New Real Estate Investment Fund!

Real Estate investors Bob Malecki and Wendy Ceccherelli announce the formation of REI Capital, a $5 million real estate investment fund designed to capitalize on opportunities within the distressed real estate market locally and nationally. REI Capital was founded to leverage investment opportunities through the acquisition of value-added properties that produce positive cash flow and/or a substantial equity upside. 

Our team of industry experts offer a diverse array of abilities within the real estate sector. Co-founder Bob Malecki is experienced in acquisition, rehabilitation, lease, finance, and resale of residential and commercial real estate, and has established power teams in Memphis, Oklahoma City and the greater Seattle area to facilitate creative strategies to acquire real estate at below market rates for disposition of those properties for significant gains. Bob has also been involved in commercial advertising and marketing. 

Co-founder Wendy Ceccherelli  is a full-time real estate investor and designated broker with Home Land Investment Properties, Inc. She is experienced in both residential and commercial real estate transactions and property management. Previously she spent over 25 years as an executive in both private and government sectors, distributing almost $15 million in funding. 

REI Capital is advised by Jillian Sidoti, a securities attorney who specializes in transactional legal matters, and also spends time speaking at real estate seminars on how to raising capital for investment projects. She currently teaches Finance and Accounting for the BS and MBA programs at University of Redlands. 

The principals are key advisors in the Puget Sound area, providing educational and strategic advice to real estate investors. They are frequent speakers and guest lecturers on distressed real estate investing at professional symposiums. 

 REI Capital is dedicated to expanding knowledge and market returns, especially during this economic downturn. Visit us at www.reicapitalusa.com for more information and contact details.

More Good News in the Housing Market

This information comes from Guild Mortgage lender Steven Bighaus:

People indeed are astonished at how the housing market has started to recover and last week's data just kept the ball rolling. Builders are busier as housing starts are up 2.3% from July to August. They're now at a 750,000 annual rate, UP 24.5% over August 2011. Housing starts have been rising on an annual basis for the last 11 months and they're now UP 57% from their April 2009 bottom. No wonder builder confidence in September was up for the fifth month in a row, hitting its highest level since 2006.

August Existing Home Sales were up 7.8% over July, reaching a seasonally adjusted annual rate of 4.82 million units. These sales are UP 9.3% for the year, while the national median price for all housing types is UP 9.5% versus a year ago, at $187,400.The National Association of Realtors (NAR) is forecasting overall home sales should be up 8% to 10% for 2012. The inventory of existing homes for sale is currently down to a 6.1-month supply, a level thought to favor neither buyers nor sellers.

Out-of-State Investing in Oklahoma City

Many Seattle investors look to other housing markets where rental properties cash flow at a much greater amount than Seattle, and where the purchase price for multifamily acquisitions is much lower.

Oklahoma City is one such market, that I am targeting along with my business partner Bob Malecki as we develop our own real estate investment fund for capitalizing on such opportunities.

Follow this link to find out why we like OKC so much right now:

Why Invest in OKC?

Going (for) Broke

For almost thirty years, I worked as a government arts funder, executive director, and political appointee in four different municipalities, overseeing more than a dozen staff members and distributing millions of dollars in grant funds in highly visible and political positions.

 Investing in real estate is much harder.

 An investor never knows when she is going to get paid vs. my government jobs where I could count on a weekly paycheck, a dependable income, and could qualify for a mortgage. Money management becomes extremely critical for an entrepreneur, and being cautious, conservative and living as if you will not get paid for six months are essential skills.

 Investing can be a lonely business. Sure, you join investment associations and put together a team to help make deals happen, but compared to a political position in a large municipality, the number of people with whom I interact daily is greatly reduced. There are many hours spent working alone at my computer.

Most investors start out as sole entrepreneurs. There is not a big staff to help you deal with the details. Every decision is up to you, and everything that must be done (at least in the beginning) is done by you. Or it doesn’t get done. I sure miss my executive secretaries!

 Real estate investing is not perceived as glamorous. Until recently, investors ranked right up there with car dealers, scam artists or other “bottom feeders.” Slowly, the feds are beginning to recognize that investors are needed to purge the glut of foreclosed inventory, repair neglected or unsafe housing stock, and revitalize neighborhoods.

Quick cash goes both ways, up and down. And it goes quickly in either direction. Gurus tout the quick and easy windfalls, but mostly keep mum about the downturns. One “guru” I know bragged that in thirty years of investing, he had never lost money. This is not true. In fact, today he has lost virtually every piece of property he owned.

Ron LeGrand practically brags about having lost three million dollars in one day. I recently met with a local real estate developer who was over-leveraged when the market crashed (how many investors weren’t?), and lost all six condo conversions he was doing in prime downtown Seattle locations. His story was not even news; it was so common at the time.

Some of the most prominent local investors in our local REIA membership have lost millions of dollars as well and been close to bankruptcy. Perhaps more have actually filed for bankruptcy.

