joeyfenwick's posterous

There are more new investors getting into the real estate market today than ever before. Most are unaware of the pitfalls that await them at every turn. By learning to avoid the killer mistakes, your real estate investing business can become a very profitable endeavor.

"You don't tug on Superman's cape!" *

Here are eight really big mistakes that real estate investors should avoid.

#1 Failing to get the best help (and education)
The first three members of your real estate team are the most critical. Lots of investors lose thousands of dollars because they don’t want to spend a few dollars on a good local mentor. A good mentor who really knows the ropes is not an expense but an asset. A good mentor will save many times their cost by helping avoid expensive errors. Second is a good real estate attorney to keep you in line with the law and you will need a good CPA to help structure your business. Leave out or choose the wrong one for any of these and it could cost you dearly.

#2 Impatience
Many intelligent offers are required in order to purchase one good deal. It takes time and patience to land one of those deals. Be patient because if you ever get in a hurry you are probably going to make the next big mistake…

#3 Paying too much
Anyone can purchase real estate anytime. The MLS is full of properties for sale but your goal should be to buy property at a substantial discount. A big enough discount to ensure that you make a good return on your time, effort and money.

#4 Believing the TV commercials(and quitting your job)
Does listening to those guys on T.V. talk about how easy it is to make a fortune in real estate with no money, no credit and little or no work really get your blood flowing? If it were really that easy--everyone would be quitting their jobs to start investing in real estate. Investing is a great business but to become successful you need money, credit, and or a great deal of hard work mixed with a good education. Cash flow might not be very good at first so keep your day job!

#5 Failing to do the proper research
There is a certain amount of research that every investor must do before placing an offer on a piece of real estate. For example—the true value of the property must be determined in advance and you must know what it will cost to hold and get the property ready to market. It is critical that you know all the important answers before you ever make an offer on any property.

#6 Not continually searching for money
The life blood in real estate investing is money. Investors must have access to a lot of money or all their efforts to find good deals will accomplish very little. It takes three things to start a fire, oxygen, fuel and ignition and it also takes three things to build a glowing real estate business, money, good deals, and energy. Remove any of these elements and your fire will go out.

#7 Not bidding consistently
The fuel of real estate investing is good deals and to get a really good deal you have to make many intelligent offers. In order to grow the business--consistent bidding is absolutely necessary.

#8 Doing your own rehab
Rehabbing a property yourself-- is not the best use of your time. Successful investors spend their time finding good deals and not driving nails. Sure--it’s fun to fix up something that was in poor condition. The feeling of accomplishment is great but that feeling can be very expensive. That time could be spent finding other great deals and finding money to make the deals work. If you do the rehab yourself you will probably spend more money getting things just right. It is much cheaper to pay a professional to do the job and keep busy doing your job which is finding good deals.

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

When I managed a large real estate office, I learned a powerful lesson. Sitting at my desk one day, it suddenly hit me.  It was a revelation.

The revelation was this: I make my own market. No matter how dire the news.  No matter how “downward trending” the statistics may be. No matter what anyone else says.  My market is the one I create for myself.

Most of the other agents in my office did just what all agents seem to do.  They sold based on the seasons. When the “busy” season rolled around, they were selling at fever pitch.  But when the “slow” season started, the agents got slow too.  In fact, some seemed to disappear completely.

However, there were exceptions.  There was one firebrand in particular whom I remember was out there every day.  Rain, snow, and sleet were not a hindrance to her. (Guess what? She was consistently a top agent. Surprise, surprise!)  I watched as she relentlessly pounded the pavement every day.  It didn’t take me long to figure out that’s how to do it.

While everyone else was whining that “the market is too slow right now”, this one agent—and I, once I figured it out—made some serious money.

I hear it all the time. We all do it. We say things like, “The summer is going to be slow”, “The spring is going to be busy”, and “Why bother putting anything on the market after December 10th?  We might as well just wait until January.” All of those beliefs come from other agents, and over time they’ve come to be what we believe is the “norm”. Truly, those kind of statements are like old worn-out records.

The day I had my “revelation”, I stopped believing in any so-called “norm”.  I made my own norm.  I made my own market.

For example, December became my busiest month.  Seriously. Why?  Because I was the only agent out there.  I got all the business because every other agent was hiding at home waiting for the holidays to be over.

Yes, I had to convince my clients that it was in their best interests to bring a listing on the market December 10^th.   I explained to them that it was actually the most opportune time in the entire year because while we were listing, other agents were resting.

