Michigan Real Estate Foreclosures for Professional Women - Invest in Michigan Foreclosures

Some times its crazy around here!

2006-10-22T10:03:00.000-04:00

Bob has invented his own way to look at house for sale (FSBO, Foreclosures, Pre-Foreclosures, MLS) by reviewing most or all the listings on Friday and runs around on Saturday or Sunday then we make offers on Monday & Tuesday. This is just the start.

Here come the offers that get accepted and into the mix goes those projects for him and his contractors. They start the project management process flow usually midweek and line up all the materials to be ordered or colors etc. So when the investor closes the deal with Bob, the contracts having dumpsters dropped, the demo crew is going in and so so.

During that there he is bugging me for that list on Friday so he can do it all over again and fills that pipeline of offers while he fills that pipeline of projects. And at the end is work for me and the sales team. And off we going selling retail or selling with some form of owner finances.

So the wave starts and the flow continues ... its been a great ride if you like being on the seas. The ebb and flow of tides is part of this game. So enjoy.

Bonnie.

Balanced Life ...

2006-10-09T21:34:00.000-04:00

For years Bob has built businesses where some were done on weekends while others were built night after night. Sometimes this left a bad taste in my mouth since we are trying to have a life and family. He would work 24-36 hours sometimes without sleep to make a better life for us. I always wondered if they would matter in the next 2 to 5 years. You could tell he was working hard building a business and working for someone else to improve our lifestyle. Occassionally, we would have that louder than normal conversation but never did we stay mad longer than that evening.

Something my parents taught me, never go to bed mad, its not worth it. Mom & Dad were married almost 30 years when Mom died from cancer. In all the years they were married, there was only one or two times they had an arguement. Dad would never argued with Mom, he would just turn and walk away until she calmed down. Its funny, I'm a lot like my dad in thoughs respect where Bob grew up was in a similiar family. His parents are both alive and been married over 50 years.

Bob was trained to ask questions and he could have been an attorney since he can grab onto a topic and run it untilthere is no more room. Sometimes, he is referred to as a bull dog. He does not like to lose or give up. You should see him around people, loves them, encourages them and keeps them looking down the road for the best out come. But, he loves to argue also, the better the emotion, the more fun he has and we have had a couple good ones.

As you can imagine, we have the Farm, which he calls the Farm mine, even though he loves working the animals and the hardwork never bothers him. He was one that would not go to the gym since college to work out but would do something like build to call it a work out. He likes to see progress, and if it is not happening, he is studing the situation to make it happen.

The real estate office, he calls it mine also. At this point you might think what is he calling his or even cares. Well, he does. He loves to answer the phone or even make my calls when given a chance to set up the call then hand it over to me. Little things is his speciality for helping. The one business he will take charge on and hardly any one person can keep up with himis his real estate investing.

You want to see his eyes light up is when he is chasing those Pesky Foreclosures he writes about. Boy, does he get passionate about researching deals, going through the deal and making the offers. Once he gets the deal, its like a puzzle to piece it back together to bring joy to a couples eyes & heart. Its been fun to watch him walk a couple through a house he is selling explaining the features and functions of the home while asking them questions about themselves to understand if this house really the best fit. He really loves to lisen ...

And I guess that is one of his greatest strenghts, he has learned over time to listen and be slow to react. Dinner time in our house is exciting, we talk, we eat, we talk, we talk then we eat. Its been a little while but he has learned by reading books, listening to tapes and occassionly, working a older man who he calls Dad or mentor.

To say, we are not active is a joke. To say, we are not balanced life is a joke. Bob takes time out of the day to make sure I'm doing good and everything is running smooth. Like today, in the middle of a meeting, he gets up and calls me to see how I'm doing. He said, well I called earlier and there was not answer so I thought you might be out. And I was, planting my tulips bulbs in his new landscaped garden for me. We chat for a few minutes and off he goes back to work.

He is usually busy during his day but he will take time to share his day with me and find out about mine day several times throughout the day. He will even call on his way home, in between business calls, will call to say hello and find out what is happening at that time in my day. He usually checks on me and the family to see if we need something on the way home for dinner.

Even this weekend, on Sunday, we went out on the St. Clair County Alpac tour, even though he did not feel the greatest, he went to couple with Annie (his sister) and I together before he returned home for a nap. Later he joined back up with us near the end to see the last couple. when I gotback to the house, the garbage was out, house picked up, and a few items ready for dinner. As well as he got a nap in.

So, to have a balanced life, remember to take time out for the both of you. if you like to knit, then do so, maybe in smaller time spands or in blocks of time. But, knit. Even if you are going to an event that your child is in, make sure that the two of you spend time together, even if its painting the Bank Owned foreclosure you guys just bought. Its important!

There was one time, we were renovating a big 2000 sq ft colonial in detroit, its late, niether of us had dinner, so Bob started a fire in the fire place and run up to KFC for chicken and came back with plates, cups, food and drink. So there we are having a fire side dinner for two relaxing and enjoying each other. Those moments are wonderful, they last for a life time. Remember to take time for yourselve and your family since this is a journey to enjoy and not a fire fight.

Enjoy, Bonnie.

Busy Week with Private Investors, Bank Owned REO's & Michigan Foreclosures

2006-10-07T22:58:00.000-04:00

This week has been extremely busy for our real estate office, Brandy Creek Properties. Our office is considered to be a BUYER'S OFFICE. This means we represent the buyer in the sales transaction where most offices are seller representatives. So what does this mean to investors, we represent them in the offers and fight for the best deal for them regardless what the selling agency is saying or doing.

We also met with several potential investors for Bob's business, Blue Water Houses. His businss is for the purpose of buying, rejuvenating and selling those foreclosed, FSBO, handyman specials, Tender Loving Care (TLC) properties. So, we spent quality time with each investor sharing personal and business information while developing personal relations.

I've been tracking properties for Blue Water Houses and their investors. Once the Michigan Bank Owned REO's property price has fallen into the target zones, we contacted a number of investors and off I went showing them the opportunites. Those foreclosed properties ranged from Northern to Southern parts of St. Clair County.

Its been a great weekend so far. We had a number of successes with foreclosed properties and should be even better next week. A number of offers are getting accepted and more are following so Bob's team of renovators will be adding to their inventory.

With that said, our marketing team is getting ready to prepare the campaigns for these new properties and selling some for cash to new mortgage while others will be rent to own (one property we are negoiating on is aready spoken for by new tenant buyers. we have it sold before the investor has even closed on it.). We've been able to give our buyers some opportunities.

In the meantime, a quick Farm update, Elises baby American White Rabbits are starting to jump out of the nesting box to get mothers milk. They are just cute ... it appears she had a minimum of six.

More to come, Bonnie.

A hunting Weekend ...

2006-10-01T21:17:00.000-04:00

As Bob would say, its been a good hunting weekend for those Michigan Pesky Foreclosures here in St. Clair County. We found ourselve on Saturday looking at nearly 30 houses that were Bank Owned. We recorded 100 miles travelling and never once more than 15 minutes from home. Go figure.

On Sunday, we had an open house from 1 - 3 pm. We have had a number of individuals come through the home and one in particular is ready to buy. How exciting it is to sell one of your creations or rejuvenation projects. This happened to be one of Bob's best efforts.

After the open house, we continue our way to look at several other properties with great potential. We travelled around 100 miles again and found ourselves no more than 20 minutes from home. Among this batch, we will have a couple good potentials for our investors.

