Why You Have Not Made A Dime Investing In Real Estate Investing & What You Need To Do If You Want To

May 2, 2008

Ok, so you haven’t made a dime in Real Estate yet right? You want to be a Real Estate Investing Millionaire, but for some reason you can’t seem to find good deals on houses. Well, I can tell you what your problem is.

You are doing all of the things that don’t make you money in real estate! Going around with a Realtor, looking on the web, driving around nice neighborhoods looking for For Sale signs, telling a few people that you Buy Houses….it’s a major waste of time.

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That’s just keeping yourself busy! Do you want to “PLAY REAL ESTATE” or do you want to be a “Real Deal” Real Estate Investor? If you don’t want to do what it takes, do yourself a favor and go down to Toys R’ Us pick up a game of Monopoly and call it a day. If you’re more interested in the latter, then you need to listen up! Spend that time knocking on the doors of homeowners in foreclosure. Quit doing all of the “Safe” things like meeting with Realtors. That’s why they’re safe, because you’re not going to make any money. If you don’t put yourself out there…YOU’LL NEVER GET A DEAL!

What you’re doing is looking for deals on houses & not looking for people that need their problems solved. No one sells their house at a serious discount unless they HAVE TO! Would you sell your house to me for 50 cents on the dollar because I’m a nice guy? Of course not, you worked hard for your home and you don’t HAVE TO. But if you had lost your job, were 30 days from losing your home, and I showed you how I could put immediate cash in your pocket, wouldn’t you consider it?

As investors we buy houses from people that NEED TO SELL, NOT PEOPLE THAT WANT TO SELL. When you’re dealing with a Realtor, 9 times out of 10 they’re going to show you nice houses, owned by people that are in no urgent rush to sell. I hardly ever deal with Realtors. I’m not saying to completely alienate yourself from them. That would be foolish. Simply network with them, and let them know that if a killer deal comes along, you can close with cash quickly. Explain what you’re looking for and that’s when they will call you. I wouldn’t go around looking at houses with them. Most Realtors are not trained to look for the types of deals that we’re looking for. Actually, they’ll probably tell you that it’s NOT POSSIBLE to find the kinds of deals that we do.

There’s a few things that you need to be looking for..THESE are the things that will lead you to the good deals that you’re looking for:
1. Divorce
2. Imprisonment or Court Costs
3. Loss of Job – Foreclosures
4. Bankruptcy
5. Death
6. Job Transfer
7. Bad Tenants – Contact Landlords who have filed evictions

Most of these types of people can be searched by looking through the public information on your local courthouse records. Depending on your location, most of the time these are available online. Situations like Loss Of Job would be discovered by looking through the foreclosures and knocking on their door. You need to focus your attention on people with these types of situations.

These people usually have serious issues that need to be solved. They at one time had the cash to pay for their mortgage and the expenses associated with it. Now due to circumstances beyond their control, things have been thrown out of whack and they need someone to get everything reorganized for them. That’s your job…Solve their problem and you’ll get a good deal.

Sign Up To Receive Rich Urban’s Free Real Estate Investing Course at: http://www.youngrealestateinvesting.com/freecoaching
You want know the REAL TRUTH about making money in Real Estate that everyone else is too scared to reveal you? Are you sick of all the B.S., hype, lies and scams out there?

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My New Real Estate Investing “Toy” Review

November 7, 2007

I just picked up a great new software program, and figured I’d let my readers in on it as well.

It’s called RealProspect, and I’ve found it to be the best Real Estate Investing software that I’ve tried so far…designed specifically for real estate investors to better manage our prospecting activities.
Read the rest of this entry »


Volunteer With Me – Is for a Good Cause

October 30, 2007

So while I was online, and I was just reading some of your emails, and a friend of mine sent me this link…

The link is of a myspace page, that myspace started. For Anyone that wants to Volunteer and help the less fortunate, there are many things you can do.
You could work at a hospital, Shelter, help out in fashion Shows, Theres loads of things you could do – over 100 things….

Volunteer from 1 hour to as long 4 hours per day….You don’t have to do this everyday either. You can set it up to help out only when you want to….

YOU HAVE never seem me promote anyones page here unless it was a credible thing, and this is def. something good..

I know 95% of you can’t do it because of your work schedules, children, etc… but that 5% please do so…..If you work only Monday to Friday then helping out for like 2 hours on a Saturday from like 2pm to 4pm is not going to kill you……

Please Check out the Link:

http://offto.net/volunteer/
I already signed up to help 2 things in South Florida..

PLEASE leave me a comment here….on what you thought on the Page. If you can’t do it, the least you could do is REPOST MY Blog Posting to your friends so they can help out….