I had a different belief.  I didn’t let assumptions or whining nor “norms” get in my way. My different belief brought about different results.

Later in my career I became a designated broker.  That’s when I saw the impact of this phenomenon in an even bigger way.  Some of the agents in my office learned to embrace the same mentality I had—and those agents always did well during the “slow” times. They were consistently rewarded by their efforts.  They made their own markets.

You can make your market.  You control it.  You define it.  You decide the pace of business you want.   It’s all up to you.

If you’re making contact with people on a regular basis you can ignore all the whining, the “bad news”, and everybody’s expectations.  Your hard work and effort pays off because you find the business nobody else is looking for.

You make a market when you stay in regular contact. No matter the “trying times”. No matter the nightly news reports of impending doom.  No matter the long days-on-market numbers that everyone sees in the newspaper.  You give clients constant updates on what you’re doing for them and what they need to do.

You make a market when you do regular lead generation. Never stop lead generation – never!  Even when you’re incredibly busy, you need to keep your “funnel” full.  There will always come a time when you’re going to need those people you find when you’re busy.

You make a market when you call your sellers on a regular basis to talk about price in the context of the current market. By being honest and straightforward with them, you earn their trust.  Sellers want to get their home – and usually they want to sold fast.  By encouraging a price reduction, that’s exactly what you’re doing.  You’re helping them.

I know it can be tough—especially if a seller has clung to a certain price for a long time—but you’re working for the sellers. You’re their valued advisor.  Not telling them the truth is not an option.

You make a market when you educate people about the marketplace. All most people hear about real estate comes from the nightly network news, or from “water cooler” talk with colleagues. All the nightly network news ever reports is disaster.  Sitting in an air-conditioned studio in New York City, these people are not in the trenches every day. You are!  Share your knowledge with people. Tell them what’s really going on in their own neighborhoods.  Show them the real statistics and activity.  Educate them and they will reward you with loyalty, and future business.

You make a market when you follow up with people from open houses. Always follow up.  Get to know the people who attended your open houses. Dig deep.  Ask them solid questions.  Become their trusted confidant in finding a home. Don’t be just another run-of-the-mill real estate agent.

You make a market when you offer something different from what any other agent has to offer. You provide value. You are an expert.  Show the world that you are different. Your skills are not average.  You can help people get what they want—and you can do it faster and better than anyone else.

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

"You should a buy a home" is the common advice from your friends and family especially after having a good raise or having been renting for quite some time. So you heed their call and now you probably wonder if buying a home is indeed the best decision for you. The answer is YES. Why? Here are five good reasons for you:

Pride of Ownership

It is always different if you have a house you can call your own. The pride of ownership is the top reason why people dream to have their own home. You can do anything the arrangement, with the paint and other elements. You can turn the house "upside down" depending on your style and taste. Having your own home gives your family a sense of stability and security. It is also a good investment.

Appreciation

Over the years, real estate has consistently appreciated. Development in your area would mean higher value for your home. Investing on Scottsdale Homes is viewed as a hedge against inflation. This is another aspect where location matters in real estate.

Equity and Low Interest Loans

The value of the home is called equity. When you mortgage a house, your initial equity is the down payment you made on it. Additional payment on the mortgage means that your stake in the equity of the house rises. Equity also rises when the value of the home rises. In addition, equity is very useful in obtaining home equity loans which are low interest loans using the home as collateral. The owner can also borrow against a home's equity for purposes like home improvement, medical, tuition or starting a new business

Tax Savings

Tax savings is another benefit of owning a house. The interest paid in the mortgage payments can be used as a tax write-off. It is usually a very considerable amount and can save you a lot in taxes.

Preferential Tax Treatment

Capital assets receive preferential tax treatment. Once the profit derived from selling your home is more than the allowable exclusion, that profit is considered a capital asset as long as you own the house for over a year.

Benefits of owning a home outweigh the risks. It comes down to the mere fact that you own a home. Owning a home is the biggest decision as well as the most important thing you will ever do in your life. Rent is zero investment. So own a house if you can....

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

The real estate is a booming industry, and it is very easy to win the real estate game, provided you know the rules. As an investor, you should be able to master the art of negotiation, which is the most crucial aspect of real estate investments. Listed below are some of the most important and practical negotiation tips that can help you when buying a real estate investment property.

