Robert Guthridge's Blog

RPR takes its annual look at digital applications that real estate pros can apply to their business. Read on to learn how digital apps such as Punkpost, Quigler, Updater and Proofhub are helping REALTORS® sharpen their skills and up their game. from RSSMix.com Mix ID 8230700 https://ift.tt/32BMfgR via IFTTT

I wrote a plan in 2013 outlining my goal to buy 100 rental properties. I created this plan because I wanted a huge goal that would push and motivate me. I have not come close to reaching that goal, mostly because I stopped buying houses when the market increased so much in Colorado. In 2017, ... Read more The post My Goal to Buy One Million Square Feet of Rental Properties appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/2VjdZFC via IFTTT

Clayton Morris is a real estate investor and used to be the host of Fox and Friends on Fox News. He took about $5,000,000 in referral fees for selling turn-key rental properties. He has also been accused of scamming hundreds of investors by selling properties that were not rehabbed, or not even built, in some ... Read more The post Clayton Morris and the Morris Invest Fraud Accusations appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/38PDd22 via IFTTT

Retail vs. Wholesale Open Houses One of the best, early omens for a new listing is when agents leaving the Broker Open casually toss off compliments like “nice listing,” “good job!,” or simply “congratulations.” What’s another? When several newer, less experienced agents contact you, asking if they can hold a weekend open house at your listing. Sunday Open vs. Broker Tour As opposed to a “wholesale” open house — held for fellow Realtors each Tuesday, at least in the Twin Cities — weekend open houses are intended for a retail crowd. While many listing agents (myself included) like to do their own open’s, especially the first one or two, many experienced agents are happy to delegate weekend open’s. Hosting such open houses is a time-tested way for newer, less experienced agents to find unrepresented Buyers. Meanwhile, that frees up the (veteran) listing agent to work with their Buyer clients — or cover an open house at another listing — while still making sure that their client’...

Five-Step Checklist One of the last steps before closing — in fact, sometimes done on the way to closing* — is the Buyer’s walk-thru. To my mind, at least, the Buyer’s walk-thru has these five goals: One . Determine that there’s been no change in the home’s condition since the Inspection Contingency was removed. What can happen to a house in 4-6 weeks (the usual interval between the Buyer’s Inspection and Closing)? Unfortunately, in severe climates like the Upper Midwest, A LOT; things such as ice dams, hail damage, and flooded basements all come to mind. Assuming that the home isn’t being sold “As Is,” “no change in condition” also means that the home’s HVAC and appliances are also still in working order. Two . Make sure that there is no damage that may have been concealed by the owner’s furniture, floor coverings, etc. If the hardwood floors under the Oriental rug in the Living Room have typical wear-and-tear, no problem.  See , “ How to Blow a Seller’s Goodwill — and a ...

“Outlier” Comp’s — Both High & Low Wanna guess the single best way, bar none, to know for sure the Seller got a (very) good price for their home? It’s not whether the house sold especially fast, for full price (or higher!), or even received multiple offers. Give up? It’s when the listing agent (representing the Seller) receives a phone call from an appraiser a few months after the sale closed, perplexed about the home’s seemingly too-high selling price. Perplexed Appraiser There are only two things that pique appraisers’ interest: 1) Comps (“Comparable Sold Properties”) that appear to have sold for too much; and 2) Comp’s that appear to have sold for too little. When that’s the case, appraisers will contact the listing agent to get the scoop. And a good, veteran agent will give it to them. Statute of Limitations Of course, the majority of the time, appraisers can find three Comp’s that support the sales price of the property they’re trying to value. So, there’s no need ...

Easier Sell in Summer? The problem with tuck under garages is what’s “over” the “under”: usually, a bedroom. If that bedroom happens to have hardwood floors, and it’s Minnesota in the winter . . . it can be unpleasantly cold. The two other problems with tuck under garages: 1) they tend to be single stall; and 2) the owner has to walk up a flight of stairs to get to the main level Kitchen (not so easy with groceries — plus maybe a kid or two). Functional Obsolescence Of course, single stall, tuck under garages typically go with a couple other things as well: older (but solid!) construction; one hall bath (i.e., no private master bath); and smaller, dated Kitchens. The Realtor term for those features is “functionally obsolete” (it still works, but it’s dated). On the plus side? The neighborhoods where these kinds of homes predominate are typically closer in, and can be a very good value. P.S.: At least in Winter, maybe Sellers of homes with tuck under garages should reconsi...

