Tag Archives: real estate

Sallie & Freddie Get Kicked in The Fannie!

Sallie & Freddie Get Kicked in The Fannie!

There is a lot of talk these day about the Federal interest rates.

Are they going up, are they going down, what will happen next?

A lot of investors are wondering, distracted and some just waiting for the market to “cool” down before they get in. But the opposite is true!

Now is the best time, especially with this strategy that I am about to share with you. I have been doing this for years. Recently this method went unnoticed, no one cared, it wasn’t on TV, even investors didn’t talk about it at investment groups. But that didn’t stop me, I guess because I like to do things before the waves form. I look out into the ocean and see what’s coming next and start.

This strategy has gained more popularity and status in the recent years because of the biggest bank crisis ever in US history and I will share it with you here…

Did you know that more millionaires were made after the great depression than any other time in American history until recently?? The numbers are staggering and the tables are being over-turned. Here’s what I mean. In 2008, when the “credit crunch” hit the world, banks froze up so much that it seemed like even oxygen was going to be lost…

Jobs were downsized, businesses forced to close, bankruptcies hit all time highs, and sadly people took their lives because they couldn’t handle the pressure of a shrinking economy and a banking strategy that could no longer be trusted.  And that’s when the government had to step in.

This became the newest and biggest financial collapse the world had ever seen.

However, there was a few investors that looked at “rebuilding the economy” as a rehabber would. Gutting it all out. Putting on protective glasses to see through the dust that has taken years to settle and they went to work on a strategy called Owner Financing. A strategy that allows investors to work directly with homeowners WITHOUT the “big” banks getting in the way with their loopholes and “over extended” ways.

I too had a pair of those protective glasses! Let’s just say I have learned from past experiences that it’s important to come prepared so you see when the going is going to get dusty.

When other investors saw what I was doing and how I was still turning deals in a “tight” financing market they wanted some glasses too. So I showed them how to get them and use them to get great deals during this crisis.

Hey, I hope you like my examples here, but the point I am driving home here is that there is a lot of talk from the media about what could or couldn’t happen with interest rates and the economy but don’t let it stop you from investing. Get started now.

At the link below is a training I put together for you on how you can start using this same strategy that I used while everyone was panicking. I was closing deals and making money.

Here it is: http://filthyriches.com/

After you watch this, let me know what you think okay?

Larry Goins, Author

Where To Find Filthy Riches Homes

Larry Goins here and I have spent years perfecting my Filthy Riches model to real estate. If you haven’t heard about my Filthy Riches model, it is all about making more money on a run down $5,000 – $10,000 house no one else wants than most investors make on a $100,000 house…Guaranteed!

Yes, believe it or not, you can pick up a great deal on a $5,000 – $10,000 house and sell it for 3-6 times what you paid for it with no buyer’s list. More about the model later. But where are the properties that I target to generate so much personal income?

The houses in this program are low-income, distressed properties that no one else wants, just not the “dog with fleas” homes. They will need some work before moving in, they just aren’t going to be in too bad of shape. The idea here is you want fixer uppers, not blower uppers. Something that is either livable or close to livable.

These homes might have been on the market for a while for real estate agents, but they are very attainable at a cheap price and with the right approach, can be amazing money making ventures. And the best part is you can buy them at 20-40% of the list price.

So, with all the houses out there that might fit the criteria of a Filthy Riches house, where does a potential investor begin? Some of the most profitable and fastest ways to locate these houses are below.

Vacant houses: We’ve all seen them, the “It’s a Wonderful Life” types of homes. You see tall grass, maybe a window broken or a shutter has fallen down. You know, the kind of house that some people might make fun of…but for the right person, it’s everything they’ve wanted and a huge money maker for you.

In a typical deal, the property owner might have inherited the house from a relative or bought the house as a rental property, but is tired of being a landlord. Or the last tenant skipped town and the property owner hasn’t been able to generate the funds to fix the house up to re-rent it. It might be difficult to find the owner of a vacant house. Most counties have tax records online so anybody can look up a homeowner with the correct address to plug in. In fact, you may just find someone willing in the local tax department to steer you in the right direction, particularly if a home’s taxes are in arrears. Or, you might be able to solicit information from a neighbor, either personally, or through their information via county records and people finder sites.

One “last resort” method that I learned a while back that has been used: take your own “for sale” sign and plunk it on the lawn with your name and number on it. Invariably, the message will get back to the homeowner, who will call you to find out why you put a sign in their yard. This is kind of sneaky but it works. And hey, no harm done.

If you do have the homeowner’s name, you can contact a credit reporting agency and buy a “credit header.” These look like credit reports on a person – minus their actual credit information – which contains all their contact information, including current phone numbers. To find a qualifying credit agency, just Google credit header.

