I made a Ton of Money Flipping House’s – Oh Yeah?

” Gold I tell you there’s Gold in them thar Hills!” Yes there is excitement in the air and much like the days of the Hollywood westerns a call to action. Gold? Well, maybe and maybe not. Certainly there is a profit to be made for the well prepared Real Estate Fixer Buyer. Is this You? Or will you just be one of the countless stories of failure.

Real estate investments in Fixer’s Flips and Rehabs be it Short Sales and or Foreclosures or in the Derelict/Abandoned homes  market can be very lucrative, If you know what you are doing.

It is that IF that separates the Men from the Boys so to speak. Even with the most experienced of us all there are mistakes made and money lost. But there are many things you can do to help eliminate those losses are at least lessen there effects on your bottom line.

Taking a seminar and listening to the rags to riches stories is one of the sure fire ways to quickly lose your shirt. They may be very motivating and fun to listen to but they are no recipe for success. While education is all good and well you can be over educated as well.

One simple plan that can set you on the right path is to look at investing in Real Estate as a Team Sport. Who would you pick to be on your team, assuming that you have done all of the preliminary work such as financing etc.

The Workers :

1. You ( will or can you do the work)
2. Contractor ( Save your self some headache early on a hire a Licensed Contractor for those jobs that you yourself are not capable of doing )
3. Special Contractors ( Roofer, Electrician, Plumber, HVAC, etc.) You do not have to have these people on the pay roll or at your beck and call but you should at least have done the leg work to check out the quality of work they can do and to compare their prices.
4. Real Estate Agent. ( Did you know that a good real estate agent can make you or break you in the Fixer and Flips market?)

Choosing the right Contractors and Real Estate Agent have many parallels. Your entire team should understand your goals. No member of the team including you should put their needs ahead of the others. A good team understands their place and the places of the other members.

So you have assembled your team and you’re ready to go! What then is a 365 Real Estate Investor? Given that there are only 365 days ( more or less ) in a year a budget needs to be set to meet your goals.

• How much money do you want to make per year after all expenses are paid?
• How much profit is there per project?
• How many projects will it take to reach my goal?

Experience is of course the best teacher. Start small and do not get carried away on that first project. Take on one that even if you fail will not take you down don’t let Greed get in front of the learning curve or your common sense. Build upon your successes for they are the foundation for a bright and profitable future in the world of Fixers and Flips.

Search  Portland Oregon Homes For Sale Right Here

Let Your Next Home find You !   Portland Oregon Info

” A Real Estate Transaction with Herb is one YOU will Profit from “

Buyer’s Market This aint No Buyer’s Market

The real estate market in general is a funny animal. The cycles of Highs and Lows can wreak havoc on Buyer’s,  Seller’s,  Real Estate Professionals and the community at large. It is never so apparent though as in the depths of a down market. The Battle cry of the Newsman ” If it Bleeds it Leads” is the catalysist for reporting bad news about real estate. Positive news is also reported but just like the weather report of it being another Sunny day it does not hold the same fascination as does a Tornado ripping through the midwest.

Given the fact that many of the larger real estate markets across the country are experiencing a down market one would have to conclude that the consensus is that it is  a Buyer’s Market. In fact many articles currently being written about the market often lead out with ” In this Buyer’s Market ” or ” Sound Strategies in a Buyer’s Market”. The perception of the real estate market having a Buyer’s market and a Seller’s Market though I feel is false.

What no Buyer’s Market you ask? Here is what I mean. Following sound business strategies in investing in Real Estate ( and we are all investors rather we buy to live in or not ) would say to buy low and sell high. Yet in Real Estate the opposite is usally true. In the last several years arguably one of the best long term expanding markets we have seen at least in the 19 + years that I have been in business. Buyer’s were flooding the market competing against each other and further driving up the Sales price even beyond the often over speculated price. All of this in what was known as a Seller’s Market.

The only way you could convince me that there is such a thing as a Buyer’s market would be to show me the imperical evidence. Such as the number of Buyer’s far out distancing the amount of buyers purchasing in a Seller’s Market. So if there is no Buyer’s Market then there is only a Seller’s Market. It is just that in an expanding market it is a better Seller’s Market than in a Down Market.

What say you?

Portland_Or_Information_and_MLS_Home_Search 

Portland_Oregon_Real_Estate_Investor’s_Web_Site   

Why is This the Time to Buy Real Estate

Yesterday I posted an article about the real estate market in Portland Oregon . I expressed my oppinion that it was A_Good_Time_TO_Buy_Real_Estate . A reader challenges that oppinion with a resounding ” are you kidding me ” referrencing an article of the rise in foreclosure rates in Portland and around the country.

