Robert Guthridge's Blog

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One in a Million 37,000 You could be forgiven for doing a double-take driving past the McDonald’s in Sedona, Arizona (my family and I recently visited). Apparently, it’s the only McDonald’s in the world (out of almost 37,000) where the company’s famously “golden arches” instead are teal (blue-green). I assume the city’s zoning restrictions dictated the departure. from RSSMix.com Mix ID 8230700 http://ift.tt/2pZvBZ8 via IFTTT

The 90-day FHA flip rule has caused me delays on a few flips this year. The rule basically says that FHA financing is not allowed on a house for new buyers that was purchased fewer than 91 days ago by the current owner. If you buy a house, fix it up, and try to sell it to FHA buyers, you will have to wait until you have owned the house for 90 days before you can even accept a contract from those buyers. There are some exceptions for certain sellers—like banks and builders—but for flippers, it is almost impossible to The post How Does the FHA 90-Day Flip Rule Work? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2DxTskv via IFTTT

There is a lot of debate about whether money makes people happy. Some are big believers that money will bring you more happiness, while others feel there is a limit to what money can do. There was a major study done that showed making more money will make you happier, but there is a limit to that correlation once you hit a certain income level. There was another study done that showed making more money will make you happier, and the more money you make, the happier you will be. I have done well in the real estate business with The post Will Money Make You Happy? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2C9WrQB via IFTTT

The 90-day FHA flip rule has caused me delays on a few flips this year. The rule basically says that FHA financing is not allowed on a house for new buyers that was purchased fewer than 91 days ago by the current owner. If you buy a house, fix it up, and try to sell it to FHA buyers, you will have to wait until you have owned the house for 90 days before you can even accept a contract from those buyers. There are some exceptions for certain sellers—like banks and builders—but for flippers, it is almost impossible to The post How Does the FHA 90-Day Flip Rule Work? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2DxTskv via IFTTT

There is a lot of debate about whether money makes people happy. Some are big believers that money will bring you more happiness, while others feel there is a limit to what money can do. There was a major study done that showed making more money will make you happier, but there is a limit to that correlation once you hit a certain income level. There was another study done that showed making more money will make you happier, and the more money you make, the happier you will be. I have done well in the real estate business with The post Will Money Make You Happy? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2C9WrQB via IFTTT

“Hot Housing Market Could Cool Off in 2018” –USA Today headline (12/28/17). Long-time readers of this blog know that I put very little credence in supposed experts’ predictions (or anyone else’s, for that matter ).** Whenever I see a headline like the one in USA Today this morning, I’m reminded of a colleague’s long-ago reaction to an investment property on MLS, where the listing agent helpfully suggested that “rents could be higher.” “ Or, they could be lower . . . ,” my colleague deadpanned. **I think Yogi Berra had it just about right.  His line: “It’s tough to make predictions, especially about the future.” My runner-up favorite:  The Onion’s send-up of — you guessed it — USA Today.  Sample headline: “Puppies — Dogs of the Future??” from RSSMix.com Mix ID 8230700 http://ift.tt/2zItIiR via IFTTT

Example:  Flying Chicago to Denver Roundtrip Ok , so I made up the “missed plane” statistic. But, I don’t think I’m wrong. Here’s the explanation:  when a (over)busy professional books a round-trip ticket from Chicago to Denver, they’re invariably rushing/distracted, etc. when they input their flight times on their smartphone (assuming they do). So, they neglect to switch the departure time of their return flight — one time zone later — to local time. “$#@%!”  I Mean, “Oops!” To see the unfortunate consequences, imagine that the hypothetical Chicagoan’s return flight is 3 p.m. Mountain, but they mistakenly input 3 p.m. Central instead (easy to do:  the default time zone is wherever your home is). On their phone once they’re in Denver, that displays as 4 p.m. — because 3 p.m. Central = 4 p.m. Mountain, one hour later. Unfortunately, by the time the person realizes they have a 3 p.m ., not 4 p.m. flight, they may not be able to get to...

