REI Newbie

2013-02-23T10:33:00.002-05:00

Real Estate Finance and Investments By Brueggeman, William B./ Fisher, (Google Affiliate Ad)

A great read with up to date information about today's market.

The Fourteenth Edition of Real Estate Finance and Investments prepares students to understand the risks and rewards associated with investing in and financing both residential and commercial real estate. Concepts and techniques included in the chapters and problem sets are used in many careers related to real estate. The material in this edition is also relevant to individuals who want to better understand real estate for their own personal investment and financing decisions.

Name Your Price Home Repairs

2009-05-14T09:24:00.000-04:00

Service Live is kind of like a cross between Elance and PriceLine for house services; you name the price you're willing to pay for a given job and pre-fund your account, then you get a list of pre-screened contractors who are willing to work for that price, you choose one, and when the work is done, you release the funds.

ServiceLive.com is the only online services marketplace where you can name your price for home repairs and improvements. We help you to take care of your home or office on your terms.

Founded in 2007 as a wholly owned subsidiary of Sears Holdings Corporation, ServiceLive has spent the last year recruiting and conducting background checks on the best service providers in the country across a wide variety of home services - from handymen and home electronics pros to plumbers and computer experts.

10 Potential Monster Problems

2009-05-12T12:39:00.002-04:00

Before buying an investment property make sure you check into these 10 potential disasters waiting to bite you:

Oil Tank - especially underground; if oil leaks into the water supply you've got problems; any leaking needs to be cleaned up via DEP/EPA guidelines, it is quite expensive
Septic System - another pricey replacement if it is close to end of life; always have it checked by a professional before purchase
Termites - don't skimp here, a cheap inspection and warranty beats paying for damage by these critters, remember they don't have to be active for there to be unidentified damages
Lead Paint - if the house was built prior to 1979 you need to check this, remediation can be pricey, a lawsuit will be worse
Water Damage - if the sump pump ever failed or the house is in a flood zone you may see water damage on the lower levels; this could invite mold, weakened beams and walls, and other hidden problems
Sinkholes - more prevalent in some parts of the country; broken sewer lines, old mine shafts, shifting soil and underground water are some sources of this dangerous problem
Streams/Rivers - nearby flowing water can cause problems during unprecedented rain or other weather-related issues
Location - main roads, highway ramps, auto body or gas stations nearby, industrial areas near by, and other undesirable or hazardous locations can really eat away at potential value
Unidentified containers - make sure all unidentified containers are removed prior to closing; it could be oil, paint, or a hazardous chemical which may be difficult or expensive to haul away later
Roof - sagging beams, rotted underlayment, and other problems which could cause widespread damage during wet or windy weather

Check out crime in your neighborhood

2009-05-08T10:37:00.002-04:00

CrimeMapping.com will mash-up reported crime statistics and overlay them on Google Maps. currently it appears limited to CA, FL, and a few other states but as they bring on reporting agencies it should expand. I imagine it will always work better in a city since they keep better statistics and reports.

One of the great features that the website offers is a service that allows users to be alerted of crime in their area. If you live in one of the cities serviced by the website, you can choose to get emails when new crimes are reported in your vicinity.

This is a great way to learn about a new neighborhood before investing, or keep tabs on a neighborhood you own property in to see if it is going uphill or downhill.

REI Video Blogs - Marketing and Education

2009-04-06T11:17:00.003-04:00

Here is a great way to promote your business - use video.

My friend Jon is doing this at his new vBlog REITVSHOW.com

This site is also a great way to learn about real estate investing.
He just posted episode #9 - take a peek.

Opportunity is EVERYWHERE you look. The key is you actually have to be looking to find it and act on it. If you just complain about how nothing happens for you then its probably going to stay that way! If you really pay attention opportunity is right out your front door.

Two Ways To Collect Rent Online

2009-03-01T08:58:00.001-05:00

Smart Rent Online is an easy way to allow your tenants to pay online. You just set up your properties, tenants and rent, and then the service does the rest. It will provide reminders, track payments, notify you of payments and late status. Smart Rent Online processes fund transfer through ACH transactions. For each rent payment transaction, there is a fee of $2.00. In case there is a failed transaction, there will be failed transaction fee of $2.00. You can pass this on to your tenant as a convenience fee, or split it with them. You can try this service for free.

