- In this episode, lucky exposes the myths and false promises of the so-called real estate guru’s. But first he wants you to know that the current recession and economic mess is not the fault of real estate. Land and buildings have NOTHING to do with the big economic funk the world is in. In fact real estate has no more impact on the global economy than a well-used kitchen appliance!
- Real Estate is, however, still a great asset to invest in. In fact, most of the world's wealthiest people have millions invested in real estate. Lucky will tell you about his fab 5 components that are involved in the process of investing so that you can get yourself on the road to wealth!
- You may ask, if Real Estate is so awesome, what do I buy? Lucky lets you in on plenty of insider secrets, so take note. Rest assured, there is a veritable buffet of homes and dirt out there to get your hands on!
- Next up, you’ll get the skinny on all those tempting free Real Estate seminars that “are in your area for a limited time only!” The slick salesmen presenters may give SOME helpful info during the sales-pitch "seminars" but what they really want is for you to buy their little “kits” for thousands of dollars as they promise to propel your earnings into orbit!Lucky wants you to ‘keep it real’ and keep your hard earned money in your pocket so you can actually buy some real estate! You don’t have to take his word for it though, just check out http://www.ripoffreport.com for the truth behind these shadowy and highly manipulative schemes. While you are at it, check out the shows sponsor: http://www.monitormyfico.com and stay up to date on your credit score. Give their free trial a tryl!
- What’s the most often violated rule in ‘Staging a home for Sale?’ Any idea? Lucky will tell you how to avoid the things that really turn off buyers and how to ‘woo’ them into a purchase of your properties.
- Finally, Lucky answers this weeks question regarding the current market chaos and whether to buy or not buy right now!
- We hope this episode puts you in a zen like state for real estate! Leave your musings on the show – tell us what you REALLY think!
- For more great Real Estate Investing links, tips and products anytime visit www.LuckyLarson.com
- This week, Lucky Larson from www.LuckyLarson.com explains pre-foreclosure (short sale) properties and answers the question, "Can you trust a real estate agent?"
- Short sales have nothing to do with housing for gnomes! - And the word "short" here also has nothing to do with the amount of paperwork or duration of time needed to complete the sale. A short sale is actually when a seller is willing to sell a home for less than (or short of) what is owed on a property. Homeowners are willing to sell and banks are willing to accept offers for less than what is owed to avoid a lengthy, costly foreclosure and eviction process. Just know that when you see an ad for a short sale, it will usually take 2 to 3 months and possibly up to 6 months just to get an answer from a bank, and the answer might just be "NO!" Lucky further explains that you ABSOLUTELY can get bargains by making offers on short-sale property listings. Just make sure you are dealing with real estate agents who have real experience dealing with lenders and, make sure to bring some patience!
- Lucky also reveals that real estate agents can be trusted advisers or self-serving sales people. Rarely does anyone grow up dreaming about selling used cars or used houses as a career. Real estate agents usually come from a completely different background and make their way into real estate as an afterthought. Some agents, can be really bad, and others can be great. Lucky admits that the right relationships with the right brokers and agents can be a huge help to an investor.
- In a new, weekly segment called "Staging the Sale" Lucky says, "When in doubt, get it out!" Most sellers show homes that are just too full of junk!
- Finally, Lucky shows a good example of what kind of home to avoid when starting to build your real estate empire.
- Then, he answers one viewer's question, "Do you think we are at the bottom?" Lucky explains that some real estate pockets may be at their pricing bottoms BUT, the timing to get in has more to do with finding the right bargain-priced properties that suit your investing strategy and not so much about timing the exact market peaks and valleys.
- Next week's show will be an information expose' on FSBO homes (For Sale By Owner) and Lucky reveals how to find the right tenants through "Speed Dating!"
Episode 3
This week's episode is made possible by.... www.MonitorMyFico.com
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This week, Lucky larson of www.LuckyLarson.com talks about the good, bad and ugly of FSBO homes (For Sale By Owner), how to find the right tenants through "Speed Dating," and Lucky answers your questions about real estate investing.
