Roberts Investment Properties

2011 New Home Sales Worst Ever

noreply@blogger.com (Roberts Investment Properties LLC) — Thu, 26 Jan 2012 16:09:00 +0000

WASHINGTON – Fewer people bought new homes in December, making 2011 the worst sales year on record.

The Commerce Department said Thursday new home sales fell last month to a seasonally adjusted annual pace of 307,000. The pace is less than half the 700,000 that economists say must be sold in a healthy economy.

About 302,000 homes were sold last year. That's less than the 323,000 sold in 2010, making 2011 the worst year on records dating back to 1963.

The median sales prices for new homes dropped in December to $210,300. Builders continued to slash price to stay competitive.

Though new-home sales represent less than 10 percent of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the National Association of Home Builders.

A key reason for the dismal 2011 sales is that builders must compete with foreclosures and short sales — when lenders accept less for a house than what is owed on the mortgage
Builders ended 2011 with a third straight year of dismal home construction and the worst on record for single-family home building. But in a hopeful sign, single-family home construction, which makes up 70 percent of the market, increased in each of the last three months.

See the original post at www.foxnews.com.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

FHA Waives Anti Flipping Rule Through 2012

noreply@blogger.com (Roberts Investment Properties LLC) — Sat, 07 Jan 2012 09:47:00 +0000

FHA rules typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, however, the agency waived this regulation, and later extended the waiver through 2011.

The new extension announced late last week will permit buyers to continue to use FHA-insured financing to purchase HUD-owned and bank-owned properties, no matter how long the homeowner has held the title, through December 31, 2012.

FHA says the waiver will allow homes to resell as quickly as possible, helping to stabilize real estate prices and revitalize communities experiencing high foreclosure activity.

“This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Carol Galante, FHA’s Acting Commissioner. “FHA remains a critical source of mortgage financing and stability and we must make every effort that to promote recovery in every responsible way we can.”

See the original post at www.dsnews.com.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

3 Easy & Cheap Things I Can Do To Help Sell My House Fast

noreply@blogger.com (Roberts Investment Properties LLC) — Wed, 31 Aug 2011 02:59:00 +0000

With this tough market, sellers are looking for the edge to help sell there property with dropping a lot of cash on a new make over.

Below are three inexpensive ways to help sell your house fast.

(1) Curb Appeal

Yes you've heard this before, but it is as simple as mowing the lawn ... regularly. Don't forget to trim the shrubs. Last but not least, you have to water the pants (especially those pretty flowering plants that scream color).

(2) Good Scent

Yes this goes without saying, but we've lost several buyers in the past. Because they didn't particularly care for the smell of the home. The solution is as easy as purchasing a Glade Air Fan and some scented oils.

(3) Liven Up The Bathrooms

Does your white bathroom look cold? We turned away many potential buyers in the past, because the didn't like the bathrooms. An easy fix is to make them warm again. By this I mean give your bathroom new life by adding color. Towels and a new shower rod /curtain combo are inexpensive ways to lively up the appearance of your bathrooms. Candles also add a nice touch. You can never have too much light.

Remember every little detail counts, and your buyers are paying more attention that you think. Try to see the house from their point of view. If you use these three tips, then it will give you the edge over your competitors without spending a lot of money.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

How To Use Social Media In Your Real Estate Market

noreply@blogger.com (Roberts Investment Properties LLC) — Wed, 13 Jul 2011 15:33:00 +0000

Ever wonder how social media ties into real estate, particularly in your market? We all know that Social Media has exploded over the last few years, and has become a cornerstone for marketing and networking in real estate.

Here are three tips for you to throw your hat into the PR ring. Follow this advice, and hopefully you’ll be seeing your name in ink in no time.

1. Befriend your local media

2. Join the Virtual Conversation

3. Help a Reporter Out

See examples of the above three at www.Trulia.com.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

Report Shows Real Estate Investors Buying Homes With Cash In Janurary

noreply@blogger.com (Roberts Investment Properties LLC) — Thu, 24 Feb 2011 12:51:00 +0000

Investors snap up cheap homes, and new buyers miss out!

WASHINGTON -- Home sales are starting to tick up after the worst year in more than a decade. But the momentum is coming from cash-rich investors who are scooping up foreclosed properties at bargain prices, not first-time home-buyers who are critical for a housing recovery.

The number of first-time buyers fell last month to the lowest percentage in nearly two years, while all-cash deals have doubled and now account for one-third of sales.

A record number of foreclosures have forced home prices down in most markets. The median sales price for a home fell last month to its lowest level in nearly nine years, according to the National Association of Realtors.

Lower prices would normally be good for first-time home-buyers. But tighter lending standards have kept many from taking advantage of them. With fewer new buyers shopping, potential repeat buyers are hesitant to put their homes on the market and upgrade.

Cash-only investors are most interested in properties at risk of foreclosure. They can get those at bargain-basement prices.

"The cash-rich investors can come in and get foreclosed properties at incredibly favorable prices," said Paul Dales, senior U.S. economist for Capital Economics. "The average Joe can't take advantage because they simply cannot get the credit to buy."

Sales of previously occupied homes rose slightly in January to a seasonally adjusted annual rate of 5.36 million, the Realtors group said Wednesday. That's up 2.7 percent from 5.22 million in December.

Still, the pace remains far below the 6 million homes a year that economists say represents a healthy market. And the number of first-time home-buyers fell to 29 percent of the market - the lowest percentage of the market in nearly two years. A more healthy level of first-time home-buyers is about 40 percent, according to the trade group.

Foreclosures represented 37 percent of sales in January. All-cash transactions accounted for 32 percent of home sales - twice the rate from two years ago, when the trade group began tracking these deals on a monthly basis. In places like Las Vegas and Miami, cash deals represent about half of sales.

