A Student called to tell me he had a buyer for his first rehab property. Unfortunately, his repair estimate was off slightly and the appraisal came in low. The net result was he would probably lose $5,000. Not a good start to a rehabbing career but typical of what can happen if you aren’t […]
A student did her first complete rehab and got a rude surprise virtually at the closing table. It seems the lender who approved the well-qualified buyer who had a 20% deposit suddenly asked the student for the expenses associated with the rehab. This lender suddenly decided to use “FNMA Guidelines” on the amount of […]
Door Knocking: I’ve heard it’s successful but it’s my Greatest Fear. #15 in the series
One of the most productive ways to find deals is to actually door knock and talk to the homeowner. My wife, Nancy, loved doing this whenever we bought a property in a neighborhood. As soon as we had access to the […]
Who Do I Ask When I Have a Problem – Greatest Fear #14
This fear is one that can be justified but easily overcome with some understanding about who you should be asking. There are always well-meaning but uninformed individuals willing to help – but their advice is what can really get you in trouble.
Greatest Fear #13 – I Never Get Deals but I Make Tons of Offers
I hear it frequently that students are frustrated with making offers and not getting deals. Their biggest complaint is that other investors and prospective homeowners are paying above the list price for homes. I agree that is happening and quite a […]
Greatest Fear #12 – What if My Advertising Doesn’t Work?
Advertising can be very inconsistent even for seasoned advertisers who find something working today that doesn’t work a month later. Advertising is not designed to close deals with sellers; rather the idea is to give the investor a lead that he must then convince the […]
My Greatest Fear – Hedge Funds and Foreign Buyers Take Every Deal
In the past year or so, major institutional players have come into the real estate market. These buyers are generally thought to be hedge funds set up for the sole purpose of predominately buying single family homes (SFH). Occasionally, they do buy multi-family […]
My Greatest Fear is – “I have no money or credit to buy a property, what can I do?” Series #10
One of the most fascinating and highly profitable aspects of real estate investing is the fact that in many deals, the buyer needs little or no money to actually complete a deal. In addition, investors […]
My Greatest Fear #9 – What If My Buyer Doesn’t Close?
At some time in their career every real estate investor will be faced with this situation. For reasons unknown, your buyer doesn’t return your call before the closing or simply decides he no longer wants to buy it. If you are lucky, he will […]
My Greatest Fear #8 – I’m Afraid of What I Don’t Know
Even after being in real estate investing for 38 years, I still am learning every day. Many new investors use the fear of the unknown as an excuse not to get started. They keep studying and studying with the belief that the more […]