West Bloomfield Real Estate Partnerships:
A real estate partnership is a great way to take advantage of the many foreclosed homes for sale. Inexperienced real estate investors can do well if they with a real estate partner or mentor.
The condition of our economy and today’s real estate market has created a unique opportunity for the homeowner and real estate investor. If you are considering investing in real estate then read on for some valuable tips.
Where are the Best Deals?
As you browse the internet classifieds or homes for sale data bases, you will see many great opportunities just waiting for the savvy real estate investor to snap up. The market is over-saturated with bank-owned properties and pre-foreclosures. Motivated sellers are listing their properties for less than they owe, hoping to be successful in convincing their lender to accept a short sale. Interest rates are at a record low…the lowest they’ve been in over 80 years!
This is what we mean by the term buyer’s market; the supply is great and the demand is low; therefore, the price is right for real estate investing.
How do I get Started?
Now is the time to figure out how to leverage your time and money to take advantage of the great deals available. New real estate investors really need to develop relationships with experienced realtors. A true real estate professional will provide excellent service in order for their business to succeed. A new investor who teams up with a seasoned real estate professional who is knowledgeable in the current housing market is making a great start.
Good business breeds more business (referrals) and bad business, puts a Realtor out of business!
A true real estate professional knows the housing market and can help you to avoid time wasted, missed opportunities and financial loss. Going it alone could set-up you up for disaster as a beginning real estate investor.
The real estate industry has evolved and embraced the technology that is available today via the Internet, and other communication/media. Your real estate partner should have the tools and leading edge technology to enable you to be the first to locate the best deals.
Closing the deal
The deal is not done until the check is in your hand! Closing the deal can be tricky in some cases. There are many stumbling blocks to overcome; the process can be frustrating, even for the experience realtor. An experienced real estate professional will be able to anticipate some problems before they get out of control and “kill your deal.”
Finding a Real Estate Partner
Begin by networking with real estate agents and Investors in your area. Join local REIA clubs and attend meetings hosted by Realtor organization. Surround yourself by others who have been successful in the industry. Eventually, you will find a real estate professional who will support your real estate business. A lot of real estate investors like to work in partnerships; many enjoy mentoring new investors too.
The market is right for real estate investing; experienced real estate investors can quickly spot opportunities in today’s market. If you are considering entering the real estate world, it is recommended that you find a mentor to work with. Real estate partnerships can be valuable to the experienced investor.
Friday, March 12, 2010
Friday, December 18, 2009
Real Estate Investing and Real Estate Partnerships
Real estate investing – The average person sees this as a bad idea. We hear the news, read the papers and see how dramatically real estate values have declined. Why would anyone in their right mind invest in a product that everyone is struggling to sell and no one is willing or able to buy?
The experienced real estate investor sees a huge opportunity here. The market is saturated with bank-owned real estate, known as REO property, foreclosed homes, pre-foreclosed homes, motivated sellers and so much more. The demand for these homes is low; therefore, real estate values are down and houses can be bought cheap. According to simple economics, the laws of supply and demand, this is a great time to begin investing in real estate.
Real estate investing in a constantly shifting market makes it necessary to implement new or modified strategies of investing. This is a good reason for new or inexperienced real estate investors to work with an experienced real estate partner or mentor. A real estate partnership is a great way to get in the game and learn while you earn.
Finding a Real Estate Partner or Mentor
Successful realtors belong to a local REIA group which is a networking opportunity for real estate investors and companies who service the real estate industry, including title companies, lenders, insurance providers, rehab contractors, CPAs, real estate attorneys and more. Begin your real estate investing career with education; network with others in the industry and find a real estate partner or mentor to work with.
The most important thing you should look for is someone who you can work well with; someone who shares some of your interests and goals. Of course, you’re also looking for someone who is honest and trustworthy; someone you can communicate with. Begin a new real estate partnership with someone who has been successful with many years of active experience in real estate investing. Talk to local real estate investors about what they are doing and how it is working for them. You will be surprised to find that many real estate investors are looking for new partnerships.
Networking with real estate investors is just the beginning; there are many other people you will need to know, such as brokers, property managers, home inspectors, rehab contractors, lenders and insurance providers. A successful real estate investor already has these resources in place.
