Yesterday I celebrated yet another birthday, and like to think that I am making progress in my life, not just getting older. I believe that my pursuit of real estate is a new intellectual challenge that will lead to financial freedom down the road. And that I am continually challenging myself to learn and grow in this complex and many-faceted field.
This morning I heard a report on NPR that fully a third of all home sales in the first quarter of this year were foreclosure properties. I have yet to verify whether that is the case here in King County (I doubt it, although there are certainly more foreclosures now than in recent memory).
Buyers are bargain hunting in this economy, and who can blame them? Bargains are out there. Financial rewards will come to those who are not afraid to make a move now, and buy while prices are low, interest rates are low, and inventory is plentiful. Take your pick right now. I can send you a list of properties in Seattle priced under $300K, many in very desirable neighborhoods, most with great upside potential for buyers who are not afraid of a little sweat equity.
Those buyers who are not afraid of stepping in while others wait will be the ones ten years from now, smiling at their good fortune.
Life is full of risks. Risks and choices. We learn this as we grow older - and yet, so many people just stop growing. They become afraid to take risks. They grow old.
Me? I am still searching for that fountain of youth. I am trying to eat right (mostly), exercise daily, and stretch my mind. I am engaged in living. I am another year wiser.
And looking for partners who are interested in plunging into real estate with the same passion for future-building as I have. Please contact me if you are looking for ways to grow financially in real estate, and I'll send you my lists of great bargains and opportunity....
Wednesday, June 30, 2010
Monday, June 28, 2010
Mitigating Risk for Private lenders
In a recent blog I talked about opportunity for private lenders in today's economic climate:
Opportunity for private lenders who are looking for bigger returns on their investments than what they can get in the stock market, or with other investments. Why? Because many borrowers cannot find funds or credit to purchase a house, a home or an investment without it.
So how does one mitigate risk as a private lender?
Ask questions and keep informed. Do business with people you know and trust. Ask for references and referrals if you are working with a borrower for the first time. Look over any prospectus or financials they provide, and ask questions if you do not understand something. Look at track record and history. Ask for testimonials from other lenders. Ask to see their credit report, tax statements, or proof of funds.
What are they offering for collateral? What other liens are on that piece of collateral? Is it generating any income? Can you drive by and take a look at it? Will you be listed as co-insured on any insurance policy?
Make sure you have a written promissory note, and have your attorney or financial advisor review it. Make sure your warranty deed on the property is recorded in the county where the property is located. Ask for a copy of the insurance policy. Check to make sure that property taxes are being paid. Ask for a Title Report in order to verify that there are no other liens; or if there are, that your lien is not so far behind others that you would risk receiving nothing in the event of default.
A savvy borrower will anticipate these questions, and provide you with the information you need to feel comfortable lending money. Look for terms that work for you: interest rate, length of term, ability to call the note due, clauses that proscribe action in the event of default, etc.
It sounds like a lot of due diligence, but becomes easier as you become more familiar with the issues around private lending. Trust, but verify. Do your homework, and enjoy the passive income that your private dollars can generate!
Opportunity for private lenders who are looking for bigger returns on their investments than what they can get in the stock market, or with other investments. Why? Because many borrowers cannot find funds or credit to purchase a house, a home or an investment without it.
So how does one mitigate risk as a private lender?
Ask questions and keep informed. Do business with people you know and trust. Ask for references and referrals if you are working with a borrower for the first time. Look over any prospectus or financials they provide, and ask questions if you do not understand something. Look at track record and history. Ask for testimonials from other lenders. Ask to see their credit report, tax statements, or proof of funds.
What are they offering for collateral? What other liens are on that piece of collateral? Is it generating any income? Can you drive by and take a look at it? Will you be listed as co-insured on any insurance policy?
Make sure you have a written promissory note, and have your attorney or financial advisor review it. Make sure your warranty deed on the property is recorded in the county where the property is located. Ask for a copy of the insurance policy. Check to make sure that property taxes are being paid. Ask for a Title Report in order to verify that there are no other liens; or if there are, that your lien is not so far behind others that you would risk receiving nothing in the event of default.
A savvy borrower will anticipate these questions, and provide you with the information you need to feel comfortable lending money. Look for terms that work for you: interest rate, length of term, ability to call the note due, clauses that proscribe action in the event of default, etc.
It sounds like a lot of due diligence, but becomes easier as you become more familiar with the issues around private lending. Trust, but verify. Do your homework, and enjoy the passive income that your private dollars can generate!
Sunday, June 27, 2010
Sunday Tour of Bargain Homes (NE Seattle)
View up to six North Seattle homes on Sunday, June 27 priced from $249,000 - $330,000!
Our Sunday Tour of Bargain Homes is Very Different from a Traditional Open House
Our Sunday Tour of Bargain Homes is a quick and easy way to preview several homes in a couple of hours without any pressure or hassle.
Our Sunday Tour of Bargain Homes is a great way to get an overview of what homes and features are available in your price range in your favorite Seattle neighborhoods. Each tour features a different Seattle neighborhood. This week’s tour focuses on six homes in North Seattle. Our next tour will be in Ballard on July 11.
Here is how it works: The tour runs from 2-4 pm on Sunday, June 27, and you can meet us at any home on the tour. Feel free to drive by the homes before the scheduled tour times, but once the tour starts, don’t be late for the one(s) you want to preview. There will be lots of other buyers on the tour, and show times are exact. If you are interested in one of the homes on the tour, we can arrange a private showing at another time.
For a confirmed list of tour properties, maps, directions, and details, meet at 2 pm SHARP at 1059 NE 94th Street.