Negotiation Tips for Buyers

Is the seller genuinely interested- Find out if the seller is genuinely interested in selling the property. It will be a total waste of time if you are dealing with someone who is just not keen on selling. Many investors hang on for a while, waiting for the seller to change his mind, only because they liked the property. However, if the seller is not particularly eager to sell it to you at the first shot, then there is very little chance that the deal may materialize later. To know if the seller is genuinely interested, try calling him for an appointment. If he is reluctant to see you, then the answer is obvious.

Inspect the property carefully: Before making your offer, you must inspect the property carefully. Do not allow the seller to influence your decision in any way. Many sellers insist on making an offer immediately after the inspection. Ideally, you can inspect the property, and then fix up an appointment with the seller for the following day.

Dont stick to a single offer: When negotiating a real estate deal, be prepared with more than one offer. You can prepare three offers; however make sure that every offer promises a profitable deal.

If you feel that a particular deal is not going to materialize, and the seller is not pleased with your offer, and then firmly inform the seller that you cannot negotiate any further. This gives a clear indication to the seller that this is his last chance, if he is genuinely interested in closing the deal.

And, here are some negotiating tips for sellers:

Do you really wish to sell your property: Before deciding to sell your property do some market research to find out if the time is right. Often, sellers sell their properties at a low price to meet some sudden expenses. However, see if you can work out other options to manage your expenses, and save your house as a last resort.

Decide on a reasonable price: You may expect an exceedingly high price for your house. But the truth is that current market trends, and demand for properties in a particular area, greatly influence property prices. The best way of determining your property value is to conduct a research of similar properties in your area. Real estate agents in your area can also help you to determine a reasonable price for your real estate property. Deciding on an appropriate price for your property will help you to find genuine customers. Unreasonably high prices of properties can chase away prospective investors.

Obtain legal help: It is important to draw an agreement with the help of a skilled lawyer. Read all the clauses in the agreement carefully before signing it.

If you are not happy with the offer, or if you feel that the terms and conditions offered by the buyer are unreasonable, simply call off the deal. Most sellers prefer to work in association with a good real estate agent to benefit from a hassle-free deal...

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

The most common myth in real estate in that you can only make profits when the real estate market is rising. While it is true that more people make money in rising markets that falling markets, the reason is often luck, not good market timing. Armed with the right knowledge, you can profit in any real estate market, but first you must know your market so you can plan your investing strategy to fit that market.

What is "The Market”?

Most people think of the real estate market as something that is measured like the stock market - bearish or bullish. There are facts and figures that the media reports on the housing market on a daily basis, most of which are confusing to the average investor. Let’s discuss each of those numbers and discuss how they affect the market, and, more importantly your investing strategies.

New Home Sales

Sales of new construction homes is a indicator used by many market economists to measure the strength or weakness of the housing market. This data comes from home builders in terms of scheduled permits for new home builds and orders for new homes from consumers. This data is somewhat relevant because it can show how strong demand is for new homes. However, keep in mind that in some places like inner cities where there is no available land, new homes are not being built in mass quantities. Likewise, in suburban areas where land is plentiful, there is endless room to build, resulting in oversupply.

Home Re-sales

The resale of existing homes is a more accurate indicator of the market, particular in areas where there is not an abundance of new homes. This data comes from the Realtors^® associations, such as the National Association of Realtors (www.realtor.com).

Rental Vacancy Rates

Rental vacancies are very relevant to the values for multifamily housing, but can be a good sign of what is happening in the single-family home buying arena. When interest rates are low, home buying goes up on the low-end of the scale, simply because it is cheaper to make mortgage payments than rent payments.

Compare Apples to Apples.

When analyzing home building and sales data it is important to compare single-family homes with single-family homes. Condominiums and multifamily homes have different buyers, so it is possible to have strong demand for one and not the other.

Mortgage Applications

Applications for new mortgage loans shows data that is ancillary to the sale of new and existing homes. Of course, some of this is refinancing, which is driven by the rising efficiency and falling cost of loan processing, and in large part driven by low interest rates. Another part of the equation is the number of defaults on loans and the resulting number of foreclosures. Some of the defaults are because of sloppy lending practices, but if the market is rising, a person can always refinance one more time. Once prices stop rising and highly-leverage borrowers cannot sell or refinance, the market may be softening up.