Going on 16(!) years selling residential real estate, I really only have two rules for clients I work with: Rule #1: “Don’t do anything to get yourself — or me! — sued.” Rule #2: “Don’t break Rule #1.” While it’s blissfully rare in Minnesota, home buyers and sellers have been known to depart from the path of the “straight and narrow.”** When that’s the case, it’s crucial for the agent to expeditiously end (or avoid) the relationship, lest they be implicated in their client’s misdeeds. Time Sink As a former attorney, I know full well what a time sink litigation is. I know, too, that good lawyers can parse every phrase and even preposition (“it depends on what the definition of ‘is,’ is”), endlessly belaboring things — and running up fees. I’d rather spend my time selling real estate . . . **The three most typical client transgressions:  1) misrepresentation/fraud on the Seller disclosure; 2) breach of contract; and/or 3) discrimination (race/creed/color). See also , ...

Beware “One Size Fits All” Approaches Leave it to one sales book — in this case, “Ninja Selling” by Larry Kendall — to point out the fatal flaw in almost all other Sales “how to” books. According to Kendall: “Many sales books and training programs have been developed by top salespeople who share the techniques that worked for them. Many of these people have what we call “big power personalities,” and their techniques work because of their power personalities . . . What about a selling system that works for the rest of us? Those of us who are introverts? Or people who may be uncomfortable with combative selling or power tactics?” –Preface, “The Ninja Way”; Larry Kendall Which begs the obvious question:  are there universal sales techniques, that can be applied regardless of the salesperson’s style or personality? I’ll let you know when I finish Kendall’s book . . .   from RSSMix.com Mix ID 8230700 http://ift.tt/2zk6Eqr via IFTTT

How to Know When: Four Signs Just because a home hasn’t sold doesn’t mean that the Realtor is doing a bad job. But, if your home is lingering on the market, it’s imperative to know why. Here are four signs that the problem may not be your home, but your Realtor. One . Mediocrity (or worse). Fortunately, egregious Realtor ineptitude is usually easy to spot. Examples include omitting or misstating key information about your home on the Multiple Listing Service (“ MLS “) database or marketing materials; lack of familiarity with the contracts you’ve been asked to sign; and/or thinking a “Broker Tour” is when area real estate brokers give office tours (it’s when Realtors hold new listings open for the benefit of their colleagues — at least in the Twin Cities, each Tuesday from 11 a.m. to 1 p.m.). Not as obvious, but just as harmful, is when your Realtor fails to showcase your home’s best selling points — in which case, other Realtors and the public are likely to miss them, too. ...

“Hot Housing Market Could Cool Off in 2018” –USA Today headline (12/28/17). Long-time readers of this blog know that I put very little credence in supposed experts’ predictions (or anyone else’s, for that matter ).** Whenever I see a headline like the one in USA Today this morning, I’m reminded of a colleague’s reaction to a long-ago investment property on MLS, where the listing agent helpfully suggested that “rents could be higher.” “ Or, they could be lower . . . ,” my colleague deadpanned. **I think Yogi Berra had it just about right.  His line:  “It’s tough to make predictions, especially about the future.” My runner-up favorite:  The Onion’s send-up of — you guessed it — USA Today.  Sample headline:  “Puppies — Dogs of the Future??” from RSSMix.com Mix ID 8230700 http://ift.tt/2zItIiR via IFTTT

You constantly hear that owning a home is a no brainer in California because you will always get major tax benefits.  Well the new GOP tax plan is actually going to benefit California renters while California homeowners in crap shacks will see higher tax bills.  It is an interesting tax proposal because the typical US […] from RSSMix.com Mix ID 8230700 http://ift.tt/2DTbUVw via IFTTT

You constantly hear that owning a home is a no brainer in California because you will always get major tax benefits.  Well the new GOP tax plan is actually going to benefit California renters while California homeowners in crap shacks will see higher tax bills.  It is an interesting tax proposal because the typical US […] from RSSMix.com Mix ID 8230700 http://ift.tt/2DTbUVw via IFTTT

Example:  Flying Chicago to Denver Roundtrip Ok , so I made up the “missed plane” statistic. But, I don’t think I’m wrong. Here’s the explanation:  when a (over)busy professional books a round-trip ticket from Chicago to Denver, they’re invariably rushing/distracted, etc. when they input their flight times on their smartphone (assuming they do). So, they neglect to switch the departure time of their return flight — one time zone later — to local time. “$#@%!”  I Mean, “Oops!” To see the unfortunate consequences, imagine that the hypothetical Chicagoan’s return flight is 3 p.m. Mountain, but they mistakenly input 3 p.m. Central instead (easy to do:  the default time zone is wherever your home is). On their phone once they’re in Denver, that displays as 4 p.m. — because 3 p.m. Central = 4 p.m. Mountain, one hour later. Unfortunately, by the time the person realizes they have a 3 p.m ., not 4 p.m. flight, they may not be able to get to...

