I know what you're thinking: Shyaaahhh! But it seems like the Texas Counties of Harris and Galveston County are giving the Federal Government the Heisman. See my comments here: http://www.zillow.com/advice-thread/200M-in-Government-fix-up-money-sitting-on-the-sidelines-Harris-County-Texas/318190/Around $200Million Dollars of Federal Money for Ike Relief are sitting on the sidelines and Harris County and the City of Houston may lose it.
Why? Folks living in the area are not applying for it.
Homeowners can use the home to fix up their properties, bring up their properties in order to sell them quickly making them more appealing to buyers and investors.
There are benefits to investors as well, who may wish to purchase these properties when homeowners are unwilling to make the repairs themselves.
There are several creative scenarios where everyone can benefit from the federal Ike Relief program- one of them taking a property subject to the existing mortgage and repairs and applying for the relief money as the new owner.
The problem? Folks don't know what's available to them, how to apply for this aid and their options.
Bad news is, unless something changes soon- the Federal Government could pull the plug on it and residents and real estate investors will be left holding the bag.
Now aren't you glad you read this article?
Here are the links to the Government Ike Assistance Programs.
Read up and Profit
Read up and help your fellow man!
Dennis
http://www.cityofgalvestonrecovers.org/
http://www.harrisrecovery.org/
Technically speaking all contracts are assignable unless expressly written that it isn't. See my comments here: http://www.reiclub.com/forums/index.php/topic,45501.0.htmlThe only problem you may run into is if you close with a Title company. 'You see, they're going to want to know that the Seller is ok with the assignment. So here's what you do: You have a motivated seller right? Of course you do.. If he is then he would have no problem signing an agreement to assign. You can get this from any title company. (Especially the one you're thinking of using or the person you're going to be assigning it to will be using) Simply include this form along with the contract and it all basically becomes part of the document. I'ts easier getting folks to sign everything all at once while they're in a signing mood. Properties can also be 'transferred' via LLCs and Land Trusts. Fun Fun See you next time! Dennis
I can almost title this Hyde and Seek depending on how you use land trusts. I comment on this at http://www.creonline.com/wwwboard/messages/89657.htmlMany folks use land trusts as a way of owning properties without 'really' owning it. In other words they use it as a Klingon would a cloaking device. Basically Land Trusts are just a legal intrument that helps you control properties and at the same time limit your exposure to whatever is contained in the land trust. BTW there are also so cool things that can be done within the land trust itself. Remember however, that the land trust is not a cure all. Once people find out about the land trust the gig is pretty much up. You'll have to disclose stuff in court. The thing to do is use it judiciously, limit the number of properties contained within it, and for your own sake's please seek the help of an attorney before setting one up for the first time. If you need me to help point you in the right way, it would be my pleasure (as they say at the Chik fil place) Dennis
Ok, sorry about the lack of alliteration but I ran out of ideas. What I didn't run out of is some good advice when buying REO's (real estate owned properties) from banks and really any real estate investment. I recently answered a Forum question here: http://www.creonline.com/wwwboard/messages/89614.htmlRemember, that banks that own these properties more than likely will not own them out right. You're going to need to do your due diligence. One good thing to do is to be familiar with your county recorders office, where you can do your own quick title search to give you an idea of what you're facing. Secondly, when you start dealing with a particular title company and keep sending them business- whether that's your own deals or you refer other investors to them, they can usually cut you a great deal on title searches or you can simply request what's called a "Nothing further certificate" to see what's attached to the property. You're going to want to bid low on these properties as , but for a reason. You'll want to know what your expenses will be for clearing up liens, repairs, holding costs, etc. Cost of investment is a biggie because many investors don't factor that into the equation until the realize they're upside down on the deal. Much of this COI is in the holding costs, closing costs, points etc. In my professional opinion, it's much easier working with home owners on a pre foreclosure/ short sale type situation. Your up front expenses (earnest money etc) can be substantially lower, you have more room for negotiation, and much less competition- sometimes none. Don't forget, you can get my FREE Software that will help you analyze potential deals so you know if you've got a gem or a dud on your hands. Free for the asking ( All the best! Dennis
Hey Gang, Answered some questions regarding purchasing foreclosures @ http://www.zillow.com/advice-thread/How-can-you-buy-a-foreclosure/317212/My thing is that when people think of foreclosures, many times they think of the old run of the mill bank owned houses that you have to get in a bidding war on at the courthouse or on real estate listing services. That's just not true. Another source for pre-foreclosures where great deals can be had before they pop up on listing services is through your local real estate investor clubs. These investors may have some excellent properties available that only a few people know about which can lessen your competition big time. There's a great real etate investor group in Houston Texas: http://www.R2STexas.com. You'll need to deal with wholesalers- people that have discounted properties under contract or own them outright. Also, some local institutional lenders that lend on rehab properties may know of some great deals also from properties they've taken back from investors in default. Real Estate investors call these guys Hard Money lenders because the terms are pretty tough: High interest rates, interest only monthly payments, and a short fuse- usually 6-12 months and bamm! the house gets taken back. Just like with any lenders, thes Hard Money Lenders don't really want these properties back either so keep that in mind and you might get in on some really good deals on houses that may have already been partially redone! Now go out there and get em Dennis
