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Just Sold! 1303 E Koshkonong Dr, Milton Wisconsin 53534

We are happy to announce a recent home closing in Milton, Wisconsin. Although, this bank owned home may be a tear down, the lot and location really were ideal. Being just steps away from Lake Koshkonong made this REO property a super buy, listed at just $34,650. Congratulations to our Rock Realty buyer, Keith! We can't wait to see what you do with this great lake lot in Milton!

If you are thinking of selling or buying a home in Wisconsin, our home buyer specialists would be happy to assist you. Give Rock Realty a call at 877-774-7625. We are a full service real estate brokerage.

 Madison, WI Homes for Sale

OTHER ARTICLES

• Getting Pre-Approved for a Mortgage Before Looking for a Home
• First Time Buyers: How To Wade Through Real Estate Lingo
• What’s Just as Important As Location When Choosing a Home?
• 10 Things that are Good to Know Before Buying a Home
• Tips for your first Home Inspection
• Tips for Purchasing a Foreclosure
• Tips for Picking the Right Wisconsin Home

Just Sold! 1817 Anhalt Dr, Madison Wisconsin 53704

We are happy to announce a sale for another Madison Wisconsin Rock Realty home seller!

This home was the perfect little tri-level on Madison's East Side. The buyers got a great price on this bank accepted short sale. Congratulations to the buyers and our sellers on this successful Madison short sale transaction!

If you are thinking of selling or buying a home in Wisconsin, our home buyer specialists would be happy to assist you. Give Rock Realty a call at 877-774-7625. We are a full service real estate brokerage.

OTHER ARTICLES

• Getting Pre-Approved for a Mortgage Before Looking for a Home
• First Time Buyers: How To Wade Through Real Estate Lingo
• What’s Just as Important As Location When Choosing a Home?
• 10 Things that are Good to Know Before Buying a Home
• Tips for your first Home Inspection
• Tips for Purchasing a Foreclosure
• Tips for Picking the Right Wisconsin Home

Thinking of Short Sale Flipping?….Think Again.

In an Article in the Los Angeles Times Business paper, written by E. Scott Reckard published on-line 10/16/2013 @ 6:15am cst, he reports that a former Bank of America Corp. employee Kevin Lauricella was arrested on federal charges for accepting bribes in the amount of $1 million to allow homes to be sold far below their market value.

Based on the report, it appears that Kevin is indicted on 18 properties where he allegedly allowed them to be sold far below the price the bank would have accepted. These alleged transactions took place in 2010 and early 2011. To get the sales through the BofA system, Kevin is accused of falsifying bank records.

The buyers who bought these ridiculously low priced homes would then turn around and sell them for market value or even refinance them at market value, pocketing the profits. To better understand the allegations, see an example of a possible scheme below, not related to the specific allegations of Kevin’s.

Homeowner owes ………………………………………………………………. $100,000.00

Based on Sold comparables, his home is worth……………………… $75,000.00

Which means homeowners is upside down…………………………....$25,000.00

Buyer / Investor makes a low ball offer of……………………………….$50,000.00

BofA completes an appraisal and the home is worth……………..$75,000.00

Now, here is where it get’s fishy. Instead of BofA countering the buyer’s $50,000.00 offer with a counter of $75,000.00, someone at the bank has to do something to allow the $50,000.00 offer to be approved, even though it’s $25,000 less than what the bank could get on the open market. So, to more the story along, the bank approves the fraudulent $50,000.00 offer and the buyer / investor closes the deal on Monday. They then turn around and close the 2^nd deal….that’s right, the deal they had in their back pocket from a buyer who was willing to pay $75,000.00 for the property on Tuesday morning, making $25,000.00 in profit in less than 24 hours.

