Hi, I am a buyer... I submitted a bid to purchase a home in Bradenton, FL in mid January 2013. The Seller accepted. I do not have a realtor. The Seller has an Attorney and a realtor. The realtor works for the attorney's office. My contract noted that no other bids could be submitted. A BPO was completed in early April. A negotiator was assigned. It is only 1 loan. I did obtain an attorney in the area shortly after I submitted my bid. The Seller's realtor says she calls the bank often to check in. A few weeks ago, the bank needed the Seller's 2012 Income Tax files... turned out he didn't file. He signed a document stating that he did not file and the realtor submitted this to the bank.(He owns a small business) Last week (7/25), the realtor contacted me and asked that I sign and date another "last page" of the contract. Does it seem like this is the last step and approval is close or should I just give up???  

* Also, the Seller's attorney's office advised that the Seller not sign off to allow the bank to talk directly to me or my attorney. I did phone the bank and asked that they update the record/file with my full name, address and phone number so they have it. The contract just has my name. I thought.. what if they want to contact me!!?!?

* I am not an investor.. this would be our residence and this is my first home purchase.

Thanks in advance for you comments, they are greatly appreciate.

Good morning Superstars.

We have had several members ask us about our referral program. So.....here’s how it works.

Short Sale Superstars receives requests from sellers and buyers needing assistance. These referrals are sent out in a group message to our Advanced Short Sale Training Group members first. Becoming a member of this group requires going through our Advanced Short Sale Training. The cost is $147.00 for a 2 year membership and 13 hours of training (audio). Click the link above for more details.

If we do not have an advanced member in the area needed we then send out a group message to the members of the Referral Group. Joining the Referral Group is free.

If there is still no one available to assist we then send out an email to all members of Short Sale Superstars. Also free.

Currently we charge a 20% referral fee on properties that sale for $100,000 or more. Referrals are paid to REGrow, LLC a Florida Licensed Real Estate Brokerage. REGrow, LLC is the owner of Short Sale Superstars.

So.....are ready for some referrals?

Do You Need More Short Sale Listings?

Short Sale Superstars wants to make generating Short Sale leads easier for you. So.....

.....here is aFREE one hour course on Short Sale Lead Generation that may help you.

Let's make 2013 a banner year for Short Sales. Together we can help a lot of folks avoid foreclosure.

Good morning Superstars.

Here's a sampling of this week's Superstar discussions.

And don't forget to sign up for the Webinar this Wednesday: How to Set Up Your Lead Nurture Campaign to Grow Your Real Estate Business.

Discussions	Replies	Latest Activity
Banks manipulating appraisals? Just had a nice long conversation with an appraiser who is getting alot of REO and short sale appraisals. Out of frustration, I called him… Started by Jeff Payne	6	9 seconds ago Reply by Bryant Tutas
Advice needed on short sale & dual agency I was contacted today by a lady referred to me by one of my current short sale clients. This lady explained her father passed away and the… Started by Sharon Burgos	2	3 hours ago Reply by Brett Goldsmith
Is this normal for BOA?? I wonder if anyone has had this kind of dealing with BOA?? I was a buyer on a BOA short sale property. Made the offer and it was accepted… Started by Deanna B	2	5 hours ago Reply by Deanna B
CBCS is the third and is holding my short sale hostage I need really good upper management information. I know its a collection agency. We have a home listed that back in 2007 was worth abou… Started by Terri Barrow	39	16 hours ago Reply by Dean E Eshelman, CPA, CDPE, IRES
Anyone out there completed a Chase short sale that is active in bankruptcy?? I've negotiated tons of short sales, however none have been in "active bk". I am reaching out to anyone who has completed a chase short s… Started by Adda Pina Renner	1	16 hours ago Reply by Becky Martin
HOA PAYOFF WITH BUSINESS LAW GROUP PA/ TAMPA FL Hello Superstars - have you had any success with negotiating HOA payoff when it is handled by Business Law Group PA out of Tampa. My short… Started by Anna	2	yesterday Reply by Wayne Brooks
Electronic or Wet Signature for US Bank VA Compromise Short Sale Hello Jeff Payne and anyone else who may know the answer... will US Bank allow DocuSign/electronic signatures from a buyer on a VA Comp sho… Started by Frank Biganski	0	yesterday
Fannie Mae and Freddie Mac Control MLS Market Time Fannie Mae and Freddie Mac are now dictating market time. Short sales that are Fannie Mae or Freddie Mac loans must be active in the MLS fo… Started by Wendy Rulnick Another awesome Short Sale Superstars Referral closed!!! Wendy Rulnick, the check is in the mail! Thanks so much for the referral Started by Jeff Payne 1 on Thursday Reply by Wendy Rulnick	40	yesterday Reply by Jeff Payne