Upon returning home, the ducks, geese, goats are all standing outside of their coup making noise at us as we drive into the yard. Here its dark and they won't put themselves to bed until they get their nightly snack before bed. Its funny to see those animals just giving us the business as we walk up ... only if we could understand what they are saying. Or maybe not.

Got to get some sleep, tomorrow is going to busy day submitting several offers and meeting with a couple of investors on other projects.

Bonnie.

Its the Farm thing ...

2006-09-29T08:46:00.000-04:00

Several folks have been writing talk about the farms that are available. Just the other day, we found 30+ acres with a view of water that has a plateau of 20 acres. Bob just does not get excited about real estate since he is in it every day or have seen so much. This got him excited where he could finally build that house he has always wanted with the walk out on the water, two story with the best open floor plan we have seen yet. The walk out basement will be his play room and office. He is so excited about this.

Plus its enough room to have an active small farm going for horses, small herd of cows or sheep and certainly big enough for alpaca's ... So here are some of those animals you could manage on a small farm...

Genny Hens ... great for eating those ugly bugs that no one wants either in your house or on your land. Great to have to eat snails so Alpaca's don't eat them and get sick. Great to be the early warning system of something different on the farm.

How about the other feather friends like the Goose (dark feathers) for that special meal each year like X-Mas. Or those Pekin ducks (all white) that provide a good meal or are fun to watch that eat lots of grass around the farm. Great to have with water or wet lands ...quak!

Lets not forget about those egg laying feathered ones who love to clean and scratch the ground making it bug less. As a result giving you the fresh morning farm eggs cooking on the stove. We use Araucana chickens for their eggs and pretty colored eggs.

These are pygmy goats and this lovely girl is Tilly. She has black streak runing down her back with black marks around her eyes. She loves to eat pears and rabbit pellets. So beware when you feed the rabbits.

You can see the new barn is test driven by Tilley in front and Pearl behind her eating so sweet feed.

And don't forget about Mr. Frodo Baggins who is the boy friend to Tilley and Pearl. Guess what is coming in the spring ...

And don't forget about the farm dog, Maddie girl, who as a 12 month old Mastiff. She is extremely playful and a great watch dog for the farm. She heards the birds and goats back into the barn yard when they get out.

Must go, we have 20+ houses to look at this day ... my buyers are a buying trip ... should be a good day for all who is involved.

Bonnie

Rabbits and Real Estate ...

2006-09-24T20:06:00.000-04:00

Today, we started out by getting the Farm going and adding couple of rabbit cages to the total. As Bob went through the coops, he collected 5 eggs with one of those either a Peking or an Indian Runner egg. This egg happens to be 2 x taller than any extra large chicken eggs.

Once the Farm was up and running, we left for Reading Michigan to meet up with an American Rabbit Breeders Association judge from Tennessee to collect 4 Lilac rabbits from North Carolina. The story on the rabbits, they are in the top 5 rare breeds plus we become the 12th breeder in the Michigan. These little guys traveled with Randy from Charlotte NC to Nashville TN when they were given to josh just last night. Josh traveled from TN to Reading were he conducted a Giant Flemish Rabbit show. What dedication to promoting ARBA...

While we were heading to Reading, we started looking at many properties on the way and found some very good deals from FSBO, a farm auction, and several abandon properties. We saw several foreclosures and what was perceived as real deals. So you guys working the foreclosure market below I94 between Ann Arbor & Jackson, you have some go pickings.

After returning home, we placed the new Lilac rabbits into the mix and everyone took turns to say animal hello to the new tenants. Later this evening, they seem to be settled down and getting use to the other animals. They even liked the food.

We are now looking for a Foreclosed farm or residential foreclosures with a minimum of 10 acres. We have several clients that are looking as well as we are wanting to expand our farm. Bob got excited about the Giant Flemish Rabbits who weigh in at 20 lbs. So, we might need a big farm with lot of out buildings ... You know when he get excited nothing stands in his way.

So, tonight I did an MLS search and found several opportunities ... One example is a home that is over 1500 square feet, 1.5 bathrooms with less than 10 acres for under 170k. So, we have a list for our clients to tour and from those we believe we will have several sales.

Farming & Real Estate are working hand and hand.

Enjoy, Bonnie.

Exciting Time on the Farm

2006-09-20T21:48:00.000-04:00

Wow, today, Elsie started to pull fur out and line her nesting box. In the nesting box, Elsie has hay that has been pushed around into a nest. She then lines the nest with her own fur. Once that happens, Elsie is just a day or so away from delivery.

Once the babies are born, pictures will be coming. So its exciting times ...

Bonnie.

PS: We saw some very good foreclosure deals today, Bob said he was calling Greg, a new investor. He said these properties fall right in line on how Greg likes to invest and the dollar amount. go Bob, go!

Relatibility with Customers

2006-09-17T11:21:00.000-04:00

Its Saturday morning on the Farm and we are getting ready for new arrivals in the form of American White Rabbits. Elsie is expected to deliver any time after Sunday. So her nesting box is ready in her apartment just waiting for the arrival of baby American Whites.

Over the next few days, we will be setting up for the arrival of 4 Lilac rabbits from North Carolina. We will now have the four out of five rares rabbits breeds. As in the case of the American Rabbits, we are only the 21st breeders and 2nd in the Michigan.

We went to the 4-H at Goodells and found that all of our rabbits will do very well in showings. We are setting up to service this group in our area plus we plan on internet advertising. So stay tuned for more info as we grow.

So what does the Farm have to do with Real Estate, its relatibility with customers. Just a different type of investment which requires a different type of Real Estate. Matter of fact, we have a couple who is wanting to raise horses so we are in process of finding the best property for their needs now / future for the price.

Well the farm is growing, Bonnie

The Farm & Real Estate …

2006-09-17T11:20:00.000-04:00

The cold and rain kept most of the animals in doors today with tonight’s dip in temperatures will have them huddling together. The farm continues to take shape with the barns getting a fresh coat of paint to brighten up the pen, the animals are growing, and the pen was expanded. Here is the exciting news this morning, we got our first egg. Go figure!

Well, what do you do, you take a picture of the first egg and then what. You eat it for morning breakfast. What was interesting was the egg yoke was brighter in color and white was clear. We also noticed that egg was firm compared to the store bought eggs which are loose and the color in the yoke is not as bright plus the white is foggy. They call those store bought eggs fresh.

After breakfast, Bob & I took off looking for those pesky foreclosures he talks about and we found a couple good ones. Along the way, we found one with the Realtor sign that did not show up on his list originally. What is up with this … anyways, I called and waiting for call back so we can check out that place also.

Bob worked a cool deal by finding a first time home buyers a nice horse ranch in the country that needed some repairs and is in the process of negotiating the deal for them. When done, he will do some basic work on the property for them and set them up for 6-18 month rent to own.

They will be happy for getting the house they wanted and all the land for horses plus help to build on their credit while we get a back end profit and positive cash flow for small period of time. Cool deal!

Not bad for a Saturday …

Plans for tomorrow, clipping wing feathers so our ducks don’t fly south for the winter. Always something new to do on the farm.

Bonnie.

Pictures ...

2006-07-23T20:42:00.000-04:00

I just had to show you what I got Bob ... Boy was he so excited as a city boy!

This is a baby Mallard Duck ...

This is a baby Pekin Duck ...

We have 1 Drake & 3 Female Mallards plus 8 Pekins, with boy girl think soon to be worked out ...

Have fun and enjoy, Bonnie

Committment ... strange word for folks these days

2006-07-23T20:27:00.000-04:00

This weekend, Bob & I, had to run to one of our projects and fix something that an individual said they would do ... vacation, procastination, lying, etc seems to be their life and not their word. So, take your time to interview folks, either for a contractor project or partnership.