Now, the really sad part of this, the opportunity for fraud is rampant. It doesn’t take a cooperative bank representative to pull this off. In fact, I have seen this strategy myself, in play, here in my local market with corrupt appraisers. I have even been pressured myself, by buyers / investors to tell them when the appraiser is scheduled to be at the property so they can meet with them and give them their comparable analysis. These buyer / investors make it sound so reasonable, they say things like, “well, we want to write up the offer” or “we want to negotiate our offer with the bank direct” or “we can meet with the appraiser so he can see our comps”, etc…  however, it’s fraud!

In fact, this is happening so rampantly in my own market place, I was contacted by such a buyer / investor’s Realtor back on Sat 9/21/2013 @ 10:06pm cst through my email. That’s right, these fraudulent buyer / investors are enlisting Realtors to now do the dirty work for them, offering them “double commissions” or higher splits, playing on the agents greed. Sadly, the agent that contacted me is working with a well known Principal Broker in a very well known firm however, the firm is one of those 100% firms and they offer very little to no mandatory training and chances are, after drilling this agent via email about his actions, he may actually believe what he is doing is “the American way” of buying low and selling high.

This topic always seems to get a lot of response and most of the time, I am demonized and vilified saying that I have no business being in Realestate or, I have no clue what I am talking about however, you don’t have to take my word for it. If you really believe what you are doing is above board, legal….and some investors package you bought for $999.99 gives you a indemnity clause or a release of liability statement that says you can do what you’re doing, then I have one thing to say to you. Take your package you bought, take your forms you use and call my friends over at the HUD’s office of the OIG and ask to speak with the Lisa Gore, Assistant Special Agent in Charge or Harvey Wayne Martin, Special Agent. I know they would love to talk with you and answer all your questions.

Last but not least, make necessary updates on your home’s security. Nothing beats a house that is not only well-kept but also fully secured. Homes with foolproof security system, often, acquire great interest.

HSBC Bank Policy Designed to Destroy Homeowners who want to Avoid Foreclosure.

I currently have a client who has two liens on his home. The first lien is with HSBC and it’s a conv. fixed rate 30 year mortgage. The second lien is with US Bank and it’s a Home Equity Line of Credit. In order to avoid foreclosure, my client originally approached both lenders and requested a Deed-in-Lieu however, the lenders advised him to complete a short sale. He finds me, we list the home for sale, and get an offer that pays off the first lien in full, as per the HSBC pay off letter and pays the second lien nearly 60% of what they are owed. This past weekend, we received notice that HSBC has decided to set a foreclosure sale date of 10/24/2013. We notified US Bank of the pending HSBC foreclosure and they have opened an Expedited / Assist request in order to escalate our offer through their system for a quick decision on the short sale. We have contacted HSBC to notify them of this development with US Bank and requested HSBC to postpone the foreclosure 45 days in order to give US Bank enough time to complete their process. As of right now, HSBC is refusing to postpone the foreclosure any length of time.

The baffling part of this issue is that it appears, by HSBCs actions, they would rather incur the cost of foreclosure, attorney fees, court cost, preservation cost, disposition cost and REO cost in general in order to purposely avoid the short sale and avoid getting a pay off in full. So, my question is, why would a bank do this? Do the bank’s executives know this is how their short sale / foreclosure / loss mitigation departments are being run? Do the bank’s executives know that they have policies in place that hurt themselves, hurt the homeowners, hurt the local communities, creates a situation where no one wins?

I suspect that if an Executive at HSBC saw my clients case, they would step in and fix this. I suspect that if an HSBC investor saw what was going on here, they would step in and do something. In fact, I suspect that if anyone at HSBC would stop, look at this situation, evaluate their policy and see how this doesn’t make any sense what so ever, they would step in and help us but, so far….no help at all.

In order to bring national attention to this issue, I am going to use my network to its fullest capability. I am going to list the names and dates of the people I spoke with at HSBC in hopes that someone…anyone who can do anything….even if it’s nothing more than some advice, will step in and help.

A list of HSBC employees who haven’t been able to help us or haven’t been willing to help us….