Going on 16(!) years selling residential real estate, I really only have two rules for clients I work with: Rule #1: “Don’t do anything to get yourself — or me! — sued.” Rule #2: “Don’t break Rule #1.” While it’s blissfully rare in Minnesota, home buyers and sellers have been known to depart from the path of the “straight and narrow.”** When that’s the case, it’s crucial for the agent to expeditiously end (or avoid) the relationship, lest they be implicated in their client’s misdeeds. Time Sink As a former attorney, I know full well what a time sink litigation is. I know, too, that good lawyers can parse every phrase and even preposition (“it depends on what the definition of ‘is,’ is”), endlessly belaboring things — and running up fees. I’d rather spend my time selling real estate . . . **The three most typical client transgressions:  1) misrepresentation/fraud on the Seller disclosure; 2) breach of contract; and/or 3) discrimination (race/creed/color). See also , ...

Beware “One Size Fits All” Approaches Leave it to one sales book — in this case, “Ninja Selling” by Larry Kendall — to point out the fatal flaw in almost all other Sales “how to” books. According to Kendall: “Many sales books and training programs have been developed by top salespeople who share the techniques that worked for them. Many of these people have what we call “big power personalities,” and their techniques work because of their power personalities . . . What about a selling system that works for the rest of us? Those of us who are introverts? Or people who may be uncomfortable with combative selling or power tactics?” –Preface, “The Ninja Way”; Larry Kendall Which begs the obvious question:  are there universal sales techniques, that can be applied regardless of the salesperson’s style or personality? I’ll let you know when I finish Kendall’s book . . .   from RSSMix.com Mix ID 8230700 http://ift.tt/2zk6Eqr via IFTTT

How to Know When: Four Signs Just because a home hasn’t sold doesn’t mean that the Realtor is doing a bad job. But, if your home is lingering on the market, it’s imperative to know why. Here are four signs that the problem may not be your home, but your Realtor. One . Mediocrity (or worse). Fortunately, egregious Realtor ineptitude is usually easy to spot. Examples include omitting or misstating key information about your home on the Multiple Listing Service (“ MLS “) database or marketing materials; lack of familiarity with the contracts you’ve been asked to sign; and/or thinking a “Broker Tour” is when area real estate brokers give office tours (it’s when Realtors hold new listings open for the benefit of their colleagues — at least in the Twin Cities, each Tuesday from 11 a.m. to 1 p.m.). Not as obvious, but just as harmful, is when your Realtor fails to showcase your home’s best selling points — in which case, other Realtors and the public are likely to miss them, too. ...

Balance Sheet vs. Income Statement Effects “It’s too soon to tell.” –Chinese premier Mao Zedong in the late 1940’s, when he was asked what he thought about The French Revolution. I know what Mao Zedong would have said about the gargantuan, $1.3 trillion tax reform bill just passed by the Republicans (zero Democrats voted in favor). In truth, it’s likely to take a couple of tax or even business cycles before the effects are clear. In other words . . . years . As bad as the early press is, I do see one mitigating circumstance — assuming it doesn’t suddenly go “poof!” That is, the pronounced wealth effect rippling through the middle and upper echelons of the U.S. economy right now, thanks to the record stock market (never mind various, dubious sideshows, like the current mania for Bitcoin and other so-called crypto-currencies). “Trump Bump?” To see how such gains might play out, imagine a middle-aged, middle class couple who has managed to squirrel away a couple hundred grand in...