Go Local

It is worth noting that most often these stats are based on nationwide facts and figures. The nationwide statistics are not as important to the investor who buys in local markets, which in most cases is his own backyard or some particular “emerging” market. The stock market uses indexes to determine the market as a whole, but is this really important if you only own two stocks? Likewise, does it really matter how many homes sold nationwide when you are buying homes in Cleveland? In short, you need to focus primarily on local trends rather than national, with two exceptions:

1. Interest rates. Interest rates on mortgage loans are controlled by nationwide and even worldwide factors, such as the Federal Reserve rate, worldwide markets and competing investments such as stocks and bonds. When interest rates fall, housing becomes cheaper nationwide because the monthly payments are lower. However, the flip side of the equation is that when rates rise, particularly for borrowers who are getting adjustable-rate loans, the default rate will increase, causing an increase in foreclosures.

2. Income Taxes. Federal income tax rates, particularly on investment properties can have sweeping changes on the real estate market nationwide. A prime example was the Tax Reform Act of 1987 that changed depreciation rules on investment properties and was a major catalyst to the downfall of real estate in many parts of the Country.

The bottom line is to educate yourself in all facets of the national and local markets before you act. As Abraham Lincoln once said, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

To sell a house quickly, it must be attractive and so should the terms.  By fixing your home to present it in the best light and offering flexible terms as well, you have in fact given your buyer an "offer they can't refuse."  When offering your house for an all-cash purchase only, you limit your market.  If you’re flexible on the financing terms of the property, you increase your pool of buyers and thus the demand for your house

Let’s discuss the mechanics of the owner financing, which is different if the seller has existing financing on the property.

1.       Property Owned Free and Clear

Let’s begin the discussion with a simple explanation of owner financing with a property that is owned free and clear of any mortgage liens; that is, there is no debt owed on the property.  Let’s say Sally Seller owns her home “free and clear” — that is, she owes nothing to the bank and there are no mortgage liens on the property.  Sally agrees to sell her property to Barney Buyer for $100,000, with the terms of 5% down and owner-financing for $95,000 (95% of the purchase price).  At closing, Barney tenders $5,000 in cash and signs an I.O.U. (known as a “promissory note”) for $95,000.  Sally executes and delivers a deed (ownership of the property) to Barney.  The promissory note is secured by a mortgage that is recorded against the property as a lien in favor of Sally.  In this case, Sally is essentially acting as a lender to fund part of the purchase price of the house.

Sally can set a balloon date in the promissory note by which the loan has to be paid in full, at which time Barney must either sell the property or get a new loan from a traditional source such as a bank or mortgage lender.  When the new loan is obtained, the loan to Sally is paid off and the mortgage lien is removed from the property.  In some states a different form of mortgage called a “deed of trust” is used.  A state-by-state list can be found in the resource directory in the appendix of this book.

2.       Seller Has a Mortgage, But Some Equity

The preceding example is for illustrative purposes only, because if you’re reading this manual you probably owe money to a lender secured by a mortgage lien on your property.  Let’s consider a more common example — a house that has some equity because it has appreciated since it was purchased, or was purchased with a sizeable down payment.

Let’s say Sammy Seller owns a property worth $100,000 that’s encumbered by a mortgage of $80,000. Sammy agrees to sell the property to Betty Buyer for $100,000. Because there’s $20,000 in equity ($100,000 value minus the $80,000 loan), Betty offers to pay $10,000 down and borrow the balance of the $90,000 from Manny Mortgage Lender.   At the last minute before closing, Manny decides that Betty Buyer’s eyes are the wrong color and refuses to fund her loan.  Instead, Manny offers to lend $80,000, which is $10,000 short of the amount Betty needs to close.  One choice is for Sammy to drop the price of $90,000.  Another choice is for Sammy and Betty to part ways and for Sammy to put the property back on the market to find another buyer.

A third choice is for Sammy to accept a promissory note for $10,000 as part of the purchase price.  At closing, Betty will pay Sammy $10,000 down, borrow $80,000 from Manny and give Sammy a promissory note for $10,000.  Sammy signs over to Betty a deed to the property, and Betty signs a mortgage lien for $80,000 to Manny, who will possess a first lien on the property.  Betty also signs another mortgage lien to Sammy, who will have a second mortgage on the property.  In a year or so, Betty gets a new loan for $90,000, paying off both the first (Manny’s) and second (Sammy’s) mortgage liens.  In the meantime, Betty can make Sammy payments of interest on the $10,000 promissory note, which is a nice income stream for Sammy.

3.       Seller Has a Mortgage, and Little or No Equity

If the seller has little or no equity but a reasonably low payment on his note (whether a fixed-rate loan or fixed for a few more years), he can sell the property by using a wraparound transaction.  A “wraparound” or “wrap,” is an arrangement wherein you sell a property encumbered with existing financing by accepting payments in monthly installments, leaving the existing loan in place.  The seller uses the payments he collects from the buyer to continue making payments on the underlying mortgage note.

