Posts Tagged ‘Days’
Lack of cash flow can destroy your real estate business in days
What do you do when you have cash flow issues?
This can cripple your business whether you are an experienced real estate investor or if you’re a beginner. In early 2002, I had hit the wall. A ,000 a month negative cash flow problem. I’d just quit my J.O.B. of 17-1/2 years so I could achieve my dream of becoming a fulltime real estate investor.
I thought I had this business all figured out. I’d attended great live events and studied at the feet of the masters. I didn’t foresee the downturn in the rental market in my city and it reached up and bit me. I hadn’t done the job of finding private lenders, so I couldn’t fund my business.
Ouch!!!
Fortunately, I had a 15 minute coaching phone call with Ron LeGrand because I had signed up for a mentoring program with him. That 15 minute call got me on the right path.
He even made me the feature article on a monthly newsletter he published that month.
Some of actions he gave me were:
1) Get out 10 pointer sign for each empty house. Replace the ones that come up missing each week. Get the empties filled.
2) Get a mortgage broker that will handle C&D credit and get some of my lease option tenant/buyers cashed out.
3) Cut back on buying houses and focus on selling.
He had more actions and I’ll share them in a future newsletter.
Let me list a few ways to get out of trouble or at least generate some near term cash…
1) Refinance!
Yep, if you’re paying a private lender 15% and you are holding the property longer than planned, you need to make sure you don’t get upside down on the property. Watch your profit margin. If you need too, either bring in a private lender at a lower rate or find a lending institution for 6% or 7% and refinance. Now, you’ll need to do the math and see where the breakeven is:
]]>
a) Loan x 15%/12 = interest per month
b) Loan x 6%/12 = interest per month
c) A – B = $ saved per month
d) Closing cost $ / $ saved / mo = breakeven
So if the breakeven calculation comes out to 6 months then if you are going to hold the property longer than 6 months, then do the refinance.
2) Find at least 3 mortgage brokers and let them compete for your business.
3) If you have a bunch of equity in the property…
a) Sell at full price and if need be, carry back a 2nd mortgage and then sell the 2nd. Hint: How to sell a 2nd? Run an ad in the local paper.
b) Wholesale to a RE investor
c) Cut price and look for a cash buyer
4) Look at your ‘model’. What I mean by that is to take a hard unbiased look at the structure of your business. Is it making you money? Do you know your real numbers?
Let me give you an example. When I got into the business, I was using a buy & hold philosophy of low end properties. It worked but I wanted to make more money and not wait years to payoff the property to have a great cash flow.
So, I decided to buy, fix & sell the same houses with a lease option exit strategy. I’d fix the property to sell and not to rent so I had a larger lien on the property.
It didn’t work. The reason it didn’t work was because the tenant/buyer had a ‘renters’ mentality on these low end houses.
They would live in the property for a few months to a year and then quit paying. I’d evict, put ,000 back in the property to get it up to speed and then do it all over again (and again and again).
When I did the math, I realized that I wasn’t making the profit I had expected. To top it off, when I did get one of these closed, I’d end up carrying back a 2nd mortgage. Ouch! That just added insult to injury.
Let me give you a model that might work for some of you.
1) Target a medium price range property or higher.
2) Purchase for all cash using private money. Let the money accrue.
3) Fix and retail.
4) If not sold by 6th month, then refinance at 6-7% interest
5) This frees up the private lenders money so you can use it again.
6) Put a lease option tenant or land contract (contract for deed) buyer in the property. This covers your monthly expenses.
Look at all the upsides to this model. You buy a property for all cash and have zero holding cost. You are trying to retail and get quick cash. If it doesn’t sell you go for soft terms, free up the private lender money so you can use it again and get a cash flow property because you refinance the property at a low interest rate.
This cookie cutter approach will make you wealthy.
5) Tenant/buyers that have credit challenges…
a) If they need to open up a credit line to get financed, I hand them the form when we do the lease/option or land contract (contract for deed for some of you).
b) Put an escalation clause in the contract both on the price of the property & in the monthly rent/mortgage.
Something I am currently testing…
I am purchasing credit repair packages and then offering them to my tenant/buyers that have credit challenges. I’ll keep you posted.
In closing, I realize some of the items above might not be very popular with some of you but on the other hand, it might be a life saver to others.
The key to all of this is to take action
http://www.articlesbase.com/business-articles/lack-of-cash-flow-can-destroy-your-real-estate-business-in-days-2772200.html
Duluth Georgia, We Buy Houses in 7 Days or Less!
Are you thinking of hiring a real estate agent to sell your Duluth home quickly?
