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Jon Porrey's Blog

By Jon Porrey | Agent in Grand Rapids, MI
  • Insurance, How to get it for Vacant Homes!

    Posted Under: Foreclosure in Grand Rapids, Home Insurance in Grand Rapids, Investment Properties in Grand Rapids  |  June 4, 2012 2:42 AM  |  265 views  |  No comments

    Getting House Insurance is One of the biggest challenges that face those who want to buy and sell for profit, foreclosed homes is getting them insured while the investor/buyer is fixing it up to re-sell or flip.

    My wife’s Uncle was an Broker/agent with a number of companies that he represented, but after my 5 or 6th home when I would pay for a year’s policy and then cancel it after about 6 months, started getting ugly with me, making comments like “I hope this one doesn’t burn down!” and such, so I dropped him and went with another agent. Now in the past few years, it has been tougher and tougher to get a policy even on rental properties.

    Unfortunately, a common clause in home policies says that coverage is void on vacant homes – and even if you are short-selling and have already moves you probably won’t realize your home coverage has vanished until it’s too late. According to the Insurance Information Institute (III), most insurers discontinue coverage on a home if it’s unoccupied for over 30 days. Some may allow up to 60 days. What’s the BIG deal? Well, these companies label vacant homes as high risk. Unoccupied homes are more likely to become victims of theft, vandalism, fire and water damage.“Having no one in the house can leave potential problems undetected for a long period of time,” says Michael Barry, spokesperson for the Insurance Information Institute. “Who knows when someone will report a leak in the basement or the electrical problem that can lead to a fire and, depending on the neighborhood, there’s the potential for squatters.” This quote is one reason why I shut off the water at the meter or well, or even turn off power when I am not there and working on the property. 

    Vacancy insurance

    If you want to cover your vacant home against the same perils that your standard policy would cover, you’ll need to purchase “vacancy insurance.” This would include theft, burglary and vandalism. However, not all insurance companies sell it.

    Foremost Insurance, which specializes in selling vacancy coverage, offers a policy that will cover you for fire, wind, and hail in addition to “vandalism and malicious mischief.” Upon request, the policy could also include liability coverage in the event someone is injured on your property. All policies vary by state.

    Foremost often insures homes that are empty because they are for sale, being held in the name of an estate or under renovation. It accepts vacant homes valued up to $1 million and there is no restriction on the age of the home. Policies can be purchased on an annual basis and cancelled any time.

    But vacancy insurance can be expensive – expect much higher than premiums than for a standard policy. Loretta Worters, spokesperson for III, says that you could pay 50 or 60 percent more for a policy on an unoccupied home as compared to a regular homeowners policy. However, you may be able to reduce your premium slightly by arranging for someone to check on your home regularly, she adds. The policy price will also depend on whether a home has a central alarm system, deadbolt locks and/or smoke detectors. Insurers also may assess whether a policyholder has winterized the home to protect plumbing fixtures from freezing temperatures, and how long the house will be vacant, she says.

    Saving money by renting out

    When I dumped my wife’s uncle, I went to an old school friend and asked his advice. He told me that if I put a “FOR RENT” sign out in front, the company he represented might give me a better rate, in lieu of a “prospective” tenant.This though means that you will have to buy landlord policy that generally costs about 25 percent more than a standard home policy because landlords need more coverage than a typical homeowner, according to III. But that’s still much less expensive than buying a vacancy policy – and maybe you will turn it into a rental property


    How will your insurer know?

    Most of these companies do not need to spy on you to determine if your home has been left vacant. In most cases, it will become obvious when you make the claim. For example, if your home was vandalized by squatters (who made it their own home for a few weeks), that will appear in a police report. You may tell your Agent/company that you’ve only been away for 29 days (to allude the 30 day vacancy deadline), but if police question your neighbors who say you’ve been gone for months, you may find your claim denied – and policy terminated. It’s always best to be honest with your insurance company.

    All in all, as Smoky Robinson used to sing, “You’d better Shop Around!”

    www.how-to-buy-sell-foreclosures.com/insurance/html


  • Manufactured Homes- What are they and Should you buy one?