It is a good question and one that deserves a good answer. Throughout the entire history of mankind, there has never been a moment where man has bitten off more than he could chew. In todays fast paced society and an eagerness of most everyone to have instant gratification to there life styles, prudent purchases are often over looked. It is quite easy to get caught up in the ” everyone is doing it ” menatlity. That does not mean that it shows fiscal responsibility.

In short there is nothing that can be done to those who have walked to the end of the plank only to see it sawed off behind them.

The percentage of those that have done so is a substantial amount. However the larger percentage of consumers have not and there should be no reason at all for anyone who wants to purchase a home to delay that purchase. Interest rates are still very low, Tammy_Wittren_of_Northwest_Mortgage  a mortgage Broker/Banker specializes in loans taylor made to the Portland Market would be happy to update you with the current rates.

The reasons to purchase now and why this is a great time to buy are for the following reasons :

• The past two years real estate across most of the country has been depressed and in some cases a major decline.
• Real Estate is now begining to show a comeback and a rise in prices in many locations
• For those Sellers who have had there home on the market for a while without an offer , they may be willing to look at strong buyer more than there asking price.
• With the market improving real estate sales prices will soon begin to go up.
• Seeings how the real estate market in Portland has not been affected as the rest of the country, the rise in prices here will most likely be more severe than other parts of the nation.

So just like the stock market the time to buy is when it is at its lowest or close to its lowest. Not after it has already made the turn and you have missed out. For those that have been in the real estate market in the Portland Oregon area for any time can testify to. Once the market begins that upward surge it can make leaps and bounds in the tens of thousands very quickly. Unlike reductions that are done in smaller amounts and reluctanly by sellers.

Is this the right time to buy? The answer is a resounding YES! For as you have seen in my previous post the last 12 months ending in April showed an appreciation rate above 11% in Portland. Using that number only and not any additional percentage that might happen should the market take off again, 11% a year on a $300,000 home is $33,000. Or $16,500 for 6 months or $8,250 for 3 months. So every 90 days you wait you are in effect losing $8,250 worth of buying power.

Let_Your_Next_Home_Find_You  

How is Your Real Estate Market Portland Oregon Remains Strong

For the last two years many of my friends in the real estate business did not have much to shout about. Prices were down and inventory was up. For many of my colleagues life was pretty bleak. Recently however signs of improvement have begun to show up in these long depressed markets. A strong Real Estate Market is not only good for agents it is good for the country.

One of the major index’s to this country’s economy is the housing industry. A healthy Real Estate industry points to a healthy economy and consumer confidence. People who feel secure tend to “put down roots” with the purchase of a home. 

Portland Oregon for the past two years has remained virtually unscathed feeling little of the effects of the rest of the country. Although not totally oblivious of the rest of the country’s real estate woes , for the most part our market has continued to grow with only a small curtailment.

The_Portland_Oregon_Metro_Real_Estate_Market_Report_for_April.  shows a dampened trend. Yet the market still is a good market and well priced homes are selling relatively fast with and average market time of 44 to 46 days for many areas. It would be hard to define this as a Buyer’s market yet there are many good buys for the discerning eye. As the market improves in the rest of the country the trend is that Portland Oregon will follow its lead. This may be the perfect time for the first time home buyer or investor in Portland to make their move.

Portland_Or_Real_Estate_Broker_Web_Site  

The Short Sale Nightmare Pt. 2 Dan Wins

Staying focused on the prize is the key to working foreclosed properties and or short sales. Never let your emotions rule the day. Lenders are normally heavily bureaucratically laden and have a myriad of details to follow through. Hence the reason why Lender’s will go out of there way to work with a Homeowner rather than to foreclose and take the property back

In the case of the Victorian home in Mt. Tabor Portland Oregon for Dan, the Seller had chosen not to work it out with the Lender. They just wanted out and did not care what the consequences might be.

I was very fortunated in this case to be working with a Lender who’s department head was not on vacation or dashing out to some conference in Brazil. This individual was on top of her game. She was attentive and often new the current status of the inventory that she had to work with.

In the case of the Victorian home the seller had recently refinanced the home taking some of the equity out only 90 days previously to our offer. With out going into the gory details, suffice it to say he had spent all of the money ( can you say party on man ).

Armed with the knowledge of what the Lender would be interested in looking for should they decide to work with my buyer Dan, I set about by providing it.