Rental properties can be a wonderful investment, but they come with a few catches. 1. It takes time to learn the right way to buy them, finance them, and manage them, and it takes time to learn what a good rental property is. 2. Not every market has great rental properties. My blog and books ... Read more The post How to Invest in Long Distance Out of State Rentals appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/39HzHqw via IFTTT

For all of the glamor and glitz and notion that California is indestructible, there is a net migration of California residents out of the state.  And why is that?  Affordability continues to be the driving force for many families looking at a state that has become a renter’s paradise and for those wanting to own, […] from RSSMix.com Mix ID 8230700 https://ift.tt/2uRIFTh via IFTTT

Two-Part Test [ Editor’s Note : Seller liability for ice dams and other home issues is case-specific, and affected by local and state law. For legal advice, please contact an attorney.] At least in Minnesota, there is a two-pronged legal standard for Buyers to recover from Sellers for damage caused by an ice dam (or any post-closing issue, for that matter): One . The problem had to exist before the Buyer purchased the home; and Two . The Seller had to know — or should have known — about the problem. So, a home buyer who closed on a balmy day last Fall . . .  flunks test #1, never mind about #2 . But what if the home historically suffered from ice dams, and this year’s are simply the latest recurrence? Usually, there’s residual evidence that a home previously had ice dams, even after the damage has been repaired. Plus, a good home inspector will note the roof’s pitch and design, following any roof valleys to the home’s interior ceiling(s) to look for signs of past leaking ...

60 above zero : Floridians turn on the heat. People in Minnesota plant gardens. 50 above zero : Californians shiver uncontrollably. People in Duluth sunbathe. 20 above zero: Floridians use coats, thermal underwear, gloves, wool hats. People in Minnesota throw on a flannel shirt. 15 above zero : New York landlords finally turn up the heat. People in Minnesota have the last cookout before it gets cold. Twin Cities window washers show up five minutes early, add antifreeze to cleaning solution (true — the home in question was mine). Zero: People in Miami all die. Minnesotans close the windows. 25 below zero: Hollywood disintegrates. The Girl Scouts in Minnesota are selling cookies door to door. Gabriel Kaplan (my 17 year-old son) puts on long pants. 460 below zero: ALL atomic motion stops (absolute zero on the Kelvin scale.) People in Minnesota start saying . . . ”Cold ’nuff fer ya??” 500 below zero : Hell freezes over. Minnesota public schools will open 2 hours l...

How do appraisers account for a bowling alley in the basement? Or some other unusual feature, like a helicopter landing pad, 10,000 gallon aquarium, basement basketball court, or dozens of other unusual — and therefore hard to estimate — home features? They don’t. Huh?? Self-Cancelling Features If it’s possible, the preferred strategy in such situations is to find another home that otherwise qualifies as a Comp (“Comparable Sold Property”), and also has the same unusual feature/amenity. Once you have two homes that each have basement bowling alleys (or some such), the feature gets cancelled out. Then, the remaining adjustments focus solely on where the two homes — the Comp and the subject property — differ. Of course, the more unusual the feature really is, the less likely you are to find another property that has it. P.S.: I personally know of exactly one home that has a basement bowling alley (or did): the White House. from RSSMix.com Mix ID 8230700 https://ift.tt/31R...

Negotiating is a crucial part of any deal, and lays the foundation for a clear, enforceable contract. Haggling is . . . an annoying waste of time. What’s the difference? Exactly two decimals. $10,000 vs. $100 So, a $10,000 item on a $250,000 house is the stuff of negotiation. A $100 item (or less) is haggling. (Note: accountants’ term for the difference is “materiality.”) P.S.:  It takes two to haggle. One side can put a stop to it by making clear that their final terms — whatever they are — are indeed final. Then the other side gets to decide if they want the deal or not. See also , “Splitting the Difference & Other Negotiating Tactics “; “ The Difference Between a Home Inspection Addendum and a Repair List” ; and “ The Key to Successful Negotiating:  Getting to Yes?  Or, Getting to No? “ from RSSMix.com Mix ID 8230700 https://ift.tt/2OOvlWS via IFTTT

What’s the difference between a “Tudor” and a “Revival Tudor?” As far as I can tell . . . none . In fact, “Revival Tudor” appears to simply be the more formal name for what everyone commonly refers to as plain old “Tudor.” Here’s a good working definition: “The essential characteristics of a Tudor Revival house usually include the use of half-timbering, oversized fireplaces, and the use of brick and stucco siding. Roofs are steeply pitched, and dormers and overhangs are common.” — Antique Home Style The stunning Tudor  — make that “Revival Tudor” — pictured above is located at 40 Locust Place in St. Paul; it sold for  $1.375 million in 2018. from RSSMix.com Mix ID 8230700 https://ift.tt/2UOgHT4 via IFTTT

