4 Most Common Mistakes that Slow Down the Loan Process

Getting a property financed can be an overwhelming process. Sometimes borrowers don’t recognize the bumps in the road that will derail their project plans and loan schedule. Here is a list to help you see and remember the small, but important, details involved in getting a loan. These are the most common time sucking land mines that drag the loan process out (or even cause disqualification) along with tips to avoid them.

Scheduling & Anticipating the Appraisal

Loans officially start when they are put into processing, which does not happen until appraisal reports are turned in or the application fee is paid. A loan will be delayed if there is an issue getting the appraisal. Sometimes a borrower will schedule an appraisal when the property is not available or repairs/rehab are incomplete. For example, someone may live in or on the property and will not allow the appraiser access to the property. The loan will be delayed if this happens. If the appraiser arrives and finds the home in the midst of rehab, the loan will also be delayed.

Another bump in the road related to the appraisal occurs when the value of the property is based on too little research. This usually leads to an inflated initial value. If the appraisal comes in lower than what the borrower expected, this will delay the loan process and can even halt it altogether.

Key: Be ready, careful, and deliberate about scheduling the appraisal. Coordinate with the current occupants and your contractor.

Key: Be really accurate from the start about the value of the property.

Documentation

Procrastination, my favorite strategy, does not help when it comes to loan documentation; like taxes and even more than hearing protection, documentation is required. It is a terrible idea to wait to start gathering the documents necessary to move the loan process along until the appraisal comes in. Start by making a list of the documents you need as soon as you come up with your project and begin immediately, while the idea is hot, to gather them and check them off your list. Your goal is to have them ready as soon as your loan goes into processing.

Key: Gather the necessary documents when your idea is hot.

Hazard: Wrong Policy Type or Amount

You might not think of hazard insurance in connection with your loan but obtaining hazard insurance is a very important component to securing a loan. Carefully study the types of coverage available and don’t just buy a policy to say you have it. Buy hazard insurance that covers 100% of the replacement cost of the property and calculate the premium carefully. Often the wrong type or amount of coverage is purchased, which will not only slow the loan down but can also potentially change your loan parameters (up to and including disqualification).

Key: Know your numbers. Buy hazard insurance that covers 100% of the replacement cost of your property

Title Clouds

Liens, judgments, delinquent taxes, and mortgage releases are all common things that show up on a title. These things take time to clean up and drag the loan process out. Be sure to check your title for these attachments before you start your loan. If you have any clouds on the title, you’ll want to clean them up asap to keep your loan on schedule.

Key: Start early, Clean up the title ASAP.

Patience may be a virtue, but it is one that is often tested when you are eager to close a loan and get on with your project. To save your dream and your nerves, follow these tips: coordinate the appraisal, be accurate on the value, gather the necessary documents, buy the right insurance, and clean up that title.

I would be pleased to give you a hand, and I have funds available for lending.

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

Photo credit: Niklas Bildhauer CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)

Beautiful Fort Worth House in the News

Posted on February 28, 2019 by Patrick StCin

The home of LeAnn Behrens and David Montague in Fort Worth’s Park Hill neighborhood appears in the Wall Street Journal (wsj) three times, in film, in article, and in photos. I enjoyed all three mediums. The film was made by Rob Alcaraz. The article written by Alina Dizik, and the photos taken by Casey Woods Maddeaux.

Rebuilding After a Fire

David and LeeAnn completed their home in 2017 to replace the one that was lost in a fire when the fire in an outside grill on the deck spread to the house. This house is on the site of the old house. Out of this tragedy, the couple started from a clean slate, with the help of architect Michael Bennett, to build a home where they could display their collections and live and entertain.

A Video Tour

In the video, David leads viewers on a tour of the home from the front door with a welcoming, “Hello I’m David, welcome to our house,” as he opens the front door. The house he describes as a perfect combination for them, combines living areas, art galleries, a library, and museum in 6,000 square feet with 4 bathrooms and plenty of areas to entertain in.

David shows viewers some of the artwork displayed in the house, his collection of books, and some of the building techniques they used on the back deck, like the burned wood siding, a technique he says is from Japan. The burned wood is proper because it reminds them that the original house that stood there burned down. Also, inspired by their survival of the file are the designed-in multiple decks and multiple ways to get out of the house.

