have relationships with over 150 newspapers across the country, allowing us to provide you with the best local real estate content and exposure.

Logos and Business Cards - Do They Matter?

2008-04-04T10:55:00.000-04:00

Yes. Not as much as taking action: getting out there and marketing, talking to homeowners, making offers, and closing on deals - but it does matter. You need to instill confidence that you can perform.

I tried creating my own logo and while it wasn't bad for an amateur, it was noticeably...amateurish. The homeowners you deal with need to have confidence that you are not a fly-by-night company. If you get pricing from the better logo design companies you will see that the going rate is about $250-$300. If you want a professional design for a great price ($149) then check out the Logo Company
(can you guess what they specialize in?) Wired magazine voted The Logo Company "Best In Test" for online logo design companies.

Once you get your logo you can have them printed on your business card for a few bucks by going here: 30% to 60% OFF All Products

Is it possible to talk to a lawyer for free?

2008-04-02T10:46:00.000-04:00

I have been asked by an investor friend to let everyone know about a service he used to help him with a legal issue he had related to one of his properties: LegalMatch
.
You can use this service for free (just Sign-up
and present your case).

LegalMatch's free online legal matching works in a 3-step process, which is easy to complete, highly effective and protects your privacy. The absolute latest in technology enables you to confidentially find the right lawyer for you.

They'll also advise you on next steps for your case. They have many lawyers who specialize in all forms of law, including Real Estate.

Finding a Real Estate Attorney

2008-03-31T08:00:00.001-04:00

Finding a good real estate attorney can actually be hard work. Yes you can't swing a dead cat without hitting an attorney that will do a residential closing, but you will need something better than that as an investor.

Here are some questions you should ask the prospective attorney:

- What percentage of your business is real estate related?
- How long have you been in business?
- How many investment properties do you own/manage?
- Can you assist me in closing properties using other methods such as lease/options, seller financing, land trusts, and subject-to?

As always the best way to find someone is via referrals and/or the local REIA group. If you invest in other areas (non-local) here is a site I used that (so far) has produced a pre-screened list of decent attorneys - LegalMatch.
.

Remember, you still have to ask the right questions:

How much is that House Worth? Get an appraisal online.

2008-03-29T13:23:00.001-04:00

If you are not a real estate agent, getting good comp data is difficult unless you have a good relationship with someone (i.e. my sister is a Realtor). Yes, Zillow and CyberHomes provide good AVS (Automated Valuation Systems) data in a pinch for finding potentially good deals, but when you want to make an offer and it comes down to Brass Tacks (is that still a saying?) - then there are a couple of good services to get electronic appraisals. I have used several in the past, my favorite was FirstAMRES but they have been changing their pricing and it is less affordable than it used to be - although still worth it (this is not a time to save pennies when you could earn thousands of dollars).

A new service that has caught my eye is
Electronic Appraiser On-Line Home Valuations. This service lets you get almost instant house values online which I believe to be more accurate than when I just use Zillow. Try running a few investment properties that you own through this and see if you get the same results.

50 Ways to Rent Your Property Fast

2007-12-09T10:34:00.000-05:00

If you want to rent out a place (or if you are looking for a place to live) I have compiled a list of about 50 websites where you can post an ad for your property. Some cost money - most are free.

First of all if you are considering renting to HUD Section 8 there are two great sites:
http://socialserve.com/
http://gosection8.com/

Also, the following sites don't list ads on their site, but will create nice looking ads for you and automatically post them to many of the sites listed below. The first two are free - the second has a small fee.

http://www.vflyer.com
http://www.postlets.com/home.php
http://www.rentmarketer.com

Also I want to mention that many people are having success with Facebook and MySpace for selling and renting their properties -- it's not just for kids anymore!

Here is the list of sites in no particular order:
http://www.rentquest.com/
http://www.rentalhouses.com/help/general_help.php
http://www.freerentalclassifieds.net/home.asp
http://www.rentalads.com/
http://www.renthousepro.com/
http://tenant.com/
http://www.oodle.com/
http://hotpads.com/main.htm
http://www.edgeio.com/housing
http://base.google.com
https://www.rent.com/manage/
http://realestate.yahoo.com/Rent_your_apartment
http://www.rentalhomesplus.com/
http://craigslist.org/
http://www.rentspeed.com/
http://www.findhomerentals.com
http://www.livedeal.com
http://www.thisproperty.com/
http://www.rentalsource.com/
http://www.backpage.com/classifieds/index
http://www.rentfinders.net/
http://geebo.com/
http://www.findmyroof.com/
http://www.olx.com/
http://www.simplerent.net/
http://www.rentdigs.com
http://www.rentspider.com/
http://tenantplus.com/
http://www.urents.com/
http://www.nationalmultilist.com/
http://www.usrentallistings.com/
http://www.rentvine.com/
http://expo.live.com/
http://www.adpost.com/us/homes_offices/
http://www.sublet.com/Index.asp
http://resource.move.com/RENTNET/resourceCenter.aspx

Post comments on your success with these sites or if you have used others that have worked for you.

The 167 lenders who have gone out of business due to mortgage crisis

2007-10-26T21:06:00.000-04:00

The 167 "Imploded" Lenders List (there might be more by now!)

