Brandon's Blog

Flipping Homes while Under Contract ? Boo - Yah baby.

Brandon Yeager — Thu, 29 Oct 2009 13:57:13 -0700

So, doing some surfing this afternoon.

Placed my response to the PAR excerpt for all to read.

Equitable Interest

What do you think ?

Brandon

Locating the Owner's of Vacant Properties

Brandon Yeager — Sun, 16 Aug 2009 20:39:08 -0700

Watch for a new guidebook to be available tomorrow. Making some updates to it. Will also be adding the nonperforming notes and researching titles products within the week to the My Products page.

But, before you run off and buy it...I suggest holding. Once I have the NPN and Title Search products available...I'm going to make a bundle available for all of them as well, at a discount.

Yep. I've been busy, but it's all to provide tools for your real estate investing toolbelt. I'll be back to making more videos soon also.

Speaking of videos: I made a new one for the buyownwerfinancedhomes.com site on the intro page. The other one with the webcam...Yuck. I never realized how bad it was until I received the new flip camcorder. More on that in a day or so also.

New Flip Camcorder in...Look out!

Brandon Yeager — Tue, 11 Aug 2009 06:19:33 -0700

Ready for some videos ? look out...in an effort to provide the best real estate investing blog on the net...I'm going live! :) here is sort of my first real video with it:

Anyway...it was a short video about my other site. Will post some more on the camcorder soon so others can get one also.

Westmoreland Investors Group August 2009 Meeting

Brandon Yeager — Tue, 11 Aug 2009 06:14:30 -0700

Our meeting last night...

It rocked. It was awesome having so much feedback from everyone and to discuss where we are at in the real estate investing market here in SW PA.

FYI...For anybody interested in Pennsylvania Real Estate Investing...I'll be adding links/sharing info, etc under the PA REI tab in the future. Feel free to check back and see if there have been updates, or better yet....subscribe to the RSS feed at the top right of the page and receive autoamted updates when items change on this blog. Or...subscribe via email and I'll do my best to keep you up to speed on occurences.

Join here:

http:///www.cashflowdotcom.com/

Brandon

Anyway...WIG meeting was great last night. Thanks to everyone who attended.

How to Research Titles To Properties to Buy Homes Owner Financed

Brandon Yeager — Tue, 04 Aug 2009 19:22:39 -0700

Ok, So, I finally put my first Youtube video up on line. Yeah, I know...it's about time. But get ready, because they will be coming fast and furious. :)

What does your Neighbor Owe VIDEO

Anyway, it's about 2 properties I research to see whether the owner's are good candidates for buying their home with Owner Financing. You'll enjoy.

PS...if you like that, I have a whole course within a course that teaches how to research titles to properties, and then how to buy owner financed homes.

Till next time,

Brandon

Niche Blueprint - Profit Through Real Estate Niches

Brandon Yeager — Mon, 22 Dec 2008 08:31:24 -0800

Are you a real estate agent ?Home Inspector? Our bricks and mortar businesses are great. However, to truly move ahead against your competition, and to generate online profits that will work for you for years to come...you really need to get into internet marketing...some way, some how. Even if it's just to supplement you through down real estate times. January 12-19th a new product is being launched will be changing lives. The product is:

Niche Blueprint

Read my Full Review of the Product Here:
http://www.squidoo.com/review-niche-blueprint
You could use this product in so many ways JUST in the Real Estate Industry. I plan on it...will you ? Let's face it...if these guys can make $170,000 on bird cages, shouldn't you be able to make more in the real estate world ?

Short Sale Course Review - Best bang for your buck.

Brandon Yeager — Fri, 28 Nov 2008 11:51:48 -0800

I'm asked many times what is a good short sale course for people to learn the ins and outs of how to complete a short sale transaction.

Yes, you can choose to buy one for $700 and up...however...I simply can't recommend you do that.

You can read my full review over at the following lens, but Jarad puts out a great product at a great price.

http://www.squidoo.com/realestateshortsalecourse

oh , yeah...i'm one of those people who have paid over $700 for a short sale course. Was it worth it? yeah, i've more than made my money back, but in hindsight...if i would have known then what I know know, I would have done some more investigation.

Happy Short Sales!

Brandon

Squashing Myths of Buying Owner Financed (AKA Seller Financed or Owner Carry) Homes

Brandon Yeager — Tue, 04 Nov 2008 14:19:28 -0800

Owner financing has been around since the beginning of time. It's perturbing to me to see and read articles where people who supposedly are professionals, knowledgeable insiders, etc provide their expert opinions on a subject they apparently do not know a lot about.

This blog post is going to discuss 3 prevalent myths that circulate in the owner financing arena. The 3 myths are: owner financed homes will carry a higher interest rate, owner financed homes are hard to find, and lastly, only sellers who are in difficult situations choose to owner finance properties.