“It Makes Sense to Us”

The art and books are all things David and LeeAnn like and have purchased. “It makes sense to us, even if it may not to anyone else,” says David when pointing out some of the art that is paired with one another in the living room. The central gallery space includes more than 20 masks and two Day of the Dead-themed portraits by multimedia artist Dolan Geiman along with a commanding bird sculpture from Africa. Photos of the house can be found at
https://www.wsj.com/articles/a-fort-worth-home-built-around-a-couples-collections/

4,000 Books

Did I mention already that David Montague collects books? His collection of 4,000 books had to be rebuilt from scratch after the fire. The two-story library in his new home includes a fire place with a white plaster representation of the Continental Divide by a local artist and comfortable places to read. In the film tour, David explains that he is collecting some of the original works about the fur trade written by the original mountain men and how that inspired the Continental Divide plaster relief that extends from the first floor of the library to the second floor.

Some of the other interesting features of the house are glass walkways in the upper floor to foster a sense of connections throughout the home, a second-floor coffee bar outside the couple’s master bedroom that opens up to a second floor living room that overlooks the pool in the backyard.

A Red Stove & Day of the Dead Portraits

The pieces that really caught my eye were the red Bertazonni range that gives color to the modern grey-toned kitchen, the 4,000 books (did I say that already?), the two Day of the Dead portraits in the entry hall, and the African Ship sculpture in the living room that is just calling out to be touched.

Okay to Touch

The home does not have a “no touch” policy according to David like a museum would. David says that the art is “pretty much indestructible—they were built for a tribal setting.” As a tactile explorer myself, I am happy to hear that.

Take a look at this beautiful Texas home on the media you like best, or like me, watch, read, and view all three.

This rebuild was way more radical than a standard fix-n-flip, but don’t forget that you too can make a comfortable beautiful home out of a house, one that will hold and display your or your buyer’s treasures. I’m always on the look out for ways to make a fix and flip house stand out.

Let me know if I can be of help to you this month. I can be reached at

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References:

Dizik, Alina, 2019, A Texas Home That’s Part Library, Part Gallery, wsj

Maddeaux, Casy Woods, 2019, A Fort Worth home Built Around a Couple’s Collections, wsj photo article.

Alcaraz, Rob, 2019, A Home Built to Be a Live-In Museum and Expansive library, wsj video

Photo credit: Caroistda [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)%5D

Abandonment

Posted on February 27, 2019 by Patrick StCin

I recently added an Escrow Glossary of Terms to my website. You might want to check it out. The first word is a rather sad one, “abandonment.” Of course, the list is alphabetic. “Abandonment” is an official term in real estate the means the voluntary relinquishment of rights of ownership or another interest (such as an easement) by failure to use the property, coupled with an intent to abandon (give up the interest). This subject is relevant because in your search for a fix-n-flip project to invest in, you might run into a house that looks abandoned. It may be. It may not be.

Intention to Abandon

According to the Letter of the Law, volume 13, number 4, 1999, by Judon Fambrough, “an essential element of abandonment is the intention to abandon and such intention must be shown by clear and satisfactory evidence.” Judon goes on to say that non-use and failure to maintain and repair property is not sufficient evidence on its own to prove abandonment.

While title to real property cannot be lost by abandonment, it can be lost in other ways. Land title can be lost by adverse possession when another person possesses and uses the property without permission for a specified time. Real property can also be lost by forced sale when a sheriff sells the property for delinquent taxes, a trustee sells the property for delinquent mortgage payments, or a homeowner’s association sells the property for unpaid assessments.

Adverse Possession

On the LoneStarlandLaw.com website, David J. Willis explains that adverse possession refers to circumstances under which one may lawfully lay claim to ownership of property not originally one’s own. Classic examples include the rancher who fences in an adjoining tract and pastures his cattle there for a decade and the family that gradually takes over the empty lot next door.

According to Willis, foreclosed houses are often perceived to be abandoned because they are sitting idle. These houses are not abandoned and the courts have tended, he says, to protect the interests of the absentee lenders who are now owners.

Facts and the Law

Everything about an adverse possession claim must be based on facts and the law. For one thing, to make a legal claim of adverse possession, you have to have a legal description of the boundaries. The boundaries cannot be uncertain. Paying taxes or back taxes on a property does not guarantee possession either if the original owner shows up, it does however prevent the eventual sale of the property in a tax sale. If a title search reveals an owner of record that can be located, it may be better to contact them and buy their interests.

