Tax savings for investment property owners. (Owning more than one property can have its benefits.)  See Foreclosure

I

This is under on thinking about buying real so tailor this to investing

For the majority of working people, home ownership is the single most reliable way to achieve financial security. The reason we all aspire to own real estate is simply this: We desire to accumulate wealth. Time and time again, we hear of riches built with a real estate foundation. Without it, you may find it almost impossible to gain access to the kind of capital you’ll need to support your growing financial needs throughout your life.

1. Real Estate Is A Tax Deduction: every year it seems that congress opts to cut more and more tax breaks from the menu in the interests of tax simplification and preserving a progressive nature of the tax system. The mortgage interest deduction has suffered nicks and scratches but remains as one of the last remaining tax shelters. Renting deprives you of this tax break.

In comparing your present rental payment with proposed mortgage payment you must calculate the rental equivalency of the mortgage payment. The term rental equivalency refers to the amount of the mortgage payment after the affect of taxation. This calculation illustrates the affordability for a first time home buyer, comparing rent to mortgage payment, and to move-up buyers because they increase mortgage payments can also be reduced by the amount of tax saving realized.

In the first Own vs. Rent Comparisons on the next page, the mortgage payment is higher than the rent payment. Now you may think…”I can hardly afford my rent. How can I afford a larger monthly payment?”

When you compare the mortgage payment after tax savings it is actually lower than the rent payment. That may bring to mind the question…”The tax savings is great at tax time, but how will I be able to afford the monthly payment now?”

Once you’ve determined your monthly tax savings consult your CPA or payroll person and decrease your withholdings. This will actually increase net paycheck, off setting and increase in your monthly housing expense with out causing a tax payment deficiency at the end of the year. This can also help avoid payment shock and keep a home buyer from feeling over extended.

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2. Real Estate Is An Investment: Real Estate consistently out performs other investment vehicles even during low inflation. You can use your current assets to leverage a greater rate of return with a residential real estate investment.

What is leverage? It is defined as the ability to control a large asset with a smaller asset.

Any prediction of future appreciation is just that - a prediction, but the concept of leverage makes housing an excellent investment in any inflationary environment. Many factors can change the effect of leverage. Generally, these rules apply:

A. Low rates of appreciation: The effect of leverage will lessen with lower rates of appreciation. However, in the long fun real estate will still out perform saving based instruments. It makes sense that low rates of housing appreciation will be accompanied by low rates of inflation, which will also lower savings rates.

B. Holding periods: Because of the cost of real estate acquisition and the cost of real estate disposition (figured in the chat below at 8%), there must be reasonable holding period for gain on real estate. During periods of moderate appreciation (5% to 7%) real estate must be held at least 3 to 5 years to be more profitable than savings account. Higher appreciation rates will allow for shorter holding periods.

C. Increasing the down payment: Generally, the larger the down payment, the smaller the percentage return on real estate. Remember that the concept of leverage requires that we control as large an asset as possible with the smallest asset possible.

D. Mortgage principal reduction: In addition to the leverage principal, the gain on real estate is increased by a reduction in the principal amount of the initial mortgage. The portion of your payment that is not interest is principal that goes to pay down the loan. This is equity that is building up even without housing appreciation-a forced savings plan. A return never has the opportunity to build equality and in the examples below owing is cheaper than renting.

By using leverage you can start small and buy up. You may feel there will be plenty of time to get into the housing market when you feel financially secure. Problem is, you’ll probably need the profit you’ll make by selling “starter” house to be able to afford the one you’ll want in the future.

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3. Real Estate As An Inflation Edge: It has been several years since double-digits inflation raised its ugly head. Even in times of low inflation, monthly rents move upward much more quickly than a mortgage payment. As time goes on, home ownership becomes more affordable because a home is an inflation hedge.

What is an inflation hedge? We all know what an inflation is. It is the tendency for expenses to rise over time. An inflation hedge is protects one against future costs of inflation. We know that rent is subject to inflation. A mortgage payment resists inflation. The majority of the mortgage payment is principal and interest and is not effected by inflation. (Note: The payment on an adjustable rate mortgage may increase independently of inflation.) The remainder of the payment will be subject to inflation. Specifically, real estate taxes, homeowner’s insurance and association dues will tend to move up with inflation. However, because these are only a small portion of the payment, the overall payment will not increase as fast as rent.

With a fixed rate mortgage your monthly payment will remain virtually the same year to year with inflation only effecting approximately 20% of the payment. This is not true of rental payments. (See chart on the following page showing average rental increases over time.)