First Myth Squashed: While it may be true that owner financed homes may carry a higher interest than what a typical lender can offer for a loan, this does not have to be the case, and in all of my personal buying experiences, has not been the case. The terms of the loan including, but not limited to, the interest rate, amortization period (if any), balloon payment date, interest only or principal plus interest payments, etc are all completely negotiable between the buyer and the seller. There are typically no rules and both parties are completely free to do what they would like.

Second Myth Squashed: Again, while is may be true that an owner financed home is harder to fine than a home with a real estate sign stuck in the yard, it is not impossible. I can guarantee you that the main reason most people never buy a home owner financed is because they have simply never asked. What we have is ignorant people making ignorant claims to puff their chests and beat on them, yet they have never done it. I will however be the first to tell you that most owner financed homes are not advertised (though many are). Most owner financed deals are hand crafted between two parties.

Third Myth Squashed: The reasoning that only sellers in dire straits, or difficult financial situations choose to owner finance properties is completely incredible. I guarantee there are millions of people in this country who would love to sell their homes and be receiving a steady, consistent 5% monthly interest payment, while watching their principal be solidly protected by a piece of residential real estate. Dozens of millions of stock market investors have witnessed their principal be reduced by 1/3 over the past 12 months. Their interest and dividend payments are far from consistent, and nothing is guaranteed. Just to have the piece of mind of that stead monthly income stream is highly desirable to many people.

In summary, removing the myths that run rampant regarding owner financing is the first step in identifying potential prospects. Once you eliminate the doubts and stop making decisions for people, can you begin to see the unlimited potential of this market.

For more information on buying homes owner financed, please visit:

http://www.mindofaninvestor.com/Owner_Financing.html

Real Estate Agent Gold: Owner Financed (AKA Seller Financed or Owner Carry) Homes

Brandon Yeager — Tue, 04 Nov 2008 14:15:31 -0800

For the real estate agent, broker, or professional, who understands how to structure owner financed deals, gold in the form of commission checks is awaiting.

After having spoken with dozens of agents regarding the topic, I want to help provide solutions to your number one question: How do I get paid ?

Agents upon hearing the words "would the owner be willing to finance the sale" usually have a negative alarm going off in their heads that says "I won't get paid", or "I won't receive my full commission". By understanding how to structure these types of deals, you can assure yourself commissions in any market.

Obviously, we all know that it's important for the buyer of the property, on a home listed with agents or brokers, to do one thing; find a way to cover three important things: 1) the agents commissions, 2) the seller's closing costs, and 3) the buyer's closing costs. We all know agents need to eat, therefore they need to get paid for helping buyers and sellers close real estate transactions.

Assuming we are working with a home owned free and clear (don't worry, according to U.S. Census Bureau statistics, 31.7% of owner occupied owned homes are free and clear of mortgages), the key for the buyer is to find a way to provide approximately a 10% down payment (at least) so that all three of those above mentioned objectives can be obtained.

The first, and easiest, method is to have the buyer pay 10% cash down from either their bank account, a line of credit, or borrower from a relative. This will allow the seller to finance the remaining 90% of the purchase to allow the transaction to close.

The second, not as easy, method is to have the buyer borrow the 10% down payment from any lender on this planet to bring the cash to the closing table, and then allow the seller to hold a 2^nd lien position of 90% to allow the sale to close. Even strict banks will worth with MANY borrowers to give the bank a 10% Loan to Value loan on a residential property. How can the bank lose ? If they borrowers make their payments, they win. If the borrowers default, they win. They are more secure in this type of deal than any other investment they could park their depositors hard earned money.

In summary, the agents who find a way to help buyers come up with 10% to cover their minimum acquisition costs can become a deal structuring machine. They can help sellers sale their homes quickly, and help buyers when conventional lenders are running for the hills.

For more information on buying homes owner financed, please visit:

http://www.mindofaninvestor.com/Owner_Financing.html

Save on Lender's Fees:Buying Owner Financed (AKA Seller Financed or Owner Carry) Homes

Brandon Yeager — Tue, 04 Nov 2008 14:09:18 -0800

Buying Homes Owner Financed, or Seller Financed is not new, however 99% of the population has no ideas the millions of way an owner financed deal can be structured. More importantly, owner financed homes do not normally require application fees, application fees, mortgage insurance protections, or qualification using debt to income ratios.

This blog post is going to explore these various cost savings of an owner financed home versus traditional bank financing.

The first fee you can save is an application fee. Application fees vary greatly with many different lenders, and can oftentimes be hidden via other terms. This is typically a fee that is nonrefundable that is charged to the borrower for the processing of their application. These fees can range from $50 to $500.

The second fee you can save by purchasing a home seller financed is in the form of points. Points are typically 1% of the loan amount, and the more points you pay, the lower your interest rate should be. Conversely, the lower points you pay, the higher your interest rate. The majority of owner financed loans are 0 points.