• Dan hired a company to do a Full Home Inspection, We gave a copy to the Lender.
• From the Inspection Dan’s construction company gave a bid for the work.
• I also provided detailed bids from the sub-contractors that would be doing work.
• I created an accurate Market Analysis for the property, and sent it to the Lender.
• Provided open lines of communication between the Lender and my self always answering the phone when they called with questions.

The Lender reviewed all of the documentation given and requested an extension of time to do an appraisal review of the previous appraisal and to schedule to new appraisals.

The end results were that the Market analysis that I prepared were almost exactly the same conclussion drawn by the two independent appraisals done by the Lender.

The Lender subsequently accepted Dan’s offer some $60,000 below what they were owed. Closing took place only 45 days longer than anticipated.

Yes Short Sale’s and Foreclosures can be a Nightmare, but if you keep your head in the game and can work through the bureaucracy without becoming frustrated, there are opportunities to be had.

Portland Oregon Real Estate Market is Exploding Again!

Over the past few weeks I have been working with a few Buyer’s needing to purchase before the end of May. These Buyers came to me through my House Hunters web site House_Hunt_Portland  a web site specifically designed for Buyers to find a home using there own search criteria.  

For the very Proactive Buyer you can request the results to be sent to you within in 20 minutes. What this means is if a real estate agent lists a home for sale and enters it into the MLS , you will receive it within 20 minutes providing the listing matches your search criteria.  Results sent to you will be on a street map showing the location of the home in the neighborhood . Results will include Photos of the property, a description, and the homes address so that you can drive by first before calling Herb.

Many of the Buyer’s………… UPDATE ! Durying the writing of this article I recieved a Phone call from one of the buyers that I have been working with. This buyer is of course signed up on  House Hunt Portland. They are also on the 20 minute notification plan.

We had been out looking at property today from yesterdays searches. I told them that I would recommend that they have me change the search frequency from daily to every 20 minutes. After all we had seen three homes today that they were interested in but all three had more than  two offers on them already in only a 24 hr period.

So like I said while I was writing this ( I began 2 days ago ) they called and said that House Hunt had just emailed them a new listing. The Photo’s looked great and was in an area they were really interested in. It was 7:00 pm when the call came in. Fortunately the Seller was not at home. By 8:30 pm we had seen the home and had written an offer on my Lap Top and Printed and scanned it back in after signatures. I noticed that the Listing agent had received and read the offer that I emailed him just shortly before 10:00 pm.

The following morning the Listing agent called me to congratulate us on having the offer accpeted by the Seller. He also wanted to commend me for our quick work. He did not expect anyone to have seen the listing til the next day. In fact he had schedueled a showing of the property the following day. Thanks to House Hunt Portland my clients have beaten every one to the draw, even the Listing agent.

Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon

                  Home Buyers and Investors Buy A Home or Buy an Investment in Portland Oregon !

                              ” A Real Estate Transaction with Herb is one YOU will Profit from “

http://www.portlandrealproperty.com/ or http://www.hotpdxhome.com/  A Web Site for the consumer full of Local Content as well as Portland Oregon real estate mls Home searches . You’ll also find Portland area school information as well. New Content and Photo’s are constantly being added.

http://www.househuntportland.com/  A Web Site for the home buyer of Portland Oregon Real Estate. Receive updated real estate listings daily or hourly 24/7. Sent by email on a street map with a Photo a Description and an Address.

http://www.portlandflips.com/ An Investors Web Site. Spend your time analyzing the results that will be sped your way within minutes of becoming active in the local RMLS.If your an Investor and You Want Portland Oregon Real Estate Investment Properties then this is your site.

http://www.portlandonline.com/ City of Portland On-line. From Parks to Jobs find out about our beautiful City of Roses on Portland Oregon’s Web Site.

Portland_Maps Enter a Portland Oregon address and get a ton of information on the home including maps zoning Sewer etc. Aerial maps included.

Portland_Or._Mt._Tabor_Neighborhood  One of Portland Oregon’s Premier Tree Lined Street Neighborhoods built Around the extinct Mt. Tabor Volcano.

Portland_Or._Laurelhurst_Neighborhood  Crown Jewel of Portland’s eastside, Laurelhurst Park and Neighborhood lies between Mt. Tabor and the Willamette River.

http://www.rebuildingcenter.org/ Link to Portland Oregon’s Nonprofit center for used building materials. If you need parts for that old house come to the Rebuilding center in North Portland’s Mississippi District.

http://www.rejuvenation.com/ Rejuvenation is Portland Oregon’s unique Period Authentic home for full reproduction fixtures and Architectural trim. Salvaged building materials are found here as well.

http://www.hippohardware.com/ Hippo Hardware is another very unique Store located in inner SE Portland Oregon with every kind of conceivable part for you old home. Truly an interesting experience.

http://www.ccb.state.or.us/ State of Oregon’s Contractors and Construction Board. Find out what new laws effect the construction industry. Check on Contractors Licenses and History.

http://www.oregon.gov/REA/index.shtml State of Oregon’s Real Estate Agency.

