If you are not yet familiar with the basics of short sales, first read my posts: How to Invest in Short Sales Short Sale Fundamentals Short sales are not for novices, unless you have experienced support backing you up. There is a world of details to master, paperwork to file and mistakes to make, as well as tricky negotiations with the homeowner and the lender. And, all of it while meeting a timeline to complete this deal before the property goes to auction. What makes short sales so difficult? Here are 4 common pitfalls that can doom a short sale Read more…

Short sales are a tricky path into discounted properties – but done properly, they may pay off in attractive profits for the real estate investor. Purchasing short sales requires fortitude and perseverance, but if you’re a flipper, you already have those in abundance! Why are short sales so complicated? A short sale occurs when a lender is foreclosing on an underwater property and elects to allow the homeowner to sell the property and settle the mortgage for a price that is less than the balance due. If a defaulting homeowner has a $100,000 mortgage balance, but the property is only Read more…

As a real estate investor rehabbing this property for resale, what are you going to do about that ugly, cracked and discolored driveway? You may be wondering “since it’s not caving in, can’t we just leave it alone?” How much difference does a driveway make to a fix & flip or rental investor project? Let’s consider, statistically, that a home with high curb appeal sells or rents faster. When a homebuyer, renter or realtor drives up to the property, a discolored, fractured driveway dominates their first view of the home. If the driveway looks great they won’t remember it, but Read more…

You’ve heard the stories – the real estate investor purchased the property at auction – only to find out that the homeowner filed for bankruptcy at the last minute in an attempt to keep their home. Oops! What now? Filing for bankruptcy can be a homeowner tactic to delay the foreclosure process and give them more time to try to save their home, or to at least stay in the home longer. But bankruptcy can be a complex process, with twists, turns and unexpected events. Can the property be taken away after you purchase it at auction?It’s a matter of Read more…

Done properly, real estate investing pays well – very well. It affords me a lifestyle of freedom from financial worries. But at the same time this business is hard work, and there is no fallback of a secure paycheck from an employer when things don’t go well. The deals can be big, and that means the worries and the risks are just as big. So what makes it all worth it? I’ve done some soul-searching in the last few years for a number of reasons, including business and family urgent crises, the wild swings in the economy, and some emotionally Read more…

When is a home warranty worth your consideration as a sales incentive for a fix & flip project? A home warranty is not the same thing as homeowner’s insurance. Homeowner’s insurance covers loss due to damage from fire, severe weather, theft, vandalism, accident and crime. But it doesn’t cover mechanical breakdowns of appliances and home systems that are not caused by any of the above factors. By contrast, home warranties are more like automobile warranties – they cover just the mechanical parts of the home in case of breakdown, for a given period of time (one to three years is Read more…

During the 2009 foreclosure crisis I was doing business in Phoenix (and other places). The scarcity of buyers in Phoenix was great for me as a real estate investor who was negotiating to purchase fix & flip project properties at my price and my closing date. Motivated sellers knew it could be a long time before another serious buyer appeared, so they were less inclined to push for more and risk my walking away. But for a flipper there was a downside to those same market conditions. When it was my turn to be the seller of the rehabbed property, Read more…

I will be giving you several posts guiding you toward successful counter offers – that is, counter offers that preserve your profit margin while closing the deal! This post is my brief overview of the basics of counter offers. What are some of the complexities you should understand? You may find negotiating counter offers to be annoying if you feel you did a great job on the rehab and your asking price is fair. But almost every homebuyer believes they should try to buy for less than the asking price, unless it is an unusual market! You would probably do Read more…