Robert Guthridge's Blog

I interviewed Dean Ueda on the InvestFourMore Real Estate Podcast in 2016. We talked about how he has invested in rental properties in the mainland US while living in Hawaii. Dean also was getting his real estate license and had a couple of properties in Hawaii. On this podcast, we talk to Dean again about the progress he has made with his investing, his real estate license, and how he has bought more properties in the mainland and Hawaii. Click on the green button below to listen to the podcast What did Dean and I talk about on the last The post Podcast 147: Follow-up with Hawaii Real Estate Investor Dean Ueda appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2r4eZg0 via IFTTT

  Housing Market Misnomers One of the biggest misconceptions in residential real estate is that, to be a teardown, a home must first be falling down. Hardly. All “teardown” means is that the home is less valuable than the land underneath it. That can be the case for at least two reasons other than physical condition: One .  The home is undersized relative to its lot size. Dozens (hundreds?) of perfectly habitable ’50’s ramblers in choice Edina neighborhoods have been torn down the last decade or so because they’re simply too small. When a 3 BR, 2 Bath rambler with 1,500 square feet sits on a .30 acre (or bigger) lot in an area of +4,000 square foot homes, it’s destined to be a teardown regardless of its condition, because the neighborhood supports new construction over $1.5 million (note:  if you live on the coasts, add a zero). Two .  Functional obsolescence. Of course, it’s also the case that lots of those ramblers — while in perfectly good condition —...

I bought a Lamborghini Diablo almost 4 years ago. It was a life-long dream to own a Lamborghini, and seeing it arrive in my neighborhood is still one of the best moments of my life. I did not buy the car as an investment, but it has worked out to be a great one. The car has increased in value; it has been a great marketing tool; it has helped me network with some amazing people; and it even got me a real estate deal. It was not an easy decision to buy the car. I bought it much sooner The post Why Buying a Lamborghini was a Great Investment appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2HLAcFG via IFTTT

On this week’s episode of the InvestFourMore Real Estate Podcast, I interview Ryan Dossey. Ryan is a super-successful wholesaler and an investor. Ryan got started in real estate at a very young age and has found incredible success. He is only 24 and has set up a wholesaling business and bought many rentals. Ryan has also helped me with my direct marketing and runs a company that takes motivated-seller calls for investors. One of the biggest reasons I have not done much direct marketing was because I did not want to take calls, but his company takes the calls for The post Podcast 146: Super Successful Wholesaler with 24 Year-Old Ryan Dossey appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2HeGvlT via IFTTT

This has been a crazy year for me so far. I bought a huge building; I have had a lot of flips going; I started a real estate brokerage; and I have had to let people from my team go. It is really easy to get stressed and freak out about everything. But getting stressed and freaking out will not help anything get better. How do I deal with things when they are not going exactly as they should be? How do I deal with stress or the fear that I am making huge mistakes? How do I deal with The post How to Deal with Stress and Doubt in Real Estate appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2qC9iFW via IFTTT

Architectural Wonder The sleek lines, the soaring height, the dramatic coloring — all fused onto a rectangular shape so thin it was hard to believe that it could actually stand up (in fact, the shape evoked nothing so much as a flat panel TV). The latest addition to the Manhattan skyline? Try , General Mills’ new box for Honey Nut Cheerios,. P.S.: Actually, given General Mills’ Minnesota home base, New Yorkers should really be ticked at us. from RSSMix.com Mix ID 8230700 https://ift.tt/2qQMfXQ via IFTTT

On this week’s episode of the InvestFourMore Real Estate Podcast, I interview Ryan Dossey. Ryan is a super-successful wholesaler and an investor. Ryan got started in real estate at a very young age and has found incredible success. He is only 24 and has set up a wholesaling business and bought many rentals. Ryan has also helped me with my direct marketing and runs a company that takes motivated-seller calls for investors. One of the biggest reasons I have not done much direct marketing was because I did not want to take calls, but his company takes the calls for The post Podcast 146: Super Successful Wholesaler with 24 Year-Old Ryan Dossey appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2HeGvlT via IFTTT

