Investors at Christmas time

The thing I always enjoy about Christmas and the Holiday season is the optimism. As Investors that's always the way you should fell about the upcoming year.

Lets look at some great things that could happen next year if your optimistic. Low interest rates that flow to the private borrowers. In America their is still a ton of money and people who want to buy their own home or investment property. Getting credit flowing is one of the things I'm optimistic on.

I also am optimistic that prices of homes will stabilize and start moving up. That's why we are buying homes now. We are optimistic that prices will eventually go up. Getting the quality of homes that we are getting at the prices we are paying gives up great optimism.

I optimistic that profits for investors will go up. When prices start going up and the inventory gets lower investors have a lot more options. You can sell your property or option your home to a qualified buyer for great profit. I am optimistic that the inventory of homes will go down next year.

I am also optimistic that the job market will get better. More jobs mean more money and buyers.

These are just a few things that I am optimistic about. I am also very optimistic that everyone who reads my blog will have a very Merry Christmas and Happy Holidays.

I look forward to the new year and all it has to offer. So embrace the challenges that life brings you. Never be worried after all life is very temporary. Brett Young http://www.rooftopprofitmax.com/

2009 in real estate

This year has been a lot about changes. We've had changes in the real estate business that makes us all change the way we think about real estate.

For example values have dropped 40%-60% from their highs. Some people think about that as something awful. Losing equity and having your loan upside down is not a good thing. I've talked to many people that are letting their property go to foreclosure or short sale.

Investors have a lot to think about in this market. Should they keep the homes they have and continue to wait for property values to come back? Or do they dump their property and move on with life? Each decision should be based on their situation.

Today's market allows you to buy options(cheap homes) that helps you hedge your portfolio with real estate that makes money on rent and they have a great equity position.

I believe this market is poised to make investors a great return. Yes home prices have dumped a lot in some areas, but rent has not fallen that much compared to the retail sale prices on real estate. This makes holding a property profitable. It's called cash flow!

For that reason me and my investors continue to buy homes. We can buy a home remodeled for $20,000-$40,000. These homes get $600-$1000 a month in rent. The values are at least double to what we pay for them. That's a win win situation for the investor.

These deals will not last forever, prices will stabilize and everyone will be saying the same thing. I wish I would've bought back then if I had of I would be rich.

I've been doing this for 24 years and have seen up and down markets. Buying condos in Phoenix Arizona in the 1980's was cheap. $15,000-$30,000 per unit. I had people lines up to rent these units out. They later became worth a lot more and I sold them! That's called cash flow with a great end game.

So when you start planning your investing next year don't forget that real estate is still a great way to create wealth for your portfolio.


--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://sites.google.com/site/rooftopproperties/

The Rooftop Reason

When I created a company like rooftop my only mission was to make investors money. I live in Phoenix Az and 3 years ago I could not recommend that you buy in the Phoenix Area. So I started looking in other areas to buy real estate at really reasonable prices. I have always believed that if you always have the investor in mind and get them a quality product then everyone will always make money. As a realtor and investor that was my only goal.

I started traveling the country looking for the best areas and deals. Not only did I look at the real estate, but other key components had to be in place. For example you need construction, Property Management, and knowledgeable Realtors.

Setting all these programs up took considerable time and effort. As an investor I always bought in the area first to make sure it worked. That's right I put my money into each city I've recommended. A lot of so called investment clubs have people running the program that have never or are not currently buying investment property.

That is the total difference with Rooftop.....We get you the investment properties that make you money. We buy directly from the bank at no mark up to you. That means if we get the home for $15,000 that's what you get it for. We've bought over 300 units and understand the market very well. We currently are buying in the Midwest and Phoenix Area.

If your wanting to get going in the investment world and been to all the other so called gurus. Check out the Rooftop Profit Max difference! http://www.rooftopprofitmax.com/

Brett Young Valley Realty

What is the Feds thinking with home loans?

Keeping up with the loan business in today's market is crazy. The rules keep changing, making loans harder to get. A 620 FICO used to be a good credit score, now it's crap. You need a 700+ to get a loan today, in most cases.