Oregon’s_Real_Estate_Agency_Pamphlet Learn about Agency . What are a Buyer’s Agent’s responsibilities, what are a Sellers Agent’s Responsibilities. Dual Agency.

Let’s Set the Record Straight

Savvy Investor picks up on an Alberta Arts District fixer in Portland Oregon. As told in a recent blog right here Fixer_Buyers_and_the_Rookie_Mistake . The post tells the story of three buyers looking at the same property. All three eventually made offers. The story was factual. Yet today I recieved a comment from  a reader suggesting the entire story was  made up! In fact this is their quote ” Comment:
I think that the information in this blog is false! The stories are fake and the real world would never see anything like these stories. Thank you ” Now I for one don’t necessarily like overt frontal attacks. And I especially do not care for attacks that are based on no facts and are simply mean spirited and incorrect. I do though recognize the rights of people to have their oppinions.

Hence I did not choose to berate this attacker and make the comment open for others to respond. Instead I chose to give a response to that individual directly to their email.

Here is my response.

An Interesting comment that you left me on my post at www.portlandflips.wordpress.com  and my Posting on Fixer Buyers and the Rookies Mistake. What makes this comment interesting to me is this :

• You do Not know Me
• You have made a unilateral decision on your own that you believe the information and the story was untrue
• You have not presented any evidence to support you allegation
• You have just chosen to lash out

I do not know why you would presume that I would waste my time creating a fabrication. To what end would that serve any ones purpose? I do not lie. I do not make up stories. I may embellish parts of a story to make it somewhat more interesting. But the basic tenants of the stories are Factual and Verifiable.

In regards to the posting the Property I was talking about is at 429 NE Webster in Portland Oregon 97211 and is a Fixer as you can see by the Picture. I have also provided here from the local multiple listing service RMLS the transaction history.

MLS #

Hist

Status

Price

Date

Agent

Office

DOM/CDOM

7028327

SLD

SLD

$269,000

4/22/2007

HAMILTHE

RMXR01

13

/

13

7028327

PEN

PEN

$259,000

4/9/2007

HAMILTHE

RMXR01

13

/

13

7028327

DAT

ACT

$259,000

4/7/2007

HAMILTHE

RMXR01

11

/

7028327

DAT

ACT

$259,000

4/7/2007

HAMILTHE

RMXR01

11

/

7028327

NEW

ACT

$259,000

3/27/2007

HAMILTHE

RMXR01

0

/

7027459

SLD

SLD

$269,000

4/20/2007

HAMILTHE

RMXR01

13

/

13

7027459

PEN

PEN

$259,000

4/9/2007

HAMILTHE

RMXR01

13

/

13

7027459

DAT

ACT

$259,000

4/7/2007

HAMILTHE

RMXR01

11

/

7027459

DAT

ACT

$259,000

3/30/2007

HAMILTHE

RMXR01

3

/

7027459

NEW

ACT

$259,000

3/27/2007

HAMILTHE

RMXR01

0

/

© RMLS™ 2007. ALL RIGHTS RESERVED. – INFORMATION NOT GUARANTEED AND SHOULD BE VERIFIED. SQUARE FOOTAGE IS APPROXIMATE & MAY INCLUDE BOTH FINISHED & UNFINISHED AREAS – CONSULT BROKER FOR INFO. SCHOOL AVAILABILITY SUBJECT TO CHANGE. I have been actively working with Investors of distressed properties for a little over 18 years. It is quite common place to pay greater than full price for a property that promises future rewards. If you would like more examples or would like additional information, I invite you to call me or email me if you choose. I would be more than happy to engage you or anyone in a dialogue concerning FIXERS FLIPS AND REHABS in Portland Oregon. If however you choose only to lash out. Then please choose to do that with someone else.

Go=true;

Herb Hamilton
Broker Associate

Servicing the Greater Portland Metro Area

RE/MAX Preferred Inc. Realtors

office 503 659 1550
cell    503 515 8889
h.hamilton@remax.net
www.portlandflips.wordpress.com  ( Herb’s Blog )
www.adtiverain.com/blogs/herb
www.hotpdxhome.com ( Sellers and Info )
www.househuntportland.com ( Buyers )
www.portlandflips.com ( Investors )

” A Real Estate transaction with Herb is one You will Profit from “