In the three states where foreclosures are highest, at-risk homes make up at least two-thirds of all sales. In Florida, 63 percent of sales in January involved homes that were at risk of foreclosure, according to a Campbell/Inside Mortgage Finance survey. And in Arizona and Nevada, a combined 72 percent of sales involved those homes at risk of foreclosure.

A major barrier for first-time home-buyers is tighter lending standards adopted since the housing bubble burst. These have made mortgage loans tougher to acquire. Banks are also requiring buyers put down a larger down payment. During the housing boom, buyers could purchase a home with little or no money down.

The median down payment rose to 22 percent last year in at least nine major U.S. cities, according to a survey by Zillow.com, a real estate data firm. That's up from 4 percent in late 2006 - as the housing bubble began to burst. The cities included some of the nation's hardest hit markets - Las Vegas, Phoenix and Tampa, Fla. - as well as areas that are rebounding, including San Diego and San Francisco.

That has prevented many from buying, even when the median price of a home fell in January to $158,800. That's a decline of 3.7 percent from a year ago and the lowest point since April 2002.

"If you can get the financing, it's a great time to buy a home with prices this low," said Patrick Newport, U.S. economist with IHS Global Insight.

Many potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further. High unemployment is also deterring buyers. Job growth, while expected to pick up this year, will not likely raise home sales to healthier levels.

With mortgage rates rising, mortgage applications have been volatile. They're now near their lowest levels in 15 years. Economists say it could take years for home sales to return to healthy levels.

"Home prices continue to languish," said Steven Wood, chief economist for Insight Economics. "Any recovery will be difficult to sustain given the still-large supplies of homes for sale and distressed properties."

Last year, home sales fell to 4.9 million, the lowest level in 13 years. And even that number, some say, was overstated.

CoreLogic, a real-estate data firm in Santa Ana, Calif., said it's found that 3.3 million homes were sold last year, far fewer than the National Association of Realtors' 4.9 million figure. CoreLogic has suggested that the Realtors figure is too high.

Since 1968, the Realtors group has produced the monthly report on the number of previously occupied homes sold. The group serves as chief advocate and lobbying arm for real estate agents. It says it's reviewing its 2010 yearly estimate.

One obstacle to a housing recovery is the glut of unsold homes on the market. Those numbers fell to 3.38 million units in January. It would take 7.6 months to clear them off the market at the January sales pace. Most analysts say a six-month supply represents a healthy supply of homes.

Analysts said the situation is much worse when the "shadow inventory" of homes is taken into account. These are homes that are in the early stages of the foreclosure process but have not been put on the market yet for resale.

For January, sales were up in three of the four regions of the country led by an 7.9 percent rise in the West. Sales rose 3.6 percent in the South, 1.8 percent in the Midwest and down 4.6 percent in the Northeast.

The January increase was driven by a 2.4 percent rise in sales of single-family homes. It pushed activity in this area to an annual rate of 4.69 million units. Sales of condominiums rose 4.7 percent to a rate of 670,000 units. See the original post at www.MiamiHerald.com.

Real Estate Direct Mail Seller Leads

noreply@blogger.com (Roberts Investment Properties LLC) — Sat, 05 Feb 2011 15:02:00 +0000

Seller leads can be generated from a number of different sources. Often times real estate investors will use methods like networking, sinage, internet and direct mail to find their deals.

Using direct mail, the investor has the opportunity to target exact property area/locations that they so desire. A great website to find public information for direct mail is publicrecords.netronline.com . It's a nationwide directory. Choose your state and county and if provides info for your clerk and recorder, tax assessor, treasurer and more. This affords the investor to search by zip code or neighborhood.

FHA Anti Flipping Rule Extended In 2011

noreply@blogger.com (Roberts Investment Properties LLC) — Thu, 20 Jan 2011 01:33:00 +0000

There's good news for home buyers and real estate investors. The troublesome HUD rule banning investors from selling a property within 90 days of their purchase to an FHA buyer has been lifted for one year starting on February 1, 2010.

It's now one year later, and FHA has decided to extend the "anti flipping rule" for an additional year.

"Reporting from Washington — One side effect of that policy had been to stifle purchase-and-renovate projects by legitimate, small-scale investors who buy houses after foreclosure or loan defaults and then resell them in substantially improved condition. In many parts of the country, first-time and moderate-income buyers often sought to buy these fixed-up houses using FHA-insured mortgages with 3.5% down payments, but were prevented from doing so by the "anti-flipping" rule."

See the original post at www.realestateforeclosuresinvesting.com.

How Robert Kiyosaki Sees Mortgage Rate Resets

noreply@blogger.com (Roberts Investment Properties LLC) — Mon, 03 Jan 2011 22:04:00 +0000

"If there is another real estate crash, it’s people like me (Robert Kiyosaki) -- people who pay their mortgages -- who might be the biggest losers."

Looking at the chart, it’s easy to see the eye of the storm. The second half of the storm is about to hit.

The leading edge of the storm was the subprime mortgage defaults, the storm that hit in 2007. The trailing edge of the storm will be the defaults of people who are solid citizens, people who have good jobs and good credit.

How severe the second front of the storm will be is yet to be seen. If there are more people who don’t want to pay for a house that is going down in value, the second half of the storm will be very severe.

Read Robert Kiyosaki's entire post at www.finance.yahoo.com.

Tips For Showing & Selling Houses This Holiday Season

noreply@blogger.com (Roberts Investment Properties LLC) — Sat, 11 Dec 2010 20:48:00 +0000

If your home is currently listed for sale? Below are some tips for showing - and selling - your home during the holiday season.

1. Don't, if you don't have to.
2. Ditch the holiday decor or make it meticulous.
3. Set a few, clear "no show" dates and times.
4. Expect some inconvenience and irritation.
5. Engage in safe, sensory staging.

See the original post at www.Trulia.com.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

Rapper Vanilla Ice Flips Houses In Florida

noreply@blogger.com (Roberts Investment Properties LLC) — Wed, 20 Oct 2010 02:55:00 +0000

Vanilla Ice was most famous for his rap hits from the early 90's. Now Robert Van Winkle is flippin mansions as "cool as ice."