Short Sale Superstars Referral Program

For those that saw us on the short sale cruise in February – YOU ALREADY KNOW!!!

For those agents that are currently making better use of their time and letting us process your short sales – YOU ALREADY KNOW!!!

FINALLY you can get what you are worth!!!

Short sales are can take dozens of hours to complete and some banks finally are admitting THEY LOSE MORE MONEY when they have to foreclose!!!!

In our first monthly newsletter -    "News From Short Sale Shop"

we will tell you:

1)            Which two BIG BANKS that are paying up to 8% commission on their portfolio loan short sales (where they are both the Servicer AND the Investor)

and

2)            WHICH BIG BANK CURRENTLY OFFERS UP TO 10% COMMSSION TO AGENTS THAT COMPLETE THEIR PORTFOLIO LOAN SHORT SALES!!!!

For those that want to know NOW, want to sign up for our newsletter, or want help processing THEIR short sales, email me - Ben@ShortSaleShop.net

On behalf of the team at Short Sale Shop, we wish all agents helping homeowners continued success!!!

                                                         www.ShortSaleShop.net

The Wisconsin housing statistics are in for June of 2013. Here is an excerpt from what the Wisconsin Realtors® Association (WRA) had to say:

Wisconsin home sales rose an impressive 11.4 percent in the first six months of 2013 compared to last year, according to recent statistics compiled by the Wisconsin REALTORS® Association (WRA). In June alone, Wisconsin home sales were up 3.1 percent relative to last June, posting the 24th straight month of positive sales growth in the state. Median prices also continued to increase year-to-date, rising 7.7 percent to $140,000 compared to the first half of 2012. In June, prices were up 12.3 percent to $159,500 compared to June 2012.

“The pace of sales in the first half of this year is well ahead of last year,” said Renny Diedrich, chairman of the WRA board of directors. "which is especially noteworthy since 2012 was an exceptional post-recession year for housing sales.” Diedrich said.

Adding to the good news was a significant drop in foreclosures during the first half of 2013. Unique foreclosures in the state are down 37.2 in the first half of 2013 compared to that same period in 2012, and down 44.5 in the second quarter this year compared to quarter two of 2012. “All in all, this paints a very healthy picture of the Wisconsin residential home market at the midyear point,” Diedrich said.

“We’ve seen very strong growth in housing prices since they started improving 16 months ago,” said WRA President and CEO Michael Theo. And while higher prices impact housing affordability, homes in Wisconsin remain a good value.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales & prices have been increasing over the past few years. Both Dane and Rock counties are showing marked improvements in the number of homes sold and the price at which they are being sold at. This summer has been really hot for the properties that are priced right! There's been a large increase in sale prices, as you can see below.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

(818)276-6882  Lupe Soto  Short Sale Negotiator (hablo espanol)  "NO commission"  por favor sirvase comunicar con Lupe Soto para explicarle como evitar embargo de su casa, condo o de su segunda inversion o renta hipoteca. Gracias.

http://www.ShortSaleAgentLupe.com

AREAS de servicio en San Fernando Valley, Los Angeles County, Ca

Arleta, Burbank, Canoga Park, Calabasas, Chatsworth, Encino, Glendale, Granada Hills, Hidden Hills, Lake Balboa, Lake View Terrace, Mission Hills, North Hollywood, North Hills, Northridge, Panorama City, Pacoima, Porter Ranch, San Fernando, Reseda, Sherman Oaks, Studio City, Sylmar, Sun Valley, Sunland, Shadow Hills, Toluca Lake, Topanga Canyon, Tujunga, Valley Village, Valley Glen, Van Nuys, Universal City, West Hills, Winnetka, Woodland Hills, Hollywood, Hollywood Hills and nearby areas of San Fernando Valley,

Nearby areas in Los Angeles:  Santa Clarita Valley, Palmdale, Lancaster in North Los Angeles California, USA.

