“One who fears failure limits his activities. Failure is only the opportunity to more intelligently begin again.”

“Henry Ford”

Hans Anderson

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I just want to take the time to welcome all the new readers to my blog. There is a lot of information for American and Canadian investors.

Don’t forget to check out the different categories, real estate topics and the archives for information.

Hans Anderson

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Your Time Has Come: Rental Markets are BACK!

By Wendy Patton –

For the last several years I have been saying that the foreclosure epidemic would be a good thing for real estate investors. Real estate investors have such a great opportunity when foreclosure rates go up. What opportunities exist? Real estate investors can buy foreclosures, of course, and they can also benefit from the displaced owners of the foreclosures. They now have tenants for their new purchases and their existing properties.

For the most part, from 2000 until early 2007, if you could fog a mirror you could qualify for a mortgage. This easy qualification process led to two things: 1) The tenant base decreased causing higher vacancy rates and lower rental rates and 2) it put so many people in a situation they couldn’t afford. Many people had no savings and barely squeezed into a home with minimal down. They couldn’t afford any blip in their lives or with their new home.

Unfortunately, things happen in life. Also, many people were put into interest-only adjustable rate mortgages. They qualified when it was interest only or a negative amortization loan, but when it adjusted, they found themselves way over their heads financially.

(Get invaluable information on how to help homeowners make the right decisions and more at ForeclosureS.com’s 3-Day Hands on Lab with Alexis and her Team of Coaches. Learn by doing under the expert guidance of a 25- year veteran foreclosure investor in her private offices) ForeclosureS.com’s

The Wall Street Journal published an article on May 3, 2008 that talked about how rental homes were going for a premium in many markets around the country. Many homeowners that have gone through recent foreclosure are having a difficult time finding a rental home. There is now so much competition of renters added to the market. It also stated that many renters are looking for a new place due to the home they are living in suddenly being pulled out from under them when an owner is in foreclosure. Many of them have little or no time to move. Some have only a few days notice, as they did not know the owner was even in foreclosure.

I have waited for this time with baited breath. I, personally, am excited that lending requirements have tightened. It keeps out many investors that can qualify for a loan, AND it keeps many of my tenants renting from me. For investors that can’t qualify for a loan, my lease option and subject to strategies will be key. Over time when the rental rates stabilize, it will drive up property values for landlords/investors. What does this mean for you? BUY NOW!!!! What are you waiting for?

Wendy Patton is the nation’s leading author and trainer in lease options, rent-to-owns and subject-to deals.For more information on Wendy Patton visit her website at www.WendyPatton.com.

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This article is available for free distribution under the following terms:
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“Unless the pain of staying the same is greater than the pain of
change, then usually, we won’t change”?

One thing that all successful people have in common is a burning
desire to achieve their goal. They want to succeed so much that it is virtually impossible for them to stay the same. So they push themselves to become successful and make no excuses.

Here are a few of my members who have done just that!

And my hat’s off to them for taking the initiative to make that
change for the better!

The truth is, they are no different from you or me, or anyone for
that matter. They just have a burning desire to succeed and took action. So I hope their stories will encourage you take action as well.

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“I did manage to sell the contract for a benefit to myself in excess of $7000 after taxes.”

I started with bcforecloseures after some experimentation and solo
activity in the real estate arena. I had no success in locating the
‘motivated’ sellers.

Starting in August of 2008 I got into the list and began a postcard
campaign (only 4 names to start with), on the second mail out (12
names) I got a couple of responses and one of them converted into a contract.

The seller was very happy to have someone working to resolve the
foreclosure situation; something that he was really not able to do
himself (see the attached image from the contract).

After a struggle with three different potential buyers, including
one that managed to anger nearly everyone including his own lawyer,notary and realtor; and a ‘time-out’ during the
Christmas/New Year’s holiday time I did manage to sell the contract for a benefit to myself in excess of $7000 after taxes.

Until starting to use the BC foreclosures database I was finding
zero leads. Now I have many, including one that has the potential
for 6 figures!

Thank you Aiden.

Regards,

David M. Malinski, British Columbia

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“Leaving my job to do this full-time!”

“At first, it seemed like I was going no where. I was trying to
contact the sellers on the list and I didn’t get any responses from
any of them. I tried for a 4 weeks and I was about to give up. Then Aiden told me to just stick with the program and keep going.

And I am so glad I did! Because about a week and half later, I
connected with one of the sellers!

We worked out a deal and I was so excited when I got my first check ($16,213.65!) and now I am in the process leaving my job to do this full-time!”