Good Faith Gesture:  “Sold, Subject to Inspection” As veteran Realtors (if not their clients) know all too well, it ain’t officially a deal until all parties have signed, and the Purchase Agreement and any Addenda have been delivered to the other party (actually, their agent). Lots of Buyers learn that painful truth each year when, in the throes of multiple offers, what they believed was a done deal suddenly vanishes in the face of an un-dotted i — and an even more attractive offer from a competing Buyer. Verbal vs. Written Agreement Unfortunately, logistics don’t always allow for all parties to immediately sign once there’s verbal agreement on terms. The Seller may be traveling, and unable to get to a computer. There may be multiple Sellers in different parts of the country, if the home is part of an estate. The Seller may be elderly, and need help with electronic signatures. Or, they don’t have a computer ( see , “elderly”), and their agent needs to physically meet wit...

Proof That High Pressure Sales Tactics Don’t Work At least in my experience, the odds of any one showing leading to a consummated transaction are perhaps 1 in 10. The exception to that? If the Buyer’s agent is headed to the airport, or otherwise under acute time pressure. When that’s the case, I’d estimate that the odds of the showing leading to a deal conservatively double (to a still-low 2-in-10). Reverse Psychology What might account for that? I can think of two reasons: One .  Realtor on a time deadline = no sales pressure. In contrast to a “regular” showing, a Realtor who needs to be someplace else wants the showing to go badly — so they can lock up the house and get out of there! So, there’s no extolling the updated Kitchen, pointing out the beautiful backyard, or the lovely block. Instead, the subliminal message clients get is:  ‘don’t  buy this home.’ It’s amazing how, when that’s the agent’s mindset, clients suddenly want to make sure they’re not ov...

There is a lot of debate about whether money makes people happy. Some are big believers that money will bring you more happiness, while others feel there is a limit to what money can do. There was a major study done that showed making more money will make you happier, but there is a limit to that correlation once you hit a certain income level. There was another study done that showed making more money will make you happier, and the more money you make, the happier you will be. I have done well in the real estate business with The post Will Money Make You Happy? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2C9WrQB via IFTTT

You constantly hear that owning a home is a no brainer in California because you will always get major tax benefits.  Well the new GOP tax plan is actually going to benefit California renters while California homeowners in crap shacks will see higher tax bills.  It is an interesting tax proposal because the typical US […] from RSSMix.com Mix ID 8230700 http://ift.tt/2DTbUVw via IFTTT

Example:  Flying Chicago to Denver Roundtrip Ok , so I made up the “missed plane” statistic. But, I don’t think I’m wrong. Here’s the explanation:  when a (over)busy professional books a flight from Chicago to Denver, they’re invariably rushing/distracted, etc. when they input their flight times on their smartphone (assuming they do). So, they neglect to switch the departure time of their return flight — one time zone later — to local time. “$#@%!” “Oops!” To see the unfortunate consequences, imagine that the hypothetical Chicagoan’s return flight is 3 p.m. Mountain, but they mistakenly input 3 p.m. Central instead (easy to do:  the default time zone is wherever your home is). On their phone once they’re in Denver, that displays as 4 p.m. — because 3 p.m. Central = 4 p.m. Mountain, one hour later. Unfortunately, by the time the person realizes they have a 3 p.m ., not 4 p.m. flight, they may not be able to get to the airport in time. F...

Going on 16(!) years selling residential real estate, I really only have 2 rules for working with clients: Rule #1: “Don’t do anything to get yourself — or me! — sued.” Rule #2: “Don’t break Rule #1.” At least in my case, strictly adhering to those rules has helped keep me out of trouble. No , not every client can be kept on the “straight and narrow.”** But, when that’s the case, it’s crucial to (very) quickly part paths, lest you be implicated in their misdeeds — or worse, required to defend them. Time Sink As a former attorney, I know full well what a time sink litigation is. I know, too, that good lawyers can parse every phrase and even preposition (“it depends on what the definition of “is,” is”), endlessly belaboring things — and running up fees. I’d rather spend my time selling real estate . . . **The most typical client transgressions:  1) misrepresentation or even fraudulent Seller disclosure; and 2) breach of contract. from RSSMix.com Mix ID 8230700 http://if...