Below is the tentative schedule of showings on Sunday:
2 - 2:15 pm: 1059 NE 94th St $299,000 (stop here for map and directions)
2:25 - 2:40 pm: 1547 NE 95th St $330,000
2:45 - 3 pm: 1035 NE 96th St $285,000
3:15 - 3:30 pm: 858 NE 92nd St $310,000
3:45 - 4 pm: 8512 1st Ave NE $249,000
You will find the Sunday Tour of Bargain Homes to be much more convenient, efficient and productive than a traditional Open House! to be notified of future tours in Seattle, please contact me at homelandinvestment@gmail.com
Courtesy of Home Land Investment Properties, Inc.
Saturday, June 26, 2010
Seller Financing Risk and Mitigation
In my last blog, I talked about the opportunity that the current economic climate provides for sellers who have equity in their property:
Opportunity for lucky sellers, who are fortunate enough to offer financing in a world where credit is tight and lenders are running scared. These sellers will have a bigger pool of potential buyers and command a HIGHER PRICE for the sale of their home in LESS TIME than the same seller down the street who cannot offer owner financing.
Oh, sure! There are risks, as in any investment. What are they? and how might a seller mitigate the risk?
First of course, is to realize that as a seller providing financing, you ARE the bank. So think like a bank would in qualifying your borrower for a loan. Do they have a reliable and verifiable source of income? Do they have a history of good income? Have they been employed in the same field for a number of years? What is their credit history and credit score? Yes, you should ask for and verify a credit report! If credit score is low, you may want to charge a higher interest rate and/or get more of a down payment and/or shorten the term of the loan.
But, you ask, what if they stop making payments?
Make sure that you have handled the financing in a businesslike way and that you have a written agreement that should include a promissory note, and a warranty deed on the property that has been recorded with the County. Your loan is a lien against the property, just like a conventional mortgage. Your written agreement will include an understanding about what happens in the event of a default.
Washington State is a non-judicial foreclosure state, which means that a lender can foreclose on the collateral (the property) in the event of a default without having to go to court. This means that the entire foreclosure process happens much more quickly (typically in about 120 days) and at much less cost. If your borrower misses a payment, hire a real estate attorney and have them foreclose on the property.
What if they trash the property when they leave, after defaulting?
Make sure you get a sufficient down payment up front to cover this possibility. Damages to the property are grounds for a court judgment that might allow you to garnish wages or recover your expenses in the future. You might also offer your soon-to-be-evicted tenant/borrower a partial refund if they leave quietly and leave the house in good order. Then you get the house back, get to keep all the funds already paid, and do it again.
In my next blog, I will cover the risks and mitigation suggestions for a private lender.
Opportunity for lucky sellers, who are fortunate enough to offer financing in a world where credit is tight and lenders are running scared. These sellers will have a bigger pool of potential buyers and command a HIGHER PRICE for the sale of their home in LESS TIME than the same seller down the street who cannot offer owner financing.
Oh, sure! There are risks, as in any investment. What are they? and how might a seller mitigate the risk?
First of course, is to realize that as a seller providing financing, you ARE the bank. So think like a bank would in qualifying your borrower for a loan. Do they have a reliable and verifiable source of income? Do they have a history of good income? Have they been employed in the same field for a number of years? What is their credit history and credit score? Yes, you should ask for and verify a credit report! If credit score is low, you may want to charge a higher interest rate and/or get more of a down payment and/or shorten the term of the loan.
But, you ask, what if they stop making payments?
Make sure that you have handled the financing in a businesslike way and that you have a written agreement that should include a promissory note, and a warranty deed on the property that has been recorded with the County. Your loan is a lien against the property, just like a conventional mortgage. Your written agreement will include an understanding about what happens in the event of a default.
Washington State is a non-judicial foreclosure state, which means that a lender can foreclose on the collateral (the property) in the event of a default without having to go to court. This means that the entire foreclosure process happens much more quickly (typically in about 120 days) and at much less cost. If your borrower misses a payment, hire a real estate attorney and have them foreclose on the property.
What if they trash the property when they leave, after defaulting?
Make sure you get a sufficient down payment up front to cover this possibility. Damages to the property are grounds for a court judgment that might allow you to garnish wages or recover your expenses in the future. You might also offer your soon-to-be-evicted tenant/borrower a partial refund if they leave quietly and leave the house in good order. Then you get the house back, get to keep all the funds already paid, and do it again.
In my next blog, I will cover the risks and mitigation suggestions for a private lender.
Friday, June 25, 2010
What Does It Mean?
Since April 2009, there have been 1.15 million foreclosures. During that same time, 6.1 million American homes have been refinanced and 2.8 million have received a loan modification from either the HAMP or a private lender program. That means that there have been almost 3 times as many loan modifications as foreclosures in the last 13 months. Government leadership has led to a more comprehensive and lasting modification program than the earlier HAMP.
What do all of these trends in my previous blogs mean?
It means that there is OPPORTUNITY!
Opportunity for lucky sellers, who are fortunate enough to offer financing in a world where credit is tight and lenders are running scared. These sellers will have a bigger pool of potential buyers and command a HIGHER PRICE for the sale of their home in LESS TIME than the same seller down the street who cannot offer owner financing.
Opportunity for private lenders who are looking for bigger returns on their investments than what they can get in the stock market, or with other investments. Why? Because many borrowers cannot find funds or credit to purchase a house, a home or an investment without it.
Are there risks associated with these opportunities?
Of course there are! And would you like to know how to mitigate those risks, while taking advantage of the unique opportunities that exist today?
Then stay tuned for my next blog!
What do all of these trends in my previous blogs mean?
It means that there is OPPORTUNITY!
Opportunity for lucky sellers, who are fortunate enough to offer financing in a world where credit is tight and lenders are running scared. These sellers will have a bigger pool of potential buyers and command a HIGHER PRICE for the sale of their home in LESS TIME than the same seller down the street who cannot offer owner financing.