    Posted Under: Home Buying in Grand Rapids, Foreclosure in Grand Rapids, Rentals in Grand Rapids  |  November 30, 2011 4:49 AM  |  451 views  |  No comments

    Perhaps you live in a part of the country where mobile homes are plentiful and you have thought about buying a mobile home to either rent out, live in or flip for a profit.

    First of all let’s define Manufactured, Modular and Mobile homes and see the difference in them.

    Trailer- this is what you call something that you hook up to your car or truck and use it for hauling stuff around.

    Mobile Home- Also great for Hitching to your car or truck, but with these you go camping, hunting, fishing, traveling, whatever, but it’s only temporary for dwelling as you wouldn’t want to live full time in one.

    Manufactured Home (Single-wides or Double-wides)- Before 1976, traditionally, this is what you would call a “mobile home”.  They are certainly built better now than they were in the past, but are not easily hauled around anymore.  The test of whether you would call it manufacture or modular is this: did it come to the site on wheels that had to be yanked off?  Then it’s manufactured. Doesn’t matter if it’s lifted onto a basement, crawl space or just anchored down by ties, it’s manufactured.   So the major difference between Mobile and Modular is that a Mobile home is built on a permanent chassis with either a steel floor or one to four steel I-beams for support.  (four beams for double-wides) Since 1976 these types of homes have been required to meet HUD standards and will have a HUD DATA PLATE somewhere on the home and a data sheet somewhere inside the dwelling. Personally I have never considered a “mobile” type Manufactured home as a possibility for buying, selling, or renting out.  Now some have made money doing so, but this practice is fraught with dangers and liabilities.  First of all, when you buy a “mobile” type Manufactured home, history tells us that its value WILL go down.  So if you want to take a chance, you may be able to buy, fix-up and sell this type of home, but the profits will not end of being as large as you would like.

     

    Modular Home- This type of home is yes, built at a factory but it comes to the site on the bed of trucks, usually more than one or two and is lifted and installed together with a crane. Even though we might call this a manufactured home as it is built elsewhere, Modular homes meet and usually exceed HUD standards for residential dwellings and the codes of the individual states where they may be put in place.  Thus when put together they usually cannot be pulled apart or divided into pieces put on wheels again and hauled off to another site.  Today with Drywall, Ceramic Tile, Wood Floors etc. these homes are rivaling stick-built homes in quality and durability. Many times especially with newer improvements in modular type Homes, it is very difficult to identify whether it is modular or stick built.

    Now on with the count-down! And this is going to be easy!

    Should I or Shouldn’t I?

    MOBILE-Manufactured Homes- first of all, even if you are tempted, and the property is on a piece of land with either a poured crawl space or even a basement, don’t even look at anything built before 1994.  Since that year codes have required sheathing, Celotex type if your prefer, which was nonexistent with older models.  Since that year also HUD code has required manufacturers to use steel strapping, or a combination of steel strapping and structural rated wall sheathing for securing the exterior wall framing to the floor and roof systems.  But my recommendation is stay away, very, very far away from this type of manufactured home.

    Modular Homes- Those with drywall interiors, full pitched roofing systems that when you stand at street level cannot be identified as any different from stick built dwellings are the only ones that I would deal with.  At least with these there is opportunity for increases in value and not decreases.   I rate them a guarded “BUY” based on condition and location.

     

    Good hunting for those Foreclosures!

    http://www.how-to-buy-sell-foreclosures.com/manufactured-homes.html

  • How to Find Foreclosures without Paying FEES!

    Posted Under: Foreclosure in Grand Rapids  |  November 23, 2011 10:59 AM  |  451 views  |  No comments

     

    Finding foreclosures is fairly easy in depressed markets, but it's also simple to find foreclosures in strong real estate markets. The difference between the two markets is you will find a greater number of foreclosures in fading real estate markets.

     

    Many pre-foreclosure homes that were once offered as short sales end up as foreclosures, which are eventually deeded to the bank. The reason why purchasers may refuse to buy a short sale home could be any of the following:

     

    ·   Sellers stripped foreclosure home's assets and / or vandalized the property.

    ·   Bank refused to accept less than its present mortgage balance.

     

    ·   Buyers passed by the short sale in favor of a hassle-free purchase.

