Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.

Monthly Archives: June 2017

Foreclosure 411

Foreclosure 411Researching real estate comps usually turns up plenty of foreclosure properties.  A foreclosure refers to the process of a property being returned to a bank or lender because of non-payment by the owner.  Unfortunately situations may arise in which the home buyer can no longer make monthly payments on time. This may be due to unexpected medical expenses, the loss of a job, or poor financial planning. It’s usually in the best interest of the lender to continue the loan, but if the buyer misses too many payments and has no visible avenue for getting current, the lender may be forced to begin the foreclosure process.

Foreclosures are possible because the property serves as collateral for the loan. In the mortgage agreement, both parties have agreed to certain conditions, including the return of the house to the lender when required payments aren’t made.  Foreclosures are always attractive to real estate investors. Foreclosure investing lets you buy properties at bargain prices. You will find that the time and money you invest in a foreclosure will almost always give a greater return on investment or ROI.

The Price Is Right

The Price Is RightReal estate comps and location are the most important features to consider when buying a property.  The price is the most important consideration when selling a property.  If you have set your price too high for the market, you will have trouble selling. Buyers look at comps, just like the sellers do.  A good realtor will be armed with knowledge of the sale prices for all properties that closely match yours. They will also have all the listings of properties currently offered for sale in the price range you are considering. Listen to a professional when setting your asking price.

After on overpriced listing has had several showings, and no offers, the seller decides to reduce the price. Hopefully they aren’t too late. Now the home is priced right. Here come some new buyers. Their reaction if the price reduction is too late will be “Wow, this is a nice home, but why has it been on the market so long? I wonder what’s wrong with it. I’m going to keep looking.” This is a logical train of thought.  A good realtor will help a seller avoid this costly mistake. Be cautious when interviewing several realtors, of the one that suggests an unrealistic asking price that isn’t supported by the market with recent “comps.” Some realtors, once they’ve listed a property by gaining the owners trust and confidence, will then badger the owner to lower their asking price. They will also tell the owner all the reasons why the price is too high. Something they should have addressed before they took the listing.

Ok guys, it goes without saying that the price of a property is highly important.  What you do with it after your make your profit when you buy is up to you.

Investment DON’Ts | Part 4

Investment DontsMy last post to discuss what NOT to do when doing real estate investments will focus on contractors.  They are an integral part of your business and you should treat them as such.  Having said that, you are still the owner and they are soliciting you to earn your business.

When working with contractors, I generally go with a retainer system.  I pay the contractor a certain pre agreed amount, and then the remainder upon completion and inspection of the work.  Don’t pay your contractors in advance. I hope that as a new investor you’re not doing rehabs. I don’t suggest you even think about picking up a hammer until you know this business better. Or, I suggest you never think about picking up a hammer and you hire someone else to pick up that hammer. But never, ever, ever pay your contractor the full amount in advance. Typically, you know there are different ways of teaching, get your training if you want to do rehabs, but you could give a quarter up front and then another quarter when it’s half done. Here’s how I do it: They get 25% up front, 25% when the job is half done, and they get the other 50% when it’s finished.  Many times if you pay a contractor up front they’re going to use that money to finish the job that they’re on now and they’re going to have to sell someone else to find the materials for your job. So never, ever, ever pay a contractor up front.

I hope these tips will be beneficial to your real estate investment business.  I sincerely hope that you are able to take these bits of information and make them work for your business.

Investment DON’Ts | Part 3

Investment Don'tsToday, I want to talk about the landlord/tenant relationship.  It’s important that you make it a win-win for both parties involved.  I know that you feel that you should go with whoever wants to rent the property for the sake of rental income.  However, I want to caution you in going with the first person that shows interest.

There’s a reason they can’t qualify for their own loan and they’re buying that house rent-option. Check their credit. Do a background check. Make sure that they pay their rent. Check their jobs. Find out if they are in good standing.  These are important factors when you think of getting rent paid on time each month.

So, don’t sell it to the first person that appears without doing your homework. Again, it comes down to diligence. Just like you want to do your homework and get good comps and check out your title before you buy, you need to check out your folks before you let them move in…could be a profit, could be a liability.

Investment DON’Ts | Part 2

Investment DONTsToday, we want to keep talking about some pitfalls to avoid in real estate investing.  Previously, we discussed the importance of having solid real estate comps.  You must make sure your research is done before you purchase any property.

Make sure you know the area. If it’s an area that is not good to live in, it’s not going to do you much good to have that property in that area.  Remember you’re still going to have those mortgage payments until it is rented or sold. Make sure you do the comps, make sure you know how much it will rent for, make sure it’s an area that people are going to want to live in, or you’re going to be saddled with a payment.

Some things that you can do to prevent that: When you sign that contract, make it contingent upon you finding a suitable tenant. One could say unless my tenant is ready to move in, I won’t close and take the house.  Just because they’re willing to sell you the house sub-to, doesn’t make it a deal.

On the next post, I want to talk with you about tenants and what a working landlord/tenant relationship should look like.   It is my hope that you are going to be able to apply these tips and make them your own.