A Guide to Going Bankrupt in Real Estate!!!
First off, watch some late night infomercials on TV. And possibly order some real estate tapes from Carlton Sheets. This will provide you with a positive upbeat attitude and a sense of false confidence that is essential in order to go bankrupt. Believe that after listening to some tapes, you can compete with people that have done this 7 days a week for years.
Second. For your first investment, buy in a city you know little to nothing about and avoid using a buyers agent who does know the city. Go directly to the sellers agent. The best way to make a truly horrible decision is to avoid any outside advice. The best part of this is that avoiding a buyers agent usually doesn't save you any money since the selling agent simply makes more when you deal with them directly.
Look for a discount or a distressed property over a good long term investment. Late night infomercials and Carlton Sheets talk a lot about this. Getting equity at the point of sale. One thing about distressed properties with desperate sellers is that they frequently are in crappy areas with low appreciation rates. Buying a property at under market rate in an area with low appreciation potential versus a property in a good area is the kind of short sighted thinking that will really help you reach the goal of bankruptcy and foreclosure.
When you talk to people including your realtor, try to spend time talking about all the crap you learned from your book or light night infomercial. The more you listen to other people, the more you might get different perspectives and the higher chance you might learn new things. This could really hurt your chances of going bankrupt so avoid listening to anyone. Remember you know everything even if you only got interested in real estate last week.
Be positive to the point of stupidity. Alot of investors I know always think about how their situation would be affected by a 10 or 20 percent drop in the market before making a purchase. You should avoid this kind of thinking. You need to be blinded by greed. You should only fantasize about how you are going to double your money.
When calculating your monthly cashflow, assume that you will have 100% occupancy all the time and no maintenance cost. While you are at assume that its going to rain money tomorrow.
Also, be stubborn when renting your properties. Decide upon a number say $900 a month and refuse to budge. Come up with some bizarre logic about how the property deserves $900 a month. Lose months of rent having the property sit vacant instead of going down $50 on the rent. Instead of responding to the market make statements like "Well the markets wrong then".
As you move closer to foreclosure, don't alter your spending habits. Don't move into a smaller house or cut spending. Act like nothing is wrong.
Overextend, overextend, overextend. Are you approved to buy one house. Why not buy 5, heck why not 20. Instead of building up a portfolio of properties over time, gaining experience along the way, just buy alot of properties next Tuesday.
Alot of people are getting into the foreclosure game. Their is no reason you should be left behind. Throwing caution to the wind and filling your eyes with greed and you should find yourself walking down the golden path to foreclosure.
This is not a definitive guide to foreclosure. Alot of people end up in foreclosure due to many things unforeseen events like unpreventable family illness, divorce or job loss. This is simply a guide to what I call elective foreclosure.
Watch the video related to Real Estate Investing
FreeREIforms.com | Walkthrough of memorandum of agreement real estate investors can use in a number of transactions including short sales, foreclosure flips, regular flips and many others. Download a FREE copy of this from http
Help answer the question about Real Estate Investing
Can anyone recommend some good real estate investing / personal finance books?I have read Millionaire Real Estate Investor and Investing in Fixer Uppers. Also, Rich Dad, Poor Dad, and currently reading The Richest Man in Babylon. The Four Hour Work Week is next on the list. Any other suggestions?
About Author
Escapesomewhere Austin Real Estate is a realty company operating in Austin Texas. Their website has a page on Austin Foreclosures along with a real estate cashflow calculator.
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July 22nd, 2009 - 17:55
short sales are money makers if you have the resources in place, most lenders want proof of funds to take your offer serious, there are some services out there that will provide those pof letters but i’ve heard banks have started throwing those in the trash,,,, just what i heard
you would need your buyer in place to make a short sale work…. also they may take months just to get a acceptance, counter offer or rejection back from the lender…
money can be made with the proper resources
July 22nd, 2009 - 18:13
lov your vids,if a seller calls you and you try a short sale and bank accepts offer do you have to pay amount in total within a certain time periodn what if you get a 300,00 house for 185,00 short sale how can you pay that if your just starting out? thanks ty
July 22nd, 2009 - 17:16
NO they are all scams – enlist the services of a realtor or real estate attorney and find a really smart mortgage broker who is a member of the National Association of Mortgage Brokers. Several of those "get rich quick investing programs" are under investigation by the states and federal Attorney generals offices-
http://www.FTC.gov
July 22nd, 2009 - 18:52
Yes, you can, but if you have never owned real property previously, you need to learn a lot before you get started. You will be dealing with people who do this type of work day in and day out. You will be dealing with Mortgage companies, Title Companies, your County (taxes and deeds), as well as everyday people who might know more than you do. There are forms, contracts, not to mention home inspectors, etc …
If I were just starting out now in real estate, I would do these three things first -
1. Learn how things are done in your part of the world. This includes all of the paperwork involved.
2. Find out how much it really costs! Title companies charge more fees than just about any other business I have ever seen, but they are very good at what they do, you definitely get what you pay for. This is not the area to cut corners.
3. Make sure you don't overlook the best deals. When I started out, I worked the area within 10 miles of my home and missed out on a lot of opportunities. If I had been willing to do a little more driving, I probably could have had an easier time because I would not have been limiting myself geographically.
