How To Avoid The Dangers Of Buying Real Estate Leads

Posted by JD Esajian

Buying real estate leads and contact lists has been a staple of the industry for many years. It is something that should be done continuously, just as with all marketing. Sometimes leads and lists are more popular and more expensive. There’s a good chance we’ll see more demand for real estate leads and marketing lists as the market continues to heat up. They can be helpful. They can save time from compiling lists manually, and can help fill in and keep deal flow consistent while agents, brokers, and investors ramp up other mediums. However, there are also some serious pitfalls with buying leads.

Contacts vs. Closings

There is a huge difference between lists of contacts and leads that are ready to take immediate action (and qualify). Leads and lists are not guaranteed deals. There are a ton of variables that determine if this gap is bridged, or not. This includes your marketing pieces and your methods. Real estate pros must factor in a realistic conversion ratio before spending. This can vary widely based on the list, type, or source of leads.

Bogus Leads

If you’ve bought a reasonable amount of real estate leads and names already, you’ll have seen the likes of Bart Simpson and Batman or imjustkidding@fakelead.com. Some of these are blatant and your real estate lead provider may reimburse you for them. Others are hard to spot. They could be a result of consumers putting in fake contact info, as not to be contacted. It can also be lead sellers filling up lists when they are short. Keep track of these.

Junk Data

The last few years have proven to be tough times for real estate lead companies. Many real estate agent, investors, and mortgage firms have just found it easier and more profitable to generate their own leads online. Nonetheless, lists of contact information have been plagued with inaccuracy. People have changed email accounts, millions have moved, and home phone services have been traded for ever changing mobile numbers. A great percentage of data being sold is just junk. If you are going to go down the road of buying lists, invest in higher quality, and fresher ones.

Increased Competition

The U.S. real estate and mortgage industry has been flooded with new players since 2008. The better the market gets, the more new Realtors, investors, and mortgage brokers we’ll see. All too often, everyone hits up the same people. Everyone wants to market to the juiciest targets in the most profitable areas. This makes it very tough to convert even the best quality leads. You either have to be the first to reach them, or far better than everyone else. One of the best hacks here is to go where others aren’t. Consider alternative lists and filters. Perhaps those based on interests and major occasions. Note that you can also target these leads via Facebook ads by yourself.

Bad Timing

Bad timing is one of the biggest real estate lead generation killers. Mailing to a list on the wrong day, calling at the wrong time, or emailing at the wrong hour can all completely trash the potential of any list. Direct mail is a great example of this. If you mail too broad and too general, it is hard to get timing right. If you get the timing wrong on a 5,000 piece mailing, you might see the entire campaign bomb. There may be some residual branding benefits, but if you want live leads now, you have to be precise.

The All-In Approach

Too many real estate investors, agents, and other related businesses bet everything on a single type of marketing. If buying online real estate leads or direct mail has been predictable and highly profitable for a few months, it is tempting to dump your entire month’s marketing budget on another campaign. However, while one campaign might turn in crazy high conversion rates, the next could completely fail. If you’ve got all your eggs in one basket, you are in trouble. If you don’t have any more marketing leads coming in, you can’t get any more deals. It’s a steep and rapid descent from there. Keep a well-rounded marketing mix, and never put more than you can afford to lose into a single campaign.

The Law

The law is tough on marketers that illegally obtain consumer information and contact people. Unfortunately, some lead companies will sell any data to anyone in order to make a sale. Make sure you are only using data you should be, and for the purposes you are allowed to.

Held Hostage

Those that only rely on purchasing leads will always be held at ransom by what sellers want to charge. That’s not a safe business practice. All real estate professionals and businesses should simultaneously be building their own presence so that they can generate their own leads for less.

The Most Important 20 Minutes of the Day

Entrepreneur and CultureIQ are searching for the top high-performing cultures to be featured on our annual list. Think your company has what it takes?

What are the most important moments of the day? The 20 minutes you commit to planning. 

You're thinking, Planning? Yuck.

I know for some people it's a dreaded word, but don't worry. I'm not talking about writing a business plan or setting annual goals. I'm simply talking about dedicating 20 minutes to prioritizing and organizing your day. 

The 20 minutes you spend today can save hours tomorrow and turn a good day into a great day. 

Everyone knows that the most valuable resource entrepreneurs have is time. So stop giving it away to people and spending it on activities you don't care about. People say if only there were more hours in the day, they could get everything done. But what about those two hours spent watching The Bachelor? Or that hour-long meeting with a vendor trying to sell you something that you know you aren't going to buy? Been there? I know I have. 