     

    ·   Location of the home and / or neighborhood was undesirable.

     

    ·   Listing was overpriced at mortgaged amount.

     

    ·   Seller did not qualify for a short stile.

     

    Not every foreclosure is a great bargain and some can morph into unexpected nightmares. There are drawbacks to buying foreclosures. Some foreclosed homes are diamonds waiting to be polished. Inexperienced foreclosure buyers might want to hire a real estate agent for guidance and assistance.

     

    Here are Places you can FIND Foreclosures:

    Real Estate Agents

     

    In your Community there are top selling agents who specialize in listing foreclosures. Knowing how to find that person is the key. You need to enter the search values in MLS to bring up all the foreclosures. Consumers do not enjoy direct access to MLS like agents.

     

    You can ask your buyer's agent to search for REOs and when you recognize a listing agent's name over and over, pull up that agent's profile and look at his or her listings. You will probably find a ton of foreclosures at your fingertips this way.

     

    Real Estate Signs

     

    Driving through neighborhoods where you want to buy is another great way to find foreclosures. The riders on the sign posts might say:

     

    ·   Foreclosure

     

    ·   Bank-Owned

     

    ·   Bank Repo

     

    Call the agent's whose name is on the sign and inquire about other foreclosure listings that may be coming on the market. Agents who specialize in foreclosures sometimes wait weeks while bank management approves the list price, so you can get a jump on other buyers by asking about new foreclosures not yet listed.

     

    If you are working with a buyer's agent, you can ask your agent to get this information for you.

     

    Major bank Web sites

     

    Many banks maintain online lists of foreclosed properties. Here are a few national lenders who maintain Web sites of bank-owned properties:

     

    ·    Countrywide

    • Bank of America

     

    ·   Chase Mortqage

     

    •   U S Bank

     

    Asset Management Companies

     

    Some lenders hire an asset management company to handle foreclosures on the lender's behalf.

     

    ·   Wells Fargo uses Premiere Asset Services.

     

    ·   Many subprime mortgage companies use HomeEq Servicing

     

    ·   Keystone Asset Management is a national agency that deals with defaults.

     

    Government Agencies

     

    Some government agencies require you to retain the services of a real estate broker to make an offer to purchase. Others will let you submit offers on your own. Read each site for more information.

     

    ·   HUD - Housing Urban Development foreclosure homes.

     

    ·   Fannie Mae foreclosure homes.

     

    ·   Department of the Treasury - homes seized by the Internal Revenue Service.

     

    •   SBA - Small Business Association , Auction Houses

     

    Auction companies hold huge auctions, sometimes selling as many as 100 homes or more in a single day. While many experts agree that auction companies often get higher prices due to the auction frenzy created among its bidders, sometimes you can find a gem in their inventory.

     

    ·   Real Estate Disposition Corporation

     

    ·   J_P- King

     

    ·   United Country Auction Services

     

    ·   William's & William's

     

    ·   Bid4Assets

     

    Internet Foreclosure Companies

     

    Web-based foreclosure companies charge a fee for providing you with a list of foreclosure properties. They reason that it takes time, trouble and expertise to locate and assemble accurate national foreclosure lists. You may find it is worth it to let these companies search for you: RealtyTrac.com and Foreclosure.com

     

    HOW about this for a Tip:

    If you're in the market to buy a foreclosured house despite all the hassles and long waits associated with buying one, here's a way to find properties in your area that are either in pre-foreclosure or are already owned by a bank.

    ·    Here are the basic steps.

    ·    1. Enter an address at Google maps.

    ·    2. Click on the "More" tab in the top right corner of the map. 3. Select "Real Estate" in the drop-down menu.

    ·     4. On the left side of the page, uncheck "For sale" and check "Foreclosure."

    · The little red dots that then appear on the map are foreclosures that are still on the market. At least in my area, the red dots just seem to be on the blocks where foreclosures are located, with no identifying address information besides the street and links to sites offering more information about the properties with a short-free trial and then for a fee. (The ads on the left side of the page, however, do give the addresses for some of the properties.)

    ·    Still, it's a good starting point for knowing if there are foreclosures in the area you want to buy in. (You could ask your Realtor to determine where the properties are.) The red dots also indicate how widespread the foreclosure problem is in a particular neighborhood.