Realtors: Many properties can be found directly through real estate agents. Before contacting one, you might want to look through their website or realtor.com for properties under $30,000. From here, you can contact the Realtor and use a script and projected offer that we discuss in the Filthy Riches course. Even if they don’t have anything readily available, you can always ask them to put you on a notification list if they get more properties under $30,000.

So, why would Realtors be willing to work with you if they’re only getting a 6% commission on a house listed for $30,000 that you pick up for $10,000? That would only be $300, right? Wrong. Many listing agreements have a minimum commission, which research has shown can be around $1,500 per property.

REO Realtor: A third option is to locate and utilize a local REO (real estate owned) Realtor. An REO Realtor is a person who works directly with banks or asset managers who have foreclosed on a property.

Call one of these Realtors and ask them to pull up a report for you that uses these words: REO, Bank Owned, corporate owned, Seller Addendum Required or Foreclosure. These lists will have the coordinating listing agents that worked on these properties. From there, you have a new list of Realtors that work with banks and asset managers who traditionally work with these types of properties.

Bank Owned REOs: You might also be able to find properties on bank’s REO websites. This is a great way to look for properties that are listed before a Realtor has a chance to list it on the MLS or their own website or Realtor.com. If you’re looking to get a jump on the competition, this is a great avenue to explore because you can find properties before other investors have even seen them.

Free Classified Sites: You can use sites such as Craigslist to search for properties or to list your own ad to get homeowners to contact you. If you’re looking for property, be sure to use search criteria such as “handyman special”, “fixer upper”, “cheap”, “cash”, etc.

Houses for Sale Sites: These are similar to classified sites, although they are tailored specifically to real estate transactions, both selling and buying. Sites such as propbot.com are classified sites but are real estate specific.

eBay: You can find some great deals on eBay, although you might have to do a little weeding through the ads. Go to realestate.ebay.com and use similar keyword searches as you would for a classified ad. Additionally, if you bid and buy a house through eBay, make sure you get a general warranty deed or special warranty deed. If they are offering a quit claim deed, it may be because there are back taxes or code enforcement issues involved. Regardless, title insurance will help verify that there are no back taxes.

Auctions: Look for local auction companies and make sure you are on their regular mailing or email list. Also, search websites such as auction.com for properties. Attending live auctions can also help you build your buyer list.

Code Enforcement: Local code enforcement officers can tell you what properties may have code violations against them. They may not be able to get a hold of the owners or the owner may not have the ability to fix the code issues. Some code enforcement officers may be hesitant to provide this information to you, but these records are public information.

A Few Other Sources: Other sources of property information are property management companies (who work with low end property rentals and might know who wants to get out of the business), hard money lenders (who make rehab loans and may have to foreclose on a property for nonpayment), bird dogs (someone who house hunts for you) and “for rent” signs. Often landlords may be willing to sell their properties.

These are some great areas to look if you want to focus on the fastest, best and easiest ways to find properties in order to start making money as soon as possible.

Larry Goins is an author, speaker and coach for real estate investors. His best selling books are: Getting Started in Real Estate Day Trading and HUD Homes Half Off! For more information on the Filthy Riches model where you can learn how to earn returns of 119% – 788%, visit LarryGoins.com or call 803-831-2858.

#CheapHouses, #RealEstate, #RealEstateInvesting
#Articles, #BuyingInvestmentProperties, #HUDHomes, #MobileHomes, #SellerFinancing

Have You Heard About Our Upcoming Events?

We have several upcoming events that I wanted to make sure you knew about! If you have even a remote interest in investing in Real Estate, you need to attend at least one of these upcoming events. The trainings range from 4 hours to 5 days, so there is something for everyone’s schedule.

Larry & Kandas are hosting two 4 hour info sessions in Charlotte, NC on July 30th, 2016. You can find out more  info and REGISTER at http://www.BragRadio.com

August 12th-14th, 2016, we will be holding our 3-day training event in the Dallas/Fort Worth area. If you are in that area, you can find out more info about that investor training and register for that event at http://www.LarryGoinsLive.com

We will be holding our next Inner Circle Mentoring Program the week of Aug. 29th – Sept. 2nd, 2016 right here in our Lake Wylie, SC office which is just 15 minutes outside of Charlotte, NC. To find out how you can become our next Inner Circle Alumni, just call our office and ask to speak to your personal Education Consultant! You may call 803-831-2858 between the hours of 9am-5pm EST.

September 9th-11th, 2016 will be our LAST 3-day training on the East Coast for the year. If you can make it, you need to be there! http://www.LarryGoinsLive.com to find out more and/or to register!