It's crucial that entrepreneurs protect their time like the Night's Watch guards the wall in the Game of Thrones. This means declining interesting opportunities. This means choosing one person over another to schedule that long meeting with. This means saying no without worrying about hurting someone's feelings. This means realizing that saying no today allows you to say yes tomorrow to something that means more.

My daily plan.

Today I completed my morning planning for the 504th time. It's a daily routine of mine that is now a programmed habit. I started this habit on Dec. 4, 2012, and I call it my "8 for the Day." The process is simple: 

1. I write down the eight goals I want to accomplish that day. I figure if I can’t get eight things done in an eight-hour day, then I’m doing the wrong things. 

2. Six of those goals are professional and two are personal. Personal goals include things like going for a run or having a date night with my wife. 

3. The next morning, I check off the goals I accomplished, see how I did, reassess and then create a new list for the day.

4. On Saturdays, I flip the ratio and set six personal goals and two professional goals, which may be as simple as paying the bills. This is an effort to encourage weekend fun and discourage weekend work.

On Sundays, there is no list making. I need time to rest and a day free of lists.

Committing 20 minutes a day (sometimes less) to setting daily goals and organizing priorities has been so beneficial to my work, personal life, and overall health and well-being. The "8 for the Day" exercise is something I created that works for me, but there are other great tactics for planning your day.

Tim Ferriss suggests writing three to five things down and then choosing one task to commit time to completing. Gina Trapani chooses her most important thing or MIT. Choose or create a system that works for you.

The point is not when you plan your day, just that you do it. I love to start my day with dedicated time to focus on and visualize how my day will unfold, and what I can do to make it successful. Others like to spend the last 20 minutes before they go to bed thinking about tomorrow and making a game plan. 

You choose your most important 20 minutes of your day. The question is, How will you spend them?

Boost Your Home Sales By Designing Your Clients’ Dream Homes

Posted by JD Esajian

Want to move homes faster and for more money?

Whether you want to rent or sell properties faster, for more money, or just boost your real estate brand, it can pay to deliver a good product. Not just a good product, but great housing that brings your clients’ dreams homes to life. So how do you accomplish this?

Trends, Misconceptions & Reality

Whether you are selling your own home, you are a Realtor moving properties for others, or you are selling your own investment properties, you want to maximize the sales price, and speed of implementation. This is increasingly becoming reliant on serving up a more personalized product.

This isn’t just true of the real estate industry, it is commerce in general. The more consumers are spoiled with personalized products, services, and gadgets, the more they expect that experience in everything they buy.

Far too many home sellers, real estate agents, and investors think that selling fast, and getting top dollar is all about the numbers. They attempt to achieve this through pricing strategy, justifying the numbers on paper, and sales pitches. In reality, this is rarely the winning factor. Obviously the numbers are relevant. If a buyer can only afford a $100,000 home, trying to pitch them a $1M property isn’t doing anyone any favors. Yet, the numbers frequently come second. Everyone wants to buy their dream home or rent their dream rental. Endless deals are lost, and countless buyers remain on the sidelines because of this gap.

Current Building and Design Trends

Everyone wants to buy or rent their dream home. So how can sellers better deliver on this?

• Smart home technology
• Green homes and building materials
• Sustainability
• Solar
• Rainwater harvesting
• Special signature focal features
• Designer label interior design
• Open floor plans
• Flexible indoor-outdoor spaces
• Multiple kitchen islands

Adding luxury features isn’t enough. It isn’t just about price, and it isn’t just about luxury or fashion. You’ve got to stay within budget limitations in order to see a profit. Remember, every property buyer is looking for something different.

You’ve Got to Get Your Buyers

Experienced real estate professionals know who their buyers are going to be before they buy. There may be some random exceptions to this, but most have (or should have) a pretty good idea of who is going to buy a property even before listing it. Hopefully even before buying it. You may not know exactly who, but you can design and market to match your ideal buyer profile. Some have even spec built or renovated properties for individual buyers. This was the case for an investor making over a home at 50 Charles Street in London, England for Gianna Versace.

You’ve got to know your buyers! Get to know the following:

• How old they are
• Have many kids they have, or not
• What they do for work
• What they do for fun
• Which social networks they use
• Which websites they frequent the most
• Which types of devices they are more likely to use
• How much they earn
• How much they have in the bank
• How is influencing their design tastes

A great example of this has been one of Lennar’s new communities. While the nation’s second largest builder is moving into the rental business due to finding a hard time selling new homes, they are still doing somethings right. One new community offering moderately priced homes offers green properties, with high tech houses including smartphone app controls and entries. The community offers a variety of features including shared fire pits, pools and a state of the art fitness center. The company’s new service line offers the ability to choose your own finishes and even have the property furnished. It rolls together many current trends, and may certainly appeal to many of today’s younger buyers.

