Who Walks Out? New Studies Shed Light on Strategic Defaults

Who Walks Out? New Studies Shed Light on Strategic Defaults DSNews A nationwide rise in homeowners’ “negative equity” is convincing more people to walk out on their mortgages, even if they have favorable credit ratings and can afford…(read more)

Source: Who Walks Out? New Studies Shed Light on Strategic Defaults

Why You Need To Stop Acting Rich…

Do you act rich? Do you flaunt your wealth, or pretend to be rich by driving a car you can’t afford?

Well, you need to stop. Thomas Stanley who’s the author of “The Millionaire Mind” (which was fantastic) has a new book out called “Stop Acting Rich and Start Living Like a Millionaire.” Now, I have not read this new book yet, but I do have some advice which could save you thousands of dollars in the long run.

Why Not To Buy A BMW

I started investing in real estate in college and was able to make some decent money in my early 20’s. Then again, any money in your early 20’s is decent. And I ended up wasting a lot of it by doing immature things. For example, I had a BMW. I only had it for a short time because I realized it wasn’t me and I felt stupid driving the car around. I’ve also wasted a good amount of money on going to Atlantic City and Las Vegas.

Yes, I certainly believe in having fun, but you need to be smart and save your money–at least 10 percent of it. However, I’m not writing to you to try to get you to save your money. That’s common sense. The reason I want you to stop acting rich is to protect your assets and keep yourself from being a target of fraudsters.

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

Why You Need To Stop Acting Rich…

Source: Why You Need To Stop Acting Rich…

The Flood Gates Have To Open Soon…

For many real estate investors, these past several months have brought a welcome sigh of relief as homeowners have come into the market in truly satisfying numbers. In many parts of the country the steady downward slide in prices has tapered off and we have been seeing what may be the bottom in terms of further price declines… or NOT!

Are Some Hyping Up the Real Estate Market Too Soon?

The numbers throughout the Summer have been promoted with great fanfare… the Schiller-Case Index and National Board of Realtors proclaiming that prices may have bottomed out and the worst is over. Great news if you can believe it!

While I am delighted that prices have stabilized and even increased in some markets and that home sales over these past several months have been solid and even matching sales volumes from 2005…I have been troubled and what I haven’t been able to put my finger on is this…

With all of the homes going into foreclosure, when will this inventory start to pull this “current” housing recovery down? This Bloombergarticle is not good news… and suggests that we have a long way to go before all of the current and projected foreclosed inventory can be absorbed.

So the million dollar question is this… How long can lenders continue to hold their REO inventory?

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

The Flood Gates Have To Open Soon…

Source: The Flood Gates Have To Open Soon…

A Day in the Life of a Mobile Home Park Owner

Many people ask me what it’s like to own a mobile home park. They expect stories of exciting shoot-outs, drugged-out topless dancers bashing in windows with baseball bats and Jeff Foxworthy humor. Unfortunately, that’s not the case.

I, myself, thought that would be the normal agenda when I bought my first park. The first thing I did during due diligence was to get a concealed handgun license. I was certain that my role would be that of Wyatt Earp in cleaning up trailer town. But again, a day in the gun class and the shooting test were all wasted. It’s just not like that.

“Well, then how is it?” you’re asking. The answer: boring. Really boring. Here’s why.

NOTHING EVER HAPPENS

In a typical mobile home park, the phone might ring once per month for a lot for rent (normally an RV) - that’s the whole sales side of the thing. The yellow page ad comes up once a year, so that kind of handles marketing. I show up in court to evict someone every once in a while. But that’s about as much action as I get.

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

A Day in the Life of a Mobile Home Park Owner

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5 Must Haves Before you Quit Your Day Job for Full-Time Real Estate Investing

Real estate can provide passive income, even allow you to quit your day job and become financially free. For many investors, this is the goal: to be their own boss and to be able to work when they want and where they want.

Here are 5 must-haves before you give up your day job.

1. 30% more monthly cash flow then you need – Surprises happen. Vacancy, maintenance and other expenses arise and you are not guaranteed optimal cash flow on every property every month. Make sure you have 30% more than what you need as a buffer for surprises.