167. Summit Mortgage Company
166. WMC
165. Paragon Home Lending
164. First Mariner Wholesale
163. The Lending Connection
162. Foxtons, Inc.
161. SCME Mortage Bankers (Wholesale)
160. Apex Mortgage (Aapex Mortgage)
159. Wells Fargo (various Correspondent and Non-prime divisions)
158. Nationstar Mortgage
157. Decision One (HSBC)
156. Impac Lending Group (Wholesale)
155. E-Trade Wholesale Lending
154. Long Beach (WaMu Warehouse/Correspondent)
153. Expanded Mortgage Credit Wholesale
152. The Mortgage Store Financial
151. C & G Financial
150. CFIC Home Mortgage
149. BrokerSource (BSM Financial - Wholesale)
148. All Fund Mortgage
147. LownHome Financial
146. Sea Breeze Financial Services
145. Castle Point Mortgage
144. Premium Funding Corp
143. Group One Lending
142. Allstate Home Loans / Allstate Funding
141. Home Loan Specialists (HLS)
140. Transnational Finance Wholesale
139. CIT Home Lending
138. Capital Six Funding
137. Mortgage Investors Group (MIG) - Wholesale
136. Amstar Mortgage Corp
135. Quality Home Loans
134. BNC Mortgage (Lehman)
133. Accredited Home Lenders, Home Funds Direct
132. First National Bank of Arizona (FNBA) Wholesale, Correspondent
131. Chevy Chase Bank Correspondent
130. GreenPoint Mortgage - Capital One Wholesale
129. NovaStar (Wholesale), Homeview Lending
128. Quick Loan Funding
127. National City Home Equity
126. Calusa Investments
125. Mercantile Mortgage
124. First Magnus
123. First Indiana Wholesale
122. GEM Loans / Pacific American Mortgage (PAMCO)
121. Spectrum Financial Group - Wholesale
120. Kirkwood Financial Corporation
119. Lexington Lending
118. Express Capital Lending
117. Deutsche Bank Correspondent Lending Group (CLG)
116. MLSG
115. Trump Mortgage
114. HomeBanc Mortgage Corporation
113. Mylor Financial
112. Aegis
111. Alternative Financing Corp (AFC) Wholesale
110. Winstar Mortgage
109. American Home Mortgage / American Brokers Conduit
108. Optima Funding
107. Equity Funding Group
106. Sunset Mortgage
105. Fieldstone Mortgage Company
104. Nations Home Lending
103. Entrust Mortgage
102. Alera Financial (Wholesale)
101. Flick Mortgage/Mortgage Simple
100. Alliance Bancorp
99. Choice Capital Funding
98. Premier Mortgage Funding
97. Stone Creek Funding
96. FlexPoint Funding (Wholesale & Retail)
95. Starpointe Mortgage
94. Unlimited Loan Resources (ULR)
93. Freestand Financial
92. Steward Financial
91. Bridge Capital Corporation
90. Altivus Financial
89. ACT Mortgage
88. Alliance Mortgage Banking Corp (AMBC)
87. Concord Mortgage Wholesale
86. Heartwell Mortgage
85. Oak Street Mortgage
84. The Mortgage Warehouse
83. First Street Financial
82. Right-Away Mortgage
81. Heritage Plaza Mortgage
80. Horizon Bank Wholesale Lending Group
79. Lancaster Mortgage Bank (LMB)
78. Bryco (Wholesale)
77. No Red Tape Mortgage
76. The Lending Group (TLG)
75. Pro 30 Funding
74. NetBank Funding, Market Street Mortgage
73. Columbia Home Loans, LLC
72. Mortgage Tree Lending
71. Homeland Capital Group
70. Nation One Mortgage
69. Dana Capital Group
68. Millenium Funding Group
67. MILA
66. Home Equity of America
65. Opteum (Wholesale, Conduit)
64. Innovative Mortgage Capital
63. Home Capital, Inc.
62. Home 123 Mortgage
61. Homefield Financial
60. First Horizon Subprime, Equity Lending
59. Platinum Capital Group (Wholesale)
58. First Source Funding Group (FSFG)
57. Alterna Mortgage
56. Solutions Funding
55. People's Mortgage
54. LowerMyPayment.com
53. Zone Funding
52. First Consolidated (Subprime Wholesale)
51. EquiFirst
50. SouthStar Funding
49. Warehouse USA
48. H&R Block Mortgage
47. Madison Equity Loans
46. HSBC Mortgage Services (correspondent div.)
45. Sunset Direct Lending
44. Kellner Mortgage Investments
43. LoanCity
42. CoreStar Financial Group
41. Ameriquest, ACC Wholesale
40. Investaid Corp.
39. People's Choice Financial Corp.
38. Master Financial
37. Maribella Mortgage
36. FMF Capital LLC
35. New Century Financial Corp.
34. Wachovia Mortgage (Correspondent div.)
33. Ameritrust Mortgage Company (Subprime Wholesale)
32. Trojan Lending (Wholesale)
31. Fremont General Corporation
30. DomesticBank (Wholesale Lending Division)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ResMAE Mortgage Corporation
24. ECC Capital/Encore Credit
23. Lender's Direct Capital Corporation (wholesale division)
22. Concorde Acceptance
21. DeepGreen Financial
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

Interesting Investing News

2007-10-26T19:05:00.000-04:00

Here are some news articles I found interesting...

Foreclosures Overview: From Start to Finish

Website to sell nonexistent real estate

Hawaii real estate — a looong-term investment

Homes for Sale $1

Commercial Real Estate Profits - Why Investors Should Be Looking At Multi-Units

32 Investing-Related Websites

2007-08-12T22:56:00.000-04:00

Enjoy!

http://www.erealinvestor.com/eriweb/index.cfm
http://iggyshouse.com/
http://www.the-landscape-design-site.com/
http://www.biggerpockets.com/forms/Propert...r-Worksheet.pdf
http://www.city-data.com/
http://www.amazingmail.com/index.php
http://www.envelopes.com/
http://adminproperty.com/Default.aspx
http://www.realestatecritic.com/
http://www.tangentsigns.com/
http://www.buildasign.com/
http://www.cleartocloseonline.com/index2.html
http://www.innovativetitleagency.com/
http://www.forsalebyownercenter.com/
http://www.mapwing.com/
http://www.one2onemail.com/default.asp
http://mind2money.com/archives/236
http://www.rentometer.com/
http://www.remodeling.hw.net/content/CvsV/...11765§ionID=173
http://www.homeenvy.com/
http://www.mastermindforum.com/resources/re-entrepreneur.htm
http://www.creonline.com/wwwboard/index.html
http://www.industrialedge.com/index.html
http://www.repairclinic.com/DD-New-Jersey-...iance-parts.htm
http://www.renthousepro.com/
http://www.trulia.com/
http://biggerpockets.com/real-estate-forms.html
http://www.lassitermortgage.com/IRA_Non_Recourse_Loan.html
http://www.realquest.com
http://www.fundandclose.com/index.html
http://www.inspectamerica.com/
http://www.housingwire.com/2007-rebas/avai...s-and-nominees/

Foreclosure Filings Up 87 Percent From June '06

2007-08-12T13:56:00.000-04:00

From RealtyTrac:

"Foreclosure Filings Still Up 87 Percent From June 2006
A total of 164,644 foreclosure filings - default notices, auction sale notices and bank repossessions - were reported in June, down 7 percent from the previous month but still up 87 percent from June 2006. The national foreclosure rate for June was one foreclosure filing for every 704 U.S. households. "Foreclosure activity subsided somewhat in June after hitting a 30-month high in May," said James J. Saccacio, chief executive officer of RealtyTrac. "And the drop in activity was fairly broad, with 33 states reporting month-over-month decreases. Still, the foreclosure rates in most states remained substantially above last year's levels."

agentBoost a New Way to Find Realtors

2007-05-25T10:35:00.000-04:00

agentBoost is kinda like an eBay for House Sellers. You post your house and local agents bid on what they can do for you and how much it will cost you (percentage or flat fee). You are free to interview as many agents as you like.

This is a free service to sellers.

A new way to clean up the junk in the yard

2007-05-04T10:01:00.001-04:00

If you ever find those junkers that have a ton of trash in the yard and you can't get the town to haul it away - here is a great alternative:

1-800-GOTJUNK

Hard Money Lenders - vast and various

2007-04-21T23:36:00.000-04:00

OK, I am sending out postcards like crazy trying to use up all of my pre-purchased stamps before prices go up in mid-May...

Anyway, I have been looking to establish a pre-qualification status at one or more Hard Money Lenders in case I come across a good deal. Most agents won't take an offer without one anyway. Here is what I found:

HML #1: A big industry player, fast turnaround with money, 2-14 days; points relatively low (3-5) and interest between 13-15%. App fee about $495. Fund up to 70% LTV. Drawback: You actually get an approved credit limit (i.e. line) and you must put up 1% of this line annually which does not go toward your deal. So if you want $300K, you must put up $3,000 up front (pre-deal) and that money is a sunk cost.

HML #2: This lender only had a $65 app fee but turnaround time for each deal was around 21 days, and they wanted 3-6 months payments up front, plus 3-5 points; also, funding up to 65% LTV. The amount of money needed upfront with this lender and the turnaround time makes it not very attractive. If I put up a little more dough and wait another week, I can get a traditional loan at much less interest. Also, the amount of paperwork they want per deal is as much as a standard loan. Here was the deal killer - they insist on putting a line on another investment property in addition to the one for your deal. I don't think so!