Questions to Ask and Answer about Your Real Estate Partnership
An experienced real estate investor knows how to structure each individual deal so that it works in everyone’s best interest. He will be able to show that he is experienced in various exit strategies, for example, short term transactions, like wholesaling; and long term transactions, like land contracts and lease purchases. He will be able to show you previous deals he has closed where he made a profit. He will be one who knows where we stand in today’s real estate market and how to take advantage of the current market conditions. Ask and answer the following questions:
What are you looking for in a real estate partnership?
How much do you want to be involved in specific areas, like financial investment and management responsibilities?
Do you want to be a silent partner or a very active partner?
Are you considering investing in commercial or residential real estate?
Do you wish to invest in rental property or would you rather find, fix and sell?
No matter what type of real estate transactions you’re doing or what your personal and financial investment is to be, you need to know what to expect in profit from the deal. Consider carefully:
Is it worth your investment?
How much time and money will be invested and how much is your return?
How safe is the investment?
What is your liability exposure?
How will the partnership be set up?
Will your personal assets be protected?
A good real estate partner or mentor will go over all the important issues so that you understand the real estate partnership, your financial and personal responsibilities, liability risk, financial risk and potential profit.
This is a great time for experienced investors to buy real estate; however, it is not the time for new or inexperienced people to go about it alone. Join a real estate investors association or a landlords’ club. Attend seminars and meetings; surround yourself with real estate investors and discover who is successful and begin to model your program after them.
Alan Faitel has been an active real estate investor since 1985. He has bought and sold over 300 homes in Oakland County using a variety of exit strategies including lease options, seller financing (land contract), short sales and conventional mortgages. Alan has spent a great deal of time analyzing the market and perfecting his investment strategies. He is currently looking for real estate partners with cash to invest in foreclosed homes and REO property in Oakland County.
A Win-Win Real Estate Partnership with Alan Faitel
It really couldn’t be easier!
You fund the deal and Alan does the work – Proceeds are split 50/50
Turn-around time is typically 3 – 6 months
Your investment is secured by a mortgage on the property
Contact Alan Faitel at 248-363-0100 to discuss a real estate partnership
The experienced real estate investor sees a huge opportunity here. The market is saturated with bank-owned real estate, known as REO property, foreclosed homes, pre-foreclosed homes, motivated sellers and so much more. The demand for these homes is low; therefore, real estate values are down and houses can be bought cheap. According to simple economics, the laws of supply and demand, this is a great time to begin investing in real estate.
Real estate investing in a constantly shifting market makes it necessary to implement new or modified strategies of investing. This is a good reason for new or inexperienced real estate investors to work with an experienced real estate partner or mentor. A real estate partnership is a great way to get in the game and learn while you earn.
Finding a Real Estate Partner or Mentor
Successful realtors belong to a local REIA group which is a networking opportunity for real estate investors and companies who service the real estate industry, including title companies, lenders, insurance providers, rehab contractors, CPAs, real estate attorneys and more. Begin your real estate investing career with education; network with others in the industry and find a real estate partner or mentor to work with.
The most important thing you should look for is someone who you can work well with; someone who shares some of your interests and goals. Of course, you’re also looking for someone who is honest and trustworthy; someone you can communicate with. Begin a new real estate partnership with someone who has been successful with many years of active experience in real estate investing. Talk to local real estate investors about what they are doing and how it is working for them. You will be surprised to find that many real estate investors are looking for new partnerships.
Networking with real estate investors is just the beginning; there are many other people you will need to know, such as brokers, property managers, home inspectors, rehab contractors, lenders and insurance providers. A successful real estate investor already has these resources in place.
Questions to Ask and Answer about Your Real Estate Partnership
An experienced real estate investor knows how to structure each individual deal so that it works in everyone’s best interest. He will be able to show that he is experienced in various exit strategies, for example, short term transactions, like wholesaling; and long term transactions, like land contracts and lease purchases. He will be able to show you previous deals he has closed where he made a profit. He will be one who knows where we stand in today’s real estate market and how to take advantage of the current market conditions. Ask and answer the following questions:
What are you looking for in a real estate partnership?
How much do you want to be involved in specific areas, like financial investment and management responsibilities?
Do you want to be a silent partner or a very active partner?
Are you considering investing in commercial or residential real estate?
Do you wish to invest in rental property or would you rather find, fix and sell?