10/8/2013 @ 8:11 am cst called into 1-855-698-7627, Got a call from Mrs. Mantra who was calling me on behalf of Mrs. Danielle Paschale. I was transferred to Sandra Scott who transferred me to supervisor Dania. Call ended with no resolution other than I needed to talk with Foreclosure.

10/7/2013 @ 4:06pm cst I called HSBC 1-800-395-3489 and spoke with Sandy, who said I needed to talk with my Single Point of Contact Danielle Paschale. Danielle wasn’t available so I was transferred to Chris in Modifications. Chris said I needed to speak with Danielle Paschale or someone in HSBC’s customer relations department. Transferred me to customer service who gave me Danielle’s number and said I need to call her.

So, the end result, no one was able to give me an answer, no one took accountability for the file and in fact, I am back to where I started, with a call into Danielle Paschale who is likely going to have Mrs. Mantra call me to tell me she can’t help me so, who can? Better yet, who will?

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

Home sales and median prices both grew at a healthy pace in August, continuing the hot real estate market in Wisconsin. Existing home sales were up 13.7 percent in August compared to last August, closing out a very strong summer for home sales and 26 straight months of sales growth. Home prices showed similar strength with the median price rising 6.3 percent to $152,000 in August. Median prices have been up 17 of the last 18 months.

“This has been a very strong summer for home sales, which is important for a state like Wisconsin where there are strong seasonal sales patterns,” said Steve Lane, broker with First Weber Group REALTORS® in Stevens Point and the new Chairman of the WRA board of directors. "We started the year strong, and we’ve carried that momentum through the summer, which bodes well for the remainder of the year,” Lane said.

Existing home sales were up in every region of the state, with five of the six regions growing by 9.9 percent in August compared to August 2012. The area with the fastest growth over August 2012 was the Central region, which was up 23.2 percent. Also up by substantial margins were the South Central, increasing 18.4 percent, and the Southeast, growing 14.5 percent compared to August last year. The West was up 11.1 percent, and the Northeast grew 9.9 percent over the period. Finally, home sales in the North were up 5.6 percent compared to last year.

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 and fall has been really hot for the properties that are priced right!

I'd be happy to show you any homes currently listed for sale. Feel free to visit Janesville, WI Homes for Sale to search for current properties listed in the Janesville area or visit Madison, WI Homes for Sale for MLS Listings in the Madison area.

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. Click below:

What's My Wisconsin Home Worth?

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.

These home renovations tend to not pay back your investment.

Home investors have to walk a very thin line in their prospecting and repairing.  They want to find a home that others have ignored due to necessary repairs and updating.  However, they don’t want to waste money on improvements that simply look nice but fail to increase the home’s overall price.  Here are the top renovations that do not add much value to the home.

Grandiose Landscaping

Potential buyers will appreciate a well-kept lawn and may be somewhat attracted to a nice flower bed by the front door, but elaborate landscaping will not add to the home’s price.  Even worse, if the prospective buyer has no inclination to spend hours in the yard weeding, fertilizing and replanting then you may actually scare off a few buyers.  A simple lawn with low maintenance bushes are the best bet for most homes.

Pool

A new pool is extremely expensive and you may not recover even half of your investment when the property sells.  The average home buyer looks at the pool as a major expense and a potential problem in the form of injury or a lawsuit.  Some contracts in recent years have actually been structured to include filling in the pool with dirt and sod just to avoid potential problems.

Carpet throughout the Whole Home

It can be rather expensive to replace the carpet in an entire home.  Additionally, styles and preferences change over the course of time and homeowners may wish to have a more updated look in the home.  The need to replace a large amount of carpet sometime in the next 3-5 years would likely be daunting for most homeowners.  A better bet is to have hardwood and tile in the home.  They are easier to clean and most people appreciate the simple upkeep. Although the initial investment in hardwood or tile is more expensive, you are more likely to get a greater amount back when you sell the home.