Beware “One Size Fits All” Approaches Leave it to one sales book — in this case, “Ninja Selling” by Larry Kendall — to point out the fatal flaw in almost all other Sales “how to” books. According to Kendall: “Many sales books and training programs have been developed by top salespeople who share the techniques that worked for them. Many of these people have what we call “big power personalities,” and their techniques work because of their power personalities . . . What about a selling system that works for the rest of us? Those of us who are introverts? Or people who may be uncomfortable with combative selling or power tactics?” –Preface, “The Ninja Way”; Larry Kendall Which begs the obvious question:  are there universal sales techniques, that can be applied regardless of the salesperson’s style or personality? I’ll let you know when I finish Kendall’s book . . .   from RSSMix.com Mix ID 8230700 http://ift.tt/2zk6Eqr via IFTTT

How to Know When: Four Signs Just because a home hasn’t sold doesn’t mean that the Realtor is doing a bad job. But, if your home is lingering on the market, it’s imperative to know why. Here are four signs that the problem may not be your home, but your Realtor. One . Mediocrity (or worse). Fortunately, egregious Realtor ineptitude is usually easy to spot. Examples include omitting or misstating key information about your home on the Multiple Listing Service (“ MLS “) database or marketing materials; lack of familiarity with the contracts you’ve been asked to sign; and/or thinking a “Broker Tour” is when area real estate brokers give office tours (it’s when Realtors hold new listings open for the benefit of their colleagues — at least in the Twin Cities, each Tuesday from 11 a.m. to 1 p.m.). Not as obvious, but just as harmful, is when your Realtor fails to showcase your home’s best selling points — in which case, other Realtors and the public are likely to miss them, too. ...

On this episode of the InvestFourMore Real Estate Podcast, I interview Rick Allen and TJ Osterman who created Paperstac. Paperstac is a company that helps investors find, buy, and sell performing and non-performing notes on real estate. Rick and TJ both have extensive experience investing in real estate themselves. They have bought and sold over 400 homes before they got into the note business. I talk to both Rick and TJ to learn how they got into real estate, what they love about the real estate note business, and how others can get into it as well. Click on the The post Podcast 132 How to Invest in Real Estate with Non Performing Notes with Paperstac appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2pcenHB via IFTTT

Balance Sheet vs. Income Statement Effects “It’s too soon to tell.” –Chinese premier Mao Zedong in the late 1940’s, when he was asked what he thought about The French Revolution. I know what Mao Zedong would have said about the gargantuan, $1.3 trillion tax reform bill just passed by the Republicans (zero Democrats voted in favor). In truth, it’s likely to take a couple of tax cycles (i.e., years) before the effects are clear. As bad as the early press is, I do see one mitigating circumstance — assuming it doesn’t suddenly go “poof!” That is, the pronounced wealth effect rippling through the middle and upper echelons of the U.S. economy right now, thanks to the record stock market (never mind various, dubious sideshows, like the mania for Bitcoin and so-called crypto-currencies currently running rampant). Trump Bump? To see how such gains might play out, imagine a middle-aged, middle class taxpayer who has managed to squirrel away a couple hundred grand in their 401(k) or othe...

Good Faith Gesture:  “Sold, Subject to Inspection” As veteran Realtors (if not their clients) know all too well, it ain’t officially a deal until all parties have signed, and the Purchase Agreement and any Addenda have been delivered to the other party (actually, their agent). Lots of Buyers learn that painful truth each year when, in the throes of multiple offers, what they believed was a done deal suddenly vanishes in the face of an un-dotted i — and an even more attractive offer from a competing Buyer. Verbal vs. Written Agreement Unfortunately, logistics don’t always allow for all parties to immediately sign once there’s verbal agreement on terms. The Seller may be traveling, and unable to get to a computer. There may be multiple Sellers in different parts of the country, if the home is part of an estate. The Seller may be elderly, and need help with electronic signatures. Or, they don’t have a computer ( see , “elderly”), and their agent needs to physically meet wit...

Proof That High Pressure Sales Tactics Don’t Work At least in my experience, the odds of any one showing leading to a consummated transaction are perhaps 1 in 10. The exception to that? If the Buyer’s agent is headed to the airport, or otherwise under acute time pressure. When that’s the case, I’d estimate that the odds of the showing leading to a deal conservatively double (to a still-low 2-in-10). Reverse Psychology What might account for that? I can think of two reasons: One .  Realtor on a time deadline = no sales pressure. In contrast to a “regular” showing, a Realtor who needs to be someplace else wants the showing to go badly — so they can lock up the house and get out of there! So, there’s no extolling the updated Kitchen, pointing out the beautiful backyard, or the lovely block. Instead, the subliminal message clients get is:  ‘don’t  buy this home.’ It’s amazing how, when that’s the agent’s mindset, clients suddenly want to make sure they’re not ov...