Counties:  Los Angeles, San Bernardino County, Ventura County, Orange County, Riverside County.
TIPO DE PROPIEDADES:
Casas, Condos , Townhouses, Duplex, 2 casas en un lote, Unidades en Venta.

Hello,

I am going through my first AS-IS, short sale transaction (as a Buyer's Agent) and would like to know who is responsible for turning on water services at property?  Property is vacant.  The Lender has winterized the plumbing supply in the house, yet, has allowed the Owner (non-occupant)  to keep electricity on.  Is it the Purchaser's, Seller's or Lender's duty to hire a plumbing company to turn on water for inspection purposes?

Please advise.

Thanks,

Kim 

I am initiating a short sale with World Savings Bank by way of Wachovia and I was told that the only thing needed once Third Party Auth form is received  would be the Offer/Contract, Hud 1, & Hardship letter. Please let me know if you have had any dealings and/or if this is the correct process. Does not sound like it but anything is possible these days.

Good morning Superstars.

Here is a sampling of this week's Superstar discussions.

Discussions	Replies	Latest Activity
CBCS is the third and is holding my short sale hostage I need really good upper management information. I know its a collection agency. We have a home listed that back in 2007 was worth abou… Started by Terri Barrow	1	16 hours ago Reply by Jeff Payne
CitiMortgage FHA Short Sales What is going on with these lenders?! I had 6 different CitiMortgage team leaders tell me that they are unable to review a homeowner for th… Started by Alexis Adams	4	yesterday Reply by Ron Scribner
Caliber Home Loans? Charges agents FEE to use their negotiation system??? We have a new sale that came in and it went from Vericrest to Caliber. Haven't dealt with them so we went to their site which directs you… Started by Smitty	4	13 hours ago Reply by Pattie Johnson
WEBINAR: How to Set Up Your Lead Nurture Campaign to Grow Your Real Estate Business. Good morning Superstars, Take a wild guess as to how many Real Estate Agents we engage with that DO NOT have a lead nurturing campaign!!… Started by you	1	on Wednesday Reply by Wendy Rulnick
Divorce and ex won't cooperate I have been working on this shortsale for 3+ years and 4 different buyers. The first is with BOA which I thought was the worst but the 2nd… Started by Norene Williams	16	5 hours ago Reply by Sarah Eakes
BofA HAFA Short Sale Hello anyone have any experience with these. I am a buyer and put in a offer in one and offer was accepted by seller. Listing agent said th… Started by edub	5	8 hours ago Reply by edub
Short sale approved but they want seller to miss a payment! We put contract on a short sale through Suntrust in April. Bank approved short sale yesterday under the condition seller misses 1 payment!… Started by Erica JOIN US FOR THIS UPCOMING WEBINAR How to Set Up Your Lead Nurture Campaign to Grow Your Real Estate Business. During this webinar Copywriter Granison Shines, Chief Marketing Officer of Direct Business Marketing – http://DirectBusinessMarketing.com. is going to let loose on: Why a Lead Nurturing Campaign is essential for your real estate business What message you should convey to existing leads, new leads, and current clients 3 tips to get your emails opened – therefore increasing your click-through-rate (CTR) 3 things your technological system must have to make your campaigns Plus, the #1 copywriting rule you have to learn to create a successful Lead Nurturing Campaign Take my word for it, you’re going to get something from this webinar IF you attend. There’s not many successful direct–response copywriters out there that will give it to you straight from the hip and give you the same tools he uses to make his client campaigns soar. Event details: Date: 7/31/2013 Time: 11am PST Location: Your computer Investment: Complimentary   Take-A-Way: DBM’s Lead Nurturing Flowchart DBM's Lead Nurturing & Content Plan for Real Estate Agents REGISTER FOR THIS WEBINAR HERE.

Servicer - Wells Fargo
Investor - Freddie Mac
Mortgage Insurer - NONE

We received this in Equator this morning, apparently:

Equator Message:

Offer in Review The Investor is requiring a net of $242,000 based on the deliquency of this file. Discuss with the buyer how they would like to reach the net requested. Due to the fact that the borrower is current on the mortgage, the minimum net proceeds (mnp) is substantially higher than a property that is delinquent. The current offer does not meet the required mnp.
Jul 16

hhhmmmmm.....isn't that interesting?????

