Subscribe to Real Estate Investing Blog | Craig FuhrNews Feed

Is clear that more foreclosures are coming. I think I’ve been beating that drum pretty loudly of late. Here’s some interesting foreclosure news: There is one county in my market of Maryland where 75 REO listings hit the market in one week (week of April 22nd). That’s pretty astounding given the fact that in some recent weeks there have not been more than 75 total bank-owned listings.

U.S. Foreclosures Will Increase

A recent report (see the video) below from affirms what we have all believed for a while. Foreclosures will surely increase. Look people, I don’t care what the media is telling you, the economy is NOT getting better. People are still unemployed or under employed, and as such mortgages are simply not getting paid. And now that the robo-signing scandal is largely behind us, and the banks have received their $26-million dollar “how do you do” from Obama and friends, I think the flood gates are about to open!

Are you ready? If not – you better get ready!

We’re coming into a hot season, I can feel it. Those of you who know how to scour the internet for great deals are about to ride a pretty sudsy wave. Those of you who are lacking the knowledge on how to capitalize, are gonna be left in the dust. I’m currently rallying all my private money sources and I’m recruiting more. I’m also marketing and putting the word out to wholesalers. What will you do to get up to speed?

Will you know the REO agents in your area? Will you have a good solid proof of funds letter? Will you know your target markets like the back of your hand – meaning – will you know the comps and the ARV’s? How about buyers? If you’re a wholesaler will you have buyers like me already lined up and salivating for you to find them HOT HOT deals?

Now the’s precise time to start planting those seeds of success. The next wave is coming.

Check out the video below. Then, if you’re not ready, click on the banner to the left and get you some solid education from one of the hottest wholesalers in the county. This girl really knows her stuff!

May Not be a Tidal Wave of Foreclosures

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.