A buyers list is about networking and making connections. With this list, you are highly likely to make money in real estate investing.   Some investors make the mistake of starting off investing in real estate by looking for the properties first.  Although you can do that and I have for rehabbing, if you plan to wholesale, it is always better to have a group of buyers lined up.  Having a buyers list tells you the type of properties your looking for and you can move your deals much quicker.

Here are 10 ways to develop a buyers list:

1. Join an investment club/group where you can meet other fellow investors.  Let it be known that you are a wholesaler and is in the process of developing a buyers list.  If they are not able to give you all the information you need on the spot, get their name, number and email to follow-up with them at a later time.
2. If you have houses already under your control and advertise for them, make sure you keep the names and numbers of the individuals that call. Let them know you come across many different properties and if the one your currently selling isn’t what they are looking for you may have something in the future.
3. Join real estate investing network sites online.  There are many investment sites out there that have forums and chat features. Those sites are great for networking and will allow you to add to your buyers list.
4. Start talking to any and everybody.  Let it be known that you buy and sell houses. You never know who is on the market to purchase a new house or move for whatever reason.  The more you get your name out there, the more people will think of you when they are thinking about real estate.
5. Pass out your business cards.  Never underestimate how powerful it is to distribute your business cards. Give them to whoever you can wherever you are.  You never know who’s looking to buy real estate.  And you never know who’s willing to hold on to your business card for a long period of time.  Hopefully when they think of real estate, they will think of you!  You can also post your card on bulletin boards where permitted.  Usually deli shops, convenient stores and grocery stores allow you to.
6. Post Ads on sites like Craigslist.com, BackPage.com, Yahoo & Google investing groups that say something like:  Seeking Investors who want Discounted Properties!  Selling at Huge Discounts, Please send Name, Phone Number and Email Address to be added to our investor list.  If they respond, you may want to probe further to find out more about their investing criteria and specific areas they are looking in.
7. Network with realtors. Although realtors are seeking their own buyers, you never know when they are willing to network with you because you have the type of house their client is looking for.
8. Search the newspapers for “I Buy Houses”, “Cash for Houses”, etc Ads.  Once you find them, call the number to find out what their looking for.
9. Ask your Realtor to run a search for Absentee Owners. These are Investors that own a property but do not occupy that property. They have tenants in the property. Once you get the name of an absentee owner, do a little research to find their mailing address. Mail them a flyer or a letter letting them know that you have investment properties at great deals. If your state post tax records online, you don’t need the realtor.  Be creative!
10. Research contractors and builders in your area. Call them and see if they do any investing. 90% of the time they do and you can add them to your buyers list!

As you began to build your list make sure you are dealing with active investors.  Be creative with finding your buyers.  Don’t get discourage when you start off with only a few names.  Just continue to grow your list and keep track of all the data to be sure it stays current.  Before you know it, you’ll have more names than you can count!

Do you ever have to tell yourself that sometimes?  I know I do.  I’m not yelling at you, I’m talking to myself! Folks, I try to keep it real and I don’t always feel like I’m doing all the things that are necessary to be on top of my game.  You have to kick yourself sometimes to work harder or at least more efficient. 

If you find yourself slipping in that lazy, don’t want to do anything mode, wake up.  Give yourself a little nudge or kick if you have to and get things rolling again.  Honestly, you don’t want to kill yourself or become over worked.  But many of us know when we are slacking.  If you have momentum, keep it going. If you’ve been to relaxed, let’s try to kick things up a notch.  Real estate can have some very tedious tasks but we need to do them to make things happen.    

Let’s make a decision today to make 2010 our best real estate investing year!  I’m not talking about a New Year’s resolution.  Statistics show that somewhere in the vicinity of 97% of New Year’s resolutions won’t be kept.  TODAY, let’s make a commitment to ourselves to work towards our financial freedom.  With Financial Freedom, you are free to spend generous time with your family and friends, free to volunteer  in programs that you believe in, freedom to give to the less fortunate, and freedom from the monotonous daily chore of reporting to work every day and being subjected to a boss or job you don’t’ want!  If you need help setting up a plan or your goals for the year, read my post on goal setting. 

If real estate investing is something you really want as a business or income, we need to commit ourselves to it!  Make it happen with persistence and focus.  Fight laziness and fear and press our way forward.   You can do it! 

 I wish you and your family a very Merry Christmas and a happy healthy, prosperous New Year!