No matter what type of real estate transactions you’re doing or what your personal and financial investment is to be, you need to know what to expect in profit from the deal. Consider carefully:
Is it worth your investment?
How much time and money will be invested and how much is your return?
How safe is the investment?
What is your liability exposure?
How will the partnership be set up?
Will your personal assets be protected?
A good real estate partner or mentor will go over all the important issues so that you understand the real estate partnership, your financial and personal responsibilities, liability risk, financial risk and potential profit.
This is a great time for experienced investors to buy real estate; however, it is not the time for new or inexperienced people to go about it alone. Join a real estate investors association or a landlords’ club. Attend seminars and meetings; surround yourself with real estate investors and discover who is successful and begin to model your program after them.
Alan Faitel has been an active real estate investor since 1985. He has bought and sold over 300 homes in Oakland County using a variety of exit strategies including lease options, seller financing (land contract), short sales and conventional mortgages. Alan has spent a great deal of time analyzing the market and perfecting his investment strategies. He is currently looking for real estate partners with cash to invest in foreclosed homes and REO property in Oakland County.
A Win-Win Real Estate Partnership with Alan Faitel
It really couldn’t be easier!
You fund the deal and Alan does the work – Proceeds are split 50/50
Turn-around time is typically 3 – 6 months
Your investment is secured by a mortgage on the property
Contact Alan Faitel at 248-363-0100 to discuss a real estate partnership
Friday, November 20, 2009
Foreclosure Specialist Warns Consumers about Foreclosure Rescue Scams
Hundreds of thousands of people in the United States are losing their homes to foreclosure. Whenever anything happens in large numbers entrepreneurs and business people will find a way to offer a service and make a profit. Some are reputable business people with good intentions; they offer a valid service and deliver what they promise. Others are scammers, preying on the weak and helpless, offering them a solution that sounds “too good to be true.” Remember, as a rule, if it sounds too good to be true, it usually is!
Increasing Numbers of Foreclosures Leads to More Foreclosure Rescue Scams!
Certain lending practices, including the adjustable rate mortgage, combined with our current market slump and increased unemployment has contributed to the increased number of people losing their homes to foreclosure. Sadly, thousands more will face foreclosure in the next year. This is a great opportunity for the foreclosure rescue scammers. There are lots of potential victims and they are desperate for help. They are easy to find because the notice of default is public record.
What Types of Scams are being used?
One popular scam is known as the sale-leaseback scam. This one worked really well when homes were appreciating in value or if the homeowner had a lot of equity in the home. The scammer agrees to buy the home, pay off the mortgage and then lease it back to the homeowner until they can buy it back at a later date. The contract is very confusing and the homeowner doesn’t realize how much their payments are going to increase over time, making it impossible for them to make their lease payments. Perhaps the contract will provide for very difficult buy-back terms, making it impossible for the occupants to regain ownership. The scammer’s plan is to prey on the distressed homeowner’s savings and their desire to keep their home. Once all of their financial resources have been exhausted, they are ultimately evicted from their home. During this process, the scammer counts on the home appreciating in value so he can market and sell it for much more than what the previous owner would have paid him for it.
The sale-leaseback scam has been modified to fit today’s declining market. The scammer agrees to help by bringing the mortgage payments current and making all future payments while the homeowner pays an affordable amount of rent to remain in their home. Again, the contract is very confusing and “scammer-friendly” with hidden fees and terms that are impossible for the homeowner to meet. The scammer might show some good faith in bringing the payments current, but eventually, they will stop paying the mortgage, taxes and insurance, allowing the foreclosure to proceed, while they continue taking rent payments from the owners. They never really assumed responsibility for the mortgage payments; therefore, the homeowners who are paying rent are still on the hook to pay the mortgage.
Collecting Big Fees for Little Service
Some foreclosure scammers will claim to be foreclosure specialists who work with lenders to modify the terms of a mortgage and stop the foreclosure. They tell the homeowner to stop making payments immediately, so they will be able to pay the scammer a fee. The scammer might tell them not to bother opening any more mail from the mortgage company; just give them the mail and they will work on getting the matter resolved.
Sometimes, a scammer will collect a large fee and perform some service, like mortgage modification negotiation, which is something the average homeowner doesn’t realize that they can do themselves.