Airbnb does this in another way. By providing short term stay options where digital nomads can experience living like locals, get onto Wi-Fi to do work on the go, book their next stay form mobile devices, and never have to worry about being tied down.

Getting the Message Out

Ultimately it still all comes down to getting the message out. You can have the best product in the world. But if your ideal home buyers don’t know about it, or don’t understand the perks, it won’t matter. It’s like having a cure for a disease but not being able to get it to those that need it. Or those that need it only associating you with having to have a needle stuck in their arm, and the long list of potential side effects.

You’ve got to reach them, and convey the features and benefits clearly. And if you make this concept a part of your real estate brand, and become known for it, it will be easier in the long run.

Solutions

Some Realtors, sellers, and investors may be cringing at the above. It sounds great. And we all know it makes sense. But it costs money to add more value and tailor real estate offerings. But there are many ways to do this more affordably. You can always adopt a minimalist style, or focus on lower end housing. Find more working capital and credit lines so you can get discounts on materials and buy in bulk when there are deals. There are also green stores popping up. And even free stuff in classified and on Craigslist which can be repurposed. What about home staging and virtual staging? How about pulling together third party concierge services? That doesn’t have to cost you a penny.

Get this right and your properties won’t just be nice. Or just more real estate eye candy. They’ll be the “have to have it” property. Show them how this property will boost their quality or life or income and wealth building potential, and the ticket price won’t be much of an obstacle.

3 Reasons Beginners Don’t Invest Out-of-State (& How to Overcome Them!)

BY ENGELO RUMORA

Buying out-of-state property or property in a different country can be very rewarding. Due to the fact that you’re not bound by your current location’s limitations, you have access to property in prime locations elsewhere. Prices could be in your favor, rental demand could be through the roof, or maybe you’re simply able to diversify your portfolio. In some cases, it can be as simple as owning a vacation home you can rent out to people when you’re not there.

Oftentimes, investors are motivated to buy out-of-state property simply because it’s more affordable. Perhaps you live in an area like New York City, Sydney or even London, where real estate prices are phenomenally high. In these areas, it’s hard enough to afford one property for most people, let alone two.

If you just can’t afford to buy something over there, it really makes sense to look at other locations. Here, property costs could be significantly lower. Initial cost might not be your main concern, though. In that case, investing in property out-of-state can give you a great boost in terms of ROI when you decide to rent the place out. I believe that I have already stressed enough in my previous blogs and posts on BiggerPockets that you should invest based on cash flow and not speculate on capital appreciation.

As lucrative as these investment opportunities are, people still hesitate to take the next step. And there’s a reason for that. Actually, there are a couple. If you are new to the field and you want to invest in out of state property or even property in a different country, you are likely to face a few challenges.

1. The Knowledge Gap

You don’t know everything, and that’s ok. But when you’re about to invest money, you’re kind of expecting to have at least some information to go by for making your decision. This is one of the most important reasons people hesitate when investing, and it’s even more so the case when you’re talking about investing outside of your state or country.

Even just thinking about investing in out-of-state property can make you feel really unsure of taking that potential next step. And why wouldn’t you? You’re just not familiar with the place. And when that’s the case, a thousand questions will be racing through your mind. After all, investing in real estate involves pretty large sums of money. You’re not aware of the local economic conditions, or you might not have the same in-depth understanding of that distant property market like you do of your current area. All you have to rely on are gut instincts, online research and word of mouth. There are no guarantees. That’ll make even the best of us uncertain.

But there are many potential opportunities in many different states or countries. So, the first thing to consider while investing is making sure that you establish trust and relationships with key people on the ground who will be your eyes and ears, heart and soul. I will touch on some of the key people needed to make it all work in more depth below. It’s also always a good idea to invest in an area where you might have relatives. It is easier to make decisions on investing in a location that has people you know living there, as they give you honest feedback. Even though this certainly isn’t a prerequisite, knowing someone in the neighborhood can certainly help.

If you want to invest in out-of-state property, you’ll also have to do some additional research with regard to its surroundings. For example, you should try to understand the nature of its economy. Ideally, you would want to invest in a location that is not solely driven by only one type of industry.

For example, a few years back, the housing market in Detroit collapsed all of a sudden. That was because Detroit’s economy was supported mainly by the car manufacturing industry, and once that collapsed, so did Detroit’s housing market.

If you’re looking to rent your property out, you’ll have to research for areas that have good infrastructure, which should provide an influx of rental demand.