More Home than the Rest of the Neighborhood

One of the fundamental basics of flipping homes is to search for a property that conforms to the neighborhood.  Never buy the absolute biggest home or the smallest home in the neighborhood.  They will be harder to sell.  Along the same thought process, never add more to a home that will make it vastly different from the neighborhood.  If all the properties on the street are single story homes then it makes no sense to tack on a double story addition.  Stick with the norm for the neighborhood in order to be able to move the property quickly.

Expensive Cosmetic Features

Some people like to brag about the Italian tile in the kitchen or the gold chandelier in the dining room when they are working on a remodel.  However, these expensive items add little to the value of the home.  It is better to make sure the home has plenty of lighting, has ample space and that the closets and cabinets are well organized.  Those expensive add-ons can be purchased by the next owner.

Basically, the best improvements you can make to an investment home are the ones that add function and space.  Anything else will simply be for show and potentially cost you too much in the long run.

Hello, My name is Ziggy and I am the owner of www.datalistleader.com

I am currently working with short sale specialist, loan modification agents, mom and pop real estate companies, certified distressed property experts (CDPE), attorneys, mortgage brokers, Investors and the list goes on and on.

The most common request we receive is to get a list of homeowners who are having troubles with their month to month mortgage payments. This is where my staff and I come in!

Well help all types of companies get in touch with borrowers that are 30, 60 or 90 days late on their mortgage payment. These borrowers have not received a Notice of Default yet so their late mortgage payments are not in the public domain. Our goal is to match the right audience with the right business person(s). However, some companies and individuals are not genuine about what they do. So before I am willing to help any particular company I like to find out the level of integrity my potential clients bring to the table.  

I am open for discussion about how to reach out to late homeowners. Simply touch base with me about your interests and we can go from their.

Ziggy (Aaron Santa Maria)

Senior Marketing Consultant

Cell: 760-716-0766

Toll Free: 877-500-3282 Ext 106

Fax: 877-695-0217

Email: ziggy@datalistleader.com

Website: http://www.datalistleader.com

In the months and years to come, more and more tech-y gadgets and apps will be introduced to the real estate arena. You need to keep your eyes open for these changes and updates. In a highly competitive industry like real estate, your chances can be determined by how well equipped you are.

Predominantly, REOs can be found on bank and various mortgage lender websites. Lucky for those who have contacts, they can easily get good deals from insider information. Today, however, these financial institutions often sell their REOs in bulk or have these properties marketed by real estate brokers with standalone listings on their site. You can check out multiple listings on the net and make use of these sites with their easy-search mechanism. Some sites allow you to filter your search according to location, price range, property type, square footage, and sometimes, number of bedrooms and baths. This somehow saves you time and effort in finding the best property to invest upon. If buying REOs is an entirely new endeavor, working with an REO specialist can be of great help in locating the perfect property for you at a much reasonable price.

We would like to introduce you to our home buyer specialist, Eric Engels, Realtor® | Real Estate Agent serving the Janesville, Wisconsin area!

"Hello Rock County! I am very happy to have joined the Rock Realty team. I have been a resident of Janesville for over 13 years. I lived in the Quad Cites before that living in both Illinois and Iowa. In 2006 I had the chance to move back to the Quad Cites, I thought about it for about 2 seconds, but Wisconsin is the best place to live I couldn't leave. I am a big fan of the Midwest way of living! I am very excited to meet some of the great people in Rock County, and to help them in there home buying and selling needs."

"At Rock Realty we use the newest and most innovative technology to help us in our advertising and researching needs. Please feel free to call or e-mail me with any questions you may have. Again I look forward to meeting the great people of Rock County."

Thanks

Eric Engels

Visit my site to search for Janesville, WI Real Estate Listings:

www.JanesvilleListings.com
(Homes for sale in 53545, 53546 and 53548 and the rest of Dane & Rock County)

Future is Certain, REO to Rent to Become Stable Market Segment

A recent article by Amilda Dymi published on 9/12/2013 @ 2:24pm ET titled “The Single-Family REO Asset Class is Here to Stay” brings up a very interesting set of questions for the REO industry.