Miss payments, and they will approve a lower offer?????

Contact Short Sale Shop - Info@ShortSaleSHop.net

to learn how we can help you close your short sales!!!!

It Takes a Good Plan to be Successful in Rental Property

(Investment Properties: Part 5 of 5)

For people considering a purchase of a rental home this is truly an opportune time. The tremendously low mortgage rates coupled with attractive home prices makes this a buyer’s market.

However, numerous reports indicate that home prices are rising consistently, although modestly. If you are considering buying a home it is time to take action. Here are a few guidelines to help you plan out your first purchase.

Look to Experts

If you are looking at your first investment property purchase it would be wise to work with a real estate agent that is experienced in these kinds of deals. An agent that intends to work with an investor over the long term will be meticulous about the property recommendations to insure the investor meets their financial goals and comes back to the agent for more homes.

It is also a good idea to speak with other investors. They can provide you some guidance about what to look for in homes, what areas to avoid and other general information that is generally not found in a textbook.

What Type of Investment Do You Wish to Pursue?

Some first investors choose to buy a home at a great price and rent it out on their own. Others use the service of a management firm. And then there are the individuals that buy a home, spend some money on repairs and put the home back on the market at a price to make a profit.

It is important to consider your options and tolerance for risk. Buying a home that you can easily afford while looking for a tenant may be a good opportunity to get your feet wet.

Develop Your Team before the Purchase

If you plan to manage the property on your own, there will be a few individuals you need to contact prior to purchase. First, you will need a lender that can handle investment loans. Second, you should consult with an accountant and attorney to make sure you are covered legally and that you minimize your tax liability. Third, you should speak to an insurance agent about the proper policies to cover your investment. Finally, you will need to talk to a general handyman or one each of plumbers, electricians, roofers, painters and HVAC repairmen. Having these people lined up and ready to work for you will make much of the process go by smoothly.

Choosing the Right Area

It is important to pick a home in an area that is accustomed to rental property. Places with a high population close to schools and shopping districts are usually safe bets. Rural areas can be difficult simply because the number of available applicants is typically small. Keep in mind that you may want to sell the property in a few years. If you buy the smallest, or the largest, home in a neighborhood it can be tough to unload later.

Buying an investment home should be approached as a strictly business transaction. Decide how much you can comfortably invest and how much you hope to make as a return and let those types of items help you with the decision.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

B of A HELOC is DEMANDING that the Buyer pay for and SEND THEM an appraisal.

Without this, he will close the file.
My negotiator actually told me to FIND A NEW BUYER, one that will pay for and SEND THEM an appraisal?????!!!!

Are you Serious!!!!
I have escalation contacts....but this is just ABSURD!!!!

WHY WOULD ANY BUYER PAY FOR AN APPRAISAL FOR THE BANK BEFORE GETTING AN APPROVAL LETTER!!!

DUMB DUMB DUMB (kindest words I could find)

How to Pick Profitable Rental Properties

(Investment Properties: Part 4 of 5)

From looking at various homes to actually making a profit, investing in rental properties takes many steps. A person that is new to the process may feel a bit overwhelmed. In order to reduce risk and increase your chances of making positive cash flow with real estate, here are some tips on picking a home.

Good School Zone

A good school zone will always attract families. Many families will be able to purchase homes in the area but some will have to rent a while in order to get their finances in order. These are the types of people who will stay in a home for 2 or 3 years and be potential good tenants. Focus on schools that have high standardized test scores and achieve well in the areas of math and science.

Avoid High Crime Areas

This may seem obvious, but it needs to be pointed out. Homes in areas that are subject to more than average rates of crime will be tough to rent out. Furthermore, the crime rate will drop the rental rate. This can cause a breakeven or even net loss on the monthly cash flow.

Demographic of Neighborhood

Each neighborhood will have its own miniature set of demographics. A community next to a college or university will likely be made up of homes rented almost exclusively to students. An older neighborhood with higher priced homes will likely have couples that are middle aged and higher. Study the neighborhood carefully to make sure there is an available market of tenants that fit the demographic.