    ·    http://www.how-to-buy-sell-foreclosures.com/foreclosures-markets-short-sale.html

  • So you Want to be a Landlord, Are you Sure?

    Posted Under: Home Buying in Grand Rapids, Foreclosure in Grand Rapids, Property Q&A in Grand Rapids  |  September 28, 2011 3:16 AM  |  510 views  |  No comments

    Well in this economy and market, many prospective home buyers have left the market and they along with others who have faced an unfortunate foreclosure may be looking for properties to rent until they can get back on their feet.

    Being a landlord can be profitable, especially if you are in a resort area or your properties are located near a college or a university.    It can be a chancy proposition though if you are not educated in rental property ownership or if your personality does not fit with what a landlord has to face and do!  Recently there was a survey and it found the 44% of RPO’s (rental property owners) lost money on their investments.

    Yet if done right the profits, tax advantages and building of equity can allay any problems you have being a RPO.

    What about NOW?

    It’s true that “if they can’t afford to buy, they may be able to afford to rent”.   This means you need to know your market before you jump into the RPO business.  Check out the local rental ads, how many are there? What sort of rents are they asking for, and in what areas? Gauge for yourself how competitive the market for Rental Properties is currently.  Is there a Rental Property Owner’s association in your area? Might be a good idea to check it out, as they keep track of dead beat tenants who try to “play” the eviction game and they can also be a source of good information about the local market for rentals.

    Thus, if the market is inundated with Rentals, it may not be wise to enter the game yet.

    Plan to Make a profit, not just keep EVEN!

    When searching for properties whether foreclosures or owned outright, remember the rule that you begin making your profit by BUYING RIGHT in the first place.  If you want to make money forget the rule I heard when first starting to rent properties.  The other Real Estate people who invested back 10-15 years ago figured that 1% of you purchase price keeps you even.   Yet, you don’t want to be just even, but you want to get ahead for profits to come in to you.

    Estimate not only the cost of your loan, (unless you are buying out right) but also include maintenance (including immediate repairs needed) utilities, clean up, insurance, property taxes, etc.  Then you will have an estimate of monthly and yearly costs of your investment.  Look to one of my other pages to help you get a feel for what to look for and how to calculate expenses.

    What type of Rental Property do you want?

    Single Family Homes- Most RPO’s will tell you that SFH’s are their first priority, why? Because the tenant will usually pay all the utilities and probably be required to cut the grass, shovel snow, and other simple maintenance.  More renters will desire single family homes in that they get the privacy that owning a detached home gives them.  Then if you want to sell, SFH’s are the easiest to market.  Stick to 3 bedroom homes, followed by 2 Bedroom homes, and NEVER BUY one bedroom units.

    DUPLEXES or 2-FAMILIES- priority here will be single level buildings, then 2 story residences.  Then the priority goes to bedrooms, 2-3 bedrooms are the most desired.  They also retain tenants whose families may grow a bit during their tenancy.   One bedroom apartments have the highest turnover of tenants and while not to be completely avoided like 1 bedroom homes, they would be at the bottom of the list.  Along with this note residences that have SEPARATE utilities, meaning that while you may have to pay for water and sewer, (as these usually are not separate), you can have tenants be responsible for gas, electric, trash, etc.

    MULTI-UNIT Buildings- Some RPO’s will swear by these, but yourr complications can be quadrupled or more, and when it comes to selling, if you desire to, this sort of building will be the hardest to market and sell.
     For more info go to www.how-to-buy-sell-foreclosures.com/rental.html

  • How can you Kill Mold with Basic Home Products?

    Posted Under: Home Buying in Grand Rapids, Foreclosure in Grand Rapids, Property Q&A in Grand Rapids  |  September 21, 2011 10:41 AM  |  1,976 views  |  No comments

    Mold Killing Products

    There are several products and solutions you can use to kill and remove mold. Some of the most effective mold killing products include:

    ·   Bleach

    ·   Borax

    ·   Vinegar

    ·   Ammonia

    ·   Hydrogen peroxide

    ·   Detergent

    ·   Baking soda

    ·   Tea tree oil

    ·   Grapefruit seed extract 

    Bleach

     

    Killing Mold with Bleach

    Bleach can kill virtually every species of indoor mold that it comes into contact with, along with its spores, leaving a surface sanitized and resistant to future mold growth.