The third fee that is usually not present during a seller financed is a Home Appraisal. Appraisal fees can range from a low of about $200 to a high of $400, or higher if the property is commercial, multi-unit, or industrial in nature. The only reason you need to pay this fee in a Full Owner Financed transaction is if you want one for the peace of mind. Note that oftentimes, sellers are able to get a higher sales price for the convenience of "being your bank". Thus, the appraisal, which is based on a "cash type" transaction may be a little lower than your agreed upon sales price. However, nothing is ever set in stone and an appraisal is simply one person's opinion on the value of a property.

The final cost savings can come in the form of PMI. This is a mortgage insurance payment that the borrower pays on "low down payment" loans. As the housing crisis progresses, these costs seem to be getting quite high for many borrowers, and definitely should be a consideration when evaluating a monthly payment you can afford.

In summary, owner financing is a great way to not only have a lower than normal housing payment, it can also substantially reduce the amount of money you need up-front to purchase the home.

For more information on buying owner financed, please visit:

http://www.mindofaninvestor.com/Owner_Financing.html

Buying Homes Without Banks

Brandon Yeager — Tue, 14 Oct 2008 15:51:31 -0700

Buying homes without using banks....there is a fantastic new course out on the subject...and I highly suggest you check it out.

The free newsletter is worth the cost of the course.

http://www.HousingJerk.com

Joy should be defined as "Removal of a Lockbox"...

Brandon Yeager — Mon, 13 Oct 2008 11:36:27 -0700

Man, it is such a great feeling removing yard signs from the front of a home, and the lockbox from the front door. Whether it is a new tenant is moving in, or a home has finally sold and you are on your way to the closing to pick up some loot, what a great feeling.

It never ceases to amaze me how good that feels.

Just thought I'd share.

PS...the feeling does not usually equate to more elation when the figure is extraordinarily large either. Whether I sell a home and only make $5,000, or a bring the bacon home at $20,000, it is still a good feeling and I don't find myself being 4X happier with the latter. Now, my wife may beg to differ on her end, but for me...it's all good!

Stocks Stink, Real Estate Rocks...Did you prepare your Ark? Part I

Brandon Yeager — Thu, 09 Oct 2008 17:56:19 -0700

Well,

Being a Real Estate Industry Insider, probably most of you are familiar with Kiyosaki's Rich Dad, Poor Dad. When I first read it 10 years ago, I was hooked. Real Estate would be the only way out of the rat race.

In 2001, I cashed in my 401K, took a huge hit, and turned the money into a huge windfall. To this day, last I checked about 6 months ago, I had about $200 worth of stock leftover from an old company I used to work for in the late 90's. It's probably worth about $0.20 today.

As I watch the Dow Slide, it pains me to think of everyone who listened to Financial Planners telling us to "Diversify....Invest for the Long Term....Blah Blah blah."

I read Rich Dad's Prophecy many years ago...and if I remember right, his prediction was our country's market was headed for slide in 2010, or something like that...right around when all the baby boomer's (the first string of them) would be starting to be required to PULL their money their retirement accounts.

I took the Prophecy's recommendations to heart, and invested wisely. I didn't buy liabilities (like a $400,000 home that I had to pay for ON MY OWN)...I bought Assets. Items that make me money.

Look's like we might have hit the downturn early...well, not hit it early...but couple our recent turn of events with 2010's coming attractions...I do hope that everyone who was "investing for the long term", is ready for the long term.

I met with a Financial Planner about 6 months ago...the question of the meeting was....why do real estate investors (I'm talking about good/experienced ones, NOT speculators who bought homes in areas going up 25% a year, thinking their bliss would last forever) not buy stocks/mutual funds, etc.

My answers were pretty simple:

1) Leverage. When you buy $100,000 worth of stock...you buy it with $100,000 of your own cash. When I buy real estate...very little of my own cash gets tied up in the house. Hence the ROI in many cases is Infinity.

2) Strike Price. When a stock is selling on the market for $5.32, you get to buy it for $5.32 normally. Unless you are doing insider trading, etc, most people pay the going rate for stocks. In real estate, it is nothing to go out and buy your "stock" at 70 cents on the dollar. Suppose you buy a piece of $100,000 real estate for $75,000 and it takes $4,000 of your money to do so, you received an instant $25,000 of equity for your $4,000. That is soooo sweet. An Instant 600% return in 1 day is like....a Gazillion ROI over a yearly basis.

3) Inflation/Deflation Hedge.

If you think I'm on a roll right now...wait until I get on my soap box about UFF and "mortgage reduction software"...whew.

Anyway, Part II will be coming.

Happy Investing!

