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 –

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

I know it seems like ancient history, but let’s look at a RealtyTrac article that came out just 90 days ago….

You might say 43% sounds like a lot for distressed sales, but what is normal?”

Well, this chart might shed a little light on just how out of whack 43% actually is:

Now, Let’s Connect Those Facts With These Next Two Headlines

Whether you are getting started, thinking about moving to full time investing, or ready to flip out a few of your rentals to long term multi-family holds though a 1031 Exchange – we will have some updated strategies for you.

2013 is different from years past, and we are going to be talking about some of the reasons why things “feel” different.

Keep going today, stay motivated and get your ticket to WREIA for this Monday, May 20th.  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

You Can’t Make This Stuff Up…

“Henry Gribbohm says he lost his life savings, $2,600, on a carnival game and all he has to show for it is a stuffed banana with dreadlocks.”

You can find the entire story here – http://boston.cbslocal.com/2013/04/29/nh-man-loses-life-savings-on-carnival-game/

People around the country are going crazy with their life savings.

With one of the lotteries now projected to win over $600 Million tonight, people from all over the country are spending like mad trying to win the jackpot.

One Arizona couple, who has already won two much smaller lotteries, spends about $10,000 a year buying more tickets.   It’s nearly 10% of what they make from their previous winnings!

You can find their story here – http://abcnews.go.com/blogs/headlines/2013/03/couple-who-won-million-dollar-lottery-twice-credits-persistence/

Of course, if you want to spend a couple bucks on the lottery for the fun of it – enjoy.  Just don’t go crazy and start spending money you can’t afford to lose …. the odds are 1 in 175 million that you will win.  A math geek explains the real odds of winning here.

If you plan to be a little more realistic about your investments, and know that real estate holds a better chance at providing a real return on your time and money, you need to join us Monday night at WREIA.  We will have a room full of people who have made a real difference in their lives through real estate.  No matter where you are in your career there will be some nugget of information you can take away from the evening and use in your business.

Whether you are getting started, thinking about moving to full time investing, or ready to flip out a few of your rentals to long term multi-family holds though a 1031 Exchange – we will have some updated strategies for you.

2013 is different from years past, and we are going to be talking about some of the reasons why things “feel” different.

Keep going today, stay motivated and get your ticket to WREIA for this Monday, May 20th.  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

On a cold rainy day like today it can be hard to stay motivated, so let me give you something to look forward to.

No matter where you are in your real estate investing career we will have something for you at WREIA this month. 

“Your First, Middle and Last Real Estate Deal”

Whether you are getting started, thinking about moving to full time investing, or ready to flip out a few of your rentals to long term multi-family holds though a 1031 Exchange – we will have some updated strategies for you.

Everyone I talk with has been hitting some speed bumps along the way this year.  You might be surprised what some of us are doing to stay ahead of the issues and keep moving in 2013.

Keep going today, stay motivated and mark your calendars for the evening of May 20th.  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

You know that right now you must make the strongest offer possible in order to “win” properties in the DC area.

….But timing has a lot to do with your strongest offer.

There is a great article in the Washington Post today that details some of the old tricks we had to use in 2005 when we wanted to win our chosen property.

You can find the full article at http://www.washingtonpost.com/realestate/hot-housing-markets-revive-techniques-that-marked-the-bubble-of-a-decade-ago/2013/04/10/8565827c-a078-11e2-9c03-6952ff305f35_story.html

We just talked about highest and best requests a few days ago, and the WP article touches on the low ball listing tactic that usually comes with those competitive auction style scenarios.

I might also remind you that the last time we used those tactics was back in 2005-2006 – just before we had massive issues with our real estate pricing across the country.

Be careful out there – and don’t let emotions get in the way of a good business plan.

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

John Peterson

I had an interesting conversation a few days ago that ended with this comment:

“Share my story with the other members, and let’s hope they don’t make the same mistake I did when I got started.”

I hung up the phone a few days ago and was reminded of something….

Our WREIA members are an amazing group of people.

This long-time WREIA member read our post a few days ago and gave me a call at the office. He wanted to share his story with me, and pass some of the details on to you.

This member “finally got serious” about real estate and had spent a little more than a decade accumulating a decent net worth of a little over $3 Million dollars. He was definitely the “millionaire next door”.  You never would have known his net worth by the car he drove or his modest background.  He was never flashy, and never heard bragging about his business success.

But, he lost nearly all of his net worth over the last few years mostly to some bad advice when he was first getting started.  The attorney he used when he got started as a real estate investor was a great real estate transaction attorney – but he knew next to nothing about asset protection.

My friend went on to tell me exactly how he could have kept the majority of his net worth in tact.  He could have structured his entire business just a little differently, and most of his losses could have been avoided.