4. Security, Privacy, Freedom: The American dream is to purchase a home. It is the goal of the average American today. It is the ability not to have a landlord and the freedom to stay or move. In 1992, the Federal National Mortgage Association (Fannie Mae) released a survey indicating that 78 percent of all Americans think owning a house is a good investment. More than one-third of these gave security and sense of performance as the reasons for wanting to own.

There are strong psychological benefits to owning a home. Pride of ownership, the freedom to do as you want, and gaining the privacy and security you deserve. No more worrying about pesky land lords, or sketchy leases. This time you call the shots! Take the first steps to financial freedom. Call today or apply through our secure applications and see what possibilities are out there for you and your loved ones!

The Key to Getting Started in Real Estate Investing (Know Your Risks)
by Dr. Steve Sjuggerud

There are smart reasons to invest in real estate, and then there are dumb reasons. The truth is, for example, that we can’t know for sure whether what’s happening in real estate right now is the formation of a “bubble.” It's the first thing you must question if you're getting started in real estate investing, and the one issue you'll continuously address. But if you’re investing for the “right” reasons — and you know your risks — chances are your investment will be a good one.

While the topic of real estate investing is just too big to cover in one short note, I’ll cover some of the major points that you’ve got to keep in mind...

1. Speculating versus Investing

Buying a chunk of land and hoping it goes up in value is SPECULATING. Buying a property to collect high income in the form of rent is INVESTING. When you compare investors who speculated in Nasdaq stocks in 2000 (and lost it all) to those who invested in bonds and smartly collected income, the difference in risk between speculating and investing is obvious. Investing is a much safer (and smarter) way to go.

2. “Property Will Always Go up in Value”

Don’t believe this dangerous myth! Property prices in Japan have fallen by 75% over the last decade — about the same amount that Nasdaq stocks have fallen since 2000. Hoping for — or worse, expecting — a price rise is speculation. Make sure the investment makes great sense from a positive-cash-flow perspective first. Then if the property falls in value, you’re still “right side up” on your cash flows. Consider any appreciation to be simply icing on the cake when it comes to speculative real estate investing.

3. Getting Started in Real Estate Investing with Residential Property

It’s easier to understand, purchase, and manage than other types of property. If you’re a homeowner, you’ve already got experience here. And you’re the boss. Start close to home, so you can stay on top of things.

4. Truthful Real Estate Investment Advice: Don't Believe Everything You Hear or Read

Sellers and real estate agents ultimately want you to buy that property. So what they’re telling you is most likely the rosy scenario, not the actual scenario. If the property has been a rental, ask the seller for his Schedule E form from his taxes. It’ll show his ACTUAL revenue and expenses, or at least the ones he reported to the government. What you can expect to earn is somewhere between what he reported to the IRS and what he’s promising you.

5. Where To Buy

There is — as you probably know — a widely held belief that the three most important factors involved in real estate success are “Location, Location, Location.” But real estate expert John T. Reed (www.johntreed.com) actually says there’s MORE profit in less desirable locations. Reed looks for what he calls a “double-digit cap rate.” As an example, if you net $1,000 a month in rent on a $100,000 investment, that’s $12,000 a year, or 12% of $100,000. That’s a double-digit return that year or a double-digit cap rate. The catch is that this is NET rent or rent AFTER expenses. My parents have had rental properties for decades. And off the top of his head, my father suggests that 5-10% is close to what really happens, even after doing your homework.

Conclusion: there are no get-rich quick schemes here, and THAT is plain, simple real estate investment advice you're not likely to get from the real estate industry.

Find more Real Estate Investing Education articles and Real Estate Secrets from Dr. Steve Sjuggerud and Mike Palmer.  

Additional Investment U Archive Articles:

• Real Estate Investment Tips (You Can't Go Wrong in Real Estate?)

