All Forum Posts by: N/A N/A

Conversation & The Real Estate Investor

One key that makes investors is conversation or should I say "The Art Of Conversation".

All successful investors are skilled in conversation and I'm not talking about the investors that does 10, 20 or even 30 deal a year! I'm talking about the "BTO" Big Time Operator; The Big Dog's slamming down 100 or more deals every year.

This is no discredit to any that do not fall in the arena with the "Big Dog's", but if you want to play with the "Big Boy's" you must master the art of conversation!

Have you every wondered why you have not been able to get to the next level in your investing carrier it's simply in your conversation as most professionals in real estate investing rise simply from respect from others. You need to develop this skill so that you can converse with any type of homeowner in any type of situation.

How do you improve this skill?

Get a micro cassette recorder and record your negations and review to improve.

Improve your self-confidence - By expressing your views, thoughts and all conversation in a positive and non- threatening manner.

Express your self openly, direct but at all times in a positive manner!

This is the hard part, learn to listen to your customers needs! Simply talk less and listen more.

When a person speaks, assume what they are saying is what they mean.

Improve your image - By proper grooming and dress. If you want to be an investor dress and act the part and you will become the part.

Learn the art of small talk, look at your surroundings find something of interest and engage your customer into a conversation about it for a short period and move on to your purpose as a investor "To acquire real estate".

At this point, you need to keep in control of the conversation and not allow it to fall back to the "small talk" or you will loose your position and purpose of being there.
In addition, continue to look for the opportunity to close the deal.

The wise man will make more opportunities than he finds - Sir Francis Bacon

Did you know getting offers accepted is somewhere between total luck & absolute sells ability.

It seems the smarter I work - the luckier I get & It’s not the # of hours you work or how hard you work, but it’s finding great deals that puts money in your pocket.

Know Your Customer

Determine their PAIN!
High payments
Behind on note
Ugly House
Bad Tenants

Concentrate on their pain, Build your solutions around their pain, and Give them a solution to their pain & you will have a deal!

Key Points to Determine their PAIN!

In a conversational manner - Non-Foreclosure

Whose name is the house in?
Why are you selling?
Who lives in the house or is it vacant?
What is the value, how did you come up with the number?
Or
What are you asking & how did you come up with this number?

In a conversational manner - Foreclosure

How much do you owe & to whom?
How much are you behind?
If you sell your home what do you, plan to do?
If you can’t sell what do you plan to do?
If I could make this problem go away for you, what would you do?

Now get out there and make some deals!

Upcoming Deed & Lien Sales

Investing in Tax Certificates & Deeds can be lucrative but forget the hype!

It is not get rich overnight! You can not get something for nothing!

In s sense, you are investing in real estate with a guarantee! You will find that the majority will be redeemed!

To take the property when it comes to tax certificates it can be a daunting process at times!

You must always do your due diligence when making any investment.

Every State has Laws, regulations, and statutes regarding Tax Certificates & Deeds Investing and they change regularly so do check your county and state Laws, regulations, and statutes before investing.

Questions you should ask the Tax Authority
1. Who handles tax liens for the county (Treasurer, Sheriff, Tax Assessor)?
2. Does the county use tax lien certificates or tax deeds?
3. How often are tax sales held?
4. When is the next auction?
5. Where will the tax sale be held? (get the street address, building name, floor and room number)
6. Where is public notice of tax liens posted (does the county publish a list, will it be published in a newspaper)?
7. Does the auction take place in one day or over several days?
8. What method of payment is required?
9. Is it possible to buy tax liens through the mail?
10. If all the liens are not sold at auction, do you sell them daily over the counter?
11. How does the foreclosure proceed if the property owner fails to redeem the property?
a. Who pays for the foreclosure?
b. When can the foreclosure procedure begin?
c. Does the foreclosure go through a public auction?
d. Do all lien holders need to be notified before foreclosure?
e. What kind of deed is given in foreclosure?
f. Can this type of deed eligible for title insurance?
g. Are all other liens removed from auction and sale?
12. What interest rate or penalty must be paid on a tax lien (your income)?
13. Can a person be put on a mailing list to get future notices of tax liens?
14. Are there tax liens available for purchase today?
15. At the tax lien sale, what are you bidding on? (In some states, you bid the interest rates down, in others you bid the purchase price up, in a few you bid on the percentage of the property that the lien applies to).
16. Is there a redemption period and how long is it?