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

5 Must Haves Before you Quit Your Day Job for Full-Time Real Estate Investing

Source: 5 Must Haves Before you Quit Your Day Job for Full-Time Real Estate Investing

Home Prices in 20 U.S. Cities Fell Less Than Forecast

Home Prices in 20 U.S. Cities Fell Less Than Forecast September 29, 2009, Bloomberg News Home values in 20 U.S. metropolitan areas declined less than forecast in the year ended in July, a sign the housing slump that led to the worst recession in seven…(read more)

Source: Home Prices in 20 U.S. Cities Fell Less Than Forecast

Why Real Estate Pros Don’t Need Facebook or Any Other Social Media

You’ve been told that as a real estate professional you have no business ignoring social media. It’s the wave of the future. You’ve been told it’s a great way to earn business and make money. You’ve even been told it’s mandatory. But I’m going to give it to you straight. You don’t need a Facebook profile. You really don’t. In fact, you don’t NEED to use social media at all.

Facebook is a Tool, Only a Tool

Good tools can make your work more effective and efficient. But they do not do the work for you. Facebook, Twitter, etc…these are merely tools. I do internet marketing consultation with many real estate professionals, and one popular concern that people have expressed to me is how to “get social media set up” or how to “get this social media thing knocked out”. I’ve been offered jobs to set up a bunch of social media profiles for brokers, because they don’t have the time to do it themselves.

The response I offer is “I appreciate the job, but if you’re too busy to even set up the profile, there’s probably not a lot of point in you having it!” Social media is not something to “set and forget”. You can’t “knock it out” or “get it taken care of”. A social media profile is only a tool. It’s an awesome tool, but it’s just a tool.

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

Why Real Estate Pros Don’t Need Facebook or Any Other Social Media

Source: Why Real Estate Pros Don’t Need Facebook or Any Other Social Media

If Your Building is 100% Occupied, Your Rents Are Too Low!!!

Income properties are, to many, the ideal investment. Not only does one receive rental income on a monthly basis, but he also gets to enjoy capital appreciation—or at the very least, a solid hedge against inflation. With favorable tax treatment throughout and available 1031 tax deferred exchanges, one would be silly to not at least consider real estate investment.

And so he does. Hypothetical investor Bob purchases his first income property: an 8-unit multi-family in sunny San Diego, California. He loves the fact that it’s in a great location, has a favorable unit mix, and there has only been one vacancy in the last two years—and that vacancy didn’t last very long. As far as Bob is concerned, he has made the perfect investment. How could he do any better?

Raise the rents!

Typically, investment properties in low-vacancy, heavily renter-occupied housing areas that incur vacancies about as often as the Chicago Cubs win World Series have one problem: their rents are too low. If the rents weren’t below market, they would incur significantly more turnover.

That’s the key word: turnover

Turnover is a good thing; vacancies, themselves, are not. What’s the difference? A vacancy occurs when a unit has been turned (i.e. “rent ready”) and it does not have a tenant, or a prospective tenant. Turnover occurs when someone moves out of a unit and another moves in.

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

If Your Building is 100% Occupied, Your Rents Are Too Low!!!

Source: If Your Building is 100% Occupied, Your Rents Are Too Low!!!

Selecting a Realtor in a Small Town

Any real estate investor knows that having a strong real estate team is an essential part of the business. You need your attorney, accountant, title officer, lender and real estate agent. The last two are probably the most important. Today we’ll talk about selecting an agent.

In a city or a large town it’s fairly easy. You probably have hundreds of agents to choose from and you just keep going until you select one that meets your needs.  Choosing someone to work with in a very small town is a horse of a different color. You may need to choose from a very small number and it’s possible that none of them will seem to fit the bill. I was recently faced with having to make that choice myself when it was time to list a property.

Defining the Parameters

Most of my properties are in the small mining town of Ely in northeastern Nevada. It is actually a very good real estate market with a strong demand for rentals. When I first started rehabbing there several years ago I had the opportunity to work with a truly outstanding agent. She knew the market and understood rehabbing and investment. Unfortunately after watching me make a lot more money than she did, she decided to go into rehabbing with her contractor husband and she left the business.

When she left I started working with the first agent’s associate. That worked out well until that agent left the area because of her husband’s job transfer. It was back to the drawing board for me. I defined what I was looking for in an agent and began my search.

This Article is Copyright © 2004-2009 BiggerPockets, Inc. All Rights Reserved.

Selecting a Realtor in a Small Town

Source: Selecting a Realtor in a Small Town

How to Land a Foreclosure House

How to Land a Foreclosure House September 28, 2009, Wall Street Journal Buying a foreclosure home often is appealing to house hunters trying to stretch their dollars. But finding a good one can be a challenge. So, if you're considering the purchase…(read more)

Source: How to Land a Foreclosure House