I’ve mentioned numerous times that I’ve found many real estate investing opportunities through direct mail. Of course I do a good deal of business through foreclosure auctions, and I search the classifieds to find fixer-uppers to buy. But I want to talk to you more about direct mail, what it is and how it works. Why should you add direct mail to your arsenal of real estate investment tools? You may be wondering – is direct mail the junk mail I find in my mailbox? The answer: Yup, that’s what it is. So why should you look into this? One Read more…

You’ve worked this rehab property into a beautiful home and have found a buyer at a price you both like. But the sale contract negotiation is not the final make-or-break point for closing this deal. If you’ve already been working closely with a general contractor on a great rehab, what’s left to worry about with the home inspection? Don’t expect any help from the home inspector to sell a great rehab.Home inspectors are not motivated to help the house sell. In fact, in states where they can be sued for problems found after the homebuyer moves in (and in areas Read more…

In Part 1, I describe how the Broker’s Price Opinion (BPO) is evaluated and submitted to the lender as part of the short sale process.We are assuming that in most cases the BPO has not taken full account of the property’s true physical condition. The BPO will undoubtedly reflect a broker/realtor’s wish to sell for as high a price as possible. What can you do at this point to correct an inflated BPO, so the lender will approve your purchase at the below-market price you need for a successful project as a flip, wholesale or rental investment? Since you’ve done Read more…

Let’s assume you used this rehab property’s significant foundation problems to knock down the purchase price, but are now re-figuring your costs and project plan. Maybe you either didn’t catch or underestimated some of the big issues and costs before purchasing. Or, perhaps you bought it with full knowledge of the foundation condition, but are thinking of wholesaling or otherwise disposing of the property without putting any work into it. What are the ramifications of listing for sale any property without first fixing the foundation issues? Disclosure. Obviously a bad foundation is a major item of required disclosure. Check on Read more…

This post is for investors who are still new to short sales, but who already have a brief introduction by reading my blog posts: How to Invest in Short Sales Short Sales Fundamentals The key that turns the lock on a short sale is the BPO, or Broker’s Price Opinion. Unfortunately, the initial BPO is often both unrealistic and too high for you to make this a successful project. As a flipper, rental investor or wholesaler, what should you do once an over-sized BPO is on the desk of the lender’s property evaluator? Lenders don’t order a full appraisal on Read more…

Foundation problems with a repair cost estimate in the thousands of dollars can drive an ordinary seller to phone an “I Buy Houses for Cash” number, hoping for a solution. But less-experienced investors can become just as caught by over-paying fora property with big “hidden” foundation problems. When you make your first walk-through, what red flags should have you hitting the speed-dial for your foundation experts, before you calculate a purchase price? This blog post is just an introduction covering a few of the most easily visible warning signs. Exterior o Stairstep cracks in the outer walls – a short Read more…