Terrific Tweets of Angry Birds:  Is Twitter Killing Real Estate Investing?

by Fortune Builders

Like it, love it, hate it or barely use it, Twitter can have a big impact on your real estate investing business and not always for the better…
More than just being an amazingly cost effective and fast marketing tool for real estate investing Twitter is also crucial for managing your reputation and customer service. Customer service? Yes, if you are in real estate investing you are in a customer service business whether you like it or not. It can work for you or against you, it’s your choice.
Your Twitter feed can either be a magical solution for delivering great customer service, building a great brand and doing more deals or it can be a target for flocks of angry birds trying to knock you out of business.
The problem with Twitter for real estate investors is that consumers are now using it as one of their preferred methods of communication. If they don’t get a call back or an email they are going to start blowing up your Twitter page. This isn’t going to look good, especially if they start ranting and scaring off your other buyers and sellers. So beef up your ability to respond to enquiries and follow up quickly with everyone.
No matter how great you are at real estate investing and follow up there are always going to be issues or people who aren’t happy. There will be some seller who feels cheated when they find out you are flipping their house at closing for a fat $20,000 assignment fee or there will be a buyer who’s AC breaks down the day after they buy or a tenant who decides they don’t like the neighbors after signing a lease and holding up your property for 2 weeks. Then there will be other times you royally mess up.
These things happen, they will make it online and all you can do is deal with it. You can curate, clean up and bury away but statistics actually show that a certain amount of negative items on social profiles actually increasing credibility – it looks real. Look at this as an opportunity to wow, build a superior level of trust and win valuable new real estate investing business.
Go out of your way to fix as many of these issues as you can. It may cost you a little money but it is probably one of the best investments you can make. People know that not everything goes perfectly when buying or selling homes, what they want is someone who will be honest with them and they can be confident will make things right when accidents happen.

go to Fortune Builders

Haven't Optimized Your Social Media Yet?   Why Bother Posting?

by Fortune Builders

Have you optimized your social media profiles for the search engines yet? If not, is it really worth posting new updates and now you know why you aren’t getting the results you expected…
Social media optimization is just as essential for real estate investing companies as SEO for your website or blog or even getting out of bed in the morning. Actually it is probably far more important as a productive social media presence could keep on earning you money in your sleep!
Optimizing your social media for Google, Yahoo and Bing is crucial for a number of reasons. It will not only help you get found on the web by those searching homes or trying to sell their homes in your area but it will keep your brand in their face 24/7, especially with Google’s Social Search feature, help to funnel traffic to your real estate investing website and blog and perhaps most importantly make it super easy for prospects to contact you when they really need your services or have someone to refer.
The good news is that social media optimization is actually pretty easy once you know which fields matter to the search engines. For Facebook your page name, image file name, about section and even the beginning of each of your status updates are read by the search engines and make a difference. Plus note that for all of your real estate investing company’s social profiles your address is essential for improve local search visibility and mobile marketing.
For Twitter real estate investing firms should be utilizing names, images and bios to optimize for search engines and increase relevant followers. LinkedIn also offers important optimization capabilities and is probably picked up more than most other social networks. Don’t forget Google+ either. Your headline, employment and introduction are all searchable and should be optimized and include links to your other web assets.

go to Fortune Builders

Real Estate Investing in a Sellers Market:  Can you handle it?

by Fortune Builders

A new seller’s market is beginning to sweep the country and if you aren’t prepared for it your real estate investing business may be about to come to a sudden halt along with your cash flow…
If you heard investors complaining as the housing market fell you are about to hear a lot more whining as the easy days of cherry picking only the properties with the hugest spreads from thousands becomes a thing of the past and getting great discounts becomes a mission. If the seller’s market hasn’t hit you yet buckle up because it is on its way.
Markets like Miami which have been the hottest for real estate investing recently posted record sales in 2011 which even out performed the peak of 2005. Things aren’t slowing down as sales and prices continue to pick up and agents throughout South Florida report it is definitely a seller’s market there already. The same can be said of Silicon Valley and other parts of the country.
For those newer to real estate investing and who didn’t experience investing in the boom years be prepared to work a lot harder. There will still be plenty of money to be made in the coming years but a seller’s market definitely has both its pros and cons. Yes, it will be easier to sell and there will be more buyers for the homes you are flipping but putting properties under contract will get a lot tougher very quickly. Many agents are already reporting it isn’t worth making offers that aren’t at least s high as the asking price while some banks aren’t accepting offers on their REOs if they are contingent on an inspection being done.
What do real estate investing pros need to be doing to strengthen themselves and prepare for a seller’s market? Tighten up your offer and bidding processes and systems, get coaching to improve your negotiation skills, build your brand for more negotiating power, be ready to move fast and develop relationships so that you get the first shot at deals as they become available. Finally, get the best lenders and mortgage brokers on your side as financing is going to make all the difference in who gets the max price for their homes and wins the most buyers in the frenzy that is brewing.

go to Fortune Builders

Real Estate Investing Pros Versus Squatters

by Fortune Builders

Stories of squatters taking over homes and trying to lay claim to them are making it into the news at a rapidly increasing rate. Some of these squatters have even gone as far as to set up websites encouraging others to follow suit and take over a large number of properties from Texas to Georgia. Clearly, this has serious consequences for those in the real estate investing business…
Under ‘adverse possession’ laws these squatters are wreaking havoc on real estate investing company’s plans, causing banks and lenders enormous amounts of frustration, angering neighbors who worked hard to pay for their homes and even victimizing homeowners who are away on extended trips.
Real estate investing pros can’t afford to ignore this growing problem. Acquiring properties which have ongoing title disputes and unwanted occupants can be expensive and crash your cash flow. This makes it absolutely essential to execute your closing day walk-throughs or face potential losses instead of profits from flipping houses. Even after you close your vacant investment properties are prime targets.
So what should real estate investing pros be doing to fight back? This is a great opportunity to collaborate with and build relationships with other investors by watching out for each others properties as well as differentiating your real estate investing company form the competition. Let buyers, especially end investors know exactly what you are doing to prevent this from happening on your homes to make the houses you are flipping more attractive.
Analyze what actions you can take to beef up your security measures and conduct random site inspections. This doesn’t have to cost a ton of money and if anything will save you big time. Keyless locks and outsourcing inspections can be very affordable and actually be combined with your current property management efforts to enhance them and shave overhead.

go to Fortune Builders

How Optimism is Sabatoging Your Real Estate Investment Business

by Fortune Builders

Optimism is a good thing right? Isn’t an elite level of optimism essential for any real estate investing entrepreneur to succeed? Maybe, but it could also be silently setting you up for failure!
A high level of optimism is certainly crucial when starting out in real estate investing. You have big goals that need to be achieved and it is going to take a lot of positive attitude to get you to them, especially when facing the many challenges that will come your way.
Unfortunately, being too optimistic has been one of the greatest downfalls of many who have called themselves real estate investing pros. You should hope that everything goes according to plan, believe that you can make it, that you will sell your next property in record time and for top dollar but what about when things don’t pan out the way you expected? Will you fall apart?
There are real estate investing ‘gurus’ who will tell you that you don’t need to be reasonable or realistic about anything. “If only you believe it hard enough, you can make it happen”. While this is definitely true to a certain extent, especially in the grand picture of things, a hope and a dream won’t always get you though alone. You need to have the right plan, do your homework and take advantage of all the additional tools and real estate education you can get.
You need to be realistic about how much work rehabs take, the possibility that things can take longer to happen than you think, closing costs will be higher than expected and you will often net less than you hoped on your real estate investing deals. Other things will go wrong too. People will mess up and make mistakes which could potentially cost you thousands of dollars.
By hoping for the best and planning the worst or being a ‘pessimistic optimist’, you can take it all in your stride. Plan, where you can, commit to remaining calm under pressure and resolve to simply taking positive action to remedy the situation versus panicking.
If you can do this then you have every reason to be incredibly optimistic about your future in real estate investing.