Loose Door Knobs and Caviar-Stocked Fridges [ 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: Which of the following issues are properly raised by a Buyer’s home inspection, and resolved either by a Seller price concession, or the Seller assuming responsibility for repair(s)? A. The dated Kitchen; B. A concrete driveway with multiple cracks; C. Peeling paint on the outside of the home; D. The old-but-still-working boiler or forced air furnace; E. A plainly visible scratch in the middle of the Dining Room hardwood floor; F. The dilapidated (but structurally sound) detached Garage. Answer: none of the above (unless the Buyer is getting an FHA loan, in which case “C.” may be correct). The explanation? In each case, the “issue...

Under the guidance of RPR and its RPR View™ product, three Colorado MLSs (REcolorado®, Information and Real Estate Services, and Pikes Peak REALTOR® Services) are partnering to share MLS listing data, an overall trend in real estate that is gaining traction. from RSSMix.com Mix ID 8230700 https://ift.tt/2SxXS3G via IFTTT

Rental properties can be an amazing investment, but not every property will make a good rental. One way many people analyze rentals is with the 1% rule. The 1% rule states if the rents are 1% or more of the purchase price (or purchase price plus repairs) of the property, it will be a good ... Read more The post What is the 1% Rule in Regards to Rental Properties? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/37jSdUd via IFTTT

What’s a “1.5 showing?” When one partner in a couple has seen the house and likes it, and gives their partner a green light to take a look. Rules & Exceptions As a general rule, Realtors acting as a Buyer’s agent prefer that both (all**) decision-makers be present at all showings. That’s not only more efficient, time wise, but it gives everyone a chance to consult and compare notes in the house in real-time — rather than from memory the next day (or week). However, I can think of three exceptions to that rule. One . Scheduling conflicts. When both partners work long hours — especially when one happens to be, say , a surgeon — getting both in the same house, at the same time, often just isn’t feasible. So, you take what you can get. Two . One partner has significantly more specific or narrower criteria than the other. That can be location, style, condition, floor plan, size — you name it. However, when that’s the case, it’s often best to let...

“Oh . . . umm . . . I see — Never Mind” [ 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.] “Sanders has edge in latest New Hampshire polls, with signs of late Klobuchar rise.” –headline, Washington Post (2/10/2020). It’s the nature of politics that voters’ ardor always seems to be strongest for the candidates not in the ring. Which is a shame. Maybe if Minnesota’s senior senator, Amy Klobuchar, played harder to get, was more aloof, or perceived as being above the fray instead of very much in it, she’d be the front runner instead of in 4th place (but climbing!) in the Dems’ race for President. “Goldilocks” Scenario; Minnesota’s Favorite  Daughter If you live here and voted for her — most Minnesotans have, several times — you know that Amy is a whip smart, decent yet tough,  effective public servant,...

New & Improved Housing Stock — and a Price to Go With! [ 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.] Once upon a time — OK , until around a decade ago — the Linden Hills neighborhood in southwest Minneapolis was known for its eclectic blend of housing stock. So, mixed in with the upper bracket homes overlooking Lake Harriet and Lake Calhoun always seemed to be an equal number of “cottage-y,” older homes further away from the lakes that were relatively affordable. Today? Not so much. Average(!) List Price: $993k According to the Multiple Listing Service (“MLS”), the average list price for the 24 Linden Hills single-family homes currently on the market is $993k, including several newly built or extensively remodeled ones in the last few years. That’s more than triple the median Twin Cities sal...

The Kindness — and Evil — of Strangers Coyote : “I don’t like leaving people behind. I don’t like people dying in the desert. So I choose people who won’t die. Migrant : “I have no intention of dying.” Coyote : “No one intends to die.” Migrant : “Yes, but I intend not to die.” –“American Dirt”; p. 281. What makes the exchange (above) especially potent: the steely, determined-to-live migrant . . . is   an eight-year old boy! “American Dirt,” Jeanine Cummins’ gripping tale of migrants fleeing Latin American violence and cartels to get to the United States (“el Norte”) is full of moments like that. Which leads to my twin reactions to the book, and the controversy surrounding its provenance: 1) what a harrowing(!) story; and 2) assuming its depiction of immigrants’ experience is reasonably accurate — and it certainly appears to be — I don’t care if Donald Duck wrote it. Cultural Appropriation Cummins paints a vivid tableau of sicarios (cartel hitmen), coyot...