Brandon

6 Steps to Flipping Your First Home

Brandon Yeager — Wed, 08 Oct 2008 20:58:26 -0700

Step#1: Locate Prospective property to acquire. Some of my favorite methods include buying bank foreclosures (typically called REO's), working preforeclosure deals, placing ads in local newspapers, using bandit signs with "We Buy Houses" and my phone number.

Step#2: Make offer. Be sure to use the correct formulas in order to maximize your profits, and minimize your chance of making a mistake. Reference 2 other ezine articles on the subject.

Step#3: Fund/Close the Purchase of the property. You can alternatively try to assign your contract to another investor for a specified amount, or simply Option the property from the seller, and assign your option. Options present you with the least risk, but also possibly the least security in the deal. Be sure if you are going to assign your purchase and sales agreement, or the option agreement, that you use "and/or assigns" for the buyer, or optionee.

Step#4: Market Preparation. Have someone clean up property, or remove trash from the property. Place lockbox and for sale by owner signs.

Step#5: Find a Buyer - sign paperwork and send to closing company/attorney.

Step#6: Deposit check into your bank account. As you are doing Step #6, you should already have another property located from Step#1 to keep the pipeline full.

Be careful trying to wholesale homes located in war zones. Yes, there are buyers for many of those properties, but it is better to get stuck holding a property in a nice neighborhoods, than one you may have to tummy crawl to pick up a rent check.

Visit www.FlippingMind.com or www.MindOfAnInvestor.com for more information.

Flipping Homes Formulas - Using Hard Money Lender

Brandon Yeager — Tue, 07 Oct 2008 21:57:09 -0700

Buying, fixing, and reselling homes for can be extremely profitable. When cash is tight, and your only source of financing is expensive private lenders, or Hard Money rates, there are some general rules of thumb that most investors can use.

Using Hard Money Lender (points for borrowing 6 point, and interest rates around 15%)

ARV stands for After Repair Value, or what the home will be worth upon completion of repairs.

Maximum Offer = (0.63 X ARV) - Repairs

Maximum Offer = (63% X ARV) - Repairs

Example:

A house has an ARV of $100,000, but needs $35,000 in order to achieve that value.

Your highest offer should be:

($100,000 X 0.63) - $35,000 = $28,000

Purchasing a home for $28,000 that could later sell for $100,000 may sound like a daunting task. I realize that homes are bought and sold daily throughout the United States for much less than the formula offers.

Truth be told, for a $35,000 renovation, I would probably want to offer using 58-60% for my formula. The simple reason, I would want to make a little more profit for a slightly higher than normal renovation. Along the same lines, if the home only needs $3,000 of repairs to be worth $100,000, I may be open to offer at 67% - Repairs.

Those figures are also strictly for someone looking to acquire the property, fix it, and resell it. If you would plan on wholesaling the home, you would need to subtract $5,000-$10,000 from that maximum offer in order to allow you some extra room for your own profit, while providing the rehabber enough margin to make it worthwhile for them.

Sidenote: I know most people cringe when they hear 6 points and 15% interest terms offered by Hard Money Lenders. You have a choice you can make. You can sit back and do nothing, and keep living a life full of trials and despair, or you can make $17,000 versus $25,000 on a rehab. It's completely your choice.

Visit my sites at www.MindOfAnInvestor.com and www.FlippingMind.com for more information.

Have a great night !

Brandon

Flipping Homes Formulas – Conventional Funding or Cash Purchase

Brandon Yeager — Wed, 01 Oct 2008 20:35:46 -0700

Buying, fixing, and reselling homes for profit is not an exact science. However, there are some general rules of thumb that most investors can use.

Using Conventional Funds, or Cash (points for borrowing 1 point or less, and interest rates less than 8%)

ARV stands for After Repair Value, or what the home will be worth upon completion of repairs.

Maximum Offer = (0.70 X ARV) - Repairs

Maximum Offer = (70% X ARV) - Repairs

Example:

A house has an ARV of $100,000, but needs $35,000 in order to achieve that value.

Your highest offer should be:

($100,000 X 0.70) - $35,000 = $35,000

I understand most people cannot comprehend that a home can be acquired for $35,000 that could later sell for $100,000. I thought that 10 years ago also. Today, I realize that homes are bought and sold daily throughout the United States for much less than the formula offers.

Truth be told, for a $35,000 renovation, I would probably want to offer using 63-65% for my formula. The simple reason, I would want to make a little more profit for a slightly higher than normal renovation. Along the same lines, if the home only needs $3,000 of repairs to be worth $100,000, I may be open to offer at 72% - Repairs.

I would feel comfortable using these formulas up to $500,000 homes.

For the exact resources I used to learn how to buy,fix,resell homes...visist http://www.FlippingMind.com

Goodnight All !

