Houston Area Market Snapshot: What you can buy for $65,000

I’ve been working this past year with numerous real estate investors, both in and outside of the Houston area. Most the real estate investors I work with have only been to Houston 2-3 times, but know the market here is thriving for buying real estate.

According to NAR statistics, Houston is ranked as one of the best places to find value in real estate in the country. Although values have not significantly dropped in markets such as Phoenix, or Los Angeles, there is still considerable investment opportunity in the Houston market.

Many real estate investors are finding their way to the Houston area from forums such as BiggerPockets.com, or Flip This House Houston (which they are currently shooting in the Heights area), or other methods drawing them here.

Some agents will tell you that “house flipping” does not exist in this market. I beg to differ, and you’ll see why. It might not be the best market for house flipping in Houston, but I have seen areas where it is happening. I will go over the parts of town that investors are currently capitalizing on, and my thoughts on the next “up and coming” area of Houston in my next blog post.

So, is the Houston area real estate market bad right now? I would say no. Based on a study done by Trulia, real estate sales in Houston have increased by 7.6% from 2010 to 2011.

We’re going to call this blog post: Houston Market Area Snapshot: What you can buy for $65,000. All of these deals are taken from the MLS, and are currently active on the market. These deals were taken randomly, and not selected for best / worst condition.

If the Days On Market has an astrict next to the number, then it means the house has been listed more than once. If the price has an astrict next to the number, then it means the price has been adjusted (most likely reduced).

Also be noted: some After Repair Values are less than list price. This reflects sold comps on each house, and the comps came in lower than list price, sometimes significantly lower. If the ARV could not be determined by comps, then I pulled Harris County Tax Appraisal District records and gave tax assessed value for ARV, which is noted.

Take this info and use it however it can help you. Notice the significance in the year built of the home. If I was buying a house to fix / flip or to rent out, I would pay close attention to the year built, due to maintenance issues.

North/Spring area:

List price: $65,000* / Days on market: 89 / After Repair Value: $84,000
Price Per Sq Ft: $35.91
Rental rate: $1,100
3 bed, 2.5 bath, 2 car attached garage
1,810 sq. ft
Year built: 1979


List price: $65,000 / Days on market: 254* / After Repair Value: $60,000
Price Per Sq Ft: $45.01
3 bed, 2 bath, 2 car attached garage
1,444 sq. ft
Year built: 2004


List price: $65,000 / Days on market: 17* / After Repair Value: $66,000
Price Per Sq Ft: $45.14
Rental rate: $1,050
3 bed, 2 bath, 2 car attached garage
1,440 sq. ft
Year built: 1979


List price: $59,999* / Days on market: 104* / After Repair Value: $85,000
Price Per Sq Ft: $35.38
Rental rate: $1,300
3 bed, 2 bath, 2 car attached garage
1,696 sq. ft
Year built: 1983

South East:

10906 NEWTON ST, HARRIS, TX 77075
List price: $65,000 / Days on market: 14 / After Repair Value: $80,324
Price Per Sq Ft: $34.74
Rental rate: $N/A
3 bed, 2 bath, no garage
1,871 sq. ft
Year built: 1958


List price: $65,000* / Days on market: 135 / After Repair Value: $80,000
Price Per Sq Ft: $41.94
Rental rate: $850
3 bed, 2 bath, 1 car attached garage
1,550 sq. ft
Year built: 1949


List price: $65,000 / Days on market: 16 / After Repair Value: $85,000
Price Per Sq Ft: $38.28
Rental rate: $1,175
3 bed, 2 bath, 2 car attached garage
1,698 sq. ft
Year built: 2006


List price: $64,500 / Days on market: 14* / After Repair Value: $84,500
Price Per Sq Ft: $54.66
Rental rate: $1,150
3 bed, 2 bath, 2 car attached garage
1,180 sq. ft
Year built: 1980


List price: $59,900 / Days on market: 86 / After Repair Value: $95,000
Price Per Sq Ft: $41.28
Rental rate: $1,000
3 bed, 2 bath, 2 car attached garage
1,451 sq. ft
Year built: 1978

Clear Lake:

List price: $65,000 / Days on market: 13* / After Repair Value: $25,000
Price Per Sq Ft: $70.27
Rental rate: $825
3 bed, 1 bath, no garage
925 sq. ft
Year built: 1955


List price: $65,000* / Days on market: 146 / After Repair Value: $103,910 (tax)
Price Per Sq Ft: $29.76
Rental rate: $N/A
3 bed, 2 bath, 1 car detached garage
2,184 sq. ft
Year built: 1956

Are you a Houston area real estate investor? Are you looking to invest in the Houston real estate market? Leave feedback/comments on my blog and let me know what part of town you like to invest in.