So a couple days ago I posted the article about 30 year fixed rates still being low. I was thinking about that afterwards, realizing that really isn’t what we need for fixing and flipping properties.  Also, do these rates apply to investors which is a BIG no!  So that really didn’t hype up an investor.  What we want to hear is that investors loans are still affordable.  Well, I haven’t come across that just yet…

I would say, let’s be creative in this market!  I mean, you’ve probably heard the terms Subject-To financing, Homeowner Fiancing, or even Lease Options.  We need to find ways to make real estate deals happen even if the banks don’t want to lend you the money.  Be creative and work the deal to make sense without the banks financing!

I wanted to give the community an update that I’ve changed the site name from JerseyGirlFlipHouses.com to ControlToFlip.com. I chose to do this because I wanted the web community to know that my experiences as an investor is not just for my fellow Jerseyians but for whoever wants to invest in real estate regardless of their location. Of course, different legal laws apply in different states or countries but the principles of marketing, acquiring leads, creative financing and rehabbing are universal. I am the same o’ Jersey Girl with the same belief system. Please continue to join me on my journey as a real estate investor. I also hope to hear from you regarding your journey.

Happy Real Estate Investing!

Mortgage rates are still affordable.  This is definitely the time to purchase.  I hope you all are still investing in real estate!  The economy is slow but this is still a great market for real estate deals.  It’s a struggle to always have the right ingredients together (credit, money, location, price, etc.) but there are always ways to make it work! 

Here is information regarding the current mortgage market:

Average interest rates for 30-year fixed rate mortgages (FRMs) are at all-time lows in two weekly surveys.

Freddie Mac’s (FRE: 1.03 -6.36%) weekly survey put the 30-year FRM at 4.78% with a 0.7 point, down from last week when it was 4.83% and one year ago when it was 5.97%. This week’s rate ties the record for lowest ever in the weekly survey’s history, which was previously reached twice in April this year.

Bankrate.com’s survey put the 30-year FRM at 5%, a new low for the company’s survey of large US banks and thrifts, and is down 6bps from last week, which was the previous all-time low.

Freddie put the 15-year FRM at 4.29% with an average 0.6 point, a new low for the survey. Last week’s 4.32% was the previous all-time low. Bankrate.com put the 15-year FRM at 4.47%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.18% with an average 0.6 point in Freddie’s survey, down from last week’s 4.25%. Bankrate.com put the five-year ARM at 4.54%, down 4bps from last week. Both rates are record lows for in the respective surveys.

The one-year Treasury-indexed ARM averaged 4.35% this week with an average 0.7 point, unchanged from last week, Freddie Mac said.

“Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year’s peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage,” said Frank Nothaft, Freddie Mac vice president and chief economist.

This article has been republished from HousingWire. You can also view this article at HousingWire, a mortgage and real estate news site.

When estimating your rehab budget do you account for security?  If not, you should think twice.  I’ve learned that it pays to secure the house.  Even if you are in a nice neighborhood but especially if you are in the rougher side of town.  There is just something about vacant homes!  It screams to the thief, “Come in and take/destroy whatever you like”.  If you don’t budget for security then budget for replacement rehabbing and damage control. 

What prompted this post was a house that caught my eye while walking through a city in North Jersey.  The area is a nice middle class neighborhood.   While walking, I noticed a construction project going on.  I believe they were converting an oversize Victorian Style property into  professional offices.  But what caught my eye about this particular house/office were the lights.  I was walking at night and the whole house was lit up.  You can see all the beams and skeletons of the property inside.  I immediately thought, very clever.  It was obvious to me, that this was one of the methods used to deter thieves and secure the property.  As I said the area was pretty nice so I’m sure if anyone notices someone trying to break in the property, they would call the police.  This method of security would have to account for the higher than average electricity bill that would occur in a vacant property but I think it is definitely money well spent.    Oh, I forgot to mention there are large windows everywhere.  There is no way a person can walk in without being notice.  A thief’s best option is to break in quickly  and turn off the lights.  Lights on at night with a security monitoring system could be a nice combination to secure a property.

One would ask, what is there to steal in a vacant property with beams exposed?  Well, I’ll tell you what they stole from me, copper pipes!  One of my rehabs was a very large home, with 6 bedrooms and 4 baths.  The home also had baseboard heating throughout.  With all the new plumbing work needed to get water flowing, the basement was laced with copper.  They broke through a window and snatched out all the copper pipes that were between the beams throughout the basement.  I was shocked and caught completely off guard.  I had to redo over $3000 worth of plumbing work.  I also had to invest in a security system. 