The DIY Network is debuting The Vanilla Ice Project. Rob is remodeling homes in Palm Beach, Florida.

New York Times (NYT): Tell me about the house in Palm Beach.

Vanilla Ice (VI): It was a tax-lien property. We auctioned on it. The house, before I even touched it, already appraised at over $800,000, and I got it for $400,000, so I had a lot of room to play with. It was completely gutted — they took every cabinet, every sink, every toilet, every door and door frame.

VI: It worked out good for me, because it shows really nasty on the show, and then we fix it up amazing. I use a lot of new things in this house that people have never seen in home building before, like ultra-modern, cool, high-tech things that even if you don’t care about Vanilla Ice you’re going to be entertained by. [Ed. note: EVEN if you don't care about Vanilla Ice!]

NYT: Like what?

VI: Most people aren’t accustomed to seeing mood lighting. If you’re in a bad mood, the lights will go red, and they’ll go blue if you’re in a good mood. [Ed. note: IT'S NOT A HOUSE, IT'S A HOME!]

NYT: How does that work?

VI: There’s some kind of sensor, like I guess a mood-ring sensor thing. I really don’t know, I still can’t figure out how it works, but it’s amazing. They’re all done in fiber optics. When they’re off, you can’t tell they’re in the house. [Ed. note: Ah yes, state-of-the-art mood-ring sensor thing lights.]

See the original post at www.videogum.com.

Review: Jeff Adams REO Riches Launch

noreply@blogger.com (Roberts Investment Properties LLC) — Tue, 12 Oct 2010 01:13:00 +0000

With REO's (bank owned properties) becoming more mainstream than ever before, investors are trying any way possible to get their hands on the pick of the litter. Jeff Adam's www.REORichesFormula.com is the latest hands on real estate investing course that shows investors the blueprint for finding such deals.

Those that already know of Jeff Adams know that he is an ex-fireman turned real estate investing extraordinaire, turned fireman ... for fun. Since Jeff's early days as an investor a lot has changed, especially the knowledge that he has gained from investing. In his REO Riches Formula, Jeff puts all of those years of real world experience to the test.

The Course: “REO Riches!” A potent combination of Jeff’s 15 years experience, culminated into one package… plus the latest research on the most effective REO techniques that are working NOW…

Jeff Adams goes into much detail about structuring, analyzing and flipping bank owned properties. He calls it the Ultimate Real Estate Investing Shortcut! The blueprint has just been released at www.REORichesFormula.com.

Bank of America Halts Foreclosures Nationwide

noreply@blogger.com (Roberts Investment Properties LLC) — Sun, 10 Oct 2010 20:01:00 +0000

The nation’s largest mortgage lender, Bank of America announced Friday that it is expanding its foreclosure moratorium from 23 states, as announced by the bank last week, to include all 50 states.

The company explained in a statement, “Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed.”

The company added, “Our ongoing assessment shows the basis for foreclosure decisions is accurate. We continue to serve the interests of our customers, investors, and communities. Providing solutions for distressed homeowners remains our primary focus.”

BofA was the third major lender to call for a halt on foreclosures in certain states when evidence surfaced that its internal staff may not have followed the letter of the law in reviewing and processing case paperwork.

Such actions were spelled out in black and white when the Associated Press uncovered court documents with testimony from one of BofA’s top executives from a bankruptcy hearing in Massachusetts in February. The

exec admitted that she signed off on 7,000 to 8,000 foreclosure documents a month without even reading them or verifying their legitimacy.

Incidences of so-called “robo-signers” that have been blindly rubber-stamping approvals of foreclosure actions because of the sheer volume of cases landing on their desks has led at least two other big lenders to suspend foreclosures – and some in the industry warn that the problem could be more widespread than anyone wants to admit.

On September 20th, GMAC Mortgage was the first to halt foreclosures in 23 judicial states due to what it called an “internal procedural error.” JPMorgan Chase followed suit on September 30th. Its moratorium, too, is limited to 23 states…so far.

Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for a nationwide foreclosure freeze until the banks can clear up the paperwork issues in question.

Senate Majority Leader Harry Reid (D-Nevada) said he welcomed the decision announced by Bank of America to expand its foreclosure moratorium.

“I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course,” Sen. Reid said in a statement. “It is only fair … to suspend foreclosures until a thorough review of foreclosure processes is completed and homeowners can be assured that their documents are being analyzed properly. I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well.”

Members of Congress from both parties are petitioning for a federal investigation of foreclosure practices at BofA, GMAC, and JPMorgan.

See the original post at www.dsnews.com.

Social Media Tips For Real Estate Agents

noreply@blogger.com (Roberts Investment Properties LLC) — Wed, 15 Sep 2010 12:59:00 +0000

Why Social Media?

See five reasons below why real estate agents use it.

1) Connecting directly with consumers
2) Growing referral leads
3) Blending your online and offline presence.
4) Inspire buyers and sellers to call YOU right from your online advertising.
5) Differentiate yourself online

Turning Renters Into Home Buyers

noreply@blogger.com (Roberts Investment Properties LLC) — Mon, 06 Sep 2010 15:03:00 +0000

According to a recent study by Trulia.com, of those renters who do plan to purchase someday, 68 percent said it would be more than two years before they do. This reluctance to buy could potentially drag out the real estate market’s recovery time line further than many have predicted.

However, in the same study we learned a few things renters said would make them buy sooner. So, if you have any renters on the fence, here are some signs that they may be ready to buy:

Save for the down payment: Almost half of the respondents said they would be ready to purchase sooner than later, if they could only come up with the cash for a down payment. Ideally they want to become a home buyer as soon as possible.
Get a new job: Almost 30% agreed that a new job could be enough of a push to buy a home and stop renting.
Other Factors: Several factors were cited by buyers as things that would push them off the fence to buy a home sooner than they had otherwise planned.

