When the shows come to town and the Pixie Dusters “teach” you strategies to make a quick $5,000./week in Real Estate, I resent the fact that they avoid the basics!
In my course “How to Become a Real Estate Investor in 12 Easy Lessons” you’ve got to MASTER an Area and the Values. Basic! If not, you miss the deal. Like the Prince in Cinderella! At least at first. Do you want to go through your whole area with that “Glass Slipper”, now knowing you had the opportunity of a lifetime right in front of you? I don’t think so. There’s no need to. Understand the Market and Values. You’ll know it when you see it and can act on it!
At our monthly meeting we analyzed Peabody, MA and found THE area that was moving. From the MLS I found in the last 30 days, 61 Single Family Listings. Average List Price $366,409. Average Sale Price $252,944. Average Market Time 89.16 days
I believe this data is misleading because it is a compilation I use of Active & Sold property which helps me with my Comparable sales. I also use the most recent 90 days.
But it did help me make a point of where to act.
Of the 9 actual sales 8 were in the $169k – $319 Bracket.
My point was that you would be prudent to buy/fix-up/sell in that price category once you knew the values! Especially since there’s almost no activity above that bracket. In addition to longer Market times and Carrying costs are higher.
Need a Partner to help with your Real Estate Investing? In this market a mistake, like overpaying, takes a long, long time to correct. I’m glad to work with you and Easily help you through “How to Become a Real Estate Investor in 12 Easy Lessons!” Mike@MassRealEstate.net

Joe’s the latest investor to take my course: “How to Become a Real Estate Investor in 12 Easy Lessons!”

and He’s using one of the lessons that’s a killer technique for convincing Sellers to “take back” a note on the property. Killer because it works just about every time. What Seller wouldn’t want more money than they’re asking for? How about you, Ever think you’ll have a Bank or Building named after you? Or make money like a Bank? When you learn to think like a Bank you have half a chance!

Good luck Investing! Mike

PS Interested in the course? It’s only $599. for non-members. $499 for current members of theMassRealEstate.net Association. Includes Personal coaching. First lesson is FREE to all. You can email me at Mike@MassRealEState.net “Become an Investor” in the Subject box and we’ll start together!

First – Happy New Year! We made it through a tough one.

I read a lot and most active, successful investors do also. Recently I read several articles that impressed me:  (you can let me know, on this Blog, if you’ve read something that impresses YOU)

Rich Dad (his book, along with many others, your choice, is available when you join MassRealEstate.net as a Bonus  Book for only $99/year Membership or $119/couple) wrote the difference in why some people are Richer than others: They think Rationally vs thinking Emotionally. I’ve spoken many times on the ability of successful RE Investors who use their Rational thinking and become “Contrarians” Buying when the “herd” is Selling and the inverse Selling when that same herd is Buying. Often it requires nerves of steel to do something different from everyone around you. You know you’re right but what if your timing is off a little. Mr. Kiosaki calls it “Fear of Ostracism from your Peers”. At one time I thought we were on the famous “seven year cycle” which gurus espouse. So 1985 was a peak then 1991 was a recession trough. We were supposed to go up for 7 years before another peak. However in 1998 I looked around, we in Real Estate were heading for the sky and the market did not peak until 2005. Fortunately my signals did keep me in beyond ‘98. Now, how long will our current recession take to trough? Some say it’s here now and we’ll turn round in mid 2010? Personally I don’t think it matters when you buy. As long as you purchase WELL below market and sell JUST below market, leaving something for the next person.

So how do you buy? I read how Larry never pays more than 70% of after repaired value invested which includes purchase, repairs and closing costs. So a Single family in my area is worth $350,000. Let’s back it out with $35k in repairs and 5% closing costs and the most I can pay for this is $210,000.

Doug had a Seminar where he told Investors his formula, using an example: Purchase price $115,000. Rehab $25,000 Total maximum acquisition cost is $140,000 Only if he can sell it for 50% more $210,000.

I’ve got a different approach based on continuous research. I’m at 10-12 Open Houses every Sunday in my “farm” area. I see what’s on the Market then I follow up to see what they’ve sold for. I also stay up on my Construction costs, Labor and Materials. This is the basis of our training in my course “How to Become a Real Estate Investor in 12 Easy (formerly Tough) Lessons” by Mike Hurney for only $599 (members of MassRealEstate.net only $499. Membership is only $99/yr). I spend a good deal of focus on what the house would sell for in “perfect” condition then back out my Upgrade costs, Holding costs, Commission and Profit of a minimum of $40,000.

Want a Real life example or have a potential deal to run by me? It’ll be a quick, fruitful call if you’ve got some of those costs in advance 781-405-1845 cell, Mike Hurney

PS So how do YOU buy?

This is a departure from my normal Remodeling and New Construction work but very necessary given our Winter conditions here in New England.

I don’t want to get called back in the middle of the night so I’ve always located pipes in inside walls and NEVER on Outside walls.

Got a freeze-up or no heat call? Give me, Tom Hoyle, a call at 617-298-0231 Let’s get your heat back on and relocate those pipes that have a tendency to freeze in these super cold and windy conditions.

Thomas Hoyle, Licensed Plumbing, Heating and Gas Fitting. Simply the Best 617-298-0231