Baltimore Real Estate Investing Blog

Ned Carey's Comments on Real Estate Investing, Business and Finance

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Tax Sale Wipes Out Mortgage

August 29th, 2011 · 12 Comments

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

→ 12 CommentsTags: real estate · Tax Liens

Today’s Quote

August 21st, 2011 · Click here to leave a comment

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

→ Add a Comment HereTags: Humor · Quotes

What Is the Best Strategy for Today’s Market?

August 17th, 2011 · 3 Comments

Is Another Wave of Foreclosures Coming?Flip This REO!

Or is it a Tsunami coming? Rick Sharga from 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


The 2012 version includes free bonuses.  One of these bonuses is an item I regularly get asked about.  Missing this bonus is something that holds back many new investors.


Happy investing – +Ned Carey

→ 3 CommentsTags: Advanced tips · Beginner · real estate

Take Advantage of My Mistake.

August 8th, 2011 · Click here to leave a comment

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



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.

→ Add a Comment HereTags: real estate

Landlord Tenant Handbook

July 30th, 2011 · Click here to leave a comment

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


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,


→ Add a Comment HereTags: Books · Landlording · Law and Regulations · real estate

Seasoning it’s not just for food any more

July 23rd, 2011 · 11 Comments

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

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,


→ 11 CommentsTags: real estate

Quote of the Day

July 19th, 2011 · Click here to leave a comment

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



→ Add a Comment HereTags: Books · Quotes · real estate · Success & Wealth Building

How to Say it Better – The Power of Words

July 8th, 2011 · 13 Comments

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,


→ 13 CommentsTags: Business and Finance · real estate · Success & Wealth Building

Promote Your Website and the Google+ Project

July 4th, 2011 · 12 Comments

Google +1 button

Recently Google introduced their 1+ button. This was so users could easily tell others that they liked a site. You can see  a white or blue box, with a “+1” in it, just above this post and below the title.  You can also click next to the listing in the search results.  It is white if you have not clicked it and it turns blue after you click it.  Go ahead and click it now to see what happens.  OK nothing earth shattering happens but it might help my site rank a little better;  so thanks.

Only click once

I would love to have lots of Plus One clicks for my site. You can only click it once however. If you  click the button a second time you are un-liking it.  Each time you click you either turn it on or off.  Make sure it is blue, that means you like it.

Here is a Short Video on Google Plus One Button

If you want more information, here is a Google Plus One Button info page.

Put the +1 Button on Your Site

I see very few sites that have the Plus One button yet.  Even  many of the  blogs about blogging don’t have it yet.  Some sites that have written about it,  I had to search hard to find the button to give them credit for their post.  Hint – Mine is just below the post title.

If you want to promote your real estate site, blog or any other site you can add the Plus One button. You need to know just a tiny bit about coding but if you run a blog you probably already know enough to install it.    Get the Plus One button here.

How Will Google Use This Information?

There has been much speculation how the new button would be used by Google.  Would Google use this to help rank where sites show up in search results? It seems like spammers would jump on that to scam the system.  Leo Dimilo who writes about internet marketing strategies, recently wrote a post for the Famous Bloggers site.  Leo suggested which +1 buttons you click will help Google customize your personalized search results.

Now it’s a social network

Well now we know at least part of how Google will use the button.  It was only the first step in the roll out of a new Social Marketing Network.  On June 28 Google posted on there blog describing their new Google + Project.

Here is a brief overview video

There are a LOT of cool features; too much to fully describe here. You can check out the Google + Project blog page here. Now for the bad news, according to Google The Google+ Project is “in a limited field trial”.  But don’t let that stop you from clicking the +1 button now

Happy investing, Marketing, Socializing


PS go ahead and +1 or Stumble, Digg, Buzz, Like or Tweet Now

→ 12 CommentsTags: Blogging

Baltimore City Tax Sale Results

June 27th, 2011 · Click here to leave a comment

I promised to do a write up on the results of the Baltimore City sale.  My writing time seem short these days and analyzing the sale results can take some time.  So let me just refer you to an excellent write up by the Dominion Group. – Balt City 2011 Tax Lien Sale Results! Who Bought What?!

There is no point in reinventing the wheel. They wrote it up better than I could have.

Happy investing – Ned

→ Add a Comment HereTags: real estate

Excited But Tired

May 18th, 2011 · 16 Comments

Now I Can Relax

Well it is 11:30 PM and I can relax.  Last year I was up all night entering bids so this is a welcome relief.  I just finished uploading 1200 bids for tomorrow’s Baltimore City Tax Sale.   Thanks to a joint venture with other investors, we have a pool of money that is 4-5 times what I have bid in the past, so this is significantly more bids  than I have ever done .  With the help of some interns and my partner we have inspected over 1500 properties.