Don’t Forget to SUBSCRIBE TO MY BLOG to get all the news before anyone else……….

Your friend,

Rich


Police: Westchester Couple, Unable To Sell House, Turn It Into A House Of Prostitution

October 29, 2007

The downturn in the housing market appears to have driven two New York homeowners to desperate, illegal measures when their house went unsold.

Police say the Westchester County couple, both mortgage brokers, turned their home into a brothel.

Robert Werner, 34, and Heather Mazzenga, 32, were arrested at the three-bedroom home Friday night and were charged with promoting prostitution. Four women, ranging in age from 21 to 30, are charged with misdemeanor counts of prostitution and practicing massage without a license.

All six are free on bail.

New Rochelle Police Lieutenant George Rosenbergen would not say how police learned of the alleged operation.

The house, they say, had been turned into a brothel complete with a red ribbon placed out by the sidewalk to indicate they were open for business.

Werner and Mazzenga moved out of the house roughly two years ago so they could begin renovating a home on Mountain Road in Pleasantville.

New Rochelle neighbors told CBS Station WCBS the house had originally been listed for $750,000 but didn’t sell even after the price had been dropped to $600,000. The house was rented to families who came and left, and then fell into neglect until new neighbors arrived about two weeks ago.

The lawn was mowed. Heavy windowshades were put up.

A neighbor, David Saperstein, told WCBS correspondent Lou Young that he never saw the new neighbors. “But at night there’s five, six, seven cars there,” he said.

Natalie Nanzo told Young she’d even considered buying the house when it was first put on the market. She couldn’t get over talk that the North Avenue home was allegedly a house of ill-repute.

“I’m in shock,” Nanzo said, “because these people were business people. I can’t believe they would be involved in prostitution.”

The alleged brothel sits across the street from a museum dedicated to Thomas Paine, the author of 1776 pamphlet “Common Sense,” that helped rouse the nation to war.

It’s the second alleged sex-for-sale bust in a premiere Westchester neighborhood this year. In February, Bedford police accused dominatrix Sandra Chemero of running a prostitution business out of her home – which she rented from a local yeshiva.

 


Real Estate Investing Getting Started

October 4, 2007

BEST WAY TO GET STARTED IN REAL ESTATE

Here are a couple of ideas that should help you get started in the right direction and answer how you can do a no money down deal with no cash, no credit, no income, no nothing, except having some general knowledge backed with a desire to succeed by going out there and taking ACTION!!!

The way most people make money in this game is by using creative techniques to solve one person’s problem while being able to structure the deal to where it makes you a profit.

The key to finding a lot of deals in this game is to look for the MOTIVATED SELLERS…. forget about looking for houses, that’s a waste of time and requires way too much work!!! Narrow it down to dealing with “MOTIVATED SELLERS” and make fewer offers that result in getting more offers accepted!

Let me give you an example on buying a house for full market value, with no money out of your pocket, picking up a quick $5k up front, some positive cash flow every month, and a nice payday on the back end…. plus where talking about dealing in NICE homes with this strategy….NO junk properties!

Mr. Seller has a newer home he purchased about 2 years ago. When he purchased the home he put about 5% down and was able to qualify for 95% financing. After closing cost he had hardly any equity left. Mr. Seller ended up buying a new home a couple years later. He’s been trying to sell this home before he has to close on his new home. He can’t even afford to list the home with a realtor because he doesn’t have enough equity in the property to even cover the 6% – 7% commission he would have to pay a real estate agent.

Now the Seller’s new home is finished, ready to be moved into and he needs to close on it. He closes and figures he’ll sell the old home soon, but soon enough doesn’t seem to be coming. Now the Seller is starting to have some financial problems because he has to start paying two mortgage payments until someone buys the old home. The Seller has a problem now because he can’t afford to make two mortgage payments. If something doesn’t give pretty quickly, he’s going to fall behind on the payments on the old home. He’s going to pay the new homes mortgage first. But he doesn’t want to be late or get behind on the payments of the old home either. The Seller is worried about damaging his credit if he misses any payments.
This is where I would come along and be in a position to SOLVE HIS PROBLEM! I can put a stop to the Seller’s worry and stop the bleeding TODAY! All the Seller needs to do is agree to my TERMS and I’ll even pay him what he owes on the property, which is pretty close to full market value. The Seller knows he wasn’t going to get any money out of it after paying off his mortgage and closing costs, so all the Seller wants and all he NEEDS is to get out from under his mortgage payment!

