Realty Flipping Guide

In the Las Vegas market it’s pretty rare to find newer real estate developments without Home Owner’s Associations. Since Las Vegas, according to Mayor Oscar Goodman, is the epicenter for the foreclosure crisis, most foreclosed homes are in areas with HOAs. Since HOAs exist to maintain the quality of neighborhoods and foreclosed homes are routinely neglected, confrontation seems to be inevitable.
In addition to missed association dues, foreclosures commonly amass fines because violations go uncorrected. After the balance is uncollected for a period of time the delinquent account is turned over to a collection agency. That’s where the real problems begin.
Strong-Arm Tactics
In Nevada there is a law on the books regarding these past-due balances. The law places a limit on how much an association is allowed to collect from someone purchasing a home. The maximum amount is capped at nine months of monthly dues. So if the dues are $100/month, the […]

Original post by Richard Warren and software by Elliott Back

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“Jason I need your help!” That was the subject of a note, which my assistant Lisa sent to me. It was a note from a new investor I was helping out. And the note happened to contain a major concern of many investors, which shouldn’t be a concern at all.
So what did this person need help with?
Well, this person had submitted an offer to a seller via email. For one reason or another, the potential seller was not happy with the offer. The seller emailed this person back, basically saying, “I do not like this offer, this sounds like a scam, I’m reporting you to the authorities.”
Has this ever happened to you?
If not, it eventually will (if you want to be successful.) Let me explain. You see, often times our offers will offend people. We (investors) are making low-ball offers and some sellers are not going to appreciate them. But […]

Original post by Jason Hanson and software by Elliott Back

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Real Estate websites, or any website for that matter, can be very intimidating to someone who knows nothing about designing websites. It’s like another world with its own language. I mean that in the most literal way possible. When you hear web designers talking all that HTML, XML, Javascript, DIV mumbo jumbo, you might get overwhelmed and dimiss the neccessity of building your own real estate website.
If you’re not a web designer, then building a real estate website can be next to impossible. However, even if you didn’t know much about web design, there is still a special “Cheat Cheat” tool you can use to accomplish your website building goals.
I’ll be honest, when I first got started online, I didn’t know anything about building a website. After using this “Cheat Cheat” tool, I’ve been able to get sites up and even learn a thing or two about web design along the […]

Original post by J. Lamar Ferren and software by Elliott Back

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I did not lose my mind nor am I trying to sound like I’m talking in circles. Something called Complexity Theory is a known commodity and actually works. Hence, simplification through complexity. The below explanation of complexity theory was borrowed from an article at American Thinker.
That particular article deals with politics and our current president. After I read it, and in fact re-read it, the light bulb went off. To me, this explains our current real estate mess down to a gnat’s behind. In fact, in my opinion, it explains why we at the bottom keep getting buried when a big player at the top makes a move.
Complexity Theory
Complexity Theory deals with understanding the processes which are involved in the workings of highly complicated, interrelated systems in various areas: ecology, sociology, economics, computers and many other disciplines. To better understand the Complexity Theory, let’s examine a deceptively simple system: a […]

Original post by Tom Koziol and software by Elliott Back

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If you’re a real estate scavenger, who likes to buy foreclosure properties at a deep discount and “flip” them to retail home buyers, the FHA anti-flipping rule has always been a thorn in your side.  Come Monday, February 1, 2010,  HUD has agreed to suspend that prohibition for a period of 12 months.
123flip.com reports that there are certain guidelines which lenders are directed to follow:
1. All transactions must be arms-length, meaning that there must not appear to be any impropriety taking place between buyer and seller. This requirement also indicates that any prior flipping activity on the home in the previous 12 months may be a red flag to the lender.
2. In cases where the sale price exceeds the previous purchase price by more than 20%, the lender will be required to take extra steps to ensure the sale is legitimate. This includes a second appraisal and a full FHA […]

Original post by Brian Brady and software by Elliott Back

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I am a firm believer in the power and effectiveness of direct mail as a source of motivated seller leads. Frankly, I’m not as convinced that the ROI is as strong for identifying cash buyers with direct mail compared to other methods, but for motivated sellers? It rocks.
As I set things in motion for my upcoming direct mail campaign this week, I thought to myself “Direct mail is awesome, but what would I do if I didn’t have $300-400 per month available to spend on this and only had $100 per month?”
While some of you may be saying “I don’t even have $100 to do this each month and in fact I haven’t done a deal yet!”, I’d challenge you to figure out a way to get it.  Be creative. Eat out less. Get $1 DVDs from the kiosk instead of hitting up the movies a couple times a month. […]

Original post by Shae Bynes and software by Elliott Back

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I just got off the phone with the commercial lending VP at a small local bank.  This bank just survived its first Office of Thrift Supervision audit since the financial meltdown.  This audit took the better part of two months — all for a bank with less then $200 million in assets.
As I mentioned, they survived.  That means that the auditors accepted their loan products, their underwriting processes, loss mitigation methodologies, and their loan delinquency rates.  All-in-all… not a bad day at the office.
Except that the auditors were very concerned that this lender is one of a few in their market that is still catering to real estate investors and as such, were exposing themselves to ever increasing risk as fewer and fewer lenders were available.  Coupled with this is the pessimistic economic outlook promoted by the auditors over the next 3 – 5 years.  It ain’t pretty, and the regulators are […]

Original post by Peter Giardini and software by Elliott Back

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The other day I was meeting with a seller in Woodbridge, VA about a rental property, I was going to do a lease option on. The seller was very motivated because the property had been vacant for awhile and he was tired of bleeding cash.
Previously, I had talked to the seller on the phone several times. I had made my offer over the phone, it was accepted, and I was sitting at his kitchen table that day to sign all of the paperwork.
Everything was going as planned…
I was explaining all of the paperwork to him, he was nodding his head and when it came time to sign everything, he hesitated.
He then looked at me and said “I think I want a few more days to think about selling my place to you.” This is not the first time this has happened to me, but every time it does, it’s like […]

Original post by Jason Hanson and software by Elliott Back

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The date was May 20th, 2002 and was standing (mouth open in shock) inside my “newest” mobile home acquisition; a 1981 doublewide located in a clean mobile home park.  When I originally looked and agreed to buy the mobile home I did my own inspection.  Upon inspecting the home I only quickly walked thru and failed to remove large furniture or area rugs to look at the condition of the floor!  I was now the “not so proud” owner of a mobile home with more holes in the floor than a slice of swiss-cheese.  If I would have known about the holes I would have made them give me the home for free or paid me to buy it.  Instead I figured I just had a $2,100 lesson for this junky mobile home that would surely need more money, time and repairs
I had been only investing in real estate for […]

Original post by John Fedro and software by Elliott Back

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Someone once said figures don’t lie, but liars figure. I want to restate that a bit. Figures don’t lie, but self interests figure. I don’t know if the media is tired of writing about sales going down 16%, or some other number, or if the organizations with a vested interest in the real estate market are getting tired of crystal ball guesstimates, but I’ve noticed a surprising agreement among these wordsmiths.
To an entity they have all pushed their recovery estimate out from this spring to the 2nd or 3rd Q of 2011. Last year I made the bold prediction the recovery wouldn’t BEGIN to happen until 2013 when a new administration is in place. Nothing I’ve read so far has made me change my mind. Plus, as I read these authors, I see they are closing in on my guesstimate.
But, Can You Still Make Money
Given what I just wrote is […]

Original post by Tom Koziol and software by Elliott Back

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