Offer the top price you can afford  Works best in hot markets  
Seller may reject and you may have to walk away  
Save terms to bargain  Works best in situations where seller is
highly motivated  Seller may trade price concessions for your
agreement to close sooner or take charge of repairs after the
inspection  
Give up something to get something  Works in most situations  
Seller ends up taking something you don't really want but you
ask for initially to gain a lower price or other concession  
Move in small increments  Works best for overpriced properties
in slow markets  Seller may agree to lower price if given time
to adjust to the idea  
Focus on issues you can resolve to keep momentum going  Works
best after several rounds of negotiation  Seller and buyer come
to terms after resolving easiest issues first  
Be unpredictable  Works best after several rounds of
negotiation  Seller accepts your offer after you suddenly make
sizeable change  
Make an either/or offer  Works best after several rounds of
negotiation  Seller accepts one of two scenarios you offer  
Split the difference  Works best after several rounds of
negotiation  Seller and buyer settle on price exactly between
asking price and offer  
Set deadlines for action  Works best in any situation  Seller
and buyer will act m

     
TIP: In a competitive bidding situation, a seller may try to influence your offer through your agent. If your offer is on the table and you hear from your agent that the seller will accept it if you change a couple of terms, ask for a formal counteroffer before responding. In some states, such as California, a seller can counteroffer with more than one buyer at a time. All states allow a seller to withdraw a counteroffer before it has been accepted by a buyer.  
     

4. De-clutter Stuff distracts; clean it out. 5. Stage the sale Buyers make their decision within the first eight seconds.

Best National Website for Sellers: #1 Owner Site: ForSalebyowner.com ·         Easy to navigate·         Good information·      No commission

Buying a foreclosure can be a lucrative investment.  Your goal is to buy property far below market value so your investment already has substantial equity on the day you close.

Understanding the foreclosure the process gives you some insight into locating foreclosures at their earliest stages and avoiding some of the pitfalls.

The Federal government forecloses on hundreds of thousands of homes each year that have been financed through several of its funding source: 

• Veterans Administration (VA), 
• Housing and Urban Development (HUD),
• FANNIE MAE 
• Federal Depository Insurance Corporation (FDIC). 

These homes can make lucrative investments and there are many special programs to allow purchasers to buy these homes with little or no down payment and many have repair allowances.  Once the homes are taken back by these federal agencies they appear on the http://www.foreclosuresus.com database.

Banks and financial institutions take back homes that they have loaned funds against.  They refer to the properties they retrieve as REO’s or real estate owned.  Within larger banks, they are REO departments solely devoted to the resale of these properties.  Banks supply their REO listings to the http://www.foreclosuresus.com database.  Most contain the bank’s name and the contact person’s name and phone number.  These are people you should meet in person and tell them the type of property and zip codes you prefer.  Bring a letter of credit or pre-qualification with you.  In the case of bank, be sure you are prequalified at their institution.

Pitfalls-Not all foreclosure listings are bargains.  In some cases, financial institutions will price the property based on the amount of outstanding loans on a property.  With 100% equity lending now available, this amount may be very close to the value the property.  If you purchase the property at this price you will have no equity at closing.

Auctions Home auction companies are nationwide.  Many of these companies require a minimum bid, which is almost the appraised value of the home.  Many times these homes are purchased by anxious buyers who get caught up in the excitement of the bidding and overbid on a property.  They pay the appraised value or more for a home. 

Auctions by municipalities offer far more lucrative opportunities.  These homes are sold for back taxes and to clear liens.  Homes worth $250,000 can be purchased for $100,000.  Successful bidders must fund the home purchases within 24-48 hours.  This means that a bidder must have a line of credit in place when bidding.  Because the properties are usually sold “as is”, with utilities not turned on; no appraisals can be done.  This combined with the rapid requirement for funds, makes traditional mortgage financing unavailable.

Unlisted Foreclosures- When you review the www.foreclosuresus.com database further, you will notice that many smaller banks do not include their REO listings. They may have too few foreclosures to have a REO department.  You should contact these institutions directly and ask who is the person designated to dispose of these properties.  Again, your effort may reap you information about properties that are not in any public database.

Determining the Best Bargains

The key to obtaining a bargain is knowing the value of the property minus the required repairs and comparing that to the asking price/starting bid.

Online appraisals are now available throughout the Internet.  For about $10 you can receive a summary of the recent sale of homes in the immediate area.  These appraisals are compilations of public records of property sales and are meant to be used for estimating purposes only. 

Review the sales using the most recent and those closest to the property you are interested in as the most reliable.  Remember to adjust for differences in square footage and features. Overestimate the cost of repairs in your calculations.  As any home renovators will tell you, repair costs always exceed what you anticipate by 30% or more.

• Properties that have been vacant for an extended period of time may have many hidden problems not seen during an inspection.  If you can, ask a neighbor about a property.
• Iif there are contractors working on the property, ask them about the property. I have had contractors tell me about termite damage and mold problems that were not visible.  Of course, do not bid on properties with these types of problems.  The repairs are far too expensive.