go to Fortune Builders

Your Biggest Weakness is Costing Your Real Estate Business Big Time!

by Fortune Builders

Unfortunately, most investors fail to recognize one of their biggest weaknesses which costs them many deals, many dollars and many points on their reputations each month. No, it’s not social media, pulling comps or rehabbing…
You can be great at sourcing great bargains on properties, negotiating sweet deals, assessing repairs and marketing your properties like a real estate investing pro but if you are failing to win on the follow up and closing the deal when showing homes your model is broken and you are bleeding away tons of potential profit and business everyday. Whether you are flipping houses, building a rental portfolio or both there are 3 holes in your real estate investing business you need to fix.
1. Follow Up
You can have the slickest marketing in the country, be number one on Google, have a million website visitors a month and 100 incoming call and emails a day on your properties but if you don’t keep on top of follow up you are killing your real estate investing business. Hire a small army of virtual assistants to answer phone or return emails if you have to but not replying on time is not an option. Perhaps you don’t need the extra business today but every burned prospects is worth a thousand referrals and before you know it people are going to start avoiding your listings like the plague.
2. Showing Properties
Who is showing your properties? It certainly shouldn’t be you. You need to be focusing on growing your real estate investing business, not doing low level busy work. If you are great at flipping properties you should have your properties pre-sold, sight unseen. If not, this leaves two options. The first is to bring in a strong closer to meet prospects at the property not just a body, you can’t afford that. The second is to save the cash and put keyless locks on your properties to make them look cooler and enable instant showings. Making sure that you close on every opportunity could mean flipping at least one more deal a month. Multiple that profit by 12 and there’s that brand new Benz or beach vacation you have been dreaming of.
3. Rental Application Fees
May be they work for you but seriously work the numbers before you collect another one. They are a huge turn off, especially when coupled with long approval times and worst of all it is often the best tenants who don’t apply because they don’t feel they should have to wait or jump through the hoops. Ask yourself what is more valuable for your real estate investing business, $50 for an application fee or $400 in cash flow from renting the property today?

go to Fortune Builders

Real Estate Investing Companies: Are you Neglecting your most Valuable Asset?

by Fortune Builders

When it comes to real estate investing most investors and business owners would automatically say that their capital is their most valuable asset but that isn’t likely what entrepreneur Richard Branson would tell you.
In repeated interviews Richard Branson has credited the incredible success of his many brands to his employees. For him they make all the difference and they should be one of your most valuable assets too. If not, it is likely that you either haven’t been doing your best at hiring for your real estate investing company or you haven’t truly empowered them to do their best work.
Hiring right is essential no matter whether it is for a $1 an hour VA, a top gun phone pro, a pretty face to show your properties or a writer to weave magic into your content. However, the first critical mistake that most owners of real estate investing companies make is not just putting the wrong people in the wrong places but completely overlooking the need to get new hires on board with the company mission and vision. Only if they understand what it is you are trying to achieve on a larger scale and commit to it can they really help you achieve it.
This is more valuable to you than you think and for your team members. For most being a part of building something great is worth a lot more than a few extra dollars in their paycheck, meaning that they are more likely to remain loyal, put in the overtime and keep on working for less than longer.
Next you need to truly empower your staff to be their best and to make your real estate investing company the best. Hire great people, ensure they are on the right page and enable them to make the small decisions, based on their expertise which will take more of the load off of you, create a better customer experience and reap more results. This could be coming up with topics for your blog, making an expectation for a tenant, finding a new way to organize your data or trying out a new tweak on your marketing.
They will feel valued, they will do a better job, your brand will benefit and your profits from real estate investing will rise.

go to Fortune Builders

6 Reasons to get into Real Estate Investing.

by Fortune Builders

Perhaps you have caught a glimpse of a few reality TV shows about flipping houses and have wondered if it is for you. It is true that there can be great money to be made form real estate investing but there are actually many reasons to get it. Here are just a few of them…
1. Bigger Paychecks
For most of America there are few businesses to get into that can produce the big paydays that real estate investing can. Even doctor’s salaries pale in comparison to what many investors make. Whether you already have a job and you hate it or it just isn’t ever going to give you the paycheck you crave or you are currently unemployed real estate investing may be just what you have been looking for.
2. Passive Income
If you want to retire comfortably, early or even retire at a reasonable age at all anymore you are going to need more than a couple hundred thousand in the bank. You are going to need an income to live on. By building a portfolio of rental properties which produce passive income every month you can retire early and enjoy life now.
3. Create Real Wealth
Making a lot of money isn’t the same as building real wealth. Rappers can make a lot of money, CEOs of corporations make fat paychecks and many sales people see big paydays. You can even win a few million playing the lottery but building real wealth that will last generations turning your family into ‘old money’ and enabling your future great grandchildren to really pursue their passions is one of the best things about real estate investing.
4. Helping Others
One of the greatest things about real estate investing isn’t about money at all. It is being able to help others. You can help homeowners get out of debt, buyers to put a roof over their family’s heads, young families to give their children the benefits of home ownership and even help others support themselves and enjoy a great lifestyle through real estate investing.
5. Freedom
Real estate investing not only delivers great paychecks but can also allow you to do it in far fewer hours a week than any 9-5. It can take work and effort to get started but with the right real estate investing system you can build a great business that gives you time to enjoy your other passions too.
6. It’s Fun
There are lots of things you can do to make money but investing in real estate and flipping houses is fun and rewarding too. From remodeling houses, to meeting new people, visiting amazing properties and the thrill of the deal you will find yourself easily hooked.

go to Fortune Builders

3 Steps to Maximizing Leads and ROI for Real Estate Investors

by Fortune Builders

It doesn’t always take money to make money, especially when it comes to real estate investing. The following 3 easy steps can boost your lead generation and rocket the ROI of your real estate investing business without having to open your wallet…
1. Respond to Inquires
Are you responding to prospects as quickly as you could be? It is truly a mystery why some real estate investing companies and agents bother to run ads or send out mail campaigns when they don’t bother to pick up the phone when people call. That is just a waste of time and money. How hard is it to at least pick up and tell someone you will call them back, direct phones to a $5 an hour virtual assistant to take down their information or simply set up auto reply messages for your email? Just by answering or replying before the competition you can dramatically increase your profits and deal volume. Don’t launch any new campaigns or do any more networking until you have responded to all your backed up leads and have committed to staying on top of them.
2. Make Every Client Count
Have you been frustrated by the antics of a store clerk or waiter in the last month? How did that make you feel about that brand and spending money there in the future? Ever been blown away by great customer service? Wouldn’t you prefer to spend your money there, even if the same product cost more because you felt valued and were treated right?
Don’t you think your prospects think and feel the same way when dealing with real estate investing companies and Realtors? You may be busy, they may not be educated on the home buying or selling process, they may not be dressed up and may not even be a good fit for your business right now but you may never have the chance to earn their business if you don’t take a few seconds to provide decent customer service.
3. Referrals are Cheaper
Recognize that referrals and repeat business is far cheaper than having to market for new prospects. The better you treat people the more referral business you will get. If it costs $300 to generate a new buyer or seller but just 15 minutes of your time to wow those you are working with now, resulting in a dozen referrals over the next couple of years, which provides the best ROI? It is true that they may not always be served up on a silver platter so remember to ask for the business and now you can market through your client’s social networks to tell their friends and contacts about your real estate investing business easily too.