Then you have the 90 day rule to resale homes. I guess they want the investor to take all the risk and get little reward. Investors buy up inventory and help the market out. Most owner occupied buyers do not want to deal with the rehabbing. They want homes that have been rehabbed and ready to move in to. Conventional, VA and USDA don't require seasoning.

If you want to refinance or pull cash out of a investment home, you'll need to own it for 6 months. You will need a 680 or up FICO even at a 50%-60% LTV. The loans do take a while, but the interest rates are still very low. That makes investment homes a great deal. When interest rates do spike then your loan and investment property will be worth more. Remember low interest loan and can make your property worth more in some markets.

If you are putting 10% down on a conventional loan you'll need a 700+ FICO not because of the loan but the MI (Mortgage insurance). They are now requiring that. If you get a 80% LTV loan then you'll have no MI on the loan, and that requirement goes away. You can also have a lower FICO score a 80% also.

VA and USDA loans have no seasoning and are easier loans to get. VA loans sometimes have awful appraisers. Make sure and send the lender Comps of the area (sold homes in your properties immediate area) Conventional loans with 10%-20% down have no seasoning also. Just remember on the 10% conventional deal you'll need a higher FICO to qualify for the MI.

Being with the right people can help you have massive profit in this market. The harder it gets the more you can make.

Changing times in real estate is here and you need to be in a group that helps you with these type of problems. Join us and keep up with the changing times and find out how to profit in this market! http://www.rooftopprofitmax.com

Different types of realtors

Understanding Realtors and what type they are, is as important as buying the right type of real estate. How would you know what type of realtor your working with?

I'm personally a realtor and very good at investment real estate. Why is that because I actually do it. I've personally done 100's of successful homes. I also have a construction company and understand construction. What needs to be done on homes vary for example a lot of investors and Realtors make the mistake of over spending on rehabbing.

The realtor wants the nicest home to sell so spending more makes it easier in most cases. In these type of cases usually the realtor is not in the business and do not do investment real estate themselves. If they did have the knowledge then they would understand what needs to be done and what doesn't. Example Flooring in a $50,000 is going to be different than a $250,000 home. If you put the flooring in that you would a $250,000 home in the $50,000 home you've spent to much money. Easier to sale but the clients pockets don't get filled that way.

The investor that spends to much money on investment properties usually does so because they are making the home like their own. That's were a good realtor that understands investment real estate steps in and explains the type of client that will be buying that home. They will also know what the home needs and doesn't. I usually take my clients to other listings in the area so they can see what needs to be done on that home. You will also get you competition in that area.

The retail market is the samething a good realtor will know the areas and listen to the clients. For example a couple I took out that bought a $600,000 home liked the grandest looking home in the area. The inside was important but not as important as outside. I sent my wife out to show them the first batch of homes. She got back and showed me the narrowed list.

I went through the list and looked at the ones that they didn't want and noticed that the home fit all their perimeters. I told my wife to show them that one and they would buy it. Knowing what your clients like and dislike is a major reason that some realtors are sucessful and some aren't.

By the way the clients have lived in that home for 3 years. Again make sure you pick the right realtor for whatever type of property you want to buy.

Brett Young Valley Realty http://sites.google.com/site/rooftopproperties/

Make sure you have an end game

When you are investing in real estate, understanding the different markets will make you more profitable in the long run.

Our company allows you to buy in three states that vary in their prices and profits. For example; Ohio offers homes vary from $25-$50K remodeled in Michigan $25K Remodeled. Phoenix is a little different there is a vast spread on the prices and areas you can buy. The prices I recommend range from $35,000-$150,000 in Phoenix.

Buying the property at the right price is only the first step. Remodeling right and in budget is the most important issue in investing. I've seen people spend so much money in construction and end up loosing in the end. Understanding construction is the most important thing in investing. My company has done 300 plus flips and undestand that the numbers must be right in this area. A home should take 4-6 weeks to get done.

When doing construction remember there is a difference in a rental remodel and a flip remodel. The rental should save you money. The flip would be more detailed and have more upgrades. Better flooring,paint, lighting etc.