At the start of this year, I had a goal to buy 30 fix and flips, which I did not quite get to. I ended up buying 26, but I may still buy a couple more before the end of the year. I will not reach my flip-purchasing goal, but I also bought 4 rental properties, which I was not expecting this year. I stopped buying rentals in 2015 when the market went crazy with price appreciation. If you count all my rental and fix-and-flip properties, I have already bought 30 and may get up to 31 or 32 by The post How I Have Been Able to Buy 30 Investment Properties This Year appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2j9BlJc via IFTTT

I have operated my blog for over four years and have talked to a lot of people over that time. Many people want to invest in real estate, but few actually do it or stick with it. I do not like to use the word fail, but many prospective investors set out to buy real estate and never do. I think failure results from giving up before accomplishing something, not simply having things go differently than you had planned. On this episode of the InvestFourMore Real Estate Podcast, I talk about why so many people who want to invest in The post Podcast 131: Why Do Most Prospective Real Estate Investors Fail? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2CiIsGY via IFTTT

“Calendar Days” vs. “Business Days” [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.] In general, there’s been a trend (at least in Minnesota) towards lengthening the inspection and document review periods (required for multi-family housing), while simultaneously redefining the time period in terms of “calendar” vs. “business” days. At least in theory, those changes make for less client (and Realtor!) confusion when it comes to calculating key deadlines. So, what had formerly been defined as 6-8 business days is now typically 10 calendar days. With me so far?? Fly in Ointment The one fly in the ointment using calendar days is during holiday periods — no more so than during the Christmas-to-New Year’s interval. In other words . . . now. Consider a deal consummated this Friday (Dec. 22), with...

Listing Agent Retort:  “I’ll Tell You Right After You Tell Me How High the Buyer is Willing to Go” You (almost) never hear a listing agent (representing a Seller) say to a Buyer’s agent at the outset of negotiations:  “let’s cut to the chase; what’s the most your Buyer will pay for my client’s property?” So, why do Buyers’ agents — or at least inexperienced ones — feel emboldened to ask listing agents, “so, what’s your client’s real bottom line here?” Or perhaps more to the point:  what good listing agent — assuming they knew the answer — is going to spill?? (in fact, the three cards you never show in real estate negotiation are your client’s price, terms, and motivation). “Lowish” vs. “Lowball” You certainly can’t blame Buyers for verbally probing a Seller’s bottom line, prior to making a written offer. Besides trying to flush out a motivated Seller, it’s about saving time:  if the Seller isn’t amenable to a low offer, the would-be lowballer saves time writin...

In a business where guaranties should be view skeptically, how can you know for sure that the Buyer’s final walk-thru inspection will be uneventful? Answer:  they waive it.  At least in my experience, it’s a (very) rare occurrence. But, it’s associated with one (or more) of the following three factors:  1) the home is dated, and the Buyer is planning to do major renovation, post-closing; 2) it’s a quick closing (relatively little time has elapsed between the Buyer’s inspection and closing); and 3) the weather locally has been uneventful (no recent hailstorms, tornadoes, or Winter thaw-triggering ice dams). See also , “ Remind Buyer to Do Their Walk-Thru Inspection? Depends Who You’re Representing “; “ What if the Seller Isn’t Moved Out Before Closing? “; “ Walk-Thru?  What’s a Walk-Thru??” ; and “ Home Buyer’s Final Walk-Through Inspection .“ Plus: “ What if the Seller Isn’t Moved Out by Closing? “; ” Springing a Leak — or a Lake(?!?) — Befo...

