Collections, Contracts & Leads 6/28

email that went out this morning 6/24:
Good morning, Fellow Contractors, Landlords and Investors,

Collections, Contracts & Leads 6/28
1. Tip – You may want to check out your Insurance “Umbrella” to see where the coverage begins and your underlying individual policies end. This could be an expensive gap.

2. Tip – all my friends tell me how this market of Buyer demand and cheap money is going to continue for the next 5 years. Personally I don’t think so, especially with BREXIT this morning and an upcoming election. I’m not advising you dump everything and go to gold in a cave but I do think you should get into quicker turnaround projects. Remember “musical chairs in kindergarten?

3. Opportunity – If you’ve ever felt uncomfortable when doing something it may be because you’re listening to the wrong folks. I’ll have Lesson #3 “Friends and Influences” (from my famous Course “How to Become a Real Estate Investor in 12 Easy Lessons” on the Blog page this afternoon. This quick quiz takes less than 30 minutes and it may change your business for the better! Comes down Monday.

4. Most of our members are good at feedback, sometimes more than others. Right now we’ve got a lot of folks on the RealeFlow system of finding leads/deals and marketing to them http://realeflow.com/reia/new-hampshire-reia/
I’m interested in how this is working out for you? We’ll demonstrate it again in a short segment at the Tuesday June 28 meeting.

4. Speaker – Attorney Brian is back with his Collections advice. If you follow it, your chances of collecting ALL your payments (and extras) are very high. If you don’t follow his advice he’ll be glad to buy your contract/execution from you, if it’s high enough, for $.05/dollar. That’s 5 cents on the dollar value! Which is a strong incentive for you to learn how to do this right!

5. Speaker – Is your Contract with a Contractor or Contractor with a Homeowner enforceable? What do you do when problems arise? Attorney David will cover Contracts A-Z, enforceable clauses, clauses that completely negate the entire contract (to avoid) and whether to resolve your issue in Court or with a Lien?

HEY GUYS “CONTRACTS” is Real Estate 101! Table Stakes!! If you can’t put a contract together on the fly,
then maybe you need to have one, you understand, in your back pocket,
or maybe you can drive around WITH an Attorney to put it together, however this may cut your margin down;-)

6. Did you know there is usually ONE of every Partner or Service you would need to Find, Buy, Fix-up, Sell/Rent in attendance at every one of our meetings. We’ll go through it next Tuesday!

I look forward to see you next Tuesday, Mike Hurney, Director MassRealEstate.net PO Box 307, Marblehead, MA Tuesday June 28, 2016 6:30pm at WorldDepot.net 47 Newbury Street (Route 1 North just before Sonic carhop) Peabody, MA 01960 No charge to members, only $25. for guests or only $99/year to join.

PS Don’t forget those hardwood floor deals with Keri at WorldDepot.net or just stop by and run a scenario by Angleo, the flooring expert!

PPS We’ll also get a rundown from Jason, the Kitchen Designer at WorldDepot.net on the 4 brackets of Kitchens they handle: $2,500. – $5,000. Entry level. $15,000. – $18,000. Semi Custom. $40,000. – $60,000. American Custom. & $100,000.+ Studio Becker. These prices do not include Appliances or Flooring. Remember the 10% rule?

PPS David Lindahl July 26, 2016! a Do Not Miss event. Multi Family Investing. Finding the Hot Markets and Financing to get ahead! also getting past your three biggest roadblocks! Maybe Daniel will be back from Detroit with an update…

Your Team Building Construction Supplies, Insurance and Tenant Check

As you, The Conductor (the Real Estate Investor) puts your team together you may want to include these Partners (as always a little shopping won’t kill you):

HomeDepot.com for their thousands of construction materials and tools 2% CashBack on all your purchases and 20% off their quality Behr paints.

The Home Depot® is the world’s largest home improvement specialty retailer. The Home Depot offers customized cost reduction solutions that target and meet the evolving needs of professional customers involved in residential and commercial construction, and facilities maintenance. Get access to The Home Depot’s Pro Xtra Loyalty Program, NewHampshire.org rebate incentives, volume pricing and more.

