In yet another attempt to completely ruin my business model (yes, its all a move against me only), the Federal Government; specifically the FHA is changing its guidelines AGAIN for home buyers. If you are a rehabber, you must read this story from The Edmund Sun entitled, “FHA Loans To Cost Homeowners More.”
The title sounds good already huh? How do you think this will effect your rehabbing business?
Link to story is HERE
I’ve been saying for months now that there are three variables rehabbers must follow (especially in Baltimore) – to sell their houses quickly and for the maximum profit. If you follow this simple formula (and you buy correctly) while rehabbing your houses, I’m telling ya; YOU WILL MAKE MONEY. If you stray you will get bit, so says the Baltimore Sun. This is the biggest real estate investing tip revealed (again).
Craig’s Formula For Successful Rehab Flips
- Buy in Places People Actually Want to Live. Kind of a let down, when my super secret formula starts with Location, Location, Location, huh? It ain’t really rocket science folks. Newsflash; along with buying at the right price, selling is still about location, Baby. Stop buying houses in sketchy neighborhoods; places where the renters outnumber the homeowners and where you’ll find blinking blue police lights. Buy in solid homeowner areas and stay off main roads.
- Do a Super-Sweet Rehab. There’s a lot of listings on the market. Uhm, that’s your competition. In my area, I’m competing with a ton of “nicely kept,” or “well-maintained,” listings, so when my kick-ass, super crazy, sparkling clean and new houses hit the market, they far exceed what I’m competing against on the MLS.
- Price Your Rehabs Below the Market. Ask yourself this; if a “nicely kept” house is selling for say, $200,000 in 45 days, why wouldn’t your kick-ass brand new rehab sell for $190,000 in 30? Don’t get greedy folks. Its OK to make big profits, but don’t think you can make the market. This is SO IMPORTANT, and its why I sell houses in 9 Days while the average is 120 days.
I so wish I could tell you that there’s more, but if you live your rehabbing life by the three simple rules above, you should be able to safely sell houses in this market.
Check out this great Baltimore Sun entitled Real Estate Asking Prices Fall in Baltimore Area that talks specifically about rule #3. I still know people playing the list it high and reduce it to sell game. That strategy was played out a year ago!
Remember the beginning of the mortgage meltdown? One of the first big banks to fall was IndyMac Bank. Who do you think bought the assets (all those mortgages) of IndyMac after the FDIC took over? What kind of a deal do you think the new owners got? “Hope and Change,” Baby! Its working out real well for the buyer’s of IndyMac Bank.
The unbelievable video below from Think Big Work Small became viral overnight. It has been seen by millions on Facebook and YouTube. Its garnered so much attention that the FDIC actually moved to rebut little ole’ TBWS’ claims in the shocking video via a story originally printed in Reuters BreakingViews.
I’m telling you – you will be shocked when you see this video, and you should send this link to ALL of your friends too. Its time to throw them all out in Congress. No matter your political affiliation, we need to clean-out the swamp (thanks Nancy Pelosi) once and for all.
This is SICKENING! Go ahead. Watch it – then watch it again. Then tell all your friends to do the same!
← CLICK the picture to see the video on ThinkBigWorkSmall.com
Caught in the act. Tax Lien Sale mischief in Baltimore. Hey, here’s a shocker for you; smart guys with a ton of money duping the system in Baltimore City. Even the lowly passers-by bidding at recent Tax Lien Sale auctions in Baltimore have known for years that the big sharks were in cahoots. Well, it seems the sharks have finally been snagged and their getting slapped pretty hard. Oh how the mighty have fallen.
If you like reading about big-shots being taken down, or if you are even remotely interested in the tax lien sales in Baltimore, you must check out this post from my good buddy Ned Carey. Ned is an all-around good guy who has made some pretty nifty money over the years buying tax lien certificates at the Baltimore tax lien sales. I’m not smart enough to figure all that stuff out, but Ned is – so ask him questions!
Ned’s Link: The Last Shoe Is About to Drop
Incidentally, I used to speak with Jack Stoloff; the old man in the story who just pleaded guilty. Its a wonder this rich old guy wasn’t permanantly in traction from patting himself on the back so much. He loved to regail young guys like me on all the money he had made over the years. Read Ned’s story to see how old Jack is about to lose a crap-pile of mula!