For example, Susie Seller owns a house worth $100,000 and she owes $90,000 to First Federal Financial on a favorable 6%, 30-year, fixed-rate loan.  Her principal and interest payments on the loan are roughly $600 per month. She can sell the property for $100,000 for cash, but this might take a few months and $6,000 or more in broker fees and concessions, leaving breadcrumbs on the table after Susie pays off her loan.  Susie advertises the property as for sale by owner (FSBO) with owner financing and sells the property to Barry Buyer for $100,000, taking $5,000 down and carrying the balance of $95,000 at 8% for 30 years.  Susie doesn’t pay off her underlying loan, but rather collects payments from Barry (roughly $700 per month) and continues to make payments on the underlying loan (roughly $600 per month).  Susie collects $100 per month cash flow on the “spread” until Barney refinances.

Mechanics of a Wraparound Transaction

A wraparound is commonly done with an installment land contract.  The installment land contract is an agreement by which the buyer makes payments to the seller under an agreement of sale.  The transaction is also known by the expressions, “contract for deed” or “agreement for deed.”  The seller holds title as collateral until the balance is paid.  In many ways, the installment land contract is similar to a mortgage, in that the buyer takes possession of the property, maintains it and pays taxes and insurance.  However, the deed remains in the seller’s name until the balance of the debt is paid by the buyer.

An installment land contract usually contains a forfeiture provision, under which a defaulting buyer may be evicted like a defaulting tenant.  Under the contract, legal title remains in the seller’s name until the purchase price is satisfied.  When the buyer satisfies the indebtedness, legal title passes to the buyer. 

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

Deciding to find and buy a property either residential or commercial or is one of the most important decisions a person could make. In particular if you are buying a residential property for your personal use, your future home it becomes a striking decision.  It combines your personal hopes and dreams with wanting what's best for you and your family, owning real estate, owning your personal home! It means making changes. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, real estate agents who understand the life changes that buying a house bring, and work in the area where you want to live and purchase real estate.
Real estate brokers and agents are people that work in the real estate business. They can assist real estate buyers and sellers with their needs, whether it’s a house, condo or any other type of real estate property. A real estate broker is a party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy.
Offer a Reasonable Earnest Money. You cannot present an offer with a $50 earnest money and expect a real estate agent to take you seriously. If you are concerned with losing your earnest money, consider using a real estate promissory note. In the US, real estate brokers and their salespersons (commonly called "real estate agents") assist sellers in marketing their property and selling it for the highest possible price under the best terms. When acting as a Buyer's agent with a signed agreement (or, in many cases, verbal agreement), they assist buyers by helping them purchase property for the best possible price under the best terms. Without a signed agreement, brokers may assist buyers in the acquisition of property but still represent the seller and the seller's interests.
 
Offer a Short Closing Date. Another way to get a real estate agent to take you seriously is to offer a fast closing. Nothing makes real estate agents salivate more than the thought of a commission check in ten days. If the real estate agent has another offer presented to him, he will usually advise his client to take the offer with a larger earnest money and faster close than an offer which is higher in price.
While some people may refer to any licensed real estate agent as a real estate broker, a licensed real estate agent is a professional who has obtained either a real estate salesperson's license or a real estate broker's license.
Insist on Presenting Creative Offers in Person. If you present a creative offer to a real estate agent, it will not be represented to the real estate owner in the same enthusiastic fashion. As stated above, real estate agents do not like creative offers - they like conventional offers from solid real estate buyers. If you want the real estate owner to hear all of the great benefits of your offer, insist on presenting the offer in person.
Real estate agents are in the game to make money, just like anyone else in any other business.
In consideration of the brokerage successfully finding a satisfactory buyer for the property, a broker anticipates receiving a commission for the services the brokerage has provided. In North America a commission in the 5% to 7% range is considered "standard" for residential real estate and is typically paid by the seller at the closing of the transaction. Commissions are negotiable between seller and broker. The commission could also be paid as flat fee or some combination of flat fee and percentage, particularly in the case of lower-priced properties, vacant lots, or other unusual real estate.
If you can offer the real estate agent an incentive to make money out of the transaction, you will get his cooperation. If you present an offer which does not permit enough cash to come out of the deal to pay the real estate agent, why would he cooperate with you? If you present a lease/option offer on a listed real estate property, how will the agent receive a commission? You need to find a way for the real estate agent to get paid, even if you pay him out of your own pocket.
Do Your Own Comps. Sometimes you will get the opposite of an uncooperative real estate agent - an overzealous real estate agent. Be suspicious of a real estate agent who tells you what a deal you are getting on a real estate property. If it is such a good deal, why didn’t he buy it? Don’t take his word as to the value. Ask for a printout of comparable sales (not listed real estate properties). If a comparable sale shows the same square footage as the house you are looking at, take a drive by and see if it is accurate. Do your own assessment of real estate value.
Don’t waste your time filling out a contract offer until you have preliminary approval. Most real estate agents are not this formal and will take any offer in writing to the seller. Simply summarize your offer in writing and fax it to the listing real estate agent. Once you have an oral approval, then take the time to fill out a contract and an earnest money check. Another real estate buying resource is a buyer's broker. Unlike the typical real estate agent, buyer's brokers work exclusively the real estate buyer. The buyer's broker can be paid directly by the buyer, or can be given a portion of the commission earned by the real estate property seller's agent. The payment arrangement is usually determined up front when you are negotiating with the real estate buyer's broker.

