You may be negotiating the sale of your fix & flip property with a fussy homebuyer … or a contract with your rehab project partners … or what repairs are and aren’t included in the price from your contractor. What are some smart and effective ways to tilt the final decision in your favor? Never forget that, regardless of the number-crunching and the list of pros and cons, important decisions are made emotionally – even business decisions. Logical decision factors encourage confidence, a key decision-making emotion. What are some ways to help the other party feel comfortable with whatever you Read more…

You may be negotiating the sale of your fix & flip property with a fussy homebuyer … or a contract with your rehab project partners … or what repairs are and aren’t included in the price from your contractor. What are some smart and effective ways to tilt the final decision in your favor? Never forget that, regardless of the number-crunching and the list of pros and cons, important decisions are made emotionally – even business decisions. Logical decision factors encourage confidence, a key decision-making emotion. What are some ways to help the other party feel comfortable with whatever you Read more…

Partnership Contracts – Why You Need One I’ve participated in over 3,000 real estate investing deals, many with one or more partners. In fact, partnerships have been one of my most valuable tools for expanding my business and dramatically increasing my profits. With the right partner(s) I can do more business and better business, and both of us will make more money! I have not always used a contract – I’ll admit that up front! Many investors of integrity and common sense actually avoid using contracts, feeling they are overly complicated, expensive, time-consuming and restrictive. They may also believe that Read more…

I’ve participated in over 3,000 real estate investing deals, many with one or more partners. In fact, partnerships have been one of my most valuable tools for expanding my business and dramatically increasing my profits. With the right partner(s) I can do more business and better business, and both of us will make more money! I have not always used a contract – I’ll admit that up front! Many investors of integrity and common sense actually avoid using contracts, feeling they are overly complicated, expensive, time-consuming and restrictive. They may also believe that a contract isn’t worth much anyway unless Read more…

Good rental properties are an important part of a real estate investment portfolio that allows you to earn while you play, vacation and spend time with your family. But before you buy a rental investment property, what are 3 key financial moving targets that you wouldn’t normally review for a fix & flip? Property taxes. Don’t stop at checking the tax assess or record for both past and current yearly taxes. Also look up articles in the local press and find out what may be coming in the way of future increases. o A slightacross-the-board increase in the local property Read more…

Good rental properties are an important part of a real estate investment portfolio that allows you to earn while you play, vacation and spend time with your family. But before you buy a rental investment property, what are 3 key financial moving targets that you wouldn’t normally review for a fix & flip? Property taxes. Don’t stop at checking the tax assess or record for both past and current yearly taxes. Also look up articles in the local press and find out what may be coming in the way of future increases. o   A slightacross-the-board increase in the local property Read more…

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…

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…

Yep, I know that months ago I was explaining why stagnant markets and foreclosure markets were good for investors. Now here I am to tell you that rising markets are good for investors! As I point out again and again, real estate investors who follow my business model will thrive in any market – and here’s why today’s rebound will help us rise to ever greater profits! Rising home values increase lender confidence in doing more mortgage loans.It’s true that lenders have significantly tightened their requirements – and that’s a good thing to eliminate the toxic loans that ruined so Read more…

Instead of asking “How much do I have available to spend on the rehab?”, I ask “How much will it cost to bring this property to top-of-market?” I have the answer to that question BEFORE I decide my top price for a purchase offer or an auction bid.  Some flippers will purchase project properties based on a standard ARV formula, paying perhaps 60% to 65% (or less) of the ARV. They decide how much profit they want from the deal, and whatever is left is the “rehab budget”. They fix what they can afford to fix and then take it Read more…