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 , it’s literally less than w...

I don’t know if Realtors suffer disproportionately from Attention Deficit Disorder.** But, I did just hear a story at a continuing ed class, about an agent who got this t-shirt from his spouse for his birthday: “My wife thinks I have ADHD. I don’t think so. Hey, look! A chicken!” **Getting emails, texts, and phone calls what seems like every 5 minutes (seconds?) all day long certainly doesn’t help with one’s concentration. See , “ Where’s the Rest of Me?  The Phantom Cellphone Vibration .” from RSSMix.com Mix ID 8230700 https://ift.tt/2SaKgg4 via IFTTT

Avoiding the “Contingency Premium” “We may be small, but we’re slow.” –Cal Tech football team slogan. If you were a home seller, how much extra would you want in order to assume the risk that your Buyer could successfully sell their current home in a timely fashion — the standard Contingency is 60-90 days — in order to be able to buy yours? An extra 3%? Maybe 5%? Ahh , but if you were starting a new job across the country in a couple months and couldn’t risk leaving behind an empty house, perhaps there’s no scenario where a Contingent offer would fly (the premium effectively was infinite). Seller Motivation, Flexibility Which underscores an essential truth about Contingencies: namely, the premium varies by Seller and their circumstances. Relevant considerations include: “How long has the home been on the market?”; “What kind of condition is it in?”; “How much Buyer interest is there at the current price?”; and “Does the Seller have a firm timetable for selling, or can they be...

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 they get 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 and Pre-Approval Letters “...

Home Price as a Moving Target “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 is a moving target, not a static number. That’s because a skilled, experienced Realtor can easily add 10% or more to a home’s list price. How? By recommending strategic, cost-effective repairs; helping their client do smart updates (and avoid dumb ones); expertly staging the home prior to putting it on the market; and finally, skillfully marketing the whole, spiffed-up package thru professional photography, exposure on social media, Realtor networking, flattering brochures, etc. Once the Buyer appears (or, several of them!), a good agent also knows the...

What’s More Than a Full Bath? By convention, Realtors call a Bathroom with a sink, toilet, bathtub and shower a “full” Bath. Because each of those items counts as .25, a Bathroom missing one or more of them is considered a fractional Bath. So, a Bathroom with a sink, toilet, and shower (but no tub) is a 3/4 Bath. Luxe Bathrooms Ahh , but what do you call a Bathroom with all four of the usual features plus a freestanding shower? And not just a bare-bones, telephone booth-like fiberglass shower insert, but a granite and ceramic tile-framed enclosure with multiple, Jaccuzzi-like water jets; heated tile floors; built-in music and cable TV; and custom recessed lighting. You could easily make the case that such a room qualifies as a 1.25 or 1.5 Bath (or 1.375 or 1.625 Bath, if it includes a bidet). P.S.: Notwithstanding the picture (above), I’ve yet to see a Bathroom with a Fireplace. But, given that it’s Minnesota . . . why not?? See also , “ Partial” Bathroom . from RSSMix.c...

The United States has one of the best markets for investing in real estate in the world. Prices are relatively cheap, financing is usually simple, and the laws are clear on who owns the land. Many foreigners want to invest in US real estate but do not know where to start. There are no restrictions ... Read more The post Can Foreigners Invest in United States Real Estate? appeared first on InvestFourMore . from RSSMix.com Mix ID 8230700 https://ift.tt/3b70deC via IFTTT

The Color Taste of Water Water usually doesn’t have a taste, and people don’t object to that . Ditto for celery. So why is calling something — like a comment, a work of art, or an article of clothing — “tasteless” a dis? “ Taste- Free”  vs. “Tasteless” Clearly, what the speaker intends to say is, “in bad taste.” In the same category:  “I could care less” vs. “I couldn’t care less” (the latter usage is correct). See also , “ Why is Calling Someone a ‘Piece of Work’ an Insult? “;  “You’re . . You’re . . Such an Almond” (Huh??)” ; “ What’s the Past Tense of Sight See ?”;  “Landmark — or Watermark ?”; “ Dried vs. MORE Dried Apricots “; “Wild and Crazy” (vs. Conventional) Fruit ; and “ What’s the Opposite of ‘Untold Riches? from RSSMix.com Mix ID 8230700 https://ift.tt/31eWLdi via IFTTT