Just got in from viewing a jobsite that’s currently undergoing a rehab and I wish I’d had a camera to film what I saw.

But I didn’t, so I’ll try to explain it the best I can.

When I first purchased the house, I realized there was a ripple in the roof. It looked like there was something rolled up underneath the shingles.

At the time, I didn’t know what it was – I just knew it would have to be addressed.

Anyway, the roof was only 7 years old and was leaking more than any of the high profile CIA leaks….

So… [Read more...]

When you’re flipping houses, sometimes you’ll inherit the tenants from hell (as well as cats with super powers).

I like tenants because it creates more deal opportunities. If it wasn’t for tenants, there wouldn’t be so many landlords throwing their hands up in complete disgust to become motivated sellers. And as a result, you’ll inherit some of these tenants for your house flips.

You gotta know how to light a fire under that ass to get them out without risking your investment. Make the wrong move and they’ll trash it like there’s no tomorrow, leaving you thousands of dollars in the hole.

Here’s a short video of one of my recent dealings with tenants that involved pot, cats, and more.

Learn to wave the carrot – you’ll see. Check it out…

{vidavee id=”5320″ w=”510″ h=”300″ }

The feds have cut the rates again this time by a 1/2 point in order to try to give the economy a boost.

Click Here for the story.

Prime has hit the lowest since the Spring of ’05.

If you’re able to borrow money to buy houses, then realize the money is extremely cheap right now. But don’t solely rely on the banks to fund your deals because the bank can put a stop on your line of credit at any given moment for no apparent reason.

Ask me how I know that…

Instead, look for more creative real estate methods and private money to fund your deals.

With the rates dropping and the amount of deals increasing, focus on flipping your deals to other investors. Many long term real estate investors (landlords) see this turbulent time as an opportunity and you’ll see many of these guys scooping up as many deals as possible.

A few months ago, a Realtor calls me up about a property that I should take a peek at. I’ll not go into the details of the deal itself, but I decided to make an offer on the property. The house was a Fannie Mae foreclosure. So, we write up the contract as usual and submitted the offer to the listing agent. The next day my agent calls me to inform me that before my offer is submitted, I’d have to sign off on some new addendums.

OK…

Apparently, Fannie Mae is trying to crack down on some of the fraudulent flippers.

So, the addendum was a deed restriction that would prevent the buyer from selling the property within a 90-day period from the closing date. This restriction would be placed in the deed, therefore there’s no way around it.

I was pretty surprised by this, but go figure.

Heck, instead of enforcing the laws we already have to cut down on mortgage fraud and illegal flips, let’s create some new ones!

Now, for those of you that are wholesalers, this hurts in a major way because the first 90 days are make it or break it, so consider offering less to figure in your holding costs.

Gotta go meet a seller and send a short sale offer,

Talk soon
Derek Pierce