The Lazy Investor
Here's a message I got from a reader:
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
I have been "stuck" with high mortgage payments on the house
I purchased in June 2004 and I coudn't sell it for 6 months.
Now, I can't even afford to have it listed and pay 4-6%
commision without paying from my pocket. The house is vacant
and I must sell it a.s.a.p.! Would you know anybody
interested in buying a nice & clean 4bd/2.5ba/2car 1700sf
home in gated community SW Las Vegas, Spring Mtn/Buffalo
area, with all new appliances? I would appreciate your
suggestions or advice.
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
My reply;
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
Appraised value?
Asking?
What you owe?
'Bottom dollar' (price and/or terms)?
Without this, no investor will look at it.
Smart investors will not pay top dollar for a property in a
soft market - unless excellent terms are offered.
To find a retail buyer that will pay top dollar for a
property, Realtors(r) and ads in the paper work best.
My favorite way to get rid of any property is via
Lease Purchase/Option - gets higher rental rates,
better tenants and some up-front cash.
FYI, there's a lot of this 'Gotta Sell' stuff going around
right now.
Unfortunately, many didn't hear my report in May, 2004, when
I explained that the market was changing - fast. Hundreds of
'investors' (I say 'speculators') went into Las Vegas and overpaid
for property, to ‘make a fast buck’.
Many speculators in this ‘gold rush' of early 2004 went because
they heard many people were flipping houses for big profits.
Even with many market indicators pointing to a fast
downfall, without reliable counsel they continued to
buy - at full price and above!
They forgot to monitor their surroundings and got
caught up in the emotion of buying – at any cost.
Now, they are stuck with high payments they don't know how
to handle.
Options if you did overpay in a market going soft?
Ride it out as best you can (rent it to minimize
negative cash flows or Lease Option it to 'break even')
or sell it at a loss now.
There is no 'secret' to getting out of a bad deal, now or
ever.
The time to ask the question 'How do I get out of this?' is
BEFORE you buy it.
Tips for staying out of these kinds of situations can be
found in my MEMBER's ONLY Real Estate training course, available
at www.TheLazyInvestor.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
Steve Majors - The Lazy Investor
Active Real Estate Investor, author of ebooks, training courses and
seminars, provides one-on-one mentoring and coaching.
Articles, news and more at www.TheLazyInvestor.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
Saturday, December 18, 2004
Sunday, December 12, 2004
When 'overnight' = 30-60 days...
The Lazy Investor
The Mortgage market has changed - again... At least, around buying properties in Las Vegas. This information is useful for anyone that experiences a rapid influx of property buying, as is happening in several areas of the country.
This issue has hit Nevada first, but will likely bloom into the entire country soon.
Getting a loan today for a property in the Vegas Valley is tough, and certainly if it is an investor loan.
This is due to a variety of reasons, but the effect is that new mortgages are taking anywhere from 45-60 days most of the time, and occasionally 30-45 days - if you are 'lucky'.
The result of that causes a difficult situation for Real Estate investors (and has an effect on homebuyers, too).
Investors trying to make a deal with a Seller often must include 'fast close' as one of the terms in the agreement. The Seller will accept the lower offer the Investor must make in exchange for moving quickly. It has been the 'rule' forever...
In today's market, though, the Investor cannot move quickly if (s)he is trying to put a new loan on the property - certainly not when the Investor is looking for a 90%-100% loan.
If the Investor puts a substantial amount of CA$H of their own into the property, there are some considerations and the mortgage companies tend to move more quickly.
Therefore, the 'secret' to moving into properties in such a market is to have a substantial down payment.
But, how do you get a substantial down payment?
That's the rule of investing! You must build that capital from other deals!
Oh, I know - you wanted to get RICH in Real Estate overnight, right? Well, you see, that happens very rarely - it was possible when the 'wave' is first forming, as it is rolling in you can ride it for a short while.
The smart investor remembers to take the CA$H from all these 'easy' deals and put it aside, back into the business - not living off it!
That way, when the market changes (as it will, I assure you...), the investor is ready for the next 'wave'.