Also included in the study are easy to understand graphics that you can include in your listing or buyer presentations to share what is going on in the real estate market today. For example, the study also found that 91% Americans’ ideal home size is less than you'd expect.

Foreclosure Relief: Good for Banks, Not So For Borrowers

noreply@blogger.com (Roberts Investment Properties LLC) — Sat, 28 Aug 2010 19:18:00 +0000

Home sales are hitting new lows, the number of homeowners behind on their mortgages is again climbing, as is the number of foreclosures. Housing market misery is widespread—but particularly intense for the troubled homeowners relying on the Home Affordable Modification Program (HAMP), the federal foreclosure relief program.

Criticized both by those who argue for more aid and those who think the lackluster program only delays a needed bank reckoning, HAMP stumbles along, more often simply prolonging the pain of foreclosure than providing a solution.

The dismal new housing numbers—sales of existing homes are 27% lower than a year ago, new-home sales have fallen even more—underline just how little demand there is for all the properties that banks are foreclosing on.

Real Estate Mortuary's Waiting Room

In extending the process, foreclosure relief in many cases simply stretches out borrowers' slow bleed of resources. By keeping borrowers in limbo while letting lenders delay repossessing houses they can't sell, foreclosure aid is now benefiting borrowers less than the lenders who created the mortgage mess. For lenders, mortgage modification is the waiting room in the mortuary, a convenient place to hold borrowers while the banks deal with the overflow of houses already repossessed.

Of some 3 million homeowners behind on their mortgages, only about half are eligible for HAMP. Most of the rest, ironically, don't qualify because their income is too low to handle even a modified mortgage. For those that do qualify, HAMP offers little immediate respite: Homeowners have to immediately start making payments on a trial modification plan.

Some 1.3 million borrowers have gotten the trial modifications, which last for at least three or four months (though many banks have stretched this out for longer). But 600,000 of those have already dropped out, unable to make payments in the trial stage. Another quarter-million are in modification limbo, sending checks to the bank as they wait to know if they'll get permanent adjustments. (Detailed numbers are available in the modification program's monthly reports, here.)

What Happens After Gaining Relief Is Worse

If the wait for a modification is trying, though, what happens to homeowners who do manage to get relief is worse. Most borrowers behind on their mortgages are already overburdened with other debts. After the mortgage reduction, the typical modification recipient, despite an average $513 drop in monthly payments, has to devote 63.5% of his or her income to mortgage payments, other debt, and taxes.

It's not clear how many will default a second time. Treasury officials recently had to withdraw the government's numbers on mortgage modification success rates after they were shown to seriously understate re-defaults. One independent estimate from Barclay's Bank is that 60% of homeowners granted loan modifications will eventually default again.

So does HAMP really benefit anyone but the few borrowers who are able to run the foreclosure aid gauntlet, climb out from under their debts against tough odds and get back to making regular payments on their (still-underwater) mortgages? It does. If HAMP fails to make much of a dent in homeowners' troubles, it does mitigate a real problem for the banks: There are many more houses in foreclosure than today's market can absorb.

"Strategic Non-Foreclosure"

One of the foreclosure cascade's not-so-hidden secrets is that the banks and investors who hold millions of busted mortgages are in no hurry to kick debtors out of their homes. The markets hardest hit by the foreclosure crisis are already stuck with an enormous and growing inventory of repossessed houses, now estimated by Lender Processing Services, which tracks foreclosures, at 1 million to 1.2 million bank-owned homes nationwide.

Banks have steadily slowed down the foreclosure process: The average homeowner in foreclosure now is an amazing 461 days behind in his payments. (You can see that last stat in this report, on page 13). Barry Ritholtz of financial blog The Big Picture calls banks' reluctance to take over houses "strategic non-foreclosure." Taking a leisurely path to repossession lets lenders avoid the costs of maintaining properties they can't sell in a market that remains in free fall in much of the country.

However, there's a limit: Lenders must eventually make good on the threat of repossession or face an epidemic of homeowners who stay in their houses without making payments. Many houses have been in foreclosure for so long that the banks have little choice but to act, and repossessions are rising.

Mortgage modification lets banks put a brake on the process, keeping up the pressure on borrowers (most of whom will eventually be foreclosed on anyway) without adding to the banks' inventory of foreclosed properties. As they sit in this antechamber, instead of simply writing off their mortgages, the strapped borrowers, given the gift of reduced payments, are likely to squeeze out whatever they can manage in a last effort to keep their homes. It's a study in what Rortybomb's Mike Konczal trenchantly calls the credit "sweatbox" -- under the guise of foreclosure aid.

Another Cudgel in the Hands of Lenders

The last insult added to this mess comes from Fannie Mae, which has promulgated new rules that lock those who don't make the effort to modify their mortgages out of the Fannie-backed mortgage market for seven years. So ultimately this comes full circle, and what started as an effort to help borrowers has become another cudgel in the hands of lenders.

If we were to conceive a program to persuade borrowers to stick to their obligations and make every effort, no matter how unrealistic, to avoid foreclosure, we could hardly do better than HAMP. The program probably increases what lenders collect before they eventually foreclose -- and may let those lenders slow the process enough to prop up prices as they sell off their inventory.

In this way, it may lead to a more orderly unwinding of the busted housing market. If so, HAMP might accomplish some part of its goal—just not the part that has to do with helping homeowners.

See the original post at www.cnbc.com.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

Real Estate Housing Market Confidence Sinks For 3rd Month

noreply@blogger.com (Roberts Investment Properties LLC) — Mon, 16 Aug 2010 15:48:00 +0000

Weak economy, competition from foreclosures push index of builder confidence down

Homebuilder confidence dropped for the third straight month in August as the struggling economy and a flood of cheap foreclosed properties kept people from buying new homes.

The National Association of Home Builders said its monthly index of builders' sentiment about the housing market fell to 13, the lowest reading since March 2009. The index is adjusted for seasonal factors.