go to Fortune Builders

Essential Reading for Real Estate Investors: Retirement Planning

by Fortune Builders

It’s true that you might not live until retirement age but what if you do? Are you prepared and do you really want to keep working that long anyway?
Talking about retirement planning may not be the sexiest part of your day but it is absolutely essential to keep in mind. Many get into real estate investing for the promise of fast, easy money and the lure of being able to effectively retire from the rat race early, only to get caught up in the day to day. Without planning and systems real estate investing can actually become more time consuming than your old 9-5 and a 100 hour work week is all of a sudden part time. Or with such easy money and huge checks coming in from flipping houses it can be tempting to get caught up in the high flying lifestyle and just expect the cash to keep flowing through the door. What happens when it doesn’t? What happens when you lose your legs or want to take off for a 6 month backpacking trip in the Congo?
Some of those who have been real estate investing for a while and have been socking some money away may think they have it covered. Though how far is $100,000 going to get you if you income ever stopped coming in or you took a break from flipping houses? When you actually start looking at your obligations and how much you will need to get you through 20-30 years of retirement even a million dollars is nothing. Most will need far in excess of $10 million dollars in order to retire in the style they are accustomed to.
If you are behind on saving for retirement real estate investing is a great vehicle, especially for those who reinvest in it through a self-directed IRA for tax benefits. Flipping houses is a great way to make some quick cash and get ahead while fattening up your nest egg but do not overlook the need to put that money back to work for you to create passive income streams and create systems which you can put on autopilot.

go to Fortune Builders

Will Flipping Houses Still Work Foreclosures Run Dry?

by Fortune Builders

Those who have jumped into real estate investing in the last 6 years have been spoilt with endless foreclosures and other distressed properties for flipping houses. What happens as the massive glut of foreclosures dissipates, will these same strategies really work?
Flipping houses has been incredibly profitable for investors over the last few years. Outrageous discounts and extremely motivated sellers have provided investors virtually unlimited access to endless real estate deals. In fact there are more viable deals available right now than any investor can handle. By improving on their real estate education and building better businesses and systems investors can certainly do a higher volume of deals than ever done before.
However, some markets across the country are already seeing a shortage in inventory. In fact a handful of markets are not just back on track they have even less inventory than we would expect to see in a normal market, while reasonably priced homes continue to fly off the shelves as fast as they are listed. So what happens when the majority of foreclosures have been worked through, when the competition for the few foreclosures that do come on the market is incredibly fierce, when banks sell the rest of their REOs in bulk packages and homeowners decide it makes more sense to stay and fight to stay in their homes than to sell? For a start home prices will stabilize and rise but the question is will flipping houses will work?
New investors who weren’t in the business during the recent bubble years should know that this is when flipping houses really exploded, in a good way. People weren’t being foreclosed on like crazy and there certainly weren’t the endless array of discounted homes as there are today, not to mention mortgage rates were double or triple what they are being advertised at today.
Remember there are two major components to flipping houses for big profits, inventory and buyers. In an up market with fewer foreclosures to weigh down home prices there are certainly more willing buyers. As things get better confidence will grow and lenders will loosen up slightly as well, creating more able buyers.
This enabled investors to consistently buy and flip homes for tens of thousands of dollars more within just days of buying homes, even out of the MLS. Just don’t make the same mistakes which crippled many investors in the last boom. Don’t get stuck with them and don’t overload on debt and fall into the ‘I only need cash flow’ trap. Instead build on your real estate education now and embrace advanced investment model.

go to Fortune Builders

Yellow Star Properties: No Real Estate Rebound Until 2013? Does it matter...

Yellow Star Properties: No Real Estate Rebound Until 2013? Does it matter...: No Real Estate Rebound Until 2013? Does it matter for investing? by Fortune Builders Some are now predicting no real estate rebound unt...

The Dangers of Offering Properties as Rent to Own

by Fortune Builders

Rent-to-own programs often offer amazing deals for those who want to buy a home but just can’t qualify for a conventional home loan right now but are they a good move for owners and investors?
If you have talked to any number of real estate agents about properties you own at least one or two has probably suggested that you offer your properties on a rent to own basis. This of course makes it easy for them move your property and make a commission but is it a smart move? Other investors are doing it and many swear that it is the best way to move real estate investing deals faster in this market but are there dangers no one is talking about?
Running rent-to-own programs can be a very attractive option for real estate investing companies. It certainly drives in plenty of inquiries and new leads. It can be a fast way to get your properties occupied and put in tenants who will theoretically take on more financial and maintenance responsibilities which can increase profit margins. However, there are disadvantages.
For a start it means locking into long term agreements. Often it means committing to lower prices than you could get later and reducing your exit options. Poor quality tenants can also be an issue that cause real estate investing companies big issues down the road. After all there is a reason why these renters don’t qualify for home loans right now.
You also have to ask how solid this real is as a real estate investing exit strategy. Are you really being realistic about how much down payment to ask for? Many of those new to real estate investing see others asking for 20% down or other large figures and think that they can too. Remember that just because another real estate investing company is advertising something, it doesn’t always make it a good idea or mean that it is working for them. If these prospective tenants had that kind of money, don’t you think that is most cases their credit would be good enough to get a mortgage too? Plus you need to know your state laws regarding equity. This could give your prospects and equitable position in your property, technically making them part owners right away, making it excruciatingly painful to evict them even if they don’t hold up their end of the deal. With great cash flow is it better to hold for a couple years then sell while retaining max flexibility?
There are many benefits of rent-to-own for buyers and real estate investing companies alike but make sure you know all of the pros and cons.

go to Fortune Builders

No Real Estate Rebound Until 2013?  Does it matter for investing?

by Fortune Builders

Some are now predicting no real estate rebound until 2013. Could this be true and even if it is does it matter to real estate investors?
First it was 2011 that was supposed to be the year of the great real estate rebound in the US. Then as it got later in the year some began changing their predictions to a rebound in 2012. Now, before we are even there others have come out forecasting that the housing market won’t recover until 2013. So what’s the real deal and how does this affect real estate investing?
For a start these latest predictions completely ignore the markets which are already on the up and which are seeing gains in both home values and sales volume. In fact many markets are seeing very stable figures and returns to acceptable inventory levels, while some are even breaking records.
Is it true that some cities continue to struggle? Absolutely. Some may even see home prices slide a little further. However, all real estate is local. There isn’t a switch to flip or we won’t wake up one morning and the whole country won’t be automatically fixed but progress is being made and real estate investing flourishes all over the country.
There are so many dynamics that affect real estate sales that no one can 100% guarantee where prices will be in 6 months from now or 5 years from now, though for now all signs are positive that we are entering another growth period.
Still, speculative real estate investing should be a thing of the past anyway. Wise investors should be making their money when they buy and shouldn’t have to gamble on the market’s ups and downs, at least not with more than they are willing to lose.
It doesn’t matter where you live or which are you are most interested in investing in, there are real estate investing deals to be found. With the right real estate education and the right strategy it doesn’t matter where the market is headed, there are benefits of investing either way.
Those focused on flipping houses who buy low don’t need to hold properties at all and really don’t have to take on any risk associated with holding or just ‘hoping’ for buyers. While those concentrating their real estate investing on buying and holding shouldn’t have anything to lose either. Providing your properties are cash flowing you can wait out any fluctuations and sell when you are ready, if you ever want to.
not for buying hold or flipping

 go to Fortune Builders

3 Mortgage Programs to Help You Flip More Homes

by Fortune Builders

Flipping houses can be down with no money down and without using financing, especially if you have cash or a network of private money lenders but you will also find the following 3 mortgage programs excellent additions to your arsenal. After all, the more good leverage you can harness and the easier you can make it for others to buy your homes the more real estate investing deals you can turn over.
1. Transactional Funding
Transactional funding is perhaps the most valuable asset that real estate investing pros have on their side today. Yet it is still overlooked or under used by many investors. Transactional funding can be used for funding quick flips, often providing 100% financing, plus closing costs, without credit checks or even appraisals. Of course the one catch that comes with transactional funding is that you have to have a ready and able buyer. If you don’t have end buyers lined up by the dozen yet then you can also simply assign your deals to other real estate investing companies and recommend that they use transactional funding. You may even find your transactional lending sources will pay you for the referrals so you can double dip without taking on any risk.
2. Hard Money Loans
We all know that hard money loans aren’t as sweet as they once were but they are still great tools for flipping houses. Some of these lenders will actually loan you rehab funds too, even if they do put them in escrow and refund you as work is completed. However, hard money loans can also be offered to those purchasing your homes too. There are many buyers out there with bruised but who have cash to put down as down payments, even those who are exiting their homes as short sales now often receive up to $20,000 for relocating and finding another home.
3. FHA 203 (k) Loans
Real estate investing pros often instantly shy away from any type of conventional financing however FHA’s 203 (k) loan program is perfect for investors. It offers purchase and rehab funding in one loan so that you can purchase distressed properties and fix them up without having to put in additional cash of your own. This can be fine if you are using a buy and hold real estate investing strategy. However, but if you are focused on flipping you can also promote these loans to your buyers and let them do all the repair work.