HML #3: This lender was the easiest to get into ($50 app fee), has a 2 week turnaround time, and has limited paperwork. They fund any and all costs up to 65% LTV (after repair value). This was the most expensive money at 7 points and 15% however. The ymention that after 1 or 2 deals they will lower the points. This was the lender I selected. Now I just have to find a deal.

How do you know a good deal?

2007-03-23T09:16:00.000-04:00

Numbers are like people -- If you torture them long enough they'll tell you anything you want to hear!

Moral of the story: Don't force a deal to work on paper; if you need to sharpen your pencil, it's probably not a deal.

This week's activities

2007-03-20T21:35:00.000-04:00

So far this week I mailed several I Buy Houses postcards to various properties I discovered while driving my neighborhood gridmap. (I printed this on graph paper from Google maps.)

I also received a call from a motivated seller and called her back. This is a Sub2 or short sale lead, and right now I'm not sure I want to tackle that - plus it is pretty far out of my areas where I know the values. I forwarded this lead to another investor - (I am asking $300).

It seems that there is definitely a possible deal in this one.

Motivated Seller Questionnaire

2007-03-19T20:40:00.000-04:00

If you call a seller on the phone, here are some questions to extract their level of motivation and determine if there is a deal in it for you as well:

1) Name and Phone Number
2) Complete Address of Property
3) Are you the owner? (Who else is on title?)
4) How long have you owned the property?
4) What are you asking for the house? How did you arrive at that price?
6) How long have you been trying to sell?
7) Are you listed with a Realtor?
8) Tell me about the house...(shut up and listen)
9) What repairs are needed to put it in top condition?
10) Why are you unloading this property?
--- Financing Questions ---
11) How much is your monthly payment?
12) Does that include taxes/insurance?
13) What are the annual taxes?
14) Is this an adjustable or fixed?
15) Are there any other loans or liens on the property?
16) Are you current on all payments?
17) How much do you think you owe on each mortgage?
18) Do you need top price or a fast sale? (they better say fast sale here!)
19) Would you sell it for what you owe?
If NO then -->
20) If I offered you all cash and a closing in 7 days, what's the least you would take?
(Always respond with 10 seconds of silence and 'Is that the best you can do?')
21) Would you consider owner financing?

Now you should have enough information to determine if they are motivated and what offer options are open to you! Good luck.

Build Your Own Bandit Signs

2007-03-18T15:30:00.000-04:00

Here is a great resource for you REI signs, whether they be bandit signs, For Rent, For Sale, Rent to Own, etc. Build A Sign lets you create or upload a design and then you can have them turned into yard signs, magnetic signs, license plates, and more.

Check out the site for cost info...

EPA Lead Brochure

2007-03-14T23:19:00.001-04:00

Don't forget if you rent to someone, you must give them this lead pamphlet:

epa.gov/lead/pubs/leadpdfe.pdf

10 Ways to Build a Buyer's List

2007-03-10T13:13:00.000-05:00

Here is how I am going about building my buyer's list for wholesaling. My goal is to get to 100.

First the obvious stuff:
1) Word of Mouth - my mouth, that is, I tell people about the property and ask if they know anyone interested in wholelsale property and give them my card
2) Property Brochure - leave brochures at the property in question just like a retail listing

Now do networking and calling:
3) If you already have a small buyer's list - ask current buyers for referrals of other buyers if they aren't interested - pay them a fee if deal closes
4) Ask Realtors if they have any cash buyers for discount properties
5) Use local REIA group both online forum and at meeting networking
6) Call every We Buy Houses sign you can find
7) Call every We Buy Houses ad in the local papers

Now do online/internet stuff:
8) Put an ad on craigslist looking for cash buyers
9) Put an ad in the local paper (also goes to online classifieds)
10) Also, check out RehabList.com

So far my list is 22.

Checking for Stolen Identities

2007-03-01T12:21:00.000-05:00

The site StolenID Search allows you to enter a Social Security number or Credit Card number to see if it has been compromised. This can come in handy for the 'professional tenants' who pretend to be someone else (because they have bad credit, or just dont plan on paying you anyway).

Note that this information is only good for that which is stolen via computer-related scams (e.g. phising, etc.) It does not include stolen identity information from the guy who digs through the restaurant dumpster looking for credit card receipts; unless, that is, he posts that info to the internet in where these type of scammers hang out.

Wholesaling "Guru" Courses

2007-02-16T12:07:00.000-05:00

I recently purchased the new Wholesaling course by Steve Cook for $197. After I receive it I will review it for you all here.

Also, I got a copy of Wholesaling 101 by Vena Jones-Cox as well since I will mostly be focusing on this strategy this year (with hopefully one rehab and one long-term purchase). Vena always has quality stuff so I considered the risk minimal.

I was happy with the product in that it addressed most of the information and questions I had on the topic. I was surprised to realize that I knew 90% of the information -- which just tells me that I have been ready for action and 'procrastinating' by learning too much instead of doing. I really liked the real-life deals she used as examples, the forms, and mostly the phone script excerpts on what to say to certain seller questions...mostly because those are the things that happen to me! I photocopied those few pages and keep it by the phone.

If I had to add one thing more I would have liked to see would be more on how to work with Realtors. Many of the Realtors I have talked to, obvisouly don't want you to re-sell their deals (via assignment); double-cosing is just too expensive in NJ (due to transfer tax) even if you could find someone to do it... I assume that using an LLC or trust here would help avoid the issue, but it would be nice to hear how she does it.

Overall rating: Very Good - Recommend.

[Now I just need to get my butt out there!!]

Activities this week

2007-02-09T00:00:00.000-05:00

Here is what I did so far this week:

1) Changed my outgoing message for my toll-free number; it was too cheesy sounding
2) Sent postcards to 9 ugly houses I want to buy
3) Fixed some problems with the form on my website since many callers said they submitted a form but I didn't receive it.
4) Identified all the non-owner occupied properties in the condo complex where I own a property (I used the online tax records and a computer script that I wrote.)

Vacation Property Rental Software

2007-02-05T10:45:00.000-05:00

Rental Network Software
is a Windows-based program for those of you who are big time into vacation rentals and can't manage it via a spreadsheet and napkin anymore. I found it interesting, and ther eis an online free demo.

Design Your Room on the Web

2007-02-02T13:03:00.000-05:00

MyDesignIn site is billed as: "A social planning and design site that simplifies any remodeling project."

The thing I like about it is you can put your actual floorplan in, and then drag and drop items you find online like furniture, appliances, rugs, and then you can see how they will look in your room.

Goals for 2007

2006-12-28T11:24:00.000-05:00

It is time to make my high-level goals for the upcoming year. I will make detailed specific goals in a later post.