Amilda’s article sources are Jade Rahmani of Keefe Bruyette & Woods believes foreclosure to rent properties are growing and perhaps are already considered a growing segment of the REO market which will be with us for the long haul.

Jade reports that the next 12-24 months will see growth in this market so, as a REO agent, I stop and ask myself, what does that mean to my REO listing inventory? Well, I can safely assume we will see more of the same. More specifically, we will see more and more REO agent portfolios shrink and in many cases, become non-existent. This will further weed out the REO agent specialization and further teaches agents that keeping their ear to the pulse of the industry and being able to change focus will remain paramount to the success of high producing agents.

Before 2007, agents were all a buzz with certifications, designations, training courses, etc.. to sale new homes, stage homes, learn about new home green features, etc… After 2007, agents started seeing classes, certifications, designations, training courses for REO and foreclosures. In 2009, we saw a huge emphasis on foreclosure prevention, avoid foreclosure, modify, refinance, etc… 2012’ish, we saw the huge push for short sales and all kinds of seminars, certifications, designations, training courses, seminars, etc… were on every corner. Now, with this whole REO-Rent segment, guess what we are seeing, all kinds of courses, certifications, designations, seminars on how to be a REO Property Manager.

The big push of this “new” type of segment is due to positive cash flow. The truth of the matter is, unemployment is forecasted be high for the foreseeable future and with high unemployment, comes high distressed homeowners. These homeowners will be forced into the rental market, one way or another and if they can stay in the home and just rent it….at least the asset is performing and in most cases, the bank can still get a positive cash flow, even if it’s considerably less if the occupant was paying their mortgage. In other words, it’s not going anywhere, anytime soon and per the article, it’s going to grow like gang busters the next 12-24 months.

So, what do we REO Agents do? We endure, as we always have. The only thing now is, we need to ensure we are diversifying our own business to ensure we continue to endure. We all know NAR has done little to nothing to address our REO woes and therefore, it’s on us to ensure our business survives and if God willing, thrives and the name of that game is diversification.

Yeah, that means we are likely going to be jumping on and off the “education” wagon for all kinds of new certifications, designations, etc… but, we also should be looking closely at our revenue streams and ensuring that REO…in all it’s forms….isn’t the sole majority of our income. Truth be told, in this political climate, it’s just too risky.

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It never ceases to amaze me that the Homebuyers I have run into lately just do not understand that buying a home is serious business and requires someone assisting them that looks out for there best interests.

We remember in our training that for the longest time until recently on the galactic time line, there waas no such thing as a buyer's agent ; that only the sales agent selling a home existed.  The buyers were on their own. Then laws came up about disclosure and the buyer's agent was born.

I dont think much has changed really...in a buyer's mind.

Lately this is what has happened in my realm:

Had a buyer come through my open house three weeks ago and they wanted to write an offer on another neighboring house I showed them that day.  They were ecstatic that the home was perfect and they even measured where their furniture would go.  THEY ALSO TOLD ME THAT THEIR LISTING AGENT WAS NOT ALWAYS ACCESSIBLE AND SHE DID NOT LIKE HIS "TOO GOOD FOR THEM" ATTITUDE.

At the contract signing they stalled because they she started to think about the tax liability of a property switch despite the fact my research showed that they, because of her age could retain her property tax. They then wanted to rely on the tax position of their listing agent, despite the fact that this agent was not licensed to dispense tax advice ( I am a tax preaparer too with a CTEC license). Some checking determined that the office listing agent would not even have my offer considered (it was 13% off of list price).

In the end they wanted to only work with their agent only 24 hours later.

A week later I found them a property in the same area within their means and these buyers were offended that I was still going out of my way trying to help them,despite they had bad vibes with their listing agent.