Opportunity for private lenders who are looking for bigger returns on their investments than what they can get in the stock market, or with other investments. Why? Because many borrowers cannot find funds or credit to purchase a house, a home or an investment without it.
Are there risks associated with these opportunities?
Of course there are! And would you like to know how to mitigate those risks, while taking advantage of the unique opportunities that exist today?
Then stay tuned for my next blog!
Thursday, June 24, 2010
Fannie Mae Cracks Down on Strategic Defaults
Fannie Mae announced this week that people who can make their payments and who do a strategic default will be forced to wait seven years before they are eligible for another Fannie Mae loan. It is estimated that there are 11 million homes acros America who are under water. A strategic default occurs where a mortgagee chooses to walk away from their mortgage, even though they are financially capable of making payments.
Fannie Mae is a private mortgage corporation that began as a government subsidized entity in the late 30s. Today Fannie Mae, along with Freddie Mac, are government-sponsored and together they are responsible for setting annual conforming loan limits, assuring that most Americans are able to finance a home. Fannie Mae lends to mortgage lenders which in turn extend mortgages to borrowers. They purchase loans from the private lenders who actually underwrite the loans.
It's a process called securitization, and by passing on the loans to the secondary market, banks have more capital on hand so they can lend even more. Fannie Mae and Freddie Mac control about 90 percent of the nation's secondary mortgage market.
Please re-read my previous two blogs, and let's talk in our next blog about what it all means....
Fannie Mae is a private mortgage corporation that began as a government subsidized entity in the late 30s. Today Fannie Mae, along with Freddie Mac, are government-sponsored and together they are responsible for setting annual conforming loan limits, assuring that most Americans are able to finance a home. Fannie Mae lends to mortgage lenders which in turn extend mortgages to borrowers. They purchase loans from the private lenders who actually underwrite the loans.
It's a process called securitization, and by passing on the loans to the secondary market, banks have more capital on hand so they can lend even more. Fannie Mae and Freddie Mac control about 90 percent of the nation's secondary mortgage market.
Please re-read my previous two blogs, and let's talk in our next blog about what it all means....
Wednesday, June 23, 2010
BIG Drop in Home Sales
A new government report shows that the number of home sales dropped nationally by almost 33% in May, the month following the expiration of the federal homebuyer tax credit program. This drop was greater than anticipated, and the largest drop since the government began compiling statistics in 1963.
Nationally, there is a supply of 8.5 months of inventory at the current sales rate, the government report said. The median sales price of new houses sold in May was $200,900, while the average sales price was $263,400 nationally.
On top of this, and despite the average 27% reduction in home values nationwide, new buyers are still finding homes unaffordable, according to a survey by the National Foundation for Credit Counseling. Their recent poll of over 2000 consumers found 49% of them believed it would difficult to save enough money to afford a down payment.
King County, on the other hand, saw a nice increase in both condominium and residential home sales from April to May. Single family home transactions actually increased from 1761 in April to 1844 transactions in May. Do not be surprised to see prices begin trending upwards again this summer in King County.
What we do know is that Washington state is no longer the most popular destination for families relocating, according to the 2009 U-Haul National Migration Report. Washington was #1 in 2008, with a 7 percent growth rate, but last year the rate slipped to below 2 percent.
Kentucky had the highest growth rate among larger states, followed by Florida and Georgia.
The U-Haul report ranked Houston as the top U.S. Destination City. Las Vegas moved from No. 4 to second place, followed by Chicago, San Antonio, Austin, Orlando, Atlanta, Sacramento, Kansas City and Denver.
All this news adds up to a still-sluggish summer selling season in Seattle, a continuation of the strong buyer's market for housing, and a longer time frame for economic recovery. Full of opportunity if you are looking to buy!
Nationally, there is a supply of 8.5 months of inventory at the current sales rate, the government report said. The median sales price of new houses sold in May was $200,900, while the average sales price was $263,400 nationally.
On top of this, and despite the average 27% reduction in home values nationwide, new buyers are still finding homes unaffordable, according to a survey by the National Foundation for Credit Counseling. Their recent poll of over 2000 consumers found 49% of them believed it would difficult to save enough money to afford a down payment.
King County, on the other hand, saw a nice increase in both condominium and residential home sales from April to May. Single family home transactions actually increased from 1761 in April to 1844 transactions in May. Do not be surprised to see prices begin trending upwards again this summer in King County.
What we do know is that Washington state is no longer the most popular destination for families relocating, according to the 2009 U-Haul National Migration Report. Washington was #1 in 2008, with a 7 percent growth rate, but last year the rate slipped to below 2 percent.
Kentucky had the highest growth rate among larger states, followed by Florida and Georgia.
The U-Haul report ranked Houston as the top U.S. Destination City. Las Vegas moved from No. 4 to second place, followed by Chicago, San Antonio, Austin, Orlando, Atlanta, Sacramento, Kansas City and Denver.
All this news adds up to a still-sluggish summer selling season in Seattle, a continuation of the strong buyer's market for housing, and a longer time frame for economic recovery. Full of opportunity if you are looking to buy!
Thursday, June 17, 2010
Private Lender 101
Are you interested in earning 2-3 times the best interest rate you can get from the bank or credit union on your discretionary cash? Are your retirement funds earning less than 8% interest? Are you looking for a higher return, but secured by collateral you understand?
Then think about becoming a private mortgage lender. A private lender is an individual who lends cash in exchange for a "mortgage" or lien on real estate, while earning anywhere from 8-15% or so annual interest. This method of financing real estate is more common than you might think, and there are plenty of savvy real estate investors looking for funds.