     

    Unfortunately, however, using bleach is only effective if the mold is growing on non-porous materials such as tiles, bathtubs, glass and countertops. Bleach cannot penetrate into porous materials and so it does not come into contact with mold growing beneath the surface of materials such as wood and drywall. Using bleach on these materials will kill the mold above the surface but the roots within the material will remain and the mold will soon return.

    How to Kill Mold with Bleach

    ·   Bleach produces harsh fumes so make sure the area is well ventilated before you begin. You should also wear gloves during the process to protect your hands.

    ·   For killing mold with bleach use a ratio of one cup of bleach per gallon of water (ie about 1 part bleach to 10 parts water).

    ·   Apply the solution to non-porous surfaces with mold growth either by using a spray bottle or by using a bucket and a sponge or cloth.

    ·   You don't need to rinse the surface afterwards (unless it is used for food preparation or a surface which may be touched by small children or pets) as the bleach will inhibit mold growing in the future.

     

     

    Does Bleach Kill Mold?

    Although the active ingredient in bleach, sodium hypochlorite, is the main ingredient in many mold killing products such as "Exit Mold", there are many reasons to use alternatives to chlorine bleach when killing mold.

     

    One reason is that bleach cannot completely kill mold growing in porous materials. The chlorine in bleach cannot penetrate into porous surfaces such as drywall or wood. The chlorine is left on the surface of porous materials and only the water component of the bleach is absorbed into the material, providing more moisture for the mold to feed on.

    Some of the mold on the surface might be killed but the roots of the mold are left intact meaning the mold soon returns, leaving you in a cycle of repeated bleaching. Perhaps this is why some people believe that spraying bleach on mold doesn't affect it but instead just bleaches its color so you can no longer see it.

     

    Another disadvantage of bleach is that it can damage the materials it's used on as it is a harsh, corrosive chemical. Chlorine bleach also gives off harsh fumes and it even produces toxic gas when mixed with ammonia. There are safer alternatives such as borax or vinegar which don't produce dangerous fumes or leave behind toxic residue. For these reasons try to avoid using bleach and if you must use it, only use it on non-porous surfaces.

     

     

    Borax

     

    Does Borax Kill Mold?

     

    There are many advantages to using borax to kill mold. For starters, borax is a natural cleaning product and although it is toxic if you swallow it, borax does not emit chemicals or dangerous fumes like some other mold killers. Borax, a white mineral powder, has a pH level of about 9 (baking soda is pH 8.1 and pH 7 is neutral) and a low toxicity.

     

    Borax is commonly used as a deodorizer as well as for cleaning toilets and drains. Borax is also used as an insecticide, herbicide and fungicide and it can be mixed with water in a solution to kill and remove mold as it is a natural mold inhibitor. You can buy borax in supermarkets for a few dollars from the laundry section.

    How to Kill Mold with Borax

    ·   To kill mold using borax, create a borax-water solution using a ratio of 1

    cup of borax per gallon of water.

    ·   Vacuum up any loose mold with a HEPA filtered vacuum cleaner to lessen

    the number of spores stirred up into the air during the cleaning process.

    ·   Use a scrubbing brush with the borax-water solution to scrub the mold off

    the surface.

    ·   Wipe up any extra moisture and excess mold particles or dust/debris to

    prevent them spreading into the air once the surface has dried.

    ·   You don't need to rinse off the borax as the solution will prevent more mold

    beginning to grow on the surface again.

    ·   Leave the surface to dry completely.

    Vinegar

     

    Does Vinegar Kill Mold?

    Vinegar is a mild acid which can kill 82% of mold species. However it also has the advantages of being natural and safe. Vinegar is non-toxic and doesn't give off dangerous fumes like bleach does.

    Cleaning Mold with Vinegar

    ·   To kill mold with vinegar, use white distilled vinegar which you can buy cheaply from the supermarket.

    ·   Pour some vinegar into a spray bottle without watering it down.