Knowing how to find, fix and flip a house is important.  But it doesn’t matter how much you make if you leave yourself and your assets exposed to lawsuits.  Just one bad mistake can take down your entire net worth, and leave you penny-less trying to defend yourself.

After spending so much time and working so hard, losing so much is a terrible story. But the conversation really hit home with his final point:  It put an enormous amount of pressure on his family.

That is why I am passionate about our topic at WREIA this month.  Helping you avoid future problems and keeping you in business is something I am passionate about.  You have heard us say it frequently at WREIA – sometimes not doing a deal can be the best decision of your year.

There have been a few times in the history of WREIA when I really wanted everyone to hear our guest speaker.  Next Monday, April 15th 2013 is one of those months when I wish I could reach out and invite everyone in the DC area personally who has anything to do with   real estate investing.

Keeping what you accumulate is just as difficult and important these days as earning it.  And that is why we will be discussing Asset Protection and Tax Reduction next Monday at WREIA.

We have an amazing membership at WREIA.

Come out on Monday night, increase your knowledge and network with a fantastic community of DC area investors.

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

John Peterson

The market here in the DC area is heating up again, and I am starting to see people make mistakes.  They are paying too much for properties and not leaving enough room to make a profit.

Edwin Land, the guy who invested the Polaroid camera, described a mistake best when he said : ‘A mistake is a future benefit, the full value of which is yet to be realized.”

How can paying too much provide a future benefit?  Because when the project is finished –  now you have learned something.  Many people walk away from their first real estate “deal” and say “I’m never gonna do that again.”

How quickly the tide has changed.  18 months ago, talking about real estate made people uneasy.  Fast forward to the spring of 2013, and you would think we have a real estate gold rush going on.

But let me show you something…..

This is a chart I pulled from Trulia.com showing prices in the Rockville, MD area over the last 10 years.

Notice that every spring – even in a recession –  we have upward price bumps?  Spring is a great time to sell property – but not the best time to be buying.

Have some patience – and don’t start making mistakes.  We may be out of the lowest point when it comes to prices – but don’t go making mistakes by being to eager to get in the game.

This is a terrific business to be in if you treat it like a business.  You also need to surround yourself with good people that will help you avoid mistakes.  Many times, avoiding mistakes and not doing a deal can be as important to your career as hitting the occasional home run.  I suggest you stay disciplined and also come out and join us at WREIA on Monday.

Keeping what you accumulate is just as difficult and important these days as earning it.  And that is why we will be discussing Asset Protection and Tax Reduction next Monday at WREIA.

Let me know if there is anything I can do to help your business here in the DC area,

John Peterson

If you have been making offers in the DC area lately, you will want to read this…..

We just posted a few comments on Highest and Best offers over on ProfitableProperty.com.

Click Here and we will magically take you across the Interweb for the full article.

Enjoy!

The current owner, a recent widow, is placing her home on the market to move back to McLean and spend more time with her family.

If the 6 BR aren’t quite enough for you, there is a 3 Bedroom 2 Bathroom stone cottage for guests.

At 21M, the price may be a little high, but don’t let that stop you – that’s just the asking price.  If you would like to place an offer on the property, I would be happy to help. Perhaps you could request the property be approved for section 8 housing….. though I’m not sure the rental vouchers would cover your mortgage payment – and doubtful they would even cover your property taxes.

You can find more photos and the entire article at
http://online.wsj.com/article/SB10001424127887323826704578356692293784034.html

As for our topic at WREIA on Monday – we are talking about Section 8 Housing. Unless you currently have rentals in the area and already know a lot about Section 8, this is one WREIA meeting you will definitely want to attend.

There are nearly 100 different apartment complexes that have been approved for the Section 8 Program in DC.  However, there are hundreds of other private residences which also house people through the Section 8 housing choice voucher program.

We are going to talk about some of the myths and mysteries of Section 8 this month, and I am sure you have some questions…..

When we bring up discussions about Section 8 programs, we sometimes hear questions like;

• Are Section 8 tenants going to wreck my property? (We hear this a lot.)
• Is Section 8 going bankrupt, or will it lose funding?
• Who actually pays me each month?
• Are the tenants paying anything toward rent, or is it all paid for by the government?
• Will my tenants have a job, or is everyone in Section 8 housing unemployed?
• How much will I collect, and will it be near what I can expect as a “regular” rental?
• Will I have to chase down my tenants for their rent money each month?
• …. and more.

Join us this Monday at WREIA and learn from people who are current landlords and provide housing via the Section 8 housing program in the DC area and beyond.

Make plans to join us before it’s too late.  You can find the registration page at http://wreia-march2013-wreia.eventbrite.com

John Peterson