Do your due diligence, and it can be a relatively safe and easy process to generate higher cash returns.
Interested in becoming a private lender?
Here are some very good links to get you started:
http://www.youtube.com/watch?v=lX3dSaJ6u2M
http://www.reiclub.com/articles/offer-private-mortgage
http://www.privatemortgagesnetwork.com/
http://www.privatemoneymortgages.com/
http://www.freeprivatelenderinfo.com
If you have questions about where to get started as a private lender locally, please give me a call. I'd be happy to talk with you about opportunities for lending funds for real estate locally.
Then think about becoming a private mortgage lender. A private lender is an individual who lends cash in exchange for a "mortgage" or lien on real estate, while earning anywhere from 8-15% or so annual interest. This method of financing real estate is more common than you might think, and there are plenty of savvy real estate investors looking for funds.
Do your due diligence, and it can be a relatively safe and easy process to generate higher cash returns.
Interested in becoming a private lender?
Here are some very good links to get you started:
http://www.youtube.com/watch?v=lX3dSaJ6u2M
http://www.reiclub.com/articles/offer-private-mortgage
http://www.privatemortgagesnetwork.com/
http://www.privatemoneymortgages.com/
http://www.freeprivatelenderinfo.com
If you have questions about where to get started as a private lender locally, please give me a call. I'd be happy to talk with you about opportunities for lending funds for real estate locally.
Wednesday, June 9, 2010
9 Steps to Owning Your New Home!
I want to be your first choice in selecting your new home! More good tips from my website at www.homelandinvesting.com:
The 9 Steps to Home Ownership
Step - 1 Make the Decision to Buy
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. I'll preview these houses to eliminate the duds. Then, I'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, I'll let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house. When we do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
The 9 Steps to Home Ownership
Step - 1 Make the Decision to Buy
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. I'll preview these houses to eliminate the duds. Then, I'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, I'll let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house. When we do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Creative Financing
I am all over creative financing as the key to sell homes quickly, benefitting both buyers and sellers. In my May 16 post, I talked about the advantages of offering 100% seller financing. That is not always possible, but a seller may be able to offer partial financing. Here's why, from my website at www.homelandinvesting.com. These great tips on creative real estate financing explain the ins and outs of seller financing from both the seller and the buyer perspectives:
Creative Financing
Seller Financing
As the seller, you have the option of financing the buyer's purchase with the equity you have in the property. You can finance part or the entire mortgage for the buyer. Before setting-up a private mortgage, it is wise to consult with your attorney.
Carrying Back a Second Mortgage
In the case of "carrying back a second mortgage", the seller loans the buyer part of the seller's equity. In this scenario, the buyer would finance the majority of the loan with a traditional mortgage lender and finance the remaining amount with the seller. Typically the buyer would pay a slightly higher interest rate on the loan financed by the seller.
Financial Issues
The Purchase Price
The seller and buyer's mutually agreed upon purchase price for the property. As the seller, you should know up-front that the buyer would like you to finance the deal. Knowing that you will be financing the deal may affect your willingness to make adjustments to the sales price.
The Down Payment
The size of the down payment may affect the buyer's commitment to honoring the mortgage contract. The larger the down payment the buyer invests, the stronger his/her motivation to protect the investment. In addition to making the monthly payments, the buyer's commitment to the investment would include a willingness to maintain and upgrade the property, as well as make tax and insurance payments.
The Interest Rate
At a minimum, the interest rate you charge should match current interest rates traditional mortgage lenders are offering for loans of the same term. You may want to charge an additional percentage point as compensation for the work involved with servicing the loan.
The Buyer's Credit & Income
You'll want to review the buyer's credit history to determine the buyer's willingness to pay his/her debts. A credit report will give you a better understanding of the buyer's financial history. Red flags would include late payments and loan defaults. If a buyer has a less than commendable credit history, you may decide not to finance the loan or you may require a larger down payment. In addition to the buyer's credit history, you'll want to review the buyer's income sources. Is the buyer's salary sufficient to make the monthly payments? Does the buyer have additional income sources that could be accessed if the buyer lost his/her job?
Amortization
The amortization period is the length during which the loan is repaid. The longer the amortization, the longer you are at risk that the buyer will default on the loan.
Balloon Payment
A common practice is to have the full amount of the loan due on a certain date, usually in 5 to 10 years. As the lender, this gives you a profitable short-term investment with the provision that your principal investment will be recouped in just 5 to 10 years.
The buyer is usually in a better position to secure traditional financing after 5 to 10 years. Both the buyer's equity in the property and record of timely mortgage payments can help the buyer secure a loan to cover the balloon payment.
Escrow for Tax and Insurance
Lenders typically require borrowers to pay 1/12 of their annual taxes and insurance costs as an escrow payment due with each mortgage payment. Then, the lender makes the borrower's annual tax and insurance payment. While this adds time and hassle to the seller-financer, it also protects you from the unfortunate situation of having a buyer make his/her mortgage payments but not tax and/or insurance payments.
Lender's Title Insurance
A smart investment is a lender's title insurance policy. The policy protects your lien on the property from being defeated by a prior lien or other interest in the property, which, if exercised, would wipe out your security. Things that can affect your rights as the seller-financer include marriage, divorce, death, forgery, a judgment for money damages, a failure to pay state or federal taxes, and more. Be sure to include the cost for your lender's title insurance as one of the buyer's closing costs.
Closing the Sale
Both buyer and seller will be responsible for paying the usual closing costs. You will also want the buyer to pay all the costs associated with setting up the mortgage financing. This would include the cost of having your attorney create the mortgage note.