In any case, the homeowner is under the impression that the scammer is providing a service and handling the situation. By the time the homeowner realizes that he has been scammed, it’s too late; the foreclosure process has moved forward and the redemption period is up.
Stealing Title to the Home
In some rescue scams the homeowner does not realize they are signing ownership of their home to the scammer. The scammer explains a program that sounds good to the desperate homeowner and he just signs on all the lines, as indicated by the scammer. Some scammers have the nerve to get a legitimate contract signed, and then later, they forge a deed and another set of documents, thus, stealing title to the home. By the time the homeowner realizes that they have been duped, the home has been sold to another party!
How to Protect Yourself from Foreclosure Scams
The first thing to know is what the foreclosure scammer looks like. The scammer uses many methods to gain the trust of the distressed homeowner. Here are some examples:
Ø They contact you by phone, mail or door knocking.
Ø They are slick, fast-talkers who prey on your desperation. They know what you want to hear and that is what they tell you, using words like “quick and easy,” “stop foreclosure now,” “save your home,” “instant debt-relief,” and so on.
Ø They offer guarantees and customer testimonials
Ø They have something in common with you; ethnic background, senior citizens, religious beliefs, schools they attended, or whatever they need to gain your trust
Ø They tell you to cease all contact with your lender and pass on mail or phone messages to them to handle.
Legitimate foreclosure consultants rarely approach you; they advertise like any other business and you must approach them for help. There is nothing quick and easy about the foreclosure process. There are no guarantees of a lender’s cooperation and anyone can make up customer testimonials. It is easy to find out church you attend, what language you speak, the clubs you belong to, etc…then pretend to have this in common with you. A foreclosure specialist will never tell you to stop communicating with your lender; this is the biggest mistake one can make and a sure guarantee that the foreclosure process will move ahead at full speed.
Steps to take to Help Yourself
Now that you know how to spot a foreclosure scammer, you can take the necessary steps to protect yourself.
Keep in touch with your lender. Contact your lender immediately when you anticipate financial problems. You might qualify for a special refinance program or you can ask for a mortgage modification or enter into a forbearance agreement.
Seek help from a legitimate foreclosure consultant who can explain the foreclosure time line and instruct you as to how to proceed. Learn all you can about the foreclosure process in your state; understand the deadlines and respond to all documents you receive from your lender. An honest foreclosure specialist will be able to explain the meaning of letters and documents you receive if you do not understand them. Know where you’re at in the foreclosure process and when you are going to lose title to your home.
Check with the state to learn about the guidelines that a foreclosure consultant must follow. Some states require a consultant to give you a certain time period to cancel a contract or agreement that you enter with them. Find out what agencies you need to check with to determine the credibility and honesty of a foreclosure consultant. The internet is a great source for information; Google search the consultant you’re considering doing business with. If there have been complaints, you’re sure to find a press release or other documented information.
Never make a verbal agreement, get everything in writing, and be sure to read and understand everything clearly before signing any document. Do not sign any document that is blank or not completely filled out. Lastly, avoid the consultant who asks you to sign a deed, giving them ownership of your home. This is one of the biggest red flags there is indicating one is a foreclosure rescue scammer.
Increasing Numbers of Foreclosures Leads to More Foreclosure Rescue Scams!
Certain lending practices, including the adjustable rate mortgage, combined with our current market slump and increased unemployment has contributed to the increased number of people losing their homes to foreclosure. Sadly, thousands more will face foreclosure in the next year. This is a great opportunity for the foreclosure rescue scammers. There are lots of potential victims and they are desperate for help. They are easy to find because the notice of default is public record.
What Types of Scams are being used?
One popular scam is known as the sale-leaseback scam. This one worked really well when homes were appreciating in value or if the homeowner had a lot of equity in the home. The scammer agrees to buy the home, pay off the mortgage and then lease it back to the homeowner until they can buy it back at a later date. The contract is very confusing and the homeowner doesn’t realize how much their payments are going to increase over time, making it impossible for them to make their lease payments. Perhaps the contract will provide for very difficult buy-back terms, making it impossible for the occupants to regain ownership. The scammer’s plan is to prey on the distressed homeowner’s savings and their desire to keep their home. Once all of their financial resources have been exhausted, they are ultimately evicted from their home. During this process, the scammer counts on the home appreciating in value so he can market and sell it for much more than what the previous owner would have paid him for it.