The simplest way to keep this money separate? Create a separate business entity where you keep all the big cash in a separate bank account. Of course, this is better for bookkeeping and income tax planning, too.
By keeping your wealth building separate from your living expenses, you can create massive wealth very quickly.
An "INSIDER TIP" - Don't be too quick to become a 'full time' investor! By keeping your current job for a year or two while you are building your business, you maintain your excellent credit rating as an employee while building credit references for being in business for two years or more.
It is the way the 'system' of credit works - live within their guidelines and you'll get your loans done more quickly. This is NOT one of the places you can do a lot of 'creative' things! Sometimes, we have to play by their rules - and when it comes to those that have the money, it is always the 'Golden Rule' - those that have the money MAKE the rules!
Happy Investing,
Steve
The Mortgage market has changed - again... At least, around buying properties in Las Vegas. This information is useful for anyone that experiences a rapid influx of property buying, as is happening in several areas of the country.
This issue has hit Nevada first, but will likely bloom into the entire country soon.
Getting a loan today for a property in the Vegas Valley is tough, and certainly if it is an investor loan.
This is due to a variety of reasons, but the effect is that new mortgages are taking anywhere from 45-60 days most of the time, and occasionally 30-45 days - if you are 'lucky'.
The result of that causes a difficult situation for Real Estate investors (and has an effect on homebuyers, too).
Investors trying to make a deal with a Seller often must include 'fast close' as one of the terms in the agreement. The Seller will accept the lower offer the Investor must make in exchange for moving quickly. It has been the 'rule' forever...
In today's market, though, the Investor cannot move quickly if (s)he is trying to put a new loan on the property - certainly not when the Investor is looking for a 90%-100% loan.
If the Investor puts a substantial amount of CA$H of their own into the property, there are some considerations and the mortgage companies tend to move more quickly.
Therefore, the 'secret' to moving into properties in such a market is to have a substantial down payment.
But, how do you get a substantial down payment?
That's the rule of investing! You must build that capital from other deals!
Oh, I know - you wanted to get RICH in Real Estate overnight, right? Well, you see, that happens very rarely - it was possible when the 'wave' is first forming, as it is rolling in you can ride it for a short while.
The smart investor remembers to take the CA$H from all these 'easy' deals and put it aside, back into the business - not living off it!
That way, when the market changes (as it will, I assure you...), the investor is ready for the next 'wave'.
The simplest way to keep this money separate? Create a separate business entity where you keep all the big cash in a separate bank account. Of course, this is better for bookkeeping and income tax planning, too.
By keeping your wealth building separate from your living expenses, you can create massive wealth very quickly.
An "INSIDER TIP" - Don't be too quick to become a 'full time' investor! By keeping your current job for a year or two while you are building your business, you maintain your excellent credit rating as an employee while building credit references for being in business for two years or more.
It is the way the 'system' of credit works - live within their guidelines and you'll get your loans done more quickly. This is NOT one of the places you can do a lot of 'creative' things! Sometimes, we have to play by their rules - and when it comes to those that have the money, it is always the 'Golden Rule' - those that have the money MAKE the rules!
Happy Investing,
Steve
Friday, November 26, 2004
Webinars - a great tool for every Real Estate Investor, Agent and Realtor!
The Lazy Investor
Last week, I held my first ever 'webinar' - and I'm HOOKED! Two weeks ago, I had barely heard of this word, but I gotta tell you, it is the greatest thing going...
I mean, where else can you have;
- dozens of people listening to you, talking live, back and forth, from anywhere in the world
- all viewing the same webpage at the same moment
- all with absolutely NO TELEPHONE CHARGES!
Yes, there are teleconferences, and you can tell everyone to 'go to my webpage at such and such, but then you have to spell it a dozen times and still, some people don't get it.
With a webinar, YOU control the pages viewed, so you can make sure you are all looking at the same thing - every time.
Now, while it is the "cat's meow" for me, teaching regular sessions and such, why did I say that it is for EVERY Real Estate Investor, Agent and Realtor(r)?
Well, how about this - You want to show off your properties, right? And you want the person you are showing to see them as quickly as possible, without you having to go to the property, right?
The web lets you do that, of course. But, what if the person has a question? What if they don't like that property and want to see something different?