Flipping Homes 2008 – Alive and Well

Brandon Yeager — Wed, 01 Oct 2008 13:56:52 -0700

While many investors, or possibly better terms speculators, have ran for the hills. REAL real estate investors are cashing in on fantastic deals every day in the United States.

It really doesn't matter if the market is going up, down, or sideways, investors who have been taught how to properly buy homes in different markets and conditions will find a way to thrive no matter what external circumstances are presented.

I know investors who have worked full time jobs this year, and have profited tremendously in their spare time in real estate by buying, fixing, and reselling homes.

Whether their niche is wholesaling, rehabbing, buying subject-to existing financing, or using owner financing to leverage their way to wealth, smart investors are profiting.

They always have, and they always will.

If you have always wanted to do some real estate investing, but have hesitated for one reason or another, you can sit back and watch your stock portfolio crash, or you can leverage your cash into equity rich properties that are abundant in the market. They are so abundant, a guarantee there is one right around your home.

If you are having troubles locating the "apparent" equity, you can always learn to capitalize on preforeclosure properties by purchasing homes using a short sale technique, or buy the nonperforming note from a bank, etc.

Just as there are many homes for sale, there are a multitude of methods that could alleviate the homeowners pain and suffering and allow you to make a nice profit getting involved in the transaction.

Interested in learning how to wholesale or rehab homes (AKA flip homes), go to http://www.FlippingMind.com and I will tell you about the 2 best products that have allowed me to continue to wholesale/rehab homes, even in a "down" market. Is the market down ??? Not if you are a good real estate investor.

Putting the "E" into rEal estate - Part I

Brandon Yeager — Wed, 03 Sep 2008 14:14:54 -0700

Getting your own site up and running may sound daunting. Most of you may already have "a website".

However, here is my question to those of you who "already have a site": Does your website not only help promote you/your business, does it provide detailed content, articles, and links that may still generate you money? The reason I ask...

I see many mortgage brokers and real estate agents who have "a company" site. They are provided with a site to park themselves, oftentimes free. Oftentimes, though, a monthly company "maintenance fee" is charged. Now, the company is the one making some money from Google ads, or articles, etc that may promote others businesses, etc. These types of sites are FINE. HOWEVER, I HIGHLY recommend you check into having YOUR OWN site.

Maybe your home sales are a little slow and you are looking for extra income. The internet can probably help you month in and month out to produce extra revenue. How about the marketing of your services: Are you familiar with Google adwords? You can run an Adwords campaign and have people find you right in your own city. You simply draw a circle radius around you and say: Give me everyone who types "sell my house" using Google within 10 miles". You will be amazed. How much would you pay per lead to be able to do that?

Anyway, whether you are a contractor, real estate agent, mortgage broker, etc, I'm going to recommend a company who I've enjoyed partnering with. You can choose anyone you like, but as far as customer service/help desk/ease of use, etc...these guys are the best.

Now you may be saying, "Brandon, I don't have an ounce of technical know-how". No problem. Tell them what you want and their developers can have you up and running quickly and affordably. They can provide 1 stop shopping from picking out your site name, to hosting, and designing your site.

Click below for more details:

www.mindofaninvestor.com/InternetMarketingResources.html

Best New Tool for Determining what Profitable links to Add to Your Websites

Brandon Yeager — Wed, 03 Sep 2008 06:37:18 -0700

I recently came across some videos that showed me step by step how to generate money using clickbank and affilliates on my own personal real estate investing websites.

You probably already have a website setup. If not, maybe I'll address that in the near future as well. You can do all kinds of awesome things with your website. I have links driving to my active rain blog. I have links and freebies for people who are interested in various real estate investing topics, etc. But the bottom line, if you are spending advertising dollars getting people to your website, you might as well try to recoup some of your costs.

There is a new tool coming out shortly called Market Samurai. I have the Beta version. It is awesome. I have been able to quickly determine the best keywords for my own little "industries"...whether it's Home Inspections, Real Estate Agent, or Investor for you, find out what keywords are driving people to your site. You capitalize on the keywords by using some of the techniques in the following link:

http://4mycb.comblue.hop.clickbank.net/

Now, I'll warn you, some of their techniques may not be up your alley. But I can tell you that you should be able to use their sorting criteria for valuable clickbank products that you can add to your website to increase your profitability dramatically.

Also, whatever your industry may be, if you are not using Google Adwords to drive traffic to your site: you are absolutely crazy. If you are a home inspector and somebody goes to Google and types "Home Inspector"...and they type it in your zip code, does your name come up???? Why Not?

Bringing the "E" into rEal estate,

Brandon

For all you Real Estate Investors who can't pull the trigger: FEAR- So what, if I am Afraid!?

Brandon Yeager — Thu, 28 Aug 2008 20:36:00 -0700

So, you want to be a Real Estate Investor, but you haven't quite started yet? You have looked at a dozen properties, talked to your mortgage company, spent thousands on education, sought advice from an Agent, and yet, you have yet to put one foot in front of the other. No Baby steps. Nada.