Contact me today and learn more about how I can help you with your home financing needs @ www.JoeyFenwick.com. See you there!

We have all heard and read the stories about how the real estate market is, or will be, slowing to a snails pace. For those who have been involved with real estate for awhile know that this is normal (and cyclical) in the real estate markets across the country, and, is commonly referred to as 'market normalization'. This is commonplace throughout the industry, and country.. This slowdown is not evident in all markets, in all states and communities however. There is no question that in many parts of the country, many houses are currently remaining on the market a little longer than they were a few weeks and months back. With this, competition for buyers takes a little more work, more ingenuity, patience and good customer service skills.

The following simple steps are just common sense rules to apply if you are planning to sell real estate property soon, either residential or commercial.

 INTERVIEW & HIRE A

'REAL ESTATE PROFESSIONAL'

If you want to sell your home in the fastest and safest manner, hire a professional real estate broker. Put the solid foundation of his office and reputation solidly behind your listing.

By forming a relationship with a real estate professional, you are tapping into all of the resources available to real estate brokers and agents for both buying and selling real estate. You want to make sure that your home gets the absolute maximum exposure and the best marketing strategy, and, only a professional real estate broker, agent or realtor can do this.

No one knows the local real estate market like the local 'real estate guy or gal'. They usually live in the area, know the market inside and out, know the schools, employment options, business environment, who's doing what in the city, planned future developments for the community that will add or subtract 'real value' to the property you want to sell or buy.

When you work with a qualified real estate professional, your home will be listed on a MLS database that other real estate professionals can access and use. In addition, you get the benefit of an experienced marketer and negotiator who is familiar with all of the real estate issues in your community.

 ASK QUESTIONS

• What is their plan on marketing your property?
• What will they do to get the marketing messages to the greatest number of buyers?
• Are they planning open house on certain weekends or? * Who will be showing the property?
•  What price should the real estate property be listed for? * What is the margin for negotiation?
•  What is the average time their listings have been on the market? (Verification of this can be found with a Comparative Marketing Analysis and will provide the names of 2 or 3 of their most recent sellers who you can then contact for references)

These are just some questions that should be asked. Don't be afraid to dig into the background of the real estate brokers and agents you are interviewing. Visit their offices and probe around and ask questions of the other agents in the office.

And do find out about escrow (if applicable) and title companies and any other vendor services the broker uses.

Remember, You are the boss!

You are contracting with real estate professionals to market, sell,
and maybe arrange for the finance of your single most valuable investment in life.

 SIMPLE STEP #2

 IS YOUR PROPERTY PRICED RIGHT?

Interest in your property will be at the highest in the first 30 days or so.

If your property is over priced, potential buyers will not even be touring to look at the property and its hard to get them interested again if you drop the price later. A house priced at just below market value grabs the interest of real estate professionals and of buyers, while overpricing chases them away. Remember that you can always drop your price later on, but the longer a property remains on the market, the fewer the prospects and lookers as well as real estate professional lose interest in it as other and more competitive properties become available.

SIMPLE STEP #3

 IS YOUR PROPERTY IN GOOD SHOWING CONDITION

* DOES IT HAVE GOOD 'CURB APPEAL'

Get the property in Tip Top Shape and keep it that way. You only have one chance for a "good first impression" !