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In your search for deals, you will come across homes listed "For Sale By Owner" on Craigslist, in your local newspaper and simply with signs stuck in their front yards. Lucky points out these essentials: First, "Why do people sell "by owner?" It's not because hopefull sellers really want to get a million phone calls and deal with piles of paperwork. "By owner" sellers are usually just trying to save a buck! The real question is, "Can you find good deals with FSBOs?" Yes, you can, but Lucky explains, "FSBO sellers can be very inexperienced, which may leave a lot of research and paperwork to you. If you become familiar with contracts, use a good home inspector and protect yourself with home warranties, you can feel very comfortable with FSBOS, and often save thousands of dollars because real estate agents will not be taking a cut of the sale price. . . "
Next, Lucky explains that finding the right tenants is a bit like speed-dating. A landlord/tenant relationship is a lot like a marriage. "You might not live under the same roof, but you will be in a social and financial contract with a virtual stranger for months or years, and ensuring that you start with the same goals in mind is crucial!" When you interview or "date" your prospects you are looking for obvious red flags. You court and confirm similar plans and aspirations. You know not to "jump in the sack" too quickly or you'll be sorry. But who has time to waste? You certainly don't have time to waste with complete losers. This is speed dating to the max!
Make sure to ask the obvious questions like:
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Why do they want to rent your property?
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What do they plan to do with it?
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How do they expect to pay for it?
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These questions should be asked on the phone so you don't waste any time showing a property to looky-loos. When you actually meet someone at the home to show them around, try to build trust quickly and get them talking. Often you will see red flags in just a few minutes.
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Lucky also says, "If the tenants are your betrothed, then the lease contract is the pre-nup. A good one will save your butt. Ask Donald Trump about that. But that’s another story for different day!"
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For this week’s tip on staging a property for sale, Lucky says, “Renovate Wisely!” Most people don't renovate, and then wonder why they can't sell a dated, ugly house. Most people who do renovate spend too much and will never get the money back when they sell. Also, most people who do renovate, focus on the wrong things or the right things in the wrong way and won't get their money back.
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Please visit these websites for more great tips on renovation:
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www.CostVsValue.com to see just where to spend money on remodeling to get the best return on your investment.
- This week's "Buy or Not" segment highlights a great little townhome in San Diego’s North County. It is a pre-foreclosure, short sale listed at $379K. It really doesn’t need much, except a refrigerator and some carpet cleaning. It’s only a couple years old and in a great complex. If this could be purchased for $350K and rented at $2,600 per month – quite realistic - Lucky says, "You have yourself a pretty sweet deal!"
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Finally, Janice in Phoenix asks Lucky: “Why does my mortgage company hate me? I pay my mortgage but could really use some help with a loan modification and they just say NO!” Lucky then explains the paradox of the current government "HELP" programs. "There is lots of help out there for the deadbeats and unfortunates who are 60 – 90 days late on a mortgage, but not for horrible people like you, who actually pay their bills!" He further states, ". . . If you have a Fannie Mae or Freddie Mac loan and meet some fairly narrow income and debt criteria, you should qualify for some help. Ask your bank again because they keep changing the rules!
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Lucky also gives a warning about Mortgage Modification Companies. Some are merely mortgage modification scammers who try to charge a big upfront fee to help you "negotiate" a better loan. Most of these groups try much harder to get that up-front fee than they do to get a better loan for you!
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Next week Lucky talks about making big money or losing your shorts with real estate auctions, and he exposes the truth about the infomercial hype of “No-Money-Down deals!”
This week's episode is made possible by .... www.MonitorMyFicocom
This week Lucky Larson talks about making or losing Big Money with foreclosure auctions, and he’ll expose the truth about buying homes with “No Money Down!” along with other great tips for staging a sale and what NOT to buy!