Redemption - A lien redeems (pays off) during its redemption period and you make back your principal, fees, and a percentage return on your principal investment. Redemption periods vary state to state and range from a period of one to four years.

Foreclosure - taking possession of the underlying property after the property owner has failed to redeem within the redemption period. Foreclosure laws vary from state to state and difficulty of foreclosure is just as varied.

Tax Deeds issued by the Clerk of the Court - When redemption has passed & all subsequent or prior taxes are satisfied, if need be, the right to file deed becomes realized. Some states the deed is immediately issued upon filing. Other states the deed is then placed on the tax sale roll for the deed to be auctioned at a tax deed sale.
The actual sale may not occur for that particular property for months, but most states you will earn the maximum interest on total taxes owed during that time period.
You may still be outbid at the tax deed sale, the sales are held as an open sale. They will then in turn pay everything that is owed to you.

Most Title insurance companies will not insure a tax deed. If you want to sell the property and offer title insurance, you must file a Quiet Title Suit. The Quiet Title process is not complicated.

NACo collects information on counties, such as county officials, courthouse addresses, county seats, cities in a county. To see a listing of the counties for a state, select a State from the map or from the pull down menu. You are then able to get more detailed information on counties.

http://www.naco.org

Upcoming Deed & Lien Sales

Alabama
DALE CO LIEN 4/27/2005
HENRY CO LIEN 4/18/2005
JACKSON CO LIEN 4/26/2005
MACON CO LIEN 4/19/2005
PICKENS CO LIEN 4/25/2005

Florida
CITRUS CO DEED 5/4/2005
MIAMI DADE DEED 5/5/2005
MIAMI DADE DEED 5/18/2005
MIAMI DADE DEED 5/19/2005
MIAMI DADE DEED 5/4/2005
LAKE CO DEED 4/26/2005
LAKE CO DEED 5/17/2005
LAKE CO DEED 5/3/2005
MARTIN CO DEED 4/13/2005
ORANGE CO DEED 6/21/2005
ORANGE CO DEED 6/28/2005
ORANGE CO DEED 6/7/2005
OSCEOLA LIEN 4/26/2005
OSCEOLA LIEN 4/12/2005

Kentucky
BRACKEN CO LIEN 4/9/2005
CASEY CO LIEN 4/9/2005
MENIFEE CO LIEN 4/15/2005
METCALFE CO LIEN 4/22/2005
OWEN CO LIEN 4/12/2005

New Jersey
BRADLEY BEACH BORO LIEN 4/7/2005
COLTS NECK TWSP LIEN 4/12/2005
LINDEN LIEN 4/12/2005
MAHWAH TWSP LIEN 4/21/2005
MANCHESTER TWSP LIEN 4/6/2005
MARLBORO TWSP LIEN 4/14/2005
MONROE TWSP LIEN 4/12/2005
MONTAGUE TWSP LIEN 4/21/2005
QUINTON TWSP LIEN 4/7/2005
RUTHERFORD BORO LIEN 4/6/2005

Ohio
CLARK CO SHERIFF'S SALE DEED 4/29/2005
CRAWFORD CO SHERIFF'S SALE DEED 5/13/2005
CRAWFORD CO SHERIFF'S SALE DEED 5/20/2005
DARKE CO SHERIFF'S SALE DEED 4/29/2005
DARKE CO SHERIFF'S SALE DEED 5/6/2005
DELAWARE CO SHERIFF'S SALE DEED 5/11/2005
DELAWARE CO SHERIFF'S SALE DEED 5/4/2005
FAIRFIELD CO SHERIFF'S SALE DEED 5/6/2005
FAIRFIELD CO SHERIFF'S SALE DEED 4/29/2005
FAYETTE CO SHERIFF'S SALE DEED 4/22/2005
FRANKLIN CO SHERIFF'S SALE DEED 5/6/2005
HANCOCK CO SHERIFF'S SALE DEED 4/19/2005
LAKE CO SHERIFF'S SALE DEED 4/25/2005
LAKE CO SHERIFF'S SALE DEED 5/2/2005
LORAIN CO SHERIFF'S SALE DEED 4/13/2005
MEDINA CO SHERIFF'S SALE DEED 4/22/2005
MIAMI CO SHERIFF'S SALE DEED 5/11/2005
MONTGOMERY CO SHERIFF'S SALE DEED 5/13/2005
MONTGOMERY CO SHERIFF'S SALE DEED 5/20/2005
OTTAWA CO SHERIFF'S SALE DEED 4/22/2005
OTTAWA CO SHERIFF'S SALE DEED 5/6/2005
RICHLAND CO SHERIFF'S SALE DEED 4/15/2005
SHELBY CON SHERIFF'S SALE DEED 4/22/2005
SHELBY CON SHERIFF'S SALE DEED 4/29/2005
SHELBY CON SHERIFF'S SALE DEED 5/6/2005
WASHINGTON CO SHERIFF'S SALE DEED 4/15/2005

