“Some of the forces driving the housing market aren’t sustainable.” – LINK

“State Of Financing – 2013”
June 17th at WREIA.
Finally, Forbes is reporting broader details on just how many homes are being gobbled up by those “evil” institutional investors.
If it was left to traditional home buyers, the year over year gains in home purchases would actually be losses.”But John, I thought the real estate market was going gang-busters?!
“Sorry – there are still headwinds in the DC market as well as other major markets across the country.
We have been telling you every month this year – BE SAFE AND DO GOOD DEALS. Don’t get carried away and do a mediocre deal just to keep busy.  This is a good market to be buying homes in good neighborhoods – but be careful.
I’m convinced that now more than ever FINANCING is the major obstacle to the U.S. real estate market recovery.I hope to see you Monday at WREIA where our guest speakers are going to give some details from behind the scenes in the mortgage markets.
Get your tickets now for June WREIA – click here.

 

Next Monday we are going to talk about selling your investment property in 2013 and what you can expect from your retail buyers when they are coming to the deal with traditional bank financing.   We are going to be talking about finding money for your deals, and things to keep an eye on with your buyers financing as well.

 

Your buyers financing options are going to change again on January 10th, 2014 – and you can be ready for it.

 

Keep going today, stay motivated and get your ticket to WREIA for this Monday, June 17th.  We are going to help you lay out a business road-map for the last half of 2013.

 

Let me know if there is anything I can do to help your business,

John Peterson

301-881-5541
Washington REIA Network, President

Profitable Property, Founder
P.S.   The “March To 100” UPDATE – Phase 1 is complete! We are in full swing and local Wholesalers are getting PAID!  If you want a few more details about the campaign, and the types of properties we are buying with the sole plan to place them in a rental portfolio, come join us at WREIA.
P.P.S  The answer is YES, we are still doing partner deals with our students and WREIA members.  Maybe you need some help with financing or need a valuable construction partner?  We can help speed up the process for you, and help take your business to the next level.   We are here to help.  Just send us a few quick details at http://dchardmoneylender.com/quick-property-submit/  and we will get back to you ASAP.

For Most People This is Just Too Hard – NPR Link

“State Of Financing – 2013”
June 17th at WREIA.

If you were driving through the storm this morning, you might have heard an interesting story on NPR.  One of the NPR reporters, Uri Berliner, is taking $5,000 and investing it across different types of investments.

When discussing the options available in real estate, one of his options is taking out a “high risk” loan and using it to fix up and flip a house.   He decides against it.

Poor Uri.

Someone should have told him he could use $100 to flip a house like our wholesalers do, and make a nice flip fee – maybe even a few thousand dollars.

Instead Uri  chooses to invest in a REIT index fund.   For my two cents – he is relying on other professionals, rather than making his own decisions about the value of a property.  I see “professionals” making mistakes every day.  Mostly because they don’t get out and put their boots on the ground. They want to do everything from the internet.  Let me tell you, I never get nervous about the “big boys” coming into our business.  I think they are ultimately going to get burnt – bad.

Now, just for fun, I looked up the 5 year return on the Vanguard REIT Index Fund.

The FIVE YEAR RETURNIt’s down 1.44%.

Someone should tell Uri to talk with me – I could show him a dozen ways to make money in real estate without buying a REIT Index Fund.

I believe we are in for a bumpy ride over the next few years.  HOWEVER, there is a fortune to be made for those who want to put their heads down and take advantage of the current financing that is available.

I paid over 20k to a wholesaler over the last few weeks.  His deals are good.  He knows that I close my deals.  This wholesaler knows that he gets paid when he works with me.  I know for a fact that he gets higher offers – but he works with me – almost exclusively.

Banks are the same way.  When you get started, you may not get the best rates possible.  But when you get going, and PROVE you know your business, things get a lot easier.  They start calling you about increasing your lines of credit – and lowering your rates.

Right now is great time to work with some new lenders.  They are anxious to start lending, but they want to work with real estate entrepreneurs again.   Of course they want to work with the RIGHT people.

If you have put 10’s or even 100’s of thousands of dollars into a deal, the thing I think you need to be most concerned about is your buyer and their financing.

Next Monday we are going to talk about selling your investment property in 2013 and what you can expect from your retail buyers when they are coming to the deal with traditional bank financing.   We are going to be talking about finding money for your deals, and things to keep an eye on with your buyers financing as well.

Too many people make this business too complicated. Find a house that needs some work.  Buy the house at the right price. Do the work.  Sell the house and make a profit.

It’s a simple plan, and there are plenty of places to make mistakes along the way.  But when you buy a house at the right price, you can make a ton of mistakes and still make a profit.

That said, the biggest issues I see facing our business today is financing.

It may be getting a little easier for you if you are the right person the bank is looking for, but it’s getting tough when it comes to traditional financing for your buyers.

Your buyers financing options are going to change again on January 10th, 2014 – and you can be ready for it.

Keep going today, stay motivated and get your ticket to WREIA for this Monday, June 17th.  We are going to help you lay out a business roadmap for the last half of 2013.

Let me know if there is anything I can do to help your business,

John Peterson

301-881-5541
Washington REIA Network, President

Profitable Property, Founder

“My Deal Fell Apart At The Last Minute”

“State Of Financing – 2013”
June 17th at WREIA.

When I asked how her deal was coming along, she replied that her sale fell apart “at the last minute.”

I asked “Why?” especially when I knew it was such a good deal and she had perfectly priced in that neighborhood.

“Financing.”

First – Let’s dispel the myth about investment capital.  There is money available for investors.

Banks have money available for investors – and at pretty great rates.

It’s what we call a normal market for investors.  In 2005-06 you could get an investor loan by walking into a bank and fogging a mirror.  Today, you will need decent credit, 20-30% down, qualifying reserves and a well priced deal – but the money is there.

But at WREIA this month local mortgage and banking professionals are going to answer two BIG questions for investors:

  • Who is lending to investors?
  • What is their criteria?

Back to my friend – lack of funds was not why her deal fell apart at the last minute.   She was trying to sell her property – after she had finished about 80k of renovations.  She had done most of the work on a very tight budget – but didn’t have the documentation to prove the amounts she had spent.  This simple mistake kills deals today.

 – THE LESSON –

YOU MUST DOCUMENT YOUR RENOVATIONS!

Next Monday we are going to talk about selling your investment property in 2013 and what you can expect from your retail buyers when they are coming to the deal with traditional bank financing.

It’s a whole new ball game when it comes to traditional financing for your buyers.

It’s going to change again on January 10th, 2014 – and you can be ready for it.

Keep going today, stay motivated and get your ticket to WREIA for this Monday, June 17th.  We are going to help you lay out a business roadmap for the last half of 2013.

Let me know if there is anything I can do to help your business,

John Peterson

301-881-5541
Washington REIA Network, President

Profitable Property, FounderP.S.   The “March To 100” UPDATE – Phase 1 is complete! We are in full swing and local Wholesalers are getting PAID!  If you want a few more details about the campaign, and the types of properties we are buying with the sole plan to place them in a rental portfolio, come join us at WREIA.P.P.S  The answer is YES, we are still doing partner deals with our students and WREIA members.  Maybe you need some help with financing or need a valuable construction partner?  We can help speed up the process for you, and help take your business to the next level.   We are here to help.  Just send us a few quick details at http://dchardmoneylender.com/quick-property-submit/  and we will get back to you ASAP.