How Do I Find Real Estate Deals? (part 1)

Interestingly enough... many of my deals find me. Now that's not to say I don't "market" for properties because I do but I'll save that for another post.

One of my best deals thus far this year was referred to me by an attorney. This was an estate sale and the folks were facing a large and growing tax liability for unpaid taxes and a pending tax lien foreclosure.

Now in full disclosure, the lady called looking to see if I could handle an auction for her and her husband to move the property quickly. But upon explaining what an auction can and can't do, the lady said, "I just want it sold so I can pay the taxes before I loose the property to foreclosure".

The magic words! "I want it sold".

So in keeping with the theme of "Deals" finding me;

the sister-in-law of the contractor I use is a licensed agent of a good local real estate firm. Once she realized that I was in the market actively buying, she sends me really interesting properties she finds while researching properties and doing "comps" for her clients. You can find out more about Paula here; just don't steal all my leads. She sends me so many interesting properties, I could never keep up if I tried.

Speaking of my contractor. He has a fella that works for him that has a home where his parents passed away not long ago. The contractor called and said, "Hey Don, I've got an interesting one, let's go look at it". I'm not going to go into the details of this property in these post, as it's not likely to pan out but I may use it as an example of why deals don't make sense in a later post.

My point here is that once it starts clicking for folks that you are actively buying they will start sending business your way.

Keep in mind, they are not doing it, as a rule, out of the kindness of their heart; they have business' to run also and if your goal of buying properties for long term wealth creation, fits their need to get a property sold fast, then you need to be there help them!

I'll get to more ways to find deals in a later post.

The Road to Wealth begins here! Don

Don’t forget the BUG’s

TermitesWell I did it.....

I wasn't thinking and I wrote a contract without making sure I had a "Bug" contingency, specifically Termites that is. How one earth did I do that? It's called "not paying attention".  I'm constantly harping on my 5 year old daughter about paying attention. Do you think I'll mention to her I wasn't paying attention? not likely as she'll use it against me for forever and a day.

I don't know the extent of the damage yet, I'm referring to the financial damage here but the good news is most of the damage was in an area we were going to renovate anyway. And the double good news is that it's old damage and not an active infestation. Termite inspections only cost about $450 and I could have driven a much harder bargain having that information in hand.

Ironically, I looked right at the damage and again, I just wasn't paying attention. I was so excited that I'd found a really solid house with a lot of expensive items already updated, such as a new roof and boiler that the damage went in right in one eye and right out the other.

Ok, we'll let it be a lesson well learned and it won't happen again. I'll see if I can still get a picture of the damage and post it; assuming it's not already been pulled out by the contractor. Don

 

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Some Good “Short Sale News” for Investors

It appears the the GSE's, Fannie Mae and Freddy Mac, are finally heading in the right direction.  I'm not sure how much it's going to help a homeowner, unless they've found the home of their dream and are willing to wait up to 60 days for a lender to make a decision but it's certainly better news for us investors.

As you can see in a statement from Federal Housing Finance Agency;

"Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions."  read the entire article here at DSNews.

This means we'll be able to submit more offers without fear. There is nothing more frustrating than having capital sidelined waiting for some banker to make up their mind.  Let's hope they continue to tighten up the process. Don

Back in Action

As you can see, we've finally gotten a chance to get the site back up. We've learned a few things in the ensuing months about website but more importantly, we have a lot of exciting things happening on the investment real estate side.

Back on the road to success! Don

We Missed the Detour Sign and Ran Off The Road

If you stumbled upon the site over the last month or two, you likely noticed something wasn't quite right.  One stupid mistake and the site disappears! In order to save ourselves from complete embarrassment, we just took it down for a while until we had a chance to get it back up. It's going to take some work but we'll get there.

And as in building true real estate wealth, re-building the site is going to be a long, steady, thoughtful journey.

Don