Traditional methods only put them back to a search page - a lonely place for someone that isn't used to poking around your site. This is a person looking to buy, not spend time searching.
But with the 'webinar' technology I'm using, you can have a button on your main page and every other page to let the BUYER contact you RIGHT NOW, LIVE. You can speak with them, answer any questions, and even show them other properties - all without leaving your desk!
And, if you aren't available at the moment, they can contact you for an appointment so you can show them all the properties, then set the time to meet them at the property for final viewing and signing the contracts!
It is a 'perfect' addition to the LAZY method!
Another great thing about having this service is that you can keep in touch with friends and family in far-off places - all without long distance charges!
The cost for this service depends on how many people you will have in your 'room' (the term for the meeting place of your webinar), but it certainly rivals the cost of a telephone line and those pricey teleconferences.
And, the service I'm using costs MUCH less than anything else out there that I know of - like hundreds of dollars per month less!
Plus it gives you features you will never get from teleconferences. The benefit of everyone 'being on the same page' sold me right away. Then, I used it for a live event...
Just once, and I'm convinced that teleconferences are headed for dinosaur status...
Check it out for yourself - I think you'll be convinced, too.
Go to www.TTCGlobaltalk.com and talk with Tim (he's one of the owners). You can usually find him hanging out at the Public Demo Room (there's a link on the main page to get there).
Be sure to tell him that I sent you!
Happy Investing,
Steve
Last week, I held my first ever 'webinar' - and I'm HOOKED! Two weeks ago, I had barely heard of this word, but I gotta tell you, it is the greatest thing going...
I mean, where else can you have;
- dozens of people listening to you, talking live, back and forth, from anywhere in the world
- all viewing the same webpage at the same moment
- all with absolutely NO TELEPHONE CHARGES!
Yes, there are teleconferences, and you can tell everyone to 'go to my webpage at such and such, but then you have to spell it a dozen times and still, some people don't get it.
With a webinar, YOU control the pages viewed, so you can make sure you are all looking at the same thing - every time.
Now, while it is the "cat's meow" for me, teaching regular sessions and such, why did I say that it is for EVERY Real Estate Investor, Agent and Realtor(r)?
Well, how about this - You want to show off your properties, right? And you want the person you are showing to see them as quickly as possible, without you having to go to the property, right?
The web lets you do that, of course. But, what if the person has a question? What if they don't like that property and want to see something different?
Traditional methods only put them back to a search page - a lonely place for someone that isn't used to poking around your site. This is a person looking to buy, not spend time searching.
But with the 'webinar' technology I'm using, you can have a button on your main page and every other page to let the BUYER contact you RIGHT NOW, LIVE. You can speak with them, answer any questions, and even show them other properties - all without leaving your desk!
And, if you aren't available at the moment, they can contact you for an appointment so you can show them all the properties, then set the time to meet them at the property for final viewing and signing the contracts!
It is a 'perfect' addition to the LAZY method!
Another great thing about having this service is that you can keep in touch with friends and family in far-off places - all without long distance charges!
The cost for this service depends on how many people you will have in your 'room' (the term for the meeting place of your webinar), but it certainly rivals the cost of a telephone line and those pricey teleconferences.
And, the service I'm using costs MUCH less than anything else out there that I know of - like hundreds of dollars per month less!
Plus it gives you features you will never get from teleconferences. The benefit of everyone 'being on the same page' sold me right away. Then, I used it for a live event...
Just once, and I'm convinced that teleconferences are headed for dinosaur status...
Check it out for yourself - I think you'll be convinced, too.
Go to www.TTCGlobaltalk.com and talk with Tim (he's one of the owners). You can usually find him hanging out at the Public Demo Room (there's a link on the main page to get there).
Be sure to tell him that I sent you!
Happy Investing,
Steve
Wednesday, November 10, 2004
Doing what you say you are going to do...
Don't you just hate it when people don't do what they say they are going to do?
I mean, what use is it to someone that tells you they will be somewhere - and then, they don't show up?