Bob never takes people at their word any more, he has taken the attitude, show me ... resume, papers, references, etc. He even calls them and follows up with the folks and sometimes all checks out and still get a bummer.

So, that is where you have to step up to the plate (Go Tigers!) and put the ball into play and resolve the issues. Just like we did today. Remember, its your word that counts and your committment to the project and to your investors that you are representing.

Don't let a bad apple sour the barrel, just pluck it out, throw it away and move on. We have learned to do this with over 200 projects now in rehab.

Remember to stay true to your word, yes, I did say "YOUR WORD". Make sure your actions back it, even if its shovelling dirt or something that is beyond your experience or beneath you ... just do! So all will be well. Yep, its does work.

Have fun on this gorgious day, See you next time.

Bonnie

Business & Life

2006-07-20T14:08:00.000-04:00

Last night we visited another home that is for sale. While Bob & his contractors walked through the home, I was reading. Once Bob was done with house A, we went onto the second house that night. Back into the house Bob & his contractors went. Back to reading again.

Out of this house Bob came and on to job sites to check status of the renovation of several other houses. While he is running through the houses I kept reading. You might say, what the heck are you reading.

Well, as the real estate business is growing, I have started a new business right at our place. I know, you are wondering what the heck are we doing now!!! We started a farm ... Currently we have chickens, ducks, geese and a few goats.

You might think we are either nuts or don't sleep. Nuts, might be, but we have always wanted to own and operate a farm. To help bob grow into this effort, since he is a city boy, we choose to have the birds and goats first and later this year or spring, we will add cows, sheep and finally the Alpaca's will arrive ...

As soon as the pictures are uploaded, we will start posting.

Must run, the phone is ringing from one of the offers ... Later Bonnie

Updates with our Business

2006-07-10T23:09:00.000-04:00

Hello and how are you doing?

We have had quite a run since March 06. Lots of activity in real estate, joining ETAR (Eastern Thumb Association of Realtors) & MI Real Source out of Macomb providing us with the greatest exposure to the real estate markets in Southeastern Michigan.

While our business grows, our farm has jumped in size. We have expanded to include African Geese, Grey Geese, Pekin Ducks, Mallard Ducks, Muscovies Ducks, Indian Runner ducks, Auacaunas chickens and Genie Hens ... oh, don't forget Peril and Tilly, our miniature Goats.

More pictures about the animals and the big move on the farm, Bob moving the Barn 12 feet north and 6 feet west ... later pictures and a funny story that goes alone with it ... Must run, time for nap before all the construction crews start up for tomorrow.

Bonnie.

Five Keys to Building Wealth

2006-03-06T08:57:00.000-05:00

This is a great article I found that covers the basics which we all tend to forget at times.

Five Keys to Building Wealth

Anyone can get rich. You don't have to be a genius, and you don't have to be lucky. People who build wealth make certain decisions and practice certain skills - none of which are difficult or complicated.

You can do it, too. You can acquire a multimillion-dollar net worth by doing just five things:

1. Get to work an hour early.
2. Develop and perfect a financially valuable skill.
3. Use that skill to earn an above-average income.
4. Spend less than you earn.
5. Invest your savings smartly.

By practicing these five simple behaviors you can build real wealth. Let's take a look at each one.

Get to Work an Hour Early
You have to give yourself an edge over everyone else. The best way I know to do that is to get to work early. By getting to work early, you can do all the little things that put you ahead of the pack. You can make extra contacts, learn useful skills, take time to write an impressive memo, polish off a report, etc.
There's no better time to collect your thoughts and plan your day than early in the morning when the office is quiet. And if you do it right, it will be the most productive part of your day.

Start it with your weekly to-do list. On a sheet of paper, jot down anything you need to get done. Make sure you give primary attention to your top goal that day, and get it done.

Use your extra time to get at least one positive thing done before you start doing all the "regular" things. The "regular" things will give you a "regular" life. The extra things will give you all the extras - including the extra millions.

Develop and Perfect a Financially Valued Skill
To make more money than the person next to you, you have to be able to do something that is worth more money to someone else - your boss, your business, or your customers.

Selling is a financially valued skill. So is producing profits. So is creating growth. Other skills - making things run smoothly, eliminating mistakes, balancing books, etc. - are certainly valuable to a business, but not as highly valued when it comes to dividing up the money pie.

What successful businesses mostly need - and value the most - are employees who stimulate sales, increase customer retention, boost customer spending, and bring in a bigger profit. The marketing jobs, sales jobs, and the merchandising jobs are the ones that most visibly contribute to the bottom line.

You can add to the bottom line and become a financially valued employee or business owner by gradually developing sales, marketing, and profit-building skills. Study sales and marketing programs that are currently working. Learn from existing masters. Keep at it until you are confident you know how to create more wealth for your business.

Make an Above-Average Income
You don't have to earn a ton of money to become a millionaire, but you do need a higher-than-average income. To get wealthy while you're young enough to enjoy it, you need to make about $75,000 or more. If you are making less than $75,000 a year now, it's almost certainly because you have not perfected a financially valued skill.

Plying a financially valued skill toward a business you work for or a business you own (or both) will definitely produce wealth. Part of that wealth should go to you. If you're an employee, ask for your share – ask for a raise, backed up by the results you're producing.

Spend Less Than You Earn
It isn't easy to make a lot of money, but it's very, very easy to spend it. The book The Millionaire Next Door made and proved the point clearly: most millionaires become wealthy not by making a ton of money, but by saving and investing modest amounts over time. That's precisely why I believe you can become wealthy when you earn as little as $75,000 a year.

To make sure you spend less than you earn, use this powerful money-management trick. It's something I began doing many years ago. It has allowed me to get richer in good times and bad, when my ideas were working and when they were not, when the economy boomed and when it stalled.

One day, I took out a sheet of paper and tallied up my net worth. Despite earning $50,000 more than I had the previous year, my net worth was less than $10,000.

I made myself a simple promise. I said that from then on I'd recalculate my net worth once a month and that I'd do everything I possibly could to make sure that each month's total would be larger than the month before. It was as easy as that. I decided simply to get richer one month at a time.

By calculating my net worth, I saw that many of my habits (including some of my spending habits) were financially unwise. It also gave me, at times, the energy I needed to do something drastic - to start something new or end something that had gone wrong. Plus, it gave me an underlying determination to get a little bit richer every day.

Don't dismiss this little technique because it's simple. All the best and most powerful things in life are simple. This will make a difference. Do it.

Invest Wisely
Investing wisely means doing two things:

Create a second, active income, and keep it growing.
Invest your passive income in a sensible, conservative fashion.

Creating a Second Income
Start out slowly and learning about a side business while you have the safe and steady income of your main job. By a "side business", I mean something you can run on weekends or weekday evenings that won't take your attention away from your full-time job. It should be something you enjoy and are willing to stick with.

Start with your financially valued skill. You are using that to create your first income, and now use it to create the second. Just stick with your strengths and you'll succeed.

Investing Your Second Income
Finally, take the extra money you make from your main business and the extra money from your side business (by extra, I mean the money you can't reinvest in that business because you simply don't need it) and put it into an investing program that is reliable, safe and productive.

So here's what you'll do:

Set your alarm an hour earlier.
Identify the financially valued skill you are going to develop.
Commit to spending less than you earn.
Think about a second stream of income.

Start now - don't wait a year or two and wish you'd started today.

Written by: Mark Sumpter

New clause in Purchase agreement we are implementing

2006-02-24T15:16:00.000-05:00

Over the years I have learned that almost all investors want mortgages that will give them loans that include dollars for rehabilitation and renovation of investment properties.