Readings below 50 indicate negative sentiment about the market. The last time the index was above 50 was in April 2006.

Fewer people are buying new homes, even though prices have stabilized in the past year and those who have good credit can qualify for the lowest mortgage rates in decades. The market is struggling because jobs are scarce and credit is tight. And many analysts predict home prices are likely to drop again in the fall.

"Buyers just aren't stepping up to the plate," wrote Mike Larson, real estate analyst with Weiss Research. "Unless and until the job market improves, we are simply not going to get any traction in the housing market."

Another key reading of housing activity will come Tuesday when the Commerce Department releases its report on home construction in July. Construction plunged in June to the lowest level since October.

Builders say consumers are worried about the weak recovery and job market. Among those who are buying, many are opting for deeply discounted foreclosed properties. The industry had received a boost in the spring when the federal government offered tax credits of up to $8,000. But those expired in April and the market has struggled since.

"Builders are expressing the same concerns that they are hearing from consumers right now, particularly the sense that the overall economy and job market aren't gaining any traction," said Bob Jones, a builder from Bloomfield Hills, Mich. and the trade group's chairman. Nearly 90 percent of 462 builders surveyed reported that their market has been hurt by foreclosures.

The survey suggests the market will remain sluggish for the rest of the year. The index is broken into three separate readings. Its index measuring expectations for the next six months fell three points to 18. Current sales conditions fell one point to 14 and foot traffic from prospective buyers was unchanged at 10.

New home sales made up about 7 percent of the housing market last year. That's down from about 15 percent before the bust.

Weak sales mean fewer jobs in the construction industry, which normally powers economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities, according to the builders' trade group. The impact is felt across multiple industries.

The building industry has sharply scaled back construction after the housing market bubble burst. The number of new homes up for sale in June fell 1.4 percent from a month earlier to 210,000, the lowest level in nearly 42 years.

But due to the sluggish sales pace, it would take eight months to exhaust that supply. That's above a healthy level of about six months.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

In Today's Real Estate Market - What Buyers & Sellers Really Want

noreply@blogger.com (Roberts Investment Properties LLC) — Mon, 26 Jul 2010 13:13:00 +0000

A recent survey revealed the following:

1. What service did sellers most often say they want from their real estate agent?

Of the sellers surveyed, 22 percent said they wanted help pricing their home competitively so it would sell. Other popular responses included help finding a buyer for the home (21 percent), marketing the home to potential buyers (19 percent), and selling the home within a specific time frame (19 percent).
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2. What service do buyers most often say they want from a real estate agent?

Nearly 50 percent of buyers most frequently reported that they want an agent to help them find the right home to purchase, followed by assisting them with negotiating the terms of the sale (16 percent) and price negotiations (13 percent). The least-frequent response was help in finding or arranging financing to purchase a home (2 percent).
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3. The typical home buyer searched how long before purchasing a home?

On average, a home buyer searched for 12 weeks and viewed 12 homes before purchasing, according to NAR research. That's the longest average time that buyers have spent looking for a home since the survey started tracking it in 2001. Buyers searched, on average, two weeks on their own before contacting an agent.
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4. What was the most common incentive that sellers offered in the sale of the home?

Sellers often try to use incentives to lure buyers, particularly the longer a home is on the market. While 68 percent of sellers said they did not offer an incentive, of those who did, the most popular incentives offered were a home warranty policy (21 percent) or assistance with closing costs (18 percent). Only 6 percent offered a credit to the buyer for remodeling or repairs.
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5. What feature on real estate Web sites do customers most frequently say they find the most useful?

Eighty-four percent of buyers said they find photos on a real estate Web site "very useful" and 13 percent said "somewhat useful," proving that photos remain a popular lure to buyers on real estate Web sites. Buyers also reported the following "very useful" Web site features: detailed information about the properties for sale (82 percent), virtual tours/videos (63 percent), the real estate agent's contact information (46 percent), and interactive maps (43 percent).
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6. What's the first step buyers often take during the home-buying process?

Thirty-six percent of all buyers said they looked online for properties for sale as their first step, followed by 18 percent who said they contacted a real estate professional. The Web sites they say provided the greatest value were multiple listing services (MLS) Web sites and real estate company Web sites, according to the survey.
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7. Of buyers who considered purchasing a foreclosed home, what was the most common reason they gave for ultimately not purchasing a foreclosure?

Nearly half of all buyers said they considered buying a foreclosed home, although only 10 percent actually did -- still a substantial increase from 2008, when only 3 percent of homes were purchased as a foreclosure. The reasons most cited for not purchasing a foreclosed home were buyers could not find the right home (25 percent), the home was in poor condition (17 percent), or the process was too difficult or complex (16 percent).
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8. What was the most common factor that influenced buyers in selecting a certain area to live?

Buyers report that several factors influence them in choosing a location to purchase a home. The quality of the neighborhood was most often cited by buyers as the most important factor influencing neighborhood choice (64 percent), followed by convenience to job location (50 percent), and overall affordability of homes (43 percent).

See the original article at www.viewthishome.com.

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How To Use Craigslist To Generate Real Estate Leads

noreply@blogger.com (Roberts Investment Properties LLC) — Tue, 20 Jul 2010 01:46:00 +0000

Here's a quick 15 minute resolution that's a simple but super effective way to put the power of CraigsList to work generating free leads.

No spam, no expensive software and best of all...hardly no time is involved!

Everyone in real estate has probably tried to use Craigslist to buy or sell real estate; it's powerful, free and frequently used by people throughout the entire nation. Unfortunately, it's also slow, behind the times and a major drain on time for those that try to sort through pages and pages of dull links and competitors advertisements.

Now it's possible to change all that with just 15 minutes of time and these quick steps:

1. Visit Google keywords or any of your favorite keyword finder to create a list of real estate/short sale related keywords. Great examples might include "motivated seller", "commercial property", "investment income" or any other relevant words that signify the type of property you are seeking.