The important thing is to get rid of all trash, all clutter and any unsightly messes. When a potential buyer comes to view the property, it should be neat and clean as much as possible. Yards should be manicured and clean. Clean up the garage areas. Touch up paint or repaint if necessary. Have the carpets cleaned professionally. You should have your property inspected by a certified inspector to be able to answer any and all questions that might arise from a buyer and his possible inspector. Make all necessary repairs.

Don't overlook the outside areas. The lawn should be trimmed and green. The plants well groomed, blooming and trimmed. Be sure the sidewalks and gutters along the street are clean. Put away bikes, skateboards, etc.

Check the little items; doe's the mailbox look good? Or, is it rusty and worn out?

SIMPLE STEP #4

OFFER INCENTIVES

Offering an incentive may just be the thing that a potential buyer needs to close the deal. An incentive creates impetus with the right timing. An example of a small incentive is offering a carpet allowance or a painting allowance. This goes a long way if the potential buyer is hung up on a particular problem with the property like the paint color, or worn carpets. You might even pay for the home inspection or home warranty for the buyer if he wants the property.

Depending on your budget, etc., you might offer to help out with some of the closing costs. All of these things create impetus for the buyer to 'take the worm'.

HANG IN THERE

Don't be discouraged if there are competing homes for sale in your immediate neighborhood. Making the right moves before the property is put on the market and staying in close contact with the real estate brokers office and getting feedback on potential buyer comments are important so you can continue to be flexible during the marketing of your real estate property. Today's real estate market is very competitive and will continue to be that way if you are to be successful with your property sale.

Contact me today and learn how can you with home financing needs @ www.JoeyFenwick.com

It is a truism in real estate investing that money is made when you purchase; the profit is realized when you sell. The problem for the investor is that everyone is trying to buy at a discount. The competition drives the price of any worthwhile property near or up to full market value. Even so called distress sales; foreclosure, bankruptcy, probate, divorce, can result in competitive bidding.

The internet has been a great friend to the seller of property. Fifteen years ago someone with property to sell either had to accept a discount for a quick sale from one of the all cash "we close quick" buyers or spend months waiting for an offer while his property was listed in the "MLS Book". Now, information about a property for sale is instantaneously transmitted to potential buyers worldwide. We have sold Houston apartment buildings to California based investors, a Bryan, Texas office – warehouse to a Singaporean transportation company, and an Austin church building to a Dallas based ministry looking to expand.

In years previous, being an all cash buyer allowed me to purchase property at 70 – 80% of real value. However, for the reasons mentioned above being an all cash buyer no longer warrants a 25% discount (by the way we are talking about REAL current value here, not some inflated appraisal done one year ago before prices dropped 30%). Going to auctions, subscribing to foreclosure listings, contacting probate lawyers, were no longer generating the deal flow I needed.

The need for financing (and lack thereof) combined with the current sour economic environment have combined to provide a once in a lifetime opportunity for the investor with cash to purchase quality properties at 50% or less on the dollar. What I do and what any real estate investor with cash can do is make hard money loans on property you would be happy to own. The foreclosure rate on loans secured by commercial property has risen dramatically, from 5% to 30% of all loans made in the last two years. So it becomes a win – win for the investor/lender. If the borrower makes his interest payments and eventually pays off the loan the lender earns 14 – 18% interest annually, a great return especially in this low interest environment. And the great news is that demand for private mortgage loans is so great that not only can 14 – 18% interest be obtained, but the loan can be made at a loan to value (based on real current value) of 55% or less! If the borrower defaults the lender/investor ends up owning the property at 50 -60 cents on the dollar. Beats chasing foreclosures any day!

Contact me today and learn how can you with home financing needs @ www.JoeyFenwick.com

Your tired of hassling with tenants, contractors, leasing agents, brokers and attorneys. You have owned income producing property for the last 20 - 30 years, and you’re ready to leave behind the day to day problems and enjoy life. The kids are on their own and you want to travel at will and spend winters in a warmer climate or summers in a cooler one. You only have one problem; if you sell your real estate holdings and invest the proceeds in CDs, your income will be cut by 80% or more. The stock market looks too high and too risky.

"If only I could replace my monthly income without depleting my nest egg," you think, "and without losing sleep over the stock market."

Well, there is a way to make this happen: by investing in trust deeds, or private mortgages loans. Simply put, trust deeds are short-term loans to real estate investors secured by the value of the real property as collateral. Investors who invest in trust deeds typically make a 12 to 18 per cent return, paid out monthly, with a minimum investment of just $50,000 and relatively low risk. As a result, they are able to enhance their lifestyle significantly without threat to their principal, or built a large nest egg, safely, in a relatively short period of time.

