Archive for September, 2009

5 Reasons to Not Buy a Short Sale

Short sales have been a constant frustration of Realtors, buyers and even sellers for a long time.  I am sure there are more than 5 reasons to not buy a short sale, but I figured these were the biggies!

Unknown Length of Time: Short sales generally can take months from accepted offer till closing.  Plus, there [...]

Short sales have been a constant frustration of Realtors, buyers and even sellers for a long time.  I am sure there are more than 5 reasons to not buy a short sale, but I figured these were the biggies!

1. Unknown Length of Time: Short sales generally can take months from accepted offer till closing.  Plus, there is really no solid time line as to when the closing will occur.  Do not make plans to move around the date on the purchase agreement, it doesn’t mean anything to the bank!
2. Deal May Never Close: I have seen many short sales that never get approved by the bank and consequently go into foreclosure, despite having an accepted purchase agreement.  This is usually a result of the bank taking their time or a disorganized/inexperienced listing agent.
3. Price on Purchase Agreement May Not be Accepted by Bank: Although the seller has accepted your offer, there is no guarantee the bank will.  You could get the offer accepted for $100,000 only to have the bank come back and say they will only accept $125,000.  Your only options are to accept $125,000 or to cancel the deal.
4. Little or No Information Prior to Closing:  This is related to #1 above.  This can be one of the more frustrating parts of the process.  The listing agent will often have no information as to what is currently happening on a short sale deal for weeks on end.
5. Last Minute Deal Thieves: Just like on eBay, unless the listing agent is explicitly preventing it, you could have an accepted offer in on a property for months, only to lose it in the last 30 days to a higher bid.  While I know the 2nd buyer is not maliciously taking the property from you, the listing agent is doing you a disservice by taking a later offer, regardless of the fact it is higher.

These are just a couple quick problems to watch for when buying a short sale.  The best advice I can give someone is to not get attached to the house until you get the keys in your hand, after closing.

Investment Property 201 Seminar: Rent to Own Deals

[ October 21, 2009; 6:30 pm to 8:00 pm. ] Rent to own contracts go by many names (and take many forms):  rent to own, contract for dead, lease option, etc.  These are creative ways that landlords and tenants/buyers have put together to allow someone with marginal credit (tenant) to buy the house they want.  Depending upon how the relationship is constructed and documented, it [...]

Rent to own contracts go by many names (and take many forms):  rent to own, contract for dead, lease option, etc.  These are creative ways that landlords and tenants/buyers have put together to allow someone with marginal credit (tenant) to buy the house they want.  Depending upon how the relationship is constructed and documented, it can be a win/win or a lose/lose for both parties.

On Wednesday, October 21, the Minnesota Real Estate Team will be holding is next Investment Property 201 seminar.  We will have Attorney, Matt Engel discussing how to best architect these relationships.  He will demonstrate the pitfalls and common mistakes that many landlords make and how to avoid them.  Matt will explain the best design for these relationships to minimize the legal ramifications if the relationship goes poorly.

Join us on October 21 at 6:30 pm if you have previously written these deals or have always had an interest in them.  Contact us now by filling out the registration form or call me at 612-281-5419 for more information.

Section 8 Landlord Workshops

[ September 15, 2009; 1:30 pm to 2:30 pm. October 13, 2009; 1:30 pm to 2:30 pm. ] The Minneapolis Public Housing Association is putting on a series of workshops for landlords that are new to the Section 8 program.  I recommend that anyone that has a new Section 8 tenant or is interested in renting to Section 8 tenants attend this orientation.  It has good information and you can get your questions [...]

The Minneapolis Public Housing Association is putting on a series of workshops for landlords that are new to the Section 8 program.  I recommend that anyone that has a new Section 8 tenant or is interested in renting to Section 8 tenants attend this orientation.  It has good information and you can get your questions answered.  Registration is not required.  Just show up!

• September 15 @ 1:30 pm
• October 13 @ 1:30 pm
• December 8 @ 1:30 pm
• December 15 @ 1:30 pm

All workshops are being held at the Minneapolis Public Housing Authority office at 1001 Washington Ave N, Minneapolis, MN  55401.

Investment Property 101 Seminar

[ September 15, 2009; 6:30 pm to 8:00 pm. ] From his experience of owning 15 rental properties, Ryan O’Neill will teach you a concrete, non-infomercial way to build wealth through real estate. This seminar will be a one and a half hour presentation in regards to wealth building through real estate. There is no charge at all, no contracts you sign with us, no [...]

From his experience of owning 15 rental properties, Ryan O’Neill will teach you a concrete, non-infomercial way to build wealth through real estate. This seminar will be a one and a half hour presentation in regards to wealth building through real estate. There is no charge at all, no contracts you sign with us, no consultation fees, no hidden agenda. The seminar simply will be an excellent opportunity for you to learn more about our process: how you get pre-approved, what type of low-down loan product to choose, and then how we step you through the process of finding the home and helping you get it rented out. Whether you are a beginner or an advanced investor, this will be a great chance for you to learn more about how you can build your long term wealth through buying real estate. Again, all of us at www.InvestmentPropertyGuys.com own rental properties. Our team leader, Ryan O’Neill owns 15 single-family homes, and our mortgage coach Rob Bonahoom has over 20 properties. All of us have experienced the benefits of real estate, and we’re excited to share a free seminar with you on how you too can get into the game (or continue on).

Contact us now by filling out the registration form or call me at 612-281-5419 for more information.

IP201: Foreclosure Bus Tour-September 12

[ September 12, 2009; 12:00 pm to 3:00 pm. ] Have you ever been interested in the great opportunities in buying Foreclosed properties? Let us show you around. This is a rare bus tour where we will drive you around the areas, showing you both rehabbed houses and for sale properties. We have put together a program for new and seasoned investors to [...]

Have you ever been interested in the great opportunities in buying Foreclosed properties? Let us show you around. This is a rare bus tour where we will drive you around the areas, showing you both rehabbed houses and for sale properties. We have put together a program for new and seasoned investors to capitalize on this perfect storm of investing and buy up properties for pennies on the dollar that sold for up to $200,000 just a few short years ago. Our team has assembled real estate agents, a general contractor, leasing agents, property managers, and the financing to make this a rare turn-key investment.

The tour will leave at noon on Saturday, September 12, from Robbinsdale and will take approximately 2-3 hours. We handle parking, finding the properties, and logistics. You simply sit back and listen and see how so many investors are taking advantage of these great deals. Because of limited seating, a reservation is required. Contact us now!

Contact us now by filling out the registration form or call me at 612-281-5419 for more information.