Is it good news or bad news that a home scheduled to be on “Broker Tour” — essentially, open houses for local Realtors each Tuesday in the Twin Cities — abruptly cancelled? Answer:  it depends. It’s good news if the reason is that the home received multiple offers, and sold at 11 p.m. Monday night. It’s bad if the vacant home still isn’t shoveled out (in the wake of last weekend’s blizzard), and the listing agent felt compelled to cancel because the walk was too treacherous. Edina Realty – City Lakes agents reported both scenarios at today’s weekly office meeting. from RSSMix.com Mix ID 8230700 https://ift.tt/2qGfaOp via IFTTT

Contractual Void [ 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.] With more listing agents incorporating “Coming Soon!” into their marketing strategy, Buyers’ agents need to be ever-more vigilant. And not just to find “Coming Soon!” properties, which by definition aren’t yet listed on MLS. Once Buyers’ agents have shown such a home, if their clients want to buy it, they need to take care to procure a commission agreement with the listing agent and their broker. No agreement, no commission. That’s because “Coming Soon” homes aren’t governed by the same offer of compensation — known as “the payout commission” — that MLS-listed homes are. Got all that? Fortunately, clients don’t need to worry about such things — just Realtors . . . P.S.: Although, technically, Buyers do need to worry about their ...

The REAL Purpose of Appraisals What is the purpose of an appraisal, in the context of a residential real estate sale? To make sure that, if the Buyer defaults on their loan and the lender ultimately forecloses, the value of the collateral is sufficient to make the lender whole. Or, in plain English:  if the lender gets stuck with the home, it can sell it for at least as much as the mortgage. “Multiple Offers,” Defined Now, consider what happens in multiple offers. The owner lists their home, and not one but several would-be Buyers submit offers.* After sifting through each offer’s strengths and weaknesses, the owner chooses one Buyer to work with, and — after tweaking a few terms (closing date, earnest money, etc.) — ultimately enters into a Purchase Agreement with them. Enter the Appraiser A few weeks later, when the lender’s appraiser shows up, the question they should be asking isn’t, “what is this home’s value, based on the three most recent, similar sales (i.e., the...

This has been a crazy year for me so far. I bought a huge building; I have had a lot of flips going; I started a real estate brokerage; and I have had to let people from my team go. It is really easy to get stressed and freak out about everything. But getting stressed and freaking out will not help anything get better. How do I deal with things when they are not going exactly as they should be? How do I deal with stress or the fear that I am making huge mistakes? How do I deal with The post How to Deal with Stress and Doubt in Real Estate appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2qC9iFW via IFTTT

Savvy Home Buyer Multiple Choice [ 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.] Test your knowledge of today’s housing market, and answer the following question: How can Buyers’ agents (and their clients) tell that a listed home has a major defect? A. The home’s MLS status repeatedly goes from “A” (“Active”) to “A,i” (“Active, Subject to Inspection”), then back to “A.” B. The home’s final selling price was >$30k less than the price it went “Pending” at. C. The Seller told prospective Buyers about it on their Disclosure. D. All of the above. Answer:  “D”. Here’s the explanation: A: Once a home is under contract, MLS rules require that its status be changed to “Active, subject to inspection” (“A,i” for short). Otherwise, Buyers have a funny way of getting upset when they discover a home the...

I started Blue Steel Real Estate last week. It has been an exciting and slightly stressful process. We opened earlier than we thought we would open, but everything has worked out extremely well and I am glad things happened the way that they did. On this episode of the InvestFourMore Podcast, I talk about the move, the process, and how everything has gone so far. You can listen to the podcast by clicking the green button below Why did we have to move early? I was planning to move on June 1st, but my broker asked me to leave early. I The post Podcast 145 Moving into My New Real Estate Brokerage appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2JGlBtg via IFTTT

“Lakeview” vs. “Lakefront” In a state famed for its 10,000 lakes (actually, 11,842), you’d figure that there are a lot of lakefront homes in Minnesota. And there are. But, I’m guessing, not nearly as many as are indicated on MLS. My test for truly qualifying as “lakefront”:  someone can walk barefoot — at least in the Summer — from the property to the waterfront, without crossing anyone else’s property or leaving the subject property. Which means that lots of “For Sale” homes are more properly labeled “across from” a lake, “next to” a lake, or the equivalent. P.S.: Can a Buyer sue a Seller for misrepresenting that a home is “lakefront” property? My hunch is “no,” at least in most cases. That’s because one of the elements for proving misrepresentation is reliance, and someone who’s viewed the property and had a chance to determine that the home isn’t in fact on the lake would no longer be entitled to rely on the Seller’s representation otherwise. ...