There are many investor programs offered by thousands of mortgage companies. Some Mortgage Companies have programs that will loan funds as part of the loan package money for rehab and renovation. Some have programs where they set up escrows for rehabilitation and renovations and have inspections on the work in process in order to get the next draw.

Due to the vast number of rules and with lenders all having different policies I am now adding disclosures in all of my real estate purchase agreements and related forms to assure buyers are using lenders that have programs that work for borrower (buyer), seller, realtor, wholesaler and lender.

I now use the following disclosure language in my purchase agreements, addendums, assignments, and buyer broker agreements:

Lender and Title Company Restrictions. The buyer (s) and seller (s) agree that buyer (s) will disclose to buyer’s lender all relevant considerations regarding the purchase of this property. Due to the nature of this transaction, buyer (s) will only use a lender that allows buyer to receive funds from the seller to cover allowable closing costs, permissible allowances and expenses of rehabilitation and renovation. This purchase agreement is void if buyers (s) and/or their choice of lender knowingly violate state or federal laws that govern this transaction. If found in violation of applicable law, buyer agrees to forfeit their good faith deposit

Why invest into Michigan

2005-12-05T09:53:00.000-05:00

What is happening in Michigan Real Estate?
At any given day, thousands of houses are lost to banks who take possession of them because the homeowners can't afford the mortgage any more due to many reasons: death in the family, loss of a job, divorce, bankruptcy, substance abuse problem, etc. This is a very sad situation but it is reality. Every day in Michigan alone - in the counties where we live and operate our real estate investment business - we see over 1700 foreclosures going through the court system - every single month. Every month thousands of people lose their home. The bank needs to recover the mortgage balance owed to they, and the only way it can is to go through the court system, buy back the house via a "Sheriff Auction", wait for at least 6 months before they can evict the homeowner. The bank now owns the house and uses a realtor to sell it.

Reason why we are getting good deals on properties …
Banks are not in the real estate business - they are in the business of lending money and earning interest. It is an industry known fact that the banks lose about 40% on a foreclosured property. This is due to the fact that:
• the property usually needs updates and repairs,
• the longer the house does not sell, the more bills the bank is responsible for including, all property taxes, utility bills, security, and maintenance.
• Don't forget they might have $100,000 or more already locked in a defaulted mortgage
• the longer the house stays vacant, the greater the liability for the bank.

In the banking industry, a foreclosured property is called a "non-performing asset" - meaning it is not earning them any income. To make it worst, for every dollar of "non-performing assets" the bank has to hold ten dollars which cannot loan out. One bank said its costings them $1 million dollars on top of the mortgage balances owed to them for every 500 foreclosed houses it has. The simple fact of the matter is that banks hate foreclosures - it exposes them to unwarranted liabilities, less profits, and most importantly that money is now locked in a "box" instead of earning interest somewhere. Most banks want a quick sale, collect their cash, and write off their losses in their next year tax returns and move on.

Here is the rest of the story that other people don’t see …
Michigan appreciation is flat in most parts of the state with excepts in a handful of towns. So where is it going … Here are the hard facts by looking at some examples 1) Miami Florida, its jumping off the charts as investments today … why is that, just a few years ago if you remember, Miami was the nations murder capital, drugs, gangs, properties going into the dump, etc. Miami was dragging the lower part of Florida down. Reputation was stay out investors. One day, the citizens started to take back the city, here we are 10-15 years later, and Miami is the star area to buy as investor since they have double digit appreciations, they are no longer referred to as the murder capital. 2) Los Angeles California, its jumping off the charts also … why, before Miami it was the murder capital of America and hate crimes was high. Now, look what is happening … the town is cleaning its self up and the real estate game is booming. Why California is booming because of the big cities clean themselves up and the state takes off. We can give other examples but here are some of the names Washington DC, Virgina, New York Downtown.

So where is the next hot spot like this for me the investor how wants to get in early. Michigan! Look what is happening to Detroit. No longer called the murder capital of America. Big investment dollars are being pumped into detroit proper commerical side with new Ford Field for lonely lions, CoAmerica Park for tigers, talk about new hockey areana for red wings and many other office building renovations and new construction. Cleaning up the neighborhoods around downtown area with new constructon, specially designed neighborhoods plus other companies updating their plants like the old Chrysler plant torn down and replace with a new modern multiple billion dollar investment for their Jeep product.

Michigan is in a slump with unemployeement on the raise. Delphi declaring bankruptcy, automotive sales are down for General Motors and Ford Motor Company. Both are talking large layoffs and union wages being cut. Closing of plants outside of Michigan and inside. So, it just looks like it going to get worse. Those layoffs to OEM's employee's mean downstream effects on Tier 1, 2, & 3 supplier and possibly some going out of business. Which utlimately means more unemployeement in Michigan. Which implies a big surge of houses on the market either at discounted to sell or foreclosures.

So, why is Michigan the buy, because of the TURN. Michigan is transitioning from Industrial based state over to a blend of Industrial / Information Age / Persuasion Age. Michigan was so industrized that it is going through the TURN over to new industry based. Just take a quick look at what is happening over the next ten years were Michigan will be the meca for Biotech and Computer technology. We currently have BIOtech underway and growing. Computer technology suprises me since we have Boston, Silicon Valley and many other great tech spots but you can see that throught Automotive Alley that is running today and how many companies need top notch tech's. Ann Arbor is beaming with start up companies in computer technology, one of those is Latitude Consulting Group. They are just growing with leaps and bounds.

With the history of how Miami & Los Angeles turned around, and how they are double digit return on investments and talking with a number of outstate investors who have $X Millions to invest, they like Michigan since it is in the TURN state. So, why not you invest into Michigan Real Estate and Foreclosures!

This has been a special note from my dear husband.

Times are changing in neighborhoods ...

2005-10-15T14:12:00.000-04:00

All things put aside, family time seemed to very light this summer. We moved our Real Estate business from the city of Detroit to Port Huron. Uniting with old friends and meeting new ones. Starting new farm reports, interviewing contractors and playing the field of real estate investments.

Since that time, we have concentrated on Junkers that we fix and flip, pretty houses for lease option or rent to own and rounding out with construction on upper end houses in appreciating markets.

We found a wide variety of foreclosed in Port Huron - Marysville area. Michigan Foreclosures are on a rise and you can see why. This is not a surprise considering Dephi just filed bankruptcy, Billion Dollars, the union is threatens to walk, Dephi wants a pay cut by 50%. I was raised in a union family and see more trouble ahead. All this will fall back onto GM. Can GM withstand the pressure or will she break.

Couple of items might happen, Toyota will be knocking on the GM door to say I'm here to buy you and the GM brass won't even see it coming. What would happen if Toyota buys GM. They certainly have the cash, pay off their debt maybe put workers back to work.

Companies like Dephi & GM will be changed forever. The most interesting piece about this thought will be Toyota, they have it in their plans to be the largest automotive company in the world by 2030 or 2035.

We personally saw a change in the DaimlerChrysler AG when they bought Chrysler. We thought Chrysler was going to buy DaimlerBenz at the time but it was the other way. Today, DCX for short has really shown the merger to be a good thing since they have one of the nices car lines in the industry with new models for 2006 & 2007.

What does this have to do with Real Estate, Michigan Foreclosures, Port Huron Foreclosures, simple, we the Investor community can have the opportunity to buy houses at larger discounts. This will allow for new cash flows into our local communities stimulating those economies. We will be able to hire more crews, buy materials, brighten up the areas with hope.