2. The Legal Hurdle

Understanding the laws and regulations, like property taxes and rental laws, can form a real barrier, even for people that live there. When you’re not a local, things can seem even more daunting. Identifying all the rules and understanding them can be quite a challenge. That means it’s important to connect with local experts to help you through a potential purchase.

Since you’re most likely looking for a decent return-on-investment, you’re also looking for places that have a good rental rate versus purchase price. But keep in mind that not all the areas have the same tax rates. As a consequence, you should do some thorough research before deciding on a particular location. Property taxes and property management costs can contribute a substantial amount to your total expenses.

At the same time, you have to keep in mind that there’s more to legal issues than taxation. Depending on where you’re investing, you might have some very strict regulations regarding the amount of rent you can ask. In addition, it’s very possible that the local eviction laws are so strict you might have a hard time getting a bad tenant out of your property. You also have all kinds of security laws and health laws to take into consideration.

3. Getting The Right Team

This is your golden ticket.

Your team should consist of many different people, depending on what you’re looking for specifically. All these profiles have one purpose: to help you go from looking to invest in a property to owning and managing one. If you were looking to buy property in an area you know, you’d have no trouble, especially if you’ve invested in property before or have friends that have.

Going outside of your state, however, things become more difficult. There’s no one there to recommend you a potential good fit for your team, not even to tell you where to look. It is absolutely paramount that you work with people you can trust and who understand the area and know its pulse.

A Real Estate Agent

Having someone who actively looks for the best opportunities for you to invest in is key. You’re probably not investing full time, and you want to have the best deal possible, so a real estate agent is a good way to go. The difficult task of finding this person is pretty stressful, especially if you don’t know the area that well. Keep in mind, though, that you will never get the best of the best like a local investor would. Still, by finding the right real estate agent, you could do very well.

A Contractor

After you’ve found the perfect property to invest in, if you’re not buying turnkey, you’re probably going to want to make some changes to it. Odds are, you’ve found a property that’s a bit run down or just needs a bit of refreshing. I strongly suggest not buying a property needing major renovations.

If renting out is key, you will require someone to do a quick cosmetic makeover for you and when you’re investing in property that is out of your area, you’re probably not going to be able to supervise. Make sure you do more due diligence on the contractor himself than the work he can actually do. Too many times have I heard stories of contractors just taking the money and disappearing. Asking for references is going to be extremely important for your success.

Property Managers

Even when you invest in an out-of-state or country property and everything’s set and done, you won’t be there to look after it. You’ll probably require either a property manager or management company to take care of your property. They help you fill vacancies, collect rent and carry on repairs. They would also guard your property against any legal issues you might run into. This is a hard one, as many companies make the most money when they turn over your tenancy, so the reality is, they will never chase hard enough to keep your tenant staying and paying. Once again, trust and referrals will heavily come into play here.

You

Never mind how many people you have on your team. Unless you’re a seasoned investor, odds are, you’re going to be an important part of the entire process. You might be able to depend on your team for the knowledge they bring, but in the end, you’re going to have to manage everything.

What’s more, you should never settle for a property you didn’t get to inspect properly. It’s very possible that it’s not the same as shown over the internet or as described to you by your agent. Take time and plan a visit. Through our turnkey model, I always encourage every single one of our investors to visit us in person and check out what we do. When you’re there, you also have the perfect opportunity to talk to the neighbors and get some feedback on what it is like to live there.

During the life of the investment, you are going to want to have eyes on the property occasionally. You don’t have to be there all the time, but there’s no harm in doing some micro-managing — especially until enough time has gone passed and a decent amount of trust has been established.

Investing in an out-of-state takes more effort than investing nearby. But in the end, if you have the right people to work with, it’s not all that hard to do. There are many advantages of buying a piece of real estate that is located far from you, and there are certain challenges as well. But with thorough research and really leveraging your network, these challenges can be addressed.

And remember: “To lead an orchestra, you must turn your back on the crowd” — Aristotle

