Oct 26
We do have the Face-book page: A1Rent2Own partially up.
This will direct you to the web site A1rent2own.com" once its up.
Spokane Real Estate Investments is another Facebook page. It will not be monitored until..Feb or March 2014
Saturday, October 26, 2013
Monday, May 20, 2013
Inland NW here I come!
It's always a great time...to buy, or hold, or sell for someone like you. It just depends upon your goals, staying power (how deep are your pockets.)
Would you be happier with gold? Even that went down for a while in the last few week.
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Well I for one am ready to jump in again. All my major move in project are complete. Of course there's always something left to fiddle with if your not boldly committed to a plan of action.
I signed up for WIFI, they delivered, I adjusted and now I've run out of excuses.Lets implement the plan ( marketing for buyers - sellers, check market values, learn and then test the market.
Would you be happier with gold? Even that went down for a while in the last few week.
-
-
Well I for one am ready to jump in again. All my major move in project are complete. Of course there's always something left to fiddle with if your not boldly committed to a plan of action.
I signed up for WIFI, they delivered, I adjusted and now I've run out of excuses.Lets implement the plan ( marketing for buyers - sellers, check market values, learn and then test the market.
Sunday, January 6, 2013
Spokane
In mid Feb 2013 we will be in the middle of relocating to the Spokane area.
Our intent in to settle there for the next 20?? yrs.
Will concentrate on rent to own, and wholesaling for now.
What do I do?
A. I find discounted homes for cash buyers to renovate/up grade living standards.
B. We help sellers of unsellable properties sell to challenged buyers.
C. Work with lenders/investors.
Jay C
Our intent in to settle there for the next 20?? yrs.
Will concentrate on rent to own, and wholesaling for now.
What do I do?
A. I find discounted homes for cash buyers to renovate/up grade living standards.
B. We help sellers of unsellable properties sell to challenged buyers.
C. Work with lenders/investors.
Jay C
Tuesday, November 13, 2012
Real Estate Courses
I've been at this Real Estate game for a while an run
into a number of courses by a variety of promoters. I’ve investigated a number of them. Bought to many that
were not something I could do because of my lack of believe in it or myself or my internal sense
of what is ethical .
(Note: My first business job required knocking on doors collecting payments and repossessing cars & refrigerators so I'm not shy.)
(Note: My first business job required knocking on doors collecting payments and repossessing cars & refrigerators so I'm not shy.)
My current search was for a way to come up with more buyer –
seller leads without my letter to X owners being the 15th they
received this year.It begin with another “deal” ”course” out of Tampa
Florida Seemed OK (90%) cheaper than
the courses 1 or 2 years ago but would
it really be the answer?
I wanted something that would solve the immediate problem
and leap frog me over the next 3 or 4
hurdles/obstacles I would probable run into. However the course preview did reinforce that without a buyers or sellers list you don't have an operational business.
Rejected that guy's limited product and returned to the web.
There’s a course. BUT it’s not logical to me. It was about being involved with
Arbitrage. How to do it and all the
forms (of course not approved in my
state so more $$ later to be paid to a lawyer later.) OK arbitrage sounds cool but did not state training included how to get the funds to perform the
arbitrage with. So I’d be back to the problem of no list of active sellers,
no list of active buyers and no source of funds when I need them.
Success?? Believe I found my course and a Business Plan to
Success. This course basically covers
all I was looking for. Comes
recommended by a source I’ve read, followed for years. ((Susan Lassiter-Lyons
Founder of Investor Insights Real Estate Club Denver, CO ))
The course not taken. Only within the course's promotional site did I find a recommendation - testimony about how great it was. “Bigger Pockets” had someone asking about it months ago but no comments from anyone taking the course. The FB ad for it..the forwarder had no knowledge of the product. The only good news was that there were no scam reports about it..
Founder of Investor Insights Real Estate Club Denver, CO ))
The course not taken. Only within the course's promotional site did I find a recommendation - testimony about how great it was. “Bigger Pockets” had someone asking about it months ago but no comments from anyone taking the course. The FB ad for it..the forwarder had no knowledge of the product. The only good news was that there were no scam reports about it..
Nov 2012 Jay C
Friday, October 26, 2012
Badges & Licensing
Upon reviewing last nights blog posting I must ad that my intent was to make you aware that just because someone has a badge, or a license to do something doesn't insure they are ethical, a shining example of there profession, or that they are following the law, are actually there to help your best interests.
I believe the Ronald Reagan philosophy should be followed : (to paraphrase ) Offer to believe them but VERIFY all of it.
Jay C
I believe the Ronald Reagan philosophy should be followed : (to paraphrase ) Offer to believe them but VERIFY all of it.