We have so many testimonies telling us how much our real estate investor trainings have helped our students. As Larry says…give us just 1% of your trust and we will earn the other 99%.

As always, you can give us a call with any questions! Just contact our Customer Service Dept. between 9am-5pm EST. 803-831-0056.

We hope to see you soon ready to start reaching all your financial goals!

~Melanie Bell, author

#LarryGoins, #RealEstate, #RealEstateInvesting, #TeamGoins
#Broadcasts, #Events, #UpcomingEvents, #What’sGoinsOn?

Throwback Thursday – Fundamentals In Real Estate Investing

It’s Throwback Thursday! Check out this video I found from the early ’90’s. TV Show host Allon Thompson brings me on his program, “A Beginners Guide to Real Estate Investing” to talk about the many ways I find deals at discounted rates. I speak about the most important aspects of Real Estate Investing. I wanted you to see this as proof that Fundamentals in Real Estate Investment never change! Just watch this video and see for yourself how these fundamentals still apply to this very day. Some things never change!

Try out one of my products or grab my free e-book and you’ll understand even more how I have applied these fundamentals over the years and created my own successful Real Estate Investment Agency!

Is it a Modular to the Lender?

Real Estate Article: Larrygoins.comThat is the question! What you think and what the State defines, as a modular home, may not be the same definition a lender uses for a modular home. The lenders’ philosophy is this, “If it walks like a duck, and talks like a duck, it is a duck.’ What they really mean is if it looks anything like a mobile home, i.e. the roof pitch, the shape of the home, is there metal underneath, it is a mobile home.

Modular home dealers in both North and South Carolina will tell you the house is a “true modular home”. And by the states’ definition, it may be considered a modular. However, the state is not loaning you the money. You need to ask if it is being put in place by a crane and is there any metal underneath the house. If there is metal, it is NOT a modular home to a lender! If the roof pitch looks similar to that of a mobile home, it is NOT a modular home to a lender! If the house is being placed on a road or in an area where there are other mobile homes, it is NOT a modular home! Dealers will be able to sell you the home on frame or off frame. Off frame is much more expensive ($4000 -$8000 more). On frame is a mobile home, off frame is modular, but what does the roof pitch look like? (Does it walk like a duck?)

Forgive me for going around and around with this but it can be so hard for some people to understand something when the state deems otherwise. What worries me the most is that lenders have really changed their tune on lending money for mobile homes? A few really bad dealers have ruined things for the honest folks by changing out homes after the appraisals are completed, even on mobile homes with brick underpinning. That 3 bedroom, 2 bath has mysteriously become a 2 bedroom, 1.5 bath overnight. Yes, people are going to jail, but the cost of doing that kind of business is much less than profitable.

Are modular homes a good idea! Absolutely, if you are buying one that looks like a Colonial, Cape Cod, English Tudor, two story, L-shaped regular kind of house. You get the drift, I’m sure. I once refinanced a house on Lake Wylie in the same neighborhood that Larry Johnson lives in (former Hornet). That was a $650,000 modular home and no; it did not look like a really big mobile home! You would never know it was a modular home.

Don’t think that investing in a mobile home park, with or without mobile homes is a bad idea, that is a commercial type loan and it is still a very good investment. All I am saying is to do your homework with a lender who has seen the appraisal and then approved the loan before putting any money down on a modular home. If you should have a question about it, please don’t hesitate to contact me at 803-831-2856. That is what I am here for!

 

Is the Deal Right For You?

Is the Deal Right For You?I get calls every day from investors who are new to the business. They get pre-approved for hard money and take out loans and then they start searching for the deals. There are many deals out there, but is it the right deal for you? You do need a down payment of 25% plus unless it is a seller financed deal. You are limited to less than 10 mortgages on your credit.

With a hard money loan or rehab loan, an investor can get a loan to purchase the house and fix it up. Once the rehab work is complete, they can refinance at 75-80% of the market value. If the deal is structured correctly, there should be some cash flow each month from rent. Some investors prefer to sell the house prior to a refi and cash out with the sale. Some investors prefer just a rate and term refi and would rather have larger monthly cash flow. As an investor, you must decide which will make you meet your goals. Maybe all of these scenarios will help you meet your goals. The savvy investor knows which house to rehab as an A or B type rental, which house to flip to another investor or sell it retail and which house to hold on to because of the future equity it will provide. Unless you are very experienced or have plenty of money to play with, pick one or two scenarios that work toward your goals and forward the deals that don’t fit you criteria to other investors. They will do the same for you. Pace yourself, you don’t need to do them all. Sometimes the timing is just not right for someone else; don’t discount the deal as one that doesn’t work for you either. Do your homework and see if it works for your game plan. If it does not work don’t just pass on it, pass it on!

