Is Wholesaling Still Do-Able in '22? (The Whole, Unvarnished Truth)

0
Comments

              Ah, for the good old days of 2009.

              Finding deals was SO easy.

              We didn’t even need a marketing budget; there were literally thousands of bank-owned and short sale deals just sitting right there in MLS, and a day of looking at 15 houses and making offers would usually turn up at least one at literally fifty cents on the dollar.

              Of course, figuring out what “fifty cents on the dollar” meant was a guessing game; so few houses were selling that coming up with comps was nearly impossible.

              And getting those deals sold was a teeth-gritting, anxiety-producing process, too; even at a 40% discount, there weren’t a ton a motivated cash buyers in the market, and when we called 10 who’d specifically identified that kind of property in that area as their favorite, they’d all say, “Yeah, I might be able to get there in the next week or 2”. Buyers saw no reason to go running down the hill with their hair on fire about any particular deal, because there were SOOOO many deals available.

          &
Read More...


Why it’s Hard to Learn Creative Finance (or Anything Else You’re Struggling With)

0
Comments

Why it’s Hard to Learn Creative Finance (or Anything Else You’re Struggling With)

When a topic (say, real estate, or creative real estate), or anything else) is brand-new to you, it's easy to hear, read, watch, whatever it is you do, something that strikes you as true and valuable...

But because your brain doesn't have anything to relate it to, it seems to store it in a place that's not accessible when you want it.

It's like there's a set of organized files for some things (I know how to quilt, or play the guitar, or drive to the grocery store) that if something else comes in that can be related to those "(I'm learning how to make collages, oh, hey, it's similar to making quilts. Here's a ukulele, oh, it feels like a tiny guitar, but oh, hey, the tuning is different this way. I need to go to my friend's house, oh, it's go to the grocery store and then turn left, right, left") it's easy to process and remember.

If there's nothing in there that the brain can relate to what you just learned, the new info seems to go into a junk drawer--or get misfiled.

"They're talking about options on houses. Those sound awesome. Apparently, you need some cash, which I have, and a seller who doesn't really want to sell, whi
Read More...


How Getting a Business Vision Saved My Sanity and Made Me Richer (but Maybe Not the Way You Think)

0
Comments


How Getting a Business Vision Saved My Sanity and Made Me Richer (but Maybe Not the Way You Think)

By Vena Jones-Cox

     Like a lot of excited (inexperienced) ambitious (broke) real estate investors, I had BIG goals when I started out. I mean HUGE.

     Here’s a sample of some of the annual goals I set more than once during the first decade of my real estate career:

  • Own 1,000 single-family rentals. Yep, that seriously made it onto my goal list at one point.
  • Raise $5 million in private money to buy those houses. Hey, makes sense—it’s a related goal.
  • Wholesale 100 houses a year. Why 100? I dunno, sounded like a nice, round number?
  • Have a staff of 10 to run every aspect of my real estate business said the introvert who loves working from her couch.
  • “Get organized” which meant control my time down to the 10 minute increment every day so that my already 14-hour workdays could be more productive.

Read More...


Is it time to sell that rental?

0
Comments

According to a news article by WOSU Radio (and the experience of most of our community), property values in Central Ohio are at a record high. Does that mean it's time to sell?

As with all great real estate questions, the answer is, "It depends".

If you have rentals you'd rather not own, selling soon might get you the highest price on a property you don't want anyway. If you're good at finding distressed and low priced deals, it might be an opportunity to do a 1031 exchange into a rental you'll like better in the long run.

But if you bought your rental for long-term income and wealth building, believing that the market might be topping out (we don't believe that, but we don't have a crystal ball, either) is no reason to sell. The increased value is adding to your wealth in a non-taxable manner, and even if prices drop drastically, your income probably won't.

Getting rid of properties that have turned out to be too far, too management-intensive, or too unprofitable is always a good thing, and although we might not be at the top of the market just yet, now is a good time to divest yourself of those losers. But keep the keepers: jumping in and out of the market is NOT a good way to build wealth in real estate!

What’s Holding You Back?

Minnesota Real Estate Investors Association, Inc.

8
Comments

We live in uncertain times.  After the mortgage meltdown and the almost collapse of the financial industry, the real estate market has been going through several ups and downs.  The median sales price in my area went from its peak of $238,000 in June 2006 to a low of $138,500 in February 2012, back up to $210,000 in June of 2013 and we are on our way back down, currently sitting at $179,850 for January 2014.

There have been some wild swings in the past few years and the people that understand that and have kept a close eye on the trends, and have not been afraid of the market have made a lot of money the past few years.  However, I have seen most people sitting on the fence and haven’t done anything.  I can understand the feeling of uncertainty and being afraid to make a mistake, but let’s face it, if you’re afraid to make a mistake, you will never make it big.

You’re probably thinking right now “That’s easy for you to say Mike; you’ve been at this for a long time and have more experience than I do”.  While for many of you, that may be true, however, for your info, I have probably made more mistakes than most of you ever will, and I am still making mistakes.  But that is not holding me back.

That is one of the most common traits I see from those who are successful, even in this wild and uncertain market.  They are not afraid to make a mistake, and often do, but they don’t let that hold them back.

Everyone wants to minimize their risk of making a mistake and losing money or damaging their credit, myself included.  However, I see way to many people with paralysis of analysis and never do anything.  So what’s holding you back? 
Read More...


Can You Survive Dodd-Frank?

Minnesota Real Estate Investors Association, Inc.

0
Comments

Over the past, the most common question I have heard is “what are you going to do about the Dodd-Frank Act”?  And my common responses have been, “not worry about it” or “understand it and work around it”.  So what is your response, and will you survive not that the dastardly bill that is now in full affect?

Many people are worried that this new law that has been in effect since January 10, 2014 will put them out of business.  There are many new regulations pertaining to lending and one segment in particular that affects investors the most, especially in the coming years with our current economic situation and that is seller financing.  People are worried that these new regulations will have a dramatic impact on our business, and I have heard several people predict that parts or all of the Dodd-Frank law will be repealed.

I don’t put a lot of faith in congress repealing anything these days.  Look at Affordable Health Care for instance; does it look like that will be repealed?  No, so why would you expect the Dodd-Frank Act to be any different?  The Dodd-Frank Act was a response to the sub-prime mortgage meltdown crisis to put the blame on a segment of the economy that was politically acceptable and to repeal it now would be an admission to that fact.  In an attempt not to offend certain political ideologies here, I will not get into the cause of the sub-prime mortgage meltdown crisis, or the political reasons for appealing the Dodd-Frank Act, but I will explain what it means to us as investors.

Here is the simple break down, as I understand it.
Read More...