Have you noticed how anytime you walk in to a book store and find your way to the business or financial books all the views that are expressed in the titles are very similar??? In one way or another they all call out for a monetary version of bloodshed. I mean the titles are about “how you can crush the other guy”or “it’s not personal its business”, “How to come out on top” etc etc. Years ago when I got into the real estate investment game I spent hours looking thru the book titles. Trying to find the one book that would teach me how to become that REAL ESTATE INVESTING GOD I knew I could become. After reading many of the most popular books of the time I actually would feel beat up over the content. I mean did I have to be a “take no prisoners” type of investor? Did I have to prey on some one else’s misfortune?? The answer was no. However I did need to learn to take somethings to heart,and NEVER let go of them. I liken it to building my investment suit of armor so to say. So I set out to build a list of my investment rules. We each should have our own set of investment rules. It will help you keep the animal investor inside of you in check. In my case,being that I am a VERY competitive aggressive alpha male type personality I need rules that would keep me “Human”. My own set of personal laws that would keep me on the “non predatory” path. Doc’s Rules for investing:
1) Set up some personal guidelines: Define and follow these guidelines. This is the most important rule I have. . Things to include, but not limit you to, are: Top dollar amount and lowest dollar amount. Type of investment you want to deal with. Period of term for investment.. Etc etc. (You can even have a guideline about the amount of time you will work per-day)
2) Remember a family is behind the deal you’re working on. Simply put,whoever you are dealing with has mouths to feed. Just because you can get a great deal on a house because the current owner is in a facing some sort of adversity that is causing them to sell below market value, DOES NOT give you license to kick them when they are down. Treat everyone with dignity and respect. If the price they are offering still falls within the personal investing guidelines you have set for yourself ,don’t use your position to abuse the seller. If you?re getting the house for .40 cents on the dollar,don’t be a jerk and push for .20 cents. Always remember…it could be you in the sellers postion. (This rule DOES NOT come in to play when dealing with a bank owned property)
3) Always ask for what you want. No where does it say you can’t ask for something in an investment deal you like, I.E. if you’re looking at a piece of real estate with a pool,ask the seller if they would be willing to throw in new carpet to the sale. I once met a investor who was looking at a house that had been on the market for more than 6 months. When he went to talk to the seller he happen to see a 1954 Merc Coupe in the garage, so he asked if it was included in the deal. The deal eventually closed for the house AND the car. 4) Offer everyone the chance to make money as a bird dog for you. I always give several of my business cards to anyone I do business with and offer them a portion of any profit I make from any investments they help me locate. You would be amazed at how many people are willing to help you make money when they get a small part of it for doing very little work. (And if you follow rule #2 you will be amazed at how many of those bird dogs will sing your praises from the highest mountains)
These are just some ideas of things to keep in mind when you’re working on your investment mindset. These rules have worked well for me over the years,and in more cases then not, have gotten me more return and repeat networking opportunities then I can count.
Doc Schmyz has invested all over the US. His website shares Real estate investing information for all over the US. Find real estate information by state
Most people have two popular notions about foreclosed homes: that they are being sold at bargain prices and that they are only located in crime-ridden areas. The former is not always true while the latter is definitely not always the case.
The price of foreclosed properties can be 30% to 40% cheaper than their current market values but that doesn’t necessarily apply to all. Most houses will likely be sold at about 5% less than their current value. This is because banks decide the listing price with respect to the condition of the property. Factors including the location and the type of neighborhood where the property is will also affect the listing price of the property. A common notion that a foreclosed home can be bought cheap, only requires a little fixing up, and can be sold at a hefty price is a big misinterpretation. Well, some properties may fit this idea, but this is no longer the norm for this type of real estate investment.[I:http://www.investment-and-finance.co.uk/wp-content/uploads/DocSchmyz5.jpg]
For foreclosed property buyers, this means one thing: in order to get the best deal, you really have to put in the time and legwork in finding the best property on sale. One thing you have to remember if you are considering this kind of investment is that banks will definitely not sell off the properties at cheap prices as they are being appraised first before they go into listings. They know the value of homes that they have foreclosed and they don’t treat them as liabilities, but as assets.
What about those properties that sell at bargain prices? Most, if not all, require major repairs or have eviction issues, or both. Electric and plumbing issues are the most common across the country. Followed closely by wood rot and decay.
Foreclosed properties can be found everywhere and can come in any form, shape, size, and price. This is contrary to the popular belief that foreclosed homes can only be found in crime-ridden areas. Meaning, finding a country villa, log cabin, beachfront home, and prime property among many others are within your viable options. But you should never, ever expect that these properties are sold dirt cheap. As the old saying goes, “you get what you pay for.” So, if you are eying a premier foreclosed property, just expect to pay the real cost or slightly lower than its current value because in the end, saving you from the trouble of repairs and dealing with the bad neighborhoods are really worth the extra bucks.
Doc Schmyz has done real estate deals all over the US. He built a free website shares Real estate investing information for all over the US. Find real estate information by state
During a down real estate market, finding foreclosed homes can be easy but you can also find foreclosures in a strong market. Here is a list of the places where you can start your search for foreclosures. [I:http://www.investment-and-finance.co.uk/wp-content/uploads/DocSchmyz3.jpg]
Auction Houses
Many of the auction companies hold a large inventory of properties. Since the bidding is relatively quick and houses can be sold in a matter of seconds, prices of real estate can go over market value but you can also find really good properties in their inventory.
