Today’s quote about self improvement is from a Snapple drink cap.  It’s their “Real Fact” #828.  I love their fun little sayings.

Snapple drink cap says:

“Every hour more than 1 Billion cells must be replaced”

I love it, however even better I would add

Ned Carey says:

“Every hour you have a billion chances to improve yourself”

The guys in the video below are fun to watch and high energy.  They are of the mind that modifications only prolong the housing troubles. They say more foreclosures short run, will get us back to a stable market faster.

So the question for you is “Should banks increase foreclosures and increase the short term housing market problems? Or should they “Extend and Pretend” at the risk of keeping housing in trouble for years to come? Leave a comment with your ideas.

 Are More Foreclosures Coming?

Whatever your point of view, the indication is that buying bank owned properties will will be  a key opportunity for some time to come.  Learn the best strategies to buy Bank Owned Property Here.
More about Bank owned properties and REO investing here

Happy investing – Ned

How does the mortgage holder get wiped out for a small amount of taxes.?

Because those are the rules!  It may not see fair but I explain in the video below

Here is a fun quote from one of Ray Croc’s business associates to Ray about opening a McDonalds office in California.

Don’t you like Sunshine Art?

Not if I can get Moonshine, Ray.

Ray Croc and Art Trygg

Hey not everything in business needs to be serious.

From the book Grinding It Out by Ray Croc

Keep Laughing – Ned

Is Another Wave of Foreclosures Coming?

Or is it a Tsunami coming? Rick Sharga from RealtyTrack.com says that “Banks own about 900,000 houses but only 300,000 are on the market!”  That means the real supply of REOs is triple what we are seeing today.  His prediction; 4-6 million homes will hit the market in the next two years.  That is a lot of REOs. (REO stands for Real Estate Owned by the bank)

Just Read Some of the Recent Foreclosure Headlines

• More Foreclosures Coming
• Foreclosures just keep coming
• Foreclosures, foreclosures, foreclosures  . . .They just keep coming
• Buzz: Wave of foreclosures coming
• Coming soon to your neighborhood — more foreclosed homes!

What about Baltimore REOs?

I did a quick check of the MLS.  In July, 79 out of 312 properties sold were listed as foreclosures.  An additional 24 were listed as potential short sales. Added together that means one third of the sales are properties with lender distress. There are 304 active listings marked as foreclosures in Baltimore City.

Why you need to learn about REOs

• The Best strategy for investing right now is buying bank properties.
• Bank owned properties can be wholesaled with little of your own money.
• There is an incredible backlog or properties in financial distress
• REOs will continue to be a key strategy for the foreseeable future
• There are rumors of  a HUD Flood later this month

Learn to buy REOs Here

Who is the expert in buying Bank owned property?

As far as I am concerned it is Steph Davis.  Stephani  is a true rags to riches story and her favorite strategy is wholesaling bank owned homes.    Must Know Investing website called Steph Davis one of “Best and Brightest Women in Real Estate Investing”.  If you want to learn from the best buy her E-book here.

Here is an example of what you will learn from Steph

I recommend Steph’s book but more importantly people who I admire and respect like Steve Cook recommend it also.  If you want the best program on buying bank owned property click here to buy it now.

If you are still not convinced

Average wholesale deal $2-7,000,  the price is only$47.  Even with a small deal, that is a 4000% return on your investment.

Steph said I could offer you a 30 day money back guarantee.  You have nothing to lose and tens of thousands of dollars to gain.
Buy it Now

Happy investing – +Ned Carey

Please save this house!

Regular readers of this site know I am an active tax lien investor.  The property below is one I acquired via the tax lien foreclosure process.

Shame on me because it had a roof leak which I neglected.  One leak became two, then three, etc.  Now I am a motivated seller.  So motivated I have priced the property below at under $4,000 per unit!

Take advantage of my negligence and buy the property below.  It deserves an owner who will turn it into the cash cow it deserves to be.

2 Unit Fixer Upper- Dirt Cheap

    Only $7,800 for a two unit building. 

That’s like getting 2 units for the price of one.

Area rents for two bedroom units are conservatively $600-800. That’s up to $1,600 per month.  Rentometer says rents are even higher.  They show three, 2 bedroom properties at $850-1200, all within .15 miles

About the Property

3920 Norfolk Ave., Baltimore, MD 21216

Only $7800! – Call 301-332-5496

• Needs significant renovation
• Needs a new roof
• Needs ceiling and drywall repairs

• Under $4,000 per unit!
  
• Separate meters
• two water heaters
• Two furnaces
• 1st floor unit has finished basement access.
• Top unit could be three bedroom
• Option easily converted to 4 bedroom single unit.

To see the condition check out the video

* * * Call Now * * *

Ned Carey

Crab Properties LLC

301-332-5496

Terms of Sale: “As Is”, no contingencies, Use our contract, $1000 deposit. Ground rent if any to be determined by buyer. A real estate agent or agents may have a financial interest in this property.

Disclaimer: Any suggested repairs, Repair estimates, suggested rents, cash flows, Market Value or after repair value are our opinions only. They are provided for you to be able to pre-screen this offer. Information above is believed accurate but is not guaranteed. Please do your own due diligence. Seller is a real estate licensee in the State of Maryland.

Trademarks and Copyrights: This site is copyright Crab Properties, LLC 2011. “Back of the envelope repair estimate” and the image of an envelope with text representing estimated repairs are both trademarks of Crab Properties, LLC.

Tenant Landlord Handbook

Baltimore Neighborhoods inc has released their 2011 version of their Guide to Local, State and Federal Laws, Governing Tenant-Landlord Relations.  This is an indispensable guide if you are a landlord in Maryland.