Simply locking the doors on a vacant home isn’t good enough.  It was a lesson well learned and they tried to get me again on another house.  It was during a time when I first started the rehab so everything had to go anyway.  What was interesting about the second incident was that they took the water meter. I just laughed.  There is never a dull moment! 

Moral of the post, don’t get caught blindsided.  I never thought about security or thieves when I first started rehabbing but I quickly got educated.  Security is a must, all the time.  Don’t over look this part of rehabbing. The expense for damage will definitely outweigh the expense to secure the place.

Happy Real Estate Investing!

Here is a good excerpt about real estate in this seemingly negative market. Prospective is key in everything you do and being positive is a great step towards being successful in real estate.

I am sure you’ve heard the expression, “Attitude is everything.” This is very true. Right now, it’s simply your attitude and mentality that will give you the edge over others who are trying to invest in this highly volatile market. You’ve undoubtedly heard the importance of thinking positive and having the right attitude. Most people are intelligent enough to know that this statement is true. Some people reading this will argue that a positive attitude doesn’t always work. Well, maybe not, but I know one thing for sure - negative thinking and a negative attitude NEVER works! So your only choice and your only chance for success in this market are to pick the positive things in life and maintain a positive attitude at all times.

I once read a fortune cookie that said, “An optimist is someone who tells you to cheer up when things are going his way”. I know that if you are reading this article, times may be difficult and you need serious answers to your burning questions such as, “How I profit in a slow market”? There are many answers to this question, but first I need to impart to you some relative perspective.

A History Lesson on Real Estate Cycles

About every ten to twelve years, as an average, real estate values tend to double in most major metropolitan areas. For example, in the 1920’s, the original colonial homes sold for just under $2,500 in Long Island, New York. Since then, real estate prices have doubled almost eight times over the last 80 years. That averages out to a 100% increase approximately every ten years. An interesting note to this is that about every ten to twelve years, real estate values must correct before they enter their next “doubling cycle”.

It’s Not a Matter of If, It’s a Matter of When

The evolutionary process is three steps forward and one step backwards. For example, imagine a 100% increase occurring in three steps of one-third parts each. The last market cycle of the 1980’s was one in which real estate values doubled, followed by a correction of the early 1990’s, which equated to a 20-30% decrease over a three to five year period. This cycle was then followed by the post-millennium cycle boom of 100% from the last high point of the previous cycle. We are now in the naturally-occurring phase of a correction in the cycle. This essential and beneficial adjustment gives the market pause to reflect and re-gather momentum and strength for the next doubling cycle. This has occurred time and time again because the long-term demand for housing is growing an exponential rate based on population growth to almost double in the United States by 2050. This will continue to drive prices higher as it has for the last 100 years.

Since we now know based on history that nearly all real estate prices will double again, it’s not a matter of if, it’s a matter of when your existing houses will sell. Sharing these facts with your prospective buyers will put them in the right frame of mind to buy now versus next year if they plan on staying in the home more than five years. If a buyer is apprehensive about being the right time to invest, ask him if he’d like to buy his parent’s home for the price they paid for it – the answer will be obviously “yes”.

Maintain a Positive Attitude Assuming a Negative Result

In “Winning Through Intimidation” author Robert Ringer talks of the importance of maintaining a positive attitude through the assumption of a negative result. In other words, Ringer suggests that you be prepared for the worst case scenario while at the same time putting your best foot forward to get the best possible result. This will take the mental pressure off of you and allow you to focus on getting the job done. This approach, I believe, allows you to be positive and realistic in your mental assessment buying and selling houses.

Excerpt from William Bronchick’s New Book,  How to Sell a House Fast in a Slow Real Estate Market: A 30-Day Plan for Motivated Sellers

It’s a new year and a new day in Real Estate! As you all know I’m working on a new construction project. After much consideration and table talk with my lawyer, engineer and architect, I decided to build condos. I can fill you in on the details later but the biggest concern is building with safety and making sure I don’t put myself in a position where “bad things” can happen based on neglect or oversight.

With that being said, I found a great site that creates very modern, appealing and easy to see Exit Signs any time of the day. One of the things I learned about rehabbing is that building codes and inspections can make or break a project. It can slow things down to an unbelievable degree. I’m sure that is most definitely true with new construction! With the proper exit, fire extinguisher, and exit routing signs, you can save yourself a lot of time and grief. I would keep this site in your real estate favorites because it can be helpful for commercial business deals. These signs are good for apartment complexes and buildings. You can choose between photoluminescent exit signs or self luminous exit signs. The bottom line is that you do not want to get sued for negligence or because a tenant or visitor said they could not find the exit during an accidental fire. The number one thing that can bring your real estate business to a screeching halt is a law suit. So, plan for safety and keep your business going. Not only with the signs but with adhering to all building code standards and keeping in line with the city’s recommendations. It pays to not cut corners even if you think it will save you a few extra bucks.