Employment Opportunities

Another factor that can heavily influence the profitability of a rental property is the number of available jobs in the nearby area. A new factory, expanding hospital or growing university are places that will add on more people and need them for full time work. Many times people will obtain a job first and then start looking for nearby homes to rent. Sometimes these people can be short term renters but it is possible to find someone that locks in a home for 2 or 3 years.

Check for Vacancies and Homes for Sale

For a new subdivision that is under construction it is common to see multiple signs indicating new homes for sale. However, for an established neighborhood, a high number of for sale signs is a kiss of death. This typically indicates that the area is on the decline. An even worse condition is the presence of several vacant homes. These are homes that have been abandoned for various reasons. Steer clear of these areas in your own best interest.

Be on the Lookout for Problems from Mother Nature

Some areas are more prone to natural problems than others. Issues like flooding, mud slides and tornadoes seem to be attracted to certain areas. The insurance for properties in these areas can be quite high and chip away at the monthly cash flow for the property.

Finding a good property based on these guidelines does not automatically mean that your home will be a cash cow. However, it should increase your chance for success in a very lucrative type of investment.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Financial Gurus Still Believe Rental Property Is a Safe Investment

(Investment Properties: Part 3 of 5)

The record low interest rates for mortgages have helped the real estate market to slowly improve month by month for the last several quarters. Thanks to these low rates real estate has continued to be a sound investment for people who wish to diversify their portfolio. For those people that are considering buying their first investment property here are some considerations to keep in mind.

Neighborhood History

It is wise to pick areas that are accustomed to rental homes. One of the most obvious choices would be neighborhoods close to a major university or college. If there are no colleges or universities in your area then look for certain neighborhoods close to quality schools. Schools often attract stable, hardworking tenants that will likely pay on time.

Understanding the Role of Landlord

There are two major ways to prosper from owning rental property. The first is to buy the home at a significant discount and then sell the place at a profit after the home has appreciated. The second way is to have positive cash flow. The second method takes considerable planning. Just because the tenant is willing to pay more per month than the actual mortgage payment, it does not mean that the home is profitable. There are other items to consider such as regular maintenance and repairs.

Determining What to Charge in Rent

Appraisers and real estate agents can provide information about rental rates for a certain area. This gives the investor some idea of what can be charged per month. The monthly mortgage amount and allotted figures for maintenance should be subtracted from the rent. There should be at least 15% left over after subtracting the payments and expenses. Otherwise, you run the risk of losing money.

Choosing Tenants

Once you have some interested parties and they seem capable of paying the rent it is time to begin the screening process. Experienced landlords hold fast to the rule of checking out prior landlord references as well as the tenant’s credit file and even a criminal check. The criminal check could spare you from inadvertently leasing to a felon and finding major damage to your home due to a police raid.

Research the Possibility of Using a Rental Management Firm

Some companies specialize in managing properties for investors. These firms will review applications from potential tenants, handle collecting rent payments and, most importantly, take care of the maintenance issues that pop up at the most inopportune times.

For instance, if you get a call in the middle of the day that a toilet is leaking, can you leave work and fix it? If you get a call at 2 am on Saturday morning notifying you of a sudden hole in the roof, are you capable of fixing that problem? Some people have the skills and time to manage these issues, but most people do not. In these instances it is a good idea to use the service of a reputable management firm.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Good morning Superstars,

Here's a sampling of this week's Superstar discussions.