Jay C
Thursday, October 25, 2012
Why Do Wholesale ?
I spent the time and energy, passed the test as a WA state licenses Real Estate Broker to why do wholesale?
1. I didn't like the monthly overhead of an agency.
2. My goal as an investor is to provide great housing for the mass while making a profit.
3. I seek to represent myself and not be a taxi service for someone who will end up buying from their uncle.
4.Unethical people will find ways to appear upholders of the law while using smoke and mirrors to hid what there really doing. So someone hiding behind the "I'm a licensed ..." is like the story I learned 30 years ago:
Any one telling you "I'm just an old country boy and we stick by the truth around here" they are actually saying I'M SLY AS A FOX AND NEED CONSTANT WATCHING.
I guess car dealers have better lawyers or legislative lobbyist than real estate agency do because when you buy a car does the car seller have someone else step into the deal saying I represent you mister buyer not the dealership/seller and I'm here to help only you?
So much for tonight rant. Happy trails to you.
1. I didn't like the monthly overhead of an agency.
2. My goal as an investor is to provide great housing for the mass while making a profit.
3. I seek to represent myself and not be a taxi service for someone who will end up buying from their uncle.
4.Unethical people will find ways to appear upholders of the law while using smoke and mirrors to hid what there really doing. So someone hiding behind the "I'm a licensed ..." is like the story I learned 30 years ago:
Any one telling you "I'm just an old country boy and we stick by the truth around here" they are actually saying I'M SLY AS A FOX AND NEED CONSTANT WATCHING.
I guess car dealers have better lawyers or legislative lobbyist than real estate agency do because when you buy a car does the car seller have someone else step into the deal saying I represent you mister buyer not the dealership/seller and I'm here to help only you?
So much for tonight rant. Happy trails to you.
Wholesaler Update
Hi, Long time between post. Will see if that changes over time.
Unlike politicians: No promises.
Unlike politicians: No promises.
Wednesday, February 15, 2012
Monday, January 9, 2012
Shifting Perspectives
Greeting dear readers
Our move to Washington State was completed days before Labor day.
It was miles and days across the desert sand over endless mountain ridge tops and down again. I remember it being a lot more fun to move 20 years ago.
We've moved from a 50 year record sever drought area of Texas to the Southwest Washington woodlands where is rained more days in October than in half a year in San Antonio Texas.
Fog is possible any time of the day, while the next minute the sun blinds you as you turn down another forest road the fog surrounds you and the blacktop road is still slippery for lack of sun shine.
If your vehicle slides more than 6 inch off the road you may be tumbling 20 - 2000 ft down a hill side which is almost as scary as the back roads around Baton Rouge were the bayou gator are hopping your vehicle comes for a swim.
I will soon return to RE buy/sell blogging.
Jay C
Our move to Washington State was completed days before Labor day.
It was miles and days across the desert sand over endless mountain ridge tops and down again. I remember it being a lot more fun to move 20 years ago.
We've moved from a 50 year record sever drought area of Texas to the Southwest Washington woodlands where is rained more days in October than in half a year in San Antonio Texas.
Fog is possible any time of the day, while the next minute the sun blinds you as you turn down another forest road the fog surrounds you and the blacktop road is still slippery for lack of sun shine.
If your vehicle slides more than 6 inch off the road you may be tumbling 20 - 2000 ft down a hill side which is almost as scary as the back roads around Baton Rouge were the bayou gator are hopping your vehicle comes for a swim.
I will soon return to RE buy/sell blogging.
Jay C
Saturday, September 18, 2010
WHAT is Jay’s Real Estate Background:
As a kid helped my dad maintain his four-plex. Do you know how many sticks can fall on a property with 10 trees each 40ft tall. The work wasn't so hard but I learned to finish what I start - what I've been assigned to do.
Bought personal homes since 1976. Bought first rental property in late 1970’s.
Started as an agent for Prudential NW in Seattle, Kent.Then on to Skyline RE in Kent WA.
2008: Life Styles Unlimited member
2010: Flip Crusher Course on flipping houses with Mentor/Teacher HQ’ed in Dallas.
Course with Trace T. on code violations and section 8 housing.
Returned to Washington, graduated from RE Broker course, then resided to stay wholesale rather than represent others.
Studies with experts in buying almost any type of real estate paper and a
Commercial Property funding expert.
Saturday, September 4, 2010
Real Estate Investor 101
Real Estate Investing 101
As per a transaction participant- wholesaler
The keys to the game are;
1) Positive Cash flow....at least $175/month to be worthwhile.