Willis also says, the law is does not condone or contemplate the use of the adverse possession rules as a business plan for aggressive investors. This strategy is involves breaking the law, for example, breaking and entering, file false instruments, slander of the title, and fraud.

Knock

If you find a house you think is abandon, fall back on my strategies for finding motivated sellers. Knock.

When you find a home that looks abandoned, one that might be up for sale if you can find the owner, knock on the door. Knock on the neighbor’s door too. If no one answers, ask about what is going on with the property. Leave behind your business card. Write down the addresses and research the property from your computer. Write about the house in your journal of prospects and follow up every month. You can keep an online journal too, photographing the house and making notes to help you remember to follow up.

Remember the door hangar. It can be something simple that you make yourself with a hole punch and rubber band, or something you more polished that you order form an online printer. It should say something like, “We buy houses. Call 512-555-1212.” If no one answers when you knock, leave one of your door hangars.

When you have contacted the buyer and have done your research on the value of the property and know how much it will cost to remodel the property, I can help you with a loan program to purchase. Your fix and flip or rental property. I am happy to announce that a loan program is now available to purchase rental property for the purpose of building your short-term or vacation rental property business.

We have funds available for single-family residential property, condos (warrantable only), and ocean beach front property.

I would be pleased to have you call or e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References

LoneStarlandLaw.com website, David J. Willis

Letter of the Law, volume 13, number 4, 1999, by Judon Fambrough

“To the Nines”

Posted on February 26, 2019 by Patrick StCin

According to Investopedia, The Market Sum, by Caleb Silver, the value of the stocks for both Walmart and Amazon, the two giant retailers ended up 9% higher this year.

Walmart fiscal 2019 Revenue: $514 billion
Amazon 2018 total Revenue: $233 billion
Walmart fiscal 2019 operating cash flow: $27.8 billion
Amazon 2018 net income: $10 billion

So, the nines seem to have it. I know that I spend quite a bit of money at Walmart and Amazon. Add in my mortgage and the local grocery store and that is where most of my money goes. I believe that this news is no surprise.

However, I was surprised to know that there is no definitive explanation for the phrase, “dressed to the nines” according to Endangered Phrases by Steven D. Price. He says it means wearing fashionably elegant clothing, but history fails to tell us exactly where that term comes from. Among the explanations that have been advanced, “the nine worthies of the ancient world, the British Army 99^th Foot Regiment’s smart uniform, the nine buttons on the gloves owned by a medieval woman, and the nine muses.

Price reminds us that nine has a special significance in the English language even if we don’t know why. There is “cloud nine” and “the whole nine yards.”

The “whole nine yards” might come from the amount of cloth it takes to make a suit of clothes or the amount of cloth it takes to make the sails of a three-masted ship (3 yards for each sail) (The American Heritage Dictionary of Idioms by Christine Ammer). Personally, I think it has something to do with football, soccer, or golf; nevertheless, it means “everything that is relevant.” And, “cloud nine” refers to a state of complete happiness. (Farlex Dictionary of Idioms, 2015)

I did say we should learn new things in 2019. I did think it would be something more than idioms that include the number nine, but I’d say that Walmart and Amazon both would agree that nine is a good number in this year 2019.

Walmart and Amazon are talking in the billions of dollars, but I am down here on earth with you and happy with lesser amounts. Although investing in real estate projects is a whole different beast than selling retail goods, it still offers rewards that include profit for your risk and your effort, and best of all, it may launch you into new directions, careers, and interests. white dress As a private lender, you would expect a much more secure and short-term investment experience than you can get investing in the stock market or in retail sales. Your investment in the form of a loan to a borrower interested in remodeling and reselling real estate would be secured by the real estate, and the project would be completed and resold in a few months or a year. Let me know if I can be of help to you this month. I can be reached at

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References:

Ammer, Christine, The American Heritage Dictionary of Idioms.