First I want to focus on some of my weaknesses and strategic goals:
* Networking
-- Add at least two new contacts each week (categories include: money people, contractor, realtor, insurance/appraiser, investor)
-- Build wholesale buyers list (get buyer criteria)
-- Focus more on networking at REIA meetings

* Marketing
-- Continue direct mail, website, and flyer campaigns
-- Focus on absentee landlords, evictions, vacant houses, junkers, some foreclosures

* Mentoring/Education
-- Absolutely must get a mentor this year regarding analyzing deals, making offers, completing the deal
-- Identify traits I desire in a mentor; approach several REIA members I would consider "mentor material" (what can I offer them?)
-- Attend at least one relevant bootcamp or multi-day training course
-- Books

Now for some money and property-related goals:

* Properties
-- Find at least one buy & hold property (and buy it and rent it out)
-- Wholesale at least 4 deals, or a minimum of $35K in fees; use this for buying rental property
-- Identify one good property to renovate and flip to retail or L/O buyer

What are your goals for 2007? You should write some down now. It is OK to change them later if you need to, but spending some time on this list today will help you focus in the next several months...

This post is an entry in the BiggerPockets Goals 2007 Writing Contest

Secrets of the Millionaire Mind

2006-11-28T20:39:00.000-05:00

I am puttin gthese here to remind myself of these Wealth File Rules from T Harv Eker's book:

Rich people believe "I create my life."
Rich people play the money game to win.
Rich people are committed to being rich.
Rich people think big.
Rich people focus on opportunities - not obstacles.
Rich people admire other rich and successful people.
Rich people associate with positive, successful people.
Rich people promote themselves and their value.
Rich people are bigger than their problems.
Rich people are excellent receivers.
Rich people choose to get paid based on results, not on time.
Rich people think "both" - not "either/or".
Rich people focus on their net worth, not their income.
Rich people manage their money well.
Rich people have their money work hard for them.
Rich people act in spite of fear.
Rich people constantly learn and grow.

"If you are willing to only do what is easy, life will be hard.
But if you are willing to do what's hard, life will be easy." - T. Harv. Eker

Where to Invest Now (and Where Not)

2006-11-28T14:15:00.000-05:00

HousingWatch

Lists the lowest-5 median markets (using MLS data from metro areas) as:
region median asking price change
Pittsburgh, PA $119,900 -2600 (2.12%)
Indianapolis,IN $139,900 0
Dallas, TX $150,990 -3010 (1.95%)
Louisville, KY $155,000 +50 (0.03%)
Cincinnati, OH $157,900 -2000 (1.25%)

Here are the biggest negative changes in the past 6 months:
region median asking price change %
New Orleans, LA $215,000 -20000 -8.51%
Detroit, MI $119,900 -10100 -7.77%
Sacramento, CA $365,000 -30000 -7.59%
Cleveland, OH $147,900 -12000 -7.50%
SantaBarbara,CA $829,000 -66000 -7.37%

Here are the biggest positive changes in the past 6 months:
Boise, ID $284,900 1550 0.55%
SaltLakeCity,UT $279,900 4900 1.78%
Atlanta, GA $204,900 4900 2.45%
Nashville, TN $218,000 13000 6.34%
Raleigh, NC $229,900 20000 9.53%

What I've Been Doing...

2006-11-07T16:23:00.000-05:00

Trying to get over my trepidation with talking to sellers. I called this one person several times and each time he was not able to talk. Doesn't sound motivated...

I am going to call another person (probably an investor) today to discuss his multiple properties for sale. Maybe I can wholesale them.

Top 10 Foreclosure Markets

2006-10-26T15:31:00.000-04:00

CNN has a list of Top-10 Foreclosure Markets in their money section. Hint: FL, CO, and TX are prominent.

PS - No bites on my newspaper ad or craigslist ads.

Put Ad in Local Paper

2006-10-19T17:09:00.000-04:00

I put an ad for 'ugly houses' in the local community paper.
It only comes out every other week, and I placed a 2x ad for about $8. We'll see if it generates any calls.

The Strangest Secret

2006-10-06T10:06:00.000-04:00

I listened to Earl Nightingale's recording from 1951 a few years back. I remember it being profound at the time, and was miffed that I couldn't even remember what the strangest secret actually was - so I listened to it again and am writing it here so I will remember for next time. I also recommend that you get this recording from Nightingale-Conant.

The Strangest Secret:
"You become what you think about the most."

I believe that if you consider this - you will realize that it is true.
So what are you thinking about these days?

Here's something I thought I'd never do

2006-09-28T14:26:00.000-04:00

I stopped in on an open house last weekend. It was a 1950's house that needed complete updating -- everything was original. It would be a pretty big rehab job. I never even thought about rehabbing a house, but after watching so many seemingly incompetent people on 'Flip That House' on TLC make money, I've been wondering if it is something I should look at.

This person is very motivated (it is an estate sale) and I should be able to do the 70%*ARV-repairs price. I also talked to a General Contractor from the local investor REIA group, and I think it would work out where I could do this without putting in all of my own time.

Now - where to get the money...

Sent out Direct Mail

2006-09-28T13:43:00.000-04:00

I sent out personal letters to about 25 choice (i.e. high equity, good location) property owners in default using RealtyTrac as my source. We'll see how long it takes to get any replies. I realize that this is a small number - but they are fairly well targeted and personalized.

Quote of the Week

2006-09-13T09:30:00.000-04:00

We should be taught not to wait for inspiration to start a thing. Action always generates inspiration. Inspiration seldom generates action.
- Frank Tibolt

Do You Have Enough Fire Insurance? Most Don't...

2006-09-11T14:01:00.000-04:00

I found that the replacement cost insurance I had on my condo is way out of whack now that the market has had a big run-up in the past few years, and also because bulding materials have sky-rocketed recently.

How much should you really have, without overpaying? Get an accurate assessment of how much insurance your home or properties should have with AccuCoverage.

Open House Checklist

2006-09-07T11:48:00.000-04:00

Here are the pre-showing items to check for your open house (or even prior to showing a prospective tenant):

- Vacuum all floors
- Wipedown countertops
- Clean all metal fixtures
- Dust
- Windex glass and mirrors
- Clean toilets
- Use shoe booties if necessary (keep by front door)
- Pick up trash on or near property
- Sweep exterior walks and driveway
- Water plants
- Check all lightbulbs

Also make sure there is a new air filter and that all appliances work.

Marketing Ideas

2006-09-01T11:37:00.000-04:00

Here are some thoughts on marketing your properties by Frank McKinney from his "Maverick Real Estate" book:

* Brochures
- Create informative brochure with color photos
- Put in grocery stores, laundramats, and in rental communities
- Use in Direct Mail campaigns as well

* Signs
- Get custom signs (metal) made with phone and web info
- Put an info box with brochures on the sign.

* Web site
- Have many photos and if possible a virtual tour

* Newspaper Ads
- Make your ad standout; don't use the same old copy as everyone else

* Open Houses
- Attend open houses similar to yours to learn what sells
- Hold open houses every weekend if possible until the house sells
- Hold a Brokers-Only open house (usually a weekday)
- Make your hours earlier and/or later than others
- Use 'guiding signs' to get people to the open house
- Dress nicely
- Appeal to all 5 senses (sound, smell, sight, touch, taste)
- Sell buyers on the neighborhood

* Use a Realtor

Where to Advertise Your House for FREE

2006-08-21T10:33:00.000-04:00

OK - You've rehabbed it, or are tired of managing it, or just need to sell your property now! You have decided to go the FSBO route...