If you would like some direction on goal planning or need help in working out numbers on a deal to fit your goals, please don’t hesitate to pick up the phone and call Wendy Sweet at (803) 831-2456. We are happy to share what we know and we will be happy to direct you to others who are also happy to share information.

Holiday Celebration 2013 Photos

The week before our office closed for the holidays, our office family got together for a small holiday celebration. Together we cooked food and gave thanks for another great year. Below are a few of the pictures from our holiday celebration. Enjoy!

Get In the Mind of a Potential Buyer

How to Get In the Mind of a Potential BuyerLet’s assume that you’ve already found the property that you want, made the purchase and marketed it to sell. It’s time to go over how to work with potential buyers in order to find the best match for your property.

Obviously, many people who contact you are doing so because of the financial incentives of having a low down payment and a small monthly payment. This means that you are going to have to wade through a lot of credit issues and other problems that might be associated with this particular demographic.

First of all, when you provide a contact number, it makes the most sense to have a number that rolls directly into voicemail or an answering service. An answering service, in particular, can be guided to gather all the information that will help you make any necessary decisions. Regardless, channel these calls away from your direct line. This way, you’re not tied up on the phone all the time, but can carefully go through the messages that are left to determine who might be suitable candidates for your property.

However, if you do speak with the client directly, you want to get their contact information immediately. Then you’re going to want to ask them what their credit score is. Chances are, you’re not going to get the full truth. Make sure they know that before you move much further, you’re going to have to pull their credit score. They need to know that a bad report won’t necessarily disqualify them but that you need to know if there are any problems that you should know about. Tell them if you know about any issues up front, you can probably still work with them.

When you have a handful of potential buyers, it’s time to start pulling their credit reports. If you’re working through a lender, they can pull the credit report, but if you anticipate having to pull a lot of reports, you might want to consider getting yourself set up for this task. Another option is to give your potential buyers a link to a credit report website and have them pull their own report to forward to you. In my guide, I have provided several websites where you can either do this yourself or provide to your buyers.

If they come back with a 520 score, you want to move on to the next potential buyer. This one is too much of a risk to work with. Ideally, I like to see a credit score of 640 in order to qualify your potential buyer. But if a buyer has really poor credit, you might want to consider raising the down payment from $1,000 to minimize your risk. The more money you can get as a down payment, the higher your yield will be on your note.

In my guide, I have provided you with a form for the potential buyer to fill out. This form talks a lot about how to find more cash or a co-signer. Also on the form is a section for additional credit references. It’s always good to have as much financial information gathered on this one form in order to make an informed decision on who to sell your property to.

You can assume that if someone has already contacted you, they’ve already seen the property and maybe even looked in the windows to see what the interior looks like. There are several different ways to go about showing your property. You can pay a realtor $500 to show the property to potential buyers. The payment would be contingent on someone actually buying the property, which you can pay to the realtor once you’ve completed the actual sale.

Another option is to collect the down payment, which will be refundable if they don’t like the property. When this is collected, you can give them the combination to the lock box. Before they even enter the house, make sure you have them on the phone while they’re looking around and you can “show” them the property without ever having to leave your own office. It’s critical to have them open the lock box, take out the key, open the door and put the key back in the lock box before they even enter the home. This way, the key isn’t lost or accidentally pocketed. You may have to show the house several times before finding a buyer and if the key gets lost, you’ll have to have the lock replaced before showing it again.

Once they’re inside, it’s pretty easy to talk to them as they’re going through the house. Don’t forget, these are low end properties, so the expectation level of this sort of house is going to be a lot lower than the traditional home buyer. With this type of property, the incentive is not the qualities of the house, but the easy financing that is motivating the buyer.

If they’ve decided to buy and you decide to sell to them, overnight them a one-page offer to purchase. This isn’t all the paperwork that will be exchanged; it’s simply the next step in their level of commitment to buy.

When that is returned, you need to put together the note, which includes the amortization schedule, what will go toward principal and interest each month, to the final month. Work with a title company to complete the transaction to make sure you are in compliance with your state’s laws. Record everything with your county recorder’s office and let them know that the property is deeded to them, along with the closing statement. They now own the house and you hold the $29,000 loan.

Say you’ve received a $1,000 down payment and you’re holding a note for the remaining $29,000 that they will be paying to you. If you only made an initial $5,000 investment in this property, the down payment will reduce that to $4,000. If you charge this buyer $399.48 for ten years, you will get back $4,793.76 that first year. This is already more than you initially invested in the property. The rest is pure profit!