A New Strategy

Working with a bigger pile of money has led to a new strategy.  In the past I have mainly gone after vacant houses, thinking this would increase the odds of getting a property.  I have hit a lot of home runs with that strategy.  Having more money to place means we must buy more liens. This has led to less stringent inspections and more bids on good homes.

Baltimore’s Tax Sale

Baltimore City’s tax sale is in 8 batches tomorrow all ending one hour apart starting at 9:00 AM.  This year 10,800 properties are going into the sale.  That is a couple of thousand less than last year.  Perhaps that is a sign the economy is getting better.

If you are bidding tomorrow good luck. If not wish me luck!


→ 16 CommentsTags: Tax Liens

Anne Arundel County Tax Sale 2011

May 17th, 2011 · 9 Comments

Flag for Anne Arundel County tax saleThe Anne Arundel County Tax Sale is coming up soon.  The date is June 7th, 2011.  As many Maryland counties have done, their auction will be online this year.  The website is Anne Arundel County Tax  Sale.  Registration is now open and you must register by June 4 at 4:30 PM.

A list of properties is available now and bids may be submitted starting on June 1, 2011

Good luck and remember  – don’t bid too high!




→ 9 CommentsTags: real estate · Tax Liens

Quote of the Day

May 15th, 2011 · 2 Comments

The stronger your emotions, the more likely it is you will make a wrong choice.

Richard Flint

I like Richard Flint.  He wrote a book called Behavior Never Lies.  Just the title says it all.

→ 2 CommentsTags: Quotes

2011 Baltimore County Tax Auction

May 13th, 2011 · Click here to leave a comment

Baltimore County Tax Sale

Baltimore County Seal for the tax sale

The Baltimore County Tax Sale is scheduled for June 2, 2011.   For the second year it will be held online at the Baltimore County Tax Sale Website.  To register you need to have a bank account that will accept an ACH debit.  It will cost $100 to register for the sale and registration must be completed by May 25, 2011 at 4:00 PM.

2900 Tax Sale Properties Listed

The tax sale  list has approximately 2900 properties but I suspect that will be a much smaller number by the time of the sale.  The sale will be held in four batches each ending  one hour apart starting at 10:00 AM the day of the tax sale.

Good Luck and remember the biggest risk in tax sale is bidding to high! !


→ Add a Comment HereTags: real estate · Tax Liens

What Is Maryland’s Tax Sale High Bid Premium?

May 8th, 2011 · 10 Comments

Maryland’s High Bid Premium

Maryland uses a complicated system for their tax sale bidding called the “High Bid Premium” method.  This formula determines how much you pay the day of the auction as well as what your effective interest rate is.

High Bid Premium Determines Three key Amounts

Your bid at the Baltimore City Tax sale or most other Maryland tax auctions determines three key things.

  1. How much you will pay for the property if you foreclose and get the property. This amount is only due, if and when a foreclosure is complete.
  2. The high bid premium, this premium is added to the lien amount and due the day of the sale
  3. Your effective interest. You only earn interest on the lien amount NOT the high bid premium.

The High Bid Premium Formula

The formula is, 20% of the amount of your bid, over 40% of the assessed value of the property equals the High bid premium.  If the bid is below 40% of the assessed value there is no high bid premium.  Presuming the bid is above 40% the formula can be expressed as shown here.

Bid amount – (Assessed Value X 40%) X 20%  =  High Bid Premium

That’s about as clear as mud, eh?

High Bid Premium Examples

Assessment $100,000
Bid amount $50,000
40% of assessment = $40,000
$50,000 – $40,000 = $10,000
$10,000 X 20% = $2,000 High Bid Premium

Assessment $155,000
Bid amount $70,000
40% of assessment = $62,000
$69,000 – $62,000 = $7,000
$7,000 X 20% = $1,400 High Bid Premium

Assessment $60,000
Bid amount $6,500
40% of assessment = $24,000
No High Bid Premium Due

High Bid Premium Graph

High Bid Premium drawing green copy

How the high bid premium affects your Rate of Return

The high bid premium is added to the lien amount to get the amount that is due the day of the sale.  You earn interest only on the lien amount, NOT on the high bid premium.  So a $500 lien with a $1,000 high bid premium reduces your effective return to 6%.  On a $5,000 lien, that same $1,000 high bid premium would make your effective interest rate approximately  16.4%.  That is a big difference. You need to understand the rules and how they affect you when bidding at tax sale.

You Get the High Bid Premium Back

When the lien is paid off (redeemed) you will get your lien amount, interest on the lien, and the high bid premium will be returned.  If you have a successful foreclosure the high bid premium goes toward the price you bid for the property.  However if the lien does not redeem and you choose not to foreclose the high bid premium is lost.

Good luck and don’t bid too high.


→ 10 CommentsTags: real estate · Tax Liens