Author Archive
| August 23, 2011 | ||
| 6:30 am | to | 8:00 am |
| September 20, 2011 | ||
| 6:30 am | to | 8:00 am |
Have you always thought about buying an investment property? Are you watching your friends or family feast on these cheap foreclosure homes? Have you been watching the market and want to understand more about how you can purchase a $39,000 single family home, rehab it, rent it out and make $300-400 per month in cash flow?
Well, this is the seminar for you. No sales pressure, you are going to be asked to buy anything or sign up for tapes. This is just a 1 hour informational seminar lead by Ryan O’Neill who has been an investor for 8 years and owns 14 rental units. At this seminar you will learn more about types of rental properties, how investment property financing works, where the best deals are, and how to handle tenants.
This seminar is in Burnsville. Register for the seminar by filling out this quick registration form or call 612-281-5419 for more information.
Free IP201 Seminar: All You Wanted to Know about LLCs, but Were Afraid to Ask
| June 28, 2011 | ||
| 6:30 pm | to | 8:00 pm |
(This very popular seminar was standing room only the last time that we had it on the calendar, so don’t wait to sign up.) Just about every new investor that I meet will eventually ask: “Do I need an LLC for my investment properties”. Maybe your question is “How can I protect myself and my assets if I am sued”. Alternatively, you were talked into setting up an LLC for each property and you are finding it expensive and overwhelming to manage.
Join us for this free Investment Property 201 seminar to learn more and have your questions answered. Attorney Matt Engel specializes in helping investors just like you set up and fix their personal and corporate liability shield. We will discuss why you need an LLC, how it should be used, what documents are required and last but not least we will answer the age old question: “Should I buy the properties in my LLC or should I deed them over after I buy them”.
This seminar is an excellent resource for both new and seasoned investors. Get your questions answered by an attorney that works in the field of Real Estate law.
Register for the seminar by filling out this quick registration form or call 612-281-5419 for more information.
Seminar: How to Buy Cheap Houses from the Government
| May 24, 2011 | ||
| 6:30 pm | to | 8:00 pm |
No, this is not a late night infomercial on how to buy a tax forfeited property for $257. You are not going to be sold a pack of CDs or books to take home and read. For over 40 years, the federal government has been selling foreclosed properties for deeply discounted prices. This is a little known program that many real estate agents don’t know about or are not willing to work with. Come and learn from Zach Skatum, who lists these HUD homes every day. Hear from Rob Bonahoom who will discuss financing these properties using rehab financing. This free seminar will show you how you can find amazing property deals by purchasing from the federal government.
Seminar is in Burnsville and will last about 1 hour. Register for the seminar here.
Investment Property Seminar
| May 17, 2011 | ||
| 6:30 pm | to | 8:00 pm |
| June 21, 2011 | ||
| 6:30 pm | to | 8:00 pm |
| July 19, 2011 | ||
| 6:30 pm | to | 8:00 pm |
From his experience of owning 14 rental properties, Ryan O’Neill will teach you a concrete way to build wealth through real estate. This seminar will be a one and a half hour presentation and an excellent opportunity for you to learn more about our process: how you get pre-approved, what type of loan product to choose, and then how we step you through the process of finding the property and helping you get it rented out.
Whether you are a beginner or an advanced investor, this will be a great chance for you to learn more about how you can build your long term wealth through buying real estate. Again, so many of us at www.InvestmentPropertyGuys.com own rental properties. Our team leader, Ryan O’Neill has owned 14 rental properties since 2001, and our mortgage coach Rob Bonahoom has owned over 20 properties throughout his career. We have experienced the benefits of real estate, and we’re excited to share a free seminar with you on how you too can get into the game (or continue on).
Seminar is in Burnsville and will last about 1 hour. Register for the seminar here.
Twin Cities Housing Market Showing No Improvement in March
The Twin Cities’ housing market had another grim month in March. It continues a string of brutal months for sellers. Pending sales were down over 17% in March compared to March 2010 and 21% year to date versus last year. This is almost 900 less purchase agreements than last year. If you remember, this time last year was being pushed along kicking and screaming by the federal tax credits, which ended last spring. The less pending sales show us that we are getting toward a stalemate where the number of buyers without a home to sell is getting smaller. If seller’s can’t sell their homes, they can’t then buy a new one and the circle continues to get worse and the concrete continues to set on the housing market.