Realtors & Clients Parting Ways You can’t take it anymore. Close to the edge for awhile, they finally did something that crossed the line. So, you fire them. Clients axing their Realtor? Try, Realtors firing their clients. Irreconcilable Differences No, I don’t believe it happens that much, because most clients’ expectations and conduct are reasonable, they appreciate their Realtors’ hard work — and their Realtors do a good job (at least that’s what all my clients think of me!). Call it the “Garrison Keillor-esque” view of how real estate works. But Realtors do in fact fire clients — or decline to work for them at all. In my 16(!) years in the business, I’ve “fired” clients twice; both times, it was after they did something that risked getting themselves — and me — sued. Unnh-unh. I’m allergic to lawsuits — and clients who risk them. Opportunity (& Legal) Cost As a former attorney, I know that lawsuits typically produce losers all around, draining everyone’s time...

Earlier this year, I bought a large commercial rental property. One of my goals that went along with buying that property was starting a real estate brokerage. Last week, my real estate office was approved by the Colorado Real Estate Commission. We opened April 6th, which was much sooner than planned. We have a temporary office in one of the units in the building while we remodel our permanent unit. We named the brokerage Blue Steel Real Estate, and I am going to tell you all about it in this article. Why did I start a real estate brokerage? I The post My Real Estate Brokerage, Blue Steel Real Estate, is Open! appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2qi5Ssj via IFTTT

It was only a matter of time that people started using their homes as ATMs.  It is clear that the housing cheerleaders are drinking a mega dose of housing Kool-Aid and somehow think that people are immune from repeating past mistakes.  But here we are seeing cash-out refis hitting pre-crisis levels.  And this assumption is […] from RSSMix.com Mix ID 8230700 https://ift.tt/2GSqt0Z via IFTTT

Rounding Errors Is a rich Seller a less motivated Seller? After all, to a billionaire, what difference does it make if their seaside estate fetches $21 million (or $17 million) instead of $23 million? Certainly, that describes the mindset of some affluent homeowners (ditto for very large estates). However, all that wealth can just as easily promote the opposite mindset:  “we hardly need the money . . . we’ll wait till we get the price we want.” In fact, that patient, hardline stance is often how the very rich became very rich (a rising market also helps). So, which is it? Your Realtor will be able to tell . . .  from RSSMix.com Mix ID 8230700 https://ift.tt/2HgMw0C via IFTTT

“Those who know, don’t talk; and those who talk, don’t know.” –stock market saying. What’s true in the stock market is also true in real estate. Namely, the value of what Realtors call a “Comparative Market Analysis” (“CMA”) that can be had for free is . .  . about what you pay for it . As I tell prospective clients, there are two reasons I don’t do free CMA’s: One .  A home’s fair market value isn’t a static number. On the contrary:  a skilled, experienced Realtor can easily add 10% to 20% to a home’s list price by recommending strategic, cost-effective repairs, updates, and staging prior to putting the home on the market. Two .  Time investment. I don’t know about other Realtors, but, depending on the individual home and the price point, it can take me 3-4 hours to do a rigorous ( read , “accurate”) CMA. First, I identify the subject home’s peer group:  typically, “Sold” homes that are similar in style and features, that have recently closed. But, d...