How to identify a good deal in today’s market

Lately I’ve been working with buyers. Not to say I have not been selling homes, but it is a buyers’ market – and buyers are getting great deals on homes, all over the country – as well as in Houston.

Most buyers that I come across tell me what they are looking for, and we find it. One of my goals as a real estate agent is to get my clients the best deal possible – financially. Most of the time my clients have been looking at HAR.com long before they call me, and send me houses they are interested in. This is great. I encourage this kind of behavior, because it gets them familiar with what they want, before we go look at 15-20 homes.

I am going to explain how a buyer can get the best possible deal in real estate, in today’s market. The old saying goes “In Real Estate – You Make Money On The Buy”

I am going to explain this article with a sample deal that I closed as of yesterday. My client got a great deal on his home. Here are the details:

After Repair Value: $85,000
Purchase price: $52,000
Repairs needed: $10,000
Equity Capture: $23,000

You can read dozens of real estate books (I have) and they explain how deals work, but not how to find the right deals. I have my own methods of finding undervalued properties for my clients, I cannot publish on the web because others would take my method – but here are some guidelines to go by:

1.       Find out the after repair retail value
2.       Estimate Repair Cost
3.       Find out purchase cost / closing cost
4.       Work backwards
5.       Submit offer

Step #1: Find out the after repair value
The after repair value, commonly referred to as the ARV, is what the subject house should sell for  – after repairs have been completed. Your local real estate agent will be able to get this information off of sold comparables, preferably in the past 90 days. This information is valuable, because you will begin with the end in mind. If there is a $20-40k variance in the after repair value and the list price, then you are off to a good start. If there is no variance, or a negative variance, than the house is overpriced. In my sample deal, the after repair value was $85,000 – and the list price was $55,000, this was a $30,000 variance.

Step #2: Estimate Repair Cost
Once you have determined the after repair value, you need to find out what repairs the house will need. I would recommend doing a visual inspection / walkthrough of the house with your real estate agent. Ask them what they think the repairs will be. Pay extra attention to the foundation, roof, HVAC system, and any sign of flooding or mold. These repairs are the most expensive, and can eliminate any kind of profit or put you upside down. Have a general contractor look at the house, and give you a written estimate on what the cost will be so you know for sure. On my sample deal, the repairs were $10,000.

Step #3: Find out the purchase cost / closing cost
Ask your real estate agent to find out how much the closing cost will be on your house. If you are financing, you will pay more fees in closing than you would purchasing in cash. Your real estate agent should give you an accurate estimate on what your closing cost expenses will be. You can also ask the seller to pay for some of your closing cost. On my sample deal, the closing cost expenses were $950 total.

Step #4: Work Backwards
Add up your Closing Cost, and Repair value and subtract from the After Repair Value. Now subtract your offer amount, and you will come out with how much equity you will capture on buying the property. If you have a negative number, than your offer amount is too high. The higher the number, the more money you will pocket. So for an example, on my sample deal: $10,000 (repairs) + $950 (closing cost) = $10,950. $85,000 (ARV) – $10,950 = $74,050. Then $74,050 – $52,500 (Our offer) = $21,550 profit.

Step #5: Submit Offer
You can run the numbers and see how much you’ll make based off different offers. Once you find a number you are happy with, then have your agent write up the offer and submit to the seller. Make sure you have determined your maximum offer amount, and stand by your offer. I’ve spent 2-3 months negotiating offers, and it paid off.

Now you know how to analyze a basic real estate deal. Don’t be fooled by the media – purchasing is a great way to make equity in a down market. If you can buy right, you will always be able to sell right..

Flip This House: Finding your deal

The third section of my recommend-blog post entitled “Flip This House” explains how to find the house you are interested in renovating.

There are many houses on the market right now, including short-sales, distressed homes, foreclosures, etc. The question I get asked most is, how do I find the right deal for me?

I am going to go over some things you may want to consider, before you purchase your “flip” house. As a real estate investor, your REALTOR should be able to give you the most accurate advice that makes both logical and financial sense. Hopefully I will raise awareness in your deals, to some things many people will look over.