Where are the best places to advertise? The 4 best places IMHO are not free but are relatively cheap (compared to newspaper and MLS) and they are

eBay Real Estate($150 gets you 30 days)
craigslist (about $10)
owners.com ($29.95 until sold)
Yahoo Real Estate ($35 - $55 for 30 days)

but here are some Free Ad listing sites. Some are Real Estate specific, others are multi-category:

AdPost.com
Domesticsale.com
Emongoo.com
Forsalebyownercenter.com
getitsellit.com
Geebo.com
Google Base
Hoobly
ListSomething
LiveDeal.com
local2local.org
PlugStar
sellstufflocal.com
TribeNet (any location available)
WellcomeMat

Good luck! let me know whic of these works for you. Maybe we can narrow down the list to the top 5 or 10.

Find a Good Realtor - Online

2006-08-18T10:05:00.000-04:00

Word of (electronic) mouth is always a good method to find a service professional. Realtors rely on it for their business. Here are two sites that post comments (positive and negative) about Realtors by their clients. You can use it to find one in your neighborhood.

HomeThinking at http://www.homethinking.com/
or
BrokerRate at http://brokerate.com/

BrokerRate is for New York City only - but I love the interface. I hope it gets adopted for use in NJ and elsewhere.

Home Staging for Maximum Resale Value

2006-08-17T10:10:00.000-04:00

Just finished a rehab? Decided to sell that rental property? Want to sell your home quickly? Do like they do on HGTV and TLC - Stage your home for that stylish lived in look.

The average resale price of a staged home is almost 7% higher than a non-staged home. A good article from Sellsius Real Estate shows typical costs, the increase in resale value, and why staging is important.

Here are 2 good reasons:
* Faster resale (time is money)
* Higher resale value (money is money)

Need to find a Home Stager? Make sure you use an Accredited Staging Professional (ASP) - just Look HERE

Pros & Cons: Online Comps

2006-08-16T09:58:00.000-04:00

Article from Real Estate Journal:
Pros and Cons of Calculating House Values Online.

Advertise to Real Estate Investors

2006-08-04T09:39:00.000-04:00

If you've seen the concept behind the 500words.com site then you know what a Link Tag Cloud is for advertising. Well, here is a pretty affordable one that is directed specifically at the Real Estate Investing industry. So if you sell services or products, or buy/selll properties you may want to take a look at it. I have already received some hits from this website.

REILinkWords.com

Kathy Kennebrook writes about Word Cloud Marketing in her blog.

Free Real Estate Forms

2006-07-20T14:13:00.000-04:00

Free Real Estate Forms (including Leases, etc.) from ILRG.

Protect yourself when showing a property

2006-07-08T21:50:00.000-04:00

If you need to show a property to lease or sell take the hints
- Get prospect's full name and phone number when you schedule appointment
- Google the name and phone number to see if they match or if there is other important info about the person
- Carry pepper spray
- Carry a cell phone
- Have someone wait in the car while you show the property (or accompany you)
- Prospects show photo ID before entering; make sure it matches the name given on the phone.

Risk & Grow Rich with The Apprentice

2006-07-05T11:20:00.000-04:00

Notes on Kendra Todd's Book
Risk & Grow Rich : How to Make Millions in Real Estate

3 Ates that Make Risk Work:
Calculate
Initiate
Mitigate

10 Steps for Turning Risk into Opportunity include:
- Persistence
- Mentoring
- Take Action
- Positive Thinking
- Learn from Mistakes

Formula for Making First Million
This outlines essentially an equity pyramid. Most people consider this risky except in an advancing market; her point here is that you do your research to find the places that are appreciating and then there is less risk and you can keep it up indefinitely. Unfortunately, there are few details on research statistics to look at for any given area.

In general this is a good book from the standpoint of opening your mind to possibilities and reinforcing the concept that without (educated) risk, there is no reward. I don't personally agree with the millionaire formula she outlines -- not my cup of tea (rather, see John Schaub's Building Wealth One House at a Time : Making it Big on Little Deals).

Worth the read though.

My Dealmaker Toolbox

2006-06-14T19:16:00.000-04:00

I am going to try and keep a running list here of stuff I need to bring when I go to look at a property for the first time. It will need to include inspection stuff as well as forms to sign up the deal (think positive!)

Tools:
- Flashlight
- Notebook and Pen
- Camera!
- Calculator
- Voice Recorder

Forms:
- Inspection Checklist
- Purchase Contract
- Purchase Option
- Subject To CYA Form
- Credit Authorization Form
- plus, Property Specific Info (tax records, comps, etc.)

I'll add stuff here as I think of it...so check back.

Free Home Inventory Software

2006-06-12T10:36:00.000-04:00

I found this at the Insurance Information Institute

Know Your Stuff Free Home Invetory Software can help you track your insurable items and properties.

Short Sales for VA and FHA Loans

2006-06-09T23:46:00.000-04:00

FHA pre-foreclosure sale info is obtained either by calling 888-297-8685, or going to www.hudclips.org/sub_nonhud/html/pdfforms/00-05.doc

Dept. of Veteran's Affairs (VA) compromise sales are at www.vba-roanoke.com/rlc/forms/Compromise%20Sale%20Program.pdf

Housing Maps with Prices

2006-06-06T12:29:00.000-04:00

Here is a cool site I found: HousingMaps.com

It mashes Google Maps with major cities houses for sale and rent. You can see what is listed and zoom right in. Not bad for doing surveys, etc.

Wholesaling Assignment Tips

2006-06-05T09:53:00.000-04:00

When wholesaling a deal via assignment, here a few tips:

* Must be a cash buyer! (have them show proof of funds)

* Assignment fee is paid prior to closing (or can be escrowed in advance)

* Use corporation (S, C, or LLC) as the assignee if possible - for tax purposes

* Two critical clauses in your contract with the seller should be:

[1] Liquidated Damages (whatever you gave upfront is full damages if you back out);
[2] Inspection or partner approval clause (use one, but not both).

Subject To - Clauses and Objections

2006-05-30T09:30:00.000-04:00

Subject-To Contract Clause:

Since you probably won't get to examine the note prior to closing, make sure it says what the seller tells you...

"Price shall be $____________ payable as follows: buyer to take over payments on seller's first mortgage loan to _(lender)_ with a total balance not to exceed $____________ at (fixed/adjustable) interest rate not to exceed ____% with ___ payments remaining."

Also, if you can get the seller to obtain an estoppel letter from the lender ahead of time, that will be beneficial. If at the closing or during a title check you find undisclosed loans (liens, 2nd mortgages) - the seller should either pay them off at the closing, or you can walk.

If the seller objects to that you might not make payments and the loan will go into default (a valid concern) you can do two things:

1) Use a servicing company that will collect and distribute money to lender(s).

2) After sale, create a quit claim deed giving the property back to seller, and have that escrowed with directions to distribute it to the seller if you fail to pay after 30 days. Of course, you will want some period of time (say 10 days) to allow you to 'make good' and/or prove the payments were made. {Note: this requires some help from an attorney; there are implications regarding foreclosure law and other laws when escrowing a deed (at least in NJ).}

Getting Your Direct Mail Opened

2006-05-27T09:18:00.000-04:00

Here are some tips I got from Kathy Kennebrook's class:

Using direct mail requires that you get three difficult things to occur:

1) Get the person to OPEN the letter
2) Get the person to READ the letter
3) Get the person to CALL and/or take action

Here are some tips to get prospects to open your letters, versus toss them as junk mail. The general idea is to make it look like a personal letter.