“Why Are You Selling?” Realtors who aren’t skilled at determining prospective clients’ motivation . . . usually don’t make much money selling real estate . So, how do you tell how motivated someone is? A good starting point is asking them why they’re selling (Duh, right?).  Sometimes, you don’t even have to; lots of prospective clients, in their first phone call or email to a Realtor, will announce that they just got transferred, had (or are expecting) a baby, are downsizing, etc. . . . and therefore need to sell . Even when there’s an obvious circumstance motivating a sale, it’s still a good idea to nail down timing — and, specifically — sense of urgency. There’s a big difference between someone who needs to be in Denver June 1 for a new job, and a self-employed consultant who doesn’t want to go through another Minnesota winter (the latter category probably describes half the people in the Twin Cities right now). Stated vs. Actual Motivation Unlike some Realtors, I don’t...

Earlier this year, I bought a large commercial rental property. One of my goals that went along with buying that property was starting a real estate brokerage. Last week, my real estate office was approved by the Colorado Real Estate Commission. We opened April 6th, which was much sooner than planned. We have a temporary office in one of the units in the building while we remodel our permanent unit. We named the brokerage Blue Steel Real Estate, and I am going to tell you all about it in this article. Why did I start a real estate brokerage? I The post My Real Estate Brokerage, Blue Steel Real Estate, is Open! appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2qi5Ssj via IFTTT

Novice Realtors Rush In Where Pro’s Fear to Tread “Never negotiate furniture.” “Never negotiate furniture.” “Never negotiate furniture.” “Never negotiate furniture.” Realtors who don’t know the above rule — or forget it — soon get the opportunity to (re)learn it. That’s because negotiating the sale of personal property, particularly furniture, can be more challenging than dealing with the preceding house sale . That can be true even though the dollars involved are puny, perhaps only 1% (or less) of the house transaction. I can think of five reasons why negotiating furniture can be such a headache challenge: One .  Unrealistic expectations. Sorry , Sellers, while Buyers are hardly innocent (see #5), in my experience a great many Sellers unwittingly booby-trap the process by starting out with unrealistic expectations. Fair or not, used furniture typically fetches something like 10¢ on the dollar. In some cases, it actually has a negative value ( yup...

Earlier this year, I bought a large commercial rental property. One of my goals that went along with buying that property was starting a real estate brokerage. Last week, my real estate office was approved by the Colorado Real Estate Commission. We opened April 6th, which was much sooner than planned. We have a temporary office in one of the units in the building while we remodel our permanent unit. We named the brokerage Blue Steel Real Estate, and I am going to tell you all about it in this article. Why did I start a real estate brokerage? I The post My Real Estate Brokerage, Blue Steel Real Estate, is Open! appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2qi5Ssj via IFTTT

I started InvestFourMore in March of 2013. It is hard to believe I have been blogging for over five years. When I started the blog, I was still working with my dad, did not have my own team, was still selling a lot of houses as a real estate agent, and had barely written anything except a simple letter since college. Since then, I have written hundreds of articles, recorded 145 podcast episodes, shot hundreds of YouTube videos, and published a number of books. I had no idea what would happen with the blog when I started—I just started writing. The post I Have Been Blogging about Real Estate for Five Years! appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2JefCMn via IFTTT

I started InvestFourMore in March of 2013. It is hard to believe I have been blogging for over five years. When I started the blog, I was still working with my dad, did not have my own team, was still selling a lot of houses as a real estate agent, and had barely written anything except a simple letter since college. Since then, I have written hundreds of articles, recorded 145 podcast episodes, shot hundreds of YouTube videos, and published a number of books. I had no idea what would happen with the blog when I started—I just started writing. The post I Have Been Blogging about Real Estate for Five Years! appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2JefCMn via IFTTT

At Least, the “C” is Easy Even for a veteran Realtor like myself, it’s still possible to be thrown (at least occasionally) by an obscure real estate term. Case in point:  the MLS status “C-APPRE,” which popped up in the archive history of a Linden Hills home that my Buyer client is interested in. On a weekday, I’d simply call the MLS Help Desk, or, check with my Office Manager or a colleague. No such luck today early Saturday morning. Strategy #2: figure it out based on context. So, looking at the listing archive, I saw on the next line “RENTD.” Eureka! I’m gonna guess that “C-APPRE” stands for “Contingent, (Rental) Application Received” (top line in photo above). P.S.:  As opposed to my initial thought — “Contingent on the property appreciating (in the future).” Wouldn’t THAT status be nice?? See also , “MN Association of Realtors Legal Hotline! May I Help You??” from RSSMix.com Mix ID 8230700 https://ift.tt/2uTlB5W via IFTTT

