Comet Settlement Real Estate

So why should you invest in foreclosures? In the long-term, it’s for lifestyle and financial freedom.

I do not define success in terms of winning or losing, but rather by whether I am challenging myself to be the best that I can be. One of the reasons I left my 9-5 corporate job, besides getting laid off, was because I wanted MY OWN lifestyle. I wanted to create my own lifestyle for me, my family, and my friends. I wanted to become a champion, the best at what I did. I believe that anything I set my mind to, I would be successful at that endeavor.

However, my biggest problem in working for a company where I was not the boss, the president, or the owner, was that I could not set my own schedule. I would not be able to go skiing when I wanted, play golf, or travel when I wanted. I was a terrible employee because I wanted to do things when I wanted to do them. And today I don’t want to be accountable to anybody, except myself and my family, and the people that are counting on me to create real estate transactions.

Don’t get me wrong. I was pleasant at my jobs, and I showed up, and I produced revenue. But the reason that I think I was a terrible employee was that I only wanted to work just 2 to 3 weeks a year. To me, a JOB means Just Over Broke and my time was not my own time, it was my boss’ time.

When I first started in the real estate investing business I had to ask my wife to give me a chance to make this work. I had a severance package, so I had three months to move forward. When we cashed the first check of $8,000, I took $4,000 and took my wife to Paris, a place she always dreamed of going. That helped tremendously in my pursuit of this business.

Now that I have established my business I take off one week for every six weeks of work. This gives me five to eight weeks of vacation per year depending on how my deals are going. I use this time to connect with my family, vacation, work on other projects, and just go out and enjoy life because isn’t that what it’s all about? If you’re working so hard that you’re not enjoying life then you need, in my opinion, to rethink your priorities.

My 15-yr-old son Nick and I go to hockey games, football games and other things that a 15-year-old and his dad can do together. My 6 year old daughter Chloe and I go skiing in the Rocky Mountains of Colorado where we live and we do it 10-15 times a year. We go camping, take motor home trips, fly to Maui to go to the beach and much more. This is truly a life that I am designing.

My belief is we should constantly have to better ourselves, to acquire new skills, to refuse to be bogged down with the feeling of failure, inadequacy, or that L word–loser. In my opinion, the losers of the world are those that never try. I would rather work with somebody who has tried 10 different businesses and failed than somebody who has worked 30 years successfully for one company and achieved moderate success.

When are you finally a financial success? Only you can answer that question for yourself and your family but to me the answer is when you can totally financially support yourself without having to show up for work. When you can do whatever you want, whenever you want, with whomever you want, anywhere you want, anytime you want to do it, as much as you want to do it, then you have reached financial success. That is the time that passive income is really working for you and your dreams are becoming a reality.

_________________________________________________

Paul Wells has been investing in foreclosures full-time for more than 5 years. For more foreclosure investing secrets like the one in this article, subscribe to Paul’s Free Foreclosure Investing course here: http://www.FreeForeclosureInvesting.com

[tags]foreclosure investing, real estate, real estate investing, bank foreclosures, forclosure, forecloser[/tags]

Tags: bank foreclosures, forclosure, forecloser, foreclosure investing, real estate, real estate investing

Contractors are a reason that a lot of people are afraid to get into real estate investing. They hear horror stories from other investors or homeowners who got screwed by contractors and are shell shocked into believing that the only thing that is safe to do is to Wholesale or Lease Option.

To those who are afraid of the big bad contractor, beware of the investor who cries “wolf” because no matter what form of real estate investing you do, sooner or later you will need to hire a contractor.

Whether your doing full blown rehabs, subject to, agreement for deeds, buying apartment buildings, lease option or even wholesaling, you are going to need to use a contractor and you want to know a secret? They’re not that hard to work with.

Actually if you follow some very simple rules you will substantially decree the risk of getting screwed by any contractor.

Those you have been mistreated and had a contractor walk off the job with thier money and not return or had a contractor who would rarely show up, never trained themselves properly to work with these tradesmen.

Now don’t get me wrong. I say tradesmen because those are the only type of contractors that I have work for me. There are many people out there who claim to be tradesmen but are nothing more than thieves in the night.

The first rule or working with contractors is to ask for and check his/her references. Too many people skip this step because they are in hurry to get someone, anyone on the job so that they can get finished. This is their number one priority.

They soon find out that this is not the contractors number one priority, especially since they already got a good chunk of money up front.

Even if you check thier references and your “gut” tells you that this may not be the person for your job, listen to your gut. Your going to have to be married to this person until the job is finished. Make sure it’s a marriage made in heaven.

