Top 15 Worst Investments – Part 1

Top 15 Worst Investments – Part 1

REO's

Real Estate Owned : Is a property that goes back to the lending company if the foreclosure process was unsuccessful. Buying reo's are not always a great deal, and again remember that term "due diligence" I talk about it so much,well it will have to be done for REO's ,before making an offer.Make sure the price you offer is comparable to properties in the area. Staying within a 3/4 radius for comps can give you a idea on what has sold in the last few days to the last 6 months.

Make sure and consider the repair cost, how long it will take for all the repairs etc... Contacting contractors, sometimes will benefit you,  they can give you their evaluation for the work that is going to be needed, sometimes a handyman, Realtor comps of recently sold properties can give you idea as to what materials were used to repair or replace certain items. Remember that REO;s can be a tremendous  investment opportunity or it can be costly and  trouble. Make your offer and make it easy for the bank to accept.


                                                                                                             Hcompanys

"Quit Claims"

     If a person gives you a claim to any property, he is "quit claiming" the property to you. Quit Claims do not guarantee that the person quit claiming the property has any stake in the property at all, but does transfer all interest to the grantee.The quit claim deed is usually to protect a person's interest in the property.

Quit Claims can be risky, so ( some damn good due diligence will be needed) because once the deed is quit claimed in a since,it  relieves the grantor of any future turn ups; such as liens and other legal recourse.

Warranty Deeds

       A real estate deed is a legal document that conveys and assigns title to property. Warranty Deeds have similiar characteristics to a foreclosure,meaning they both are distressed properties.And that the borrower/s are defaulting on the loan. Warranty Deeds are sold by the lender after the repossession of the property.And can be pretty nice investments for investors.They also protect the buyer, they have four warranties(promise) in favor of the buyer.Always seek professional legal  advice when dealing and writing warranty deeds.

Warranty Deeds guarantee that the person selling the property is the owner(and alive,some stipulations on being alive) and has the right to sell. Its comes with no liens attached,and this means no taxes and other fees to be paid by the buyer. Sometimes it takes the edge off things knowing that

•  the seller indeed owns the title
• holder has the right to sell and has not been sold
• the property is free of claims, debts and liens ,unless otherwise stated on the deed.
• the owner carry the repair responsibilities and any problems with the property lay on the seller

     I suggest, if you plan looking into Warranty Deeds call around and locate the attorney's who can help you with the writings of W.D's. Even though they carry nice warranties, they still come with stipulations, but can be     done with some effort and a little bit of savvy.    

                                                                                               H-blogs

This Weeks Topic: "ESTIMATING YOUR COST"

This week we write about " Property Estimating" ,Current Market Value (CMV) & After Repair Value (ARV). Finding the cost can be tricky and sometimes harder than you might think. Here are a few tips to help make this process a little easier and less pain staking . With a little help from our friends around the Investing World we gathered
some ways that will bring you closer to a price that is a win-win for everyone involved.

• Visuals
• Internet Estimators
• Contractors
• Appraisers
• Comps
• Property Inspectors
• Kelly Blue Book- Just Kidding. no blue books here.
• County's Assessor's
• Estimating Programs
• * Experience-- after completing one or two you will get the scope of things.
• Materials List / market cost for mat'l varies from county to county, Ask your material stores for skews w/ pricing list. some offer these valuable list for FREE.

 Nothing is king in estimating more than actually doing some of these projects yourself, as a Builder it comes with time and time is experience and exp. turns estimating into second nature. But for those who don't have the exp.in residential building, remodeling ,rehabbing or any other residential and property fix ups, do not fear, you have plenty of ways to accumulate estimates. If you have your doubts about anything in need of repairs or replacement, look at the cost involved for replacing and repairing. If you have any questions regarding this area ,feel free to submit your questions. We will post more on this subject down the line, so get out and start estimating your properties to profits.

                                                                                  Hblogs

                                                                        Gregory Hernandez

"Giving up is not an Option"

Our friend Mel Kaye tells it like it is.
http://melkaye.wordpress.com

John Behle - Don't Even Consider Bankruptcy

John Behle - Don't Even Consider Bankruptcy