Your Goal/Residence/Rental/Resale/Retirement

Your goal in buying a foreclosure is to benefit from the sale of property at below market value to use as your residence, as a rental property or to resell for a profit. You must do the investigative work yourself to garner a solid investment.  Many investors have merely purchased 2-3 good investments in their lifetime and completely funded their retirement with the proceeds.  Whatever your goal is, it is worth the effort it requires.

With savings interest rates at a 30-year low and the stock market looking too perilous for small investors, many people are putting money in an asset they understand -- real estate.

One of the best places to invest is in foreclosure and bargain residential real estate.

The current market conditions make it a perfect time for a small investor to purchase one or more foreclosure properties for their private residence, rental or resale. In this difficult economy, more upscale homes are going into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part of the mix of foreclosed properties available.

Homes valued at $200,000 to $400,000 regularly appear in the national listings that can be found on http://www.foreclosuresus.com. The availability of more desirable properties combined with the reduced interest rates allow many people to qualify for the mortgages on these homes.

Last year, one man purchased a Florida ocean-view, four-bedroom townhouse in foreclosure for about $100,000. He renovated the home in his spare time, spending about $12,000 for materials, cabinets and fixtures to bring it up to "like new" condition. He recently sold it for $197,000, giving him an $85,000 before-tax profit.

He also purchased an inland foreclosure property that after renovation has also doubled in value. He decided to rent the second one. The inland property's rent exceeds the monthly mortgage note and expenses by about $500 a month, giving him $6,000 annual income from the property.

Many owners of homes that go into foreclosure have been struggling financially for almost a year before they give up, which usually means that the house has not received needed repairs or general maintenance for a while.

This may include everything from light bulbs not being replaced to roofs leaks not being repaired. Tree limbs in front yards, broken appliances and windows and dirty carpets, floors and walls are found in very affluent-area foreclosures.

The first rule of real estate, "location, location, location," applies in these situations. If there is trash in every room of the house, but the foreclosure is in a good area with high property resale values, hold your nose, walk through the entire house and consider making a low offer.

Hidden foreclosures
Not all foreclosures are previously owned homes. Some foreclosed homes are new. These homes are not as easy to identify and rarely appear on national lists.

The slow economy has left many builders of new mid-scale and upscale homes without a market to purchase them. With thousands of homes for sale in every city, some builders have reached the end of their construction-loan periods without finding buyers for their homes.

In these cases, the banks that issued the construction loans take possession of the homes and attempt to sell them, using real estate agents to handle the deals.

These too are foreclosures. They are "hidden" foreclosures because no one associated with the sale of these properties will refer to them as foreclosed homes.

In some cities, competition is fierce; in other cities it is nonexistent. In Mesquite, Texas and Collierville, Tenn., foreclosure homes are sold in one day to the top offer among many anxious bidders. In other cities, valuable properties sit for days without receiving one offer.

The climate of the competition for properties is largely dictated by the number of professional "rehabbers" in the area.

Rehabbers buy properties and renovate them quickly to resell them for a profit in 30 to 60 days. They have contract crews that help them complete the renovation work. They are constantly purchasing properties to keep their crews working.

But even in cities where rehabbers are present, a foreclosure home can be purchased. Many rehabbers had a maximum home price they'll pay that is very low compared with the value of other homes in the neighborhood. If you are willing to exceed their price by $3,000 to $5,000, you may obtain the home at a very low price but slightly above what a professional pays.

If you plan to do most of the repairs yourself and not employ a crew of subcontractors, you may have paid about the same amount for the home when you consider your savings on outside labor.

Getting started costs less than people think. With good credit, many banks will loan the full price of the foreclosure or more. If the home is to be used as a rental, many banks will require only a 10-percent down payment.

Individuals with a large amount of equity in another home may get a line of credit from their bank to purchase a foreclosure. When they convert the line of credit to a mortgage, no down payment may be required.

Foreclosure homes bought in good areas at below market values that appreciate annually can be a sound investment strategy for many investors. The appreciation of the homes is tax-exempt until the home is sold. If the home is a primary residence, the appreciation may be tax-free.

Homes used as rental properties give most investors valuable tax deductions while the house increases in value and builds equity. With many stock portfolios down 30 percent in the past 18 months, foreclosure real estate investing may be the alternative many people are seeking.