Pennsylvania
BRADFORD CO DEED 5/4/2005

Virginia
PAGE CO LIEN 4/6/2005

Vermont
RUPERT LIEN 4/14/2005

The housing market has long been the playground for the rich and famous, but now the average American is getting into the real-estate-buying craze.

A new survey by the National Association of Realtors estimates as many as 25 percent of all home buyers never intend to actually live in their new home.

Big Profit Potential

It's called "flipping," where people buy property, wait a few months for it to go up in value and then "flip it," or sell it for an instant profit — sometimes a huge instant profit.

Carlos Lidsky is a Florida attorney who "dabbles" in flipping real estate. In just two years, he and his wife Betti have dabbled their way to nearly $1 million in real-estate profits.

See the rest of this article at: http://abcnews.go.com/GMA/Business/story?id=553568

Flipping has come of age - This is a nice article "For a change".

As a property owner, you are responsible for 100 percent of the clean up! Cleanups of labs are extremely resource-intensive and costly. The average cost of a cleanup is about $5,000. This is if you are lucky!

Clean Up (includes the insides and the outside of a building)

Air out the building

Removal of contaminated materials:
Carpets, carpet pads, Linoleum, drapes and blinds, air-filters, refrigerators, range, water heater, all tenant clothing and their furniture.

Removal needs to be to a site that accepts contaminated product.

All people that remove these items need to be specially trained and certified.

Surfaces: Extensive cleaning and replacement if the cooking occurred on those surfaces. After extensive wash down with bleach and other cleaners, seal walls and floors to seal in any contamination.

Ventilation systems: Furnaces and heaters will either need to be replaced or cleaned throughout all ductwork.

Plumbing: You might need to replace sinks, toilets and other accessible plumbing due to methamphetamine odors since meth residual was most likely deposited down the drains.

Repainting: Make sure the walls, ceilings and closets are cleaned, sealed and then painted.

Windows: Make sure they have been cleaned as well as the tracks. If the unit was especially heavily used, replace all of the windows. Doors in and outside need to be painted and door hardware needs to be washed down.

Exterior: Does the yard need to be cleaned up? Is there methamphetamine debris in the yard?

Most states required a certified industrial hygienist to approve of the clean up, and most states require a certificate of occupancy permit

Contact your state department of health for more information on this.

This strategy will help your customer to pay off their loan and avoid damage to their credit rating.

You customer may qualify if:

 Owner-occupant (rental or vacancy considered by lender on a case by case basis)
 At least two months delinquent at time of closing
 Arms Length Transaction
This is an expression used to describe a transaction between persons in which each acts in their own self-interest. Unrelated persons usually deal with each other at arm's length, although this might not be the case if, for example, one is under the influence or control of the other.
 Doesn’t have resources to bring current
 Foreclosure is inevitable

 The "as is" appraised value is at least 70% of the amount owed and the sales price is 95% of the appraised value

 The loan is at least 2 months delinquent prior to the pre- foreclosure sale closing date

 Your customer is able to sell their home within 3 to 5 months (depending on what the lender agrees to).

A presale is regular cash out sale - Not much creative but can provide a delay that you will need as an investor to conclude the transaction.

If PMI (Private Mortgage Insurance) is involved a company may subsidize the sale even if the property has negative equity. The PMI Company will pay off part of the loan as long as the amount to be paid stays within the policy limits.

As part of this agreement, the property owner agrees to sell the property to pay off the rest of the loan. Normally the investor will have to make this attractive to the PMI Company by placing a large deposit towards the purchase of the property.

If the lender sees that the borrower has equity and is making serious efforts to market, the property the lender will generally delay foreclosure for a reasonable time to allow the property to sell.

The lender will probably require the borrower to make full or partial payments during the marketing period to keep the overdue balance from growing.

You as an investor can front all the cost as part of your purchase agreement.