Farlex Dictionary of Idioms. 2015 Farlex, Inc,

Silver, Caleb, 2019. Investopedia, The Market Sum https://link.investopedia.com/join/53o/00-fwd-marketsum

Price, Steven D. 2015. Endangered Phrases

Photo Credit: Lai Fong (Lai Fong of Calcutta, fl. 1870-1910) Attributed to [Public domain]

Photo by Bryan Schneider on Pexels.com

How to Close Your Visio Loan Fast

Posted on February 25, 2019 by Patrick StCin

Attention. Today, it is hard to focus the laser beam of our mind onto what is pivotal. Our mind certainly can be a laser beam, but too often it flickers, back and forth from one thing to another like a match in a wind storm. If time is money, attention is gold, and a sense of urgency can be your friend when you are interested in borrowing money to start your rental or vacation rental business.

My goal here is to help you sort out what Visio needs to know, what is pivotal in the process of financing an investment property, one that you want to buy and hold onto as an investment. By focusing on these critical areas, you can speed up and simplify the process of getting your loan Visio loan closed.

Pivot 1. Property Value beyond the Appraisal

Talk to your local realtor and do your own research to determine the comparable value of your property. Appraisals provide us with helpful indications of value, but we also rely heavily on our own research and analysis. Please let us know if you’ve made improvements to the home, detailing what has been done and the amounts invested.

Please let us know if you’ve made improvements to the home.

Pivot 2. Property Condition

Appraisers rate property condition using a scale of C1 (New) to C6 (Complete Redevelopment). We only lend on rent-ready properties (C1–C4). ALL repairs and rehab should be completed PRIOR to starting a loan with Visio. While we sometimes finance properties requiring some minor redevelopment, we make these decisions on a case-by-case basis. If you are concerned that your property may need too much work to qualify, send us some current pictures before ordering the appraisal.

We only lend on rent-ready properties (C1–C4).

Pivot 3. Recent Transactions

If the home has changed hands in rapid succession with significant increases in value, we need to know ahead of time. We need to understand the reasons behind the increase in value before making the loan. Finding out late in the transaction almost always causes problems.

We need to understand the reasons behind the increase in value before making the loan.

Pivot 4. Non-Arm-Length Transactions

A non-arms-length transaction involves a buyer and seller that have a pre-existing business, personal, or familial relationship. We will make these loans, but we want to know up front. Visio is not a consumer mortgage lender, and therefore cannot allow family of the borrower to remain in the property.

Visio is not a consumer mortgage lender, and therefore cannot allow family of the borrower to remain in the property.

Pivot 5. Fees

Our Account Executives will provide you with a detailed fee worksheet showing all our fees well in advance of closing. Please read the fee worksheet. It is not in anyone’s interests to have a deal fall apart at the closing table over fees.

Please read the fee worksheet.

Pivot 6. Title

If you are refinancing with Visio please give careful thought to any liens, judgments, or delinquent property taxes on the property. These will come up during the title phase, and they not only take time to clean-up but could also result in disqualification. If you’re buying a property, we require a clean title to close. Items such as releases of old mortgages or the existence of ground rents/land leases, which are common in some areas (MD), can take substantial time and effort to address.

We require a clean title to close.

Pivot 7. Borrower Name(s)

If you are refinancing with Visio, please consider whether there is anyone else on the title with you. That person will need to be available to sign documents. In addition, we will title the property the way it comes to us. If you are attempting to remove anyone from or add anyone to title, please resolve this prior to starting a loan with Visio (see “Borrowing in an Entity” below for exceptions). For purchases, if you are buying from a government agency, such as HUD, execute the purchase contract in the exact name in which you intend to hold the title. They are not very flexible about changing names mid-transaction.

Execute the purchase contract in the exact name in which you intend to hold the title.

Pivot 8. Investor Insurance

Research and choose your insurance product EARLY. It likely will take longer than you think. Consider the cost as well. If your premium is proven to be more expensive than you are estimating, it could potentially change your loan parameters, up to, and including disqualification. Accurate escrow estimation is paramount to an accurate quote from Visio. Please note, we require hazard insurance to have 100% replacement cost. We do not allow actual cash value policies.

We require hazard insurance to have 100% replacement cost.

Pivot 9. Borrowing in an Entity

We lend to entities, such as corporations, LLCs, and partnerships. Please make sure your entity is fully established and is in good standing. We’ll need all the documents to complete your loan. If you are attempting to change the titled entity, we can accommodate if the ownership interest is identical between both entities. (See “Borrower Name” above.) We do NOT lend to trusts nor non-profit corporations.