101 Benefits to Selling your property to an Investor

1. You get cash fast for the sale of your home
2. You can save thousands by avoiding realtor commissions
3. You can sell your home as-is, saving yourself thousands on repairs
4. We take the stress out of moving by not requiring you to clean up the property.
Just take what you want, and we’ll take care of the rest
5. Schedule closing for when it’s convenient for you, whether it’s 5 days or 6 months, we are willing to work on your time frame
6. Eliminate the headaches and stress in your life that may be caused by a property
7. We use an easy 1-2-3 approach
o Step 1 – take two minutes to contact us today or call with us with details at 757-738-5959
o Step 2 – come to an agreement
o Step 3 – collect your money at closing
8. We buy all types of property: residential, multi-family, commercial, lots, land and more. Contact us today at 757-738-5959
9. We handle all problem tenants, eliminating nightmare calls and any problems that come with land lording
10. Sell your home to us and you will no longer have expensive property taxes, utilities, mortgage payments, insurance payments, etc.
11. We can eliminate the home owner’s stress of liability, vandalism, and theft on properties
12. We can give you a no obligation offer within minutes, taking care of the waiting and wondering that occurs when selling your home on the market
13. We can customize the transaction to fit your needs, making the process as easy as possible for you
14. We have created hassle free sales to sellers for over 3 years, so you can feel at ease in placing your trust with us. Read about “Why Us”
15. We are a family owned business that will treat you like a person, not a number
16. We communicate directly with you, answering any questions you have
17. If you are in a financial bind, avoid potential late payments or foreclosure
18. You have our guarantee that you are never under any obligation to get more details or find out what our offer is to buy your home. Contact us today at 757-738-5959
19. We are known and trusted throughout the central Texas real estate community
20. We are members of the National Real Estate Investors Association and numerous Registered Investment Groups – all companies that adhere to the highest standards of ethical business practices
21. We protect your privacy and guarantee that all information is held in complete confidentiality
22. Unlike most buyers, we will not submit repair requests to you, therefore, allowing you to focus your time and energy on your move, not on the current state of your home
23. We can add convenience by buying multiple properties and portfolios at the same time
24. We can offer to buy non-real estate items that may help you settle an estate or move on with your life. Ex: furniture, vehicles, art, décor and more
25. Unlike many investors, we actually buy the property. Other investors often try to find an end investor to “flip” the property, which often causes a stop in the process of selling your home
26. We handle all of the work, allowing you to relax and simply collect your money once the deal has closed
27. We make reasonable offers in the attempt to cut out unnecessary expenses for you and create a complete win-win scenario. Contact us today at 757-738-5959
28. Unlike other retail buyers that may change their mind and decide to purchase a different home even after being under contract, we are 100% dedicated to closing the sale.
29. You are not required to be present at closing if you choose not to be, you have the convenient option of having your money wired or mailed
30. We Pay Referral Fees! Know someone that needs to sell fast? We pay as much as $1,000 cash and sometimes more if we purchase the property
31. We use standard Texas Real Estate Commission (TREC) contracts and adhere to the highest ethical standards
32. You wish to liquidate your property and transfer your equity to a less stressful or higher return investment alternative
33. We promise to return your call quickly, usually within the hour
34. We run our numbers prior to our offer, so we don’t have to back out of a contract last minute or without notice, therefore, offering you the highest assurance that your home will be sold. Contact us today at 757-738-5959
35. There are no financing contingencies that exist when using a realtor and a buyer’s conventional lender
36. There are no inspection contingencies that exist when using a realtor and a buyer’s conventional lender
37. Even if you elect not to sell your home, we may have some helpful ideas for you
38. You tried selling For Sale By Owner to avoid Realtor commissions, but were unsuccessful
39. You are in need of fast money whether it is to live, pay for college, to travel, pay for medical expenses, etc.
40. If necessary, you can stay in the house even after the closing, allowing you extra time to make plans
41. We will totally eliminate your need to bring the property up to current building codes
42. We can pay your closing cost fees, saving you thousands of dollars
43. We can customize the sale process based on your needs, making it as hassle-free as possible. Contact us today at 757-738-5959
44. We guarantee a quick home sale which will help alleviate some of the maintenance costs that arise while still living in your home
45. You would like as little problem disclosure, conversation and negotiation as possible while selling your home
46. We will buy, in some cases, when no one else will
47. You need to liquidate a trust and the properties within it
48. We can buy your promissory notes for cash