On one positive note, new listings were down by 30% year over year and total inventory levels shrunk by a hopeful 4.5%. This inventory level is the lowest in 6 years. We are currently at just over 24,000 homes in inventory. Most experts agree that the number needs to be under 20,000 for our housing market to function properly and stop the free fall of prices. Sadly I don’t see that happening soon.
Pending sales of foreclosures (typically the anchor dragging down the market prices of homes), grew by almost 32% in March. They now account for 40% of the pendings and 43% of the closings today. Throw in the short sale numbers and it makes it nearly impossible to compete as a retail buyer in this market. Homes are taking on average 152 days to sell and are selling for less than 89% of their asking price (down from almost 94% in March 2010).
Something needs to change. It is not another Federal Government bailout, stimulus, or tax incentive. We need the economy to be stronger with more people at work. Plus, I believe that if the banks simply loosened up their regulations to investors with good credit, good income, and solid assets, we could reduce the inventory by letting them snap up the cheap junk REOs, spend money on rehabs, and use competition to drive up prices. By letting the investors eat the cheap REOs and eliminate that inventory, it will allow the retail seller to sell his home at a proper price without price pressure from the foreclosure houses around him.
Thoughts on Buying a Home
Home ownership is something that many people are interested in. But there are some things you should ask yourself before you decide if you are ready for home buying. Are you ready for the financial responsibility? Houses will on average cost more than living in an apartment or duplex. Mortgage payments will have to be paid every month, which means your financial situation has to be solid. Additionally, once you have a home, you have to be prepared to fix anything that goes wrong. If your roof starts to leak, or your furnace breaks down, you cannot simply call a landlord and have them fix the problem. This responsibility is on you.
Owning your own home certainly does have its benefits. It provides more privacy than apartments, more storage space, and the advantages of yard space, with the capabilities for landscaping and gardening. It is however a long term commitment, so be sure that is what you want before you go home buying.
What if you are selling your home? There are some things you can do to make home selling a little easier. First, make sure your home is in good condition. It should be clean, inside and out. A clean home looks much nicer and a buyer is much more likely to be interested in it. Avoid clutter and try and organize your furniture so that it looks neat and presentable. A few new coats of paint can really do wonders to freshen up otherwise lackluster rooms. Especially after the snow melts in Minnesota, a house can really use a heavier exterior cleaning.
Be familiar with how much your house is worth. Is it in a nice location? Does it have any structural issues? How does it compare with other houses of similar size? Knowing this information can help you to set an appropriate market value for your home. Obviously, you do not want to have a value so high nobody will bid on it, but nor do you want to sell short the value of your house. Use the MN MLS to search for comparable homes in your area.
Typically a house is the largest financial investment a person will ever make. Always take your time to make any decision. No matter where your potential new home is, Minnesota, New York, or California, do research. Find out how much houses are generally worth, and be sure to get a home inspected before buying it. Never be afraid to ask your lender questions if you do not understand something. It is your money, and your home, and you have the right and responsibility to gather as much information as you can.
Home Buying And Selling Online
Many people go into home buying, and home selling, as an investment option. They look at the housing market and the opportunities it represents. There are tons of houses on the open market that has been either foreclosed or facing foreclosure. These houses are sold for less than the market prices in some cases. Individuals, who participate in the home selling business, usually have some indication of how much money they are willing put up. The need to get into this business has been down since the housing industry took a serious hit several years ago.
During that time of depression hundreds or perhaps millions of people lost their homes. This was a bad time for homeowners, lenders, and banks. Everyone seemed to have lost during that time. Home buying was down a great deal, and there was a great need for home selling, especially for the real estate industry. Today that is not the case individuals are looking to purchase new homes, or replace the one they lost. Banks are back to lending money, and first time home buyer programs are stronger than ever. Now is an excellent time to be in the housing business has a buyer or as a seller.