It wastes time for you (making you angry in the process) and also is a waste for them- the one that didn't show up - actually, in two ways. One, they have just wasted their breath (yeah, not much of an inconvenience), but the other, they have wasted their time in creating a friend with you, as a few times of this and you can't/won't take any more of it.
To me, it is simple - do what you say you are going to do. If you can't do it, don't promise it.
If you find that you have been late and/or not shown up for something more than once, you need to reevaluate your own time management morals.
Of course, not being precicely on time for everything happens to everyone, on occassion, but the thing is - if you are never on time, you are "overpromising and (certainly) underdelivering".
Strive to be on time. In my opinion, being 15 minutes late for something is almost inexcusible. I mean, your car had better have blown up or something. And, you should have at least called to tell the other person you have had some catastrophic issue - it is only common courtesy.
Do what you say you are going to do - not just in being on time, but doing deals that you promise. Other people are relying on you being truthful to them. If you say you are going to call them back, CALL THEM BACK! If you say you are going to make the deal work - MAKE IT SO!
Don't lead people on, just tell them the truth - what you can/cannot do, and move on.
Overall, you will have many more people happy with you because you were truthful than you will ever have happy about your 'stories'.
And, your business will reap the rewards, too. Doing what you say is a rare quality that, when found, you want to stick around that person as much as you can - but, be sure you respect their position and do what you say you will with them, too!
Happy Investing,
Steve
I mean, what use is it to someone that tells you they will be somewhere - and then, they don't show up?
It wastes time for you (making you angry in the process) and also is a waste for them- the one that didn't show up - actually, in two ways. One, they have just wasted their breath (yeah, not much of an inconvenience), but the other, they have wasted their time in creating a friend with you, as a few times of this and you can't/won't take any more of it.
To me, it is simple - do what you say you are going to do. If you can't do it, don't promise it.
If you find that you have been late and/or not shown up for something more than once, you need to reevaluate your own time management morals.
Of course, not being precicely on time for everything happens to everyone, on occassion, but the thing is - if you are never on time, you are "overpromising and (certainly) underdelivering".
Strive to be on time. In my opinion, being 15 minutes late for something is almost inexcusible. I mean, your car had better have blown up or something. And, you should have at least called to tell the other person you have had some catastrophic issue - it is only common courtesy.
Do what you say you are going to do - not just in being on time, but doing deals that you promise. Other people are relying on you being truthful to them. If you say you are going to call them back, CALL THEM BACK! If you say you are going to make the deal work - MAKE IT SO!
Don't lead people on, just tell them the truth - what you can/cannot do, and move on.
Overall, you will have many more people happy with you because you were truthful than you will ever have happy about your 'stories'.
And, your business will reap the rewards, too. Doing what you say is a rare quality that, when found, you want to stick around that person as much as you can - but, be sure you respect their position and do what you say you will with them, too!
Happy Investing,
Steve
Thursday, November 04, 2004
Getting things done - NOW
The Lazy Investor
Several days ago, I told you about Appraisers and such.
Well, we have been struggling with our appraiser - not getting the thing done, making what we felt are excuses, not actions and generally winding up almost losing three deals (worth almost $200,000 in my pocket) over it.
Not what I call a 'happy' time!
Well, yesterday, we had enough. I turned my wife loose on the appraiser! If you know Irena, you may be surprised at that statement. She is one of the sweetest, kindest, most patient people you could want to meet. But, when she gets going, watch it!
I've only seen her like that twice in the almost 12 years we've been together and let me tell you, I learned a lesson the first time that I didn't want it to be pointed at me again! ;)
Well, she let loose on the appraiser, got his bosses phone number and started letting loose on him. I was on the phone to the Real Estate Commission - first to the local chapter, then I found the state level person to call.
Presenting my case in detail - how we have been told for weeks now that the appraisal was 'an hour away', often times told 'it was already sent' and issues of 'computer problems', 'health problems' and a variety of this, that and something else (once, it was a 'car accident' that was keeping us away from closing), the Commissioner was concerned about how this was being handled, too.
Now, don't get me wrong - some things do come up, like health and car accidents, and cannot be avoided. But, dozens of them, all in a row, happening to the same fellow that was doing our appraisal? Seemed just too much.
