Real Estate Investing Tips, Strategies, and Insider Information for Making Money Investing In Today's Real Estate Market.
I was able to get a cool video showing an inside look at the man behind Bulk REO Trader – Kenny Rushing.
I thought it would be a good idea for you to see – that this guy is for real.
Well, see for yourself in this video as you can see a sneak peek of the deals he’s doing along with a tour of his office. Watch the video, then grab the free Arbitrage Conspiracy Report by clicking here
New data was released today and reveals that foreclosures are up in 75% of the top U.S. metro areas.
Cities that were in the top 20 were located in Florida, California, Nevada and Arizona.
You can read the article by clicking here
This means one thing for real estate investors – More Deals.
You basically have 2 options with the data given -
1- Forget about doing deals because you think it’s not going to work because the economy is bad or
2 – Dive in realizing there’s more deals now than ever before.
Sure, the same strategy from 10 years ago where you buy a house in California and sit on it for 6 months and make a 10%-20% return is NOT going to work.
However, realize you can make money in good markets as well as bad, declining markets.
Early on in my career as a Real Estate Investor, my market was terrible.
I saw all of the bigger markets where folks were making a killing just from buying, then holding on for a few months.
And I admit, I was extremely envious.
However, I learned that the one thing you think is a disadvantage can be used to your advantage.
In my situation, this helped to prepare me to do deals more creatively, buy bank notes, and for doing short sales before any of it ever become cool.
So take this data but use extreme caution.
Use it to your advantage.
Don’t let it pollute your brain into thinking the market is bad, and no one is making money because nothing could be farther from the truth.
Commit to become a “Real” Real Estate Investor – one that makes money in good markets and bad without relying on speculation.
Sometimes, when dealing with contractors I want to pull my hair out.
It’s one aspect of the business that I absolutely hate, but it’s a necesary evil if you’re fixing up and flipping houses.
This past week, I’m talking with a guy named Phil that finishes hardwood floors for my latest rehab and I tell him where the house is.
He responds -”I know where it’s at… I did the roof on that house about 5 years ago.”
We agree to meet the following day to let him give me a quote.
I arrive around 15 minutes early to find a leak dripping in 3 places.
Irony at its best….
I walk outside to cut him off so that he doesn’t see the leak just yet and I said – “Is this the house you put the roof on?” He responds “yes”.
Then, I opened the door and said well take a look at this leak.
(HEHE – I’m thinking I just busted this guy’s bubble).
This guy starts telling me about the hail damage that had been done to the roof and that is why the roof is leaking and that “unfortunately” his warranty is only good for 3 years…
(To sum it up, he was shooting me a line of bull shit for a half assed job done to the roof)
Now, keep in mind, he’s there to give me a quote about refinishing hardwood floors – not a roof.
While, he’s figuring a quote – he starts asking questions about my business.
Then proceeds to say…
“Well, you’ll make $20K -$30K on this house”
Excuse me- did I tell you what I paid for it?
uhh No.
I proceeded to inform him that the one thing that pisses me off about contractors is some are more worried about what I make than doing the job right in a timely fashion.
Sorry – but I’ll not be using Phil.
And there are guys just like Phil in your market.
So here some rules for dealing with contractors when you’re fixing up to flip a house -
Don’t let’em shoot you a line of bs.
Don’t believe everything they say.
Get a second opinion. Ask for referalls at your local investment club, from other investors, from other contractors, and from the home improvement stores.
Ask to see 5 jobs they’ve done in the past year and if you can contact the owners for a reference.
And keep a good list of the contractors that work out.
This list will be a continued work in progress.
Start small. Use your new contacts for small jobs to see how they do before handing them a big project.
Don’t tell anyone who you’re using or else word will get out and then it’ll be harder to have them work jobs in.
And never, ever reveal what you paid for the house to any contractor or else they try to gouge you.
And lastly, don’t be afraid to let ‘em go.
There’s more to come as time permits…
Derek
I’m back with a new real estate investing tip this week on handling short sales -
Watch and enjoy-
Oh and don’t forget to rate it 5 stars if you like it.