49. You have become the guardian to a loved one, and need to assist in selling their property hassle free
50. To make the probate process easier after the loss of a loved one
51. You will not have to worry about your listing expiring with a Realtor or their inability to sell the property within 6 months
52. We are not concerned with any extreme renovations: foundation, roof, walls, termites, plumbing, electric, framing, siding, windows, kitchens, HVAC, flooring…no problem. Contact us today at 757-738-5959
53. You are being forced to quickly relocate and are looking to sell your home fast
54. You want to take advantage of purchasing a different property using a 1031 exchange
55. We guarantee that we will never charge a fee to view or make an offer on your property
56. Real estate agents cannot guarantee that your home will be sold…we can
57. You don’t have to worry about the volatile economy or real estate market, we will still buy your home
58. We can help reduce the stress of a mortgage payment if you have recently become disabled or laid off
59. Your home has been on the market with a realtor for many months and your desire to sell has become more urgent. Sell today by calling 757-738-5959
60. You tried to refinance, but didn’t qualify
61. You are going through a divorce and need to sell your house
62. You have an adjustable rate loan that is about to skyrocket
63. You’ve been thinking about selling. An easy and fast home sale is your top priority. Contact us today at 757-738-5959
64. The kids have grown up and moved out and you are looking to downsize
65. As you get older, a large house becomes more difficult to care for
66. You need or would like to live closer to your family and, therefore, would like to move asap
67. Your neighborhood might have changed for the worse, economically, socially or physically. For example: a commercial strip mall is about to be built next door
68. Your kids are starting college and in order to fund tuition, you need to lower your mortgage payment fast
69. You deal directly with us and us only, leaving out the mess of appraisers, inspectors, lenders, unreasonable buyers and title companies.
70. You bought a house before yours sold and you are no longer able to make two mortgage payments while waiting for the old home to sell
71. You’re making payments on an empty house
72. You need to settle an estate as fast and easy as possible
73. The economy has left you unable to rent your house to tenants at a price that will cover mortgage payments, taxes and insurance
74. Your last tenants left the house in irreparable shape
75. You are simply too busy to deal with a real estate agent and their intensive home sale process
76. You are in jeopardy of having to file for bankruptcy
77. The house has lien or title problems which deter you from making an immediate sale. We can fix that for you so you can sell today
78. We are direct and honest, and know exactly what we can pay for your property so we will not waste your time. Call today at 757-738-5959
79. We won’t back out on the contract last minute. If we make you an offer, we will stick to it
80. We don’t have to be pre-qualified by a lender, removing the potential problem that arises when a buyer does not qualifying for the purchase of your home
81. Your house is too expensive to keep up with and you would like to avoid further deterioration that might occur during a lengthy home sale
82. Your house’s curb appeal is dated and unappealing to buyers, therefore it may sit on the market for much longer than you had anticipated
83. We are experts in evaluating the current costs in the housing market, plus repairs, and know exactly what your house is worth in its current condition
84. We do not put buyer “outs” in the contract that allows them to back out at anytime
85. With all of the new energy ordinances and rules, it may be too expensive to renovate your house up to an acceptable grade
86. If your house is older, it may not be as attractive to today’s buyers who are looking for more green living alternatives
87. You wish to simplify your own life by renting instead of owning
88. You’re moving to an assisted living facility
89. Many Realtors insist that you relocate your pets while the home is on the market (6 months?), potentially having to board them at $40/day. When we buy your property, your pets will always be with you where they belong
90. We can often help stop the foreclosure process as soon as a contract is in place
91. You were originally going to put your home on the market, but the pre-sale inspection revealed necessary renovations that are too costly
92. Your house has undesirable in design or function characteristics
93. You are skeptical of being taken advantage of by a real estate agent during the home sale process
94. You have children and/or pets and are unable to keep the house in a condition that is appealing and sellable to the usual prospective buyers
95. City code violations are becoming costly and you want to rid yourself of the problem as soon as possible
96. The city scheduled to demolish your condemned property
97. You are trying to move, but can’t buy a new home until your current property is sold
98. You are looking to retire and would like a much smaller mortgage payment
99. You do not want strangers in and out of your house at odd hours while trying to sell your home
100. You are looking for the most direct way to accomplish the sale of your house. Other Seller Benefits really make the most sense to you
101. We give you a cash offer, make it hassle free, close as fast as you like, and bring you peace of mind. Contact us today at 757-738-5959