Use white #10 envelopes
Hand address (no labels, no windows!) in neat, legible writing
Use return address, but NO name (gets their curiosity)
Please spell their name and address correctly!
Use first class stamps (no bulk mail)
Optional: If you can stick in something slightly bulky, that typically gets them to open it. An example is a flat pen.

Getting the person to read and take action pertains more to the message conveyed in the letter. However, if you can't get the first thing to happen (opening it) then the message doesn't matter.

HTH

Mold

2006-05-26T15:52:00.000-04:00

The EPA has an online document entitled: "A Brief Guide to Mold, Moisture, and Your Home" that has good info on mold remediation and other topics.

The Dishwasher Exploded

2006-05-25T15:55:00.000-04:00

That's the call a fire department received last winter from a base-housing inspector. The inspector had been doing normal bimonthly checks of vacant units when this happened.

The inspector's usual procedure was to run the cold water in the kitchen sink, turn on the dishwasher, go upstairs to flush the commode, and run the water in the bathroom. About three minutes after she started the dishwasher, it exploded. The blast propelled the dishwasher (which was installed under the kitchen counter) across the kitchen. The cabinets, plumbing and walls were damaged.

The concussion splintered the face of the rear door to the housing unit and blew it open, destroying the lock. Pieces of the dishwasher and cabinets were scattered over 20 feet. The access panel to the attic on the second floor was dislodged, and the front door was blown open and damaged.

Read the rest at the elcosh website.

What This Means to You

When you move into a house or apartment that has been vacant, hydrogen gas may have built up in hot water lines, which could cause an explosion. The same is true when you return home from a vacation or open up a vacation home that has been shut. When you go to start the dishwasher, ask yourself how long the unit has been vacant. If it's more than a couple of weeks, you need to think about getting rid of the gas before you turn on the dishwasher. If you suspect hydrogen gas may have built up in the hot-water system, flush it by turning on all hot-water faucets in the building and letting them run for several minutes. And don't smoke while you're doing it.

Buying Real Estate with Your IRA

2006-05-25T12:59:00.000-04:00

Did you know the US Government allows you to invest in real estate using your IRA? Yup. You just need to open a self-directed IRA and transfer your IRA money into the new account. Of course, there are some rules and best practices, and in this regard I highly recommend the book below: IRA Wealth by Patrick Rice -- (I read it twice!)

Click Here!

Things Are Heating Up!

2006-05-24T12:52:00.000-04:00

I'm not sure what's going on but after three months of not one entry on my website - this week I already have three, plus a phone call. I guess the selling season is kicking in.

Out of the three folks who entered information, one looks like a great deal, one looks marginal, and another is no good. I will let you know how it works out.

I am finding that the only drawback to having a website directed at the whole state of NJ, is that there are many areas for which I do not go to often and don't have a lot of insight into -- I need to either get a Realtor friend in south Jersey, or get a good list of investors to farm some of these leads out to (for a fee of course).

Confusion = No Deal

2006-05-24T09:30:00.000-04:00

Remember - our natural tendency is to avoid anything we don't understand. This is generally a good thing, so it is your job to make sure that the seller is not confused about what you are offering. Confusion on your seller's part means No Deal.

Avoid confusion as follows:
- If you tend to talk fast; slow down!
- Don't use jargon (ARV, Subject-To, Lease Option, etc.)
- Answer all questions until they understand
- If they ask the same question, try answering in a different way so they 'get it'
- Don't try and hide anything from the seller; be upfront, and let them know what you are attempting to do

How to Close Using a Land Trust

2006-05-23T10:14:00.000-04:00

Using land trusts are a great way to flip or assign property in cases where you cannot assign a contract (e.g., REOs). It also avoids double closings, and thus, double fees.

Step:
(1) Sign offers as "John Smith, trustee" (use your real name obviously)
(2) When buyer is found, fill out trust agreement with him as beneficiary and collect your assignment fee
(3) Create a Memorandum of Trust (used to file trust at Clerk's office)
(4) Closing: sign all documents same as above (buyer brings the money to escrow)
(5) After closing: Resign as trustee (one-page document)
(6) Buyer can designate his own trustee later (another one-page document)
* Note documents in steps 5 and 6 are not recorded anyway; just between you and him.
(7) Optional: Use a quit claim deed to take your trustee name off of the title.

Kathy Kennebrook - Finding Motivated Sellers

2006-05-23T08:58:00.000-04:00

The first national speaker who presented at the Foreclosure Summit was:
Kathy Kennebrook, The Marketing Magic Lady.

She discussed formulating a marketing strategy to locate prospects, and pre-screen them in order to construct offers. The 2 different market strategies discussed were shotgun (e.g. using bandit signs), and rifle (e.g., targeted direct mail). She focused on the latter, since that is her specialty.

Here are some general hints and tips she mentioned:
* Follow-up is critical; very few prospects will call after only one mailing
* The Spanish language market is hot - put a translation of your markeitng materials on the opposite side of all direct mail flyers, and hire interpreters by the hour (or hire someone bi-lingual) when a prospect calls.
* Give prospects multiple ways to contact you (email, phone, US mail, etc.)
* Use a checklist or script when speaking to prospects to ensure that you get all the info you need the first time (i.e., it doesn't look good to keep calling them back because you forgot to ask something)

Here is a list of some potentially good direct mail campaigns:
* Out of state owners
* Burnt out landlords
* Military transfers
* Probates
* Pre-foreclosures
* Vacant properties
* New luxury home owners

Overall, she was a very good presenter, and if you want to ramp up your marketing via direct mail - I am sure that this is an excellent program. She provided a lot of valuable info (only some listed here) - but spent a little too much time (25 mintues) trying to sell her packages.

Vendors at the Foreclosure Summit

2006-05-23T08:56:00.000-04:00

Here are some of the vendors that were at the Foreclosure Summit:

* BanditSigns.com Marketing
* Equity Trust Corp. Own Real Estate in Your IRA!
* RehabFunding.com Hard $$
* Brookview Financial Hard $$

Foreclosure Lists

2006-05-22T22:42:00.000-04:00

Here are some services to get pre-foreclosure lists:

Foreclosure Listings

Foreclosure Deals

RealtyTrac

Foreclosure Summit Comes to NJ

2006-05-09T08:51:00.000-04:00

I am hoping to attend the Foreclosure Summit next week in Newark. I will report back with details for those who cannot attend.

This week's recommended reading: Foreclosures and Flipping Advice

2006-05-08T09:03:00.000-04:00

I read a lot of real estate investing books on many different topics. I recently finished these two books and I was impressed with the information they had to offer. The first one will be more of interest to those looking at rehabbing houses; the second is a good general method of obtaining properties for any purpose.