Replies	Latest Activity
My hands are tied When we initially signed the contract we were told that even though this is a short sale it will NOT take a long time and the process was g… Started by Tara	6	10 hours ago Reply by Harry Clay
B OF A shortsale rejecting sellers assist I did an agreement of sale for a shortsale that is backed by bank of america. The sellers have a FHA loan. State is PA. We put down $12,000… Started by Mike F	10	21 hours ago Reply by Jeff Payne
Attorney fee & processing fees on short sales when buyer is purchasing using a VA loan? Does anyone know how when the buyer is purchasing a short sale with a VA loan an Attorney fee of 800.00 for obtaining the approval(s) &… Started by Michelle Marina	6	yesterday Reply by Kevin - Greenville, SC
Short sale approved but they want seller to miss a payment! We put contract on a short sale through Suntrust in April. Bank approved short sale yesterday under the condition seller misses 1 payment!… Started by Erica	5	yesterday Reply by Wayne Brooks
REDC Gross Mismanagement of Bank of America file - Escalation? I'm a 3rd party negotiator and I've been working on a HAFA short sale since August, 2012, when I jumped in. File is Bank of America being… Started by Linda Ippolito	24	yesterday Reply by Ron Scribner
Fannie Mae and Freddie Mac Control MLS Market Time Fannie Mae and Freddie Mac are now dictating market time. Short sales that are Fannie Mae or Freddie Mac loans must be active in the MLS fo… Started by Wendy Rulnick REFERRAL PROGRAM DETAILS We have had several members ask us about our referral program. So.....here’s how it works. Short Sale Superstars receives requests from sellers and buyers needing assistance. These referrals are sent out in a group message to our Advanced Short Sale Training Group members first. Becoming a member of this group requires going through our Advanced Short Sale Training. The cost is $147.00 for a 2 year membership and 13 hours of training (audio). Click the link above for more details. If we do not have an advanced member in the area needed we then send out a group message to the members of the Referral Group. Joining the Referral Group is free. If there is still no one available to assist we then send out an email to all members of Short Sale Superstars. Also free. Currently we charge a 20% referral fee on properties that sale for $100,000 or more. Referrals are paid to REGrow, LLC a Florida Licensed Real Estate Brokerage. REGrow, LLC is the owner of Short Sale Superstars. So.....are ready for some referrals? Do You Need More Short Sale Listings? Short Sale Superstars wants to make generating Short Sale leads easier for you. So..... .....here is aFREE one hour course on Short Sale Lead Generation that may help you. Let's make 2013 a banner year for Short Sales. Together we can help a lot of folks avoid foreclosure.	3	yesterday Reply by Brett Goldsmith

Things to Consider Before You Add "Landlord" by Your Name

(Investment Properties: Part 2 of 5)

Owning investment property has been a proven means of gaining wealth. However, it is not as passive as some information marketers would have you to believe. Here are some items to think about before jumping in to the world of landlords.

Handling Repairs

All homes need maintenance and repairs. It does not really matter how old the home is, whether it is brick or wood or even a modular home. To protect tenants most states have adopted laws that favor the renter when repairs are not made in a timely manner. If you are handy with tools and have a knack for being able to fix anything that breaks then this may not be a major issue.

However, if you have a full time job, a family and you are not comfortable with most repairs then you will need to decide how to handle the roof leaks, toilet overflows and broken appliances that come from owning a home. You can choose to use a property management company that will handle all the repairs for you and simply bill you. Or you can contract with your own handyman service.

Managing Tenants

The majority of tenants will pay the monthly rent and treat the place as if they actually owned it. However, a small percentage of people can cause a large number of problems. Lack of maintenance can lead to mold and mildew throughout the property. However, major problems like parties that attract police, illegal activities that end up on the news and major damage to floors, ceilings and walls can cause a nightmare for even the most patient person. Some people have the personality to handle this kind of stress while others want no part of the problems.

Collecting Money

It is highly likely that at some point you will have to call on your tenants, either on the phone or in person, and get them to pay for their past due rent. This is just a fact of being a landlord. With these situations comes a need for good judgment. Some people really do run in to bad luck and simply need a few more days to pay the rent. Others are either poor money managers or simply lazy and refuse to pay their obligations on time.

Evictions

It may seem on the surface that evictions favor the landlord. Once the renter has stopped making payments then the landlord simply makes a plea to the local court to have the person(s) removed.

However, things are not that simple. First, you will lose a month’s rent waiting on the tenant to pay. If the court system is backed up then you may have to wait another month to get a hearing date. In the meantime the renter can leave a major mess behind that requires extensive cleanup and possibly new paint and carpet. Once again, as stated before, the majority of tenants will pay on time and not cause problems. But an eviction can be problematic and expensive and you need to be prepared for it.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Advice About Purchasing Your First Rental Home/Property
(Investment Properties: Part 1 of 5)

Before buying that first piece of rental property it is important that you answer a single question. This question has nothing to do with your credit score, your experience with real estate or how much money you can gather for the purchase. The question is quite simple: WHY are you buying an investment home?