I'll give you an example: my wife's parents. My father-in-law has had a couple of concerns. First, he's significantly older than his wife--he is 77, she is 65. Second, women have a longer life expectancy than men. Statistically, my mother-in-law will live 13 to 15 years beyond my father-in-law. My father-in-law has an old-fashioned Sears pension which cuts in half when he dies, and Social Security, which also cuts down by about one-third when he dies. These diminished resources would fail to provide adequately for my mother-in-law.

The two of them decided that they needed more income, or some way to increase their capital base. At the time, they owned an apartment complex in Alvin, Texas, which was a good investment, but wasn't producing any income after the expense of vacancies, repairs, management, and so forth. So they sold the apartment complex and invested the proceeds in three different mortgage liens through my company. From the $200,000 they invested, we created a monthly income of about $3000. We did a projection showing that over 13 years, we'll be able to replace every lost dollar of pension income and social security income, should he pass on first, double the principal in real terms.

In addition, my in-laws can now live higher than they did. In fact, they just decided to take a $10,000 trip to Europe, rather then the usual $2,000 cruise out of Galveston. They're glad they didn't opt for Plan B, an annuity, with a return of only 8 per cent and the guarantee that when you die, you'll lose your total investment. Now my in-laws have a 14 to 18 per cent return, plus their original investment.

Private mortgage loans are never greater than 65 per cent of the appraised value, secured by income producing property only (apartments, homes, office buildings, warehouses), and only made on investor property. A lot of notes on the market are connected to primary residences. With Texas homesteads, for example, there are many different laws involved, many of which benefit the borrower. Most mortgage companies originating private mortgages lend only to professional real estate investors, not owner-occupants of residential properties, thereby by-passing the problems with homesteads. The companies make a profit by charging borrowers origination fees for the loans, while the investors collect all the interest.

We personally examine and select properties carefully to make certain that they truly are worth the appraised value. We look at the property as much or more than we look at the borrower, knowing that the property will always be there. Property doesn't get divorced, property doesn't declare bankruptcy, property doesn't have financial problems. Property is the basis of wealth in the United States, in nine out of ten families.

Should we have to foreclose, we can sell the property at 10 or 15 per cent off and still make a profit. We can put it on the market at 25 per cent off and still make a profit. But defaults are rare. Our portfolio for the last 20 years shows a 4 per cent default rate. When a default occurs, the mortgage company picks up the slack. They’ll handle the foreclosure, any property rehabilitation necessary, and the property sale.

Many of my clients start with a small portion of their portfolio to see how it works. Once they put in an initial $50,000, and it works real well, they're eager to invest a greater amount of money because their comfort level rises. They receive the monthly income checks, become familiar with the process, all the safeguards that we use, and then they call me up and say, "Do you have anything else available?" Over the course of time, they increase their investment to a point where their comfort level meets their income need.

The risks are fairly limited if solid procedures are followed. All mortgage documentation will be standardized by the mortgage company originating the loan, so the investor will know that the mortgage note and deed of trust are drawn up to his benefit.

The risk is going to be somewhat higher than government insured money market funds, or government bonds. But it will be substantially lower than stocks, gold, silver, or any assets that you hope will increase in price--assets that could go up or down in value.

Deciding how much of your portfolio might ultimately go into mortgage liens is an individual decision. I personally have 75 to 80 per cent in mortgage liens, which represents the proceeds from the sale of my automotive business. Before I became actively involved in the private mortgage business, I was an investor, looking for a way to replace the income from the business with a less time-intensive instrument. I spent two years researching the possibilities. My father-in-law has 50 to 60 per cent of his portfolio invested in mortgage liens through our company. It depends on the size of your portfolio, what you're trying to accomplish.

I can't recommend mortgage liens highly enough. I've studied finance and investment for many years, have been an investor in many different vehicles, and it's all a trade-off between risk and return. The mortgage lien, when properly executed, is absolutely excellent; I don't know any investment available to the public that has that match of investment return versus risk.

You may hear about people who go into venture capital funds and make 40, 50 per cent, but most individuals can't take part because they don't have the minimum investment--usually one million dollars or more--required. Minimum investment with most private mortgage originators is fifty thousand dollars. You won't make a 40 or 50 per cent return, but you will make a solid, guaranteed 14 to 18 percent, which is superior to most other investments. That amount of yield can go a long way toward making your retirement both secure and more comfortable than you ever dreamed.

Contact me today and learn more about how can I help you with your home financing needs @ www.JoeyFenwick.com. See you there!