The sale-leaseback scam has been modified to fit today’s declining market. The scammer agrees to help by bringing the mortgage payments current and making all future payments while the homeowner pays an affordable amount of rent to remain in their home. Again, the contract is very confusing and “scammer-friendly” with hidden fees and terms that are impossible for the homeowner to meet. The scammer might show some good faith in bringing the payments current, but eventually, they will stop paying the mortgage, taxes and insurance, allowing the foreclosure to proceed, while they continue taking rent payments from the owners. They never really assumed responsibility for the mortgage payments; therefore, the homeowners who are paying rent are still on the hook to pay the mortgage.
Collecting Big Fees for Little Service
Some foreclosure scammers will claim to be foreclosure specialists who work with lenders to modify the terms of a mortgage and stop the foreclosure. They tell the homeowner to stop making payments immediately, so they will be able to pay the scammer a fee. The scammer might tell them not to bother opening any more mail from the mortgage company; just give them the mail and they will work on getting the matter resolved.
Sometimes, a scammer will collect a large fee and perform some service, like mortgage modification negotiation, which is something the average homeowner doesn’t realize that they can do themselves.
In any case, the homeowner is under the impression that the scammer is providing a service and handling the situation. By the time the homeowner realizes that he has been scammed, it’s too late; the foreclosure process has moved forward and the redemption period is up.
Stealing Title to the Home
In some rescue scams the homeowner does not realize they are signing ownership of their home to the scammer. The scammer explains a program that sounds good to the desperate homeowner and he just signs on all the lines, as indicated by the scammer. Some scammers have the nerve to get a legitimate contract signed, and then later, they forge a deed and another set of documents, thus, stealing title to the home. By the time the homeowner realizes that they have been duped, the home has been sold to another party!
How to Protect Yourself from Foreclosure Scams
The first thing to know is what the foreclosure scammer looks like. The scammer uses many methods to gain the trust of the distressed homeowner. Here are some examples:
Ø They contact you by phone, mail or door knocking.
Ø They are slick, fast-talkers who prey on your desperation. They know what you want to hear and that is what they tell you, using words like “quick and easy,” “stop foreclosure now,” “save your home,” “instant debt-relief,” and so on.
Ø They offer guarantees and customer testimonials
Ø They have something in common with you; ethnic background, senior citizens, religious beliefs, schools they attended, or whatever they need to gain your trust
Ø They tell you to cease all contact with your lender and pass on mail or phone messages to them to handle.
Legitimate foreclosure consultants rarely approach you; they advertise like any other business and you must approach them for help. There is nothing quick and easy about the foreclosure process. There are no guarantees of a lender’s cooperation and anyone can make up customer testimonials. It is easy to find out church you attend, what language you speak, the clubs you belong to, etc…then pretend to have this in common with you. A foreclosure specialist will never tell you to stop communicating with your lender; this is the biggest mistake one can make and a sure guarantee that the foreclosure process will move ahead at full speed.
Steps to take to Help Yourself
Now that you know how to spot a foreclosure scammer, you can take the necessary steps to protect yourself.
Keep in touch with your lender. Contact your lender immediately when you anticipate financial problems. You might qualify for a special refinance program or you can ask for a mortgage modification or enter into a forbearance agreement.
Seek help from a legitimate foreclosure consultant who can explain the foreclosure time line and instruct you as to how to proceed. Learn all you can about the foreclosure process in your state; understand the deadlines and respond to all documents you receive from your lender. An honest foreclosure specialist will be able to explain the meaning of letters and documents you receive if you do not understand them. Know where you’re at in the foreclosure process and when you are going to lose title to your home.
Check with the state to learn about the guidelines that a foreclosure consultant must follow. Some states require a consultant to give you a certain time period to cancel a contract or agreement that you enter with them. Find out what agencies you need to check with to determine the credibility and honesty of a foreclosure consultant. The internet is a great source for information; Google search the consultant you’re considering doing business with. If there have been complaints, you’re sure to find a press release or other documented information.
Never make a verbal agreement, get everything in writing, and be sure to read and understand everything clearly before signing any document. Do not sign any document that is blank or not completely filled out. Lastly, avoid the consultant who asks you to sign a deed, giving them ownership of your home. This is one of the biggest red flags there is indicating one is a foreclosure rescue scammer.
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