Robert Guthridge's Blog

I have flipped almost 200 houses in my career and I am still learning the business. House flipping can be an amazing business but it can also be very risky and tough to succeed in. Over the years, I have learned quite a few things that keep me successful and making money. House flipping is ... Read more The post Ten Tips to Being a Successful House Flipper appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/358HHON via IFTTT

Millennials are not going to save the housing market.  Home sales volume remains tepid and younger buyers are simply not out in mass buying homes.  The housing market is being driven by Taco Tuesday baby boomers and low sales volume.  We will highlight a few data points that show that Millennials are simply not moving […] from RSSMix.com Mix ID 8230700 https://ift.tt/2rnTtXN via IFTTT

I flip a lot of houses (20 to 30 a year), and once in a while, I find myself watching a house-flipping show on television. In most cases, I get very frustrated because I know what they are producing is not realistic and nothing like flipping in the real world. Some might think house flipping ... Read more The post How Realistic Are House Flipping Television Shows? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2EOZ4JQ via IFTTT

I buy a lot of investment properties from the MLS, but I also buy from wholesalers and other sources. It took some time to find good wholesalers or let them find me, but it was worth it. It can be frustrating because there are a lot of people who call themselves wholesalers who will never ... Read more The post How to Buy an Investment Property from a Wholesaler appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/38Sf9MH via IFTTT

Deciding to become an REO and HUD listing agent was not easy for me, but it was one of the best decisions I ever made. Before I was an REO agent, I struggled to find my niche in real estate. I did not like showing houses and calling people I did not know. Selling REO ... Read more The post How to Become an REO or HUD Listing Broker appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2PwPFLR via IFTTT

Quick Answer: “It Depends — But Usually Less Than Buyers Think” “At the closing table, the Seller will walk away with a check — and whether the money comes from the Buyer or the lender doesn’t matter.” –“ Do Home Buyers Who Pay Cash Get a Discount?” ; The Wall Street Journal. The answer to the question, “how much of a discount should a Seller give/Buyer expect for a cash deal?” depends mainly on two things, and varies a lot more than you might expect from one deal to another. The two variables: 1) the attributes of the home in question (condition, price point, etc.); and 2) the Seller’s patience (or lack thereof). Homes in Disrepair The big variable is usually the condition of the house. At one end of the continuum, there are homes without working heat or plumbing that no lender will give a mortgage on, period. In that situation, a cash offer is the difference between selling or not — and the discount is BIG. Appraising Appraisal Risk Assuming the home is in good repair,...

1 Picture = 1,000 Words   2 Pictures = 2,000 Words If you ever wondered what “millwork” is, these pictures answer it. Specifically, it’s all the visible wood in the house except  the hardwood floors. That includes: built-in’s (buffets, storage, etc.); crown and cove moldings; doors; arches and columns; the beams in a box-beam ceiling; and window framing (a particular favorite of mine are transom windows, which let in additional light). See also , “ Beautiful Built-in’s, Buffet, Millwork .” P.S.:  “mill work” (with a space) is done by workers in a mill (steel, textile, etc.). from RSSMix.com Mix ID 8230700 https://ift.tt/2E0zYHu via IFTTT

True or False On top of the “payout” commission listed on MLS, Sellers will sometimes dangle an extra incentive for Buyers’ agents. The most common (and straightforward) is simply a cash bonus, payable upon successful closing. carrotsHow smart is that — and what situation(s) is that most effective? Read through the following three scenarios, and guess “True” or “False” whether a selling bonus is a good idea. Three Scenarios Scenario #1 : the home in question is competing with lots of similar inventory (price, neighborhood, features, etc.) Answer: True. Especially when Buyers — and Buyers’ agents — are confronted with lots of similar choices, bumping the commission can be a smart way to stand out from the crowd (and presumably, generate showings). Scenario #2 : the home is overpriced. Answer: False. While it would certainly be nice to pay another $2,000 (or $10,000) in commission in lieu of dropping the home’s price a multiple of that amount, unfortunately, that’s not how it...

The most important date in a residential real estate deal? Easy — closing. So, what’s the second most important date? At least in Minnesota, the date that the Buyer’s Written Statement is due.  See , “ You Mean There’s No Deal, AND the Buyer Gets Their Earnest Money Back?!?” Significance Up until that date, all the home Seller really has is a Buyer who wants to buy their home, but doesn’t have their financing yet (and no , the Buyer’s Pre-Approval Letter doesn’t mean the Buyer’s good to go). Once the Buyer provides the Seller with a Written Statement, the Seller is assured that:  1) their home has appraised at the purchase price; and 2) the lender has verified the Buyer’s financial bona fides , and completed underwriting their loan. Equally important, after the Buyer has provided the Seller with the Written Statement, if the Buyer fails to close, the Seller is entitled to keep the Buyer’s earnest money as liquidated damages. See also , “ Written Statements ...