Creative Financing
Seller Financing
As the seller, you have the option of financing the buyer's purchase with the equity you have in the property. You can finance part or the entire mortgage for the buyer. Before setting-up a private mortgage, it is wise to consult with your attorney.
Carrying Back a Second Mortgage
In the case of "carrying back a second mortgage", the seller loans the buyer part of the seller's equity. In this scenario, the buyer would finance the majority of the loan with a traditional mortgage lender and finance the remaining amount with the seller. Typically the buyer would pay a slightly higher interest rate on the loan financed by the seller.
Financial Issues
The Purchase Price
The seller and buyer's mutually agreed upon purchase price for the property. As the seller, you should know up-front that the buyer would like you to finance the deal. Knowing that you will be financing the deal may affect your willingness to make adjustments to the sales price.
The Down Payment
The size of the down payment may affect the buyer's commitment to honoring the mortgage contract. The larger the down payment the buyer invests, the stronger his/her motivation to protect the investment. In addition to making the monthly payments, the buyer's commitment to the investment would include a willingness to maintain and upgrade the property, as well as make tax and insurance payments.
The Interest Rate
At a minimum, the interest rate you charge should match current interest rates traditional mortgage lenders are offering for loans of the same term. You may want to charge an additional percentage point as compensation for the work involved with servicing the loan.
The Buyer's Credit & Income
You'll want to review the buyer's credit history to determine the buyer's willingness to pay his/her debts. A credit report will give you a better understanding of the buyer's financial history. Red flags would include late payments and loan defaults. If a buyer has a less than commendable credit history, you may decide not to finance the loan or you may require a larger down payment. In addition to the buyer's credit history, you'll want to review the buyer's income sources. Is the buyer's salary sufficient to make the monthly payments? Does the buyer have additional income sources that could be accessed if the buyer lost his/her job?
Amortization
The amortization period is the length during which the loan is repaid. The longer the amortization, the longer you are at risk that the buyer will default on the loan.
Balloon Payment
A common practice is to have the full amount of the loan due on a certain date, usually in 5 to 10 years. As the lender, this gives you a profitable short-term investment with the provision that your principal investment will be recouped in just 5 to 10 years.
The buyer is usually in a better position to secure traditional financing after 5 to 10 years. Both the buyer's equity in the property and record of timely mortgage payments can help the buyer secure a loan to cover the balloon payment.
Escrow for Tax and Insurance
Lenders typically require borrowers to pay 1/12 of their annual taxes and insurance costs as an escrow payment due with each mortgage payment. Then, the lender makes the borrower's annual tax and insurance payment. While this adds time and hassle to the seller-financer, it also protects you from the unfortunate situation of having a buyer make his/her mortgage payments but not tax and/or insurance payments.
Lender's Title Insurance
A smart investment is a lender's title insurance policy. The policy protects your lien on the property from being defeated by a prior lien or other interest in the property, which, if exercised, would wipe out your security. Things that can affect your rights as the seller-financer include marriage, divorce, death, forgery, a judgment for money damages, a failure to pay state or federal taxes, and more. Be sure to include the cost for your lender's title insurance as one of the buyer's closing costs.
Closing the Sale
Both buyer and seller will be responsible for paying the usual closing costs. You will also want the buyer to pay all the costs associated with setting up the mortgage financing. This would include the cost of having your attorney create the mortgage note.
Why Homes Don't Sell
There are really just a few basic reasons why homes don't sell, and I've outlined them on my website at www.homelandinvesting.com:
Reasons why homes don’t sell
If you have had your home on the market for several months and haven’t seen much activity or any offers, chances are that one or more of the reasons below are to blame.
Your price is too high
No doubt about it, the most common reason for a home not selling is that the asking price has been set too high. The reasons for setting your price too high to begin with are many. Ranging from over enthusiastic listing agents to unrealistic seller expectations. Regardless of the reason though, if you’ve priced your home too high, you’ve set yourself up for a number of obstacles to selling your home. Even if you do get an offer for the overly high asking price, the deal may fall apart before closing because the buyer may have problems financing at too high a price. Look at other homes for sale, ones as similar and as close to yours as possible. If they are going for less than you are asking, you may be priced too high. The fact is, your home is competing against those other homes, and what buyers are willing to pay is what will determine final sales prices.
The condition of your home
There is a lot of competition out there to sell homes. Your home has to compete against other similar homes for sale, as well as competing against shiny brand new homes. The more you can do to make your home look appealing to a buyer, the better your chances for a quick sale. Look at your home with a critical eye – put yourself in the buyers position. A buyer doesn’t want to have to do anything except move in. Your best “bang for the buck” in improving the condition of your home are paint and flooring. Make sure that all of the paint is in great condition, both inside and out. Repainting doesn’t cost too much, and will usually make the biggest impact on buyers. Make sure all of the flooring looks good too. You may want to consider putting in new carpet. Again, it’s not that expensive but it sure does make an impact on buyers coming to look at your home.
Location, location, location
It’s the oldest cliché in the world, but it’s true. When it comes to real estate, it’s all about location! When it comes to homes, things like how good the schools are, crime rates, visual appeal of the neighborhood and noise or the smell of pollution can all effect how desirable the location is. If you’re in a bad location, a good real estate agent may help to minimize some of the impact by suggesting improvements to the house. But the only really reliable way to overcome a bad location is with a lower price. Simply put, an identical home in a bad location won’t sell for as much as the same home in a better location.
Your marketing campaign is out of steam
The best listing agents all use an aggressive marketing plan to market their listings. If your listing agent isn’t making sure your home can be found easily on the internet, isn’t actively touting his or her listings to other agents in the area, isn’t running ads in the local newspapers and real estate publications, then it might be time to change agents. The best agents might even run radio or television ads for their listings. If all your agent has done is put a sign in your front yard and add your home to the local MLS, then that agent isn’t coming close to doing all that can be done to effectively market your home.