Rentomatic also provides online rent collection with tracking, invoicing, receipts, etc. There is no transaction cost per se, but a flat fee for each unit which includes all of these features.

Rentomatic is more than a payment collection tool, it lets you fill vacancies with ads that post to craigslist, Rentometer, Google base and Oodle, etc. It also tracks your ad response. It has a property management dashboard for all your properties, and can manage your properties, tenants, leases, and income/expense transactions.

COST FOR RENT COLLECTION: $5/mo per unit online processing for all 50 states, and in these 24 states via check or echeck; credit cards coming soon.

COST FOR MANAGEMENT FEATURES: Plans from $9.95/mo (up to 5 units), through $59.95/mo (unlimited)

It appears that you must by a management plan in addition to the rent collection plan if you want to collect rent online. So this is a more expensive plan than the previous, however, if you were looking for an integrated full property management solution then it could be worth looking into.

20 Landlord Tips for Newbies

2009-01-07T09:31:00.000-05:00

20 Tips I've accumulated over the years

Never call yourself a Landlord or Owner - you are a Property Manager
Get a PO Box and never disclose your home address
Allow up to 2 hours for paperwork before a tenant moves in
The quality of your property determines the quality of your tenants!
Use a competent real estate attorney
Document messages you receive from tenants (voicemail, etc.)
Use a specific key for vacant units - and only vacant units
Use cell camera to snap photo of driver license or applicant
Always dial *82 before calling tenants
Never give tenants your cell phone number
Before processing the application make a copy and mark it 'original', and the other 'Copy'
Document the Date & Time that the form was submitted
Send a bill on the 20th for next month's rent
Use the postmark date on the envelope to determine 'lateness'
Offer day shift officer $50/week to park his police car in property parking lot
Charge tenants $25 for missed repair appointments
Review insurance rates every 2-3 years.
Pay tenants referral fee if they find a new (qualified) tenant
Use dedicated bank accounts for your real estate activity
Use the Equal Opportunity Housing logo on all forms (http://www.rrv.net/usarealty/hud%20logo.gif)

Buildium is #1 in Online Property Management

2009-01-05T10:24:00.000-05:00

A nice property management application that comes highly recommended from a friend with over 20 units. Reasonably priced and a free trial to boot.

Whether you're a professional property manager, condo owner or a member of an HOA, Buildium has a property management solution to meet your needs. Completely online with no software to install, Buildium's property management software features full general ledger accounting, budgeting, secure online payments and access for renters, property owners, board members and more.

A new way to pay off your house

2009-01-02T22:22:00.003-05:00

A good article on MSN about Home Accelerator Loans. You could pay off your 30-year mortgage in less than half the time - legitimately, with out spending more per month. You may have seen the ads for UFirst and such....

Here is an article on this topic.

Free Property Management Software

2008-12-13T16:59:00.001-05:00

Simplify'em Property Management Software

Simple, Easy Setup - Be up and running in seconds!
Save Money Instantly - Get a comprehensive list of overlooked write-offs
Get Rent Collected on Time
Tax Time is a Breeze with One-Click Tax Report & Schedule E!

How to get your renters to refer new tenants - let someone pay them!

2008-12-05T09:43:00.000-05:00

IntroIn lets you search for rentals nationwide; connect with referrals; and share info to earn money.

While IntroIn is mostly meant for potential renters to check out life at a particular complex (what's good, what's bad) - it can be used effectively by landlords and property managers as well. Current tenants who refer new tenants get paid a referral fee.

You can - Post a free listing and connect with renters who are hunting in your area. Become a resource, share your knowledge and offer incentives to attract renters. Get bonuses from your leasing authority/management company.

20 Ways to Add Value to Your Multi-Family Properties

2008-11-23T09:15:00.001-05:00

If you own a multi-family property you know that for every dollar you add to the bottom line you add between $8 and $12 to the value of your property. If you use the 20 tips below to add $5000 to your annual bottom line -- for example -- you just made yourself $50,000 if you decide to sell. You can even use this increased value to obtain a larger line of credit, if you don't want to sell, and use that money for other investments.