2. Visit www.Craigslist.com and select the state and city of your choice. Copy the url exactly as it appears in the url address bar.

3. Visit the Google Advanced Search page at http://www.google.com/advanced_search?hl=en

- In the second line of the advanced search (where is says "this exact wording or phrase") type in the keywords previously outlined one at a time.

- Scroll down the advanced search page to the bottom where it says "Search within a site or domain" and put the Craigslist.com url exactly as it appears in the address bar.

- Indicate the number of listings, whether you would like to receive results via email (or forward to your phone) and other parameters such as price.

Viola'...that's it! Now you are ready to start receiving instant leads via Craigslist for free. Not only will this save time and money when working with Craigslist but it's a simple way to begin building a contact list in your local area or across the nation.

For additional information, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming investment club meeting.

Tips for Buying Foreclosures

noreply@blogger.com (Roberts Investment Properties LLC) — Fri, 02 Jul 2010 04:07:00 +0000

For better or for worse, there are a lot of foreclosures hitting the housing market right now.

In fact, I purchased a foreclosure not too long ago. It was in a neighborhood that my husband and I weren’t sure we’d be able to buy into, but low and behold we were able to with a foreclosure. The connotation that most seem to get with foreclosed properties is not something we encountered. But that’s not always the case.

While it may seem like an ideal situation, purchasing a home for less than it’s worth; you need to make sure you take the proper precautions before taking that leap. Here are a few tips:

Choose realtor wisely. The realtor you choose to represent you is a personal choice, but make sure you think about your decision from all aspects. Not only your comfort level with the individual but also his/her knowledge in the area, experience in industry, successful track record and of course, familiarity of the foreclosure market. Find a Real Estate Agent
Budget carefully! A foreclosure can be a great deal, but it can also be a huge expense. Know ahead of time that if you fall in love with a foreclosure that you’ll be able to invest the finances necessary after the home inspection.
Get home inspected. My realtor, and any good realtor would, advised us to get a home inspection of the property. It wasn’t a deal breaker should we find out anything needed to be replaced but it was good to know what was needed in the near future (in our case a new HVAC unit and hot water heater).
Check surrounding area. If you’re not familiar with the neighborhood, be sure to research the area. Check out local parks or community gathering places as well as school districts (for children and resale value). While in the neighborhood, glance at neighboring houses to make sure the vicinity has been kept up. This would include landscaping of your property and others, as well as conditions of the houses.
Time on market-how long has the house been a foreclosure? Was it properly taken care of (i.e. winterized)? You don’t want turn on the utilities until you know the condition of the pipes. The pipes could have cracked during a cold spell, water could start leaking into the walls, and mold could take hold when you turn the water back on. In addition to plumbing issues, time on the market also affects other things such as bugs and rodents getting into the home.

When shopping for a house, do your homework, especially in the case of purchasing a foreclosure. My recommendation would be to purchase a home warranty from companies like AHS, to help you with any surprises along the way. On top of the home meeting your aesthetic standards, it also needs to be a financially sound decision.

See the original post at www.homes.com.

May Foreclosure Rate Steadies As Banks Hold Back

noreply@blogger.com (Roberts Investment Properties LLC) — Thu, 10 Jun 2010 14:42:00 +0000

The foreclosure crisis appears to be leveling off.

The number of people facing foreclosure is nearly flat from a year ago, according to the latest report from a private foreclosure listing service. A third fewer people are receiving legal warnings that they could lose their homes. And foreclosures are receding in some of the hardest-hit cities.

Still, the number of foreclosures remains extraordinarily high. Experts caution that a big reason for the stabilization is that banks are letting delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. New consumer protection laws, which vary by state, have also meant borrowers can spend more time in their homes.

A new wave of foreclosures could be coming in the second half of the year, especially if the unemployment rate remains high, mortgage-assistance programs fail, and the economy doesn't improve fast enough to lift home sales.

"It's not anything like a recovery yet," said Rick Sharga, a senior vice president at RealtyTrac Inc., a foreclosure listing service.

RealtyTrac reported Thursday that nearly 323,000 households, or one in every 400 homes, received a foreclosure-related notice in May. That was up 0.5 percent from a year earlier but down 3 percent from April. The report tracks notices for defaults, scheduled home auctions and home repossessions.

But in a sign that the crisis is far from over, the number of homeowners who lost their homes to foreclosure hit a record of nearly 94,000 in May. That number may finally peak next year, as lenders try to work their way through millions of delinquent loans.

Economic woes, such as unemployment or reduced income, are the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. Now, homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.

A record high of more than 10 percent of homeowners with a mortgage had missed at least one payment as of the end of March, according to the Mortgage Bankers Association. But the number of homeowners just starting to show trouble is trending downward as the economy improves.

"That's a very good thing," said Thomas Lawler, an independent housing economist in Virginia. But he noted that even with that positive trend, "you are highly likely to see an acceleration in the number of actual completed foreclosures."

Lenders are offering to help some homeowners modify their loans. But many borrowers can't qualify or they are falling back into default. The Obama administration's $75 billion foreclosure prevention effort has made only a small dent in the problem.

About 25 percent of the 1.2 million homeowners who started the program over the past year had received permanent loan modifications as of April. About 23 percent of those enrolled dropped out during a trial phase that lasts at least three months. Many more are in limbo.

Among states, Nevada posted the highest foreclosure rate in May. One in every 79 households there received a foreclosure notice. However, foreclosures there are down 16 percent from a year earlier.

Arizona, Florida, California and Michigan were next among states with the highest foreclosure rates. Rounding out the top 10 were Georgia, Idaho, Illinois, Utah and Maryland.

Las Vegas continued to be the city with the nation's highest foreclosure rate, but activity there was down 18 percent from a year earlier. And nine out of the top 10 cities with the highest foreclosure rates posted annual declines. The exception was the Vallejo-Fairfield area in California, where foreclosures were up 1 percent from a year ago.

Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties. That's a concern for local communities, and a drag on the economic recovery.

In recent months, home prices have started to sink again after stabilizing last summer. Economists at Goldman Sachs predicted in a report last week that prices will fall about 3 percent nationally over the next year, with the largest declines in cities where mortgage defaults are rising.

"The housing market remains plagued by enormous excess supply," wrote Goldman economist Sven Jari Stehn.

See the original post at www.huffingtonpost.com.

5 Easy Steps To Avoid Foreclosure & Save Your Home

noreply@blogger.com (Roberts Investment Properties LLC) — Sun, 02 May 2010 03:03:00 +0000

1 – Plan a Meeting with Your Financial Lender

When you realize you will have a trouble bringing in your mortgage payment or when you get foreclosure warnings, go up to your lender. Amazingly, they may be able to work on with you. In more cases, banks prefer to avoid foreclosures just as bad.

Carry the money that you saved up in the preceding steps with you to your encounter. Utilize it as evidence that you are earnest about saving your home. Once you show driving force and decision, your loaner is more plausible to work with you. This may consist of reworking your loan to grant you more inexpensive monthly payments.

2 – Get Rid of Meaningless Purchases

If you have yet to get a foreclosure notice or message from your financial lender, today is the time to begin laying aside money. Doing away with needless purchases is the most excellent way to do so. Also removing extras, such as a cup of deep brown on the way to work each morning, check out your utilities. Can you decreased the service for your telephone, internet, or television? If yes, do so.

Every money that you lay aside should either be utilized toward your mortgage or spared for when you go up to your lender.

3 – Trade Your Assets

If you are not capable to have a second employment, such as if you are a lone parent, you had better start inspecting the precious assets in your home. Do you have an spare vehicle that just sits around in your drive? Do you have jewelry you can put up for sale? If so, do it. If you are in severe need of money, regard hosting a garage sale. This provides you to sell and take advantage of items that aren’t important, but still buyable.

4 – Study a Pre-Foreclosure Sale

Whenever your financial lender is not capable to help or if you still can’t cope with their requirements, do not stay up for foreclosure to materialize. You will still lose your home, but you should be able to keep your credit rating with the purchase of it. You will employ the money to pay back your mortgage in full. Depending upon the selling price, you may possibly make a good profit.

5 – Take a Second, Temporary Job

If you are already on a fixed spending budget, disposing of unneeded purchases can only go so far. For many homeowners, a second employment is needed. Yes it might be punishing being an agency supervisor by day and a grocery store store clerk by dark, then again you must do what you are able to to save your home. The lucky news is that this line of work does not have to be ongoing, but merely until you be on your feet.

As you may perhaps see, there are various steps that you can go for to avoid foreclosure on your home. These steps are the wisest and most pragmatic for homeowners, just like you. For professional advice, plan an meeting with a housing expert approved by HUD or with an lawyer that specializes in realty foreclosures.

Lead Based Paint Disclosure - New EPA Rule Starts April 22, 2010

noreply@blogger.com (Roberts Investment Properties LLC) — Wed, 21 Apr 2010 21:29:00 +0000

Before ratification of a contract for housing sale or lease, sellers and landlords must:

Give an EPA-approved information pamphlet on identifying and controlling lead-based paint hazards.

Disclose any known information concerning lead-based paint or lead-based paint hazards. The seller or landlord must also disclose information such as the location of the lead-based paint and/or lead-based paint hazards, and the condition of the painted surfaces.

Provide any records and reports on lead-based paint and/or lead-based paint hazards which are available to the seller or landlord (for multi-unit buildings, this requirement includes records and reports concerning common areas and other units, when such information was obtained as a result of a building-wide evaluation).

Include an attachment to the contract or lease (or language inserted in the lease itself) which includes a Lead Warning Statement and confirms that the seller or landlord has complied with all notification requirements. This attachment is to be provided in the same language used in the rest of the contract. Sellers or landlords, and agents, as well as homebuyers or tenants, must sign and date the attachment.

Sellers must provide homebuyers a 10-day period to conduct a paint inspection or risk assessment for lead-based paint or lead-based paint hazards. Parties may mutually agree, in writing, to lengthen or shorten the time period for inspection. Homebuyers may waive this inspection opportunity.

Environmental Protection Agency (EPA) Requirements:

Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children.

Under the rule, beginning in April 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination.

Until that time, EPA recommends that anyone performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices.

All contractors should follow these three simple procedures:

Contain the work area.
Minimize dust.
Clean up thoroughly.

Read EPA's Regulations on Residential Property Renovation.

Read about lead-hazard information for renovation, repair and painting activities in the EPA lead hazard information pamphlet.

Read about how to comply with EPA's rule in the EPA Small Entity Compliance Guide to Renovate Right.

Find additional EPA publications and brochures on lead-safe renovation, repair and painting and on lead poisoning prevention.

After April 22, 2010, property owners who perform these projects in pre-1978 rental housing or space rented by child-care facilities must be certified and follow the lead-safe work practices required by EPA's Renovation, Repair and Remodeling rule. To become certified, property owners must submit an application for firm certification and fee payment to EPA.

Property owners who perform renovation, repairs, and painting jobs in rental property should also:

Take training to learn how to perform lead-safe work practices.

Learn the lead laws that apply to you regarding certification and lead-safe work practices beginning in April 2010.

Keep records to demonstrate that you and your workers have been trained in lead-safe work practices and that you followed lead-safe work practices on the job. To make record keeping easier, you may use the sample record keeping checklist that EPA has developed to help contractors comply with the renovation record keeping requirements that will take effect in April 2010.

Read about how to comply with EPA's rule in the EPA Small Entity Compliance Guide to Renovate Right.

Read about how to use lead-safe work practices in EPA's Steps to Lead Safe Renovation, Repair and Painting.