RealProtect For insurance on your Investment Properties and Business Liability

On behalf of the entire team at realprotect, we are excited to be the official insurance partner of  National REIA.  We look forward to working with you to provide superior information and insurance products to protect your real estate investments.  We have just rolled out a brand new insurance program that is EXCLUSIVE to REIA members!As with any new relationship, we feel it is important for you to know a little bit about us and our philosophy when it comes to insuring real estate business.  Let’s face it – if you’re an investor with multiple properties or just thinking about buying your first piece of property, you’re in the real estate business.

ISC – you need to see who your renting to and avoid a potential huge mistake that might not go away.

ISC (Investigative Screening & Consulting) Connect is the solution rental property owners and managers have been crying out for. We’ve combined the hands-on human element of investigative techniques we’ve always been known for with the speed, convenience, and cost-cutting power of the digital age to provide you with an all-in-one, mobile web-enabled screening process. Now NewHampshireREIA.org members receive a discounted $0.95 set up fee. There is a reason so many national and local chapters are turning to us for help.

 

Spring/Summer Checklist

Keep your Rentals and your own Home) running smoothly and looking grat with this simple checklist. Making these repairs an/or additions may also attract possible Tenants to that vacancy you have been trying to Rent out!

  • Handout different colored stickers to each Tenant to place on anything in any basements or storage areas that they’d like to “SAVE”. Otherwise in two weeks it’s gone! Cleanout time.
  • Repair window screens and check screening on porches before bug season arrives. Save old screens for patches.
  • Build or repair fences and arbors so they will be ready for planting season.
  • Aerate lawns, de-thatch, rake and bag your first cut. Then you can mulch each week with no leaves or branches.
  • Repair deck boards as needed, remove protruding nails and replace with coated or galvanized screws. Be sure to check and tighten bolts in deck supports.
  • Tighten all the screws, nuts, bolts in any garage doors.
  • Clean and seal wood deck as necessary. Deck stains with at least some pigment lasts longer than clear sealers.
  • Reverse ceiling fans – they should have been blowing upward in the Winter and clean the tops of the fan blades.
  • Check that Winter wind hasn’t lifted vinyl or aluminum siding then repair it.
  • Wash black streaks from the roof. Use prepared cleaner or save some extra money  and mix your own: Combine one part chlorine bleach with three parts water and a handful of trisodium phosphate. Apply to small section of roof with a garden sprayer, let soak 20 minutes, then rinse lightly with a hose. Rain will finish the rinse. This mixture is extremely slippery, use caution if you have to a walk on any of these areas after you’ve sprayed them!
  • Wash siding and gutters with a similar solution. You’ll have fewer streaks if you start form the bottom. Always spray on the horizontal or down, spraying upwards can penetrate between windows or under the siding lap. Always be careful with ladders around power poles.
  • Scrape and touch up exterior paint, paying special attention to window sills, gable vents and garage doors.
  • Complete large exterior painting jobs. Follow the shade – don’t paint in direct sun – and quit before dusk so the paint can dry before dew forms. Cheap paint is not a bargain. For most exterior jobs, look for 100% acrylic and buy at least the “better” quality.
  • Clean gas grill and replace any rusted or damaged parts.
  • Check crawl space for moisture and remove debris. If you spot signs of carpenter ants or termites, call a professional.
  • Clean concrete drives, walk-ways and patios.