Their guides summarize and explain in simple terms, Maryland and local tenant landlord regulations.  A PDF flyer and order form are available here BNI Manuals.  The price goes up in October so order now.  They also offer local  supplements for various jurisdictions like Baltimore City.  If you click through to their form you will see they also offer leases and a tenant application and various other items useful to Maryland Landlords.

Who Is Baltimore Neighborhoods Inc.?

If you are a landlord and are not familiar with BNI, it is time to learn about them.  This is from their website

BNI’S MISSION…

BNI promotes justice in housing for all people in the State of Maryland through fair housing and tenant-landlord programs and public information activities.

BNI’s VISION…

BNI is committed to helping shape a more just society by ensuring equal opportunities in housing throughout the State of Maryland.  BNI promotes citizens living together as good neighbors without regard to race, color, religion, sex, age, national origin, marital status, physical or mental disability, or sexual orientation.

It would be tempting to say based on their vision and mission that they are a tenant advocacy organization. This often implies anti landlord.  In Baltimore Neighborhood Inc.’s case they recognize good tenant treatment starts with Landlord education.

Their manuals are an excellent example.  They are also willing to answer many of your land lording questions over the phone for free.  They are an excellent resource to keep you out of trouble.  Bookmark their website Baltimore Neighborhoods Inc.  They have lots of information there on fair housing and tenant landlord law.

Happy Land lording,

Ned

What is Seasoning?

One of the issues we used to see with financing was “seasoning”.  Lenders wouldn’t loan on the resale of a  property that was just recently purchased.  The purpose was to avoid “fraudulent flipping.”  Of course it didn’t stop fraud in just  made it tough for legitimate real estate investors to rehab and flip houses quickly.

A New Type of Bank Seasoning

Well we are seeing something similar in today’s market.  Some banks are adding seasoning requirements to  REO or  short sales properties.  The banks are requiring the property be held for a period, typically 90 days, before being resold.  I guess they figure if someone is going to make a profit it should be them.

Banks are requiring Seasoning affidavits

Here is the text from an example by GMAC

Property flips occur when ownership of one property changes several times in a brief
period of time. Property flipping becomes illegal and a fraud for profit scheme when
a home is purchased and resold within a short time frame at an artificially inflated
value. For the purposes of this statement, a short time frame is defined as a period
extending ninety (90) days from the date of the short sale transaction.

BUYER represents, along with BUYER real estate agent, that I/WE are not involved
in a for profit scheme to flip the property and that there are no current agreements,
written or otherwise, to immediately re-sell the Property at a higher price, and that no
transactions of this nature will take place within ninety (90) days of the date of
closing on the short sale transaction.

I/WE represent that there are no relationships between any parties involved in the
transaction, including BUYER, SELLER, FINANCING COMPANY OR
INSTITUTION, NEGOTIATOR, or REAL ESTATE AGENT.

I/WE understand that any information associated with the short sale, may be made
available to federal, state, and/or local law enforcement agencies for such action
within their jurisdiction as they deem appropriate if illegality related to this short sale
is discovered.

Bank of America sues Investor

I heard a story from an attorney, that Bank of America sued an investor because he had quickly resold a property for a profit.  (Sorry I can’t confirm this because if you search Bank of America and lawsuit there are just to many responses to filter through).  Their basis was because the investor  defrauded the bank on what the property was worth.  Oh come on now, Bank of America has all kinds or resources at it’s disposal.  They can click a button on their computer and get a automated valuation model in about 30 seconds.  They have real estate agents which are essentially on staff.

If they wanted to know the condition of the property they could get off their fat asses and actually go look at  the thing.  In most cases a two minute walk through would tell them the overall condition of the house.

This is laughable on the part of banks.  Basically only investors buy bank owned properties.  Of course the investor expects to sell the property for a profit.  That is why they buy it in the first place.  Banks are proving once again they know nothing about real estate or business.

Fortunately this isn’t happening on every transaction.  It’s just another roadblock that we have to get around.  It shouldn’t stop you, but is something you should know about so that you can structure your deal properly

Happy investing,

Ned

It’s only too late if you don’t start now

Barbara Sher – from her book title

Many people lament what they could have done, without realizing they can still do it.  Sadly the same things that kept them from doing it before keep them from doing it now.  Yet it is never to late to change and have a better life.

I haven’t read the book but it sounds interesting.  Buy it from Amazon and let me know what you think.

More great quotes here.

Happy investing

Ned

How You Say it Makes All the Difference

The short video below shows the incredible power of words.  How you say something can make as much difference as what you say.  Often you can gradually get someone to come around to your point of view by being creative in how you present your message.  Politicians were the first to call it “spin”.  The funny thing is most politicians aren’t very good at it.

The ability to communicate effectively is one of the most important business skills you can have.  Real estate, is a people business. Yes you need to know the numbers but you can’t do a deal without dealing with people; sellers, buyers, agents, lenders etc.  Most real estate deals are made not found. They are negotiated.  The multiple list service doesn’t have  check boxes for positive cash flow, owner financing, or no money down. 

Five Keys to Communicating Effectively

• Think about how to say it. The most natural sales people spend a LOT of  time thinking about and rehearsing what they say. That is exactly why they sound natural.
• Study sales, read some books or take some courses on selling.
• Using fewer words is usually better than more words
• Talk in terms of benefits for the other person. Use the words you, your, and yours; more than I, me, or mine
• Read the quotes on my blog. You’ll learn how some of the greatest minds get their point across.

One Minute and  45 Seconds on the Power of Words

A beautiful and powerful message.  Let me know what you think by leaving a comment or share it via your favorite social network.

Happy investing,

Ned