Rob Barney
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Why You Should Use A Buyer’s Agent
One of the biggest mistakes new and veteran real estate investors make is to purchase a listed property without the use of a buyers agent who is experienced in working with real estate investors. Now any agent can be a buyers agent but unless they understand how we buy and sell property they will not be able to guide you through the many pitfalls and will cause unnecessary paperwork and hassle.Many investors incorrectly believe that if they don’t use a buyers’ agent they can get the seller to give “them” a 3% discount in-lieu of paying the full 6% to…
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What Is A Bargain Worth
My grandfather used to always tell me… A bargain is worth just as much as you paid for it!What does this mean? It means that taking short cuts and using the lowest bid may cost you more in the long run.Every time I review a Hard Money Loan application I also review the inspection reports, scope of work and repair bids as part of my due diligence. I am constantly amazed with the small amount that rehabbers are willing to invest in repairs on a house that they want to sell for top dollar. Regardless of the value of the…
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New Realities for Hard Money Borrowers
It used to be, just 9 months ago, that any rehabber with a pulse that could find a house to purchase for a price of 70% of the After Repaired Value (ARV) including the cost of repairs, could find financing with a Hard Money Lender (HML). As many of you well know, that is no longer the case. HMLs are now looking at the strength of the borrower as well as the viability of the deal. Why has this come to pass? What does it mean to rehabbers? How will this impact the market? Let’s find out.So why have HMLs,…
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How to Ensure a Fast Easy Closing with Your Hard Money Lender
Every Real Estate Investor (REI) wants to close as soon as possible but unless you help the process along by doing the simple tasks required by your Hard Money Lender (HML) and the title company you are almost guaranteed to miss your closing date. A real estate transaction closing is quite simple and the better you understand it the more you can impact and even influence the closing itself. Let’s start by looking at the four main parties to a real estate closing.1.) The Buyer – You2.) The Seller3.) The Title Company – Closer4.) The Lender – Hard Money Lender…
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Hard Money Loans vs. Conventional Investor Loans
If You Need Fast Access To Capital for REI Then A HML May Be Your New Best Friend.There are a lot of misconceptions regarding Hard Money Loans and Hard Money Lenders (HMLs). Most of the confusion surrounds the differences between conventional mortgages and HMLs. I wanted to take a moment and try to answer many of the general Frequently Asked Questions as well as to compare a HML to a Conventional non-owner occupied investor loan.Frequently Asked HML QuestionsHow does the program work?HMLs provide Real Estate Investors access to asset based capital. We can fund quickly, typically within 72 hours of…
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Bird-Dogging 101
If You Are Not Doing This Math on Every Deal You Are Considering Putting Under Contract,Then You Are Not Earning Your Assignment Fee!DefinitionA “Bird-Dog” is someone who identifies a good Real Estate investment opportunity and puts the property under contract with the sole intent of assigning that contract for a fee to a rehabber to repair and resell. For the purpose of this article the term Birddogging and Flipping will mean the SAME thing.The ScenarioI believe that birddogs are getting as frustrated with the current state of the Real Estate investment market in the DFW area as many rehabbers are.…
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Get a Home Warranty When You Buy Residential Property
I don’t know why more rehabbers do not ask the sellers to provide a home warranty. This costs the seller less than $350 and can save you a ton of money. In fact, I would suggest getting the seller to agree to the sales price, then tell them you will pay $350.00 more but they have to buy a home warranty (stipulated on TREC contract). Why? because if the seller provides the home warranty it is a.) in force immediately, b.) fully transferable during the term (if paid in full). Otherwise, you have to wait for 30 days before your…