How many Real Estate Investor meetings have you been to, or Real Estate books that asked you "what's holding you back"? And then, the logical answer: Fear. You are "afraid".

You have been told to "get over it", "take the plunge", and yet, you are frozen at the green light. Well, maybe you're frozen at a Yellow light. Maybe you have a plan, but there are warning bells ringing in your head. When you analyze what you are fearful of, you should see the picture of your fear for what it is. You are either a cautious, saavy calculated person, or you are a big talker, but not a "doer".

Let's look at some of the common fears for what they are:

You are afraid:

You will pay too much for a property and lose money
You are afraid you won't be able to manage the property
You are afraid you will not be able to get the rents you need
You are afraid the repairs are more than you anticipate
You are afraid the septic system isn't good, even though the Owner says it is
You are afraid you will not get the loan, and you will lost your earnest money deposit

Are these ridiculous fears that you need to "get over", or are they legitimate concerns that a responsible Investor needs to explore?

Not all concerns are cop-outs. Not all concerns are excuses to let you turn away from a deal without feeling like a coward. Sometimes I have not signed my name to a sales agreement on a deal "just because it didn't feel right". And guess what? I was thankful, not regretful. I analyzed, and when it came down to it, the risk was too great for one of the concerns I had.

Look at your list of reasons NOT to do a deal. What are the answers?

Work with an Agent, who can tell you what other homes sold for in the area. Not working with an Agent? Contact an Agent who sells a LOT of homes, and ask them what they would charge you for a consult. Seek out an Appraiser, and see what they would charge for a consultation on the home. If you DO these things, you will be standing firm on the belief that you want to make a sound investment, not wallowing in fear. If you procrastinate calling, or think you are going to look stupid, then you are letting FEAR of rejection stop you. Shame on you.
You don't think you can be a good Landlord? That is why they have management companies. Contact several, and see how they will manage your property, and how much they will charge. Then make sure you have that cushion built into the sales price and monthly payment. If you have the phone numbers of four management companies, and but you haven't called because you are not sure if they want to talk to you since you don't own the property yet, shame on you. You're AFRAID.
Look through the paper, and call the ads that are in the area you want to buy, and get details on the apartments/houses. Ask for the current Landlords Rent Record to see what rents they have been receiving, and how long it took them to rent it. Call a good property management company in the local area, and ask them. Does this seem like too much work? It probably isn't going to work for you, so you shouldn't buy it...and you should forget about investing because you are letting FEAR hold you back.
Call a contractor, or five, ask permission from the Owner to have some estimates done on the repairs. Still unsure? Ask five more, and get specific. What exactly are they going to repair? What materials will they use, etc.

You will start to see a pattern of what repairs are needed, what it will cost, and which contractors are going to rip you off, either on the high end, or on the low end...they‘ll get the deposit and not finish the work.

How can you avoid this? Well, after the property is yours, and the work is ready to be done, don't pay all the money upfront. Discuss with the contractor that you would like to pay them their first installment after their first day of work. Then make sure they show up on time, check their work as they go, and if it is terrible, pay them a fair wage for the day, and let them go. Don't let them get half way into the job, and then muster the courage to tell them their work stinks. Don't be afraid. Be shrewd.

Don't EVER take the previous Owners word for anything. Always inspect things yourself, or better yet, have a professional inspect it for you.
If you work diligently with a reputable Lender, and they have assured you, in writing, that you will qualify for the loan, make your contract to buy CONTINGENT on you getting the loan. Yeah, it could be embarrassing if the loan does not go through, but legally and financially, you are covered.

Fear is not always bad. Fear is a warning, and if you logically conquer the warnings, with sound business choices, and watch the yellow light turn green.

Sitting at the green light succumbing to your fears, now that's real estate failure.

Knowledge is the only way to overcome these fears. Overcoming your fear is success.

Courage is not the lack of fear. It is acting in spite of it. (Mark Twain)

Happy Investing,

Brandon & Ann Yeager

www.MindOfAnInvestor.com

About the Authors: Brandon & Ann Yeager

Since 1998, Brandon and Ann Yeager have been on the buying side of over 100 real estate transactions as principals in several different states. As the founders of www.MindOfAnInvestor.com, Brandon and Ann are dedicated to helping others in the wonderful realm of real estate succeed and achieve their dreams through understanding and applying practical, easy, and consistent investing philosophies.

Agents, are you asking the right questions of your sellers ? Part II.

Brandon Yeager — Mon, 18 Aug 2008 12:38:59 -0700

Nearing the end of Part I, I described how the conversation should NOT go when presenting an owner financing offer to your sellers. Allow me to explain

Scenario: House is worth $200K. You have a buyer wanting do put $20K down, and the owner to carry the balance of $180K at 6% interest, on a 30 year amortization with a 5 year balloon payment.