Bank Web sites
Major banks maintain a good list of foreclosed properties. Some are listed on the homepage of the company website. Visit bank web sites and check out the foreclosed properties listing.
Online foreclosure companies
There are several online companies that specialize in foreclosure real estate. Most charge some type of membership fee to anyone who want access the list of properties. The good thing about signing up on web-based foreclosure companies is that once you are in. More often then not, you can opt-in for a email update on real estate in areas your looking at.
Real estate agents
Now days most agents are either maintaining personal web sites or are under real estate companies that sell foreclosed properties. You can search them online or browse through yellow page listings. Major cities have real estate offices where you can inquire into possibility of acquiring foreclosures. A lot of agents are dealing with large volumes of foreclosed real estate these days. Seek out and ask for a agent who has a track record of dealing with both foreclosure and short sale real estate.
“Bandit” And Listing Signs About Real Estate.
You don’t need to look anywhere else because you can find foreclosure signs around your neighborhood. Homes with signs like foreclosure, bank repo, and bank-owned are for you to consider. These signs contain address and contact information of the agents you can visit or call. The best thing about considering homes with real estate signs is that you can actually check the condition of the house on-site. And with one phone call, you can arrange with the agent the date when you want to see the interior of the house.
Government Agencies
Fannie Mae foreclosure homes, Housing Urban Development, Small Business Association, Department of the Treasury and other government agencies have a list of real estate properties for sale. Usually, when buying a house from these agencies, you are required to acquire the services of a real estate broker or personally submit an offer. Go to any of the government agencies web sites for more information.
Doc Schmyz has invested all over the US and Canada. He owns a free website that shares Real estate investing information for all over the US. Find real estate information by state
Most fixer uppers are homes that usually need a number of home repairs that generally do not require special knowledge or expertise on your part, as the homeowner. Fixer upper homes can be excellent bargains when the “asking price” is significantly lower than the current market value.
A “fixer” needing a little cosmetic fix-up can be a great investment property. Most generally need some repainting outside and inside, new carpets, some new lighting fixtures, some lite repairs, complete cleanup and landscaping.[I:http://www.investment-and-finance.co.uk/wp-content/uploads/DocSchmyz6.jpg]
If the home necessitates massive repairs such as electrical and plumbing problems that usually are expensive, it will slash your profit back or worst, eliminate it.
Before purchasing any house , a professional home inspection should be considered because the inspector can provide you an accurate idea of what existing problems the home has and what repairs are needed as well as an approximate repair cost.
Here is a short list of common issues found during a home inspection.
Roofing
Insulation
Plumbing system
Electrical system
Central heating
Central cooling
Water seepage
Structural (Most of these defects requires expensive repairs especially when talking about the value these repairs will return upon resale.)
Most often, major defects go unnoticed because fixer upper buyers usually can’t see the inside workings, hidden out of view or behind walls. When buying you a fixer upper you need to turn over a few stones in order to find out the information you need to be aware of.
A broken “heat-exchanger” in the heating system, faulty wiring, termite damage and safety and health problems like lead accumulation, water pipes as well as asbestos insulation are common physical flaws that you can’t see immediately and need to be corrected before a re-sale.
Indications of these problems are as follows:
Moisture stains that can be found on ceiling and walls could mean plumbing problems.
Separations between wall and floor specifically for outer walls could mean structural problems.
Sawdust piles near woodwork or wall corners can be an indication of termites.
A home inspection from a professional
Professional home inspections can cost about 200-325 dollars depending on the kind of property, square footage, etc.
When your going to use a home inspector it only makes sense to get a quote. Look at years experience as well as price for the person you hire.
Several home inspection companies have some kind of computer-like machines which can supply inspection reports and descriptions instantly then the company adds their “pre-printed” sections which are very helpful for you in order to understand the fundamentals of repairing, fixing and replacement.
The most important part of a home inspection is that the companies supply an entirely impartial appraisal and assessment of the house, inspecting everything carefully from electrical systems, plumbing to structural to make certain that the fixer upper house you are purchasing is sound.
Professional home inspectors can make certain that all major systems (air conditioning, plumbing, furnace) are working properly or they can pinpoint defects to you because these kinds of repairs will cost you a great deal of money.
However not all major repairing problems automatically indicate that you shouldn’t purchase the fixer upper home, because they can simply be added in the home’s price upon resale.
A good fixer upper seller or realtor will and can factor in said considerations or concerns and you possibly can purchase the home for even less if you put it clearly that you will be responsible for the repair or replacements. Just be careful that you don’t get tricked. Never take anybody’s word that the plumbing, the furnace or the electrical have no problems at all; you have to make certain.
Sometimes walking away from a “deal” is the best option. Perhaps it is due to location or a disagreement on price with the current owner. (Repair costs are almost always a sticking point)
In order to really make a good investment in a fixer…you need to find the hidden “information”. Most of the time a seller will not go out of the way to tell you. In some cases it isnt done out of spit…it might be information the current owner isn’t aware of themselves.
Doc Schmyz has invested all over the US. He built a free website shares Real estate investing information for all over the US. Find real estate information by state