Well, the Commissioner told me that she would check into it. My wife was done with the appraiser's boss (we knew the guy we were dealing with was an apprentice and that the real appraiser had to sign off on everything - another issue we were told was a problem - "The appraiser doesn't like my reports and we have to change a thing or two - the appraisal will be finished in an hour..." - how many times can we listen to that one??) The appraiser told Irena that he would have the report out by the end of the day. At one point, I spoke with him and he told me the same thing.
To shorten the story a bit, we had called around 3:15 in the afternoon. From the previous experiences, we felt that we would have the appraisal early this morning.
But, the happy part of the story is that we did, in fact, get it before 5 yesterday!
Amazing what people can do when they get motivated, isn't it?
It is a shame we had to go to that level - reporting them to the commission and such, but sometimes you have to do what you have to do. Our backs were against the wall as well - heck, I'm not loosing a couple hundred grand over incompetence!
So, what's it going to take for YOU to get motivated? To get up off your back side and make it happen in your life?
If it is time for you, and you want to talk about your steps, consider me 'the commissioner'.... We can put a plan of action in place and hold you accountable to make sure it is getting done.
It works - and is certainly one of the most successful ways to make things happen NOW.
Happy Investing,
Steve Majors - The Lazy Investor
Several days ago, I told you about Appraisers and such.
Well, we have been struggling with our appraiser - not getting the thing done, making what we felt are excuses, not actions and generally winding up almost losing three deals (worth almost $200,000 in my pocket) over it.
Not what I call a 'happy' time!
Well, yesterday, we had enough. I turned my wife loose on the appraiser! If you know Irena, you may be surprised at that statement. She is one of the sweetest, kindest, most patient people you could want to meet. But, when she gets going, watch it!
I've only seen her like that twice in the almost 12 years we've been together and let me tell you, I learned a lesson the first time that I didn't want it to be pointed at me again! ;)
Well, she let loose on the appraiser, got his bosses phone number and started letting loose on him. I was on the phone to the Real Estate Commission - first to the local chapter, then I found the state level person to call.
Presenting my case in detail - how we have been told for weeks now that the appraisal was 'an hour away', often times told 'it was already sent' and issues of 'computer problems', 'health problems' and a variety of this, that and something else (once, it was a 'car accident' that was keeping us away from closing), the Commissioner was concerned about how this was being handled, too.
Now, don't get me wrong - some things do come up, like health and car accidents, and cannot be avoided. But, dozens of them, all in a row, happening to the same fellow that was doing our appraisal? Seemed just too much.
Well, the Commissioner told me that she would check into it. My wife was done with the appraiser's boss (we knew the guy we were dealing with was an apprentice and that the real appraiser had to sign off on everything - another issue we were told was a problem - "The appraiser doesn't like my reports and we have to change a thing or two - the appraisal will be finished in an hour..." - how many times can we listen to that one??) The appraiser told Irena that he would have the report out by the end of the day. At one point, I spoke with him and he told me the same thing.
To shorten the story a bit, we had called around 3:15 in the afternoon. From the previous experiences, we felt that we would have the appraisal early this morning.
But, the happy part of the story is that we did, in fact, get it before 5 yesterday!
Amazing what people can do when they get motivated, isn't it?
It is a shame we had to go to that level - reporting them to the commission and such, but sometimes you have to do what you have to do. Our backs were against the wall as well - heck, I'm not loosing a couple hundred grand over incompetence!
So, what's it going to take for YOU to get motivated? To get up off your back side and make it happen in your life?
If it is time for you, and you want to talk about your steps, consider me 'the commissioner'.... We can put a plan of action in place and hold you accountable to make sure it is getting done.
It works - and is certainly one of the most successful ways to make things happen NOW.
Happy Investing,
Steve Majors - The Lazy Investor
Tuesday, October 26, 2004
Another exciting update...
The Lazy Investor
WOW! I just got off the phone with my CPA and we have come up with something that is totally blowing my mind!
This is one of those DUH! moments in life where you just can't believe what is happening - one where it seems that everything about it must be wrong, illegal or at least fattening!
I mean, how is it possible to actually have a method of picking up a check for just over $200,000 - and not pay tax on it - EVER!?!?!?