Tax Lein Foreclosure sales -

Money Coach Elaine Zimmermann

The real estate boom has a dark side for many struggling homeowners. As property values soar, so do property taxes.  Many cities are giving homeowners a double shock by increasing the property tax rates as they increase the tax valuations of the properties. 

In Memphis, TN, the city is proposing a $.54 per $100 of value tax increase translating into $540 for every $100,000 in value.  Many cash-strapped municipalities are facing the same scenario. These large increases in taxes are hard on everyone, but especially impact those on fixed incomes or struggling families who have encountered unemployment or other financial setbacks in the recent past. 

In the past three years, many highly skilled professionals from the airline, high-tech, manufacturing and other hard-hit industries have lost jobs and been re-employed in lower skilled professions, earning much less than in their previous professions.  Some of the explosion in refinancing has been fueled by the struggling unemployed and re-employed.

Some have removed the majority of the equity their homes to survive.  When they owe $5,000 or $10,000 in back taxes and that amount is more then they would net if they sold their house, there is no incentive to pay the taxes.  They merely give up and go into foreclosure.

Other out-of-state owners of land and negative cash-flow properties may discontinue paying the taxes and allow the property to go into foreclosure.

Tax Sale Foreclosures

Buying a home that has gone into foreclosure can be a lucrative investment.  The national  database of foreclosed homes is available at www.foreclosuresus.com.  The procedures for purchasing a tax deed foreclosed home can vary widely among municipalities but some general guidelines apply to all.

Tax sales are a means of generating lost income from delinquent taxpayers.  They are divided in two categories: Tax Lien Sales and Tax Deed Sales.  What you are bidding on at these sales is very different.

During a Tax Lien Sale, what is sold, is the public sale on a delinquent taxpayer’s debt.  Each county holds a sale, usually once a year.  This may only be a legal notice in a newspaper.  No public auction may be held. The winning bidder has not purchased the deed to a property.  The bidder has paid the delinquent taxes to the County.  In exchange, the purchaser is given the first lien position on title, ahead of mortgages, deeds of trust, and judgments, subordinate only to State and Federal tax liens.

The terms of a tax lien sale differ from county to county.  If the lien holder is not repaid with interest on the timetable determined at the sale, the purchaser of the tax lien may foreclose upon the property and all subordinate liens are dissolved, forgiven or otherwise not the responsibility of the purchaser. 

Properties that are sold at tax lien sales usually do not have mortgages.  A mortgage company will pay back taxes to protect their investment then foreclose on the property if mortgage payments are not paid.  These homes become REO’s (real estate owned) and are part of the database on www.foreclosuresus.com.

A Tax Deed Sale is the sale of the deed of the property of delinquent taxpayer.  These are usually at auction.   The owner and all lien holders have been notified of the pending sale. The purchaser is purchasing the deed to the property, becoming the new owner and obtaining all rights to the property free and clear of liens, mortgages and deeds of trust.

Getting a Deal

Houses sold as tax-lien or tax-deed foreclosures are in arrears to their municipalities for back property taxes.  Most counties will begin the bidding for these properties at the amount of the back taxes and county administrative fees.  Some municipalities may require the bidding to begin at 50% of the tax-assessed value of the property.  While others start the bidding as low as 50 cents! 

These can be bargain opportunities at tax sales for those willing to understand the system.

Elaine Zimmerman is the author of How to Retire With a Million Dollars  and the president of www.ForeclosuresUS.com.

Tulsa County (Tues and Thurs 10:00 a.m)Lists come out on Thursdays  http://www.tcso.org/auctionsale/prod01.htm

Payne County http://www.paynecounty.org/assessor/display.php

Oklahoma County http://www.oklahomacounty.org/assessor/Searches/DefaultSearch.asp

http://www.tulsalibrary.org/Research/landrecords/tips.htm Land records Tulsa (Do you have to go in??)

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Flipping Properties: Generate Instant Cash Profits in Real Estate
by William Bronchick, Robert Dahlstrom

The Complete Guide to Flipping Properties
by Steve Berges

THE COMPLETE GUIDE TO BUYING AND SELLING APARTMENT BUILDINGS by Steve Berges and INVESTING IN REAL ESTATE--both of these contain real fundamentals and principles.

Flipping properties-  Get your real estate license to get into this.....

P&D-

got a corporation, got a loan on their home to leverage other properties, bought a 1300 sq ft home with a walkout basement for 76,000and in 2 months made it a full 2600 sq ft, and put it on the market for 134,900! Not their primary residence so they may have to pay other taxes, including 35% tax?