    ·   Spray the vinegar onto the moldy surface and leave it to sit for an hour.

    ·   Wipe dean the area with water and allow the surface to dry. Any smell from

    the vinegar should clear within a few hours.

    If you want to use vinegar to prevent mold growing on surfaces just spray vinegar on the surface and leave it. Repeat this every few days to ensure the surface will stay mold-free. You can even mop your tiled bathroom floor or other hard non-porous floors with vinegar if you are worried about mold growing on them.

     

     

    Ammonia

     

    Does Ammonia Kill Mold?

    Like bleach, ammonia will kill mold on hard non-porous surfaces such as countertops, glass or tiles but it is ineffective at killing mold growing in porous material such as wood or drywall.

     

    Another disadvantage of using ammonia is that it is a harsh, toxic chemical. Make sure you never mix ammonia with bleach because the gas they create when combined Is toxic. Chlorine mixed with ammonia was even used as a chemical weapon during World War 2.

    Additionally, although ammonia can kill surface mold, dead mold and dead mold spores are still allergenic so you will need to make sure to remove them afterwards.

    How to Kill Mold with Ammonia

    ·    To kill mold using ammonia, create a solution of 50% clear ammonia and

    50% water in a spray bottle and spray it on moldy areas.

    ·    Make sure the ammonia you use says "clear ammonia" on the label.

    ·   Leave the area for a few hours before wiping and rinsing.

    ·    Often detergents or mold cleaning products will contain ammonia. In that

    case just follow the directions on the label and be sure never to mix it with

    bleach.

    Hydrogen Peroxide Hydrogen Peroxide and Mold

    Hydrogen peroxide kills mold as it is anti-fungal as well as anti-viral and anti­bacterial. Hydrogen peroxide is a good alternative to chlorine bleach because it is safe to use and doesn't damage the environment, nor does it leave behind toxic residue or produce toxic fumes like chlorine bleach does. You can buy hydrogen peroxide from drug stores for around one dollar for a bottle of 3% concentration.

     

    Hydrogen peroxide kills mold effectively on many materials such as clothes, floors, bathroom fixtures, walls and items such as kitchen appliances. Since hydrogen peroxide is a bleaching agent it may also help fade the stain mold leaves behind. Spot test hydrogen peroxide on the material you're going to be cleaning to make sure it won't fade the material's colors.

    How to Kill Mold with Hydrogen Peroxide

    ·   To kill mold pour 3% concentration hydrogen peroxide into a spray bottle.

    ·   Spray the moldy surface completely so that the moldy areas are saturated with hydrogen peroxide.

    ·    Leave the surface to sit for 10 minutes while the hydrogen peroxide kills the mold.

    ·   Then scrub the area to make sure to remove all the mold and mold stains.

    ·    Finally wipe the surface down to remove residual mold and spores.

    You can also use vinegar with hydrogen peroxide during the cleaning to more effectively remove the mold. Afterwards store the spray bottle in a dark place since light diminishes hydrogen peroxide's effectiveness.

     

     

    Detergent and Water

     

    Removing Mold with Detergent and Water

    A solution of detergent and warm water can be used to scrub surface mold off non-porous surfaces. Although detergent itself doesn't kill mold, if the mold is on non-porous materials then the solution doesn't need to kill it as long as you completely clean away all the mold on the surface.

    For more info check out:
    www.how-to-buy-sell-foreclosures.com/black-mold-information-remediation.html

  • What to expect when buying Foreclosures for Re-Sale

    Posted Under: Home Buying in Grand Rapids, Foreclosure in Grand Rapids, Property Q&A in Grand Rapids  |  September 21, 2011 10:21 AM  |  384 views  |  No comments

    In most cases all of the trash, garbage and whatever has been removed before you take possession.  You probably also have had an inspection and know the condition of the roof, foundation, structure, mechanicals, plumbing, electric, and so forth.  Yet sometimes there still is trash, and unmentionables hanging around a home that get neglected when the bank or property management company get’s the property in “broom swept” condition. What that term means is that if you had a broom and ran it along the floors it wouldn’t hit anything.