More recently a brother/sister were going to buy a duplex to live in together. I had been working with the brother for 5 years on and off.  I met with them on Saturday and wanted them to sign an exclusive representation agreement.  The brother was ok but sister claimed I had not been in touch with her ( I was never able to get the sister on the phone but I could always follow up with the brother.) The sister said she was talking to another Realtor and so they agreed to meet and interview her. 

As of today, brother called me and was shocked that other Realtor said I was not doing my job and subsequently supposedly she was in contract on a home (wonder what "shiny" thing she was told ie "flash a shiny object and they will be attracted"). As it is, the brother is going to work with me to find him his own home.

Homebuyers just dont get it: Many times their home buying success is a product of their own dedication. Not what any one agent finds them...but it is just because they are in the right place at the right time.

They forget that there is alot of diligence and that is why we agents get our 2 or 3 % or whatever...not because we turn keys.

Which type of neighborhood is best for flipping homes?

When looking for an investment home that you eventually intend to flip it is important to remember that the location is just as vital as the actual home.  It is feasible to earn a profit in nearly every area but certain areas make it easier on the investor.

Top Qualities

When people pick out an automobile they focus on the features that are important to them and their current lifestyle.  In a similar manner, you can consider the following neighborhood features when considering an investment property:

• Homes that sold recently sold quickly and had strong interest
• Declining numbers of rental properties
• Homes at least 20 years old that will likely need significant rehab
• Steady values or, even better, increasing values
• Average age of homeowner is elderly; these people are potentially moving to better climates or downsizing
• Increased number of people moving from differing areas; signifies popularity

Three Types of Areas to Examine

In order to assist you in determining where to look for the right homes, here are three types of neighborhoods to consider.

• Rebounding areas – There are times when an older, well established neighborhood will undergo a major overhaul.  Many of the owners have made the decision to remodel the interior.  In some instances the owners may be undertaking expansive additions.
• New housing clusters – When an area becomes popular many builders will start developing new subdivisions.  The existing homes in the immediate area could be ripe for flipping.
• Farming region – Established real estate agents like to focus on an preferred area and call it their “farming area.”  They send out regular postcards and newsletters to the residents so that when a home comes up for sale they usually think of that agent first.  A home investor can follow a similar strategy and be the first to know of a potential home for sale at a discount.

Keeping Your Ear to the Ground

Some investors like to focus on their own zip code or a nearby area.  This makes it easier on them because they already know a bit about the location.  There is no long distance commuting to check out a potential property. Sometimes, neighbors can actually provide a good tip that leads to a purchase.  And the local gossip is usually easy to find.

However, this only makes sense if the area is holding steady or rising.  A neighborhood suffering from falling values, crime, or an imminent new highway is not a good choice, no matter how close it is.

Don't Get In Over Your Head

This should come as no surprise, but it is also important to remember your financing.  Finding a great home at a 40% or 50% discount is worthless if the home is $50,000 more than you can afford.  Always keep the price in the forefront of your mind since it is a very important piece of the elimination process. If a neighborhood is out of your price range, focus elsewhere.

Following a well-designed plan is important for almost everybody.  Building a business, planning a party and even putting together a family vacation all work more smoothly when there is a good plan in place.  Buying a home for flipping is no different.

Related posts:

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Estimating house repairs accurately for an investment/flip.

Very few people ever buy a car and then find out the amount of the monthly payments and insurance.  Most people sit down with pen and paper, or a computer, and crunch some numbers to make sure they can handle the purchase.   The same thing should be done before buying an investment property.  However, buying a home with the purpose of flipping takes a bit more knowledge and calculation in order to earn a profit when it comes time to sell.