I hope this will be a year for new beginnings for those who have not yet taken the first step. Hopefully if real estate investing is your passion, you will have the courage to take that first step.

Happy Real Estate Investing!

Hello Fellow Investors! The last couple of months have been a bit crazy for me. Mostly because the holidays are around and I’ve been with family and friends. Also because I’m taking on a lot more short sales and moving forward with the new construction project I’m working. But as this year is head to a close, I hope that you all have a very Merry Christmas and a Happy New! I’m not big on new year’s resolutions but I am big on setting goals, no matter what stage you are in, in life. If you have never set goals for yourself, why not try? There are many types of goals you may want to set, such as; Spiritual Goals, Cultural Goals; Social Economical Goals, Financial & Career Goals; Physical & Health Goals; and/or Mental & Educational Goals. There is so much to reach for in the course of a life time, let’s try to pace ourselves. Not to get “churchy” on you but my pastor gave a great sermon on goals. I’ll attempt to share it with you.

First, we want to define why it is important to set goals. My pastor gives 5 distinct reasons:

1. Goals set direction in your life & family
2. Goals bring balance to your life
3. Goals set your capabilities: It sobers you to where you are in life today (we all have different starting points)
4. Goals focuses your skills: It channels your energy and resources toward a target
5. Goals harness your energy and resources

As we began to realize the benefit of setting goals, we want to make sure they are not some random “to do” list. We are not just reaching for stars but actual, obtainable things. My Pastor went on to describe 3 Principles to win the goal.

Three Principles in Achieving Your Goals

1. PREPARATION – Get rid of those things that will hinder/hold you back from reaching your goals. You must fully prepare yourself. It will take discipline and action on your part. Evaluate if you really want to obtain the goal (is it of extrinsic or internal value to you?). My Pastor used an acronym to describe adequate preparation for your goal: He called them SMART goals!
   • Specific – Be very specific on the goal you are shooting for
   • Measurable- Make sure you can determine if you’ve reached your goal
   • Achievable- Is this goal reachable?
   • Realistic – Can this goal be obtained by you or is it a farfetched dream?
   • Timely- Set a time table for your goal
2. PARTICIPATION- People play a role in your life and they are there for encouragement. If you have love ones (family or friends) around you, let them help to encourage you in obtaining your goals. Again, remember that those that hinder you should be left behind. Align yourself with people of like mindset or people who have already achieved the goals you are seeking to achieve.
3. PLANNING – Once you have accomplished a previous goal, continue to set new goals. Always have something to reach for to prevent yourself from falling behind. Remember you’re not asked to be perfect or never to fail but if you set SMART goals and work your way through them, you will continue to progress. Have goals for every avenue of your life.

If real estate investing is one of your goals that you were not able to achieve in 2008, don’t give up. Try setting SMART goals to get you started. Prepare for your goals and set a plan in action to execute your goals. Set yourself up for success, start small and work yourself up to the big goals. Remember that it is never too late to reach what you truly desire in your heart. Also remember to have balance in your life. Don’t let your career or money rule over you or make you feel like a failure. Set goals to be well rounded in all facets of life. Your character defines you, not how much money you make or how much money you have. I hope the new year brings new beginnings for you and your family!

Happy Real Estate Investing!

I’m probably going to get a bad reputation in the world or real estate trainers but, oh well! Listen folks, I have no problem with the real estate gurus of the world if they really are gurus. I’m just not settled with the market of selling informational materials and ripping people off at the same time. I’ve befriended an individual that I’ll probably partner up with in the future. Let’s call him Frank. Frank is very new to real estate investing and would like to get started in this market. A month prior to meeting me (around July of 08), Frank bought a package for about $1000, which is great! He really wants to learn to invest in real estate and are taking steps to do so. With that package, Frank is able to talk periodically with his real estate trainer. Frank also likes to surf the web a lot and usually gives his email and phone number to receive free information. A 3rd party company got his contact information and gave him a telemarketing call on September 14th about real estate coaching. During that call, this “Real Estate Guru” (supposedly a business mentoring worldwide group), convinced Frank to purchase a package for $1500 that evening with the promise of training him to build wealth within 6 months. Frank has every right to say yes or no to this offer. Apparently he said, yes. If you have ever been to real estate seminars or been a part of free conference calls, you know they can be very persuasive and aggressive when trying to make a sale. Again, no problem that Frank reluctantly agreed to buy.