The end game is important also. If your selling it or renting it make sure you have it set up and ready to go. If your selling have the sales price and verify it at least twice. Rents can be varified thru running a fake craigslist ad or a good property mangement company. Again we have all this taken care of for you.

In the end make sure you have you team in place and understand your end game with each property.

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://MyOptInPage2.com/?pid=5576497

Buying homes at the trustee sales and what is it?

When your buying a home at a trustee sale there are many things things that need to be considered. You usually have just a day or two to collect this information.

1. Make sure you know what lien you are bidding on. Some homes that you bid on are not the first lien, they are actually a second lien. So always be informed. You can find this information through a title company.
2. Make sure that you know if the property is occupied or vacant. If the property is occupied, you will have to have a plan to evict them once you own the home. Cash for keys usually works well.
3. Get a realtor to comp the property, and know exactly what you can sell it for. In the newer subdivisions make sure your comps are in the same subdivision. And if there are multiple builders, try to use the same builder if you can. I just listed a home that had this issue. The subdivision comps came up with a sales price $10,000 under what I wanted to list it for. However, after more research, the homes built by the builder of my listing sold for $10k more than the other builders in that subdivision.
4. Know your construction cost. You may not know exactly what your total costs will be, but you should have a good idea.
5. You are usually responsible for the back taxes on the property. Getting a preliminary title search from a title company will inform you of any back taxes.
6. Know the days on market for your property. Keep in mind you need to own it for at least 90 days for FHA financing. You can get conventional or Va financing immediately.
7. Always look for the properties that has a minimum bid that you like and or no minimum.
8. Always get a good Idea of the spread (difference of all your cost - the sales price) so you can have a pretty good idea of what you can make on that property.

These are a few things that need to be considered when buying at the trustee sales. You will get the lower prices at these auctions. Tha MlS can also get you the same type of result it just takes longer to get.

I do have a great program that is totally turn key and will do all this work for you. just sign in below. Just email and say I want the Turn Key Trustee system.

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com

Knowing the true value of real estate

There are a lot of ways that you can value real estate. They may not all be right but they are used. Zillow is a website that comps (sold homes) homes and comes up with a price. The problem with Zillow is it does not take into consideration of the condition of the home. Also was it a short sale, forclosed, retail, tax, trustee sale. You need to know that to get a good idea of what your home is worth.Other things to consider 1-2 bath or more. Garage, no Gargage-Fixup, not fixed up....and much more. Zillow does not take that into consideration.The other way some people do it is thru their friends. They tell them what homes are selling for in that area and boom thats it. I had a listing once that I comp'ed (value of sold homes in that area) and the client had talked to a neighbor. This neighbor had went to some open houses recently in a luxury high end area. He for some reason noticed the bathrooms in these luxury homes and informed my potential client that his bathroom was nicer than any luxury home bathrooms. Therefore his conclusion was that his home was worth 3 times more than any other home in that subdivision was worth. I didn't take the listing.The right way and my only way I do value a home, whether it's an investment home or not is thru MLS (multiple listing service). Realtors are the only ones that have access to this but it's the best information you can get.You need all the details. For example condition, Sq ft, bedrooms, bathrooms,what type of sale is it, and you want the property in the same subdivision or 2 miles radius of that propetry. You want to see the Days on Market and the sales price. You may want to drive the area and see if the lower prices ones are by apartments, busy streets, commercail etc.When you get all these facts you can easily make an informed decision on what that home is worth in todays market. This will help you make money on your home whether you are living in it or if your an investor.One other important tip I should mention if you are an investor is to watch the square footage. Why? Flooring is usually the most expensive part of rehabbing a home. So I like to keep my investment homes around 1100-1800 Square feet. Less fixup more money for you as an investor