Understand the Difference between Structural Problems and Cosmetic Needs

Even a brand new novice can recognize the need for some paint or fresh carpet.  People that have purchased a home before could possibly spot an older front door or some outdated windows.  However, being able to see and recognize a problem with the structure of a home takes a bit more knowledge and practice.  Pay close attention to these areas and possible problems:

• Areas damaged by water; evidence could be water stains, rippled paint, musty odors or flaking of paint
• Problems with water lines; water supplies that drip or don't run, leaks around toilets, pipes, and water valves
• Presence of pests, especially termites
• Dry and rotten wood

Beyond these trouble spots, it is also important to understand that a home 20+ years old will most likely need some kind of other normal repair such as an updated HVAC system, new roof, or new water heater.

The Right Compromise Makes Everyone Happy

Keep in mind that your goal is to FLIP the home.  That means that you can purchase the home well enough below the market value that you can quickly sell it to someone else for a profit.  If you try to repair too many things, then the price will need to be increased and you could scare off a few investors.

Here is a simple formula that will help you when looking at potential properties.

1. Determine the value of the home after repairs have been made
2. Deduct the money needed to make said repairs.
3. Take this new amount and multiply it by 70%.  This figure is top dollar offer.

Here is a simple example.  You are looking at a home that should be worth $180,000 once it has been repaired.  The money needed to fix it up is $15,000.

In this particular example, if you could purchase the home for $109,000 and sell it for $114,000 you would make a quick $5,000 without lifting a finger.  To make this better, the investor that buys the home from you has enough room to buy the home, make the repairs and sell for a profit.

How to Get Better at Estimating Repair Costs

• Habit of looking at homes – You will need to inspect quite a few homes in order to learn how to recognize particular problems. Seeing the same kind of problem multiple times will teach you what to search for in a home.
• Get acquainted with a contractor – If you are not a contractor yourself then it is a good idea to strike up a friendship with a contractor.  They will be able to give you estimates on your potential properties.  You can also refer work to him to keep him busy.
• Take good notes – When you are looking at a home with a contractor take notes about the problems that he points out and the price for the repair.
• Study material prices – Get accustomed to visiting the local hardware stores to get prices on materials. Knowing when prices are going up, or going down, or certain items will help you make more accurate estimates.

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Are you a commission hungry, investment greedy, out for the kill, selfish, only interested in your own bottom line, completely lacking any real professionalism Realtor?

Well….sure you are, didn’t you know that?

Most of us, can all agree, the public’s idea of what a Realtor does and who we are isn’t all that great. In fact, I am sure most of us have likely heard things like, “Realtors are part time professionals”, “Realtors are just over paid house wives and,  my personal favorite is, “The requirement to get a license is so low, anyone can be an agent”. Granted, perception is often times reality so, regardless of how true these statements may be, we as an industry have a problem….a big problem.

Sad to say though, I myself kind of agree with some of these perceptions. I have myself run into Affiliate Brokers who absolutely had me banging my head up against a wall. In fact, one time, after talking with an Affiliate Broker with another company, I was so exhausted, so battered by stupidity; I thought I was trying to corral cats.

My biggest problem with perception of what we do is the perception that we do nothing. This absolutely bothers me to no end but, truth be told, a vast majority of us literally stick a sign in the yard and wait…..wait……and wait some more. A majority of us don’t do much of anything to pro-actively market, advertise and network our client’s homes. In fact, it’s a bit of an epidemic however, we really aren’t the only ones to blame. How many times have you been to a listing appointment where you haven’t given your clients at least a Comparative Market Analysis, with verifiable comparables sales, in the last 3 months, within the same subdivision, within 10% or less of the subject properties square footage, within + or – 1 bedroom, bath, half bath and finally, within 10% of the subject properties acreage? Chances are, you haven’t done all that work for the majority of your clients because, your clients don’t ask for it. They don’t even know to ask for it. They just assume you did your homework or better yet, they will dictate to you what they will list it at and you don’t have any say either way.

We have all heard, “buying a home is the biggest investment you will ever make” however, how many of us, when working with our client, actually do the same due diligence we would do for ourselves when looking to buy our own home? Oh…did I just touch a nerve? I think I did.