-Shirley Wielding, Alberta

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“$39,876.25 In 45 Days!”

“I sent letters out to pre-foreclosures on the list and one of the
sellers contacted me almost immediately. They had a family medical
situation which I was able to help them with.

Within 45 days, I renovated the property, did an open house (as you see in the video) and then sold the house for a $39,876.25 profit.

And all the while, the sellers were so glad that I had helped them
solve their problem.

I would recommend joining Foreclosure Insiders Club to anyone who
is serious about making a lot of money in real estate honestly and
ethically.”

-Trent

And there are more encouraging stories here:

To Your Success!

Aiden Win

Mr. Foreclosure

P.S. If other people’s success makes you uncomfortable, then good, keep associating with them to the point that you just can’t take it anymore and HAVE TO succeed along with them! Why not start by joining Foreclosure Insiders Club today…

Canada’s Largest Database Goldmine Of Pre-Foreclosure Real Estate For Up To 50% Below Market!

ForeclosuresTaxSales.com

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Prior to investing in real estate, I interned for a real estate appraiser. Everyday we would receive phone calls from angry homeowners who were unhappy with the amount that their property had appraised for. It didn’t take me very long to realize that most of these people, besides having an overstated value for their home, also had no concept of how a real estate appraisal works. In many cases, they were expecting the value to match their dollar to dollar upgrades or improvements to the home, not realizing that the neighborhood market value dictated most of the value.

I don’t want you to be one of those people! Now, I’m not saying that you will never encounter an appraiser totally undercutting the value of your home, but, if you call this appraiser’s office to dispute their value, I want you to come across as if you know what you’re talking about!

And this is why I’m writing today. To educate you a little on the process of a real estate appraisal. With single family homes, there are two methods used in a real estate appraisal. These are the replacement cost analysis and the market analysis that uses comparable sales. There is a third appraisal method, based on capitalization, but this is used for income properties, and I’m not going to get into that much today.

Are you interested in finding a cheap property to either live in, rent out or flip? Join Foreclosure
Insiders Club to access a list of distressed properties in your area that desperate owners, fearing bank foreclosure, could be selling at bargain!

When figuring value based on replacement cost the question is: What would it cost to buy this land and put this house on it? If the improved land would cost $40,000, and the house can be built for $150,000, the value indicated would be around $190,000 – if the house is almost new. If it has used up 10% of its useful life, you can deduct $15,000 for depreciation.

Figuring value based on replacement cost isn’t a very useful method. It’s difficult to say what land is worth in a city center where none is left for sale, for example. It’s often used as a secondary method, or for unique homes that can’t be compared easily with others. The best method of real estate appraisal for single family homes is a market analysis using comparable sales.

Basics Of Real Estate Appraisal

For an idea of what a home should sell for, you need to compare it to homes that have sold. Use the sales information for at least three similar homes in the same area that have sold within the last year, preferably within the last six months. This is available in the county records, or from a real estate agent with access to the MLS (multiple listing service).

Now, for the confusing part. Start with the selling price of each comparable. Adjust for differences from your subject home. If your house has a second bathroom, and the a comparable doesn’t, you ADD the value of the bathroom to the sales price of the comparable. If a comparable has a blacktop driveway, and the your home doesn’t, you SUBTRACT the value.

What you are doing is rectifying differences, to see what comparable homes would have sold for if they were like yours. If a comparable sold for $140,000, and a bathroom is worth $15,000 in your area (ask a real estate agent for help with these figures), add $15,000 for the bathroom it doesn’t have. Subtract $4,000 (or whatever it is worth) for the paved driveway it does have. You then have a comparable sales price of $151,000.

Do this with all differences between the subject home and each comparable. Once done, you average the comparable prices. For example, if the three comparables have adjusted sales prices of $151,000, 162,000, and 149,000, you add the three figures and divide by three. This indicates a value of $154,000.

All appraisal is an inexact science. If you find only comparables sold over a year ago, you have to estimate appreciation in the area. If one comparable sold with seller financing, you have to decide how this affected the price. For all of the flaws, however, this is the most accurate method of real estate appraisal for single family homes.

I hope that you’ve enjoyed learning more about how value is determined in a real estate appraisal. Just remember that market conditions play the principal role in your value. Not your marble or granite kitchen counter tops! Hopefully, if you’re ever in a position where you must dispute your value with an appraiser, what I’ve written today can serve as your guide to justify your argument.

To Your Success!

Aiden Win

Mr. Foreclosure

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Insiders Club

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