go to Fortune Builders

Need to be Flashy to be a Real Estate Investor?

by Fortune Builders

Do you really need a flash car, a fancy house and a Rolex to become a successful at real estate investing?
You have probably seen other real estate investing pros whipping around in Ferraris, filming videos from their waterfront mansions, spending hundreds on lavish lunches and real estate agents posing next to a Mercedes Benz in the property ads. Money and success can certainly attract more money but does that mean you need to be this flashy to get involved in real estate investing?
Some of those new to the business can find this ‘chicken or the egg’ dilemma frustrating but do these individuals have these things because they are successful or are they essential tools of doing business?
It is true that it might be a little easier to walk away from a lunch meeting with a private investor if you pull up in a decent car instead of your beat up 1997 Chevy but that doesn’t mean borrowing for show is essential or smart for real estate investing success. Don’t get caught in the trap of spending before you have it. Truly profitable real estate investing is about profits not just cash flow. Let your profits pay for your toys after you are financially independent, don’t gamble to get deals.
The most important thing is to be able to talk your prospect’s language, know what they like and what will close the deal for them. Even if you have your eyes set on real estate investing in some of the glitziest neighborhoods in the country, know that it is just as easy to flip a multimillion dollar home as a $50,000 home. If you feel that you need to step up your game a little to close deals with the area’s uber rich then visit open houses, go test drive a Lamborghini and hang out where your prospects hang out. They don’t have to know you took the bus or a are driving a rental ‘because your Bentley is in the shop’.
Dressing the part can make you feel like a million bucks, but it might be better to have a million bucks in the bank. Hold off on that $3,000 suit until you at least have enough savings to get your through the next 6 months without making a penny. Besides you will find many of the world’s elite wandering around in shorts and flip flops most of the day because they can. Plus there is a lot to be said for letting people underestimate you when it comes to negotiations.

go to Fortune Builders

6 Sources of Discounted Homes for Real Estate Investing

Just getting started in real estate investing or old sources of properties running dry? Check out the following 6 sources of discounted homes which may be a great fit for your house flipping business.
1. FSBOs
Believe it or not there are still homeowners out there who have equity or even own their homes free and clear and who are ready to deal. Unfortunately those who have signed up for some for sale by owner sites may have invested thousands in junk marketing but there are nuggets to be found. Data and lead list companies can help you target those with the most equity for a variety of marketing campaigns.
2. Probate Properties
With so many new players and old players jumping into real estate investing today it can make a lot of sense to find a niche and own it. Probate and estate sales could be just the ticket you need, offering discounted homes and motivated sellers.
3. Condemned Properties
More investors are inquiring about real estate investing in condemned homes. You need to be very careful here as there is obviously a reason they are in trouble but you could find some amazing deals which aren’t that difficult to flip if you do your due diligence correctly.
4. Realtors
Real estate investing newbies and long time pros alike often immediately turn their noses up when they hear Realtor. However, more often than not this is because they are told to, not because they have had an endless string of bad experiences using them themselves. Find one or two great ones, negotiate discounted rates and make sure you have a constant stream of homes to look at every morning.
5. REOs
While their is a lot of talk about bank owned REOs going away, at least for the average investor they are still up for grabs right now. You can even often find them by walking into your local bank branch though you may find more luck and less competition approaching smaller banks than the bigger nationwide chains.
6. Wholesalers
For those looking for the best of both worlds; a constant stream of properties offering big discounts, without a huge investment in marketing and hours a week scouting for deals one at a time then hooking up with 2 or 3 great wholesalers might be the answer.

go to Fortune Builders

7 Worst Excuses for Not Real Estate Investing

by Fortune Builders

1. Having to Pay Taxes
Putting off on getting started in real estate investing because you may have to pay taxes on the income you earn is perhaps the most ridiculous excuse of all. That’s like saying you wouldn’t accept $20 million if you won the lottery because you would owe taxes on it. For that matter why work at all?

2. The Market is Bad
There are more opportunities for flipping houses right now than ever before and homes are more affordable than they have ever been. Do you really want to wait until the top of the market to get in?
3. Too Busy
If you don’t make the switch to real estate investing now you will likely never have the freedom you crave. Certainly you can spare an hour a day to kick start your real estate investing in exchange for financial freedom and a lot more free time later?
4. No Cash
If you are short on cash now that is exactly why you need to be in real estate investing. From transactional funding to seller financing to private mortgage lenders there are endless ways to find the money you need to invest in real estate.
5. No Credit
None of the above methods of financing your real estate investing deals requires you to use your own credit.
6. You Don’t Know Where to Start
If you have never purchased a home before getting into real estate investing can seem a little daunting but with so many resources at your finger tips giving your real estate education a quick boost has never been easier.
7. It’s Too Risk
No investment is 100% without risk. However, the best strategies for flipping houses today can be almost risk free. What is really risky is sticking with a day job which may not exist in a year from now and certainly isn’t providing enough for you to build a huge nest egg for retirement.

go to Fortune Builders

Flipping Houses is not Real Estate Investing?

by Fortune Builders

Is flipping houses purely a dangerous way of gambling on the housing market? Should it really all be about cash flow?
Sadly it seems that some still just don’t get flipping houses or at least they haven’t been successful at it or make more money from acquiring rental properties. Though one blogger who recently claimed ‘flipping houses is not real estate investing’ and that it relies on speculation was certainly irresponsible, misleading or at least terribly misinformed. A prime example of why constantly building on your real estate education is so critical.
Flipping houses the right way is certainly anything but speculative. In fact there is really no safer way to get into real estate investing. Buying homes at full market price and sitting on them, hoping to unload them for a profit sometime in the future, now that is an incredibly dangerous and speculative approach to real estate investing, especially if any leverage is used. That is exactly what brought the housing market to its knees.
In contrast, buying low and locking in your profits at acquisition is not just smart but the only way you should approach any type of investment. If you buy low enough you don’t even have to get into rehabbing and you certainly don’t have to wait months on end to get full price from a retail buyer. Right now the focus of the game should be buy low, sell low, flip more houses. If you can get top dollar great. If not make a nice spread and get onto the next one.
Going a step further, those who really take their real estate education seriously will learn how to build a serious buyers list and network. This eliminates months of marketing compared to what some outdated real estate courses may teach but it only makes sense. This way you already have buyers lined up before you make acquisitions, you know how much they can pay and that they can pay. Meaning barring any issues which you should have a back up plan for anyway your acquisitions are almost as good as gold when you put pen to paper.