Selling a house is usually a expensive and complicated process. That’s why real estate agents make such big commissions (often thousands and sometimes tens of thousands of dollars) on a single home sale. And most successful agents in Duluth, Georgia usually have 5, 20 or 20 houses listed at any given time knowing that these houses will probably sell within the next 3 to 6 months or longer. Since most of the good agents have so many listings, it’s rare that they will spend the time, money and personal attention needed to sell your house quickly. If you don’t have much equity in your home, your home selling options are even more limited. You may have to write a big check at closing in order to sell your Duluth house and cover any negative equity, closing costs, taxes, etc in addition to your agent’s large commission check.
There is a better way to sell your Duluth house faster, easier and more conveniently than ever before!
If you don’t want to sell your Duluth house for sale by owner or through a real estate agent, there is a much better solution… Sell your home to us in 7 days or less! We buy houses in Duluth Georgia in 7 days or less and we want to buy your house! We are not real estate agents who want to list and sell your house for a commission. We are local professional home buyers who want to buy your Duluth house and can do so quickly, often in 7 days or less with no commissions to pay. We buy houses from people just like you, in neighborhoods just like yours, in any area, condition or price range in Duluth, Georgia and the surrounding areas such as Sugar Hill, Buford, Cumming and Dacula, Georgia. We buy houses in other towns and cities across Georgia such as Atlanta, Augusta, Macon, Savannah, Valdosta, Gainesville and Athens. We buy newer houses, older houses, pretty houses and even ugly houses that need major repairs. We specialize in finding creative solutions to ugly real estate problems and situations that real estate agents and other traditional and professional home buyers just won’t touch. We can pay you all cash, take over your monthly mortgage payments or lease-option your house immediately! We’ll handle all of the paperwork, make all the arrangements and can close within a few days if necessary. You’ll get a quick sale with no hassles so you can put your home selling worries behind you once and for all.
Do you want to sell your Duluth, Georgia home in 7 days or less?
We buy houses in Duluth Georgia in 7 days or less and we want to buy your house fast! To find out if your Duluth home qualifies for one of our fast home purchase programs, please take a moment to complete our Online Seller Questionnaire at www.we-buy-houses-atlanta-georgia.com. Tell us all about your Duluth house for sale and we will get back to you about buying your house ASAP. If your Duluth home qualifies for one of our fast home purchase programs, one of our local professional home buyers will schedule an appointment to come out and inspect your property, take some photos and make you one or more offers to purchase your home on the spot! Selling your Duluth, Georgia home has never been faster, easier or more convenient!
To sell your house fast in Atlanta Georgia please complete our Home Seller Questionnaire.
We Buy Houses in Fairfax Virginia in 7 Days or Less
We Buy Houses in Fairfax Virginia
Everyone has heard the news on the current deteriorating state of the economy, the severe credit crisis and the declining housing market. Fox, CNN, MSNBC, other news, outlets and even the President remind us of our pain daily. The peoples fears and perception have not become reality. Home foreclosures are at an all time high even in my neighborhood in Fairfax Virginia with many more foreclosures likely to come. The unemployment rate in Virginia is growing daily and is the highest it has been in many years. Housing resale values are at all time lows with no end in sight. Even the banks are going bankrupt (124 as of November 2009) as are many Americans who no longer qualify for credit.
Because of the recent credit crisis, many people don’t qualify for a new loan to buy a house right now, despite the incredibly low housing prices. Many home sellers can’t sell their unwanted houses because they owe more than their house is worth because of the falling house prices. Many sellers can’t rent their houses out for enough to cover their mortgage payments, taxes and insurance resulting in severe negative cash flow that bleeds then dry month after month. To make matters worse, many tenants end up losing their jobs and some even trashing the house when they move out making it even more difficult and expensive to sell. If they list their house with a real estate agent, their house will likely sit on the market for a long, long time waiting to sell since the buyers seem to have magically disappeared. Even if the house does finally sell one day at a greatly reduced price to get it sold, the owner has to pay a 6% real estate commission plus the majority of the closing costs. This often results in the seller writing a big, fat check at the closing table to finally get their house sold.
So what are my options to sell my house in Fairfax Virginia fast in this depressed econmy and housing market when many folks can’t get a loan? By trail and error, I discovered the following 3 alternatives to try to sell my Fairfax VA home quickly!
1. I tried to sell my house in Fairfax “For Sale by Owner” aka “FSBO”.
At first, selling my house by myself sounded easy enough, but it soon became my worst nightmare. At first I didn’t know how to attract buyers that might be interested in purchasing a home in Fairfax Virginia also called Northern VA. The sale by owner sign in the yard wasn’t working. I ended up spending a fortune placing classifieds in the local paper which resulted in a few potential buyers. Those that did respond wanted to see my house at all different hours of the day or night. I was afraid to say no in fear of losing a potential buyer. I would have to keep my house clean and all picked up, only to have them not show up to see my house. Other times I had some pretty scary people show up with their 5 kids in tow, trampling through my home. I never did find my ideal buyer. Even if I did, I had no idea how to get them qualified, how to handle all the purchase and sale paperwork or how to get the house closed. I said “There has to be a better way to sell my Home!” and I was determined to find it.
