pig: {ASK THE PIG} – Valuing Diseconomies in Real Estate?
- 10/26/15 01:20 AM
A diseconomy in real estate is a condition unrelated to the property itself that can negatively affect its value. An example of this might be an area that was recently flooded (even if the subject property was not), a home that backs up to a cemetery or trailer park, or a property that is situated near a power transformer. Determining the after repair value of a home with a diseconomy comes back down to the basics of comparable sales data, however not in the way that it’s traditionally used. Because there may not be sales on similar homes in the area … (0 comments)
Question: What is FHA's 90 Day Anti-Flip Rule? For a number of years now, FHA has enforced a 90 day anti-flipping rule which prevents an investor from reselling a home to a buyer using FHA financing until that have owned the property for at least 90 days. While some investors might think this is a moot point, since most renovation properties take at least 90 days to rehab and sell, that is certainly not always the case. There have been numerous occasions in which I have purchased and resold in less than 90 days, because the property was a very LIGHT rehab, or need nearly … (0 comments)
pig: A Poisonous Deal - Is Your New Investment Property a Former Meth Lab?
- 02/04/15 11:17 PM
If walls could talk, do you know what your investment property would be saying? I think most of us probably cringe at the thought of what might have occurred at a property before we bought it, especially considering the condition in which we oftentimes find them. In most cases it’s easier to just follow the old adage, “out of sight, out of mind” and focus on the future of the property, and how to renovate it for the next owner. However, there is one activity from the past that, if ignored, could come back to haunt you. Unfortunately there is a … (0 comments)
pig: “Is it Better to Buy Foreclosures or From Distressed Sellers?” – ASK the P.I.G.
- 01/20/15 02:28 AM
James, one of our subscribers, recently posted the following question on our website: “Would it be better to purchase homes from distressed sellers, or to buy foreclosures?” As always, an excellent and insightful question, which is why I chose to answer it as a part of this month’s “ASK the P.I.G.” series. This is definitely an easy question in my book, because I think it is undoubtedly far and away better to purchase from motivated sellers, and NOT homes that have been foreclosed on. The biggest and most compelling reason is because purchasing from motivated sellers gives you so many … (0 comments)
pig: Resolutions Stink! You Need a New Year's COVENANT!
- 01/07/15 05:23 AM
Yes, it’s that time of the year once again. With the changing of the calendar, and a fresh 365 out in front of us, there are a few traditions that we all must endure. For the past few days you’ve probably had to scribble out 2014 more times than you can count. The NCAA and its high-paying sponsors have force-fed you a full course of meaningless college bowl games. You’ve been subjected to endless dieting & health club commercials with promises to help you shed those holiday pounds. And of course, it wouldn’t be January in America without talk of making … (0 comments)
pig: From Fab to Flab in No Time Flat!
- 11/13/14 07:02 AM
“Best (& Worst) Beach Bodies of the Year”. That was the headline that grabbed my attention a while back as I stood in line at the grocery store. And it wasn't for the most obvious reason that a 30-something year old man might be tempted to take a peek. In contrast, this was much less of a temptation and much more like the experience of approaching road kill on the side of the interstate. You know you’ll regret looking at it, but as the mangled creature moves closer, you just can’t seem to keep your eyes off of it. Undoubtedly part of … (25 comments)
I received a great question from Charles, one of our guild members, a few days ago...and I thought it was the perfect choice for this month's "Ask the P.I.G." video. Charles wanted to know what is the best way to find real estate "hot spots", or the highly desirable neighborhoods in your area where homes sell quickly. That's a great question, and an important thing for any investor to know, so that they can target their marketing or direct mail campaigns to the areas where they can find homes to flip rapidly. The first piece of advice … (4 comments)
Check out the above video for my answer to J. Paul's question, "What's the difference between transactional funding and hard money lending?" They are completely different forms of financing a property, and so it's important to know the difference between the two, and which deals would require which type of funding. So, check out the video above and then feel free to leave us your comments below! Not a subscriber yet? CLICK HERE to join our e-mail list, and grab 2 free resources in the process, "Guerrilla Marketing for Real Estate Investors" and "Top 10 Foreclosure Mistakes and How … (0 comments)
pig: SELL FASTER BY PROVIDING A HOME WARRANTY
- 10/13/14 07:31 AM
With the national housing market showing signs of improved strength and stability, and inventory levels on the rise, sellers no longer have the advantage that they regained in 2012 after the Great Recession’s prolonged buyers-market. With buyers and sellers on a more even playing field, investors who renovate homes to resell need a competitive advantage in the market to ensure a quicker sale. In my recent post, “7 Keys to Selling Your Fix & Flip in 7 Days”, I listed seven things that I do on each and every investment that helps me consistently sell my renovation properties in less than … (3 comments)
pig: Do-It-Yourself Landscaping - Seven Steps to Sexier Sidewalks
- 10/02/14 02:53 AM
Most investors know that one of the most important aspects of selling a home is curb appeal, and yet many of us are lost on exactly what that entails. Of course a nice mailbox, painted front door, and a freshly mowed yard fits the bill, but today’s buyers expect much more when they purchase a new home. For the last few years, my good friend Paul Mattutat from Avalon Landscaping has been in charge of giving my renovation projects some extra “wow” factor in the form of landscape design. I recently asked him to share with the Professional Investors Guild, (especially … (16 comments)
pig: A Rehabber’s Dream? – Virtual Reality Rooms Coming to Lowe’s
- 09/07/14 11:53 PM
General contractors, home design specialists, and remodeling professionals oftentimes have a knack for seeing their finished home improvement project in their well-trained mind long before construction even begins. However, for the typical (or new) investor, the ability to see beyond the urine-soaked 1960’s shag carpet, the floral wall paper design, and the pink tiled bathroom isn’t quite that easy. Our lack of “vision” is the creative inspiration behind Lowe’s new virtual reality rooms. The big home improvement retailer recently announced that they are devising an innovative plan to get customers off their computers and back into the stores with their 30 … (2 comments)
I recently had a student ask me if I flip HUD and/or REO foreclosures, and whether the bank contracts are assignable. Since it's a question that I'm asked fairly often, I thought it would make for a great "Ask the PIG" post for all of my subscribers. The short answer is no, bank foreclosures (REO's) and HUD/VA foreclosures do not allow assignments. The answer to the 2nd question is also no, I don't flip REO's and HUD foreclosures, but it has nothing to do with the assignability (or lack thereof) of the contract. My problem with bank owned properties … (3 comments)
pig: When the Grass is Greener....
- 08/25/14 12:32 AM
“If the grass looks greener on the other side of the fence, you can rest assured that the water bill is higher there too.” –Maya Angelou This is probably one of the best quotes I’ve read in a long time, and it’s so apropos when it comes to entrepreneurship. As a real estate agent, I have witnessed this “grass is always greener” mentality for many years. I have witnessed countless mortgage brokers, title agents, and real estate agents hop from company to company looking for that “right fit”. When business doesn’t take off for them like a rocket at the new company, … (3 comments)
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