So, start to learn about real estate investing, the different methods, get your credit score higher, stop spending on little things you can put off and plan to help your neighbors and friends beside your self by buying those foreclosures and putting back into your economy today and tomorrow.
Michigan is our home, its a great state, we just have to take it back before someone else does! Its ok to embrace change, its ok to take that step forward with unknown or uncertainty, its ok to go where the others are not. I was taught this "Go in the opposite direction of everyone else".

This has been a special note from my dear husband.

Don't want to pay dorm cost

2005-09-26T07:55:00.000-04:00

Living in the dorms may be an important experience for college students, but that doesn't mean it's the most financially benefiecial housing options for parents.

Rather than throw good money away after bad on room and board expenses or off campus rent, some parents are turning housing students into an investment opportunity by buying houses in college neighborhoods and letting their kids' roommates pay the mortgage according to a recent article in the Chicago Tribune.

It's a move that can payoff, especially with a typical room and board cost of $10,000 to $14,000 per year, but there are things to consider before buying. Mortgage rates, taxes, resale value and how much parents trust their kids all play a role in whether buying a home in a college town is a good idea, but for those people who make it work, renting a building to students can be a lot more fruitful than writing checks for the dorms.

Nostalgia in rehabbing a foreclosure

2005-09-13T07:42:00.000-04:00

You say linoleum and many people think of run-down kitchens and avocado appliances. Linoleum has become a catch all phrase for any vinyl flooring that looks like it has seen better days. But make no mistake, natural linoleum is a creature all its own, and according to the website www.healthyhomeplans.com, it is making a comeback.

Homeowners looking to make their bathrooms and kitchens more eco-friendly are turning back to linoleum after favoring vinyl for two decades. You may be asking what the appeal is? Natural linoleum is just that: Natural. Made of linseed oil, pine resins and wood floor on a jute backing, natural linoleum is completely biodegradable - not to mention totally retro.

from the Sunday Port Huron Times Herald.

A Gift of Love

2005-09-11T11:30:00.000-04:00

Bob & I have been working our tails off and if you looked, we don't have tails. So out of the blue, my dear husband gave me a gift and I'm going to share it with you now:

Maddie Jo is her name, 9 weeks old Mastiff puppy

Busy looking up SEV's on houses for bob doing double time!

More to come with baby pictures ...

Looking for pesky foreclosesures

2005-09-02T09:03:00.000-04:00

You just never know where you will find an REO.........

Have a great weekend.

Had some fun!

2005-09-01T08:49:00.000-04:00

We had some fun and went to the Michigan Fiber Festival on the west of of the state near Kalamazoo. I love furry, fuzzy animals and I like to spin, crochet, knit and quilt. Kathy and I wanted to bring every animal home, but the guys vetoed that. So we went shopping at ended up with a navajo spindle, a lucet for making cord and kathy got all her felting supplies she was looking for. Next time maybe we will leave the guys at home so we can get that pair of agora rabbits...........The pictures are of Kathy and I talking to the alpacas.

Best Options Available for Buying Michigan Foreclosures

2005-08-19T22:21:00.000-04:00

Buying foreclosures is not for the faint heart. Before buying foreclosures, it’s sensible to understand the foreclosure process. Once you dig deep, you will find that there are enormous differences in foreclosure procedures for each state. Evaluating the value of the property before buying foreclosures is imperative. Only a few of distressed properties are potential gold mines.

You can buy Michigan foreclosures in any of the three stages – pre-foreclosure, at auctions, after auctions (real estate owned properties – REO properties). To pull off a good hit, inspecting the property before buying foreclosures is a task that is de rigueur. However, this may not always be possible if you are buying foreclosures through auctions. Inspection of property will help you estimate the repairs required, as foreclosures almost always require rehabbing.

You must also be aware of the risks involved in buying foreclosures. Buying foreclosures offered by banks is the least risky way. Buying foreclosures offered by institutions like Fannie Mae, Freddie Mac, VA (Veterans Affairs), HUD (Housing and Urban Development) or FHA (Federal Housing Administration) is yet another option. If you are planning to buy foreclosures offered by HUD or FHA, you may approach a licensed and authorized HUD broker or agent. On your behalf, the broker will submit your bid. HUD will pay for the brokerage. Fannie Mae and HUD have a search engine to help you search for the right property.

Acquiring Michigan foreclosures before the auction can be challenging, as you are completely at the mercy of the seller. The seller can rescind the contract if you slip up legally while completing the transaction. E-bay also offers a list of foreclosure properties for sale.

Many consider that buying foreclosures at auctions is the riskiest. The reason – property is sold on an ‘as is’ basis. However, the rewards are more. Before buying foreclosures at an auction, ensure that you do a title search at the county office. Assess property tax liens, federal tax liens and other liens and judgments on the property. Before submitting a bid, explore and wrap up financing sources. Auctions will involve depositing a part or complete bid amount.

Cash or a line of credit is essential immediately, or otherwise the property may go for auction again. Decide early the maximum bid you can place and stick to it. Often, getting a property at bargain prices at auctions is remote in a sellers market. Before buying Michigan foreclosures, ensure that the property is vacant. Eviction can be a complicated affair.

Busy Sunday Evening

2005-08-07T23:39:00.000-04:00

Working on those pre-foreclosures tonight and have lots of documents gathering and faxing over then week or so. I know we will will be submitting offers like crazy here in the next few weeks. Just to give you a flavor of our weekend take a peek at what Bob wrote Weekend Activities ... WOW

Why is Buying Michigan Real Estate with Your IRA a Good Decision?

2005-08-04T10:30:00.000-04:00

Consider this. In the past 70 years, the average inflation rate per year is about 4%. As you age, the value of your retirement plans decline by 4%. Is there a way to win in this risk return tradeoff? Fortunately, retirement plans are flexible and you can beat the decline in dollar value.

If you are a self-employed individual or an employee, you get tax breaks for contributing to IRA. Most CPA’s and Financial advisors don’t know or understand that while you get tax breaks for contributing to certain types of IRAs, you can also benefit from returns generated by investing these contributions into real estate.

Is it legal to buy real estate with your IRA? Whatever the type of retirement plan, you can safely invest your IRA money in single units, multi units, commercial property or raw land. Keogh plans or Individual Retirement Accounts are great sources for funding your Michigan real estate buying for investment. However, the IRS does not permit you to use the property for personal use or for vacation.

You can create many individual retirement accounts. You can also invest funds from these accounts in various investment vehicles. By investing in Michigan real estate, you can diversify the risks of your retirement portfolio, as you are spreading the amount over a series of investment options. With shrewd investing, you are spared of the risk involved in cyclic investing – like stocks.

Once you are convinced of the advantages, how do you begin buying real estate with your IRA? IRA does not permit you to be custodian of your own account. So, you have to find a custodian who permits real estate as an IRA investment. Since you cannot hold the title of the property you are purchasing, your custodian will hold the title on your behalf until you reach 59 ½ years of age or until you sell it. Since you can ask the custodian to sell the property, your custodian will transfer the title to the buyer and credit the sale proceeds to your IRA account.

If your property requires some expenses or involve paying taxes, that amount must originate from your IRA account and not from your personal account. Since the custodian pays every expense from your IRA account, ensure that there are sufficient funds to offset these expenses.

Upon the sale of the property, the initial amount and the profits are placed back into your IRA account with NO taxes on the profits. There is also no dollar limit to the amount of profit that can be contributed to your IRA each year.

