May 20 2008

Market Analysis Tool

Published by under General

2500% ROI??

20k passively into 13.4 Million in 26yrs? Get outta here.

 

What if you knew that home values, in a particular area were expected to increase 22%?

As a smart investor, you’d leverage yourself to get your name on as many properties in that area as soon as possible.

And if you knew that home values were expected to take a dive where you like to invest, you might decide to cash in your property, or at least be wise enough scrutinize any new properties purchases.

Its called market timing. Buy low, sell high. If you’re familiar with the term technical analysis, you’re probably into stock trading. Stocks can be volatile. Invest twenty thousand dollars in stocks today and next thursday, it could be higher, it could be lower. Successful traders read stock charts, look at the industry sector in general, compare moving averages and act accordingly. Historically you just couldn’t easily do that with home prices. You can’t go to google finances and plug in your zip code and quickly see what home prices will do. And since you can’t do that, you can’t compare other markets to find out what the better investment is.

But now you can. I’ll let you see who has developed this tool and how you can get access to charts like the following.

Home Prices

If you’re not a registered member of Stanhope Investments please take the time to register, it gives me a stronger negotiating leverage. After that, check out this innovative tool.

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May 07 2008

Sweeeeeeeeeet.

Published by under 2116 Bixler

Hey eric… will have lease signed by this weekend… they will be moving in
at the end of the month…

Raheel Virani
HomeVestors – Virani Properties, Inc
E-Mail: Raheel.Virani@Homevestors.com
“HomeVestors, America’s #1 Home Buyer”

Suddenly life is looking sweet again. Just need to hear the details.

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May 07 2008

Lease Purchase Agreements

Published by under General

I went to my regular monthly meetup group hosted by Antoine Pirson of Wells and Bennett. It was a small group which was great, lot of my questions were answered. Guest speaker Debbie DeSousa was as a another investor put it, “a smart cookie”. She was extremely helpful and a firm believer in real estate as a sound investment. I questioned how to come up with the cash necessary to do more deals. The answer of finding a low debt-to income partner was brought up. She also turned me onto the idea of taking my existing, negative cash-flowing property and selling it with a lease option to my tenant. I’d reduce the overhead of the property management and increase the income. Not to mention I’d have the added benefit of a signed lease, which would make lenders happy.
I think she also liked my marketing ideas although she and Antoine were decidedly against the internet.

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Apr 28 2008

2116 Questions answered.

Published by under 2116 Bixler

Score. I got a call back from Raheel this morning. He promised:

  1. The tree will be taken out in 5-6 days.
  2. The grass will be cut and the window fixed before the appraiser’s visit.

He also put me in contact with another lender, a bank named Flagstar Bank. Apparently they keep a majority of their loans in house. So thats good. I did have to pay for the appraiser. So add another $450. Total is now up to $950 out of pocket.

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Apr 24 2008

2116 Bixler vs. Tree

Published by under 2116 Bixler

A few problems as noted by my insurance agent:

  1. 35 foot pine which according to my guy could fall on the house or the neighbor’s with a gentle breeze.
  2. Lack of a renter. State Farm doesn’t like to insure vacant homes. Just not good policy.
  3. The back yard is a bit of a jungle.
  4. Exterior needs pressure washing
  5. Replacement window pane.

Its been over 24 hours. No reply from three phone calls. Judgement so far of the HomeVestors team, could be quicker on responding

In other news. “okay, I’ll check it out and take care of it.” Thats a phrase you never hear anymore. No one will look out for your interests better than you personally. There’s an automated site for rent collection. I really need to look into that.

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Apr 21 2008

Refinance of 2116

Published by under 2116 Bixler

Here’s an interesting tidbit. One of my tenants has ended a year long lease which automatically switches to a month to month lease. As a result, I may have difficulty closing on the refinance loan for Bixler.

I’ll have my property manager to contact the tenant to sign another year lease. Sounds like a good opportunity to raise the rent. Re-sign or pay an extra $30/mo. for the flight risk.

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Apr 20 2008

2116 Bixler Update

Published by under 2116 Bixler

Work is almost complete and I’ve been told that there atleast three parties interested in purchasing the property. Wish me luck.

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Apr 04 2008

2116 Bixler

Published by under 2116 Bixler

2116 Bixler CircleTo help out my fellow human beings I decided to post my experience and thus I started this blog. 2116 Bixler is the property that inspired it. If you’d like to know more about real estate investing, I plan to share my knowledge and experience, so check out Real Estate Investing Basics. When you’re ready, I hope we can do business together some day. Legally speaking these are just my experiences, I make no guarantees.

Now on with the show.

March 2008. I needed cash. I had some income producing properties and I wanted to acquire more. I decided it was time to get into the rehab business. I had lived in Atlanta, a market where properties are relatively inexpensive. I felt comfortable knowing what a property should sell for in certain areas, and I knew that while it will cash flow negatively while it is under repair and not yet sold, I can afford it. I can’t say the same for where I live now.

April 4th, 2008 The property was advertised for $99k on the famous [and yes sometimes infamous] homevestors.com. The area supports prices around $135-$150k. I talked with Raheel Viranni of Viranni Properties LLC, a franchise of homevestors.com. We set up a deal where he would organize the hard money loan for $99k plus the cost of repairs, he would manage the repairs (estimated at three weeks), put me in touch with a refinance loan consultant and market the property for sale to a tenant buyer. The strategy is to find a tenant with decent job history that needs a bit of help with credit and wants to purchase the property. I also plan to refinance the hard money loan as soon as possible. The first payment on the hard money loan is May 1st. Closing on the refinance loan is scheduled for April 25th.

So far total out of pocket to me has been a $500 earnest money deposit.

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