Ok guys and gals, I know we all like a great deal.... but the Scammers out there are banking on it--- literally. Prospective tenants, home buyers, and yes even real estate investors are getting taken in by this breed of scammers that use legitmate houses and try to pass them off as their own. Many times you pay the price by losing your deposit, down payment, earnest money, or even credit card information. Here's a link to a great forum that I posted rental scam info on: http://www.city-data.com/forum/real-estate/870601-rental-scam-2.htmlWhat to do? Usually if it sounds too good to be true then... (you fill in the rest). Best practices: Employ the help of a realtor. They should be able to tell you who owns a home and what the going rents and home values are. If it's way lower, then you know what you've got. Appraisal district records listing the home owner/tax payer, should match the person you're dealing with. According to the FTC http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt002.shtm and yours truly, these scammers will usually try and get you to: 1) Wire money 2) Send them a deposit before you even meet them or sign up the deal 3) Say they're out of town or out of the country so they can't meet with you face to face. So time to stop the insanity. Report these guys to the FTC and local law enforcement. Be safe out there Dennis
Looks like the Fix n Flip real estate business is back in business. According to the government's new HUD Guidelines that allow you to acquire, rehab, and sell a property to buyer's with FHA Funding without the 90 day seasoning rule. In the past, you had to sit on the property or find some way (via lease option or what have you) to move a property that you recently acquired and rehabbed. Looks like no one really wants properties just sitting there! When you read the guidelines using the direct link to HUD's site, you'll see that the parameters are pretty reasonable. http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdfAll they're trying to do is make sure this isn't a flipping scam and that your selling price isn't over inflated. They still have a problem with you making 20% plus profit on your deals, and the revisions may just be temporary- so keep that in mind. So as long as you play by the rules, you should be able to start moving those properties quickly with these hungry buyers waiting with FHA financing. See you next time! Dennis
I wrote a while back regarding the article at http://austin.bizjournals.com/austin/stories/2010/01/04/daily7.htmlBasically it shows Austin and Houston Texas as number 1 and #6 respectively in Commercial real Estate growth for 2010. This can be an awesome boon for even single family investors if you know what to do: 1) Commercial property, just like single family properties can be controlled via contract or option and flipped and assigned. This minimizes your risk to only what you pay for either earnest money and/or option consideration. 2) Commercial properties can also be bought on short sale as well.
Single family investors who locate owners can expand their search for commercial properties owned by these very same owners and can be first in line for some awesome deals.
Depending on how involved you want to get on the commercial side, you'll need some training and mentoring. However, understanding options and being able to 'control' properties can allow you to profit immensely right from the get go!
Have a profitable day!
Just thought I'd share some interesting information I learned during the holidays related to foreclosures and short sales.
A short sale is when a bank is willing to settle for less than the actual mortgage balance when the loan is going to be paid off at the closing. Most short sales are done on properties in which the owner is in foreclosure. However, I have known of a few short sales being closed on properties that were current and not in foreclosure. But the majority are either in foreclosure or the properties are worth less than the mortgage balance.
As many of you already know, banks that have approved a short sale do not allow assignments at the closing to another buyer. I recently received an email from a short sale Realtor/Investor, in which a bank will allow an assignment at the closing as long as it is all being disclosed and the process to acheive the assignment is approved by the bank. So as long as all of the steps are followed, the bank will approve the short sale assignment.
Also, some banks that are foreclosing on homeowners are now allowing these same homeowners that just lost their home to foreclosure to stay living in the home under a lease agreement! Isn't this unbeleivable? This shows how much banks do not want vacant houses.
Now is the time to "just ask" banks if they'll consider ___________.
You never know, they might approve your request!
Have a profitable day!
Dennis
We're #6 we're #6!!
Number 6 in what? Well, normally we don't get too excited when we're
not number one in anything, but in real estate being #6 is not a bad deal at all.
Let me explain:
According to the real estate investment big boys Grubb and Ellis (based out of California)
Houston ranks # 6 in the country for "long term office, industrial, retail, and
multi-housing investment potential"- Austin Texas being number 1.
We'll take that any day right? Especially being 2 hours away from #1, we can get some of the left overs. Just like being a puppy in a buffet line seeing those jumbo shrimp and pork chops falling onto the floor- not a bad deal at all!
Officials also state that despite the hit that commercial real estate has taken, and will probably continue to take for a while, there will be a quick 20-30 percent sales volume increase in 2010.20-30 percent!! Hee hee! And that's in general.
Now, how about those of us living in the #6 and #1 cities? That increase should be on the upper edge. Can you see the potential there? Can you really?
Well even if you're a single family investor, youcan still reap some huge benefits
from this. How? Glad you asked?
1) Keep an eye out for potential commercial deals when farming your area. Any abandoned or mismanaged apartments, offices, stores? Run across any commercial property/land when farming delinquent tax owners etc?
Can you possibly sign these up and flip
them? Sure can? I've done it twice in my first 6 months as an investor
2) Our good friend Jason's got a whole bootcamp for commercial real estate coming up in February 7, 2010 and then again in March. Give our office a call if you have questions 713-477-5950
3) As an adjunct to your real estate lead generation- expand your search to see if the home owner has commercial interests.
Well there you have it! Expand your horizons, and your profits will come in droves as well.
That's all folks!
Comments. Questions. Help?
Call me or email me at the R2S Office: 713-477-5950
Thanks!
Dennis
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