As I said earlier in one of my previous blog posts, I would recommend finding a house that is less than 10 miles away from your own. My reasoning behind this is that you will be traveling to this house many times (sometimes multiple per day). With gas prices the way they are right now, you do not want all your profit sucked away in gas expenses – as well as time.

Once you have established a few different areas you would like to invest in, inform your REALTOR you are considering an investment property in those areas. Here are some questions you should be asking your REALTOR:

  • How many months of inventory are on the market?
  • What are the average Days on Market for the area?
  • What are the average sales price compared to average list price?
  • Is the area in a flood plane?
  • Is there high crime in the area I am interested in?
  • How are the schools in the area?

You should get a good idea of where you want to put your money, and where you do not want to put your money. The more inventory on the market, the longer your house will sit vacant to sell (unless you price aggressively). The sales price / list price will show you what percent the houses are selling for vs. listed for. For example, an area that is selling at 95% list price is better than an area selling for 81% list price. This could save you thousands!

Once you have found the area you will be investing in, let your REALTOR know your intentions, up front. Some REALTORS love working with investors (I do!), others – do not. If your REALTOR does not work with investors, find one who does.

You should now be considering what type of houses you want to target in the area. Before you purchase a house, the most important thing to consider is how well the house will sell, after it has been repaired. Houses with strange floor plans (walk through bathrooms to get into bedrooms, etc) do not sell fast. Houses with master bedrooms upstairs (in Texas) sell slower than houses with them downstairs. The key idea here is: know what sells fast. If you don’t know, ask your REALTOR.

Typically, I believe you can’t lose with a 1-story, 3 bedrooms, and 2 baths. Those are the easiest houses to sell (in my market!). You should be able to provide your REALTOR with what you are looking for, such as: 3 bedrooms, 2 baths, in X neighborhood, priced below $50,000. Your REALTOR can find that information fast, and will be able to start working on which one to pick. If you want cheap houses right now, have them only send you houses that are foreclosures or corporate listings.

The key idea here is get specific. Get specific as possible. If I did a general search for active 3/2/2’s in Houston I would come up with thousands. If I did a general search for 3/2/2’s under $50,000 in Winchester Country – I would come up with 3.

Note: from my experience, short sale houses dead end deals. Typically, the bank must approve short sales, and this process can drag out over 6 months. If you want to make a deal happen fast, stay away from short sales! Some investors only invest in short sales, but I would recommend you do not start there due to time constraints.

Let your REALTOR know which ones you want to view, and have them run a CMA on the subject property. A CMA (Comparable Market Analysis) will show what you can expect to sell your house for, or After Repair Value (ARV).

The first step is figuring out your ARV. If your ARV is not high enough to make the repairs, pay the commissions, the fees, holding costs, etc – and you do not profit, what’s the point? Don’t worry – that’s why you’re reading my blog! I’ll explain all of this.

After you have determined the ARV, and have comparable, you will see a nice spread between purchase price and ARV. Here is a sample deal I’m doing now:

ARV (After Repair Value): $139,000
Less Purchase Price: $65,000
Total: $74,000

That’s a nice profit! Well – that’s not all profit. We have to take more money out before we can get to our goal, Net Profit. But its a start – a good one at that. If you start to see double digit thousands in your totals from this equation, then you’re on the right track.

On my next blog post, I will discuss a truly important skill you must develop – cost estimation.

Flip This House: Financing Your Deal

The goal for every real estate investment transaction should be to come out-of-pocket with as little as possible. This is sometimes called ‘leverage’, or ‘other people’s money’. Although it does sound nice to use other people’s money to finance your investment, there is a price that comes along with it.

I am going to discuss various ways to finance your “fix & flip deals”, and hopefully shed some light on some new ways of financing investments.

The obvious way to finance a deal is through a conventional loan: 20% down, 30 year fixed rate – or you could get in with a 15 year, or even an ARM. This is NOT the best way to finance a “flip” deal. Remember: The goal of a flip deal is to get in with as little as possible, and get out fast.

FHA loans have requirements that you will live in the house for X number of years, so this won’t work either – unless you plan on buying the house as a personal residence, then you can roll your rehab expenses into whats called a FHA 203k. With a FHA 203k you can roll your rehab expenses into the loan, as well as the purchase price of the house. Remember, this is only a feasible option if you’re planning on living in the house as your primary residence.