At the start of this year, I had a goal to buy 30 fix and flips, which I did not quite get to. I ended up buying 26, but I may still buy a couple more before the end of the year. I will not reach my flip-purchasing goal, but I also bought 4 rental properties, which I was not expecting this year. I stopped buying rentals in 2015 when the market went crazy with price appreciation. If you count all my rental and fix-and-flip properties, I have already bought 30 and may get up to 31 or 32 by The post How I Have Been Able to Buy 30 Investment Properties This Year appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2j9BlJc via IFTTT

Counting Down to December 31 December 29 At least for Buyers’ agents, the answer to the question, “should I close on my home purchase in 2017, before any new tax laws take effect?” is easy:  “consult your tax advisor.” Fortunately, agents  are able to field a related question: “is it still possible to close in 2017?” Closing Hurdles Whether a 2017 close is still in the cards, timing-wise, depends on two things:  1) what stage is the deal currently at?; and 2) what is the status of the owner’s title? In general, if the Buyer’s loan is already underwritten (or they’re paying cash), and the title is clean (there are no liens or other encumbrances), in theory it should still be possible to close before 2018 — now just 9 business days away.** **The last business day of the year is Friday, December 29. P.S.: There’s an apocrphyal story about former Illinois Senator and two-time Democratic Presidential nominee Adlai Stevenson, w...

Leads, Serious Leads . . . & Tire Kickers After hosting a couple hundred (thousand?) weekend open houses, I still learn useful things about Buyers — as well as the home I’ve been hired to sell. Which is why I do ’em (vs. letting newer agents pinch hit for me). The most important insight? It’s not what prospective Buyers say — it’s their all about their body language, and what they do. Minnesota Stoicism When Buyers have interest, they linger in the house; ask serious questions; and circle back to key rooms. When they don’t . . . they leave the sales literature on a coffee table near the front door before they walk out. Personalities vary dramatically, so it’s not always possible to tell when someone’s excited about a house (this IS Minnesota). But, generally speaking, when there’s interest, Buyers are more animated and engaged. Objective Markers Of course, an experienced agent is also good at qualifying traffic, and eliciting motivation. I tend to think of Buyer inter...

I have operated my blog for over four years and have talked to a lot of people over that time. Many people want to invest in real estate, but few actually do it or stick with it. I do not like to use the word fail, but many prospective investors set out to buy real estate and never do. I think failure results from giving up before accomplishing something, not simply having things go differently than you had planned. On this episode of the InvestFourMore Real Estate Podcast, I talk about why so many people who want to invest in The post Podcast 131: Why Do Most Prospective Real Estate Investors Fail? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2CiIsGY via IFTTT

It used to be a given that buying a house was a good idea. When you buy a house, you are putting money toward paying off the mortgage instead of wasting it on rent. There has been growing sentiment that renting a house could be better than buying one and that a house is no longer a good investment. There was even a study done that showed renting a house was a better financial decision for many people. However, that study stated their results were based on people reinvesting all the money they saved on renting. The study went on The post Is a House a Good Investment? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2nPyFpB via IFTTT

“You’re Being Supercilious”: Compliment or Dis? Normally, when you think of the adjective “super,” you think in terms of . . . superlatives (see my point?). Examples include the “Super Bowl”; McDonalds’ “Super size me!” (used to be the food; now, all too often, it’s the customers); “Superintendant” (= top dog); and even Mary Poppins’ “Supercalifragilisticexpialidocious” (presumably even better than merely “califragilisticexpialidocious” ). Exceptions But, it’s not always the case that “super” means bigger and better. In fact, it might be more accurate to think of the word simply as a magnifier. So, “superannuated” means obsolete or out-of-date. Meanwhile, “supercilious” means arrogant or haughty. See also , “ NY Times Gaffe: “Energize” and its Phantonyms “; “ Time to Pivot Away From the Word “Pivot” “; and “ “You’re . . . You’re . . . Such an Almond!” (Huh??) .” Plus:   “ What’s the Past Tense of Sight See ?”;  “Landmark — or Watermark ?”; “ Dried vs. MORE Dried Apr...

Beauty in the Eye of the Beholder Buyer When should a listing agent (representing the Seller) explicitly market that a home “needs cosmetic updates” (or the equivalent)? Less often than you might guess. Here are my three reasons why: One . The pictures tell the story. Most MLS’s allow 24 photos; websites like EdinaRealty.com effectively allow an unlimited number. Given all that exposure, the listing agent hardly needs to tell prospective Buyers that the home “just needs your decorating touches” — they can see for themselves (note:  the asking price often suggests that as well). Two . “Beauty is in the eye of the beholder.”  Yes, many (if not most) Buyers might agree that a given house is dated. However, it’s always possible that the Buyer loves the home just the way it is. In that case, conceding that the home is dated is essentially an unforced error that hurts the Seller’s negotiating power (and sales price). Case in point:  the basement Tiki bar in a Fern H...