Next, Lucky reveals the truth about the infomercial claims of buying property with “No Money Down.” Can it be Done?!? Yes, and no. The infomercials make it sound like you can accumulate hundreds of homes without a single dime out of pocket. The important thing to note is that there usually is a down payment, but it doesn't have to be your money. There is always a limit to how much you can borrow and manage, especially if you are just starting out. Currently, with an FHA loan, Federal Tax Credits and state grants, a first time home buyer with good credit and a good income can quickly put together a no-money deal on a primary residence. For investors, that won’t be living in the property, a good no-money-down option is finding sellers that are willing to be the bank and finance the mortgage. Hopeful sellers with lots of equity are more likely to do this and you won’t have the strict qualification guidelines of a bank. Another common, no-money deal for investors is leasing, with an option to purchase, where no down payment is required for move-in, but instead can be accumulated over two or three years of lease payments. You can truly buy homes, land and condos with none of your own money needed for a down payment!
For this week’s example of what properties "To Buy or Not to Buy," Lucky examines a cute home in Salt Lake City, Utah. The listing reveals a nice-looking little home that’s just 13 years old, offered as a short-sale in the for about $125,000. Monthly rent payments in the area for a 3 bedroom home are around a thousand dollars or more, which would make this a good potential investment at first glance, BUT, there are concerns! The West Valley area of Salt Lake is not the best of neighborhoods and will often attract tenants that will not be easy to deal with. Nightly gun shots and gang activity are not big turn-ons for the kinds of tenants you really want. Further, this home has only one bathroom and no basement. These will be big negatives when selling this home down the road. Lucky says, “Skip this one and keep looking!”
Finally, a viewer in Kentucky, "Hank" wants to know: “What is a real estate tax lien sale and is that a good way to make money?” Lucky says, "The short answer to your question is that some states create a certificate to sell to investors that represents a delinquent tax debt on a property. Late-night infomercials would have you believe that you can buy a tax certificate for a few hundred bucks and get a whole house! That's a nice marketing gimmick but it’s not likely! If you buy tax lien certificates you will most likely get a decent return on your money like 8 to 15 percent, but your money will be tied up for months or years and you do have to do your homework to make sure you are getting the right lien notes."
Episode 5: Tax Liens, Infomercial Scammers and One HOT Real Estate market!!!
Tax Lien Property sales are the sale of property – not just DEBT CERTIFICATES – where taxes have been delinquent for some time. Most of these properties are raw land that may have a very limited use. If you can’t build on it or rent it out, raw land can be much more of a liability than an asset. No matter what the late night infomercials tell you, it is not likely that you will discover a diamond mine on a piece of land you purchase for $500. To find out more details, Google these terms in your specific area or talk to someone in your county property tax department, and for more tips, tricks and plain-talk, see www.LuckyLarson.com
Lucky also reveals some ugly truths about infomercial claims of “Riches in Real Estate." Yes, there is a lot of money to be made investing in homes, condos and land. The thing that drives Lucky crazy is the sugar-coating that the internet sales copy and infomercial pitchmen wrap around every product they hype. There is no turn-key “real estate money machine” that requires no effort or learning on your part. Real estate is simply a commodity, a product. If you learn to buy the RIGHT product, and do the right things with it, you can become very wealthy. . . if you’re not a couch potato.
To Buy or Not to Buy: Lucky looks at a home in Cleveland, Ohio. This 3 bedroom, 2.5 bath home is less than 10 years old and is listed at $146,000. A mortgage on this home should be about a thousand dollars a month. Rental income would be $1200 to $1300. That makes this a potentially positive cashflow investment or an opportunity to buy a personal residence for less than you could lease. The Cleveland real estate market does not have violent mood swings up and down like California or Florida, so you will not get rich on sudden appreciation, but, you are not likely to lose any value either. If you buy a home like this and live there or rent it out for several years, you will likely be 50 to 80K better off than if you didn’t. That’s better than a sharp stick in the eye! Four or five of these deals could mean the difference between cruising the world in your golden years versus a more modest retirement in a double-wide in the Arizona desert. It’s up to you!
Viewer Question:
Craig Thompson from NYC asks: “With US and European home prices flat or dropping, is there a better place in the world right now for real estate investing?”
Lucky answers with a news story that Home Prices are on a steep rise, that's right, a very hot real estate market in . . . Iraq!
Next week Lucky says, "We will look at what the gun-craze has to do with housing and examine some of the best options for financing your real estate deals."
