The Real Estate Investor’s Resource

Turning Intentions into Action

Successful Real Estate Closings

Real estate attorney, Traci Ellis, and I held a teleclass today to discuss overcoming barriers to closing.  

Here are some tips for successful closings:

Buyers

Be sure to get Owner’s Title Insurance. Lender’s require that you buy Lender’s Title insurance but you must request Owner’s Title Insurance.  It costs very little and can protect your from nightmare situations should issues arise regarding title.

Don’t apply for credit before you close your loan.  Applying for additional credit after you apply for your loan but before closing can stop your loan from going through.  Lenders check your credit (again) prior to closing.

Do your walk through prior to the day of closing. If things aren’t just right, you’ll still have some time to  work with the seller to fix them before closing.

Sellers

Be sure that your buyer is prequalified for a loan and can close.

Make sure that your title is clean and clear for closing (i.e. -no judgements, liens or issues)

Get an earnest money check.  If you have an agent, be sure they have the check.

Bring keys, warranties, garage door openers, etc. to closing.

Buyers & Sellers

Manage the closing closely to ensure success.

Submit all requested documentation immediately.

Expect changes.  A lot of things happen with closings.  Don’t be surprised if there are changes and/or things that require your attention through the process and on the day of closing.

Request a copy of the settlement statement from the closing attorneys office before you go to the closing.  Review it and immediately call the closing attorney if anything is incorrect so that it can be resolved  prior to closing. 

Selling a Property?  www.tipstosellyourhousenow.com

Buying a Property?  www.dealsorduds.com

When you’re ready to close www.traciellis.com

 

June 19, 2008 Posted by | Uncategorized | , | Leave a comment

Estate Planning for Real Estate Investors

Traci Ellis, my wonderful real estate attorney friend in Atlanta,  was the guest of my teleclass today on Estate Planning for real estate investors.  Among other things, Traci shared , “Although our mortality may not be our favorite subject, it is an important subject to address because what we leave behind is our legacy.”   By doing a little estate planning now, it can save those you love so much grief in the future.  Without that planning, the state ends up choosing how your assets are handled.  You are not working this hard for the state, are you?

At a minimum, we should all have the following:

1) Will  2)Power of Attorney 3)Living Will or Advanced Directive

If you have children, choose a guardian to raise your children should something happen to you. 

The important information regarding your estate and your wishes should be documented.  A family member or other person you choose should have a copy of the documentation and your attorney may also hold a copy.  There are also online services now to upload these types of documents so that they can be retrieved from anywhere.

Don’t miss our next teleclass with Traci when we discuss the use of Trusts for real estate investors.  Visit www.tranformit.net/eventscalendar to register.

Also, Traci offers an information packed blog of her own -visit it at www.traciellis.com.

March 27, 2008 Posted by | Real Estate Investing, real estate investor associations, Uncategorized | , , , | Leave a comment

Yes, Investor Funds Are Still Out There!!!

Don’t believe everything you hear.  I’ve heard all kinds of stories from people and the media over the past few weeks about how there is no more money for funding deals; and it’ s just simply not true.   One ezine that came out this week stated that there are no more stated income loans.   Fortunately, on today’s Real Estate Reality Radio Show, Michael Gross of Dividend America Mortgage set the record straight on the lending market for real estate investors.

As for stated income loans, they are still available.  It’s just that you’ll need a 680 credit score or better and you’ll need to verify assets.  What has gone away in regards to stated income loans is the old stated income/stated assets.  It’s now stated income/verified assets.

Construction lenders are a great way to get into deals.  Using this strategy potentially allows you to refinance with a conventional lender and walk away from the deal with some cash in your pocket from the construction loan. 

What are conventional lenders looking for in a borrower these days? 

Safety:  They want to see equity in the property rather than investors trying to pull all of the money out of the property. Michael says leave 30% equity in the property.  If you don’t find a deal with that kind of equity -keep looking ! It’s a numbers game; and there are plenty of deals out there.   If you need to learn how to analyze deals and what to offer to make your deals work, check out www.dealsorduds.com -I developed this home study course to help you do just that.

Long Term Holds:  Lenders want to lend on deals that you are planning to hold.  Producing a signed lease goes a long way. It’s even better to have an appraisal that shows the property as rented or leased.  This strategy works well if you started with the construction loan, fixed the property up and then put a tenant in the property prior to closing on your long term convential loan. 

If you’re sitting back saying, I don’t have good credit, there’s still hope!  The fact that money is available to those with good credit just means that you need to get a partner.  You can partner on deals and apply for loans as a co-borrower with someone who already has good credit.   Finding partners is not that hard -people are all around you that have money and/or credit -start looking for them! 

We talked today about all this and more on the show, you can listen to the show  for more information. 

March 20, 2008 Posted by | Uncategorized | , , , , , | Leave a comment

A Regional View of Real Estate Investing -Strategic Planning

What do you know about the regional planning of the area where you invest?  I recently attended a meeting where there was a regional planning representative speaking about various plans for our region, from transportation to housing to parks and recreation and more.  This meeting provided much insight into my own personal investing choices and decisions for the coming months and years. 

A great way to be strategic with your real estate investing plans is to know and understand the regional plans for your area.  These plans can provide great insights for you around your real estate investing strategy and  contribute  greatly to the success of your investing plans.

Speaking of being strategic, do you have a strategic plan for your real estate investing?  Taking information like regional planning into account is what a strategic plan is all about.  Every business needs a strategy, a long term plan of action that leads to winning!

If you and/or your company do not have a strong strategic plan, I strongly encourage you to take the time to work on your business and do the planning.   In working with numerous clients and real estate investing companies, I find that the those who take the time to create and consistently work their strategic plans are by far the most successful. I absolutely love  working with clients on their strategic plans and seeing the results it produces.  If you are ready for a strong strategy for success – call me – 770-377-1847 – I’d love to help!

February 7, 2008 Posted by | Uncategorized | , , | Leave a comment

Asset Protection -Real Estate Investors & Corporate Governance

So, you’ve heard that you need asset protection as an investor and you’ve even set  up your entity.  But, have you properly managed that entity?  Unfortunately, entity structuring for the purpose of asset protection can be absolutely useless if you are not properly handling corporate governance.  Yes, that’s the side where you have to keep up with minutes, paperwork, meetings, etc. It is really not that complicated if you understand what you need to be doing.   Listen to Traci Ellis, real estate and asset protection attorney,  on my radio show, Real Estate Reality Radio,  to learn more about how to use corporate governance to  protect your assets.  http://www.blogtalkradio.com/RealEstateRealityRadio

February 6, 2008 Posted by | Uncategorized | , , , , , | Leave a comment

Property Value Trends

There have been a lot of recent changes when it comes to property value trends.  Do you worry about making a bad investment decision? Analyzing deals and the value of property can be tricky -especially in this market.  

I am excited to announce that  Foreclosure.com   has invited me to be there guest on Thursday, February 7th at 4 PM, in presenting a webinar where we will be discussing How to Determine the Value of Real Estate.  In this webinar,  I’ll be providing a lot of information that you won’t want to miss when it comes to figuring out value and making good investment decisions! 

February 5, 2008 Posted by | Uncategorized | , | Leave a comment