The book starts out by covering the difference between legal and illegal flipping, an issue commonly misunderstood by real estate brokers and lenders. It then goes on to cover real estate law, finding motivated sellers, drafting contracts, negotiating, estimating rehabs, and funding deals. It wraps up with a nice chapter on the real estate business, going full-time vs. part-time, etc. Lot of bang for the buck.

I've done quite a bit of flipping of properties, and this book really hits the highlights of the process right on the mark. Keep in mind that some lenders (particularly FHA) are not as cooperative in lending on properties that have been flipped recently. This is backlash on the dark side of the business, the fraudulent activities of a few bad seeds. 

As an experienced real estate broker, I was looking for a good text to recommend to my beginning investor clients - this is it! The book reads very well, considering the vast amount of technical information about deeds, contracts, escrow, title, etc. No hype in this book, just practical, ethical information about the "quick turn" real estate business. Some very good sample forms are included in the appendix as well. If you are getting started as an investor, this one should be on your list of MUST-READ books!

Look for the worst house in the best neighborhood 

Try "Fast Cash" by LeGrand for better.

This approach makes good sense, but it cuts out a world full of wonder: the physically sub-par house in the upscale neighborhood. Sellers in such places are seldom highly motivated, but who can deny that there are profits to be made there? Too, distressed properties are the domain of the giant wholesalers such as Homvesters,Inc., so you have very well financed competition.

 Title problems  since motivated sellers are apt to be up to their eyeballs in liens and judgements but Even if the title report shows problems with the title, the contract is still in force if the seller can cure the problems before closing."

And if the seller can't, which is highly probable, since they acquired the problems and signed a contract to sell the house to get out of the problems? Well then the authors have 3 solutions for you, the buyer, and they all start with "Sue".

1. Sue for specific performance
2. Sue for damages
3. Sue for return of the earnest money

So unless you're a lawyer, which Bronchick is, you can kiss your prospective profits goodbye just prior to signing and sending a check to the lawyer of your choice. No one you see is smarter than he.

Not surprisingly, the authors recommend doing business as a corporation, since we "live in a litigious society...Eighty million lawsuits are filed every year." Scandalous. In addition, Bronchick and Dahlstrom provide timely and comic advice for keeping your marriage together as you make the transition to flipper: "If you are married, make sure your spouse reads this material with you and participates in the fun process of making money."

Just the sample forms and ads alone are worth the $15 price. You may need to understand the mechanics of real estate investing to follow well. Covers some techniques that only a seasoned investor/dealer would consider but I found the step-by-step to rehab a property and a link to how not to do business under your personal name very helpful. I created a checklist for my project folder so we don't miss anything. The basics work! This book is a good stepping stone to your garden of financial freedom.
I don't see however doing a double closing or convincing a non-delinquent owner to sign over his deed to me. My experience this last year is that I have had to Overbid on properties and have absolutely no contingencies (weasel clauses) just to get a counteroffer. Make a note of the basics and investigate from there. There's no magic, only work. PUSH247

find (or hire someone, " a scout") a distressed house with a motivated seller, make an offer, approximately 80% of the value of the home, Make a small deposit, ( $500-$1000) ,while promising the current owner they can close within a short period of time. Then, or concurrently, find an investor, ( retailer) to purchase the property and while giving yourself a profit.

 people or contacts  could you find to finance 80-100K? ... joining an investment club &  network

  if you can flip the property, why would an investor continue to use your services on a double close?

 the Flipper is required to have an exit strategy . The answer is if the investor backs out, then just purchase the property yourself.  the tiny little ads in newspapers doesn't sit well with me, as you will see.

I have since read some of Mr. Bronchick's other books and they all cover the important details and legal aspects of real estate better than any other books. As an attorney, I often notice that these details are often glossed over in other books which are loaded with theory. You won't be disappointed with Bronchick's books - they are loaded with content! It's good to see there's a real estate attorney out there covering people's bottom line!

rehabbing, finding motivated sellers and running your real estate investment as a business.
buy low, sell high"

 Beginners, now you don't have anymore excuses to make money - without money!

One of the first deals was an out-of-state seller whom I found using one of the advertising techniques suggested in the book. Since it was one of my first deals, I wasn't brave enough to undertake all the expensive repairs (it was a $500k house), so I decided to advertise to "investors-rehabbers". I used a classified ad (like the one in the book) and within a week I sold it for $95,000 more than my purchase contract. That's about 3 weeks total that made me more money than I had been making as an electrical engineer with a Master of Science degree. You guessed right, soon after that I was able to leave my corporate job!