The market is slow
You’ll hear it described as a slow market, or a buyers market, or maybe a cold market. But it all means the same thing. That home sales in the local area, or market, are slow. That there are too many homes for sale and not enough active buyers. There are several things you can do to combat a slow market. The most effective strategy is to sell at a lower price. Buyers are expecting to find bargains during a slow market. You can also help yourself by offering to pay some concessions to help a buyer that might not have a lot of cash. The ultimate way to beat a slow market is to simply wait it out. But that’s not always an option for many sellers.
Your home isn’t easily accessible
To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible. When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first. Many homes on the market have “lock boxes” on them. The lock box is a device which holds a key to the home, that only qualified local agents can access. Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”. If at all possible, you should let your agent put a lock box on your home for easier showing. If not, you should do anything else you can to make it as convenient as possible for agents to show your home.
You have an agent nobody likes
Sounds almost silly, but it’s very true. If your listing agent isn’t liked or respected by other agents in your area, it could slow down the sale of your home. When an agent prepares to show properties to prospective buyers, the agent begins by talking to the buyer to find out what kind of home they are looking for. Then the agent searches the local MLS and other sources for homes that fit the buyer. If there are a number of good matches to choose from, and one of them has been listed by an agent that is hard to get along with, or arrogant, or has otherwise made himself unpopular, well… It’s just human nature to tend to skip over someone you don’t like.
Reasons why homes don’t sell
If you have had your home on the market for several months and haven’t seen much activity or any offers, chances are that one or more of the reasons below are to blame.
Your price is too high
No doubt about it, the most common reason for a home not selling is that the asking price has been set too high. The reasons for setting your price too high to begin with are many. Ranging from over enthusiastic listing agents to unrealistic seller expectations. Regardless of the reason though, if you’ve priced your home too high, you’ve set yourself up for a number of obstacles to selling your home. Even if you do get an offer for the overly high asking price, the deal may fall apart before closing because the buyer may have problems financing at too high a price. Look at other homes for sale, ones as similar and as close to yours as possible. If they are going for less than you are asking, you may be priced too high. The fact is, your home is competing against those other homes, and what buyers are willing to pay is what will determine final sales prices.
The condition of your home
There is a lot of competition out there to sell homes. Your home has to compete against other similar homes for sale, as well as competing against shiny brand new homes. The more you can do to make your home look appealing to a buyer, the better your chances for a quick sale. Look at your home with a critical eye – put yourself in the buyers position. A buyer doesn’t want to have to do anything except move in. Your best “bang for the buck” in improving the condition of your home are paint and flooring. Make sure that all of the paint is in great condition, both inside and out. Repainting doesn’t cost too much, and will usually make the biggest impact on buyers. Make sure all of the flooring looks good too. You may want to consider putting in new carpet. Again, it’s not that expensive but it sure does make an impact on buyers coming to look at your home.
Location, location, location
It’s the oldest cliché in the world, but it’s true. When it comes to real estate, it’s all about location! When it comes to homes, things like how good the schools are, crime rates, visual appeal of the neighborhood and noise or the smell of pollution can all effect how desirable the location is. If you’re in a bad location, a good real estate agent may help to minimize some of the impact by suggesting improvements to the house. But the only really reliable way to overcome a bad location is with a lower price. Simply put, an identical home in a bad location won’t sell for as much as the same home in a better location.
Your marketing campaign is out of steam
The best listing agents all use an aggressive marketing plan to market their listings. If your listing agent isn’t making sure your home can be found easily on the internet, isn’t actively touting his or her listings to other agents in the area, isn’t running ads in the local newspapers and real estate publications, then it might be time to change agents. The best agents might even run radio or television ads for their listings. If all your agent has done is put a sign in your front yard and add your home to the local MLS, then that agent isn’t coming close to doing all that can be done to effectively market your home.
The market is slow
You’ll hear it described as a slow market, or a buyers market, or maybe a cold market. But it all means the same thing. That home sales in the local area, or market, are slow. That there are too many homes for sale and not enough active buyers. There are several things you can do to combat a slow market. The most effective strategy is to sell at a lower price. Buyers are expecting to find bargains during a slow market. You can also help yourself by offering to pay some concessions to help a buyer that might not have a lot of cash. The ultimate way to beat a slow market is to simply wait it out. But that’s not always an option for many sellers.
Your home isn’t easily accessible
To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible. When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first. Many homes on the market have “lock boxes” on them. The lock box is a device which holds a key to the home, that only qualified local agents can access. Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”. If at all possible, you should let your agent put a lock box on your home for easier showing. If not, you should do anything else you can to make it as convenient as possible for agents to show your home.
You have an agent nobody likes
Sounds almost silly, but it’s very true. If your listing agent isn’t liked or respected by other agents in your area, it could slow down the sale of your home. When an agent prepares to show properties to prospective buyers, the agent begins by talking to the buyer to find out what kind of home they are looking for. Then the agent searches the local MLS and other sources for homes that fit the buyer. If there are a number of good matches to choose from, and one of them has been listed by an agent that is hard to get along with, or arrogant, or has otherwise made himself unpopular, well… It’s just human nature to tend to skip over someone you don’t like.