The other (and best) route you can go is cash. Private money is a big in real estate. I remember in one of my real estate investment books it said there are two kinds of real estate investors:

Those who have time, and no money.. and those who have money, and no time.

Which kind of investor are you?

If you’ve got time, and no money – then you need a private money guy. Either someone with deep pockets who is willing to stake you $40-150k, or a bank willing to put the money up behind your investment.

The good thing is, there are banks who do this every day – they are called capital banks. They deal strictly with investors and investments, and do not handle the traditional transactions that the general public typically uses a bank for. These kind of banks already have worked with real estate investors before, and they have their own ways of doing things.

One way to find these banks is search Google for “hard money lenders” in your area.

Hard Money Lenders do exactly that – they bring money to the table, at an increased cost. They finance deals that most banks would not finance. Their deals are considered “cash” deals, and they can typically close within 7 days. Exactly what distressed home owners, or banks want.

Your hard money lender will typically charge you anywhere from 12-15% for the money, and sometimes origination “points” on the loan. 1 point is 1% of the loan, 2 points is 2%, etc.

You will also be able to roll the rehab cost into the hard money loan.

You will still need to come out of pocket with some expenses. Typically, you will incur about $5-10k out of pocket with a hard money deal (numbers depend on how much your rehab expense is, how much the purchase price is, etc).

Your potential profit can be $5,000 or it can be $50,000. You maximize your return on investment by limiting the amount of funds you put in, and staying on a strict budget.

We will go over this more in depth in the next few chapters of this blog.

Here are some Houston area hard money lenders:

  • Flagstone Lending – Frank Sheehy – 713-539-9697
  • ISB Capital – Tom Kenney – 281-482-2700
  • CMAC Lending – 281-377-4845
  • Jet Investor Lending – 281-872-7800
Until next time,

Flip This House: Getting Started

Once or twice a week I get asked the same question: Danny, how I get started investing in real estate?

My answer is always the same: Dive right in!

No, not really. Investing in real estate involves time, money, and a little bit of risk. In my opinion, real estate is one of the safest investments you can make, due to the item being tangible.

Other benefits of real estate is that prices will float with inflation, and if you can’t afford it – you can always lease the house, and let someone pay it off for you!

I’ve been studying real estate for years now, and I’ve learned a lot of information. I’ve read many books on real estate investing. I’ve been to real estate seminars, auctions, and events.

Let me relay the best piece of advice I ever got: In Real Estate, You Make Money On The Buy.

Its true! If you buy right, you should always be able to turn a (gross) profit. Sometimes, Uncle Sam takes his cut and your net profit is smaller. We’ll get into ways on how to defer that in later opportunity posts though.

I am a real estate investor. I buy distressed houses, renovate them, and sell them to families who want a good house to live in, at market value.

“Flippers” have a bad reputation in the real estate world right now due to shotty work and taking advantage of others – both things I do not partake in. I try not to refer to my business as “flipping”, but its a catch phrase that everyone knows from TV shows.

Let me break down another misconecption: It Is Possible To Make Money This Market.

It boggles my mind that so many people discourage investing right now. This is an opportunity of a lifetime, to invest in real estate. No other time in history have we had home prices so low, with interest rates so low. To put it short, Its a gold mine for real estate investors.

So how do you get started? Thats the most common question I’ve been asked. When ever I explain what I do, everyone asks questions. Thats good though! I like answering questions.

My first reccomendation: get your team together, get your area, and get your market knowledge.

Get your team together:
There is no single person in real estate investing. It takes a team of people to make the process work. You’re going to need (at the least) a savvy real estate agent, a lender, title company, inspector, and contractor(s). As you grow your career in real estate investing, you’ll need add on people to your team. Always make sure you find the best people on your team, who you can rely on.

Get your area:
Focus on a niche market area. I recommend somewhere thats less than 15 minutes from your home. I spend a lot of time driving back and forth to my rehabs. I don’t have the time (or the patience) to sit in Houston traffic or go across town. Get the area you know, that is close to you, that has everything you’re looking for – and become the expert.

Get your market knowledge:
This is where your realtor will be a key player in your journey through real estate investing. They have the in depth information on market areas, and can tell you whats moving – and whats not. In my business, I would rely on relators before to tell me things about the market, run comparables, and get me facts and statistics on the market. I got my license now, so I can do all this on my own – as well as assist others in the process.

This is the start of a multi-part blog. I will go over, from start to finish, how to successfully “FLIP” a house in this market. Those who say it can not be done, please read along and learn how I show others how to make money in any real estate market.