20 Value Enhancers

Increase occupancy level
Increase rental rates
Add coin-operated laundry and vending machines
Subdivide extra land
Change the zoning
Change the use
Change the allowed density
Change ownership type (condos, etc.)
Sell ownership interests in the property (like a time share)
Allow billboards or cell towers on the property
Lease your water rights
Sell your air rights
Accepts credit cards for rent and charge a fee
Use collection agency for uncollected rents
Lower property taxes (e.g. if crime goes up, state that value has gone down, and thus taxes should follow)
Lower utility costs: electricity; water reducing devices
Renegotiate maintenance contracts
Lower repair costs
Lower tenants turnover rates; every time a tenant leaves, find out why
Refinance the mortgage to get a better rate

14 Markets With Nowhere to Go but Up

2008-07-08T14:30:00.000-04:00

Daily Real Estate News | July 3, 2008

PMI Mortgage Insurance Co., has ranked the nation’s 50 largest metropolitan statistical areas according to the risk that home prices will decline further during the next two years.

The highest risk is in areas where home price growth was the greatest during the housing boom. The lowest risk of prices declining further is in areas where affordability has increased.

PMI identifies these areas as having a less than 1 percent risk of home prices declining further (read the whole list of metro areas ranked on the risk index):

* Milwaukee-Waukesha-West Allis, Wis.
* Cleveland-Elyria-Mentor, Ohio
* Austin-Round Rock, Texas
* Denver-Aurora, Colo.
* Charlotte-Gastonia-Concord, N.C.-S.C.
* Kansas City,Mo.-Kan.
* Columbus, Ohio
* Cincinnati-Middletown, Ohio-Ky.-Ind.
* Indianapolis-Carmel, Ind.
* San Antonio, Texas
* Houston-Sugar Land-Baytown, Texas
* Pittsburgh, Pa.
* Dallas-Plano-Irving, Texas
* Fort Worth-Arlington, Texas

Source: PMI Mortgage Insurance Co. (07/01/2008)

Find a Lawyer - (Almost) Anywhere

2008-06-22T09:38:00.000-04:00

Avvo lets you search for attorneys anywhere in the US (there are some states that are not yet covered) by practice area. These attorneys are rated by users. There are also online legal guides that can be useful, as well as a forum to get free legal advice.

ULTIMATE Online Resource Guide to Real Estate Investing

2008-06-20T21:33:00.000-04:00

I have added my latest resource for investors at all levels. Click on the Paypal widget in the left column if you are interested.

Now is the best time in decades to invest in real estate --There are always several emerging markets in the USA at any given time - yes even right now!

This guide contains over 250 active links of the absolute best real estate investing resources to be found online. Most of them are free.

This is not some Google search and create a lame list
These are all links that I have painstakingly bookmarked over the past 18 months of investing in real estate.

I use these sites each month! I purchase property in several markets throughout the USA and have used these sites and services to invest remotely and locally.

Here is a peek at some of the stuff included in this resource:

# Over 50 links to locate the best deal for pennies on the dollar
# Bank-owned and Foreclosure listings for all areas of the USA
# Government auctions for homes (multiple agencies)
# Find the best financing for any investment property
# Find all lenders and their financing criteria; access the same information that mortgage brokers have (They're gonna be mad at me!)
# Where to find loans specifically for renovating and flipping houses -- even if your credit is bad
# How to find private money and hard money to do as many deals as you want
# Coroporate credit and loans - keep your real estate loans off your personal credit report
# Title and Appraisal companies on the internet
# Get the real value of any investment home via the internet
# Access to MLS systems from various places around the country
# Direct Mailing services - outsource your whole marketing operation to find motivated sellers
# Where to find the best local contractors
# Price any renovation job online using detailed calculators and reference guides
# Get quotes for all rehab work - get the best price
# Look up municipal codes for any area
# Find a great home inspector that provides detailed electronic reports and photos
# Wholesale suppliers for building materials, appliances, cabinets, and furnishings, etc.
# Reference data and intelligence reports on finding the next emerging markets to invest
# Where to find the best brokers/agents
# Crime statistics for all cities and neighborhoods in the USA
# The best landlord information and reference sites
# Online property management software for free
# Online lease and management forms
# Find out how to determine what a property will rent for in any area
# Screening services and credit check services
# Where to find the best property managers anywhere in the country
# Services to collect rent, both current, and past due
# The best sites to sell your property
# How to sell (exchange) your property without paying any taxes
# Build free virtual tours of your houses
# Create professional marketing materials and automatically distribute them online for free
# Over 40 of the best general education and reference sites for real estate investors

All of this for just $9.99! - This would take you months of research to get all this!