2) Appreciation if possible. If your in it just for appreciation be sure you
invest at the bottom end of cycle and be in the selling mode with in 5 yrs or
less. When your in it for appreciation your a speculator not a buy & hold for
ever mode.The market $ determines when to sell, not your emotional attachment.
When I started learning the experts talked of ARV price times 70% (30%
discount, "Investor Margin") minus rehab cost minus my profit margin to
arrive at offering price as a wholesaler.
Class "A" areas might only require at 72% Investor Margin.
Prices of RE go up and down in a cycle. A sellers market phase while later
becomes a buyers phase. Your offering/selling price has to adjust to the
phase market is in. Why?? If you can move property quick you can
pay more for it but if your rehab will take 90 days and market is going
down phase your offering price had best reflect this. What if the average
days on market are 250 DOM? (adjust offering price down because
of added cost factors you will be paying.)
This is true for single family homes, downtown high rises and industrial complexes.
Note: Above is referred to as cost factor. Even if your not a hard money
borrower be aware of what your opportunity costs can be. Receive 75%
financing of a $100k ARV property. They charge -for an easy example-
4 points plus 12% interest (=1%/month),
real world is 4 pt's + 15%. and up
$3,000 Points: 4% x $75k
Interest 1%/month = $750/30 days 90 days
Insurance $750/yr, 1/2 down = $375 plus $25/month 90
Tax's $1200 yr 1200/12 = $ 100 month 90
Gasoline etc drive there a few times, printing, supervise contractor etc
$6,200 Sub Total
Other expenses Transaction (Title/ docs etc. work)
$7,000 Rehab or get ready expenses ( get actual bids from contractor)
$14,420 SubTotal
HD Money appraisals for $ releases to contractors
plus miscellaneous/over runs
$17,300 Grand Total - assumes 90 days from close to rent collected.
Now you have$75k minus $17.3 expenses = $57.7 for property.
You have $25,000 of captured (unrealized capital gain)
Note: This assumes rent levels in area will cover long term financing and
other monthly expenses leaving you $200 minimum cash flow and will
take less than 90 days from closing to occupied by renter.
Back to areas:
Very desirable Class A area ARV x 72%.
Average class A ARV x 70%.
What they don't teach in RE school
B area may be ARV x 60 to 65%
C area may be ARV x 55 to 60%
D areas (close to a "war Zone") ARV x 52 to 50%
Your city is not one market. All % change for each part of your city.
Summary:
1. Buy for Positive cash flow,
2. If expect appreciation buy towards bottom of price cycle
***(when everyone is getting in, your to late)
3. Area classification only determines initial discount from ARV.
4. Multiply Classification % by 110% to 50% depending upon phase of market
5. Subtract your rehab cost.
6. Market it for rent before rehab is complete
7. Buy a warranty to cover major maintenance repairs
8. Keep a cash reserve to cover all your insurance deductible
((not all of 1st years cash flow is to play with or life on))
CRITICS: It's very easy for someone not involved in this (RE Investing) to
say Hay your ripping off D areas. Well let them invest there $$,
over pay and then try to sell in a down market. Me, I'm not a millionaire,
I don't receive gov't tax credits to invest in these areas so I can't afford to
just give my $$ away.
ALSO they are forgetting that when you resell it the normal way you loose
12% off the top ( 3% buyer agent, 3% listing agent, 6% FHA financing,)
Another 5% deduction allowance for carpets or what ever, an other
5 to 10% cut to sell it in 30 days not 190 days. So now you profit margin
is reduced by 15 to 20%.
END of RE Investing 101.
* ARV = After Rehab Value...Fair Market Value
* Areas "A" new,
A+ example Plano vs Dallas
B nice but a bit older
C OK but be carefully walking at night
D if you don't live there you will not feel safe after sun-down.
(( I'm using Area classifications as per commercial unit lender guidelines))
As per a transaction participant- wholesaler
The keys to the game are;
1) Positive Cash flow....at least $175/month to be worthwhile.
2) Appreciation if possible. If your in it just for appreciation be sure you
invest at the bottom end of cycle and be in the selling mode with in 5 yrs or
less. When your in it for appreciation your a speculator not a buy & hold for
ever mode.The market $ determines when to sell, not your emotional attachment.
When I started learning the experts talked of ARV price times 70% (30%
discount, "Investor Margin") minus rehab cost minus my profit margin to
arrive at offering price as a wholesaler.
Class "A" areas might only require at 72% Investor Margin.
Prices of RE go up and down in a cycle. A sellers market phase while later
becomes a buyers phase. Your offering/selling price has to adjust to the
phase market is in. Why?? If you can move property quick you can
pay more for it but if your rehab will take 90 days and market is going
down phase your offering price had best reflect this. What if the average
days on market are 250 DOM? (adjust offering price down because
of added cost factors you will be paying.)