Until next time,


The Art of Shopping Around

It’s been real busy this past week. So far we’ve found a deal, got it under contract, and got inspections. We are closing on Thursday (2/24) and will start the renovation on Friday (2/25).

I wanted to create a blog post on here that will hopefully reach someone in all areas of business, The Art of Shopping Around.

So far on this house I’ve got over 20 bids from contractors. Some were for small $250 jobs, and some were for large $29,000 jobs. Trust me, there is nothing more frustrating than meeting with 5-8 different people per day, for something different. Many people will hire general contractors and not worry about the headache.

I’ve got some experience in rehab & development, as well as project management, so I decided I would find out first hand how much the general contractor would charge me. I got bids from about 20 contractors for all different scopes of work. I got bids from 4 different general contractors, and the rest were individuals doing various things. For each type of work that was needed, I got at least 3 bids on the job.

  • GC #1 bid: $29,450.63 (materials & labor)
  • GC #2 bid: $6,210 (labor)
  • GC #3 bid: Can’t open his attachments, GC’s use PDF or DOC files

Wow. We’re looking at about a $23,000 rough difference.. What gives here? All I need in labor is some paint, granite counters, appliances, and tile. Not $23,000 worth though.. less than half of that.

So I started shopping around and meeting with skilled laborers who do certain types of work (tile, landscape, carpentry, refinish floors, etc). What I found was that these guys are normally the best in their trade, because they focus on one thing and do it all day.. and they normally are cheaper than a GC.

My tile guy will install slate for $1.20 a sq. foot, and ceramic tile for $1 a sq. foot. Thats not too bad at all. What will cost the most in this will be your materials (slate can go up to $3.50 sq. foot). I interviewed and met with 4 tile guys.

My refinish guy will refinish the wood floors for $1.75 plus $200 in materials. My refurbish guy will refurbish the wood floors for $.50c a square foot. I interviewed and met with 3 guys who refinish hardwood, and only one guy who refurbishes (its a very deep clean / seal).

Landscape is tricky.. I budged $300 for landscape in my first deal, and my first bid came out to about $1,200. I told him thanks, but I had to find something more cost effective. This guy was telling me I was getting a good deal because of the sod ($.88c sq. foot) and the plants he wanted in my yard, as well as the mulch.

I priced this out at the local landscaping shop and I feel like I’m going into the wrong business. He was making some money on his end. If we have 2 day laborers removing / adding plants and mulch we will spend less than $250 on our landscape job.

I started pricing out cabinet 3″ pulls and knobs at Lowes and Home Depot. I had originally budgeted $1.50 for knobs, and $2.25 for 3″ pulls. If you’ve ever been to Lowes or Home Depot they have them, but they are not that great.  I started looking at my other options, and found http://www.usaknobs.com had knobs that were 1/4th the price from Home Depot or Lowes. I know the savings is only about $100 total, but each dollar I save goes in to my pocket.

I had some demo guys come over to the house to take a look at what I wanted to demo. They wanted $600 for half a days work and removing some ceiling fans and doors and trash removal. I had to hold in the laugh when he told me the price. I started to price out the dumpsters in my area, and I can get a 30 yrd roll off flat bed in my driveway for $300. Luckily we don’t need a 30 yrd, and I can just get a trailer for $150. This is another duty for day laborers at $10 an hour.

My original cost estimations and budget allowed for a $25,000 rehab with a 5% contigency, so in total we were looking at $26,250 total spent on the rehab end.

My insurance budget was $400 total for the job. I checked with 4 different insurance companies. My first quote was at $980 for builders risk 6 month term. I checked with 3 other places, and I got my rate down to $516.

By pricing materials out myself and eliminating the GC from the deal, we will be saving over $9,0000 on the deal.

This is why from now on, in all aspects of my life, I will be giving more attention to the art of shopping around. It’s not about being cheap.. it’s about being smart.

Until next time,


Intro to Investing in Foreclosures

Hello and welcome to my new blog, https://redannyday.wordpress.com

The propose of my blog is intended for real estate news, market information, facts, and how-to materials. What inspired me to start writing this blog came from other members in the social media world. Others were asking questions, but could not find answers – better yet, did not know where to find answers. Some people could find answers, but did not know how to ask the right questions. Hopefully I can shed some light on subjects that will help you out, with real life examples – and you can learn from them.