     

    My wife and I when working on Foreclosed Homes we have purchased, and then worked on ourselves, have had friends many times stop by to see what we were doing.  Some of them had the idea that this was easy, just buy a home, paint it a bit, and then sell it for a profit.  “They must be rich”, some would say. But then when they got inside one of our homes, the whining would start.

    “Boy, this place smells!”, “Gosh, what a mess!”, “How can you stand it?”, “I would never do that!” and so on.  What most people fail to see is beyond the mess and/or clutter, beyond the holes in the walls, and beyond the ugly paint, old paneling, ratty carpeting with dog smell and cigarette burn holes, and the stains everywhere.   Most of them would never do what we do, nor would they make a profit at it.

    The true extra profit you can receive in purchasing a foreclosed home and then reselling is being able to “LOOK BEYOND”.  You must be able to envision what the home will look like with and outside that may have new storm windows and doors, paint, a roof, etc. and the inside with new paint, new carpeting, laminate flooring, etc.   This is the vision you have to have to be able to profit from your venture. 

    Yet, sometimes the vision is fantasy and therein lies the caution.  In our Team, my wife and I, we would discuss what should or shouldn’t be done to make a home READY TO MOVE IN, “RTIMI”,  and during the course of our ventures we EDUCATED OUR EYES, “E-Y-E”.   When discussing what should or shouldn’t be done to improve the property, we would ask ourselves, What work or improvements will SELL the Home?  What work or improvements only would please us? In other words, what work or improvements will help make a profit and what won’t.

    When you get to that point make a list. Circle the exterior and the interior with pencil and paper.  Mark down each and every task that would be a “priority” to make this home “RTMI”.   Even down to colors, carpeting/laminate/vinyl, etc.

    This will set up your plan of work to get this home up and running and on its way back into the Market.  Remember, don’t be fooled by Houses in the neighborhood that have been on the market for awhile.   If you make your house “RTMI”, it will sell quickly!  

    We have bought homes, seen ones in the neighborhood up for sale, worked on ours for 3 months and then sold it within a month after being put on the market. We have even sold a couple BEFORE they were finished, because prospective buyers saw what we were doing and KNEW what would be done before they moved in.

    Get Looking!  For more information check
     www.how-to-buy-sell-foreclosures.com/index.html

  • How do House Auctions work?

    Posted Under: Home Buying in Michigan, Foreclosure in Michigan, Property Q&A in Michigan  |  September 20, 2011 3:41 PM  |  382 views  |  No comments

    HOW DO AUCTIONS WORK?

    While conventional methods of selling real estate continue to dominate the national market, auctions are quickly growing in popularity. The stigma that real estate auctions are only for "distressed" property sales is changing as more and more real estate sells at auction, at top market prices!

     

    A good auction opportunity exists when a seller is auction­ minded, with the confidence that their property will bring a

    fair market price. They should have a strong equity position in the property, want to avoid paying sales commissions and be time sensitive... requiring a timely sale that they control, so they don't have high carrying costs associated with the property.

     

    A good auction opportunity also exists when the real estate market and/or buyers are changing, where there is a limited supply of a particular property type with strong buyer demand (i.e... water-front property) or there is a flat or declining market with little buyer interest for conventional property sales.

     

    Offering a property at auction creates a sense of urgency, bringing all interested parties together on one specified day. And this process of selling a property establishes its own sates price through competitive bidding.

     

    All property sold at auction is sold as-is, where-is on the sale day, with buyers questions answered from disclosures and reports provided prior to the sale... On the sale day, the property is sold with no contingencies, to a buyer who is pre-registered and pre-qualified...with certified funds for deposit in hand!

    6  REASONS  WHY A REAL ESTATE AUCTION BENEFITS YOU AS A SELLER OR A BUYER!

     

    1. Timely

    Auctions are NOW events, bringing together serious sellers and buyers.

     

    2. No Contingencies

    Inspections/ Reports are completed before the auction begins.

     

    3. Quick Close

    Typically, escrow closes within 30 days.

     

    4. Market Value

    Auctions realize the property's true market value.

     

    5. Easy

    The auction process manages both seller and buyer, including purchase and close dates.

     

    6. Fun Auctions

    Generate heightened excitement, for seller AND buyer.
     For more info go to www.how-to-buy-sell-foreclosures.com/index.html   

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