 I made more money as an investor than I made in my best-paid year as a government employee. For one year. The other years have not been so kind, and it has been a challenge to grow this business over time. Property-rich and cash-poor is a more common phenomenon among investors than the national speakers might have you believe.

And the risks, whether your own money or someone else’s, are always there. It can be quite stressful. I am always apprehensive when a new investor quits a good-paying job to become a full-time investor. Most are not prepared for the perils along the way.

This is certainly not to suggest that real estate investing is a bad thing. Just not easy. For all the challenges, there are the opportunities for rewards. BIG rewards. The greater the tolerance for risk, the greater the opportunity for rewards – and the bigger those rewards will be.

You will be your own boss and master of your own destiny.

There are many successful investors in Seattle. Learn from them. Education and experience will mitigate the risks.

Attitude and perseverance (along with good planning and a compelling “why”) will sustain an investor through the bad times.

Never, never, never give up is a good motto to adopt. Close the door to failure and excuse, and move on. Donald Trump has filed for bankruptcy four times – but he never quit. You decide how successful he has been in life….and make your own decisions wisely….

Tiny House

My boyfriend and I discovered this very adorable 8 X 18' tiny house at a farmer's market on Whidbey Island a couple of weeks ago. The builder has built a couple of homes like this, using recycled native Douglas fir and all green building materials. It has a loft bedroom, a tiny living room, kitchen with mini fridge and electric cookstove, propane heat, bathroom with shower. It retails for around $60,000. It was built on a trailer but could be put into place with a 4-pin foundation.

Apparently it qualifies as a park model trailer/mobile home. Cute!

FREE eBook for Investors this weekend!

My eBook entitled "Doing Your First Deal: A Series for the New Real Estate Investor" is available FREE this weekend from Amazon.com:
http://www.amazon.com/Doing-First-Estate-Investor-ebook/dp/B0085N86XM/ref=sr_1_1?s=books&ie=UTF8&qid=1347564311&sr=1-1&keywords=Doing+your+first+deal

You do not need a Kindle to read it, but may download a free app from Amazon to read it on your computer.

Check it out! (And please write a nice review when you are done reading)

Thanks for your interest!

Hiring The Right Home Improvement Louisiana Contractors

At some point, homeowners will require major renovation or improvement to the house. And for any home improvement or renovation projects, it is important that the right contractor is chosen to carry on the renovation works. This is to ensure that everything in the renovation plan is followed and carried out. Whether it’s a bathroom renovation or changing roof or construction of additional space or structures, an experienced contractor should be able to manage the renovation works professionally and without delay and unnecessary wastage.

Hiring the right renovation contractor from the many Louisiana contractors can be a difficult task especially if it is the first time you are undertaking such a task. But some people can help you. Ask for referrals from people you know. One of them must have done some home renovations in the past and know some contractors as well. You can check local directories or phone books. Online directories can also give you a list of contractors specializing in home improvements. You can check some names and make online research about their background and experience. 

You should look for Louisiana contractors that specialize on the type of renovation work you need for your home. If you are renovating the entire house and not just replacing wood floors or electrical wirings, you will have to find a general contractor. They will be in-charge of providing you with all the services you need for the renovation of your home. They will provide you with the electrical contractor, carpentry contractor, plumbing, etc., and make sure that all the components of home renovation are complied with according the working plans. Essentially, the general contractor will be your supervisor-on-site as they will be managing the daily activities on the construction site.

In order to be assured of the credibility and integrity of the contractor you wish to hire, it is important that you check their licenses, permits and insurance for validity. The contractors should be able to provide you with copies of the licenses, permits and insurance certificates. When all the documents are properly checked, request a written and detailed estimate of cost for the project. Their estimate should include details on specific materials to be used and construction methods used (if applicable) and estimated completion per phase or stage. The estimate or quote should also contain payment terms. There should be no lump-sum payment. Negotiate for payments to be made after completion of each construction stage. And allow for a retention fee that you will keep until a specified time. This retention fee should cover for incidental expenses or repairs that might crop up after the project is completed.
The last part of the process is signing the contract. But before any document is signed, have a lawyer browse through the terms of the contract to make sure there are protection clauses for both parties and not just for one. The contract or agreement should also clearly spell out the specific responsibilities of the contractor with respect to the implementation of the renovation plan. 

Happy Hour at the Investment Property

Busy! Busy! Busy!
Happy Labor Day Weekend to those of you who are not moving in or out of your new homes. For me, as an investor and property manager, there will be no holiday. I have tenants moving in, tenants moving out, housemates moving in, housemates moving out. It is a wonderful time of year!

Thanks to my friends and colleagues who came to my happy hour open house at my new investment property in Ballard last night - before the new tenants move in. And thanks to my contractors and investors who make it possible for me to do this! Moments like the one pictured to the left make it all the more special.