go to Fortune Builders

Does Your Real Estate Investing Business Need A Mobile App

by Fortune Builders

Are custom mobile apps the Must Have marketing tool for real estate investing companies this year?
Next to video marketing it is widely accepted that mobile marketing is one of the most important differentiators between winners and losers in business during the next 18 months. So does your real estate investing business need its own mobile app in order to compete and win?
There are many ways to improve your mobile marketing capacity and presence without having a mobile app. Optimizing your site for the mobile web, reserving the .mobi extension of your domain name, building on local search marketing and utilizing text and bulk SMS marketing can all enable you to compete in the new mobile world.
However, there is no question that mobile apps are taking over the real estate industry. Real estate investing pros must realize that they are not just another channel for reaching buyers, tenants, sellers, private lenders and other investors for sending repeat messages like social media or for keeping brands at the forefront of prospect’s minds. The best mobile apps are evolving into tools which are hard wired into the daily lives of users and are becoming inseparable from their everyday routines. It’s far better than magnetic marketing which draws people back or social recommendations through friend’s Facebook profiles. It is controlling the matrix that others live in.
How could this new breed of apps work for your real estate investing company? What about an app which showed rent to own tenants how much equity they were building up and helped them keep on track to take out a loan? What about an app which helped prospective first time home buyers improve their credit and manage their everyday spending and savings so that they could buy a home from you faster? Perhaps even a mobile app which calculated buyer’s equity and finances and alerted them to opportunities to invest with you by buying new properties you are flipping or as private mortgage lenders?
Unlike other forms of marketing prospects won’t be tapped into numerous mobile apps for every industry. They will lock themselves into one and grow with it. Will it be yours?

go to Fortune Builders

Home prices post steep decline

Home prices post steep decline: Home prices posted a steep, month-over-month drop in November, falling 1.3%, according to the latest S&P/Case-Shiller 20-city report. Prices fell in 19 of the 20 cities the index covers.

5 Reasons why your Rental Ads are Failing

by Fortune Builders

There is a lot of competition out there amongst real estate investing companies who are all fighting over tenants but the following 5 fatal flaws could be causing prospective renters to automatically pass over your ads…
1. You Look Like an Agent
Just as many of those in the real estate investing business don’t like working with real estate agents, neither do renters, especially if their credit isn’t perfect. You may find all kinds of tools for creating neat looking ads but carefully weigh the benefits of visuals versus effectiveness. Sometimes feeding your own ego is exactly the opposite of what is needed to get results.
2. Your Photos Stink
Many renters won’t even look at ads without pics. However, this doesn’t mean putting up terrible pictures is OK. How much cash flow is this property going to put in your pocket over the next 5 years? Isn’t it worth making sure you have at least half a dozen decent photos? Make sure the toilets are flushed, trash isn’t over flowing and sorry, no one wants to see you standing in their home, unless you really are a super model.

3. Ease of Contact
The easier it is for prospects to contact your real estate investing company the more likely they will. Phone and emails are a must and social links can be a great way to allow people to learn more about you and enter your funnel even if you don’t have a property which is a perfect match for them right now.
4. Too Strict
While narrowing down the number calls you get can certainly help you to maximize your time it can also mean alienating some of the best tenants and missing out on adding hundreds of additional prospects to your lists. You don’t have to advertise application fees and tough screening measures in your ads, even if you do require them.
5. Too Much Money Upfront
This is especially true when your real estate investing business is promoting rent to own deals. It is OK to leave some mystery. Focus on generating the the most leads.

go to Fortune Builders

How to Never Make a Mistake with your Blog Again

by Fortune Builders

Want to boost the results from you blog this year but worried changes may actually work against you? Want to know how to never make a critical mistake again?
Making changes to your web assets or business processes used to be a perilous, expensive experiment which could cripple your business, income and reputation. Not anymore.
Making visual changes to your WordPress blog has never been easier and the same goes for changing the flow of your site. This is important as every minute factor can have a big impact on conversions. Now you can make changes in minutes as a temporary test and always restore to your previous set up if you see a dip in sales or even just the stickiness of your blog.
You can also test out varying styles of posts and keywords and easily keep an eye on your metrics to watch how they perform and affect your traffic figures. However, there can be other moves which could potential have a much larger impact on your blog and business reputation which you simply won’t want to gamble on.
However, now with the speed of social media and the ease of syndicating your blog across the web and through email you can ask questions before you make critical mistakes. Plus this could even help you increase your brand’s buzz. Look at Bank of America and Verizon’s recent stories in the news. They have have started an outcry and outrage at planned increases in fees but they also got a ton of free press and interaction on their social platforms.
This won’t just help you avoid making mistakes either. Asking questions in your blog posts can also help you identify new revenue opportunities including what enhancements you can make to your current offering and what new products or services your prospects are eager to buy that they can’t find.
Perhaps you even have challenges with your blog that we have answered here yet. Just ask and our next blog post could be just for you…

go to Fortune Builders

Flipping Houses in a Bull Market: Time to Switch Strategies?

by Fortune Builders

Flipping houses is about to get a lot tougher. How can you keep the profits rolling in?
Thousands of those who have jumped into real estate investing in the last couple of years to cash in on foreclosures by flipping houses have no idea what it is like to work in an up market. Especially a market where foreclosures, short sales and REOs are scarce. Few investors in the business today have experienced bidding wars or just how tough sellers and Realtors can be when things are good. So is it time to switch up real estate investing strategies?
There are many advantages to flipping houses in a rapidly rebounding market. Properties sell faster, homes can jump tens o thousands of dollars in market value in just days, there are far more buyers and ultimately lenders become a little more lenient. However, this doesn’t mean that you can afford to speculate on purchasing full priced properties and hoping they will go up.
We should certainly start to see the number of foreclosure homes on the market dwindling in many areas of the country by the end of this year. Those who fail to recognize this, prepare and who aren’t already getting the jump on competitors by diversifying their acquisition sources could find deals drying up overnight. For those carrying a lot of debt this can be ruinous.
Don’t worry, this doesn’t mean that you have to suffer hard times ahead. However, it does mean a need to build on your real estate investing education and learn more about the types of distressed homes which are available in every market. Think properties in probate, homes of couples going through divorce, business owners in bankruptcy and workers forced to relocate. Know where to find them, who you need to network with and begin experimenting now.

go to Fortune Builders

Does Creative Real Estate Investing Make You A Criminal?

by Fortune Builders

Can you be creative in putting your deals together without being considered a criminal or is it all a step closer to a new 6’ x 8’ residence with cold floors and bars on the windows?
‘Creative real estate investing’ has almost become a four letter word in many people’s eyes. You can’t blame sellers, lenders, agents and law enforcement from raising an eyebrow when they see the term in the after math of the recent meltdown but this doesn’t mean that being creative is always illegal and it shouldn’t stop you from pushing yourself to reach your full potential through real estate investing.
Of course you should absolutely make sure that you are on the right side of the law. There is far too much heat out there right now and the penalties far too severe for anyone to risk their freedom by committing any type of real estate fraud. You should be getting into real estate investing to increase the amount of freedom you have and improve your finances not gamble them away.
Flipping houses today can require creativity. Creativity and resourcefulness in digging up the gold in great deals, putting together winning marketing campaigns, building networks and attracting buyers to your homes. However, this doesn’t mean you need to resort to anything which will land you in trouble.
Laws and regulations have changed a lot in the last few years but as with breaking any other law, just saying that you didn’t know won’t get you off. It is your responsibility to keep up your real estate education. While many real estate education courses and programs written before the bubble may have been founded on good principals and tactics which worked at the time many, many of them will land you in seriously hot water today.
So by all means let your imagination fuel your real estate investing but make sure you are also investing in continuing education or coaching to stay on top of changes, stay out of trouble and tap into the latest trends.

go to fortune builers

Cash Flow versus Cash Now - Who Wins?

