Archive for November, 2012

Nov 07

Flipping Houses: Investors Being Regulated out of Business?

It is understandable that some real estate investors feel like they are under attack and are being regulated out of
business but is that really the case or is it the short cuts they are taking that is causing them all the trouble?

The government has clearly been on a mission to recoup all the money it can from everyone in the mortgage and real estate
business, especially ahead of the 2012 presidential election. This has resulted in endless new regulations and witch hunts and it                               clearly isn’t over yet.

Not even the giant Wells Fargo or Bank of America and all of their mighty lawyers seem to be safe, even though the
penalties dealt out to them are barely a slap on the wrist. So it’s the small real estate investors who are really feeling the pinch.

Federal agencies are rolling out whistle blower hotlines and tracking parties to real estate transactions to see who is
flipping properties, mortgage credit is tough to come by and what used to appear legal is now landing investors in jail as banks get                          greedy and crackdown on flipping short sales.

‘Stated income’ went the way of the dinosaurs taking plenty down with it and now investors are being accused of ‘flopping’
real estate by driving down home values before flipping them. Who knows what will be next.

The bottom line is that it is always smart to stay well on the right side of the grey line in anticipation of future changes.

There is plenty of money to be made from flipping houses the right way; you can even do legitimate double closings on
the same day for essentially no money down deals, providing both transactions are fully funded. Use transactional funding                                              or hard money if you don’t have your own.

Real estate investors are still critically needed and are who is really bringing market back and will continue to be needed
to keep recycling homes. Just stay on the right side of the law and recognize that despite who tries to get you into overly                                      creative deals, investors are the first to get thrown under the bus when things go wrong


Nov 06

Cashing in on Turkey Day for Real Estate Pros

Thanksgiving might be one of the most looked forward to days of the year for great eats but
it is also one of the best marketing opportunities for real estate professionals too…

Whether you are a real estate agent, mortgage broker or real estate investor you should
already have a marketing plan for Thanksgiving in the works. If not, it’s time to step on the gas,                                                                                    unless you want the competition stepping on your market share and connections.

So how should you be working to cash in on this occasion?

Thanksgiving is one of the best times for real estate networking. Inviting prospects and
potential strategic partners to luncheons and dinners is a great start.
However, helping others throw them and sponsoring them can be a great way to
cast a wider net. This makes for a much warmer atmosphere and relaxed setting
for connecting and building relationships.

The internet should not be overlooked either though. Occasions like Thanksgiving
find prospects much more receptive to themed marketing messages. In fact this
is when ‘junk mail’ ceases to become junk, because it is filling a need. So
blog, turn up your social networking and get those extra emails out.

Don’t underestimate Thanksgiving Day dinner as a great time to round up a few more
deals over pumpkin pie either. The easiest deals always come from those you
already know and nothing burns worse than finding out a family member of close
friend chose to do business someone else than you because they didn’t realize
you could help.

This is also an excellent opportunity for building more loyalty among staff and
boosting their productivity for the end of year push. Buy them turkeys or take
the entire team out for dinner to strengthen bonds and show appreciation.

Finally, don’t forget to actually take a few hours off to recharge, be grateful and enjoy
the whole reason you are in this business anyway.