Why Buying Ugly Houses Rocks

Posted by JD Esajian

Why is buying ugly houses such an attractive business model for real estate investors?

Investing in Real Estate

Why invest in real estate? Put simply; buying, renting, and selling real estate can put more money in your pocket in an hour, than most people make in a year. For some, this means simply gaining more income. For others, it is essential for bridging the gap between their paychecks and where they want to be financially. Then there are those that aspire to building mountains or wealth, or that have piles of cash they want to protect and grow.

What’s Wrong with Pretty Houses?

It’s an obvious, and fair question. Why would anyone prefer to buy an ugly house versus a brand new home? There are actually many significant reasons to choose existing over new homes:

• The high top of the market, or higher prices of new properties
• Hidden construction flaws which can render a new property worthless
• The emotional investing trap
• Lacking mature communities and established rental markets

New homes and condos aren’t always bad, and they look fabulous, but they are often overvalued. Sometimes problems can be underestimated as well. If you are looking for a profitable investment, going new may not be the best option. The allure of glamorous new properties can blind investors to making sound investment decisions based upon the numbers – especially when it comes time to sell.

The Appeal of Buying Ugly Houses

So what advantages do uglier houses offer real estate investors?

In a single word; value. It’s been known for years that the ugliest home in the neighborhood can often offer the most value. It might not look attractive on the outside, but the numbers can be far more appealing.

The uglier the house, the better the deal, at least sometimes. There are three main factors that make this true:

1. Appraisal Calculations: We all know home appraisals can be quirky. And this is one of the times where this really shows up. Property condition is a very small factor in the appraised value of a home. Few really understand this. Location, square feet of living area, and number of bedrooms really carry the weight here. Whether the lawn is mowed, the exterior needs to be painted, or whether the flooring is old stained carpet or gold plated tile really makes no difference. The appeal these factors have can make a difference to the ability to sell to the general public. And to how fast a property will sell, and how much the offers are that it will attract. So distressed properties offer discounts.

2. Ugly = Discounts: Properties that appear to be neglected and in distress are often showing symptoms of deeper distress. This may be a foreclosure situation, or something else. This often means the seller can be more highly motivated to cut a deal and sell fast. That builds in even deeper discounts. This isn’t about taking advantage of someone else in bad situation. Helping them get out of the debt and into a better living situation can be a huge help. And it takes money to fix up and hold a property. Plus the risks involved. There is value in that which earns a discount.

3. Ease of Adding Value: On the flip side of this; the above factors combine to make it easy to make money on these properties. Many ‘ugly’ homes simply suffer from cosmetic challenges. This makes it easy to add value and dollars with a little cosmetic makeover. This might simply be landscaping and exterior paint. In other cases it might mean updating windows, interior paint, new flooring, and updating layouts and bathrooms. Some may benefit from more dramatic rehabbing.

The Exceptions

Not every ugly house is a deal. Not all are offered or sold at discounts. The numbers don’t work on all of them, and there can often be bigger challenges and issues than many newer real estate investors expect.

When it comes to rehabbing a home; always expect it to cost more than you expect. And budget for that. All it takes it to open a wall and discover that you need to replace the entire electrical system or plumbing and the costs can shoot up dramatically. If you aren’t financially prepared you could be the next distressed seller of the property. Some really ugly homes (and even pretty ones) can have structural issues. This can include roofs, foundations, pest infestations and more. Most real estate investors run from these issues due to the high cash costs to fix them. Others find that this means they offer the most value. But there can be issues which can exceed the purchase price of the property. May be it has been condemned, or illegal use issues have racked up hundreds of thousands in code violations. If you are buying an ugly home for $6,000 and the land alone is worth $100,000, then tearing it down shouldn’t be an issue. The same works if the numbers are in the millions. But if you were planning to rent out the home, or can’t afford the tens of thousands it costs to tear down a home, and the time it takes, this could be a deal killer. Maybe you should consider wholesaling, or ‘prehabbing’ instead.

You also need to know the neighborhood. What do the surrounding houses look like? What are crime rates like? What are rents, really? What about discounts being offered on other homes? For example; are there lots of foreclosures? Are some homes being sold at 50% off to key workers, etc.?

Uncle Sam wants YOUR home: Government to liquidate foreclosed to corporate pigs

Story by Roger Arnold 

Government in real estate business by selling foreclosed homes to private corporate investors

(RealMoney) — The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates.

On Wednesday, the Federal Housing Finance Agency (FHFA), the Department of Housing and Urban Development (HUD) and the U.S. Treasury Department issued a Request for Information (RFI) concerning the disposition of the inventory of foreclosed homes owned by the federal government.

An RFI is ostensibly a way for the federal government to get input from the private sector on how to accomplish the goals laid out in the request. But that’s really just a facade, as the RFI was structured by the investors to begin with.

In reality, the RFI is a way for the members of Congress to find out if they can get away with bulk-selling these homes to private companies without incurring the wrath of their constituents, taxpayers and former owners of the properties.

Assuming taxpayers don’t push back, the next step will be to issue a Request for Proposals (RFP). The RFP will be the bid and plan for these homes by investors.

The way to keep taxpayers from pushing back is to structure the RFI so that the real intention, the bulk sales, is masked by feel-good goals, such as stabilizing neighborhoods and increasing the supply of rental properties.

As intended, the mass media are playing their part in classic style. Every major newspaper in the U.S. has run articles discussing the plan as a rental conversion, allowing readers to assume that Fannie, Freddie and HUD will be renting the properties directly to families who need housing. And although there is an allowance for these kinds of rentals, it is a minor political facade to the obvious true goal of bulk-sale privatization of these homes.

The investors in this program have been waiting for this opportunity since the portfolio of homes owned by HUD began to spike in 2007, when foreclosures surged first in the “Rust Belt,” principally Ohio and Michigan.