July 23rd, 2009 - 11:30
sure, as long as they buy it doesn’t matter, i’ve personally never tried it myself, let us know how it works out
July 23rd, 2009 - 04:47
since each state has different laws and taxes, you did not say where.
i bought some apartments in pennsylvania years ago, very good return
and the write off each year is amazing. thing is, i have them very close to where i live so i can keep an eye on the maintenance and upkeep. i'm not a slum lord nor do i want to be.
i had a rental house in florida, but it was too much of a pain. when it was rented it was profitable but you need to count on Realtors to rent it and they never keep an eye on it after they get their 2 months.
no matter how bad the economy got, people still needed places to rent especially when they could not afford to buy. i am one of the few landlord that allow pets. sometimes that bites me in the butt, but in general people who would rather move than give up their pet, seem to be more responsible. my 6 apartments have been rented by the same people for the last 5 years…when i have a good tenant, i tend to lower their rent a few dollars, everyone is happy.
good luck…whatever you put your money in, keep an eye on it yourself.
July 23rd, 2009 - 08:08
I think you should wait until you are able to be more aware of what is happening in that state you want to invest in. It's kind of like being blind to what's going on if you can't be there for a while. I think you should wait. The market will always have a favorable time again to buy if it changes.
July 23rd, 2009 - 08:52
Dan;
Two books…
"How I Turned $1,000 Into Three Million in Real Estate in My Spare Time" by William Nickerson
This is the book that started it all. Get it. Read it. You will have to look for a used copy at amazon or ebay as it is an old book. The concepts are spot on though.
"How You Can Become Financially Independent Investing In Real Estate" by Al Lowry
Also an older book, but its solid as well.
You may also have some luck finding these books at your local library. And don't let their age fool you.
It sounds as though you are looking to get started in real estate investment. If so, I would encourage you to have a look at an article I wrote on that subject. You can find it here… http://www.apartment-building-real-estate-investment-for-the-rest-of-us.com/real-estate-investing.html
Most of what I teach my readers is how to become successful investing in apartment buildings and commercial real estate. However, I also provide a lot of general information regarding real estate investing in general. Feel free to have a look around.
Best Of Luck…
Bruce
P.S. The Four Hour Work Week Week is also an excellent read. The author, Timothy Ferriss has hit the nail on the head when it comes to the new realities of what can be accomplished in business using today's technologies. A great example is the outsourcing of tasks to countries like India. However, he does stop short of showing the average person exactly how they too can become a successful online entrepreneur like these people… http://specialprize.sitesell.com/cgi-bin/adb/adb.pl?code=36470&src=7571 Once you have read the book, if you agree with me and are searching for "the next step", check out that link, and see how other people are actually doing what Tim is writing about. Cheers
July 23rd, 2009 - 18:21
if you have your marketing generating your deals you won’t have to compete with realtors and other investors for the most part
you’re 50% of the way there when motivated sellers are calling you to buy their property because of your marketing
wal-mart uses marketing for biz, why shouldn’t you?
July 24th, 2009 - 00:22
How do you feel about doing a google search for investors? I have seen some that are nationwide and was wondering were they any better or worse than say an investor you would use.
July 24th, 2009 - 01:13
Do a search for this video
“How to Determine and Use After Repaired Value aka ARV to negotiate deals? Real Estate Investing”
July 24th, 2009 - 05:51
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July 25th, 2009 - 03:05
How do I find out what is the price of the house after it is fixed up??
July 25th, 2009 - 04:05
Your best bet are duplexes for rent or buying a house that needs a lot of cosmetic repairs. You just need to make sure you have enough money to pay the mortgage until it sells. The "real investors" purchase now and hold on until the market is high. Buy low, sell high pertains to real estate investor too. A real investor does not buy high and sell a little higher.
July 25th, 2009 - 12:37
How many bandit signs should I put out and when do I need to pick them up?
July 25th, 2009 - 13:43
nothing less than 100, i would recommend more if you can afford it
pick what up, let them stay posted as long as possible
July 25th, 2009 - 14:00
cash flow, cash flow, cash flow, cash flow and cash flow.
People that get into investment real estate hear all the stories about NO MONEY DOWN. But the problem is, that you lose money every month. Rents are less then expenses.
My rule of thumb is that my PITI equals 50 percent (or less) of my gross monthly rent. The other 50% is NOT profit, but covers up keep and other expenses.
On all my properties I have a positive cash flow and a ROI of around 14% per year (before taxes and tax breaks).
July 26th, 2009 - 00:43
how can my offer stand out over realtors and other investors
July 25th, 2009 - 20:37
Have you heard of Robert Kiyosaki, who wrote a book called Rich Dad, Poor Dad? check out one of his books @ the library, read it, and then go signup up for RichDadWorld.com – there is free information there on how to start. Best of luck to you.
July 26th, 2009 - 01:52
Most government grants are in blighted areas where they want to spur rehabilitation of neighborhood properties. As far as I know there are no federal grants avalable unless you are revitalizing a property which will end up on the national register of historic properties, but these would have little to no profit potential due to the high cost of rehab to get the property to standards. The local programs generally only give 5-20k for help in rehabbing homes, but unfortunately come with so many strings attached that you will be begging them to take their money back just so you can get them out of your hair. Once you invite them in, you many times lose the grandfather clauses on any number of code requirements that have been put in place since the particular home was built and you have to spend as much if not more than the grant money to get the place up to the government standards that they require in exchange for the grant.
In my honest opinion, better to just get your own loan and go it alone….