One aspect you have to consider when buying Michigan real estate with your IRA is the custodian fee. You will also have to check out the services provided by your custodian. Some of them provide services like collecting rents, handle rehabbing or paying property taxes, some don’t. You may have to engage other service providers for tasks not performed by your selected custodian.

Despite such cumbersome procedures, buying Michigan real estate with your IRA will be a good move if there is a good appreciation in the property value.
For more information about using your IRA to purchase real estate, check out the

Equity Trust website.

Part 2 An Exclusive Interview on IRA & Real Estate

You need to carry a mental check list when you are looking at bank foreclosures?

2005-07-31T09:22:00.000-04:00

You need a 3 point check lists:

1st - before you go into house, walk up and down the street, look at the exteriors of houses, windows, entry doors, yards, trimming, mailbox, light post in the yard and driveways to determine best or worse house on the street. Check out the house with the best curb appeal and take pictures.

2nd - Look inside and get a feeling of space, is it enough or are the rooms cut up and small, look at basement and does it smell mesty, water laying around and my favorite look at the drain covers on the floor and are they rusted, corroded or gone. On your way up stairs spot by the washer / dryer area and look at the tub, vents & tub feet for rust.

3rd - If it has a strange design - don't just stay away, run quickly before those pesky foreclosures take a bite out of you!

Industrial Age business model vs Information Age Business Model

2005-07-24T13:36:00.000-04:00

OR

I have noticed a lot of people are still thinking in the Horatio Alger tradition when approaching business and real estate investing strategies. That is they pool all their money with that funds they can borrow from friends and perhaps they get a loan from the bank. They find a house in the neighborhood that needs some work and buy it. They work on it themselves, after work and on the weekends adding on to their already busy schedule.

When they finally get it done and hopefully have not run over budget on repairs, they put a sign out in the yard for sale or rent. Hopefully a qualified buyer comes along that can qualify . for a mortgage and they can close in a reasonable amount of time. If the new investor decides to rent it, they put a tenant in and they have to deal with rent collection, calls at night for repairs, extra tenants showing up, pets being smuggled in and clean-up after their tenants move out. Hopefully they have made a profit. This is what a lot of the late night info commercials teach.

OR

You can invest using an information age business model. You team up with people who are successful in investing in their local market. They have the relation networks already established. They know how to market the house for short term or long term profits before they even buy the property. They understand how to negotiate the deal to get the best price. They have the contacts with local contractors to get the foreclosed or distressed property repaired quickly.

And they have the contacts with financing institutions to get the best type of loans for the person buying your investment for short term profit and if its long term profit, the best loan for you the investor for maximum cash flow. There are also property management arrangements available. You can learn as little or as much of the process that you are comfortable with. You are kept informed of your property’s progress through email, photos, personal phone calls and site tours if you wish.

This is a turnkey investment business in full operation. This is what I and my team do, run the turnkey operation for our in-state and out-of-state investors.

To Find out more fill out the information for the free report and check out the links for more useful articles.

Michigan Property Tax Estimator Link

2005-07-23T08:02:00.000-04:00

A fellow investor Rita Dalian found this very useful link.. Great time saver for Michigan real estate investors:

Property Tax Estimator

We can now access estimates on property taxes by local unit and school district, using 2003 millage rates. Simply enter the Taxable Value (approximately 50% of the home's value), and select the county from the drop down list provided. We are then be prompted to select a city, village or township along with a school district. The program then calculates homestead (Primary Residence or Qualified Farm) and non-homestead (Second Home, Rental or Business) property taxes.

Thanks Rita.

Still waiting......

2005-07-20T14:10:00.000-04:00

The bank is still mulling over my offer. I should hear if by friday is the bank is willing to play on this foreclosure.

Today's Adventure

2005-07-18T22:32:00.000-04:00

Just put an offer in on this pretty REO this afternoon. I will know in 24 hours if it is a go or not.

Investing in real esate with a Self Directed IRA

2005-07-11T10:56:00.000-04:00

Finally somebody has written a decent article about self directed IRA in a mainstream magazine like Fortune. You can read the whole article here -

Customize your IRA

.

One of my mentors Mark went to the DK Super Conference in April. He said it was pretty funny to see a room full of really smart entrepreuners act surprised upon learning that they can invest in real estate with their IRA. The Equity Trust owner was doing his presentation and everbody kept on saying "Is this legal?" and "How come my CPA / Financial Planner has never said anything about this to me before?"

Well off course the CPA's are clueless about how to make money, all they can do is to look and analyze what has already happend in your business. The financial planners have a vested interest in making you buy as many stocks and bonds a possible so why would they tell you that you can make much better returns in real estate. Truthfully, I dont think they really know anything about using the self directed IRA to invest in anything other than stock, bonds and mutual funds. I feel that the foxes are in charge of the hen house most of the time after talking to most financial planners.

Here's another thought to mull over, if someone is working with private money in Michigan for real estate investments, like I am; there are a alot of people with early buyouts or have been laid off from the Big Three automakers- like a good friend of mine-who have substantial 401Ks that can be rolled over to a self directed IRA. Then they lend me the money for a real estate project and the profits back to them are greater than returns on stocks, and how I choose the properties alot safer investment for them and best of all tax free. Sweet deal for everyone.

Family news: William, my nephew is recovering nicely from his surgery and should be able to start working with me in 2 more weeks.

Why we may be seeing more foreclosures in Michigan.

2005-07-01T10:08:00.000-04:00

Agency Sounds Warning On Stated-Income And Interest-Only Mortgages
by Kenneth R. Harney

An important mortgage market player has sounded an alarm about limited-doc and interest-only features in a growing percentage of home loans, especially those made to purchasers with subprime credit.

In an advisory issued last week, Wall Street's Dominion Bond Rating Service, which assigns risk ratings to mortgage-backed securities pools, expressed "concern" about lenders' potential "easing of credit standards" to boost origination volumes in the post-refi boom climate of 2005.The rating agency cited interest-only and "stated documentation" loans in new subprime mortgage pools as especially worrisome. "Stated" doc mortgages generally do not require homebuyers to provide hard evidence of income and assets to support their applications. Interest-only loans allow home buyers reduced monthly payments -- there is no principal reduction for an agreed-upon initial period -- but then convert to full amortization for the balance of the term.

Dominion said "mortgages underwritten (with) minimal documentation sometimes account for as much as 50 percent of mortgage pools" in the subprime arena. Yet the no-doc/stated-income concept was originally designed to assist self-employed, business-owning homebuyers with solid credit histories who preferred not to divulge their full financial details. The idea was not designed for buyers with marginal incomes and credit.

No-doc "has since been expanded to include salaried borrowers who cannot or will not show proof of income," said Dominion in its advisory. Some analysts have called such mortgages "liar loans" because the income or assets claimed by the applicant may be illusory or fraudulent. That potential, in turn, raises the chance of future delinquencies and foreclosures.

Dominion is hardly alone in its opinions. Last spring, two major mortgage insurance companies blew the whistle on "NINAs" -- no income, no asset verification loans -- and curtailed issuance of new insurance to no-doc borrowers with low downpayments."

It may be stating the obvious," said Curt Culver, president and CEO of Mortgage Guaranty Insurance Corp. (MGIC), the largest underwriter in the industry, "but you can't document what you don't have. In many instances (NINAs) are allowing borrowers to do just that. Why wouldn't a borrower choose to fully document their income to assure that they get the lowest possible rate?"

Another insurer, United Guaranty, stopped underwriting non-docs after investigators found that in 90 percent of NINAs that defaulted, mortgage or realty professionals working with the home buyers knew in advance they really didn't have the income or assets necessary to afford the house.