by Fortune Builders

What’s better, real estate investing for lump sums of cash now or relying on cash flow?
It’s the big debate of two different schools of real estate. Building a portfolio of rental properties for cash flow and flipping houses for fast cash now. Which is the smarter real estate investing strategy?
Of course there are pros to both but ultimately what is right for you comes down to your personal goals and needs as well as where you are starting from. If you already have millions in the bank and just need somewhere profitable to park it, somewhere that will produce consistent income to provide for you in retirement then go the rental route by all means.
However, those who need to build up their nest eggs, anticipate the need for large amounts of cash in the coming years or who need to make up for lost savings on other investments then flipping houses for cash now definitely rules.
Rentals are great but if you are leveraging them let’s be honest it is going to take quite a while for a few hundred a month from a property to satisfy your needs and appreciation is never guaranteed. Plus should any of the worst case scenarios happen, your cash flow stalls and you are over-leveraged you could lose everything.
Flipping houses for fast cash means zero speculation, less risk and capitalizing on the time value of money. Of course once you have built up quite a healthy pot of cash you are going to need to put most of it to work for you somewhere and your local bank certainly isn’t as safe as it may have been once upon a time.
So yes, work towards diversifying into some prime rental properties which can be paid off. However, you can also work on building a real estate investing business. A turnkey business model which can run on autopilot providing you with income from flipping houses and rental properties while building its own equity and value which can be cashed in on later too.

go to Fortune Builders

Level Up Your Real Estate Website Rankings: The Lust For Links

by Fortune Builders

Craving the top spot in Google search results? Check out our quick guide to the links you need and the links that will sabotage your rankings…
If you want your real estate investing company’s website or blog to be found and bring in leads you have to get serious about improving your placement in search engine results. If you have done any reading up and research on SEO so far you have probably heard a lot about links. Yes, it can be ridiculously confusing but before you go off and spend the next two weeks building links that will actually kick you down the ranks or gamble on another SEO ‘expert’ take a look at our quick guide.
Back Links
Backlinks or incoming links to your real estate investing website probably create the most buzz, are the most sought after and yet can do a lot of damage, not to mention wasting a lot of your time and resources.
Links to your site will only help boost your rank if they are from quality sites. So all that junk link exchanging and creating a myriad of mirror interlinking sites is usually a waste of time. Also note that while there is often a lot of talk about blog and forum commenting to create backlinks these are now longer anywhere near as powerful as other types of genuine links.
What’s good? High quality, related link exchanges, article marketing and guest blogging.
Outbound Links
Some advice columns out there will tell you you also need to be creating external links from your content on your real estate investing web assets to other related domains for improved search engine rankings. This can help to some extent but again, lots of outbound links to poor quality sites can kill you. Authority sites only and definitely no one who competes with your real estate investing business in anyway.
Internal Links
Perhaps the most commonly overlooked type of links by new real estate investing companies are internal links. These are the links between your own pages. Use keyword specific and focused pages with keyword links between them to improve your rankings.

go to fortune builders

7 Ways to Rent Faster & for More Money in 7 Days

Slash your time to rent and rent for more with these quick fixes…
1. Accept Credit Cards
Start accepting credit cards and online payments for rent and move in costs. It will boost your profits by reducing fraud, making it easier for tenants to pay on time and reduce management time. Of course it will make your properties more attractive and mean tenants can move in faster.
2. No Credit Checks!
Of course this can be dangerous but if all you are getting is tenants applying with weak credit anyway and you can offset the risk then why not? You can still rely on references and do background checks online. Plus you can ask for more rent in advance. Depending on your state laws more deposit money may not help because you can’t spend it but advance rent you can. Often tenants are willing to pay 6 months rent in advance for no credit checks.
3. Staging
Staging can do miracles for the appeal of your rental properties. You can then move your items to the next property or if it makes financial sense offer a furnished option for more. Think appliances, furniture, electronics and even kitchenware.
4. Offer Security
On of the biggest fears of prospective tenants, especially if you are offering any form of owner financing or lease option is if the landlord is financially stable. They don’t want to hand over thousands only to lose it and be back on the street. Make it clear in your ads that you are ‘not in foreclosure’.
5. Rent-to-Own
Offer a rent-to-own option. Just be realistic about how much rent you need for it to be viable and how much down payment you can really expect.
6. Keyless Entry Locks
Keyless entry locks not only give your curb appeal a boost but can also make it a lot easier to enable showings, especially from mobile enquiries, increasing the chances your home gets rented first.
7. Reduce Response Times
Realtors are notoriously bad at returning emails and calls. Claim the business by being the first to respond to rental inquiries.

go to Fortune Builders

Investors Beware of How You Scale Your Business
by Fortune Builders 

The way you are scaling your real estate investing business could be killing your chances of success…
Beginning with the right strategy for scaling and growing your real estate investing business is critical if you want to build up any kind of momentum or manage to stay around. There are 3 factors which catch out a huge number of investors. Are you making these fatal mistakes?
Too Cheap
Many of those new to real estate investing aren’t kicking off with big budgets. Even if you were it is wise to be cautious with your capital and let profits pay for expansion. However, this doesn’t mean going too cheap on your online marketing and branding. If you are tempted to put up junk just to get something up, just don’t. Arguing that you will increase quality as you make money doesn’t work in this medium. You only have one chance at a first impression. It is far better to put up less but make it look and read great than to destroy your image before getting a chance to prove yourself.
Not Diversifying Marketing
You should absolutely have a plan to branch out and add new advertising channels for your real estate investing enterprise as you grow but it is also important not to throw all of your eggs in one basket right away either. It doesn’t matter how great your marketing is, if you are only using one medium you are asking for trouble. What happen if your mail campaign is messed up and lands on a holiday, what if there is an Internet ‘black out’, what if you put all of your money into one telemarketing list and it is complete junk?
Too Fast
It may be true that there are more great real estate investing deals out there today than you can handle and it can be very tempting to charge full speed ahead to lock down as many as possible. However, it is essential to limit the amount of overhead you take on. Expanding too fast can weigh you down with debt and mean a lot of work going into management versus flipping houses. Outsourcing can be a great move and help real estate investing scale in an affordable way though always remember to distinguish between real bottom line profits and quantity. They don’t always go hand in hand.

9 remodeling tips to make your home feel bigger

You don't have to be underwater on your mortgage to feel trapped in your home.

Now may be a less than ideal time to put a house on the market or to take on big debt -- icing your plans to trade up or build an addition anytime soon. But that doesn't mean you're stuck living in an uncomfortable home.

For a few hundred to a few thousand dollars, you can make your place "live" bigger without actually making it bigger, says architect Sarah Susanka, a small-space specialist and author of "Not So Big Remodeling."
Call it thinking inside the box; here are nine creative solutions for cramped homes.
1. Multitask the dining room ...
Cost: $500 to $2,000
If you have an eat-in kitchen, your dining room is probably used for special occasions only.
"Why have a prime spot sit vacant except for two or three holidays a year?" says Susanka.