Home buying can be done online from home via the Minnesota MLS. Many banks are now allowing individuals to bid on houses from the auction website. Houses that have been foreclosed by the banks or houses that have been awarded to the court in cases of abandonment are the ones that can be brought for dirt cheap. The nice thing is that you can see this from the comfort of your own home, even when it is snowing like crazy in February! Just open the MN MLS and search away with many of the same tools that real estate agents have.
A large number of private home owners sit at home selling property every day. They sell homes to public auctions and other individuals who are looking for a nice house to move into. The thought that some companies are into home buying is great, especially for people who are looking for their own home to purchase. Real estate agents put their houses and lands online for easier viewing. They find that more and more people are turning to the internet for all of their housing needs. Whether people are looking to rent, buy or sell, the internet is the best source for information.
100 Simple Items to Help You Sell Your House
I received an email from the author of this great post. They named it 100 Simple Hacks That Can Help You Sell Your Home. Most people don’t really know what a “Hack” is. It could be defined as short cut or unconventional way to do something.
Regardless of the name of the article, it is a great post. Read it here.
MLS Short Sale Status Codes
A frequent reader on my Minnesota Investment Real Estate blog asked a great question the other day and I figured that I would answer it here. He asked:
I’m seeing the following status on the MLS listings. It would be interesting to have an explanation of why one is chosen vs another. Some are obvious but some are murky.
Lender Owned – Obvious
Potential Short Sale – Does this mean the owner “might” be underwater?
Another says “In Foreclosure” Potential Short Sale – Does this mean the Sheriff sale was done and we’re in redemption?
I thought there were a couple more variations on the “short sale” that I’ve seen and was curious if there was a way to tell if someone has maybe just stopped paying their payment vs they have a sheriff sale scheduled etc.
Great question! I guess we in the business just assume that everyone knows what we are talking about. Here is my best attempt to try and decipher and explain what is going on.
- Lender owned, REO, HUD property all mean the same thing. These are homes that have already gone through the entire foreclosure process and are now owned by the bank.
- Potential short sale is a situation where the seller may be right on the edge of being in short sale territory, depending upon what the house sells for. Let’s say that a seller owes $100,000 on the property. Add in $6000 for commissions and maybe another $3000 for closing costs and misc taxes and assessments. That totals $109,000 the seller needs to walk away without taking any money out of his pocket to make the house go away. Maybe the home is priced at $112,000 right now. You may see “potential short sale” on the MLS listing, because if the buyer asks for a price decrease or even $3000 in seller paid closing costs, the seller will be upside down. Now truthfully, as a CDPE, I would never go through the process of a short sale for a couple thousand dollars so the gap would need to be wider.
- In foreclosure/potential short sale is again the potential of a short sale if the offer is low enough, but here they are telling you that the seller is already in foreclosure. Typically this means that the sheriff sale has been scheduled or has occurred (most likely occurred). This gives the buyer more information that time is running out to get this deal done. It also serves to disclose to any potential buyer that this deal may not close if time runs out (thereby reducing the risk that the buyer is upset if/when it does not close).
- Subject to 3rd party approval is another code term for short sale.
Where this mostly affect you as the buyer is how and what you are going to offer for the property. If a home is in foreclosure and a potential short sale, you need to work fast and hard to get your offer in, but the bank may simply refuse to accept anything but a full priced offer (or may refuse all offers after the sheriff sale).
There are not many other short sale variations that you see on the MN MLS. When in doubt you should ask your agent or the listing agent to clarify.
NorthstarMLS Login Will Change to NRSD ID
Starting in the beginning of March, the Minnesota MLS will be changing from using their existing 7 digit log on number to using their 9 digit NRDS ID, which is assigned for life from the National Association of Realtors. This will help as your NRDS number never changes regardless of what brokerage you are with or even if you let your real estate license expire for a time and then reactivate it. This will also cut down on the numbers that we all have to remember.
Additionally, by using this number, any changes at the State, Local, or National level will instantly be reflected because there is one database that drives all these systems, versus paperwork floating around and eventually getting updated to the various levels.