Dominion's concerns about interest-only subprime loans centered around the fact that the industry has "only a limited performance history" on this breed of mortgage. Other analysts have pointed out that interest-only mortgages have a heightened propensity to default because of possible "payment shocks" after the initial low-payment period expired.

For example, say a home buyer takes out a 30-year $333,700 hybrid ARM with an interest-only period of five years. The lender sets the initial fixed payment rate at 5.25 percent -- or $1,460 a month. But in the 61st month, the loan morphs into a one-year LIBOR-indexed adjustable with a standard 2.25 percent margin. With the onset of principal reduction, plus a compressed 25-year remaining amortization term, the monthly payment due from the homeowner would shoot up by 30 percent overnight -- to $1,895 -- if market rates remained flat. But if rates in the economy overall rose by just 1.5 points during the five-year period -- a scenario not unlike what could happen under current Federal Reserve monetary policies -- the payment due in the 61st month would jump by 50 percent to nearly $2,200 a month. That might well be too great a jolt for the homeowners to handle.

Read full story.

Family business

2005-06-24T14:03:00.000-04:00

My nephew had minor back surgery this morning. He is doing fine. He will be recovering for about 3 weeks and then he will be able to do some lite work. He figured he wouldn't have a summer job this year due to his physical limitations from the surgery.

Surprise!! He will be working for me this summer, learning about investing with on the job training. I will have he do some of the computer work, walking through properties to determine good and bad floorplans and repairs, and have him start analysing properties to determine which are the better deals. End goal is for him to be able to find and analysis a deal on his own, I'll help coordinate the money and contractors and marketing of the property. We will split the profits at the close of the sale.

I love family run businesses just for this reason, I can be flexible and younger members of the family can get business experience and a reference letter - but only if they do satisfactory work. And they get a good deal of money for the summer if they learn and apply what they have learned.

Mistakes I've seen Investors make when buying Bank Foreclosures.

2005-06-24T13:32:00.000-04:00

They try to buy too cheap and realtors hate wasting their time.

Don't get me wrong, a low ball offer can be a good offer on a over priced house that has sat for a while, but at a certain point, the bank will reject the offer and that is it!

This is the biggest complaint I hear from our local realtors: Alot of "investors" forget they need money to close and lot of these REO's need just enough work that they don't qualify for a conventional loan so the deal doesn't happen. Then the realtor is mad because he didn't get his commission and has to relist the foreclosure, the bank is upset because it's still an open file on the property, and the "investor" feels cheated and figures all this real estate investing doesn't work in his area.

Making money in real estate and especially in foreclosed properties is more about relationships and the know-how than finding the perfect deal. The deals are out there, it is a matter of knowing how to put it together and what people you need involved with you to make it profitable.

This is why I am always reading about business, relationships and psychology (with focus on real estate and marketing to my retail homebuyers and passive income real estate investors). I also have a couple of mentors in my area that are very successful in single family homes and mult-unit properties. I work with other investors in the Metro Detroit area to exchange ideas, work on joint-venture projects and to network referrals with them on almost a daily basis through emails, phone calls and face to face meetings. It is very difficult and time consuming to invest in real estate alone. I wouldn't recommend a lone wolf style strategy for an investment property business.

Why buy Bank REO Foreclosures?

2005-06-14T16:47:00.000-04:00

I get asked this quite often. I find buying Bank REO's has many advantages starting with CLEAR TITLE. This means there are no liens against the property, no back taxes, no water bills and no utilities. All the items that could hinder a property at time of purchase has been taken care of by the Bank.

The properties I look at typically have large sums of equity which makes them affordable to purchase in 'AS-IS' condition which means something known or unknown is wrong with the house and its not the responsibility of the Bank to fix it. So me, as the buyer, would have to deal with the repairs later. There are profits to be made fixing up these damaged foreclosed homes. Discounts will vary property to property based on repairs, location, my negoitating skills, how long its been on the market, the agent I'm working with and the banks willingness to close the file on this property.

There is a great mis-understanding with Realtors vs Banks with Foreclosure Process?

2005-06-05T09:54:00.000-04:00

Banks sends REO's to Assest Management Companies to manage the deals. The Assest Management Companies assigns the properties to a Broker. The Broker does the pre-foreclosure paper work. When the property is vacant, the Broker has the property rekeyed and conducts BPO.

A BPO is Broker Price Opinion. There estimate on the value of the property AS-IS. Typically, the Assest Management Company will have two BPO's and Appraiser evaluate the property to formulate the value of the property in a 'AS-IS' status. What you will find in those cases, the Appraiser who was assigned is not familiar with the market and will come in with a higher price then they should have. End result, the property is listed and it just sits.

Once the property has hit the MLS, the house has been on the market for a long time, that is a direct indicator of OVER priced.

How I Make Money in Real Estate?

2005-06-03T09:11:00.000-04:00

• I buy and sell bank owned foreclosures. At any given day, thousands of houses are lost to banks who take possession of the houses because the homeowners can't afford the mortgage any more. Why would anybody get into such a bad situation? There are several reasons for that - death in the family, loss of a job, divorce, bankruptcy, substance abuse problem - just to name a few.

• It is a sad situation but it is reality. Every day in Michigan alone - in the just three counties I see over 1700 foreclosures going through the court system - every single month. That's right, this is not happening once in a while. Every month thousands of people lose their houses and are forced to leave. The banks need the mortgage balance back and at this time the only way they can get the money back is to go through the court system, buy back the house via a "Sheriff Auction" and wait for at least 6 months before they can evict the homeowner. Banks then use a realtor to sell these houses at a discount to try and recover some of the mortgage balance they have tied up in the house. By this time the bank has been 11 months with no payments coming in on this property and now expenses and liabilities are being added on top of the mortgage balance owed them.

Why Would a Bank Sell a Property at a BIG Loss to me?

Because banks are not in the real estate business - they are in the business of lending money and earning interest. It is an industry known fact that the banks lose around 40% on all foreclosure properties. So every time a house goes into foreclosure, the bank that is holding the mortgage on that particular property is looking at losing 40% of their investment at any given day.

On top of it, the longer the house does not sell, the more the bank is responsible for such as all property taxes, utility bills, security, and don't forget they might have $100,000 or more already locked in that house in a defaulted mortgage. In the banking industry, a foreclosure house is called a "non-performing asset" - To make it worst, for every dollar of "non-performing assets" the bank has to hold ten dollars which cannot loan out. One bank said its costings them $1 million dollars on top of the mortgage balances owed to them for every 500 foreclosed houses it has. The simple fact of the matter is that banks hate foreclosures - it exposes them to unwarranted liabilities, less profits, and most importantly that money is now locked in a "box" instead of earning interest somewhere. Most banks want a quick sale, collect their cash, and write off their losses in their next year tax returns and move on.
That is where I come in....

The Business of Quick Turn Real Estate

You might be thinking how is this possible? Because like most people around you, you have never seen a foreclosure buying and selling machine in action. Suffice to say that this is not like building a new house for your family.

This is how it works, step by step in my world:

• I Locate bank foreclosures in a decent area with equity
• I Identify the best property possible with 2 criteria in mind - how much money I make on this property and how quickly can I sell this property?
• I Buy the property
• I Renovate the property using some confidential staging techniques that will facilitate a quick sale.
• I Screen from the hordes of buyers - a list of able and qualified buyers who can buy the house.
• I Sell the house and collect my check.

How Can I Help You earn more return on your money?

I am looking for investors who have liquid cash to invest in real estate deals with me. You bring the capital, I do all the work, and we all go to the bank, richer by the end of the day. Simple as that.