Your conversation could go like this (how not to):

Mr/Mrs. Client, we have this ridiculous offer from a buyer, but since I'm required to run all written offers past you, I'm being forced to do so. Do you really want me to review it with you, or do you just want to reject it right now?

Here's how your conversation could go (hot to present it):

Mr./Mrs Client, I have an offer for you. It's a possibility that something along these lines may indeed work for you. I've had enough people accept various creative offers that I learned a long time ago to allow homeowners to make some decisions for themselves, versus taking that ability away from them. Would you be interested in hearing how it may help you?

Can you see the differences and understand that oftentimes the offers are only as good as the "manner" in which they are presented.

Topic#2 - Making a decision for a buyer regarding an offer

I understand that it is your job to serve the best interest of your client. I also understand that oftentimes, what you may think would work for a particular client, in reality is something different than may work for them.

If a buyer makes a so-called "low ball" offer, you should not be offended, nor should the sellers. Celebrate the fact somebody liked the home enough to offer on the property! I have 5 properties (that I OWN)for sale at this second...would I be offended if somebody offered 50% of the value? No. I work every interested buyer to see if we can come to an agreement that works for them and works for myself.

I think if we all focused on how we can be deal-makers, versus "knowing" what everybody wants, we could all close a few more deals than we normally do.

That's all for Part II. Will work on having Part III up for next week.

Also, if you are having troubles with some of the concepts of the thought process, please see my other blog post titled "You can be right, or you can be rich". Many of the same thoughts can be echoed in the relationship involving the parties of a real estate transaction.

Real Estate Rocks!

Agents, are you asking the right questions of your sellers ? Part I.

Brandon Yeager — Mon, 11 Aug 2008 17:11:30 -0700

Different home sellers call me daily wanting me to buy their homes. After the first couple years, I started to generate some various thoughts. Now, I understand that selling real estate probably does take some years to get to the point that you are fully proficient in all aspects of the business.

However, it still amazes me when I find out that certain questions were never asked by a listing agent, who had previously listed a seller's home. Please don't take a defensive posture. This blog post is mean to HELP, not HURT....also, as time is a premium...this is Part 1 of maybe 3 or 4.

Item#1-Free and Clear Homes- Around my area, approximately 30%-45% of the homes that are owner occupied are owned free and clear. I do not recall the exact percentage, but I found it on the US census beureau websites. Anyway, what I am getting to:

A typical transaction is....house is "worth" 100K, it gets listed for 100K by an agent, and they are looking for a buyer for $100K. Please understand that the homes "value" of $100K is based on what a home would sell for, in cash terms, exposed to the market at a reasonable amoutn of time.

Have you asked the seller if they would be willing to carry the financing? I know the thought sinking in the back of your head...well, how will I get paid a commission? Many ways.

First, it's possible the seller would be willing to pay it, even on a 0% down deal, but it would be VERY rare, I'd suspect.

Second, buyer pays 10% cash, seller hold 90% financing. Covers typical agent commissions and transfer taxes, etc.

Third, buyer borrows 10% down from bank, and seller holds 90% financing. Same as second, but seller is holding a 2nd mortgage and buyer is borrowing all funds, not just the 90%.

Now, time is running out, but I promise, I'll work on adding more over the next 1-2 weeks.

What I am getting at.....banks may not be lending, but there are MANY owners who NEED to sell their properties, and not all of them need cash, or all of it from the transaction. It will allow you to get paid, solve the seller's needs, and help a buyer avoid a bank financing situation.

Don't think for a second that just because your buyer proposes this type of deal, that it is because the buyer's financial statement may not be great. NOT TRUE.

Also, many seller's would LOVE to have a cashflow stream earning them 4/6/9% interest, etc versus 1.5% from their bank. Or sitting there watching their retirement nest egg go down as fast as a Countrywide stock they purchased. They have a fairly well secured investment paying them monthly getting an interest rate which they negotiated.

Also, don't say to yourself, Brandon, there just aren't seller's out there willing to do this. Do not tell me that. I know better. Your're saying that to yourself because you are thinking you know that, but in reality you do not. Or maybe you do, and this is old hat to you. I don't know. All I am saying is do not make decisions for the seller as you may not know what they will accept. Do you know that adding an additional $200K from the cash sale of a home would send them to a catastrophic tax situation? Have you asked? Not normally, we just sell for cash, "because that's what is best for the seller".

Remind me in part 3 or 4 to talk about.....how this conversation should go with the seller. Hint...it's not..."i have this stupid offer some guy sent over to me....i'm sure you won't like it"....

Also, feel free to post some Q's, and I'll do the best I can to answer some of them over the next week.

Buying NonPerforming Notes & Profiting from them.