That's what we just came up with - and, it looks like we are going to have several properties coming our way that fit into the same category - a true 'niche market'!
I'm excited (I'm sure you can't tell....) - this could be really HUGE!
Of course, I need a bit of time to go through it, but it looks legal, moral, and most of all - PROFITABLE!
More on this as it develops!
WOW! I just got off the phone with my CPA and we have come up with something that is totally blowing my mind!
This is one of those DUH! moments in life where you just can't believe what is happening - one where it seems that everything about it must be wrong, illegal or at least fattening!
I mean, how is it possible to actually have a method of picking up a check for just over $200,000 - and not pay tax on it - EVER!?!?!?
That's what we just came up with - and, it looks like we are going to have several properties coming our way that fit into the same category - a true 'niche market'!
I'm excited (I'm sure you can't tell....) - this could be really HUGE!
Of course, I need a bit of time to go through it, but it looks legal, moral, and most of all - PROFITABLE!
More on this as it develops!
Saturday, October 16, 2004
The Lazy Investor - an update
The Lazy Investor
Still no calls from the constable's office..... Guess I should ask for my $45 back???
Well, at least the tenants are gone. They even left the property in 'broom clean' condition. After what we saw a couple days before - I thought for sure it would take a week to clean it, but they got it done quickly.
Of course, the place still needs a good cleaning. It looks like they didn't ever wash dishes or clean the bathroom sinks (we have pictures, but I don't think you want to see them!).
The appraiser did come though and gave me a 'thumbs up' on getting the price I wanted. So, that is something good.
I put up a sign on the garage and in the front window, and have already had a couple interested calls. Also put an ad in the paper - have yet to see anything from that.
Ok, more on deals and things later. Have a good weekend!
Still no calls from the constable's office..... Guess I should ask for my $45 back???
Well, at least the tenants are gone. They even left the property in 'broom clean' condition. After what we saw a couple days before - I thought for sure it would take a week to clean it, but they got it done quickly.
Of course, the place still needs a good cleaning. It looks like they didn't ever wash dishes or clean the bathroom sinks (we have pictures, but I don't think you want to see them!).
The appraiser did come though and gave me a 'thumbs up' on getting the price I wanted. So, that is something good.
I put up a sign on the garage and in the front window, and have already had a couple interested calls. Also put an ad in the paper - have yet to see anything from that.
Ok, more on deals and things later. Have a good weekend!
Tuesday, October 12, 2004
Appraisals and appraisers....
The Lazy Investor
Appraisers are funny people.
We can't live without them, but who can understand them?
Property values are based on comparable sales, right?
Comparable sales (comps) come from the MLS, right?
Well, then, just why is it that we need appraisers?
We need them because they bring us a 'neutral third party' - someone that is not involved in the transaction. Since the MLS is a Realtor(r) thing, it is possible that if we relied solely on the agent, they might want to 'skew' the results to a slightly higher mark - resulting in their higher commission.
If the seller would have a representative looking into the MLS for the comps, they, too, would most likely take the highest prices - to get the highest price.
Just as likely is the fact that, if the buyer's side of the transaction would be the one to give the final evaluation, the price would be on the lowest sales in the area.
Appraisers are there to give us a 'non-biased' opinion - something based on facts and figures only, and are suppossed to be totally neutral.
What seems to be the practice of 'neutrality', though, often gets swayed back to the side of 'who paid for the appraisal'... If the seller paid for it, the appraiser is inclined to work hard to 'bring in' the property value where the seller wants it. If the buyer pays for it, the same thing is true - bring it in no higher than the offer is made.
I guess there is really no '100% fair' way to get an appraisal. After all, we are all human. Even if it were a state-run thing, where some state agency would send the appraiser out to do the job, there would still be some influence from the person that let them in the house. Maybe we should let the state agency open the place for us, too? Heck, why don't we just have the state take care of everything for us - including sending us food, money and clothing? Maybe they would even send someone out to wipe our noses for us too?
I think I'd rather take my chances with an Appraiser!
Happy Investing!
Appraisers are funny people.
We can't live without them, but who can understand them?
