INVESTORS Pre-Foreclosures | Foreclosures & REO | Short Sales

Greetings!

   I hope the links and info found here will help you as an Investor, or to get you started in Real Estate Investing.... by learning what to do next with care and forethought.  We are currently working with investors from Tacoma & Seattle Washington to San Louis Obispo, California and from South Carolina to one in American Samoa. I will try to not be too long winded and will work on this site to organize it better for faster reference. To start off ...see the FAQ link. I will share some emails from clients, who had questions that many 1st time investors have had, with my answer below each.

 Investor Facts - You may or may not know some of these already

• Buyer/Investor Fees & Commissions. You will not pay a Real Estate Agent or Broker any fee or commission in most cases for helping you to find a good investment property. Sellers generally pay all RE Agency commissions and fees to sell their home or property with very few exceptions. This includes your Buyers Agent. - An exception may happen when a property is a Bank Owned (REO) property, is in a Short Sale classification or is a pre-Foreclosure property. Then, if the seller, sellers agent or Lien Holder demands that me as your Buyers Agent take a fee less than 3% in order to accept a lower offer, the buyer will agree to compensate me as their agent the difference, so that 3% is achieved. This can be great for the buyer in that they will be able to make a great deal on a purchase, and with no harm to their agent. - Buyers are asked to sign a Buyers Agency Agreement to protect their agent from such a loss.
   
• Free Auto-mailer Services are good. Unlike many other agents who fear loss of control or think that they will loose a buyer, I will be glad to put you on an automatic MLS-mailer that will simply automatically email you new listings that are tailored to suit your search criteria. Plus I have my own areas of searching for deals that I keep to myself. Buyers & Investors are asked to sign a Buyers Agency Agreement - The main difference between a buyer and an investor is very little, as a buyer is investing in real property. Typically I create a difference in that some investor-buyers may be acting on behalf of another person or entity such as an investment group or organization.
   
• Have a Team. As an investor you need to shave costs to a bare minimum... right? Ok then, since I also do investing (4 homes and a duplex bought by me in 2007 alone) you can be assured that I have a team of people helping and working for me. No man is an island. Now, because you are my client and allow me to make my little 2-3% on an average deal.... I am happy to share my team resources with you.
   
• Funding a purchase. Always use OPM... Other Peoples Money, whenever possible and if it pencils out to do so. If you have 20% capitol to put down plus available cash reserves to invest in repair/upgrade costs..., of course that is a good thing. Especially if you will be keeping the property long term as a rental/investment. But even if you do have that ready cash, think about leveraging yourself to use borrowed money on a short term basis if you are Flipping a property. What is the actual real costs in terms of loan costs and interest associated with borrowing lets say $40,000 over a 90-120 day period? Your real/ready cash reserves are your safety net. - There is a lot more to this, but I have a Banker who assists me whenever I need that type of advice... and he does not always get a loan out of it. Yes, he is part of my team.
   
• Maintenance and repair costs. Finding a reliable and honest repairman who can do any and all phases of a remodel or several pro's who can collectively do it all is imperative. All of your profits and go right down the drain with this issue alone. Yes, I have these guys on my team.
   
• Contingency plans. Any strategist or planner will always tell you to have a back-up plan, just in case of errors or mis-calculations. It happens to the best of us. I had a major water pipe burst on a flip I was doing... a nice view property, on a weekend. By the time we found out about it the damage was done and I lost my shirt on that deal in the end. Hard money borrowed and no insurance..., this was back in the day before I had a mentor.
   
• ...more ideas and thoughts to be added here.., as time permits. Good luck hunting and remember what an old wise Indian once said to his son on his very first hunting trip; "My son, shoot for the heart and don't shoot anything that you will not or can not eat yourself or bring back to the camp!"
  
  Some investors aim too high and some try to take down a larger kill than they can handle.
  
  Side note - When Investors are ready to sell:
   
• Sellers, Negotiate a small fee. If you are a seller, you are in the drivers seat. Your main agent who found you the property you are now about to sell may be in line to get the listing to sell your home or property. Since your agent did make a fee when he/she sold you the property of perhaps 3% on average, hopefully he or she will be willing to at least shave 1% or maybe a bit more off the listing fee for LOC, Listing Office Commission. Some agents will get very irate, upset and mad at hearing this because...well, its "their" money we are talking about and its like touching their eyeball so to speak. In reality, its NOT their money. Its the property owners money and they should be very happy to get the listing...period. If for instance I made 3% on a split to help my client/buyer get a property, then it would seem good to me to assist my client/seller now to make their profit by keeping my listing end down to say 1.5% on average. The largest commission/fee that should be offered is to the "Selling Agent" or SOC, Selling Office Commission... on average lets say may be 3% although some aggressive sellers have been offering 4% and I have seen 5% in order to attract "Buyers Agents" who are looking for a home for their buyer/client. After all...., who is the most important person involved in selling your property..? Its the Buyer and the person who brought you that  buyer, so it would make sense that a seller may wish to offer their listing agent 1.5% and the buyers agent maybe 4% for a total of 5.5%. What do you think?

I do not have to reinvent the wheel.
Here are some articles, tips and advice that I liked with due credit given:

1. 3 ways you can go broke in real estate - By Jeff Schnepper - Trust me, you can not only go broke, but you can actually pay taxes as you do it. Let me show you three ways you can get creamed and suggest some strategies to limit your risk ...more.
    
2. Turn a profit on rising rents - By Harry Domash - It looks like the axiom that says, "For every action, there's a reaction," applies to the housing market. Although new home sales appear to be falling off a cliff ....more.
    
3. How to find good investment property - By Liz Pulliam Weston - The idea of owning rental real estate seems to be gaining popularity as investors tire of the swoops and swoons of the stock market. ...more.
    

4. Flipping Houses Works in ANY Market! - by William Bronchick, JD - For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a "housing bubble" that was sure to burst as all bubbles do. ...more.
    

5. Field Guide to Investing in Real Estate - By Dave Shumaker, Information Specialist - Find out how to get started, investing with IRAs, tips from NAR, real estate as a retirement tool, information on rental homes, buying tax liens, real estate partnerships and much more ....more.

  I work personally with new and seasoned investors daily, Contact me if you have a question or need a good Licensed Real Estate Agent in Pierce or King County of Washington State. Its one on one help to find the right deal for you. Buyers/Investors are asked to sign a Buyers Agency Agreement -

  Added thoughts and tips

• Investing & Flipping:
   www.creonline.com/flipping-real-estate.html

• Start with the FAQ - questions & answers.

• "First steps", article by TCN News

• Become a Real Estate Professional?

• A&E Investment Article

• Why hire a Real Estate Professional..?