Please realize, the above transaction is not typical, most of my profits are in the range of $3,000 to $20,000, but again it doesn't take much to do a few of those a month either. You also need to know that this is not a "get rich quick" business, it takes time to learn it, but it is one of the most hassle free and most profitable businesses out there. And it's one of not many businesses you can start with very little or no money.

t flipping properties, which is one of the easiest and risk-free (if you learn how) ways to make money in Real Estate, great place to start! Second, it teaches you in a methodical easy-to-learn way the mechanics of Real Estate transaction. Plus, it gives you all the legal paperwork and agreements you need (which are time tested and proven). And you can't beat the price -- it is soooo cheap!

In flipping what is a scam is where some investors together with appraisers defrauded lenders.

Tulsa County (Tues and Thurs 10:00 a.m)Lists come out on Thursdays  http://www.tcso.org/auctionsale/prod01.htm

Payne County http://www.paynecounty.org/assessor/display.php

Oklahoma County http://www.oklahomacounty.org/assessor/Searches/DefaultSearch.asp

http://www.tulsalibrary.org/Research/landrecords/tips.htm Land records Tulsa (Do you have to go in??)

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My father was in the development business when I was growing up, so I've had the opportunity to be with houses from breaking ground to opening. I think I have a good eye for potential and love the creativity of improving a space.

So, my wife really wants a show house. It's a long story, but she really does. Given that we both own our own businesses and that those businesses are pretty young, I didn't feel comfortable adding a lot to our debt load.

So I convinced her to look at some less "show housey" houses. Let's just say that it didn't go over really well.

But I come from two families of creative thinkers and I thought, "What if we treated the first house or two like investments, rather than like homes?"

One puts a lot of emotional stock in their home ... but they can be more pragmatic about an investment. The concept took a while to get through to my wife, but now she is fully on-board.

Flipping properties-

Get your real estate license to get into this.....

Flipping Properties: Generate Instant Cash Profits in Real Estate
by William Bronchick, Robert Dahlstrom

The Complete Guide to Flipping Properties
by Steve Berges

THE COMPLETE GUIDE TO BUYING AND SELLING APARTMENT BUILDINGS by Steve Berges and INVESTING IN REAL ESTATE--both of these contain real fundamentals and principles.

The book starts out by covering the difference between legal and illegal flipping, an issue commonly misunderstood by real estate brokers and lenders. It then goes on to cover real estate law, finding motivated sellers, drafting contracts, negotiating, estimating rehabs, and funding deals. It wraps up with a nice chapter on the real estate business, going full-time vs. part-time, etc. Lot of bang for the buck.

I've done quite a bit of flipping of properties, and this book really hits the highlights of the process right on the mark. Keep in mind that some lenders (particularly FHA) are not as cooperative in lending on properties that have been flipped recently. This is backlash on the dark side of the business, the fraudulent activities of a few bad seeds. This book, however, will keep on you on the straight and narrow - definitely a must read.

As an experienced real estate broker, I was looking for a good text to recommend to my beginning investor clients - this is it! The book reads very well, considering the vast amount of technical information about deeds, contracts, escrow, title, etc. No hype in this book, just practical, ethical information about the "quick turn" real estate business. Some very good sample forms are included in the appendix as well. If you are getting started as an investor, this one should be on your list of MUST-READ books!

Look for the worst house in the best neighborhood - ????? Everybody and their dog does that, and how many ratty houses are there in good neighborhoods? 

This approach makes good sense, but it cuts out a world full of wonder: the physically sub-par house in the upscale neighborhood. Sellers in such places are seldom highly motivated, but who can deny that there are profits to be made there? Too, distressed properties are the domain of the giant wholesalers such as Homvesters,Inc., so you have very well financed competition.

I read all the way through just to see what the process was like in these sorts of transactions. Title problems in particular interested me since motivated sellers are apt to be up to their eyeballs in liens and judgements. On page 79 I found this information: "Even if the title report shows problems with the title, the contract is still in force if the seller can cure the problems before closing."

And if the seller can't, which is highly probable, since they acquired the problems and signed a contract to sell the house to get out of the problems? Well then the authors have 3 solutions for you, the buyer, and they all start with "Sue".