Since then, of course, the systemic collapse of housing has engulfed all of the major urban coastal regions of the U.S., as well as Phoenix and Las Vegas, and caused the homes owned by Fannie Mae and Freddie Mac, which are now under the direct control of the U.S. Treasury Department, to spike as well.

Even before this crisis occurred, HUD, i.e. the U.S. government, was the largest improved real estate owner in the world, because of its portfolio of foreclosed homes, which is classified as “real estate owned” (REO). The entire massive HUD REO Portfolio is quietly managed by a handful of private firms already, a group listed as Management and Marketing Contractors.

These M&M companies are principally owned by and employ former high-ranking government officials from the various germane agencies — the Treasury, HUD, FHA and others. And they will provide the necessary access to the current government employees who are tasked with bringing this program to fruition. Once the privatization is complete, those government employees will move from their positions, and many will take up new employment at one of the M&Ms or the new vulture funds.

I am not currently aware of any way for retail investors to participate in this process.

It is probable, however, that once the privatization has occurred and the properties are generating rental income for the investors, the initial investors will cash out by forming real estate investment trusts (REITs), real estate operating companies (REOCs) or limited partnerships (LPs) that will be made available to retail investors.

How To Beat Being Priced Out Of Renting In Your Area

Posted by JD Esajian

Affordable housing is becoming a major issue in many American cities. Many residents and key workers are simply being priced out of the cities they have lived in for years, and where their kids have been growing up. So if you feel like you are being priced out of town, what can you do about it?

America’s Affordable Housing Crisis

While we technically still have a long way to go to return to previous real estate highs, many are complaining about a lack of affordable housing. Earnings just haven’t kept pace with rent and home price growth. Even if minimum wage workers win the battle for $15 an hour, they’ll barely be making 30% to 50% of what they need to afford the median priced apartment in many cities. According to statistics from Zillow, you’d need to make over $416,000 to afford the average apartment in the most desirable part of the country. Within the next 12 months, most renters will be up for lease renewal. And they aren’t going to like the new numbers.

So what can renters do to avoid being priced out of their cities, or out of housing altogether?

Why Outrageous Rents Aren’t A Big Deal Anymore?

Sky high rents in areas like San Francisco, CA have many worried that key workers simply can’t afford to live nearby. An area that lacks good teachers, emergency workers, and law enforcement could be headed toward some of these issues. However, with over half of individuals now expected to be working remotely, the dynamics are changing. This is causing a glitch in employment figures. But it also means that individuals are free to move anywhere. At least where there is decent internet service. Instead of a stampede to dense urban areas with overpriced micro-apartments, many could choose to move outward to the burbs and rural areas. Here, housing costs are dramatically lower. Yet, the same incomes can be achieved as if working in San Francisco or New York.

Of course, not everyone wants leave their home city. Not everyone wants to move far from the best healthcare, their family, or take their kids out of their schools and away from their friends. So what are the other options?

Airbnb It

One way to offset higher rents and home prices is to rent out a part of your property. Even renters can do this if they get permission from their landlords. Rent a room, or two, and bring in enough income to combat higher rent.

Build It

Building a home may even be a less expensive option for some. Shipping container homes, tiny homes, and manufactured homes have all been trending. Not all are less expensive options, but some can be. And of course, not everyone wants to live in these alternative housing options. However, for some, they could mean eliminating housing costs far earlier. If you are paying $1,000 in rent now, a $24,000 manufactured home would mean you could be rent and mortgage free for life in just 24 months.

Buy Now Before It’s Too Late

Unless you realistically expect your income to rise dramatically and outpace housing costs, this is the time to buy a home. Interest rates are great, and they are only going up. Rates make much more of a difference to the real cost of buying a home than asking prices. So while you might have to pay $10,000 or $20,000 more for the same home today versus last year, this is still the cheapest it is going to get. In many areas, buying is even far cheaper than renting today. And when you consider how tough many rental applications and screening processes have become, it is even easier to qualify to buy a house than to rent one. Even if you pay the same amount in mortgage payments as you were in rent, at least you are gaining equity, and you’ll only have those payments for 15 to 30 years, until your mortgage is paid off. That sure beats a lifetime of rising rent payments.

Note: if you can’t afford to buy where you really want to live, you can buy and rent a property out for a profit. Then use the cash flow to pay your rent where you really want to be.

Key workers can also find many deals. Some foreclosure auctions offer up to 50% discounts to law enforcement, teachers, and EMTs. Real estate wholesalers can be a great resource for everyone looking for discounts on houses and condos.

However, once you buy a home and solve your own affordable housing crisis don’t forget to help someone else. A huge part of the problem is just accessing the right information. Too few people are aware of their options, or of how easy buying a home really is today.