This is true for single family homes, downtown high rises and industrial complexes.
Note: Above is referred to as cost factor. Even if your not a hard money
borrower be aware of what your opportunity costs can be. Receive 75%
financing of a $100k ARV property. They charge -for an easy example-
4 points plus 12% interest (=1%/month),
real world is 4 pt's + 15%. and up
$3,000 Points: 4% x $75k
Interest 1%/month = $750/30 days 90 days
Insurance $750/yr, 1/2 down = $375 plus $25/month 90
Tax's $1200 yr 1200/12 = $ 100 month 90
Gasoline etc drive there a few times, printing, supervise contractor etc
$6,200 Sub Total
Other expenses Transaction (Title/ docs etc. work)
$7,000 Rehab or get ready expenses ( get actual bids from contractor)
$14,420 SubTotal
HD Money appraisals for $ releases to contractors
plus miscellaneous/over runs
$17,300 Grand Total - assumes 90 days from close to rent collected.
Now you have$75k minus $17.3 expenses = $57.7 for property.
You have $25,000 of captured (unrealized capital gain)
Note: This assumes rent levels in area will cover long term financing and
other monthly expenses leaving you $200 minimum cash flow and will
take less than 90 days from closing to occupied by renter.
Back to areas:
Very desirable Class A area ARV x 72%.
Average class A ARV x 70%.
What they don't teach in RE school
B area may be ARV x 60 to 65%
C area may be ARV x 55 to 60%
D areas (close to a "war Zone") ARV x 52 to 50%
Your city is not one market. All % change for each part of your city.
Summary:
1. Buy for Positive cash flow,
2. If expect appreciation buy towards bottom of price cycle
***(when everyone is getting in, your to late)
3. Area classification only determines initial discount from ARV.
4. Multiply Classification % by 110% to 50% depending upon phase of market
5. Subtract your rehab cost.
6. Market it for rent before rehab is complete
7. Buy a warranty to cover major maintenance repairs
8. Keep a cash reserve to cover all your insurance deductible
((not all of 1st years cash flow is to play with or life on))
CRITICS: It's very easy for someone not involved in this (RE Investing) to
say Hay your ripping off D areas. Well let them invest there $$,
over pay and then try to sell in a down market. Me, I'm not a millionaire,
I don't receive gov't tax credits to invest in these areas so I can't afford to
just give my $$ away.
ALSO they are forgetting that when you resell it the normal way you loose
12% off the top ( 3% buyer agent, 3% listing agent, 6% FHA financing,)
Another 5% deduction allowance for carpets or what ever, an other
5 to 10% cut to sell it in 30 days not 190 days. So now you profit margin
is reduced by 15 to 20%.
END of RE Investing 101.
* ARV = After Rehab Value...Fair Market Value
* Areas "A" new,
A+ example Plano vs Dallas
B nice but a bit older
C OK but be carefully walking at night
D if you don't live there you will not feel safe after sun-down.
(( I'm using Area classifications as per commercial unit lender guidelines))
Tuesday, June 15, 2010
Water Bills
Residents in San Antonio complain of high water bills. Wish I had their problem.
Our 600 ft well is dry. They can't just drill down further inside old casing. NOPE. Have start at ground level and drill down 900 ft through limestone shelfs.
Requires larger pump motor, new pipe, wire, casing, cement, etc..all for only $25k to $28k.
City water to hard? With a softener at full capacity I can get the hardness down to where San Antonio hardness starts.
Sure wish I had to worry about a $20 to $50 monthly water bill.
Our 600 ft well is dry. They can't just drill down further inside old casing. NOPE. Have start at ground level and drill down 900 ft through limestone shelfs.
Requires larger pump motor, new pipe, wire, casing, cement, etc..all for only $25k to $28k.
City water to hard? With a softener at full capacity I can get the hardness down to where San Antonio hardness starts.
Sure wish I had to worry about a $20 to $50 monthly water bill.
Perspective on Water
State of TX wants the top 30 ft of water from the Trinity Aquifer. Well digger interest on the county board say "Sure Take It." Talk about self interests and make work project this should rank high. Where is TV news investigation when you need it?
The drilling industry will be employed for years by the 2000 to 10,000 homesteads that will run dry and have to digger new deeper wells. San Antonio has assured water for it's growth by buying up water rights over the last 30 to 50 years while the counties around it are still giving up water rights even after years of drought.
The drilling industry will be employed for years by the 2000 to 10,000 homesteads that will run dry and have to digger new deeper wells. San Antonio has assured water for it's growth by buying up water rights over the last 30 to 50 years while the counties around it are still giving up water rights even after years of drought.
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