Find It, Fix It, Flip It! : Make Millions in Real Estate--One House at a Time by Michael Corbett

The Pre-Foreclosure Property Investor's Kit : How to Make Money Buying Distressed Real Estate -- Before the Public Auction by Thomas Lucier

6 Questions to Ask a Contractor

2006-04-29T22:02:00.000-04:00

After you get referrals from your Realtor or other investors, you still need to get three bids. Ask these questions of each prospective contractor:

What are your specialties?
How big is your in-house crew? (i.e., full-time employees)
Which jobs are subbed out?
How many jobs do you have going on right now? (should be less than four for sure)
Get recent references (if won't give 'em, then move on)
Can I see some examples of your work? (photos for interior, drive-by for exteriors)

General Hints and Tips for Selecting Contractor:

Don't use the Mega-contractors; find someone small enough that your project matters, but big enough to get it done on time.
Find someone generally close to the job site.
Only consider those in business at least five years under the same name.
Visit a current job in progress (if possible)
Ask for the names of his suppliers and call them to check him out
Check if there are any complaints with either BBB or city/state departments
Ask for both workmens comp and general liability certificates - then call the insurance company and make sure the coverage is active (I have heard of many contractors who get insurance the first year and then don't renew, yet show off the certificate)
How professional is he at returning calls and in other dealings with you.

Rehab Projects You Could and Should Not Do

2006-04-29T21:49:00.000-04:00

Here are some projects that almost anyone can do to save money during rehabs. Of course, you have the option to pass these off to professionals as well, but they will generally save you money when you DIY:

Demolition
Cleanup
Landscaping
Spot painting
Remove wallpaper
Replace switch faceplates and heating registers
Replace door hardware and cabinet hardware

Here are some jobs you should almost never do unless you are a trained professional or have one helping you...You will just get in trouble by either doing it incorrectly and failing inspection, hurting yourself, creating a liability, or doing such a bad job you actually hurt the value of the house"

Asbestos removal
Roofing
Tile work
Refinishing hard wood floors
Replacing cabinets
Installing countertops
HVAC
Most electrical
Most plumbing

Should You Do the Work Yourself?

2006-04-29T21:42:00.000-04:00

Rehabbing houses is getting more expensive, so many investors try and cut costs by doing some of the work themselves. Personally, time is your enemy and I believe you save money when you hire professionals -- as long as you do your homework and get the best price.

However, you will always be tempted to at least do some of the work yourself. How do you devide which jobs to do? When determining whether to do the work yourself or hire someone, consider these questions:

Can this job be done without getting a permit?
Would your workmanship pass an inspectors approval?
Do you know the building codes for this type of project?
Have you done it before?
Do you have the proper tools?
Do you have the time to do it properly?
Would YOU hire you to do the job?

A "no" for any one of them should make you reconsider.

Where to Find Appliances - Cheap

2006-04-28T20:36:00.000-04:00

If you have rental properties, it's only a matter of time before one of the appliances dies on you...and then the tenants will be calling you up right away. There's nothing worse than having to come up with a major appliance in 24 - 48 hours, so plan ahead.

I am always on the lookout for good used appliances - and when I find one, I can store it in my garage. This way you can look like a hero when the stove, refrigerator or dishwasher kicks the bucket and you replace it within a day or two (or faster!)

So where do I get these appliances? Well, there is eBay of course. Most of these auctions are no shipping so you can create a favorite on one more categories (Home & Garden -> Major Appliances -> Dishwashers) and enter your zip code and the distance you are willing to travel to pick it up. Then subscribe to your favorite with an email notification. Now you will know when someone is selling an appliance near you. You can even enter keywords such as 'white' so you get the color you want.

Another good place is craigslist.com. First click on the city or state closest to you; then go to the For Sale section. Go to Household and then you can do a keyword search for what you are looking for (Example: white dishwasher). You will get the results of everyone who has both of those words in their ad. You can even select a minimum and maximum price. Now here's the best part: scroll down to the bottom of the page and click on the yellow highlighted RSS word. This can be used to subscribe to your specific search. You can post the results daily into an RSS reader or on your MSN or Yahoo homepage.

OK, if you must buy new, you can get some reasonable discounts on GE appliances at their online clearence center at http://geapplianceoutletstore.com

10 Commandments for Handling Service Repairs

2006-04-09T14:12:00.000-04:00

Here are 10 commandments for handling a service repair for your units (i.e., you are going to fix something yourself) from "Down to Earth Landlording":

Do not enter unit without permission from tenant or without proper notice
Knock and wait for an answer, if no answer, enter and call the person's name.
Complete only the work that is on the work order
Do repairs with a partner if possible; especially if tenant is home and of opposite sex
Do not make comments on other repairman's work, or tenants housekeepping (in)abilities
Get permission first if personal items need to be moved
Do not enter rooms that are not part of the maintenance request
Do not touch or operate a tenant's belongings
Do not make comments with sexual overtones; if tenant makes sexual advaances, leave and don't go back alone.
Do not enter property with children present unless there is an adult at home

Reasons to Install CO Detectors

2006-04-08T14:24:00.000-04:00

Here are some good reasons to install Carbon Monoxide detectors (at your expense) in every unit!

CO is colorless, odorless, and tasteless
Low level of CO can cause cause irreversible learning and memory defects in fetuses
Early symtpoms of CO poisoning are often diagnosed as a virus (dizzy, headache, nausea, fatigue)
Half of all fatal poisonings in the USA are attributed to CO
Automobiles are a major source of CO (i.e. attached garages)
Heart attacks can be triggered by high-levels of background CO
Appliance malfunction and back drafting casue 1500 US fatalities every year and 10,000 serious injuries (blindness, brain damage, etc.)

Lead Based Paint Pamphlet Available Online

2006-04-08T13:45:00.000-04:00

It is required by law to provide the lead-based paint pamphlet to your tenants, regardless of whether there is lead paint in your unit (brilliant, huh?)

You can download it from HUD here

Legal Reasons to Refuse Tenant

2006-04-08T13:32:00.000-04:00

Want some reasons to NOT accept someone in your unit that will stand up in court? Here are some:

bad credit/no credit
unemployed or unstable employment history
cannot verify income
cannot provide two forms of ID (one with photo)
fails to sign rental application
failure to complete rental application
provides false information on application
has a pet
does not meet your (written) guidelines for minimum income
has active judgements/liens filed again st them
has evictions filed against them
convicted of felony crime
owns a vehicle that is not allowed on property
owns too many vehicles
has history of disturbing others
has history of damaging property
has a disease that is contagious via casual contact (e.g. TB)
filed for bankruptcy
did not give notice to current landlord
more people in family than allowed by ordinance for the unit size
cannot pay first month rent and security deposit in full
application fee of deposit check bounces
is a minor with no co-signor
too much debt (compared to income)

Checklist for Tenant Move-In After They are Accepted

2006-04-08T13:24:00.000-04:00

So the tenant passed your screening and they are still interested in the unit, now what? follow these steps:

Obtain a portion of the security deposit (non-refundable) to hold the unit [give receipt]
Give copy of lease for review (email or US mail)
Suggest (or require) renter's insurance be purchased
All pages of lease initialed and last page signed by all adults
Inspection sheet fille-out and signed
Get tenant's new phone number on premises
Give list of move-out charges, maintenance request forms, and any other necessry information (e.g., HOA rules, etc.)
Give the keys

Tips for Reading a Credit Report

2006-04-08T13:12:00.000-04:00

Here are some tips on reading a prospective tenant's credit report:

Look at public record section for judgements and liens
Verify social security number on application and credit report
Verify address on credit report, drivers license, and application all match
Is there more than one name associated with SSN?
Compare birthyear to first credit entry; if the first time they used creidt they were older than 25, they may be using someone else's SSN or credit report
Check the inquiries section to see who has bee requesting the person's history most recently
Check for bankruptcies; find out if they have been discharged.