Housing: The one bailout America could really use

Use it every day as an office or homework room without giving up dinner-party capabilities. Install doors ($300 to $500 each, with labor); add shelves or a cabinet for supplies; and invest in fitted pads to protect the tabletop.
For more flexibility, try a table like homedecorator.com's $629 Mission Table Cabinet, a sideboard that -- amazingly -- telescopes into a full-size dining table.
2. ... and the guest room
Cost: $100 to $3,000
Stop dedicating a whole room to infrequent out-of-town visitors.
With a decent air mattress, futon, or pull-out couch, you can lose the spare bed and use the room for day-to-day needs. (If you go with an air mattress, make sure to choose one with a built-in reversible motor to simplify the inflating and deflating.)
Add furniture, and what was only a guest room can double as a media or game room or home office.
3. Add a powder room
Cost: $3,000 to $6,000
Adding a first-floor powder room is simple if you have an unfinished basement or crawlspace for running the new pipes. Look for an existing room -- a coat closet, say -- and you won't have to build walls.
To save more, forgo the tile. The minimum space required by code is typically 2½ by 4½ feet, but you can often get an exemption to go even smaller.
4. Build a home office closet
Cost: $100 to $3,000
If your family is already bursting the seams of your abode, a home office might seem out of the question. But every household needs at least a small desk for paying bills and to anchor a wireless Internet system -- and you can often fit it all in a closet or armoire.
At its simplest, all you need are five or six deep, sturdy shelves made from wood or a composite product, which can total less than $40 at a home center. In a closet, set the lowest shelf at 30 inches high so you can wheel up a chair.
5. Bring the laundry upstairs
Cost: $5,000 to $7,000
Hiking up and down the stairs with laundry is enough to make anyone wish she could trade up. Instead, just move the machines.
Today's full-size high-efficiency washers and dryers are all designed to stack. You can steal the space -- a little more than four square feet -- from a closet, hallway, or nook.
You'll need to run new pipes and wiring, so being near an existing bathroom helps keep costs down, says Raleigh, N.C., architect Tina Govan. Make sure to include a drain pan to collect overflows or spills.
6. Open the floor plan
Cost: $2,000 to $4,000
A choppy layout of undersize rooms can make any house feel claustrophobic.
"People like the look of older homes, but not the way they function," says Seattle architect Thomas Lawrence.
To open your floor plan without major expense, remove doors from rooms that don't need them. Interior walls can come out for $2,000 to $4,000, unless they support the building or contain pipes -- in which case a window or pass-through may be a more feasible solution.
7. Use built-ins to replace a closet
Cost: $4,500 to $6,000
If you choose to eliminate a closet to expand or enhance your living space, create some built-ins to get back the lost storage. A run of four- to 10-inch-deep shelving along a wall has almost no effect on the size of a room, says Corvalis, Ore., architect Lori Stephens.
And it can handle many times the capacity of a closet. You might spend $4,000 removing the closet and another $2,000 on new built-in cabinetry, or just $500 if you use assemble-it-yourself home-center cabinetry, such as the Billy collection from Ikea.
8. Build a bump-out
Cost: $6,000 to $12,000
Another trick to expand a home without a full-blown addition is called a bump-out. You hang extra space off the side of the house, sort of like an oversize bay window.
Structurally, it can't extend more than about three feet from the existing exterior wall, but it can run nearly the whole length of the building -- enough space to add an eating area to your kitchen or a closet to your master bedroom suite.
Because there's no foundation work, a bump-out costs about $150 a square foot -- or just $100 if you can tuck it under an existing roof overhang.
9. Finish non-living spaces
Cost: $15,000 to $30,000

Send your questions to The Help Desk

Converting a full-height basement or garage into living space gets you an addition at half price. You'll need a floor, ceiling, walls and more, but no structural work, no foundation, and no roof, so it'll cost $50 to $100 a square foot -- vs. about $200 for a true addition.
Attics are fair game, too, but more complicated because you may need to add a stairway and probably extend the plumbing, heating, and cooling systems a flight up. Doing all that brings the cost to around $150 a square foot.  

 

Home Sales Continue to Improve


Home sales ended a difficult year on a high note, resulting in a gain in full-year sales volume.
The National Association of Realtors reported that the annual sales pace in December reached 4.6 million homes, up 5% from November's pace and 3.6% from a year ago.

It was the third straight month of improvement in the pace of sales. The fourth-quarter sales volume lifted full-year sales to 4.26 million homes, up 1.7% from 2010 levels.
"The pattern of home sales in recent months demonstrates a market in recovery," said Lawrence Yun, the group's chief economist. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."
Home prices, however, remained depressed, largely because distressed sales continue to make up a significant part of the market.
The median price was $164,500 in December, down 2.5% from a year ago. For the full year, the median price of $166,100 was off 3.9% from 2010 levels.
Realtors said foreclosed homes sold for an average discount of 22% below market value in December, compared to a 20% discount a year ago. Meanwhile, short sales, which are homes sold for less than the amount owed on a mortgage, sold for a 13% discount, compared to a 16% discount in December 2010.
Foreclosures made up 21% of all sales, while short sales were 12%. Both figures were comparable to 2010.

Homebuyers find a windfall of falling prices

Homebuyers find a windfall of falling prices: The recession took a whack at housing prices, making it great market for homebuyers today.

Foreclosure nightmares

Foreclosure nightmares: With more than 200,000 households receiving foreclosure notices each month, there are bound to be a few mistakes. But for some unlucky homeowners, these blunders carry some serious consequences.

O.J. Simpson faces foreclosure on Florida home

O.J. Simpson faces foreclosure on Florida home: As if being in prison wasn't bad enough. O.J. Simpson's life has taken another sour turn: He's now facing foreclosure on his Kendall, Fla. home.

New home construction gathers momentum

New home construction gathers momentum: New home construction slowed slightly in December after a strong November showing, but was still much more active than a year earlier.

Mortgage refinancers rush to avoid fee increase

Mortgage refinancers rush to avoid fee increase: Borrowers are crowding mortgage offices to refinance before higher fees go into effect.

Snag lower rates with serial refinancing?

Snag lower rates with serial refinancing?: Serial refinancing is usually a bad idea, but there are exceptions that make it a smart move.

Best Type of Property for 1st Time Real Estate Investors?

by Fortune Builders:

What is the best time of property for those new to real estate investing to start with?
You have just finished your real estate investing education program and you are full of inspiration and passion to get out there and make money. So what type of property or deal should you take on first?
Perhaps we should start with some of the things you may want to avoid on your first deal while you get your feet wet and get a better feel for the business.
You may want to avoid:

• Major rehabs
• Homes with structural issues
• Complex commercial property deals
• Taking on a lot of debt which requires large monthly payments

The best place to start real estate investing really depends a lot on your experience with real estate, your resources and which types of properties you are most familiar with.
Don’t Own a Home Yet?
Owning a home isn’t a requirement to start real estate investing but going through the process yourself can teach you volumes about the business. A great way to get started is by buying a multifamily property like a duplex which can give you your own piece of the American Dream which is paid for by the tenant or tenants in the other units. This may not snag you thousands tomorrow but the hundreds or thousands you save on your monthly housing payment can be used to fuel your real estate investing while your property builds equity which you can cash in on to buy your real dream home later.
Low on Cash & Credit?
If you don’t have much cash to invest, your credit isn’t great, your tolerance for risk is low and you need to make money fast then assigning or flipping contracts may be the best move. This means no need to borrow money or be a master of marketing yet. Simply find great real estate investing deals and pass them off or partner with other investors who have the experience and resources for a quick payday.
Properties & Real Estate Investing Strategies You are Familiar with
May be it is purchasing a vacation home in your favorite holiday spot which you can use and rent out for a profit, investing in student housing where your kids go to college, the strip mall your office is located in, the house down the street you know you can get for half of what it is worth and that you know you can resell easily.

Foreclosure free ride: 3 years, no payments

Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.
Among the tactics: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.

• 1165
• 
  
• 42

• Print
• Comment

Nationwide, the average time it takes to process a foreclosure -- from the first missed payment to the final foreclosure auction -- has climbed to 674 days from 253 days just four years ago, according to LPS Applied Analytics.
It takes much longer than that in Florida, where the process averages 1,027 days, nearly 3 years. In D.C., foreclosure averages 1,053 days and delinquent borrowers in New York often stay in their homes for an average of 906 days.
And while some borrowers are looking for ways to make good with lenders and get their homes back, many aren't paying a dime. Nearly 40% of homeowners in default have not made a payment in at least two years, according to LPS.
Many of these homeowners are staying in their homes based on a technicality. There is rarely any dispute over whether or not they have stopped paying their mortgage, said David Dunn, a partner at law firm Hogan Lovells in New York, who represents banks and other financial institutions in foreclosure cases.
"In my experience, they never say, 'I'm not delinquent' or 'I want to pay my bill but I'm confused over who to send it to,' or 'Oh my God, you mean I didn't pay my mortgage?' They're not in technical default. They're in default because they're not paying," he said.