Property values are based on comparable sales, right?
Comparable sales (comps) come from the MLS, right?
Well, then, just why is it that we need appraisers?
We need them because they bring us a 'neutral third party' - someone that is not involved in the transaction. Since the MLS is a Realtor(r) thing, it is possible that if we relied solely on the agent, they might want to 'skew' the results to a slightly higher mark - resulting in their higher commission.
If the seller would have a representative looking into the MLS for the comps, they, too, would most likely take the highest prices - to get the highest price.
Just as likely is the fact that, if the buyer's side of the transaction would be the one to give the final evaluation, the price would be on the lowest sales in the area.
Appraisers are there to give us a 'non-biased' opinion - something based on facts and figures only, and are suppossed to be totally neutral.
What seems to be the practice of 'neutrality', though, often gets swayed back to the side of 'who paid for the appraisal'... If the seller paid for it, the appraiser is inclined to work hard to 'bring in' the property value where the seller wants it. If the buyer pays for it, the same thing is true - bring it in no higher than the offer is made.
I guess there is really no '100% fair' way to get an appraisal. After all, we are all human. Even if it were a state-run thing, where some state agency would send the appraiser out to do the job, there would still be some influence from the person that let them in the house. Maybe we should let the state agency open the place for us, too? Heck, why don't we just have the state take care of everything for us - including sending us food, money and clothing? Maybe they would even send someone out to wipe our noses for us too?
I think I'd rather take my chances with an Appraiser!
Happy Investing!
Just got a call from the 'dead-beat' renter
The Lazy Investor
Well, strangely enough, I haven't had a call from the constable's office to make the lock-out happen, but I did get a call from the renter - telling me they are out and ready for me to pick up the keys.
So, I guess it is off to meet with them - in the morning... to get my keys back.
I tried to get them today - told her that I would come get them right now - but, she is crafty - wouldn't tell me where she is right now and only wants to meet at the property.
This is a clue for you - renters are often smarter than you! They spend tons of time finding out how to 'get around' paying you, putting you off until the last minute, etc. and will delay everything you need to do (like getting someone else in the property) for as long as they can.
I'm sure she knows that I can't really do anything until the constable does the lockout - heck, she has probably been through this before...
Make sure you are keeping everything legal, and understand that Real Estate doesn't move really quickly - although, when you have a payment facing you in a short time, you want it to!
Also, be sure you are prepared for events just like this one - make sure you have at least a buffer in your bank account for a renter to tie you up for awhile - even a full month (and maybe more...)
I had to make 2 full payments on my first eviction, and will likely have 2 or more on this one (and with the market like it is today, it may be several!)
That's all part of Real Estate investing, though...
Make sure you are covered in all your investments.
I'll be in touch soon!
Happy Investing.
Well, strangely enough, I haven't had a call from the constable's office to make the lock-out happen, but I did get a call from the renter - telling me they are out and ready for me to pick up the keys.
So, I guess it is off to meet with them - in the morning... to get my keys back.
I tried to get them today - told her that I would come get them right now - but, she is crafty - wouldn't tell me where she is right now and only wants to meet at the property.
This is a clue for you - renters are often smarter than you! They spend tons of time finding out how to 'get around' paying you, putting you off until the last minute, etc. and will delay everything you need to do (like getting someone else in the property) for as long as they can.
I'm sure she knows that I can't really do anything until the constable does the lockout - heck, she has probably been through this before...
Make sure you are keeping everything legal, and understand that Real Estate doesn't move really quickly - although, when you have a payment facing you in a short time, you want it to!
Also, be sure you are prepared for events just like this one - make sure you have at least a buffer in your bank account for a renter to tie you up for awhile - even a full month (and maybe more...)
I had to make 2 full payments on my first eviction, and will likely have 2 or more on this one (and with the market like it is today, it may be several!)
That's all part of Real Estate investing, though...
Make sure you are covered in all your investments.
I'll be in touch soon!
Happy Investing.
Evicting a dead-beat renter...
The Lazy Investor
I really hate evictions.
They are work for me, and unpleasant for everyone involved.
But, sometimes, you have to do them...