Financing “Vote of Confidence” One of the best, early signs that the Buyer’s lender is on top of things — and a good omen for final underwriting approval generally — is when the lender orders the appraisal for the day after the Buyer’s inspection removal deadline. My logic? While the appraisal will need to be rescheduled if there’s an inspection hiccup, most of the time, there isn’t. So, assuming the inspection goes smoothly, the appraisal will occur as scheduled, without any prodding or follow-up required on the listing agent’s part. In turn, a lender who expeditiously orders the appraisal is signaling that they’ve received the file from the Buyer’s lender, and knows when the Buyer’s Inspection Contingency expires. A lender who knows that date very likely also knows the Written Statement deadline, and the closing date. See also , “ The 2nd Most Important Date in a Home Sale.” from RSSMix.com Mix ID 8230700 https://ift.tt/2GGGYJm via IFTTT

“Minnesota Nice Punctual”: Joining an Already-in-Progress Open House Sort of like being late for your own funeral, I really didn’t think it was possible to be late for your own Sunday open house. After all, you — “you” being the listing/hosting agent — have the keys. Ahhh , but if there’s a showing that overlaps the beginning of the open house . . . the Buyer’s agent already opened the front door.** And, while they’re with their client touring the home, early arrivers saw an open house, and — quite naturally — went in. Which is how I arrived to find a house full of people the other week at an especially popular new Minnetonka listing. P.S.: In my defense:  a) I was less than 5 minutes late; b) Minnesotans are famously hyper-punctual (if not early); and 3) I was delayed because I was getting electronic signatures on a Counter-Offer for said home (it got offers immediately after coming on the market). **Some Buyer’s agents take care to lock the front door while the...

Storied Paper Catches Newsweek-itis No , I’m not predicting that the venerable Wall Street Journal disappears, Cheshire cat-like. Just that the print edition — now down to a relative wisp — ceases print publication altogether. Best guess, based on its accelerating vanishing act (reminiscent of Newsweek’s painful decline): no later than the end of this year. P.S.: No speculation whether — or how many of — The Journal’s subscribers and advertisers ultimately stick with it online. But, I’m not shedding any tears for Mr. Murdoch (as in “Rupert,” whose News Corporation bought  The Journal’s parent company, Dow Jones, in 2007). See also , “Newsweek’s Last Print Issue: 12/31/12 .” from RSSMix.com Mix ID 8230700 https://ift.tt/2uINf5x via IFTTT

Dubious Symbolism Every so often, I actually need to mail something to another agent. Most common example:  an earnest money check, when a Buyer client prefers not to electronically transfer funds, either due to logistics or security concerns. Which means I need a postage stamp, which means I need to choose a postage stamp. To my chagrin the other day, I realized that my only remaining stamps are a snake, a tortoise, and a mouse. Especially with a potentially challenging Buyer’s inspection coming up, the symbols associated with those “pets” may not send exactly the right signal(s) to the other side. I don’t know about other Realtors, but my associations with those particular animals are: meek, submissive (mouse); slow if not glacial response time (tortoise); and cunning, devious (snake). Or, I suppose, they could simply open the letter and not notice . . See also , “The Goldman Sachs Risk”: Sheep, Wolves — and German Shepherds .” from RSSM...

I started InvestFourMore in March of 2013. It is hard to believe I have been blogging for over five years. When I started the blog, I was still working with my dad, did not have my own team, was still selling a lot of houses as a real estate agent, and had barely written anything except a simple letter since college. Since then, I have written hundreds of articles, recorded 145 podcast episodes, shot hundreds of YouTube videos, and published a number of books. I had no idea what would happen with the blog when I started—I just started writing. The post I Have Been Blogging about Real Estate for Five Years! appeared first on Invest Four More . from RSSMix.com Mix ID 8230700 https://ift.tt/2JefCMn via IFTTT