Exceptional Property Management
Some of you may know that I manage both my own properties, and rental properties for clients, including the triplex at Alder Street and 31st Avenue in Seattle. Here is some good information about my property management services, posted on my website at www.homelandinvesting.com that you ought to know if you are looking for competent help in managing a rental:
Property Management
You need a company you can trust to handle your operational responsibilities. We have the experience you want in property management. We offer full service management of both commercial and residential properties. We have a dedicated team of professionals ready to help you maximize your profits without sacrificing on service. Here is just a small list of the services you can expect:
Rate Analysis - We will analyze the market and find the rental rates that will make you the most money
Lease Administration - Whether it’s billing and collection or tenant screening, we will handle it for you
Building Maintenance - We will make sure your properties are clean and operating efficiently at all times
Marketing - Our marketing strategies will keep your occupancy and tenant retention rates high
Vendor Negotiations - Let us find the reputable vendors you need to make sure your operation runs smoothly
Buying Fixer-Uppers
Looking for bargain properties? Here is another great piece of investor information from my website www.homelandinvesting.com:
Fixer-uppers
The oft heard phrase "Buyer Beware" is never more appropriate than when considering the purchase of a fixer-upper.You really need to know exactly what you’re getting into before buying.
It’s commonly believed that fixer-upper properties represent easy money that is ripe for the taking - that you can buy it, do a little work on it in your spare time, and then resell quickly for a large profit. Usually, this simply isn't the case. Although, with proper planning and foresight, good profits can be made by buying "distressed" properties at less than market value, making appropriate improvements and repairs, and then reselling. And for many first time buyers who intend to live in the house while working on it, buying a fixer-upper can be the very best option. It’s less risky buying a fixer-upper when you can live in the house while fixing it. And of course, by living in the house for at least 24 months you should be able to avoid paying regular income taxes on the profits.
The most important thing to know before making a decision on such a purchase is what needs to be fixed. Any time you are spending money on improving a home with the notion of selling it later, strive to spend your money on things that buyers can easily see. Things like new paint and removing trash from the property cost little but have instant impact on curb appeal. Houses that have only cosmetic problems like peeling paint, a trashy yard, bad carpet or wallpaper are the best bet. This is especially true for the first time buyer looking to live in the house for a while before reselling. Fixing and cleaning cosmetic issues is fairly easy and inexpensive. It virtually always gives gives a good return on investment, particularly when you can do the work yourself. Kitchen and bathroom remodeling usually pays a nice return. Don’t be afraid of buying a fixer-upper in need of this kind of repair. Properties with structural damage, or a floor plan that requires major work to remedy, usually can’t be "fixed up" at a profit.
Always have an inspection for hidden damage performed by a home inspector or construction professional before buying a fixer-upper. Make sure that satisfactory completion of such inspections are a condition of purchase in any contract you sign. Then be sure to negotiate to try and get the seller to pay for all or part of the cost of needed repairs uncovered by the inspection. Often, sellers will be willing to lower the sales price to sell the home "as is" instead of paying for the repairs.
Be careful that you don’t over pay. Especially if you plan to resell quickly, paying too much up front can doom your plans for quick profit. Research the market for reselling and have an exit plan for selling the house in place before making an offer.
If you are looking for fixer-uppers, please go to my website at www.HomeLandSeattle.com to sign up for a free list with photos of bargain properties.
Buying Bargains- Bank-Owned Property
I have several websites that may be of interest to the local real estate investor. Check out my website www.homelandinvesting.com for more investor information about buying bargain properties:
Buying bank owned properties
There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject. Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets, and to make money does require effort.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO’s may be exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.
Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a REO if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REO’s that are not good buys and not likely to turn a profit.
Ready to make an offer?
Most banks have a REO department that you’ll work with in buying a REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS. Before making your offer, you’ll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.
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Home Land Investment Properties, Inc.
Tuesday, June 8, 2010
Time to Downsize?
EMPTY NESTERS
Before you list your home for sale, order this Free Special Report that reveals how to sell your home for the most amount of money, and avoid making 9 common, costly mistakes.
www.HomeLandSeattle.com
Monday, June 7, 2010
Coaching Program
Since I returned from Los Angeles (and from an extended vacation for my daughter's wedding in Kauai), I have been listening to coaching group webinars and had my first coaching session with my new coach Joey Trombley. I have 30 days to try this coaching program risk-free, and I must admit that I am very impressed.
This coaching program is very thorough, very professional, and very complete. The amount of information to absorb, and to put into practice right now is a bit overwhelming. One of the great things about this program is that it takes things one step at a time. A website chock full of all the information is available, and a student like myself can go through much of it at my own pace. The live coaching calls help walk us through it all.
My first coaching call really just helped explain the system, and where to find information. It was not a waste of time, because there is so much there. In addition to the website tutorials, coaching webinars and coaching calls, I am expected to do homework and assignments in between. Not surprisingly, one of the first exercises I had to do was to complete a business profile, including my own visions for my business in the next 6 months, 12 months, 3-5 years, 10-15 years, etc.
I believe that this coaching program will not only help me be more successful in my own real estate business, but it will also help me be a better coach and mentor for the people who look to me for guidance.
While it is not inexpensive, it should pay for itself many times over, assuming I follow the directions I receive. I have been encouraged to hear how many successful people I know have included coaching in their education, including my fabulous mortgage broker, mentor and friend Carolyn Frame. So here I go! Keep checking on my blog to hear more about my progress.
This coaching program is very thorough, very professional, and very complete. The amount of information to absorb, and to put into practice right now is a bit overwhelming. One of the great things about this program is that it takes things one step at a time. A website chock full of all the information is available, and a student like myself can go through much of it at my own pace. The live coaching calls help walk us through it all.
My first coaching call really just helped explain the system, and where to find information. It was not a waste of time, because there is so much there. In addition to the website tutorials, coaching webinars and coaching calls, I am expected to do homework and assignments in between. Not surprisingly, one of the first exercises I had to do was to complete a business profile, including my own visions for my business in the next 6 months, 12 months, 3-5 years, 10-15 years, etc.
