I’ve often stated that one of the most important factors in your success as a real estate investor is your ability to select, screen, and retain quality tenants. This is something that I think I’m pretty good at, which has helped me as an investor.

I was going to write an article about this not to long ago when, bam, I ran into a problem: tenants who stopped paying.

The tenants were a flaky young couple that I knew I might be taking a chance back when they signed the lease in May. But I decided to rent to them and mitigated my risk by signing a short lease (six months, with renewal contingent on timely payment), charged them first and last month’s rent upfront, plus one month’s rent as deposit. I won’t go through the boring details, but they ended up breaking the lease and abandoning the property while they owed me money. If you find yourself in a situation like this one here are some points to keep in mind.

Continue reading Dealing with deadbeat tenants

I got some interesting emails from readers responding to my recent posts on real estate fraud. Here’s one of them (posted w/ permission from the author, with names and minor details changed):

________________________

Chris,

I was approached by an acquaintance, Phil, to invest into a get rich quick scheme. I was to be the buyer and mortgage holder for two houses, but all documents and paperwork would be mailed to Phil’s residence and Phil would be responsible for all mortgage payments and monthly maintenance fees. I was promised a gift of cash in exchange for using my good credit. All was good for several months, and then I started receiving calls from American Servicing Company for non-payment.

Continue reading Real Estate Fraud :: Case Study

Record foreclosure filings have prompted some savvy real estate investors to action. While some seasoned conservative investors are advising to sit on the sidelines, hold on to the properties they currently have and wait to invest in more, there are seasoned real estate investors used to investing in distressed properties who are cashing in by tweaking their strategy to fit today’s real estate market.

“It’s all about analyzing projects from the outset and create a manageable plan of attack,” says Glen Daniels. Glen is an investor with over 20 years of experience in buying distressed properties and rehabbing them for profit. Glen believes that an investor who analyzes, budgets and markets properties effectively will overcome the obstacles of any real estate market.

Continue reading Rehab Foreclosures For Profit

Effective home selling these days requires the right attitude. The most effective sellers take the stance “We are no longer home owners, we are home sellers”. This attitude goes a long way in preparing the seller for what’s ahead. The following is a list of ten other things to keep in mind when getting ready to sell your home.

1. Realistic Pricing- September of 2007 saw 6,767 homes for sale in the Pikes Peak MLS. That’s compared to 5,929 in 2006. There are just a lot more homes to choose from. Buyers may look at 40 to 50 homes before they get to yours. By the time a buyer sees your home they have a pretty good sense of what the price should be and if they don’t their agent does. This is why pricing is so important, with so much inventory on the market the ones that are selling fast are the ones that are well priced. I’m not talking about bargain basement Crazy Eddie type pricing but thoughtful, realistic pricing that puts your home where it should be in the context of the marketplace.

Continue reading 10 Tips For Colorado Springs Home Sellers

It is expected that the Australian real estate investing market will continue to grow in the near future, however, the rate of growth is expected to slow in NSW and Western Australia where the markets are expected to correct themselves.

Although, some regional areas of NSW such as the Newcastle / HunterValley area will probably continue to grow at a steady rate and Western Australia is still experiencing a high demand which is largely dependent on the resources boom.

Queensland, particularly South East Queensland, is expected to maintain strong capital growth in the residential property market as a result of continued migration from other states. However, rental yields are not expected to increase substantially despite low vacancy rates.

Continue reading Australian Real Estate Investing?the future

Most of the news about housing these days is bad news. Countrywide Financial, the nations largest originator of home mortgages has reported it’s first quarterly loss in 25 years. Additionally, the Wall Street Journal says, Home Buyers have been sidelined due to better lender oversight and tightening of credit in the lending industry.

In the Colorado Springs Real Estate market we are feeling the effects of the changes in the lending industry in conjunction with a softening economy as well as a large number of foreclosures in certain areas and price ranges.

Although many buyers and investors have decided to sit on the bench and watch. We think this is a great time to be in the market as a buyer.

Continue reading Colorado Springs Real Estate-Strategies For Home Buyers

Yesterday I posted a YouTube video about a sting operation busting some shady “Investment Advisors” who had defrauded a group of investors using a common tactic.  This was a variation on the standard buyer-seller kickback scheme that I previously wrote about.  Here’s how it works:

I love real estate.  There are millions of honest, ethical investors out there making prudent, informed responsible investments to secure their financial future, but there are also a brigade of scumballs busying ruining it for the rest of us.  Keep your eyes peeled. 

Continue reading Real Estate Shell Game :: Part III

Talk to most real estate professionals, whether they be investors or agents/brokers, and they will tell you - marketing properties on the internet is the fastest growing real estate marketing technique. How can you make it work for you?

The most important factor is arming yourself with as much knowledge as you possibly can. Perform research on the internet and network with local real estate investment clubs and you will be off to a great start. Also ask other real estate professionals you respect for their marketing suggestions. Education is a key component .

A popular education tool is rising quickly in popularity - online education. Please keep in mind that a free teleseminar or webinar may provide some general information, but in the end you can bet they are trying to sell you something. There are some low cost options available. One we recommend is from Foreclosure.com. They are having a webinar next week on How to Find Buyers in a Declining Market.

Continue reading Innovative Online Real Estate Marketing Trends

The title says it all;  I just hate bandit signs.  When I see these things littering our corner intersections proclaiming cheap mortgages or foreclosure assistance I wonder who the poor saps are that actually call these numbers. 

The first thing that I think when I see a bandit sign is “here’s a guy who’s willing to do something illegal to make a little money.”  Not exactly a first impression that inspires me to pick up the phone and strike up a business relationship.

Continue reading I hate Bandit Signs

To understand the benefits of a Lease Option agreement, you must first understand the term. A Lease Option is an agreement between a buyer and a seller to lease or rent a property with an option to buy it at a future date. The terms vary and are structured in a multitude of ways.

The “Option to Buy” can be arranged with an up-front payment of a pre-determined amount or a monthly rental fee is agreed upon with additional payment to be applied towards a possible purchase of the property. The agreement can be organized with a preset purchase price or the purchase price can be establishes by the fair market value at the time of purchase.

Continue reading Profiting from Lease Options