We do NOT lend to trusts nor non-profit corporations.

Pivot 10. Sense of Urgency

Time and attention is always of the essence. Thoroughly read emails and respond to communication from your account executive and processor. We are always available to help and provide clarification to ensure a smooth transaction.

Thoroughly read emails and respond.

Give me a call or send an e-mail and I will help you to move quickly, get the best deal, and start making money sooner.

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

Photo reference: Lmatt123 [CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)%5D

Going Up: Infrastructure Jobs

Posted on February 22, 2019 by Patrick StCin

According the U.S. Bureau of Labor Statistics’ Beyond the Numbers publication, infrastructure-related occupations pay well, over $37, 690 do not require post-graduate degrees or a degree at all in some cases, and can be expected to grow in the next 5 to 6 years. So, if you are looking for a job that might give you a good return on your education dollar, a career in building America’s infrastructure looks like a good deal now and in the future.

Bachelor’s Degree

Some infrastructure occupations require a bachelor’s degree, including planning and designing jobs, civil engineering and environmental engineering jobs, surveyor jobs, architecture jobs, health and safety engineering jobs, and construction management jobs.

Associate’s Degree

Other infrastructure-related occupations that require post-secondary education, but less than a bachelor’s degree include drafters, civil engineering and environmental engineering technicians. These workers typically enter the profession with an associate’s degree. Wind turbine service technicians and commercial drivers also usually require some nondegree education.

Apprenticeship or On-The-Job Training

Most infrastructure related occupations that prepare the worksite or build the structure typically require workers to have a high school diploma or equivalent. These jobs include construction trade workers, such as sheet metal workers, carpenters, and brickmasons and blockmasons. According to the U.S. Bureau of Labor Statistics, several of these occupations require an apprenticeship. An apprenticeship consists of a combination of on-the-job training and technical instruction, which lasts 3 to 5 years.

High Pay

The 10 highest paid jobs involved in infrastructure include:

Boilermakers

Cost estimators

First-Line Supervisors of Construction Trades and Extraction Workers

Landscape Architects

Electrical power-line installers and repairers

Architects

Civil Engineers

Environmental Engineers

Health and Safety Engineers

Construction Managers

High School Degree or Equivalent

Three out of these 10 highest paid jobs in infrastructure require a high school education or equivalent but need additional on-the-job training to be competent.

Electrical power-line installers and repairers, on-the-job training longer than 1 year

First-Line Supervisors of Construction Trades and Extraction Workers, 5 years or more of construction experience

Boilermakers serve an apprenticeship.

Upward to 2026

Between 2016 and 2026, these infrastructure-related occupations are expected to grow at least as fast as average. The nation’s demand for infrastructure will help to drive the demand for these occupations.

If you are considering investing in real estate or in remodeling real estate, call me for assistance.

I have funds to loan.

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

Reference:

Tate, Patricia, 2018., The employment outlook for occupations tasked with building America’s infrastructure. Beyond the Numbers, U.S. Bureau of Labor Statistics, vol 7, No. 17.

Photo Credit: Reinhard Dietrich [Public domain]

Censusdata at English Wikipedia [CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)%5D

The Media Room Must Have

Posted on February 18, 2019 by Patrick StCin

Even though you might not be building or remodeling a 9,000-square-foot mansion in your next fix-n-flip or vacation rental property update, you might want to consider installing a multi-functional media room in the main part of the house you are working on. The WSJ article, “The New Mansion Must: A Media Room,” by Cecilie Rohwedder, says this multimedia room is the latest trend in home design and might include any number of huge flat screen TVs occupying the same space as a fireplace, picture windows, games tables, couches, and computer work stations, all situated a short walk from the refrigerator in the kitchen. This multifunctional room is making itself at home in the “open-concept” floorplan and replacing the dark, sound-proof basement home theatre.

Recessed and No Glare

Making multi-tasking all the more real, in some homes, this multifunctional room might include a bank of multiple recessed flat-screen TVs with anti-glare screens and hidden audio systems so a movie, a social media feed, the news, and a PowerPoint slide you are working on for your job can all be showing at the same time. There might also be large picture windows with automated shades that can be lowered to block out light.