In order to get access to the EPA's Renovation, Safety and Compliance Guides, please see the original post at www.epa.gov.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

Even Women Are Making Money In Real Estate Using Short Sales

noreply@blogger.com (Roberts Investment Properties LLC) — Sun, 11 Apr 2010 13:53:00 +0000

Seven Reasons Women Are Turning to Real Estate in Record Numbers

Think short sales and real estate investing is a guys game? Think again. Women are making in-roads into real estate in a big way. Forget clipping coupons or trying to save up for a vacation, research shows that women have been making the majority of home buying decisions related to the purchase of a family home for several years but now many are taking it one step further. Women are now making investment decisions on a regular basis including the purchase of short sale real estate and other investment assets. In fact, nearly 1 out of every 4 real estate transactions are conducted by women buyers.

Below are the most important reasons women are turning to real estate in record numbers:

1. Profits. Women have historically lagged behind men in earning capacity even with the same education and job experience. Short sale real estate provides an exceptional opportunity for women to supplement income without having to work second or even third jobs.

2. Retirement. Even after the most recent rebound, many investment portfolio's are far from healthy. A few well-timed short sale deals are able to replace much of that lost income.

3. Convenience. Real estate is flexible allowing women the time to interact with family and friends without sacrificing a life they love.

4. Security. A few well timed deals or rental properties afford women an independent means of income aside from those of their spouse or significant other. Statistically women live longer than men which often results in a dramatic decline in their standard of living towards the end of life. Holding a few long term assets that appreciate over time can assure access to funds at any time of life.

5. Empowered. Not surprisingly, men have been harder hit by the recent downsizing and lay-off's than women. Experts believe higher overall income levels are acting as an inverse incentive to eliminate men while keeping less expensive staff. The shift in income is increasingly shifting the focus of power in the household.

6. Credit Changes. Gone are the day when women must have a co-signer but lower income levels combined with children and more obligations often resulted in a practical need for two income applications. As women earn more and build solid credit reputations independent from their spouse or significant other, they are asking for...and getting...more favorable terms. Combined with federal incentives such as tax breaks, it's a winning combination.

7. Fun. Women have learned to enjoy the freedom, prestige and game of negotiation once thought to be the exclusive domain of men. Of course, communication skills combined with social savvy, independent wealth and a bit of encouragement has resulted in a record number of women learning that wheeling and dealing is not only a great way to make money but a lot of fun!

Yes women are doing this with Short Sales - TODAY!

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

Buffett's Real Estate Housing Market Prediction - A Recovery In 2011

noreply@blogger.com (Roberts Investment Properties LLC) — Tue, 02 Mar 2010 02:57:00 +0000

One of the wealthiest and most influential men in US history, Warren Buffett, was recently noted for saying, “Within a year or so, residential housing problems should largely be behind us. Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.” This was announced in his annual letter to shareholders of Berkshire Hathaway Inc.

As everyone knows, the accelerated decline in the U.S. housing market over the past two years has led to record foreclosures and a surplus of residential real estate. According to Mr. Buffett, he thinks that it will take another year (i.e. 2011) before housing demand catches up with supply. He also says that slowing the production of new homes is one of the fastest ways to bring supply and demand into equilibrium.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.

Real Estate Deal Structuring - 5 Tips For Closing "The Deal"

noreply@blogger.com (Roberts Investment Properties LLC) — Sat, 27 Feb 2010 18:40:00 +0000

The days of financing properties for 70% to 80% ARV (after repair value) are long gone. And not everyone has 100% of the necessary funds to close a deal. Therefore the key to real estate success is linked to one's ability to be creative at structuring deals.

Two School's Of Thought For Creative Real Estate Deal Structuring:

First, one must do their due diligence and know the MAO (maximum allowable offer) that they can pay for the investment. One must also know their "exit strategy" before ever closing on the deal. If one knows the (1) the "front end" cost and (2) the "back end" method for getting out of the deal, then they are well positioned to correctly structure their deal.

Second, one must know exactly what the seller needs above and beyond "price." In other words, find out how to give the seller more of what they "need" (example: some money down today and a payoff later) as opposed to simply what they "want" (example: 100% CASH or 100% Financing up front).

Today one can finance investment property, both hard money and private money, for somewhere around 50% to 60% of the "as-is" value (plus additional fees). Most would agree that this is a bit too pricey for the cost of money. But what if there was another way to get less expensive financing? In fact, what if the real estate investor could get 0% interest financing?

In the following scenario a recently renovated home at 123 Parkside shows comparable values (ARV) of around $100,000. The current seller owns the house free and clear. Unfortunately Mr. Seller has recently lost his job of 10 years selling vehicles and wants to move in with his brother to start looking for work again. In this example, Mr. Seller agrees to sell the home for $67,000.

The problem is that like most investors, Mr. Real Estate Investor (REI) doesn't have CASH to buy the property. However Mr. REI does have a few options.

Mr. REI can get hard money of up to $60,000, but he still needs $7,000 plus closing costs to close the deal. This is exactly what Mr. Seller "wants" which is just $67,000. However he only needs enough money (a few thousand dollars) to move in with his brother across the country to start looking for work again.

Mr. REI comes up with the creative idea of offering Mr. Seller more of what he "needs" which is $3,000 today (to help him move). Mr. Seller will "deed" the house to Mr. REI, because Mr. REI structures the deal in such a way to pay Mr. Seller what he "wants" ($67,000 TOTAL). This method of creative deal structuring will give Mr. Seller his $64,000 in six months at 0% interest when Mr. REI sells the house to another buyer.

Tips that Mr. REI always uses to get Mr. Seller to sign the contract.

Explain to the seller their specific options (give them at least two to three options).
Remind the seller of how long it takes to sell a property in a particular area (either FSBO or with a Realtor).
Always put an offer in writing (sometimes us a figure like $67,367.59 to make it more "concrete").
Remind the seller that they will get both what they need ($3,000 today) and what they want ($64,000) if they will be a little flexible.
Always use the advice of a great attorney when structuring creative deal financing.