[ 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.] Heads up, 2019 Minnesota home buyers! Anyone who purchased an owner-occupied property in Minnesota in 2019 — and occupied the property by December 1  — needs to apply for Homestead Classification for Minnesota Property Tax before December 15, 2019. Depending on the home’s value, homesteading can result in lower property taxes. Other potential benefits include lower home insurance premiums for owner-occupants; establishing Minnesota for domicile (estate tax) purposes; and, in the event of bankruptcy, qualifying for exclusions available under Minnesota law. Please note that you can only homestead one residential parcel in the State of Minnesota. Questions/Follow-Up If you have questions or wish to learn more about homesteading a property, you ca...

“Trying to stem declining gum sales, Mondelez and other gum makers are coming up with formulas that they say convey additional benefits. Trouble sleeping? There is a gum for that. Other new chewing gums purport to boost energy, alleviate headaches and stimulate weight loss.” –“Chew on This: Gum That Promises to Help You Sleep and Make You Skinny”; The Wall Street Journal (12/3/2019). I suppose it was inevitable. In an era when everything is becoming “smart” — cell phones, TV’s, appliances, water,  you name it — good, old-fashioned chewing gum was due for a makeover. Which just leaves one question: if the new, enhanced version qualifies as “smart,” what do you call the old, low-tech version? My candidate: “dumb gum.” P.S.: my alternative name for smart gum: “custom gum.” See also , “ Coming Soon: “The Bespoke Home??”** .” from RSSMix.com Mix ID 8230700 https://ift.tt/2DKEdqc via IFTTT

Multiple Offers, Momentum Shifts, etc. Unbeknownst to laymen, there is a predictable ebb and flow in the course of each housing transaction, whereupon each side is most (and least) vulnerable to the other. For a Buyer, the point of maximum vulnerability comes early: that would be after they have verbally come to terms to buy a newly listed home that is well-staged, priced, and marketed — but before the Seller has signed everything and delivered the executed contract to the Buyer’s agent. Until that happens, the Buyer risks the emergence of one (or more) competing offers, throwing the house into multiples and effectively voiding any terms they may have verbally agreed to with the Seller (Realtors split about whether it’s ethical for a Seller to do this, but legally it’s quite clear that only written, fully executed contracts are binding). Which is why Buyers’ agents hustle to finish off deals in such situations (or try to; if the Seller drags their feet signing everything, the Buye...

Listing Agents Who Call the Buyer’s Lender As a Buyer’s agent, how can you tell if the listing agent (representing the Seller) is taking your client’s offer seriously? They call the Buyer’s lender — specifically, the lender on the Buyer’s Pre-Approval letter — and verify key information. Like, whether they’ve previously worked with the Buyer; the type of loan being applied for (conventional, FHA, etc.); and any other circumstances likely to affect that Buyer’s creditworthiness — and therefore their odds of getting a mortgage. Qualifying the Buyer — and the Buyer’s Lender When I’m the listing agent, I also like to vet the individual loan officer, their institution (if it’s not a “name brand” like Wells Fargo or U.S. Bank), and generally get a feel for whether they know what they’re doing. As I tell my selling clients, when I receive an offer, before I call them, my first call is to the Buyer’s lender. P.S.: A good omen is when you reach the lender on their cell, the first time ....

Dave Ramsey has gotten many people out of debt and helped many others balance their budgets and live within their means. However, Dave has some interesting advice when it comes to real estate investing. He says that you should only invest in rental properties when you can pay cash for them and they are only ... Read more The post What Dave Ramsey Gets Wrong About Real Estate Investing appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2r5Ul31 via IFTTT

[ Editor’s Note: I’m glad to report that, effective next year, the National Association of Realtors is tightening the rules on so-called pocket listings. I first criticized the practice on this blog more than eight years ago(!) — the post (below) originally appeared May 18, 2011. Please note that 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.]. “Pocket Listings”: Good for Agents, Bad for Clients, or,  “Shhh!  Don’t Tell Anyone My House is for Sale” “Listing agent will not also represent Buyer.” –Clause added to every listing contract I sign. If your Realtor will agree to the foregoing clause — as I do on every listing I’ve ever handled — you don’t need to worry about a “pocket listing.” That’s because the Realtor has forsworn also trying to represent the Buyer in the transaction — and collecting both s...

Or Maybe They Should be Called “Dismaying Jeans” Yeah, yeah , I know what fancy-schmancy retailers mean when they refer to “distressed jeans”: jeans whose various holes and patches somehow make them look chic — and worth a huge mark-up (also referred to as “vintage clothing” in some quarters). My definition of “distressed jeans” is a little different. Namely, it’s the all the jeans I could fit into before Thanksgiving . . . but now can’t. Oh, well. My loss, Salvation Army’s gain (and still in time for a 2019 tax deduction!). from RSSMix.com Mix ID 8230700 https://ift.tt/34F03aG via IFTTT