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com

Marketing do's and don'ts

When your doing marketing do your homework. Their are all types of ways to advertise your product. I'm going to go over a few successful ways I carved out a great income from my advertising.
The first is postcards. With the birth of the Internet this path is lessor traveled. I had just started in real estate and started sending out 150 postcards a week. They were basically for listing properties. I consistently sent them out for 10 weeks with no success. On the eleventh week I got a call from a gentleman that needed a lot sold. I listed and sold that lot. He then let me sell a home and bought two more homes from me after that. He was a plumber by trade and called me on a home he was re plumbing and wanted to know what it was worth. I informed him of the value and he said the owner would sell it to him at a considerable discount.
I was searching for a home in that area at the time and offered him $10,000 over what he was paying for it. He sold the property to me and I remodeled it and lived their for two years. After that property was sold I made over $75,000 from that one post card that I continue to send out today.
Another great way to advertise is social networks. You can network and find people with common interest and potential clients. The biggest asset that it brings you is notarization. It shows people that you have a presence in the market and brands your name and business. People need to see your name a few times to trust it and remember it. So social networking can help get your business, website, blogs, and events out the the world.. It will at least get some new traffic in your business.
The last one I want to talk in this article is events and having events. Meetup.com has boatloads of these events. You can find meetings that you may get business from. You can also find social meetup's and hobby type stuff. You can join these meetings and you'll get their schedules. I would always have business cards in my pocket when you go to these types of meetings. That's just another sign you can put out their when your at these meetings. Meetup does cost some money but is well worth it.
You can also create your own events that can meet up weekly, monthly or whenever you want. These meetings do take a while to build a following but does keep you in direct contact with your clients. So if you have a slow start don't quit be consist ant and run your meetings at least monthly. I had three at my first one and sold 6 homes to two people that where at that meeting. Have an interesting information and always be at the top of your game when you have these type of meetings. Set up an affiliate program with your business to create word of mouth growth for your group. All that is paying people to refer people to your business. Be creative when growing your company.
Other event social sites Facebook, Craigslist, Oodle and I'm sure their are more!!

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com

Personality of Business/Knowledge

When you decide to start a business , there are many things you need to know in order to be successful. The first is knowing your product.
Goober Pet World, (now Goober Pet Direct) was a home delivery pet food service that owned. I had built it to over 6000 customers when I sold it. One reason I had so many customers is that I knew my products. Goober had over 300 types of pet food, with many off brands. These brands came from large companies, usually $60 million plus in revenue. If a customer called wanting Science Diet Maintenance, I had that. But, I also had another brand called Diamond Maintenance. It was formulated almost exactly like Science Diet. The only real difference was the price. I would sometimes be able to switch the customer to my brand, Diamond.
That did a lot for my business. I was one of the few companies that carried the Diamond line of food. My company was the only one that could deliver the Diamond product anywhere in the Phoenix Metro Area. That gave me a big boost. Anyone, anywhere could buy from me in the Phoenix Metro Area.
It is like that in real estate, I know Construction, Lease Optioning, Renting, Property Management, Private Lending, and much more. This allows me a larger market share, because I know my product. I was not satisfied only knowing certain aspects of real estate. I had to know everything about it. This in depth knowledge allows me to be the expert. And that knowledge is valuable.

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.wealthbuildingequity.com/

Making sure that all you ducks are in a row

I was reading the Wall Street Journal. There was a piece on Rookie Home buyers by June Fletcher. The article talked about a 1st time buyer that had saw the $8,000 tax credit and decided to buy a home in the Atlanta area. This person was a manufacturing engineer and actually did a quick walk through and decided to put a bid on it. He took a short vacation and the realtor informed him that the property was under a bidding war. Basically that means more than one person is bidding on it. So he upped his bid and won the condo, he got emotional on this condo. He won the condo and signed a 33 page contract and opened escrow. He got an inspection and found that the home had considerable more damage than he originally thought. The article talks about he had a problem getting out of his contract (probably a little overboard), you do have an inspection period that you can back out in.

Me and my team have all the processes in place that insure that this does not happen. We make sure that after escrow is opened we know exactly what we have to do. Through inspections and contractors all the bases are covered. You really need to do your homework when you start buying a home for yourself and investing. Check out the realtor and or person your using to find you a home. They should have a resume and some people you can call to verify that they know what their doing. Take your time and never do anything in haste. Making sure that all your bases are covered before getting into the real estate game!

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.wealthbuildingequity.com/