So, let me ask you a question…are you interested in long term wealth? I’m not talking about some number like $1,000,000 or $10,000,000 or something like that. That is what most people consider long-term wealth. The question I am asking is if you are interested in having the type of wealth where the amount of money you have coming in every month exceeds your monthly expenses whether you work or not. This is my definition of true wealth…because it gives you FREEDOM. This is also called residual income. I am sure when you read that question you thought to yourself, Read more…

When taking on a real estate deal that you are flipping, which is the best way to go…pay cash, get a partner, or use hard money? Let me discuss the pros and cons of each and let you decide.   Cash: For those that have cash this can be a great way to go. It obviously limits your risk substantially due to the lack of ongoing interest payments that eat away at your profit. It also gives you options if you are not able to sell it for the price that you want and in the time that you want. Read more…

Are you using Zillow to comp your properties? STOP doing it! For those of you that have been a follower of mine for awhile, you already know how I feel about Zestimates. I have spoken often about the misuse of Zillow for property valuation and comping in my courses, coaching and pretty much to anyone who is willing to listen. Why am I so fanatical about NOT using Zillow and their Zestimate feature to comp properties? Well, the reason is quite simple…the value of a Zestimate is just flat WRONG. You see Zillow uses an algorithm, among other things that Read more…

Today I want to take a little detour from the normal real estate blog post that I write. Now, I am not saying that what I am about to discuss with you has nothing to do with real estate. In fact it is quite the contrary. However, I will need you to hang with me for a minute. In the last 15 years I have learned a lot about real estate. I’ve learned from the school of hard knocks. I have made lots of money and I have lost plenty too. I’ve become an expert in the areas of flipping, Read more…

What makes real estate so great? That’s a good question and one that has many answers. Real estate is tangible. Meaning, you can see it, touch it, feel it. This really differentiates it from other asset classes like stocks and bonds. Real estate is also broad and deep. What I mean is that there are numerous ways to invest in it. You can wholesale, fix and flip, hold rental properties, invest in commercial, buy notes, raw land, apartment complexes and multi family, deed of trust investing, tax liens, land leases, farm and timber land…just to name a few. Clearly there Read more…

Once again housing got more affordable in the last week. Let me explain. We all already know that mortgage rates are at historic lows, which has kept housing extremely affordable. Couple that with housing prices still remaining well below the peak high’s of 2006-2007. Now there is one more thing that we can add to the mix…reduced MIP (mortgage insurance premiums) on FHA mortgages. Last week, President Obama announced that the Federal Housing Administration would be slashing the MIP premiums on FHA loans. MIP is something that a homeowner must pay when they have less than 20% to put as Read more…

Great little houses (in many areas, 3 bedrooms or less, under 2,000 square feet) are frequently looked on by real estate investors as rental prospects. But when prospective renters (or homebuyers) come to look, uppermost in their minds is the question: “How can I fit my life into this small space?” What’s the magic of installing a few space-saving conveniences before showing your investment property to renters (or homebuyers)? From the new occupant’s viewpoint, your rental is that much more move-in ready because they don’t have to shop for and install these conveniences themselves, or pay for them out-of-pocket. For Read more…

What is holding back recent college graduates from buying homes? There are many current economic incentives for first-time home buyers: The economy, hiring and job stability is recovering. In many industries starting salaries for new graduates are at an all-time high. Interest rates are still low, helping homebuyers afford and qualify for loans. Particularly in the east, housing market prices are considered still somewhat under-valued by many experts. (This is not true on the west coast where prices may be over-valued.) Renting is currently more expensive than owning in almost every major market. But researchers are finding that today’s college Read more…

You’ve snagged a great purchase price on a classic late-1960’s home being vacated by aging owners who have lived there for 30 or 40 years. Before purchasing the property as a real estate investment, you were pleased to find that the owners took care of it throughout the years. The roof was replaced a few years ago, the walls, ceilings and floors are in good shape, and you’ll update the carpets and wall color. Overall, a good buy! Except for one teeny, tiny little issue … the practical-minded 1960’s builder generously doled out from two to four outlets in each Read more…

There is a new style of “post-foreclosure backlog”. Housing markets are recovering and the foreclosure crisis is now years behind us. So how is the past crisis still affecting markets and real estate investors? In many areas one of the most interesting question marks for the future are rentals. Although we are years into the recovery from the foreclosure crisis, rental markets in many areas remain larger than they have ever been. During the peak foreclosure years, approximately 2007-2009, rentals expanded sharply as many former homeowners lost their home, along with their equity and their mortgage qualification. Real estate investors Read more…