You must then have the contractor sign a Contractor Agreement. You must have a binding contract that spells out the rules that both you and the contractor will follow as the job progesses towards completion.

If you do not have a Contractors Agreement signed, you have just set yourself up for failure.

Here are the key clauses and addendums that you need in your contract:

1) Scope Of Work - make sure all of your contractors bid on the same job. A lot of contractors omit items from thier bid so that they can charge you “overages” later.
Be as specific as possible when describing the scope of work. For example, if it is a roof that is being replaced, make sure the contract specifies the type of shingle, the style, the manufacturer of the shingle you want to use, how it will be fastened down… the more specific you get, the more protection you will have.

2) Draw Schedule - Never give a contractor 50% up front! You drastically increase your chances of never seeing him again. I give enough to cover the supplies and to pay his guys for one week, then I split the rest up into thirds.

3) Change Order - Be clear with your contractor that if any additional work is done on the property, if he doesn’t fill out your Change Order and have you both sign it, (I will only sign it after I have inspected the proposed additional work) you will not pay for the work.

This is a common tactic with less scrupulous contractors.

4) Penalty Clause - I have a penalty clause in my contracts that charges a contractor a certain amount per day for each day he is over the date that he said he would be done. The amount is usually $100 but it depends on the job size. This clause is a must!

5) Damage Clause - This states that the contractor will pay for any damage that he or his workers do to any other part of the property when they are on site. Contractors are always damaging other contractors work. Why should you have to pay? You save money with this clause over and over again.

6) Contractors Home Address And Phone Number - If he knows that you know where he lives, the chances of him disappearing go down drastically.

7) Clean Up Clause - You want your job site broom swept clean at the end of every day. You never know when a potential buyer will be coming through and if you don’t keep the place clean it will quickly look like a dump. Nothing attract trash like trash!

If you treat your business like the business it is, you will be treated like a businessman from your contractors.

Contractors are not hard to deal with if dealt with properly. Consider yourself informed.

There is a lot, A LOT of money to be made in real estate investing. Go out and get your share!

David Lindahl has renovated over 475 houses in 6 1/2 years and is the author of “How To Estimate And Renovate Houses For Huge Profits“.

[tags]david lindahl,real estate investing,fixers,rehabbing,contractors[/tags]

Tags: contractors, david lindahl, fixers, real estate investing, rehabbing

We have become very concerned by the number of readers writing to us asking how to determine which are the wholesalers(*) that can be trusted. Why are we concerned? Because when we dig a little deeper, we realize that they are buying properties based solely on the recommendation of the wholesaler. They’re guessing which ones to trust, and which houses to buy. That’s a dangerous way to do business.

Are we saying that most wholesalers will take advantage of you? Of course not. We believe in wholesaling. We wholesale many deals ourselves every year. Frankly, the majority of wholesalers are honest, and try to provide data that is as accurate as possible. The problem is twofold: first, wholesalers are sales people and present deals in the best light possible. The Buyers still need to do their due diligence to make sure the deal works for them. Second, wholesalers can only provide what the average renovator may incur as expenses. Your individual, specific expenses in any given deal may be higher or may be lower. It also depends on what exit strategy you’re planning. That’s why two investors can analyze the same deal, and one decide that it works great, and the other decide there’s no profit. Both views may be correct since everyone’s individual costs vary.

When you purchase any property, you have to calculate your own specific costs to determine if it is a good deal FOR YOU. It could be a great deal for many investors, but not for you. Only you can make that determination. Conversely, other people may have to pass on a deal that you, because you may have better resources available, will jump on the opportunity.

You also have to evaluate the After Repaired Value yourself. We still hear buyers talking about getting an appraisal to determine the value. An appraisal is a tool for the lender - NOT for the investor. Appraisals are an art, not a science. We could bring three appraisers to a property, and get three different values.

Therefore, it’s up to you to do your homework and figure out the right value. The question is: “What will this house sell for when the rehab is complete?” You obviously do not want to use as a comp the one home that sold significantly higher than all of the others. But by the same token, don’t use the lowest values either - you’ll never buy a house. We use the highest price cluster of similar homes we find in the area as our comps. This is the most realistic version of what you can expect in the marketplace. We do not under-value the property making it impossible to buy deals; nor do we over-value the property potentially resulting in no profit.

Use the information the wholesaler provides you as a guide to determine which deals to pursue, but then do your own due diligence. Determine your own specific costs, and determine your own property values. Don’t guess whose numbers are correct. In the long run, you’ll be much more successful as an investor.