Electrical Outlet Planning

To make all this convenient and easy on the eye, this will take some electrical outlet planning with your electrician before you start the project, even right up front when you are putting together your budget and loan request. (As cheap as flat-screen TVs have become, you might want to consider throwing in a few flat-screen TVs to make the remodeled house more sellable. The RV industry has started to do that.)

The wall where the flat screen or flat screens will appear would need an outlet behind the flat-screen TV (or TVs) so the cords don’t show. For the automated shades, you might want to put outlets along beams in the ceiling or high up on the walls next to the windows. If there is a fireplace in the room, you could plan outlets for either side of the mantel.

Visualizing that work, study, and socializing might also be going on in this room, outlets in the floor where a desk or game table might go will prevent cords from being stretched everywhere, and outlets a little above desk height in the corners will be handy for charging devices or plugging in computers, and you won’t have to crawl around on the floor to reach the plug ins.

Invisible

Now that you are on the road to becoming your own media installation contractor, you might be interested to know that according to Admit One CEO Lance Anderson (interviewed in the WSJ article) the job of the media installation contractor is to “not be an ‘eye sore’ blackening someone else’s design.” You need to make the electronics behind the entertainment invisible. Jason Barth of Premier Group in Carmel, Indiana says, the media system should be experienced, not seen.”

If I can help you with a loan, please call. I have funding for fix-n-flip projects.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References: Rohwedder, C. “The New Mansion Must: A Media Room,” (2019) WSJ

Finding Houses to Buy and Owners to Sell — Strategy #3

Posted on February 15, 2019 by Patrick StCin

When you are looking for properties to buy and owners that are ready to sell, there is nothing like using all your contacts and making new contacts to help you find houses that are ready to buy and owners that are ready to sell. In this strategy you ask others to be a detective with you.

The Mail Carrier and the Dog Walker

Enlist the help of others who can refer you to people thinking about selling their place and moving on, including landscapers, general contractors, cleaning/maid services, dog walking services, pool cleaning guys, mail carriers, etc. There is a whole raft of professionals, like these, who regularly service homeowners. Get to know them, cultivate relationships, keep in touch with them; it can pay off big time for you and the seller.

Distressed Sellers

You can also draft a letter on professional letterhead and it into the hands of a real estate office in your area. Explain you are a real estate investor looking for distressed properties and can close quickly if the price is right.

You might ask, “What is a distressed property.” Well it is a distressed owner that makes a distressed property. An owner who really needs to sell for whatever reason becomes distressed when they cannot get the deal completed. We’ve listed some of these distressed owners in our previous blogs. They include people who can’t afford to make their mortgage payments and are under threat of foreclosure, people with tax debts that have required them to sell the property, and estate executors and estate lawyers for deceased property owners. They are all people, some facing divorce, some facing the loss of their job, some being transferred. They need to sell and often need to sell quickly below market value. You are willing to buy and that is a help to them. You are getting a great deal and they are unloading a headache. It is a potential win-win situation.

The Real Estate Army

By contacting the real estate agency, you can have an entire army of real estate agents working for you, free of charge. If one of them finds a property for you, the seller of the home will pay the agent’s commission. You owe them nothing; it comes off the seller’s side. Promise to use them as an agent when it comes time to sell the home you just fixed up.

Win-Win

Remember this business is a numbers game. The more you detect, the more you find. The more you market the better your chances for success. There are plenty of opportunities in your metro area to find sweet deals that will make the owner happy, you a bit wealthier and the neighborhood happier for renewing a distressed house. It is a win, win, win business.

As soon as you find a deal, give me a call for a loan fix-n-flip rehabilitation loan. You can e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

Skin in the Game ♥

Posted on February 14, 2019 by Patrick StCin

Valentines day! ♥ The perfect day to write about commitment, about putting your skin in the game, trusting a corporation, or a business, or your own dream. Falling back in love when your enthusiasm is running thin.

In the “Business Romantic” by Tim Leberecht, the book that I’ve been reading for a while, there is the story about Kay Compton and her husband, who in 2007 sold everything and charted a course that would take them out on the ocean, off the grid, for almost two years. They were both avid sailors. They decided to make the “milk run,” sailing across the Pacific Ocean, hitting all the most beautiful beaches on their way.