I have operated my blog for over four years and have talked to a lot of people over that time. Many people want to invest in real estate, but few actually do it or stick with it. I do not like to use the word fail, but many prospective investors set out to buy real estate and never do. I think failure results from giving up before accomplishing something, not simply having things go differently than you had planned. On this episode of the InvestFourMore Real Estate Podcast, I talk about why so many people who want to invest in The post Podcast 131: Why Do Most Prospective Real Estate Investors Fail? appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 http://ift.tt/2CiIsGY via IFTTT

How Citibank Handles Its Customers’ Personal Information [ Editor’s Note : The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] “A rose by any other name would smell as sweet.” –“Romeo & Juliet”; Shakespeare Americans are taught practically from the crib to share. “Share your toys,” “share your snack,” “share your (lunch) table.” As adults, thanks to technology, we can now share our homes (Airbnb); our cars (Uber, Lyft); and, for the so inclined, the minutiae of our daily lives (Facebook). You might even say that we live in a “sharing economy.” Channeling Mr. Rogers Which is no doubt why Citicorp, when it comes to disclosing how it handles customers’ personal information, opts for the word “share.” Instead of, say , “sell.” Citigroup informs clients: “If you are a new customer, we can begin sharing your information 30...

A Win For the Luddites (or, ARE They??) What if there was a home security system that had all of the following virtues:  it was simple and easy-to-use; (very) cheap; crash-proof; hack-proof; and never needed a software patch, update, or monthly subscription? Fortunately, there is. Give up? It’s called, “a key” (or, if you want to be more specific, “an analog key”). Online vs. Off/Digital vs. Analog If only the same could be said for integrated, Internet-based security systems, and the vanguard of such products, including Google’s “Nest” home control system. I certainly understand the appeal for hotels, hospitals, and other institutions, which combine high turnover and professional management (including tech support). But, for run-of-the-mill single family homes, I see no compelling benefit to “online” compared to “off.” P.S.: I feel the same way about paper. See also , “Realtors Who Keep Paper Records Are Luddites, Right? Wrong! ; “New Homeowner “To Do” List: ...

Proposed(?) Realtor Publicity Stunt No , as a Twin Cities Realtor, I’m not holding my breath waiting for an email or text from a colleague trumpeting a price reduction — or even a list price — in Bitcoin. As attention-getting as that might be (no doubt, what caused a client to suggest that to me recently). Whatever Bitcoin is, it ain’t a store of value — and it certainly isn’t stable. A month ago, at $10k/per, a home worth 40 Bitcoin would have had a fair market value of $400,000. Assuming Bitcoin trips $20,000 sometime soon — a reasonable guess given it’s hyperbolic appreciation — that same house would be worth $800,000. Go figure. Literally . . .  **In dollars, assuming a value (if you can call it that) of $20,000 per Bitcoin, that means the house was selling for $800,000, and has been reduced to $760,000. See also , “ Can You Buy a House with Bitcoins? “; “The Bitcoin Bubble”: Why I’m Rooting for Bitcoin to Go to $10,000, $20,000 or Even +$100,000(!!)” ; and “ Bitcoin...

The usual pecking order for agent networking at weekly broker meetings — at least in the Twin Cities, typically held on Tuesday mornings, before Broker Tour — is “New Lists,” “Pre-list’s,” “Price reductions,” “Buyer Needs,” and finally, “Rental Needs.” At the height of the Spring market, there could easily be 20-30 properties that Edina Realty – City Lakes agents are seeking to plug to their colleagues. In mid-December . . . not so much. Fair Game I wouldn’t do it in April, but in December I think it’s fair game:  at this week’s meeting, I (briefly) networked a Minnetonka listing I’m working on now, that likely won’t be on the market till early March. No street address or even a firm price, but just enough detail that an eager Buyer’s agent will be able to find me. Call it a “Pre-Pre-List.”  P.S.: So , what’s a “Pre-Pre-Pre-List?” My definition:  an upcoming listing where a homeowner has indicated they plan to hire me, but hasn’t signed a...