Oh the weather outside is frightful, and that’s just the way my 3 year old likes it. In usual fashion he woke us up this morning at about 6:05am but on this snowy morning he exclaimed, “Mommy, that’s more snow than I’ve ever seen in my whole wide world!”
I was actually planning on working today as I have been a busy little squirrel stocking up on and saving houses for the winter. Yep, that’s right we closed on the purchase of three more this week; one on Thursday, and two on Friday. I also got one more under contract this week. Stay tuned for all the video updates!
That, ladies and gentlemen brings the pipeline to NINE. Nine houses to be rehabbed and put back out on the market as soon as possible.
So I have a request – COMMENTS! I’ve even made it easier with a new commenting software (DisQus) installed below. What I really need right now is comments on where I can find some cheap but nice tile. I’m looking for closeouts, lot sales, etc. I need 16 to 18 inch, or stuff that goes beyond the run of the mill.
Let me know!
Finally – if you have kids who still believe, you have to check out Santa’s Portable North Pole. Its 100% free and 100% magical. You can craft a personalized video from Santa directly to your kids. My little guy almost pee’d his pants when he got an email from Santa. Very cool!
Taking an ever so slight departure from real estate investing, I give you the following hard-hitting story from the Baltimore Sun entitled,”100 Things Baltimore Foodies Must Try.” If you’re looking for the 100 MUST “eats” in Charm City, you have to check out this topflight assortment of Baltimore’s Best places to get your grub on. As a native Balti-Moron, I’m proud to say that I’ve hit many of the places listed. But alas, eating at so many of these establishments has landed me on a crash diet for the next 60 days so I won’t be hitting them any time soon.
Enjoy the well-done article here
Hey – did I mention I need wholesale real estate deals? If you come across a smoking rehab deal, you have to email or call me first. I’m buying at least three houses per month at this point – and I’m paying huge wholesale fees.
God love ‘em. He giveth and on April 15th, he’ll most certainly taketh away. I don’t know how we’re going to get ourselves out of $10 trillion dollars in debt, but I’m gonna milk this tax credit for all its worth by selling as many rehabbed houses as I can until the $8000 well runs dry! No one would ever accuse me of loving more government, but God do I love this tax credit and how its creating a frenzy in the market!
A Big New Tax Credit for Homebuyers
WASHINGTON – Missed out on Cash for Clunkers? Congress has another deal for you: Buy a home before May 1 and collect up to $6,500 from the government. If you’re a first-time homebuyer, get up to $8,000. Read the rest here
at John and Kate are up to. So I’m checking my email tonight and I come across this article on Yahoo, “Traits Billionaires Share.” The article like most on Yahoo, proved to be pretty lame, but it got me thinking about all the books I’ve read on the subject.
What would you add to the list below? I love reading so tell me what’s on your list!
Think and Grow Rich by Napolean Hill
Secrets of The Millionaire Mind by T. Harv Ecker
The Millionaire Mind by Thomas Stanley
The Success Principles by Jack Canfield
Come On! Tell me what you’re reading!
If you know anything about foreclosures and bank owned properties, you know they are plentiful out there. The market is awash in bad debt and bank owned properties. I’ve been buying bank owned properties (or REO’s) for over a year, and in that time it seems the tide of available properties has risen, fallen, risen again – and now it seems the banks are holding back a bit.
But even those sitting on the sidelines know the the banks are holding back a veritable crap pile (that’s a technical term) of houses. The word on the street for the past few months is that the banks are about to unleash the motherload. Ask anyone in the business of moving bank junk, and they’ll tell you – “The Tsunami is coming.” Check out what the info-heads at CNBC have to say (see below).
If you want my two cents – I quite frankly don’t see it. But maybe I’m wrong.
What do you think? Will there be a flood or a trickle?
While checking my email today I ran across this story on the front page of Yahoo!. Gotta tell ya, I take a way a lot of life lessons from this one but I’d love to hear your comments. In a nutshell, the story’s author; Mary Pilon from The Wall Street Journal writes about a gentleman; Carlos Araya who until, at some point in 2007, was working on Wall Street as a crude oil trader. At the time Mr. Araya was earning over $250,000 per year.
Living the high life as a top-earner, Araya once ordered lobster and fine champagne on a regular basis at The Palm Restaurant in NYC. After losing his job and going on many interviews for a similar position on Wall Street, Mr. Araya now works as a host of the same restaurant he once frequented as a customer. His current salary: $25,000
Read this story and comment below on what you take from it.