I do not have all the answers, and I am constantly still learning as well. I am here to share with you the knowledge I have gained over the past few years.

Let me say first that real estate is an amazing business. There are all kinds of ways to make a living, or investments in real estate. You can work full time, or part time – and still be very pleased with the income you receive. There are narrow niche markets in real estate, and wide markets in real estate. This post is an introduction to a niche market of residential real estate, investing in residential foreclosures.

What is a foreclosure? A foreclosure is a property that was once owned by an individual who lost the property for some reason. Typically, the individual loses their property due to financial woes. Some reasons why homes go into foreclosure is known in real estate as “The 3 D’s”: death, divorce, and debt.

The typical process of home ownership goes something like this:

Couple A decide to buy a house. Together, they come up with a down payment and finance their house.

Once the house is financed, the original lender will typically sell their mortgage on the secondary mortgage market, to another buyer. The first lender makes money, and sells this note to decrease their risk (borrow default).

The buyer who purchased the original note now holds the mortgage. Currently, Fannie Mae and Freddie Mac are the largest buyers on the secondary mortgage markets.

If the home owner defaults on their mortgage (non-payment), the company who owns the note will usually begin the foreclosure process after 3 months of delinquent payments. This puts the home owner in a bind, because of many stipulations, such as the acceleration clause, which gives the owner of the note the legal authority to call in the entire note once the payments are delinquent. If the home owner can not come up with this amount, than the house will be taken from them and sold as a foreclosure.

If you have been watching the news lately, you will notice that right now there is an all time high foreclosure rate in the United States. In fact, 2011 is expected to have the most foreclosures ever on the market – over 1,200,000 houses are expected to flood the market.

Other media outlets talk about homes being “underwater”, which means the owner owes more than the house is worth. This induces the dilemma of the homeowner walking away from their mortgage, and taking a hit on their credit score for the next few years. Each individual case is different, and homeowners facing foreclosure have more options today than ever to resolve this type of issue.

What does this mean? Well, this type of news can be good – or bad, depending on where you are in your life, and what you are trying to accomplish. If you bought your house in the 90’s, the market was a lot different than what it is today. You could have paid top dollar for the house, waited for a few months, and it would appreciate in value over that time – tremendously. This is what got many states in trouble, artificial inflation of home values.

This can be great news for first time home buyers. Interest rates are tremendously low, and home prices are dropping. Currently, 1 in 4 home sales, or 25% of US home sales are a foreclosure. Foreclosures sell anywhere from 95% to 60% of fair market value, depending on the state of the house.

This can be bad news for an established family who bought in at the peak, and who now need to sell and take a loss on their equity, or worse, who are now underwater.

Again, this all depends who you are, and where you are at in your life.

Flip This House on A&E shows crews from all over the country who buy foreclosures, pre-foreclosure houses to renovate, and sell. They are able to do this because they are buying these properties at pennies on the dollar. Many people watch these shows and see the entire scouting/purchase/rehab/sales process in an hour show, while the investor makes anywhere from $20k – 150k.

Real estate investors know that although this makes great TV shows, this is hardly the case in residential real estate investing. Typically investors look at over 10-20 properties, before they decide to make an offer on one. These types of shows do not show this process. There are other costs associated with fix & flip deals that are not shown on these shows, that will need to be taken into account as well.

Hopefully we can give you a realistic idea of how much you can make depending on what you can put in. There are many ways to make money in real estate. I am currently focusing my efforts on foreclosure investing due to the fact that there are so many in the US right now.

I will be creating YouTube videos on location to help out people who are new to real estate investing. My first video is an introduction to foreclosure real estate investing (fix & flip or buy and hold). My company focuses on the fix & flip strategy.

As a real estate investor, what you should take from this is:

  1. Banks DO NOT want to hold real estate. They will be more inclined to negotiate with you.
  2. Home owners facing foreclosure are motivated to sell. They want to sell fast, because they are on a time crunch. This is typically called a pre-foreclosure or short sale.
  3. Typically foreclosures are in bad shape (interior and exterior). The house isn’t doing anyone any good. Banks don’t want it, it is making the neighborhood look bad, and it drives down other home values which are being sold.
  4. Gurus selling “real estate systems” for thousands of dollars are NOT turn key make money quick ideas. Invest 1/20th of that money in books.
  5. The best resources for real estate investing are usually free
Hope this helps. It should get you started in the real estate investing world, and hopefully save you some money.

Until next time,