Whatever You Do...Don't Buy in an LLC

2008-05-10T21:55:00.001-04:00

Buying my most recent property in Spartanburg, SC has become a royal pain. Besides the fact that my property manager quit the business on the same day I closed (and thus had to scramble for a new one), and besides the contractor I hired wasn't all he was touted to be (I should have expected that one) - there was one thing that still plagues me to this day, 6 months later...

I purchased this property in my LLC. In the current mortgage climate - there is no bank I have found that will fund this. I had several mortgage brokers looking for a loan but there were no takers - most of the banks that used to do this have gone out of business.

I quickly re-titled (using a quit claim) into my personal name but since the transaction was under a year old the banks were looking at the HUD-1 and seeing the purchase in the LLC name.

After finally finding one bank who was willing to do the transaction for a lesser LTV, I found out they are closing there doors on June 15th. So now I still have no loan and I am exposed since I have a renter in the house titled under my own name.

To make matters worse - in the ensuing 6 months the area homes have lost some value so my appraisal has now been reduced by $20k!

I am calling some local banks to see if they will hopefully help rememdy the problem. I also found out that if I had used a trust and made me the beneficiary, that would have been an easier situation in which to get a loan.

Sponsor: Full Color Business Cards from PsPrint

Brian Tracy is the Man!

2008-04-16T19:45:00.000-04:00

Brian Tracy is a leading authority on personal and business success. He is the best-selling author of 16 books and over 300 audio and video learning programs. Brian addresses more than 250,000 people each year, has spoken in 23 countries, and speaks 4 languages.

Brian gives away a lot of free stuff at his site that will help in your business and personal success. I have used some of his products in my real estate business recently and found him to be the real deal. If you go there now you can get your choice of 14 different FREE audio programs!

For REINEWBIE readers, here is a Gift Certificate

3 Places for Half-Priced Homes

2008-04-13T21:09:00.000-04:00

Finding a bank REO or a good foreclosure deal in an inflated market can lead you to a property you could get for 50 cents on the dollar.

If you are looking for some foreclosure bargains (and there are so many now), most people start at www.RealtyTrac.com
. This has been generally a good site for me, but everyone and their brother is using this site.

Here is the next place I go to find recent Foreclosure Deals
.

Next take a look at RealtyStore for 1/2-price homes and Homes as low as $10k!
.

Low Cost Contracts and Legal Forms for Investing

2008-04-10T11:22:00.000-04:00

Are you thinking about becoming a landlord? Are you leasing residential or commercial property? Are you buying or selling a home? Do you wonder what you need to put a property under contract in your state? How about setting up an LLC to protect your assets? Having the right form is crucial --

Here are a few places to get low cost real estate investing legal forms.

I have been a fan of Socrates.com
for a while. Socrates products include a wealth of legal and business forms, kits, books, guides and software for every personal, real estate and business need. These forms are prepared using state-specific requirements.

Another site that offers Attorney-Prepared Legal Forms At More Than 50% Off Attorney Prices can be found at FindLegalForms - including Legal forms for your limited liability company.

How to Showcase Your House for Sale

2008-04-07T11:04:00.000-04:00

I am always looking for more ways to list a property for sale - especially in this market. I posted 50 ways in a previous post to rent your home and I will post a similar one for selling a home soon. In the meantime - Here is something that was recommended to me: Showcase your Property to millions of home buyers with Homescape today!

Homescape provides an easy way to sell a property online. You can showcase it to millions of home buyers each month.

There are over 2 million listings in their National Home Search. They have relationships with over 150 newspapers across the country, allowing us to provide you with the best local real estate content and exposure.

Logos and Business Cards - Do They Matter?

2008-04-04T10:55:00.000-04:00

Yes. Not as much as taking action: getting out there and marketing, talking to homeowners, making offers, and closing on deals - but it does matter. You need to instill confidence that you can perform.

I tried creating my own logo and while it wasn't bad for an amateur, it was noticeably...amateurish. The homeowners you deal with need to have confidence that you are not a fly-by-night company. If you get pricing from the better logo design companies you will see that the going rate is about $250-$300. If you want a professional design for a great price ($149) then check out the Logo Company
(can you guess what they specialize in?) Wired magazine voted The Logo Company "Best In Test" for online logo design companies.