2. I listed my house for sale with a local Fairfax Real Estate Agent.
When I listed my house with a local real estate agent, I thought they were all the same and they would be able to sell my house in Fairfax Virginia quickly. I called an agent from a local, seemingly reputable, real estate agency and made an appointment to have an agent come out and see me. The agent sounded like she really knew what she was talking about and got me really excited about the prospect of selling my home quickly. She said she would list my house in the MLS, on dozens of real estate sites throughout Virginia, advertise my house in the local paper and other print publications, do multiple open houses, put out signs, balloons, flyers in an information box and went on and on about how she could sell my home and still get top dollar. How could I refuse? I didn’t. I listed my house and waited. The agent put the house in the MLS put a sign in the yard along with a dozen flyers in the information box and disappeared never to be seen again. She not only refused to return my calls, but did no perceivable advertising, no open houses, no showings, no more flyers, no more nothing! Six months later I still had no buyers and apparently no agent. I ended up hiring 2 more agents with the same dismal results. Meanwhile my house in Fairfax Virginia had not only decreased in value because it would not sell for the list price, which had been reduced repeatedly, but also because of all the other listed houses and foreclosures on the market in my area of Fairfax. At this point, I was all out of ideas and praying for a solution. About that time, someone at my church told me about a company that helps people in Nothern Virgina with buying and selling houses.
3. I contacted a local, professional home buyer from Fairfax Virginia.
My friend from church told me that she had similar problems selling her Northern Virginia house, but that she had contacted a local professional home buyer who bought her house in under a week! What? Is this possible? Could I sell my Fairfax VA house in 7 days or less too? She said their are professional home buyers out there, also known as “real estate investors”, who buy and sell real estate for investment purposes. You’ve probably seen their “We buy Houses” advertisements around town but never gave them much thought. These are people who buy houses professionally and are always actively looking for more houses to buy. She gave me their WEBSITE information. I filled out their easy online information and they had free reports about the real estate market in Northern Virginia. A local Fairfax home buyer called me and said that if my house qualified and if I was flexible on price and terms, that they may be able to buy my house in the next 7 days or less. They said depending on my situation that they may be able to pay all cash, pay some cash now and some cash later or take over your mortgage payments giving me immediate debt relief. At this point I was definitely flexible and had nothing to lose by scheduling an appointment for them to come see my home and possibly enable me to sell my Fairfax Virginia house fast!
So I scheduled the appointment with the Fairfax home buyer and he came out inspected my home. he made me several offers to buy my house as promised. I chose the offer that best suited my needs and we scheduled a closing the following week with a local real estate closing attorney. It was that fast and that simple to finally sell my house in Fairfax! I still can’t get over it. After waiting two years trying to sell my house on my own and through a licensed agent, I was able to sell my house in less than 7 days to a local professional home buying company!
If you have an unwanted Northern Virginia house you need to SELL FAST visit our website, you have nothing to lose by visiting our website and everything to gain. I was able to sell my Northern Virginia home fast and you can too!
We Buy Orlando Florida Houses and Want to Buy Your House in the Next 7 Days or Less!
Are you thinking of selling your house in Orlando on your own for sale by owner?
If so, you probably know that trying to sell your Orlando, FL house on your own can be a costly, verifiable nightmare, especially in today’s highly competitive buyer’s market and troubled economy. You probably know what it’s like to have to keep your home cleaned up, month after month, ready to show it at any given time to perfect strangers who probably aren’t qualified to buy your house anyway. In the meantime, you have to continue to make your mortgage payments, pay your taxes, insurance, maintenance, utilities, home owner dues and other costs while you wait and wait and wait to sell your Orlando house. If you do find a buyer who is interested in purchasing your home, don’t forget that it takes another 45 to 60 days on average for them to get financed. And what if their financing falls through? After all, many buyers in Orlando can no longer get financed, especially in today’s tough economic times and troubled mortgage marketplace. If this happens, you’ll have to start the whole process all over again which is not uncommon.
Are you thinking of hiring a real estate agent to sell your Orlando home quickly?
Selling a house is usually a expensive and complicated process. That’s why real estate agents make such big commissions (often thousands and sometimes tens of thousands of dollars) on a single home sale. And most successful agents in Orlando, FL usually have 5, 20 or 20 houses listed at any given time knowing that these houses will probably sell within the next 3 to 6 months or longer. Since most of the good agents have so many listings, it’s rare that they will spend the time, money and personal attention needed to sell your house quickly. If you don’t have much equity in your home, your home selling options are even more limited. You may have to write a big check at closing in order to sell your Orlando house and cover any negative equity, closing costs, taxes, etc in addition to your agent’s large commission check.