Thanks to the Chicago Area REIA

Your weekly news and updates NationalREIA Lori Hudson

36k Completed Foreclosures in March 
This week real estate data powerhouse CoreLogic released their March 2016 National Foreclosure Report which shows national foreclosure inventory declined by 23.2% and completed foreclosures declined by 14.9%, both numbers year-over-year.  The number of completed foreclosures nationwide decreased year over year from 42k in March 2015 to 36k in March 2016, representing a decrease of 69.7% from the peak of 117,782 in September 2010.
Rising Compliance Costs Hurt Home Builders 
A new study from the National Association of Home Builders (NAHB) shows that, on average, government regulations account for nearly a quarter of the price of the average new home.  Three-fifths of that final number, 14.6%, is due to a higher price for a finished lot resulting from regulations imposed during its development.  The other two-fifths of the house price, 9.7%, are from costs incurred by the builder after purchasing the finished lot.
CFPB Acknowledges Problems with Regs – Will Seek Input 
The Washington Post is reporting that the U.S. Consumer Financial Protection Bureau (CFPB) has acknowledged problems associated with its attempt last fall to add more transparency to the home loan closing process and is now seeking public input on how to fix them.  Title companies and real estate agents have complained about the confusion and inconsistency brought on by these new “Know Before You Owe” rules, which took effect last Fall.  Reform proposals will be published in the Federal Register and comments from the public will be considered (how nice of them). Then, at some point, the CFPB will issue a “final rule” with the issues they chose to address.  Stay tuned.
Foreclosure Starts Lowest in 16 Years  
The Mortgage Bankers Association is reporting that the percentage of loans on which foreclosure actions were initiated was .35%, down one basis point from last quarter and 10 basis points lower than this time last year.  In addition, the data reveal that foreclosure starts were at their lowest level since Q2 of 2000.  The delinquency rate for mortgages on 1-4 unit properties remained unchanged from last quarter at 4.77% of all outstanding loans.  This is the lowest rate since Q3 of 2006 and 77 basis points lower than one year ago.
Combining Real Estate Investing with Notes 
RealtyTrac recently featured an interesting article by NoteSchool’s Eddie Speed & Kevin Shortle entitled “Make 5 Times the Profit by Combining Real Estate Investing with Notes.”  In the piece, the duo discuss how a husband & wife team purchased a vacant home using real estate and note investing techniques, instead of the traditional approach of buying and then reselling to a rehabber.  It’s quite fascinating.
Real Estate Industry’s 1st “data mart” 
This August, data-powerhouse CoreLogic plans to launch what it calls Trestle; “the ultimate listing data management and property information tool for brokers, technology providers, and multiple listing organizations.”  Drawing information from over 300 MLS’s, (and their own data), CoreLogic is setting up a virtual data marketplace targeting  brokers, technology providers and multiple listing organizations.
7 Things to Consider Before Investing in a Crowdfunding Project 
There is no doubt that crowdfunding will have an incredible impact on the way real estate deals get done in the future.  We’ve featured many posts about the subject here at REI2Day.  Today’s infographic suggests seven things to consider before investing in a real estate crowdfunding project.

Memory Points Sell! Dave Lindahl

Memory Points Sell!

Dave Lindahl who’ll join us July, 26, 2016!

Memory points can help sell a customer (renter or buyer) on your multi-family property. Sometimes even something small can make your property stand out from the rest. That something small is a memory point. And a memory point is what sticks in potential customers’ minds making them much less likely to forget you and your property.

Anything you can do to increase a potential customer’s favorable impressions of your property brings you that much closer to completing a deal. You can even begin before you show the property. For example, you can set up a model unit for showing  that is home to a unique color scheme. This is likely very unforgettable.

Or, you can give potential residents of a larger multi-unit a memory point of the property’s clubhouse as an inviting community space. One way to do this is by creating the image of a front porch. There are few methods to use to achieve this. You can put out welcome mat; you can put in banisters; or you can create a path through the grassy area to get to the new porch. These are all inexpensive options.

It is a very good idea to get your potential customer interested in your property from the moment he or she enters the leasing office. If customers have to wait for any length of time, give them something to do that provides them with memory points of the property. One idea is to let them view video of the property. This is unique and the experience will stick with them.

You definitely do not want a negative memory point. If you see unhappy residents, keep them out of sight with a rolling display. On this display, you would have floor plans and the site plan. Roll your display away from the unhappy residents and into a friendlier environment.

Another great way to create memory points is to place words in various locations around the apartment or condo unit. These words should be suggestive of pleasant feelings or ideas. Wall decals/stencils are now widely available, or you could make your own cut-outs of words such as “ENJOY” or “HOME” in the dining and/or living rooms. Then, have your agent use the same word in a sentence or two to subtly bring the message home. For example, “You will enjoy meals in your dining room.” Or, “This room feels like home for me.”

As your customer leaves, give him or her something to remember you… A brochure of the floor plan with a written message from you is a great memory point. Also, follow up on the visit with a phone, email or text message to jar the customer’s memory of the unit.

Another nice idea is to create a special greeting to send prospective residents. This could be in the form of an email. And, it could (and should!) include streaming video of the property.

Do whatever you can to make your property stand out from the rest. Create memory points—big or small—that make a lasting impression. This all adds to your investing success!