1. Sue for specific performance
2. Sue for damages
3. Sue for return of the earnest money

So unless you're a lawyer, which Bronchick is, you can kiss your prospective profits goodbye just prior to signing and sending a check to the lawyer of your choice. No one you see is smarter than he.

Not surprisingly, the authors recommend doing business as a corporation, since we "live in a litigious society...Eighty million lawsuits are filed every year." Scandalous. In addition, Bronchick and Dahlstrom provide timely and comic advice for keeping your marriage together as you make the transition to flipper: "If you are married, make sure your spouse reads this material with you and participates in the fun process of making money."

Just the sample forms and ads alone are worth the $15 price. You may need to understand the mechanics of real estate investing to follow well. Covers some techniques that only a seasoned investor/dealer would consider but I found the step-by-step to rehab a property and a link to how not to do business under your personal name very helpful. I created a checklist for my project folder so we don't miss anything. The basics work! This book is a good stepping stone to your garden of financial freedom.
I don't see however doing a double closing or convincing a non-delinquent owner to sign over his deed to me. My experience this last year is that I have had to Overbid on properties and have absolutely no contingencies (weasel clauses) just to get a counteroffer. Make a note of the basics and investigate from there. There's no magic, only work. PUSH247

find (or hire someone, " a scout") a distressed house with a motivated seller, make an offer, approximately 80% of the value of the home, Make a small deposit, ( $500-$1000) ,while promising the current owner they can close within a short period of time. Then, or concurrently, find an investor, ( retailer) to purchase the property and while giving yourself a profit.

 people or contacts  could you find to finance 80-100K? ... joining an investment club &  network

  if you can flip the property, why would an investor continue to use your services on a double close?

 the Flipper is required to have an exit strategy . The answer is if the investor backs out, then just purchase the property yourself.  the tiny little ads in newspapers doesn't sit well with me, as you will see.

I have since read some of Mr. Bronchick's other books and they all cover the important details and legal aspects of real estate better than any other books. As an attorney, I often notice that these details are often glossed over in other books which are loaded with theory. You won't be disappointed with Bronchick's books - they are loaded with content! It's good to see there's a real estate attorney out there covering people's bottom line!

Read this book if you want to learn about the legalities of real estate and buy Berges' book if you want to learn about real estate finance.

One week after reading it and absolutely no prior real estate experience, I flipped my first property and pocketed $8000.00!
Bill Bronchick's writing style is easy to understand, packed full of useful information, and delivered in an user friendly manner!
This little green book is the key to putting fast cash in your pocket!
Also buy "Financing Secrets" - a must have!

other useful chapters related to rehabbing, finding motivated sellers and running your real estate investment as a business.
buy low, sell high"

Bottom line, this book is a must for anyone who is involved in Real Estate investing, or just thinking about it. Beginners, now you don't have anymore excuses to make money - without money!

One of the first deals was an out-of-state seller whom I found using one of the advertising techniques suggested in the book. Since it was one of my first deals, I wasn't brave enough to undertake all the expensive repairs (it was a $500k house), so I decided to advertise to "investors-rehabbers". I used a classified add (like the one in the book) and within a week I sold it for $95,000 more than my purchase contract. That's about 3 weeks total that made me more money than I had been making as an electrical engineer with a Master of Science degree. You guessed right, soon after that I was able to leave my corporate job!

Please realize, the above transaction is not typical, most of my profits are in the range of $3,000 to $20,000, but again it doesn't take much to do a few of those a month either. You also need to know that this is not a "get rich quick" business, it takes time to learn it, but it is one of the most hassle free and most profitable businesses out there. And it's one of not many businesses you can start with very little or no money.

If you ask me why to buy this book, I'd tell you this. First, if you're just starting, this book will teach you about flipping properties, which is one of the easiest and risk-free (if you learn how) ways to make money in Real Estate, great place to start! Second, it teaches you in a methodical easy-to-learn way the mechanics of Real Estate transaction. Plus, it gives you all the legal paperwork and agreements you need (which are time tested and proven). And you can't beat the price -- it is soooo cheap!

Your relatives, neighbors and friends may tell you that "flipping" is illegal. What they are referring to is a scam where some investors together with appraisers defrauded lenders, and that has nothing to do with the concept described in this book. ...

The authors book on "flipping" properties has a number of strategies that I have implemented in my business and that have worked well. I "flipped" more than 10 properties in 2002 and have enjoyed the profits from those deals and continue to realize positive gains from the strategies that I have learned in Bronchick's and Dahlstom's book.