The answer to this question will guide you towards the right kind of property and the right type of financing. Let’s look at some examples to get a better idea of reasons people use to start investing in homes.

Saving for College Tuition

This type of goal usually involves a term over a few years. Couples with young children will buy a home in an area that has shown signs of appreciating. A year or two before the child enters college the family will sell the home and use the profit to pay for tuition, books and other expenses.

In this particular scenario the couple is not concerned with making a large profit each month on the rent. They simply want to break even while keeping the home in tip-top shape to maximize the potential appreciation.

Using Cash Flow to Increase Monthly Income

Some individuals invest in rental homes because they want to earn a profit each month from the rent. In these cases it is extremely important to buy a home either for all cash or at a deep discount from the market price. Foreclosures and vacant homes are common for this example. Buying the home for cash or at a deep discount allows the landlord to charge a fair rent based on the current market conditions and pocket most of the money each month as profit.

Speculation about Future Values

Sometimes people simply buy a property at a slightly discounted price in hopes that the property value will escalate quickly due to a future event. For instance, a new shopping mall, new school or a new factory can greatly improve the value of homes in the immediate area. Buying a home in such a location and holding on to it for a few months to a year can yield a high profit.

Career Change

Some people want to begin their property investment as a means to escape their current full time job and start a new career. It is possible for people to invest in real estate as their main source of income. However, it is not a get rich quick scheme.

The most successful investors have clear goals and follow a proven formula. They buy homes in particular areas that exhibit desirable qualities. They only buy when the price is discounted heavily and they have favorable financing for the transaction. They also understand the rental rates for the area in comparison to the financing costs.

Buying a rental home can be lucrative and lead to good fortune. However, it must be approached with diligence and hard work, not pie-in-the-sky dreams.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

Rock Realty Client Testimonials

"Mike & Matt,

Thank you so much for helping us find our dream home! We love it! Thank you for the many hours spent in research, travel, phone calls, and emails. Thank you for being open & honest with us every step of the way! We felt we could trust you 100%. We really enjoyed working with you and highly recommend you to others.

Thanks!"

Kevin & Abby G. (Madison, WI)
Rock Realty Home Buyer Client

Thanks for the compliments, and Congratulations on your new home Kevin & Abby!

Looking to purchase a home in Wisconsin?? Contact Rock Realty! We would love to help!!

It seems that we've weathered the storm of the foreclosure craze and have experienced a massive pendulum shift in which home seller's can pretty much dictate what they want for a change. Multiple offer and calls for highest and best on NORMAL market sales have become the norm for some markets. All of this is absolutely outstanding.....if you're looking to sell your home.

HOWEVER......

If you're a buyer trying to purchase a home and keep being disappointed by losing out to some cash buyer whose offering $10,000 over the listed price, then it becomes a different story......

I've noticed an increasing trend of potential buyers who are now making attempts to decrease their expenses related to purchasing a home (outside of the actual purchase price), so that they're able to pay more of their own closing costs or an increased down payment amount.....just about ANYTHING to be able to reach the coveted position of the absolute highest and best offer that the Seller's receive.

There's one particular question that I'm continuously being asked over and over again......"Do we really need to have a home inspection???"

WHADDAYA MEAN?????

Nothing...and I do mean NOTHING should replace the expense of a home inspector! Not even having Cousin Joe, who has a job pouring driveways for new construction, take a gander at the largest investment that you're about to undertake to "check it out"!!! A home inspection is absolutely VITAL to purchasing a home! Even if you're purchasing a distressed property that's being sold "as is, where is"....it is your absolute duty to ensure that you're fully aware of what's going on with the property that you're about to purchase.

Trust me....it makes a difference when a large defect is found, after the sale, and you're informed that your homeowner's insurance will not cover the cost to repair. It's the very best deal that you'll ever receive for a few hundred dollars!

hello i have 2 lien holders the first lien holder refuses to review the file until the 2nd lien holders approves the short sale.  has anyone ever run into this? 1st is Nation Star the 2nd is Citizens bank.  1st is only allowing 3k to the second and the second refuses to take anything less than 6k.  Each want to see an approval letter from the other.  Any advice, TIA