(*) Wholesalers are investors who market extensively to attract motivated sellers, get the property under contract, then sell the deal to other investors who will fix up the property and re-sell to owner-occupants.

Best of success & abundance,

Lou Castillo

Now, Easily find all the real estate funding you’ll ever need! This complete system will show you how to acquire unlimited real estate funding, even without using banks, hard money or your own credit! Learn more in this FREE Report!!

Real Estate Financing

[tags]creative real estate financing, real estate financing, real estate investing, wealth building[/tags]

Tags: creative real estate financing, real estate financing, real estate investing, wealth building

Miami Preconstruction Real Estate investing is buying properties prior to their construction. For example, a condo that will be built in 2 years, you can put a small deposit to hold the condo and capture the appreciation during the 2 years, which is the time it takes for the condo to be built.

Why is Miami Preconstruction investing attractive to investors?
No carrying costs during the 2 years till the condo is built. There is no mortgage, no taxes, and no expenses at all. Most of all, you do not need to manage tenants which can be a concern for Real Estateinvestors. Also, you do not need to qualify for mortgage. So, regardless of your credit history, developers will sell you a unit.

How to calculate your return on Miami Preconstruction Real Estate investing?
If the condo for example priced at $500K, typically, in the Miami market, developer would require 20% deposit. 10% at contract time and additional 10% when construction begins. So, your total out of pocket deposit would be 100K which 20% of 500K.

Miami Real Estate market has been appreciating over %25 annually. However, for this example, let’s assume Miami Real Estate will appreciate 20% annually. By the end of the first year, this condo that has not been built yet would have already appreciated from $500K to $600K. Which means you have made $100K on your investing of $100K. That 100% return in one year. In other words, you could double your capital every year.

How to buy Miami Preconstruction ?
Be aware to these facts: Developers are NOT Mutual Fund Managers in the business of making you money. They are business people in the business of building real estate. They understand the Real Estate market and they make the most profit by selling for the highest price. This is the myth that could cause investors not making the right decision.

So, do your own research, the Internet can be a great aid in finding initial information. After doing some initial research, find a good realtor that understands the market and Preconstruction to help you evaluate the options you have available.

If you’re contacting the developer directly, you could be taking a gamble since the sales staff has no loyalty to you to disclose vital information, they work for the developer. Go with a knowledgeable local realtor to represent you. You can find realtors to provide this free service. They are paid commission by the developer and your price is the same.

What Miami Preconstruction investing do you choose?
Waterfront Real Estate is the safest investing possible. Tens of thousands are moving to Miami area every month and most asking for waterfront or oceanfront real estate. They are willing to pay a good premium to enjoy the life style. There is a lot more details that cannot be covered here.

Bubble or Not?
Miami Preconstruction and Miami Real Estate has been very rewarding to its investors. If you’re looking for long term investing, this is a great vehicle for good ROI with little effort. “Be selective”, Not every developer and every project is well analyzed and priced right. Like many financial markets, Miami Preconstruction and Miami Real Estate are controlled by greed and fear, the primal emotions that drive the markets.

Interest rates might not have great impact on Miami Real Estate since Miami is an international market with buyers from around the globe. International buyers are enjoying the extended buying power from the weak US dollar and heavily investing their cash in Miami Real Estatemarkets. Florida has very flexible rules towards foreign nationals buying Miami and Florida real estate. Also, we are seeing buyers from markets such as California and New York that are aggressively buying Miami Real Estate and oceanfront properties.

Savvy and long term investors will do well. Risk management is the key to survival in financial markets and that includes Miami Preconstruction Real Estate investing.

Andrew James, Miami Preconstruction realtor and investor
Direct 786-326-7776
info@MiamiNewConstructionGuide.com
http://www.MiamiNewConstructionGuide.com

Andrew James is a full-time realtor and investor in Miami real estate and preconstruction. He is the founder of http://www.MiamiNewConstructionGuide.com, site dedicated to miami preconstruction investors

[tags]Miami real estate, miami preconstruction, miami preconstruction real estate, real estate investing[/tags]

Tags: miami preconstruction, miami preconstruction real estate, Miami real estate, real estate investing

They’re sold on late-night TV, hawked at seminars, they sell in books, and, admit it, you’ve wondered about them–those programs that tell you that you can make a fortune investing in real estate with no money down. Is it true? The answer is, yes, but….

If you can find an undervalued property, use somebody else’s money, or do a sub2 deal (check your glossary at the website if you’re unsure about that term), it’s relatively easy. Undervalued properties are somewhat hard to come by in these overvalued days in most areas, unless you’re ready to do some serious rehab work or have a keen insight into market trends in a specific area.