Millions eligible for foreclosure review

Ironically enough, the banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. During the "robo-signing" scandal in 2010, it was revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.
A Staten Island, N.Y. man who owed $300,000 on his mortgage and hadn't made a payment in two years, said his attorney used the robo-signing issue to fight his foreclosure.
In his case, the lender's paperwork included many different papers signed by the same employee. The problem was that the signatures didn't match. The judge dismissed the lender's case against the borrower, although it can be re-filed.
"It looks like I'll be in my home for some time to come," said the homeowner, who asked to remain anonymous. He said he is currently not making any payments on his home.
Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession, said attorney Robert Brown. Since mortgages are often transferred electronically, the official paperwork often gets misplaced.

10 cheap foreclosed homes for sale by Uncle Sam

"My lawyer asked my bank to produce an affidavit that entitled them to foreclose," said a client of Brown's, who lives in Harlem and also asked to remain anonymous. "They couldn't do it."
The case was dismissed, without prejudice, though the lender can try again -- if it finds the paperwork.
In some of the more extreme cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.
The ensuing delays are further harming the housing market. People who stay in homes undergoing foreclosure for years often don't maintain the properties, causing blight and lowering property values in the surrounding neighborhoods, said Dunn.

Home prices: Your local forecast

Then there are the court costs that lenders bear, which will eventually be borne by home buyers as lenders increase their borrowing fees to cover the increased risk, Dunn said.
David Berenbaum of the National Community Reinvestment Coalition (NCRC), a community activism group, disputes the contention that owners are gaming the system for free rent and hurting the housing market.
"Most people do everything in their power to maintain these homes," he said. "They take in relatives, get second jobs and even rent out rooms."
What really needs to be done, he said, is for lenders to work harder to find solutions that allow delinquent borrowers who can afford to make reasonable mortgage payments to keep their homes. 

‘That’s what title insurance is for’

Owen Girard, senior vice president and claims center manager from Fidelity National Title Group (a unit of Fidelity National Financial Inc.), declined to comment on the Baxters’ case, citing company policy.
Girard also declined to comment generally on Fidelity’s policies and guidelines for handling any such claim in which a defect in title is discovered.
So what’s a homeowner to do when, like the Baxters, they find themselves truly stuck in a home that’s unsellable due to legal reasons?
For his part, a frustrated Baxter has taken his case to a lawyer.
Attorney Robert Garibaldi, who is now representing Baxter, says he’s “cautiously optimistic we’re going to get it resolved for him.”
“It’s in both parties’ interests to resolve this situation,” adds Garibaldi.
Asked how several surveys could have missed the encroachment issue and had property lines incorrectly drawn, Garibaldi said it appears that there were several liens “that were recorded improperly.”
“It happens in places where there’s a lot of vacant land and not enough sales to establish clear property lines.” Still, “this should have been picked up,” Garibaldi says. “That’s what title insurance is for.”
He added: “Typically, title companies do a lot of due diligence. They’re pretty careful on doing research and having title abstractors review things.”

‘I want to be compensated’

Asked how he’d like the situation to be resolved, Baxter ticks off a host of things.
He’d like Commonwealth/Fidelity to reimburse him for his legal costs, as well as the expenses he’s incurred trying to fix the encroachment problem. Baxter recently bought a municipal lien on an empty lot to the right of his neighbor in the hopes of acquiring that lot and doing a minor sub-division to resolve the encroachment issue. That has meant more surveys, title work and other acquisition costs.
Baxter also wants to be compensated “for all the aggravation I went through over the years.” And finally, Baxter says he’d like to be compensated “if there is any difference in the price when I sell my home in the future from what it sold for in 2010.”
“Contracts were signed but the sales fell through because of the encroachment,” he notes.
In the meantime, Baxter vows to continue to demand action from Commonwealth/Fidelity National Title, and to insist that the company honor its commitment to him or anyone else who might have purchased title insurance and later found a defect in their title.
“This has baffled my mind,” Baxter says, “on how they think they can get away with this.”

Want to sell your home this winter? Turn up the heat, grab a snow shovel and get to work.

Housing and mortgage trends

• 5 housing trends in winter 2012
• 5 tips for selling your home in winter
• 5 first time homebuyer mistakes
• 6 open house errors to avoid
• 5 tips for buying foreclosures
• First-time homebuying regrets
• Calculate max mortgage amount
• Does it make sense to refinance?
• ARM or fixed-rate mortgage?
• How much house can you afford?

Given the cold, dark and unpredictable weather, selling a home in winter requires more toil -- from shoveling to holiday decorating -- than it takes to sell in summer.
While the number of homebuyers drops in winter, those left hunting are generally a more serious group ready to make a deal now, brokers say. Meanwhile, competition drops as other sellers decide to pull their homes off the market and wait for spring.
"It is a myth that homes don't sell in the winter," says Leslie Mann, an agent with Hallmark Sotheby's International Realty in Hopkinton, Mass. "We have been really busy."
If you are ready to throw some winter open houses, here are a few tips to help home sellers enchant potential homebuyers in winter.
Crank up the heat: Cold houses don't sell. If potential buyers shiver at your open house, they aren't likely to stick around, let alone make an offer. This isn't the time to save on the heating bill. Keep the thermometer at least at a steady 70 degrees. A cold house sends the wrong message. "It doesn't need to be hot; it needs to be not cold," says Ronald Phipps, immediate past president of the National Association of Realtors and principal broker with Phipps Realty in Warwick, R.I.
Get shoveling: Don't let a little snow come between you and the next owner of your house. Get shoveling, and make sure the walkway is clear. If someone has to slip and slide their way into your house, you'll lose the battle before they cross the front door.
Moreover, if you want buyers to attend your open house, make sure they have a place to park. This task can be challenging as snowbanks and drifts accumulate. Don't clear just the driveway -- shovel out some spaces on the street as well, says Rona Fischman, principal broker of 4 Buyers Real Estate in Cambridge, Mass. While you are at it, make sure you don't wind up with big piles of dirty snow near the front door. "If they are concerned about breaking a leg, then they are not paying attention to your house in a good way," she says.
Build a snowman: Nothing says "welcome to your new house" than a Frosty in the front yard ready to greet potential buyers, Fischman says. And why not get creative here? You could dress him up in a Century 21 T-shirt -- or whatever your agency of choice is -- or even put the for-sale sign in his hands, she says.
Decorate, but don't go overboard: Some Realtors suggest stripping a house of all holiday decorations to avoid turning off potential buyers. But that sends the wrong message. After all, buyers are trying to get a feel for whether your house could become their next home. If your house is cold, empty and sterile, that sends the wrong message, Fischman says.
But be careful here. This is not the time to go nuts with plastic lawn ornaments. It might be the season to stow Santa and his reindeer out of sight in your cellar, Mann says. She recalls taking a potential buyer to see a house where the owners had gone over-the-top with Christmas kitsch. "The buyer said, 'I didn't know the Griswolds lived here.' It did not help them at all."
Better to focus on some lighter, classier touches, such as wrapping a garland around the banister on the stairs or putting up a wreath. "It really makes the entryway pop," Mann says.
Become a weather freak, and stay flexible: One thing you can't control during the winter is the weather. It's time to start tuning into The Weather Channel, at least while you're trying to sell your house. When planning an open house, it's better to be prepared for weather changes. If a big storm is headed your way, maybe it's a good idea to reschedule for a new day or push a morning open house into the afternoon, Mann advises. Even if you can lure a few buyers out in the storm, a dark and dreary day is probably not the best backdrop for showing off your house. "You have to have some level of flexibility when selling in the winter," she says.

Read more: 5 Tips For Selling Your Home In Winter | Bankrate.com http://www.bankrate.com/finance/mortgages/5-tips-selling-home-in-winter.aspx#ixzz1jlVoddF0