How do you read this? Maybe I’m just an eternal optimist, but damn this sounds like “blood in the water,” baiting the feeding frenzy. And guess who’s a hungry shark?
Lil ole’ me!
Check it out people. Think the banks don’t have a mess of inventory that they’re sitting on? Think again. If you’re not in the game, you better get in the game – because there may never be a better time to profit from real estate.
Foreclosure activity slowed in first half of 2011
By ALEX VEIGA, AP Real Estate Writer – Thu Jul 14, 12:07 am ET
LOS ANGELES – The number of homes taken back by lenders in the first half of this year fell 30 percent compared with the same 2010 period, the result of delays in foreclosure processing that threaten to stall a U.S. housing recovery.
Banks seized 421,212 homes in the first six months of the year, down from 529,633 between January and June last year, foreclosure listing firm RealtyTrac Inc. said Thursday.
The decline reflects lenders taking longer to move against homeowners who have fallen behind on their mortgage payments. The banks are working through foreclosure [read the rest of the story here]
Webinars – they seem to be all the rage, huh? I’ve never done one, but I’m pretty psyched for this one tomorrow night!
Are thinking about getting into RE investing, or perhaps you’re flipping houses now and you feel like you could be doing so much better. Maybe you think the market is dead and you can’t make money flipping. Maybe, you’re scared – or you have no money.
My dear friend – with all due respect – its time to get off your ass, put down the remote to the TV, and invest in you. This webinar is gonna blow your mind. If the ONLY question answered is “Can I make a TON OF MONEY in this current market,” – wouldn’t that be worth the time you spent on the webinar? If I can prove that to you – shouldn’t you be on this call?
Register now! Click anywhere on the image below, and you’ll be taken to the sign-up page.
[REGISTER HERE. TUESDAY JULY 5TH, 2011 @ 8pm Eastern.]
Seriously, if you’re getting all your news from the nightly news, this Webinar will be an eye-opener for you.
I received more comments on my last post than any previous post. Looks like I struck a cord, huh? I could (and should) write a book on how to not get taken by contractors, but before I do, I’ll just share all my info here. Just call me, Mr. Good Karma! So this will be the kick off post; Part One of a series of posts on How To Sucessfully Work With Contractors so that you can (one day) be a Professional FullTime-Rehabber like your old pal; Craig Fuhr.
Let’s begin our journey with what NOT to do.
As an example, let’s say you’ve just purchased a crappy house for $68,000. Because you’re smart, you did your homework and have a pretty good idea that the rehab should cost about $65,000. Comps in the area suggest a back end (ARV) of $215,000. Sounds like a sweet deal, huh? <Shyly> Yeah, its one I just did.
You close on the purchase, and like every rehabber, you’re just busting at the seams to see some dust fly. So you set up a meeting with a contractor. If you’ve been doing this as long as I have, you’ll want to to swing some hammers THAT day! Time is money, right? Hold on there, Speed Racer. First thing you need to do is, get out a fresh pad of legal paper and a shiny new pencil. As you walk through your crappy house, understand (I mean, really internalize) that EVERY rehab no matter how big or small has a rhythm and rhyme. It has a flow. And, you can never go against the flow. Like the Ten Commandments hewn into stone, so is the precise logical workflow of a rehab. Do ya’ hear me? Don’t mess with the flow! You wouldn’t start drywalling before the plumbing was done, right? So, go through each logical step of the flow – and associate each step with a precise cost.
Something like this: demo will cost $7000.00, framing will cost $5500.00, roof $4500, mechanicals $21,000.00, doors & trim; $2500.00, windows… You get the picture, right?
If you follow my directions, at the end of this process, you will have a very basic Scope of Work (SOW). Now, let’s say you’ve decided to let a General Contractor handle the whole process for you, and miraculously, he agrees that you were right – the cost of the rehab will be $65,000.00. The first thing he’ll want is money. Like most greedy penniless bastards, he’ll have the balls to demand 1/3 of that $65,000.00 up front before the first hammer is swung. Get out your calculator. Mine says, “Are You CRAZY? OUCH! Don’t do it! That’s $21,400.00!”
I have a really fancy calculator.
First things first; how about getting something in writing? I’ve never been a fan of a written contract with contractors mainly because I know you can’t take blood from a stone. 99% of these guys have no money, so even if a judge finds them in breach of even the best contract – how do you suppose he’ll make the contractor pay you if the contractor has no money! What I do do (I said, “do do”) is make the basic Scope of Work (from above) into a much more detailed document. This post is not about writing a detailed SOW, so I won’t get into all the gory details here – but know this – once the formal SOW is developed, the contractor then signs it, and it becomes the work blueprint and best contract you’ll ever have.
So you have a signed SOW, and there he is; Mr CON-tractor standing there with his hand out waiting for a super-fat $21,400.00 check. You’re ready right? You’ve got your SOW and you’re swollen checkbook is burning a hole in your pocket. Wait! Hole on! You’re still not ready to go! You can not give him a dime yet. Doing so would be a GRAVE error and would be going against the natural work flow!
Stay tuned. I’m just gettin’ started here. I’ll tell ya more in my next post!
I want to hear what you have to say about Part 1 of How to Successfully Work With Contractors.