How is our investment protected???

Your investment is protected in three different layers of safeguards:

• I don't buy anything that has less than 25% of After Repair Equity. Let me explain this quickly. Let's say I find a house that I have evaluated to have an after repair value or A.R.V. of $100,000 - I would not allocate more that $75,000 in acquisition and repair costs in that deal. Simply to protect myself and your capital. So just in case, if my estimate was wrong in any shape or form - let's say that the contractor ended up spending $3,000 more than anticipated. we still have $22,000 left in equity to make this deal worthwhile.

• Before I close on the property that is funded by you - you will receive the hazard and liability insurance papers via our insurance agent, with the paid receipts for 6 months. The great thing about quick turn real estate is that I am not looking to hold onto these properties for months and months. Once they are renovated the selling machine kicks in and our target is always to get rid of these properties at a healthy profit before 180 days.

• I always use title insurance company to close real estate deals.. You get the title insurance coverage on the property with you having an interest in the property.

What Kind of Returns Can You Expect?

I require a minimum investment of $125,000, for a minimum of 12 months. Rate of Return is:

• $125,000 and above - 13% per annum

Interest is paid out every six months. If you are interested in proceeding further, please email me at bonnie@bluewaterhouses.com

Working Weekend

2005-05-28T07:47:00.000-04:00

I am looking at dozen new properties this weekend in between cookouts and relatives. At first glance these properties have large sums of equity. There is definitely no shortage of deals. I need to run an ad for more cash investors who want double digit ROI.

New Wallboard that prevents mold growth

2005-05-15T16:31:00.000-04:00

I have been seeing alot of foreclosed homes that have a mold problem in at least one room if not more. I have been investigating materials to use to fix the problem and prevent the mold from growing back. DensGuard Plus is drywall that has a fiberglass covering instead of paper. No paper, no growth medium for the mold.

Under the right conditions of moisture and heat, mold can establish itself on regular drywall in as little as 24 hours. After 28 days of exposure to heat and moisture, the DensGuard Plus had no mold growth. I think this is a great product to replace water damaged drywall with.

Mold has no appetite for this wallboard

Low maintenence landscaping

2005-05-11T10:05:00.000-04:00

I went to a couple my local garden shops yesterday to see what plants they have. I am always looking for low maintenence plants that will look great. I like having some landscaping done at the house we are working on, it makes the house more inviting and appealing. With the rentals, I could always get top dollar because the outside, kitchens and bathrooms looked rich and didn't look like the 15 other places they had went through.

Grasses seem to be one of the "hot" items this year. They had everything from pampas grass that gets over 10 feet tall to this delicate looking fiber optic grass that gets 8 inches tall with little white flowers right on the ends of each blade. I picked up some unique looking grasses and I am will try some ideas in my garden first.

I usually do my experimenting of using new material at my home before I ever use it at one of the houses just in case it dosn't turn out right, I haven't affective any profits. So I'm off to play in the dirt.

Hot zip codes

2005-05-09T10:15:00.000-04:00

I found this article over the weekend and Michigan is on the list.

This year's hottest zip codes

A good but frustrating problem to have

2005-05-02T00:02:00.000-04:00

There are 11 profitable deals withing 10 minutes of my house and I don't have enough money to get them. I need more private investors. I guess this is a good problem, having so many opportunities you have to leave some for others and find more people to share in them. I'm lucky my parents taught me to share because there will always be more to come.

Advanced Techniques

2005-04-30T20:51:00.000-04:00

I just got home from a two day workshop on advance techniques for buying and selling foreclosures. My mind is flooded with new ideas and possibilities that I need to review my notes and digest the info tonight and start mapping out where to apply the new information into my business plan.

I am thrilled when I go to training a get one or two new ideas, these last two days were chucked full of usable techniques. I really need to mull it all over and get on the white board to brain storm. I have a 4 by 6 foot white board on the hallway wall right across from the home office. It is great for strategizing and utilizes empty wall space.

Side note: I know spring is here. 3 lanes of traffic stopped to let a family of baby geese cross the road. It's great to see such acts of caring. I think there are lots of good people out there no matter what I see in the news.

Flexibility

2005-04-25T19:05:00.000-04:00

We will be looking at the properties later this week. The snow storm that started friday night didn't stop until midnight sunday. Our power was off and on all weekend. So I got some reading and paperwork done. It's nice that I can easily rearrange and reschedule.

A friend of Bob's talked to us about being an investor with us. He went into work last week and was informed that his position at been eliminated. After years of loyal work, poof, no job. I will be meeting with him and his wife to make sure its a fit and we will go from there.

23.62% ROI, 10% APR

2005-04-22T16:53:00.000-04:00

3 bedroom 1 bath 1328 sq ft

Here's the numbers:

Total investment: $127,000
Fair Market Value: $158,000

profit: $30,000

my private investor is getting 10% APR for writing a check

Opportunities

2005-04-22T14:14:00.000-04:00

If anyone tries to tell me that there are no good deals in my area, I am going to have a hard time not laughing in front of them. I spent about 30 minutes and have narrowed the list to 9 new foreclosures within 10 miles of home for Bob and I to look at tomorrow.

My personal rule of thumb: I never go looking at houses alone - one of my investor friends a few years back walked into a supposely vacant house on the east side and came face to face with a lion cub. Luckily he and the cub were both so startled that neither got hurt. Animal control and the zoo got called quick and luckily everything ended okay. Two people and a cell phone are a must for me to go viewing "empty" properties.

I had an agent call yesterday with a new listing that she thought I would be interested in...that's first one on the list to look at. She had showed me a house that has potential last week, but it is a 9 -12 month project. I'm not sure I want to tackle it right now...but I don't think it will move fast due to visible mold. (I think it looks like a science experiment that is out of control) Mold looks scary to a home owner, to me it means BIG discount on asking price. If the property is still available at the end of summer, I'll think about it.

So tomorrow I plan on having pen and paper, digital camera, flashlight and cell phone in hand; list of houses and Bob in the truck and new opportunities to check out.

My past experience in real estate investing and where I'm going

2005-04-22T13:11:00.000-04:00

It's hard for me to believe I have 12 years experience in buying, fixing, renting and selling real estate in Detroit. I had 32 properties of my own and was managing properties for numerous investors that did not want to deal with tenants, contractor, city inspectors, etc... 2 years ago, I had to sell my stock of houses and close my property management business due to my mother being diagnosised with liver cancer. Mom and dad did not have that greatest insurance and me being the only child made for some difficult struggles.

Now I'm starting over again, with a lot more experience than I did the first time. I have tweet my stategy based on experience and market conditions. I am focusing on foreclosures within a 20 mile radius of my home, which puts in me in the northern part of St. Clair County and Croswell/Lexington area. I am planning to buy homes that need some fix-up and rejuvenating, using licensed contractors to do most of the work, and then selling the homes. I can make more money finding the deals and buying them right then spending my time installing toliets. I am also working with private investors so they make more return of their money and I can do more deals per month.

At the height of my rental business, I was managing the buy, fix-up and renting of 8 single family homes per month. I would like to get to that number again.

Later, in 18 months, I plan adding smaller apartments and rental properties - duplexes up to 8 units in the mix. I will rehab them, establish good management, increasing the properties' value and rents, and enjoy the cashflow, depreciation on taxes, and appreciation of the property.

At the moment, I am focused on 3 bedroom single family homes that have at least a 15% return on investment that I can resale within 6 months of purchase. I have 3 at the moment that look very promising, I am working up the rehab dollar amounts to make sure the ROI is there and they look very good.