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Red Flags of Potential Tenants

2006-04-02T12:58:00.000-04:00

Here are some things that others have used as a potential "warning" sign of a bad tenant. Of course, full due diligence is required...

If, when asked, the person cannot show you a drivers license...yet they drove to the appointment
If a person calls about your rental unit and before asking any questions or hearing about the unit either (a) asks when he can see it; or (b) says "I'll take it".
The tenant hands you a copy of their credit report and says they just ran one recently (run another anyway!)
Many inquiries on their credit report in the last few months
Names on application, names you were told on phone, and/or drivers license names don't match.

Tips on First Contact by a Prospective Tenant

2006-04-02T12:52:00.000-04:00

It's important to take control of a conversation the minute a prospective tenants calls your ad; don't wait for them to ask all the questions. Also, I found it saves a lot of time if you tell people up front that they will need to show income with 2 recent pay stubs (or 2 years tax return). Also mention that you call references and do a credit check. I find this eliminates some people (who you wouldn't want anyway) right off the bat -- remember, say the same thing to everyone that calls!

Another good question to ask is: "How long to you plan to live in this area?" You want to eliminate turnovers as much as possible. Nothing kills cashflow faster than a vacancy - not even a major repair.

Here are some more tips when scheduling an appointment to show the unit:

Make sure that everyone (even pets if allowed) shows up so that they can see it and you can meet all of them
Tell they need to confirm an hour vi aphone prior to the appointment otherwise you will not be there (this eliminates many no shows!)

Notes: I think I've mentioned this before but a person asks for a copy of their credit report ("I paid fer it, didn't I?") you cannot give it to them, it is illegal. Also, do not mention names of specific creditors. You can say "I see you have a late payment to one of your cards.", but not "I see Joe Smith has a judgement against you."

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Free Public Records Searches

2006-03-30T10:36:00.000-05:00

The site SearchSystems.net has access to about 36,000 public databases, organized by state. Most of these searches are free -- there are some that are pay services (either one-time or monthly subscription).

Here are some examples of available info:

Free Rental Property Management Forms

2006-03-29T11:45:00.000-05:00

FYI:

Here is a site with some free property management and mortgage related forms.

They are in HTML format.

Here are some examples:

Rental Application

Co-signer Agreement

Request for Work

Inspection Form (move-in/out)

Balloon Note

Assignment of Deed of Trust

Quit Claim Deed

Purchase Contract

Option to Buy

Note: Always check with an attorney on validity of any generic form you obtain.

Hard-to-obtain REI Domain Names for Sale

2006-03-28T16:23:00.000-05:00

Buy These Valuable Real Estate Investing Domain Names before they're gone. Some are specific to NJ and Florida. Others are generic.

If you are serious about an online prescence for your investing business, you need a good domain name. If you've tried, you know how hard it is to get them too!

Ways to Advertise a Vacancy - My Impressions

2006-03-26T12:22:00.000-05:00

Here are my thoughts on cost and effectiveness for vacancy advertising, based on my limited experience and location:

For Rent Sign: Other investors have told me that this is the best bang for the buck; my HOA doesn't allow signs so I am limited to sticking it in the window - which was not effective. I also wonder about the security "smartness" of this idea.

Word of Mouth: Let everyone in your REIA know you have a place to rent, in case they know someone. Also, tell friends, nieghbors near the rental unit, and give your current tenants a $150 reward for referring a qualified renter. This can really cut down on vacancy time. I have not had this work for me yet.

Flyers: I posted flyers with rip-out contact tags on community bulletin boards at the library, food stores, drug stores, and park. I did not have any success but if you can find a high traffic area like a bus stop, you may do well with this.

Rental Agencies: While I am dubious about the service they offer (and would never use one as a prospective renter), they don't charge the landlord anything - so I say use them. I did get a few calls from agency clients. You may even want to call these agencies as soon as you are aware of an upcoming vacancy.

Newspapers: This is by far the most expensive advertising method, however, it did generate the most phone calls for me. You might want to try the other methods first, but if you are in a hurry, get an ad in the paper and try for a discounted rate.

Internet: I didn't have much luck with online newsgroups, Craig's list, and othe rental specific sites. In fact, I got two calls, both from out of state, of people not knowing how to use a search function! The other lead I got was via email and it was just the other day - the unit has been rented for over a year now! That shows that some sites never remove information unless you go and do it yourself.

Realtors: OK, this is one I have mixed feelings about. I actually got my current tenants via a Realtor, so I'm grateful for that -- but I would have to say I wouldn't do it again unless I was desperate. Here are the beefs I had:

They wanted 1 month's rent as a finder's fee (that's $1200).
They wanted a commission if I decided to sell the place to the renter
They insisted on using their application and lease since they are "protected" and understand it; even after I spent hours and hours fine-tuning my paperwork (this was the one that ticked me off the most)
This particular realtor tried to negotiate the rent on behalf of her clients, as if this was a house sale...Excuse me?

So how would I go about advertising a vacancy in the future -- Here are the steps I would take in order.

Before the unit is vacant I would:

Word of Mouth - Tell tenants to recommend someone; tell neighbors it will be available; post message on REIA newsgroup
Put up a sign - window (or grass if you can do it)
Call Rental Agencies - let them know when it is available
Put up a few flyers in key locations - but not go overboard since it doesn't pay off time-wise

Once the unit is vacant I would:

List an ad with one or more newspapers (small local and "big" county paper)
Maybe try a few internet posting, but keep track of where I list them
If I get desperate - call a realtor (but make my demands up front)

Write Down Your Tenant Criteria

2006-03-26T12:00:00.000-05:00

One of the best ways to stay out of trouble with Fair Housing is to have specific criteria for your selection of applicants, and then Write Them Down! Also, make sure you follow them and can prove it -- a checklist is a good idea and keep the checklist with each application. Only about 5% of landlords do this.

Tip: Make your standards high - you can always go back and then select the most qualified applicant if no one meets the criteria -- but the first that does meet the criteria you must rent to them.

By the way, you should not give these criteria to prospective tenants. It is simply an internal document for you -- just in case.

More Tips on Landlording and Leases

2006-03-26T11:55:00.000-05:00

Do a rent survey to find out how much your place is really worth to a renter. You may have to ask Realtors, pretend to be a renter and walk through a few places to see what kind of shape and amenities they have, and of course, check the newspaper.

Always charge the maximum security deposit your state allows; in New Jersey it is 1 1/2 months rent.

Make sure that the amount of days the tenants have to notify you that they will be leaving is greater than the amount of the security deposit, otherwise they will tend to use that money as the last month's rent...then you have no money if there is damage after they move out.

Can You Deny Renting to Smokers?

2006-03-26T11:48:00.000-05:00

Yes.

Smokers are not federally protected under the Fair Housing act. There are two caveats, however:

If you have federally subsidized housing; you cannot disallow tenancy based on smoking
You must apply the ban to every applicant, do not make an exception for someone who appears to be the perfect tenant on paper but smokes - either you allow it or you don't.