They alternated duties, each serving as captain of the watch while the other stayed below. “You have to have the ultimate trust in the other individual. Your life is in their hands and you have to have faith that they will keep you safe,” Compton told Leberecht. Most of the time the sailing was smooth, but they hit a storm with fifty-five-mile-an-hour winds and twenty-five-foot waves. She said that you have to make peace with your situation and realize you cannot walk away.

Compton says she remembers that time when the ocean surrounded them on her daily commute, and the memory keeps her above the fray in her job as an architect and reminds her that there can be only one leader at a time. You must understand your role and the role of others. “When someone is the Captain, you don’t argue. You don’t start an argument in the middle of the ocean.”

In our business lives, there are times when we need to put faith in the leader and not start a fight in the middle of a project. This means you have to crush down your pride and your own know-it-all self and work at the direction of the other, perhaps not to “survive,” but to make it through the crisis. Employees get this wrong when they are always standing on the edges looking for a better deal. But employers get this wrong when they forget that the crisis cannot go on for years.

To keep employees and to keep your own love of your business alive, you have to keep it real. As Matthew Stinchcomb, VP of Etsy, says, “Go for a walk instead of messing around on the internet to look busy.” This is the final value for Etsy, “Keep it real, always.”

Keeping it “real” is part of real estate.

Remember that Real Estate is solid, made of dirt and trees, bricks and mortar, or sand and stone. It has boundaries and doors and windows and homes are made there. A great business for a romantic to be in.

Photo by Pixabay on Pexels.com

Happy Valentines Day.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

Reference: Leberecht, Tim. 2015. The Business Romantic, Give Everything, Quantify Nothing, and Create Something Greater Than Yourself. Harper Collins.

Finding Houses to Buy and Owners to Sell — Strategy #2

Posted on February 13, 2019 by Patrick StCin

When you are looking for properties to buy and owners that are ready to sell, the internet is your number 1 detective tool even when you are looking for local properties. Your second most valuable tool in this search for houses to buy and owners ready to see, is your phone. I’m sure you use these everyday already, but just in case you have not considered all they can do for you, I’ll run through my list here.

For Sale By Owner

First search Craigslist ads (for example, houston.craigslist.org, austin.cragslist.org, sanmarcos.craigslist.org) local online newspapers, and even real estate sites like Zillow.com where you can find properties offered by owners. You can wing it too by typing into your browser window, every combination of key words with locations that you can think of related to houses that might need work and owners that might be ready to sell like with a location:

Fixer upper housing
houses for sale
must sell house
house for sale that needs work
vacant house for sale
real estate by owner
seller financing
FSBO (for sale by owner)
motivated seller

14_06_02_Property_For_Sale_Sign_Mamaroneck_NY

Properties Being Sold for Taxes

You might also want to look at government and auction websites where you might find houses for sale and motivated sellers. Some of these include:

Probate Properties

Probate properties for sale are another possible place to find a deal. Probate properties are owned by the estate of a deceased homeowner and are often sold below market value to property investors and potential homebuyers. The process of purchasing these properties can take anywhere from 6 month to several years.

You can find these properties from a real estate agent that might be hired by the estate executor to disperse the property of the deceased. You can also find them with probate lawyers. You can also contact the local court directly and ask for a list of all probate cases filed within the previous six months. There is probably an online docket you can check as well (for example, http://www.traviscountytx.gov). Contact the attorney for the estate or the executor. This information should be on the docket sheet maintained by the court.

Contact each representative directly and ask for information on the status of the property, how they are handling the sale, and whether an asking price has been established. If the executor is motivated to sell, they may negotiate with you directly if the court has already approved the asking price.

Some estate properties sell at public auctions which are advertised. These however often sell at or above the market value of the property.

If you make an offer, you will have to put 10% down and be aware the court will have to approve the selling price. For more information about buying probate properties see https://www.wikihow.com/Buy-Probate-Properties.

After you have accumulated a list of houses, you need to start calling and setting up appointments to visit the property and discuss the purchase. Don’t forget to request an inspection. When you have a price, give me a call for a loan. You can e-mail too.

Pat St. Cin

Patrick@InvestorsLendingSource.com

512-213-2271

Austin, Texas

References: https://www.wikihow.com/Buy-Probate-Properties.