And, most lenders want you vested in the deal with some significant cash–understandably. Why should they take all the risk? At the very least, they’ll want you to be able to show that you can maintain the property until it turns around or that you can turn it over quickly and profitably (which usually means selling it to somebody willing to pay a premium because of less-than-great credit).

BUT, don’t let this discourage you. Instead, let it sharpen your insight as to what makes for a good deal, understand how lenders view them, and think creatively about financing so that a good deal can be had by all. Here’s one way.

Find a motivated seller, and line up a partner who’s seeking a good return. Form an LLC with the buyer. Have the LLC buy the property at a discount from the market rate in your partner’s (the buyer’s) name–it’s his money, after all. Next, run a “for sale by owner” ad, stating that “poor or no credit is okay.” Your phone will ring. They’ll pay more to get in, but they’ll have to be able to pull together a decent (10% or more) down payment and have a solid job. Your investor partner gets that cash to get his investment back. Then, sell the property to the new buyer and split the monthly cash flow with your partner.

You can repeat this process a few times and have a significant monthly cash flow, all with no cash from your pocket. Your contribution will have been putting the deals together. So, yes, “no money down” can still work, if the right people are in the picture. Keep your eyes open for possibilities, your contact list current, and your ambition level high, and you can do it.

Future articles will cover a couple of additional strategies.

Lynn Stonebraker has been profiting from real estate since 1987. Get free weekly training in her newsletter, available at Real Estate Info.

[tags]real estate, real estate investing, no money down real estate[/tags]

Tags: no money down real estate, real estate, real estate investing

Foreclosure under a mortgage requires a court ordered sale conducted by the sheriff or other court-appointed official. Foreclosure process is called judicial foreclosure. In the event of default, the mortgage accelerates the due date of the dead to the present and notifies the defaulted debtor to pay off the entire outstanding balance at once. If the debtor fails to do so, the mortgage initiates a lawsuit, called a foreclosure action, in the county where the land is located. The purpose of his legal proceedings to a charge toward the county sheriff to seize and sell the property. The judge’s order is called an order of execution. Acting under the order authentication, the sheriff notifies the public of the place and date of the sale. This requires posting notices and the property and the courthouse and ran an advertisement of the sale in a newspaper.

1. Redemption. At any time up until the sheriff’s sale, the debtor may save the property by paying the mortgage note is due. This up right to save or redeem the property before the sale is called the equitable right of redemption. The debtor might also be obligated to pay delinquent interest, court costs, attorneys fees, and sheriff’s fees in order to redeem the property.

2. Sheriff’s sale. The sheriff’s sale is a public auction normally held at the courthouse door, and anyone can bid on the property. The property is sold to the highest bidder and the proceeds are used to pay for the costs of the sale and to pay off the mortgage.

If the property does not make enough money in the sale to pay off the mortgage, the debtor may be able to obtain a deficiency judgment against the debtor for the remaining debt. To obtain a deficiency judgment, the creditor must apply to the court within three months of the judicial sale.

In some states, such as California, deficiency judgments are prohibited if the mortgage secured a loan to purchase 1-4 unit personal residence occupied by the owner.

Post-sale redemption.

After the sale, the debtor has an opportunity to save or redeem the property. The debtor can do this by paying the purchaser the amount paid for the property plus acute interest from the time of the sale. This right to redeem the property on the sheriff’s sale is called statutory right of redemption.

Dependent on the court congestion and the availability of the surety for foreclosures, and judicial mortgage foreclosure may take anything from several months to several years from the time of the default until a sheriff’s deed is delivered to the purchaser, which finally divests from the debtor of title.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today

[tags]foreclosure investing, real estate, real estate investing, bank foreclosures, forclosure, forecloser[/tags]

Tags: bank foreclosures, forclosure, forecloser, foreclosure investing, real estate, real estate investing

Unless you’ve been living under a rock for the past few years, you’ve probably either dabbled in real estate yourself, or at the very least, know someone who has. So, how does someone that’s brand new to real estate start flipping homes? (And let’s clear the air right now IT IS NOT TOO LATE to start investing in real estate).

Follow these 7 tips to start investing in real estate today:

1. Look In Your Own Backyard
The grass is always greener in the other neighborhood, and it’s easy to keep looking for the “right” area. The bottom line is that any area is the “right” area. In order to be effective in the steps 2 through 7, you’ve got to get over the idea that real estate deals only exist in other areas. It sounds clich

Tags: flipping houses, flipping real estate, investing, real estate, real estate investing