This time, it is from an unhappy Lease Purchase Tenant Buyer that didn't follow through with their promises (and what I clearly explained to them to do - which is to clear their credit up).
The sad part is that they have been in the house for over a year and have paid their rent on time every month. They've been quietly living there, with no issues at all.
In fact, until yesterday, I had never even seen the house! Yes, I bought it and put the folks in there the LAZY way! And, there hasn't been any reason to go there - until now...
They didn't pay their rent this month and only called me last week to tell me they were moving out. I did ask them for a follow-up letter and they did send it to me, so there is no issue with that!
Now, though, they are still in the house - after telling me they would be out last Friday. So, I had to go to the court and file another complaint (and pay another $42) and this morning I should get a call from the court to proceed with the eviction. I'm no expert on this part - yet. I did it once before, but with a process service. This time, I couldn't find them (out of business, I guess). I did find another service that helped with the first step, but I need to learn this myself, too. Of course, the next time I need an eviction done, I'm calling a service again!
So, these folks are almost moved out. I got a call that the house was left open yesterday, so I went to go secure it.
WHAT A PIG STYE! The place was a total mess - dog hair everywhere, filth like I've never seen! INCHES of dirt all over the place! Clothes piled up here/there and a few pieces of junk furniture scattered in a couple rooms. Sure looks like they left!
We thought they intentionally left it like that - a 'get back' at us or something...
But, then, we saw stuff in the garage. Looked like stuff they might want - tools and such...
And, while we were securing the place, they came back to get more of the junk! So, we know it wasn't an intentional dirtying of the place - that's how they were living!
WOW! Hey, if you don't believe me, come to the next Boot Camp - I'm going to show the video of this place - you won't believe it!
So, that's the 'news that's fit to print' for now.
A bit later, I expect a call from the constable's office and I'll fill you in on that as it comes along....
Happy Investing!
I really hate evictions.
They are work for me, and unpleasant for everyone involved.
But, sometimes, you have to do them...
This time, it is from an unhappy Lease Purchase Tenant Buyer that didn't follow through with their promises (and what I clearly explained to them to do - which is to clear their credit up).
The sad part is that they have been in the house for over a year and have paid their rent on time every month. They've been quietly living there, with no issues at all.
In fact, until yesterday, I had never even seen the house! Yes, I bought it and put the folks in there the LAZY way! And, there hasn't been any reason to go there - until now...
They didn't pay their rent this month and only called me last week to tell me they were moving out. I did ask them for a follow-up letter and they did send it to me, so there is no issue with that!
Now, though, they are still in the house - after telling me they would be out last Friday. So, I had to go to the court and file another complaint (and pay another $42) and this morning I should get a call from the court to proceed with the eviction. I'm no expert on this part - yet. I did it once before, but with a process service. This time, I couldn't find them (out of business, I guess). I did find another service that helped with the first step, but I need to learn this myself, too. Of course, the next time I need an eviction done, I'm calling a service again!
So, these folks are almost moved out. I got a call that the house was left open yesterday, so I went to go secure it.
WHAT A PIG STYE! The place was a total mess - dog hair everywhere, filth like I've never seen! INCHES of dirt all over the place! Clothes piled up here/there and a few pieces of junk furniture scattered in a couple rooms. Sure looks like they left!
We thought they intentionally left it like that - a 'get back' at us or something...
But, then, we saw stuff in the garage. Looked like stuff they might want - tools and such...
And, while we were securing the place, they came back to get more of the junk! So, we know it wasn't an intentional dirtying of the place - that's how they were living!
WOW! Hey, if you don't believe me, come to the next Boot Camp - I'm going to show the video of this place - you won't believe it!
So, that's the 'news that's fit to print' for now.
A bit later, I expect a call from the constable's office and I'll fill you in on that as it comes along....
Happy Investing!
Today's thoughts
The Lazy InvestorWell, today has already been a good day - and it isn't even 9:30 yet!
We have figured out how to make the Blogger thing work and publish it on the web - pretty cool stuff!
We have figured out how to make the Blogger thing work and publish it on the web - pretty cool stuff!
Saturday, October 09, 2004
Subscribe to:
Posts (Atom)