Once you get your logo you can have them printed on your business card for a few bucks by going here: 30% to 60% OFF All Products

Is it possible to talk to a lawyer for free?

2008-04-02T10:46:00.000-04:00

I have been asked by an investor friend to let everyone know about a service he used to help him with a legal issue he had related to one of his properties: LegalMatch
.
You can use this service for free (just Sign-up
and present your case).

LegalMatch's free online legal matching works in a 3-step process, which is easy to complete, highly effective and protects your privacy. The absolute latest in technology enables you to confidentially find the right lawyer for you.

They'll also advise you on next steps for your case. They have many lawyers who specialize in all forms of law, including Real Estate.

Finding a Real Estate Attorney

2008-03-31T08:00:00.001-04:00

Finding a good real estate attorney can actually be hard work. Yes you can't swing a dead cat without hitting an attorney that will do a residential closing, but you will need something better than that as an investor.

Here are some questions you should ask the prospective attorney:

- What percentage of your business is real estate related?
- How long have you been in business?
- How many investment properties do you own/manage?
- Can you assist me in closing properties using other methods such as lease/options, seller financing, land trusts, and subject-to?

As always the best way to find someone is via referrals and/or the local REIA group. If you invest in other areas (non-local) here is a site I used that (so far) has produced a pre-screened list of decent attorneys - LegalMatch.
.

Remember, you still have to ask the right questions:

How much is that House Worth? Get an appraisal online.

2008-03-29T13:23:00.001-04:00

If you are not a real estate agent, getting good comp data is difficult unless you have a good relationship with someone (i.e. my sister is a Realtor). Yes, Zillow and CyberHomes provide good AVS (Automated Valuation Systems) data in a pinch for finding potentially good deals, but when you want to make an offer and it comes down to Brass Tacks (is that still a saying?) - then there are a couple of good services to get electronic appraisals. I have used several in the past, my favorite was FirstAMRES but they have been changing their pricing and it is less affordable than it used to be - although still worth it (this is not a time to save pennies when you could earn thousands of dollars).

A new service that has caught my eye is
Electronic Appraiser On-Line Home Valuations. This service lets you get almost instant house values online which I believe to be more accurate than when I just use Zillow. Try running a few investment properties that you own through this and see if you get the same results.

50 Ways to Rent Your Property Fast

2007-12-09T10:34:00.000-05:00

If you want to rent out a place (or if you are looking for a place to live) I have compiled a list of about 50 websites where you can post an ad for your property. Some cost money - most are free.

First of all if you are considering renting to HUD Section 8 there are two great sites:
http://socialserve.com/
http://gosection8.com/

Also, the following sites don't list ads on their site, but will create nice looking ads for you and automatically post them to many of the sites listed below. The first two are free - the second has a small fee.

http://www.vflyer.com
http://www.postlets.com/home.php
http://www.rentmarketer.com

Also I want to mention that many people are having success with Facebook and MySpace for selling and renting their properties -- it's not just for kids anymore!

Here is the list of sites in no particular order:
http://www.rentquest.com/
http://www.rentalhouses.com/help/general_help.php
http://www.freerentalclassifieds.net/home.asp
http://www.rentalads.com/
http://www.renthousepro.com/
http://tenant.com/
http://www.oodle.com/
http://hotpads.com/main.htm
http://www.edgeio.com/housing
http://base.google.com
https://www.rent.com/manage/
http://realestate.yahoo.com/Rent_your_apartment
http://www.rentalhomesplus.com/
http://craigslist.org/
http://www.rentspeed.com/
http://www.findhomerentals.com
http://www.livedeal.com
http://www.thisproperty.com/
http://www.rentalsource.com/
http://www.backpage.com/classifieds/index
http://www.rentfinders.net/
http://geebo.com/
http://www.findmyroof.com/
http://www.olx.com/
http://www.simplerent.net/
http://www.rentdigs.com
http://www.rentspider.com/
http://tenantplus.com/
http://www.urents.com/
http://www.nationalmultilist.com/
http://www.usrentallistings.com/
http://www.rentvine.com/
http://expo.live.com/
http://www.adpost.com/us/homes_offices/
http://www.sublet.com/Index.asp
http://resource.move.com/RENTNET/resourceCenter.aspx

Post comments on your success with these sites or if you have used others that have worked for you.