There is a better way to sell your Orlando house faster, easier and more conveniently than ever before!
If you don’t want to sell your Orlando house for sale by owner or through a real estate agent, there is a much better solution… Sell your home to us in 7 days or less! We buy houses in Orlando Florida in 7 days or less and we want to buy your house! We are not real estate agents who want to list and sell your house for a commission. We are local professional home buyers who want to buy your Orlando house and can do so quickly, often in 7 days or less with no commissions to pay. We buy houses from people just like you, in neighborhoods just like yours, in any area, condition or price range in Orlando, Florida and the surrounding areas. We buy houses in other towns and cities across Florida such as Jacksonville, Tampa, Miami, Ft Lauderdale, Ft Myers, Gainsville, Panama City, etc. We buy newer houses, older houses, pretty houses and even ugly houses that need major repairs. We specialize in finding creative solutions to ugly real estate problems and situations that real estate agents and other traditional and professional home buyers just won’t touch. We can pay you all cash, take over your monthly mortgage payments or lease-option your house immediately! We’ll handle all of the paperwork, make all the arrangements and can close within a few days if necessary. You’ll get a quick sale with no hassles so you can put your home selling worries behind you once and for all.
Do you want to sell your Orlando, Florida home in 7 days or less?
We buy houses in Orlando Florida in 7 days or less and we want to buy your house fast! To find out if your Orlando home qualifies for one of our fast home purchase programs, please take a moment to complete our Online Seller Questionnaire at WeBuyHousesOrlandoFL.com. Tell us all about your Orlando house for sale and we will get back to you about buying your house ASAP. If your Orlando home qualifies for one of our fast home purchase programs, one of our local professional home buyers will schedule an appointment to come out and inspect your property, take some photos and make you one or more offers to purchase your home on the spot! Selling your Orlando, FL home has never been faster, easier or more convenient!
Duluth Georgia, We Buy Houses in 7 Days or Less!
Are you thinking of hiring a real estate agent to sell your Duluth home quickly?
Selling a house is usually a expensive and complicated process. That’s why real estate agents make such big commissions (often thousands and sometimes tens of thousands of dollars) on a single home sale. And most successful agents in Duluth, Georgia usually have 5, 20 or 20 houses listed at any given time knowing that these houses will probably sell within the next 3 to 6 months or longer. Since most of the good agents have so many listings, it’s rare that they will spend the time, money and personal attention needed to sell your house quickly. If you don’t have much equity in your home, your home selling options are even more limited. You may have to write a big check at closing in order to sell your Duluth house and cover any negative equity, closing costs, taxes, etc in addition to your agent’s large commission check.
There is a better way to sell your Duluth house faster, easier and more conveniently than ever before!
If you don’t want to sell your Duluth house for sale by owner or through a real estate agent, there is a much better solution… Sell your home to us in 7 days or less! We buy houses in Duluth Georgia in 7 days or less and we want to buy your house! We are not real estate agents who want to list and sell your house for a commission. We are local professional home buyers who want to buy your Duluth house and can do so quickly, often in 7 days or less with no commissions to pay. We buy houses from people just like you, in neighborhoods just like yours, in any area, condition or price range in Duluth, Georgia and the surrounding areas such as Sugar Hill, Buford, Cumming and Dacula, Georgia. We buy houses in other towns and cities across Georgia such as Atlanta, Augusta, Macon, Savannah, Valdosta, Gainesville and Athens. We buy newer houses, older houses, pretty houses and even ugly houses that need major repairs. We specialize in finding creative solutions to ugly real estate problems and situations that real estate agents and other traditional and professional home buyers just won’t touch. We can pay you all cash, take over your monthly mortgage payments or lease-option your house immediately! We’ll handle all of the paperwork, make all the arrangements and can close within a few days if necessary. You’ll get a quick sale with no hassles so you can put your home selling worries behind you once and for all.
Do you want to sell your Duluth, Georgia home in 7 days or less?
We buy houses in Duluth Georgia in 7 days or less and we want to buy your house fast! To find out if your Duluth home qualifies for one of our fast home purchase programs, please take a moment to complete our Online Seller Questionnaire at www.we-buy-houses-atlanta-georgia.com. Tell us all about your Duluth house for sale and we will get back to you about buying your house ASAP. If your Duluth home qualifies for one of our fast home purchase programs, one of our local professional home buyers will schedule an appointment to come out and inspect your property, take some photos and make you one or more offers to purchase your home on the spot! Selling your Duluth, Georgia home has never been faster, easier or more convenient!
To sell your house fast in Atlanta Georgia please complete our Home Seller Questionnaire.