One may ask me, how did I know Frank was reluctant to buy if I was not on the call? The answer is, that night, September 14, 2008, he called me right after making the purchase, left me a message sounding very uncomfortable. Frank message asked me to call him back as soon as possible. Unfortunately, I was not able to return his call until the 17th. At this time, I had no idea what he wanted or what had happened. While talking to Frank, he said, “I bought this package for $1500; It’s a real estate coaching course; What do you think about it.” I asked, “what do you think?” Frank immediately expressed his discomfort. He said, “I tried to call you but you weren’t around; Couldn’t you hear my voice; It’s not in me to be the mean guy, I like to make people happy!” Granted, that is a problem Frank need to fix but OK, he bought this real estate coaching package 3 days ago and no longer wanted it. I told Frank to call the company and ask for his money back and tell them you no longer want to enroll in the group. He said OK and made the call. I got a call back 15 minutes later from Frank and he said, the company said it was too late. At that point I was baffled. So I said, (among other things) let’s call on 3-way and this is how the conversation went (see below). The contact person’s name was Jay.

Ring-Ring on September 17, 2008

Jay: Hello
Jersey Girl: Hi, my name is Tamara and I’m calling on behalf of Frank. He purchased a coaching package from you all but would like a refund. Frank said he just spoke to a Jay who informed him it was too late to get the refund. I do not understand what that meant. Can you please clarify? Frank is also on the phone.
Jay: Who is this for again?
Jersey Girl: Frank “Beep”.
Jay: Oh right, It’s too late to get a refund after 3 days.
Jersey Girl: The transaction just went through on his card on the 15th and it’s only the 17th now so he’s well within those 3 days.
Jay: Oh right, OK, if we process a refund for him, he will need to pay 20% in fees.
Jersey Girl: What fees are those?
Jay: We already sent him to a coach and he’s had coaching…that cost us money.
Jersey Girl: He hasn’t been coached yet.
Frank: Jay, I didn’t do the coaching yet. I haven’t even gone through orientation.
Jersey Girl: This transaction just took place 2 days ago.
Jay: Oh, he hasn’t been coached yet?
Jersey Girl: No
Jay: Well there will be a 10% fee
Jersey Girl: 10% for what?
Jay: 10% for swiping the card. Our merchant account is expensive.
Jersey Girl: You don’t pay 10% for a merchant transaction!
Jay: Our merchant account is top of the line and they charge us for swiping the card.
Jersey Girl: That is ridiculous!
Jay: OK well the 20% will apply.
Jersey Girl: You just said 10%, why is it back up to 20%?
Jay: It’s 10% to charge the account and 10% for the refund.
Jersey Girl: You got to be kidding me! So before it was 20% for coaching now it’s 10% to charge him and 10% to give him a refund!
Jay: Yes, again our merchant account is top of the line and it cost us to do the transaction.

Meanwhile in the background I hear something that sounds like, Hi, can I help you?

Jersey Girl: So can we process this refund now?
Jay: Do you want to process this refund or does Frank? It sounds like you are doing all the talking.
Frank: Jay, I really didn’t want the coaching in the first place.
Jay: Well I can’t do it now. I had my calls forwarded and I’m not in the office. Can I have a cheese burger and fries please.
Jersey Girl: What is going on??
Jay: I’m not in the office, I had my calls forwarded to my cell phone, I’m trying to get something to eat.
Jersey Girl: This is crazy. When can you process the refund?
Jay: I can’t take my office with me so it will have to be tomorrow. Call me tomorrow morning and I’ll be able to process that for you.
Jersey Girl: What time tomorrow?
Jay: You’re on the east coast, correct?
Jersey Girl: Yes
Jay: Well I will be in the office at 11AM your time. Call me then.
Frank: OK
Jersey Girl: OK
Jay: Bye
Jersey Girl: Bye
Frank: Bye

We were pleading Frank’s case to get 1500 bucks back over a burger and fries at a drive through window. Folks I can’t make this stuff up! I don’t have the time or energy to do so. That’s why I’m not big on these real estate training gurus. There are good ones out there but in my opinion, too many bad apples. We are talking $1500 that this company wanted to take 20% of for credit card transactions. They really didn’t want to give the refund as you can see from the conversation. Is this a bad or good apple? You be the judge!

Happy Real Estate Investing!