I agree to take over the Seller’s mortgage. I take it over “subject to”, which means I assume the Seller’s loan without even qualifying through the lender that holds the Seller’s mortgage. The Seller will deed the property over to me. I now OWN the home. The Seller is still on the loan that has the lien against the property. The Seller remains responsible to the lender for that loan until I pay it off! Usually within a few years when my tenant ends up exercising their option that I will give to them under a lease option agreement. I won’t be liable for the loan on the property to the lender. The Seller’s bank can’t come after me if something where to go wrong. The loan is in the Seller’s name, not mine! However, I will be liable to the Seller to perform on our contract agreement to make his payments and pay off that loan eventually, but my liability is to Seller, not his bank.

The Seller deeds the property over to me. The house is worth $150k. The Seller’s loan balance is about $145k. I agree to start making the payments in 30 – 60 days from today! Now I have 30 – 60 days to market the property before my payments start. The payments are $1400 PITI

Read The Next Posting To Find Out How TO Sell This Property…


How To Find A Home That Is In Pre Foreclosure Or Foreclosure

October 2, 2007

 

 

Finding a home in the pre-foreclosure process provides you with the best opportunity for profits in real estate investing. When you invest in pre-foreclosures, you can usually negotiate directly with the owner, who is motivated to sell for a bargain price. The best option is to find foreclosure properties before they go to public auction.

Finding pre-foreclosures is not difficult, but it does take action on your part. One fact working in your favor is that mortgage lenders are usually required by law to give public notice of default. Public notices are typically filed at the county courthouse and, in most cases, are published in the local newspaper.

Public notices of default provide an excellent starting point in your search for pre-foreclosures. You can find most of the information you need, including the lender’s name, the homeowner’s name, the amount owed and the interest rate. However, most public notices only have a legal description of the property and do not include a street address.

Starting with the information you have from the public notice, you can find the information you need at the county tax assessor’s office. County tax rolls are public information and anyone is allowed to review them. Take the homeowner’s name from the public notice and find it on the tax roll. Once you find their name, you can match up the property description with a street address.

Foreclosure services that provide you with a list of pre-foreclosure properties can be hired for a monthly fee. Some counties are making their foreclosure information available on the Internet.

In addition to the public legal notices, you may find leads to pre-foreclosures in the real estate ads. Look for advertisements that suggest a very motivated or even desperate seller. When you call for more information, you may find that foreclosure is imminent.

Finding and making an offer for federal foreclosures (FHA and VA loans) is more difficult but may be more profitable in the end. You’ll need to build a business relationship with a federally approved real estate broker.

Another excellent way to find pre-foreclosures is to place some classified ads of your own. Your ads should be clear and direct, with the word “foreclosure” featured prominently. Individuals who are looking for a way out of the foreclosure process will welcome the chance to consider your offer.

Investing in pre-foreclosures will give you the highest profit potential with the most financing options. All the information you need to get started is printed in the paper every day.


Foreclosure Investing: The Fortune is in the Follow-Up

October 2, 2007

Successful foreclosure investing requires more than simply locating properties and contacting the owners. In most cases, you’re going to need a plan for consistent follow-up.

Remember, foreclosure investing requires a particular response from the property owner. Namely, you want to negotiate a deal that gives you control of the property at an attractive price, while at the same time helping the owner avoid full foreclosure proceedings. Putting together a deal that meets these specifications will take more than one contact with the owner.

To begin with, the owner is under a lot of stress as they face the prospects of foreclosure. There’s a good chance that the foreclosure has come about as a consequence of poor financial management or wrong financial decisions. This may make the owner reluctant to make any more decisions about money, even if it appears to be in their favor.

Foreclosures are often only part of the owner’s overall financial situation. They may be enduring numerous calls and letters from creditors and collection agencies. Your initial contact with the owner could easily get lost in the flood of communications the owner is trying to deal with (or ignore).

Even if your contact does rise above the roar, the owner may view your offer with suspicion. Any offer to help at this point in their situation will seem too good to be true, so they may fear a scam of some sort. Your only alternative in foreclosure investing is to be persistent. You should have no expectation of a quick response from the homeowner. You will need to plan for repeated contact attempts.

The secret to successfully getting the owner’s attention is lots of regular, consistent contact. In fact, you need to plan to correspond with the owner every other day, and you need to keep it up until the scheduled public auction. That’s a lot of contact, even if you’re only working on one property. If you are tracking more foreclosure investing opportunities, that will multiply the number of follow-ups you need to track. You’re going to need some sort of system for keeping up with each contact and where each property is in the stage of the foreclosure process.

Foreclosure investing requires regular, consistent follow-up with multiple property owners who may not be interested in what you have to say. Follow-up contact is not an optional activity. Your communication with them must be designed to create the desire within them to avoid foreclosure. If you fail in your efforts to contact the owner, there will be no deal for the property.

This may sound like a great deal of work and it will certainly take organization. But when it comes to foreclosure investing, the fortune IS in the follow-up.