We have a public that is so in sensed on moving quickly, that they have completely given up on moving smart. We have an industry so full of “professionals” that we have completely given up on being professional and become so in sensed with cashing that commission check. So…who is to blame for this debacle? Better yet, maybe we should ask ourselves, do we really have a problem with this perception? Maybe this is just the way the real estate business works?

I am here to say NO, this isn’t the way it’s supposed to work and we owe the general public better. I have seen Affiliate Brokers working with clients and as I pass the door, I hear an offhand remark that makes my blood boil. I get so ticked off because the Affiliate makes such a huge mistake that I can imagine myself in the court room swearing to tell the truth, the whole truth and nothing but the truth….if you know what I mean. For example, when you get a new listing, how many agents call you to ask you, “What kind of condition is the home in?”, “What kind of repairs are we looking at?” or “How much do you think it will cost to fix it up?”??? Now, the funny part of this article is, some of you just read those last couple of lines and thought to yourself…..”what is the problem with answering those questions?” and then some of you read those couple of lines and cringed. I got a questions for you, what category are you in? Did you cringe or did you stop and think back to this morning when you answer all three of those questions about that new listing you got at 666 Money Pitt Ln?

To see change in this industry, each individual will first have to become that change. A very famous man, Mahatma Ghandi said something very similar within a different paradigm however, the truth behind the statement rings true here and now.

The next time you take those mandatory CE courses, actually take something with you and implement it in your daily business life. Expand your skill set, you are much more than just a Realtor. I would go so far to say, if that is all you think you are…if that is all you know….then maybe this profession isn’t right for you in the first place.

Rookie mistakes when flipping a home.

With mortgage rates still at all-time lows and lots of homes available at prices below market, many people are turning to real estate investment for the first time.  In order to be safe, new investors often start out with flipping homes instead of holding a property for its rental value.  Here are some of the top mistakes rookies make in home flipping and how to avoid them.

Not Allowing Enough for Repair Work

This is usually the biggest mistake made by new investors.  People who have never renovated a home often underprice the repairs needed to make the home attractive enough to sell.  This is why seasoned investors recommend that new investors talk to a contractor BEFORE placing a bid on a home.  Getting a good price upfront will help determine if the house is worth the purchase. It is also wise to add a bit of cushion for Murphy's Law for things that just go wrong for no reason.

Allowing Emotion to Let You Pay Too Much

Some investors find the “perfect” home and go full steam ahead with the purchase.  They find a home with a discount in a hot area and they just KNOW that they can sell it for a quick profit.  This is where cold, hard facts should take the lead, not emotion.

An investor should never, ever buy a home for anything more than 70% of the home's repaired value.  This is a rule of thumb that has been used by many investors for years and it has served them well.  Paying more than the 70% will lead to smaller profits or even a loss.

Trying to Do Too Much

Many new investors envision themselves remodeling the bathroom, adding new paint and then finishing up the front lawn in a few weeks and then, voila, the home will sell.  However, it is best to let the pro's handle the tough work.  Repairing or remodeling a home can require some or all of the basic contracting skills such as carpentry, plumbing, masonry, painting and electrical.  It is simply too much of a daunting task to try and do all of this on your own unless you have considerable experience in these areas.  Even if you can do it all, wouldn't it be better to hire someone to do this type of hourly work while you search for the next deal?

Taking Too Long for the Repairs

Each month that you own a property is another month of expenses for items like utility bills, insurance and property taxes.  This can eat in to your future profits and may even cause yourself a loss.  Before buying the property sit down with your contractor and discuss the estimated time needed to repair the home.  If necessary, ask the contractor to break the job down into rooms and develop a timeline.  This will help you and the contractor stay on pace to finish the work and get it back on the market.

Your goal as a home flipper is to find a home at the right price that you can turn around and sell for a profit.  Don't fall in to the trap of these mistakes and don't get too attached to any home.  Always be ready to simply walk away from a potential deal and look for a new one.