Brandon Yeager — Mon, 04 Aug 2008 15:57:37 -0700

Have you ever wondered how to create money out of thin air?

There is little known about the secret, yet highly profitable, world which many Investors simply overlook.

This world deals with buying Nonperforming Notes from banks.

I'm sure you've heard of "buying mortgages" before, but I am confident that most Investors have never truly understood how to create an investment deal for themselves with a mortgage that is heading to foreclosure (a.k.a. a NonPerforming Note).

Let me give you a brief overview/example.

Suppose you found a vacant house with an estimated value of $100,000. In this case, the reason the house is vacant is because the owners came to the own realization that they had no alternatives to the foreclosure-- they owed $100,000 on the house.

Most investors would also, typically, walk away from this potential deal.

Yes, there are short-salers out there who could capitalize on this house. However, one KEY ingredient is missing. THE HOMEOWNER! In general, you need the homeowner on your side to complete a short sale.

Bear in mind: when buying Nonperforming Notes, you do NOT need permission from the owner.

Back to our example. The $100,000 of debt is comprised of a $50,000 1^st mortgage, and a $50,000 2^nd mortgage.

Question: What would the astute investor do?

Answer: Offer to buy the 2^nd mortgage from the bank for $5,000. Should the investor be successful in the aquisition, there are a multitude of exit strategies available to make a profit from this home.

The world of buying Nonperforming Notes requires many areas of expertise.

I share all of my secrets and expose the underground preforeclosure world with 3 E-books bundled into 1 package price that are now available for you. The main topics are:

1) Buying Nonperforming Notes

2) Researching Titles

3) Finding Vacant Homeowners

Please visit www.UndergroundPreforeclosures.com for more information.

Right or Rich

Brandon Yeager — Thu, 31 Jul 2008 20:26:34 -0700

Well, back in the saddle. The good thing has been since my last post...I've made a lot of progress on a couple e-books I've been working on. Have also started working on the websites.

Anyway...wanted to post a rerun of some comments I made a few months back on a discussion forum. These comments are in regards to handling of sellers as a real estate investor. This can be useful for anyone in any profession.

I hear people daily who are "right", where they could be getting "rich". That's too bad for them. Anyway, without further delay...

*******************************************************************************

Well, as i sit here with a few minutes...I'm going to post a small segment that was once taught to me regarding my investing.

And this was a HARRRRDDD lesson to learn. I'm an Engi-Nerd by training. electrical to be exact.
And on the lines of being exact, it's hard for us Engineers to not be 2 things:
1) always right
2) exact

As an engineer, you can not run 2 miles in about 15 minutes. That's how normal people would say it.
We need to run 1/4 mile splits in 1 minute and 38 seconds.
We also like to argue our positions until we fall over.

Well, a prior mentor once helped me to "get over" some things. He said, Brandon, you can be right or you can be rich.

To this day, I cannot tell you how many times that sentence has crossed my mind (and made me money).
When you are meeting with a homeowner and they tell you what their home is worth, and you know it's not...you have a choice. You can reject them (and have no chance at buying the house), or you can figure out a way to get them to realize that the house may not be worth what they think it is and let them come to the conclusion that it's not worth that much. You just get to figure out how to lead them in that direction.

If you listen closely today, I can almost guarantee you...whether it is in a work type environment, family, etc...you will have an opportunity where you can prove someone wrong and that you are right.

Well, if you are looking to make some extra money doing real estate deals, you need to (sooner rather than later) realize that people will do business with people they like and trust. If you want to be confrontational to a homeowner...that's entirely your choice...just don't expect too many deals.
I know many homeowners would rather die with $50K in equity on a $100K home, than allow some jerk to make money off of them.

So, you have choices....you can be right or you can be rich. Think about that often and i'm telling you...it'll ring true.
Whether it's dealing with contractor's and how their work looks, real estate agents who don't see an offer your way, an interested buyer who is ragging on 1 little detail on your fully renovated property....you name it.
You have little opportunities where you can take the higher road and help come to an agreement to make money together, or you can butt heads and both sides lose out. You can get offended, know that you are right....or you can be humble and respond with a creative answer that can lead everyone toward a great solution that will enable you to make some CA$H.

The choice is yours.

Brandon

Hello Active Rain

Brandon Yeager — Tue, 08 Jul 2008 09:28:08 -0700

Well, this is my first ever Blog, and first day on Active Rain.

I'll try to give everyone a rundown of my life in my posts, as boring or exciting as that may be. :)

Anyway, I'm a full time investor primarily purchasing residential properties along the Route 30 corridor in Westmoreland County. Have hopes to some year expand my buyings to the Route 30 corridor in Lancaster County as well (my wife's family is from there).

I primarily buy/fix/resell properties, and have a fair amount of rentals/rent to owns, as well as wholesale properties that come through the pipeline as well.