I believe that this coaching program will not only help me be more successful in my own real estate business, but it will also help me be a better coach and mentor for the people who look to me for guidance.
While it is not inexpensive, it should pay for itself many times over, assuming I follow the directions I receive. I have been encouraged to hear how many successful people I know have included coaching in their education, including my fabulous mortgage broker, mentor and friend Carolyn Frame. So here I go! Keep checking on my blog to hear more about my progress.
Saturday, June 5, 2010
Leap of Faith
Leap of Faith
Last month, I attended a Craig Proctor real estate Super Conference in Los Angeles. I had been reluctant to go, due to time and money constraints. Over the course of the past six years, I believed I had devoted enough time and money to my real estate education.
I had joined all the local real estate associations, studied with many national speakers, read every book I could find on real estate investment, worked for local real estate investor and national speaker Greg Pinneo for eight months as his personal assistant, got my real estate broker’s license, jumped into the game and started making deals. Some years were really good years financially, yet too many others were not. I had not found the consistency and discipline to provide a dependable income year after year. I knew I had to do something different.
That something different may very well be the education I got in Los Angeles – and that I will continue to receive in the coaching program for which I have signed on for the next 12 months. Here I have discovered the thorough system(s) of training and education that have been sorely lacking in both the real estate and real estate investing worlds. Here is the opportunity to learn systems, scripts, and marketing approaches that work, from one of the world’s top real estate practitioners. His testimonials come from students from around North America, many of whom are now coaches for his training program (while running their own thriving real estate businesses).
These successes are documented examples from agents who are the top producers in their cities, in their companies, and some worldwide. They are doing millions of dollars worth of transactions, many handling over 500 transactions per year, with business systems that allow them the freedom to work a business, and not a 24/7 job. They have both financial independence and the elusive freedom that comes from a business that operates whether they are physically present or not.
In the coaching program, I will have an opportunity to work with and to get to know these successful entrepreneurs – at a level that exceeds what has been available to me in the local community. And they will teach me how to do the same with my business, in what is basically a franchise approach to real estate using consistency, systems, and formulas that work. Others have invested time and money into developing these, so I do not need to reinvent the wheel.
Like the best of all successful models, this one is all about fundamentals. Fundamentals I should have learned when I began in this industry. Coaching is expensive, and it is a leap of faith to spend money in this economy. But our keynote speaker at the conference, Gary Keller - founder of Keller Williams Realty (the fastest growing real estate company in the country), urged us to invest in mentors/coaches, and lifelong learning. He continues to pay $250,000 per year to be coached by his mentor! As he says, the past is history, and the present is where I start. Today I will begin building the tomorrow that I want to have.
Stay tuned. I’ll keep you posted in this blog on my progress using this new system of real estate marketing and business development….
Last month, I attended a Craig Proctor real estate Super Conference in Los Angeles. I had been reluctant to go, due to time and money constraints. Over the course of the past six years, I believed I had devoted enough time and money to my real estate education.
I had joined all the local real estate associations, studied with many national speakers, read every book I could find on real estate investment, worked for local real estate investor and national speaker Greg Pinneo for eight months as his personal assistant, got my real estate broker’s license, jumped into the game and started making deals. Some years were really good years financially, yet too many others were not. I had not found the consistency and discipline to provide a dependable income year after year. I knew I had to do something different.
That something different may very well be the education I got in Los Angeles – and that I will continue to receive in the coaching program for which I have signed on for the next 12 months. Here I have discovered the thorough system(s) of training and education that have been sorely lacking in both the real estate and real estate investing worlds. Here is the opportunity to learn systems, scripts, and marketing approaches that work, from one of the world’s top real estate practitioners. His testimonials come from students from around North America, many of whom are now coaches for his training program (while running their own thriving real estate businesses).
These successes are documented examples from agents who are the top producers in their cities, in their companies, and some worldwide. They are doing millions of dollars worth of transactions, many handling over 500 transactions per year, with business systems that allow them the freedom to work a business, and not a 24/7 job. They have both financial independence and the elusive freedom that comes from a business that operates whether they are physically present or not.
In the coaching program, I will have an opportunity to work with and to get to know these successful entrepreneurs – at a level that exceeds what has been available to me in the local community. And they will teach me how to do the same with my business, in what is basically a franchise approach to real estate using consistency, systems, and formulas that work. Others have invested time and money into developing these, so I do not need to reinvent the wheel.
Like the best of all successful models, this one is all about fundamentals. Fundamentals I should have learned when I began in this industry. Coaching is expensive, and it is a leap of faith to spend money in this economy. But our keynote speaker at the conference, Gary Keller - founder of Keller Williams Realty (the fastest growing real estate company in the country), urged us to invest in mentors/coaches, and lifelong learning. He continues to pay $250,000 per year to be coached by his mentor! As he says, the past is history, and the present is where I start. Today I will begin building the tomorrow that I want to have.
Stay tuned. I’ll keep you posted in this blog on my progress using this new system of real estate marketing and business development….
Friday, June 4, 2010
New Website!
Check out my new website at
http://www.HomeLandSeattle.com
It is chock full of free reports and useful information for both buyers and sellers; you can sign up for free lists of foreclosures, distressed properties, fixers and other bargain properties as they become available; and get all kinds of great real estate tips from the monthly newsletter and other information I post on the site.
A great resource for anyone interested in Seattle real estate! (or just real estate, in general)
http://www.HomeLandSeattle.com
It is chock full of free reports and useful information for both buyers and sellers; you can sign up for free lists of foreclosures, distressed properties, fixers and other bargain properties as they become available; and get all kinds of great real estate tips from the monthly newsletter and other information I post on the site.
A great resource for anyone interested in Seattle real estate! (or just real estate, in general)