Andrew Chong

Class Review: Successfully Selling HUD Homes, Houston, 11/7/08

Real estate agents in Houston are going to run into HUD foreclosures at some point or another. The class was very informative and has 4 hours of MCE credit to boot. Kevin Riles of Upscale Properties was the presenter and is one of the four HUD brokers serving the Houston and SE Texas areas. The cost of the class is $30 and is given at his office in Stafford.

Plan to arrive early, however, as there is road construction right in front of the offices, making it very confusing to find and figure out how to park. In spite of this we had a full class and it went smoothly.

The class is given at least monthly and is advertised via email. I deleted mine and when I decided to go at the last minute I had to ask a couple agents in the office to locate it on their computers. Save it somewhere for future reference.

Riles was very expert, entertaining and a good instructor. Thank goodness, because it made the 4 hours go fast. With so many foreclosures on the market, you and your buyers are going to come across some attractive listings, and we need to know how to show and to bid. Unlike a bank foreclosure the HUD process is all electronic.

This class took the mystery out of the whole process and enlightened me to opportunities for leads. Did you know you can advertise HUD homes? That's right. What are the possibilities here? Furthermore, some of the procedures and requirements have changed and for those of you who have HUD experience, it's a good chance to get updated. It is a good class to take.

At this moment there is a confluence of events which have created the perfect condition for buying rental real estate. We've seen it, we've experienced it. There is no better time to buy rental real estate. Prices peaked one year ago and are heading down while interest rates are still historically low. For the investor-in-waiting seeking to lay the foundation for a portfolio of properties, it's Christmas in November.

Bank foreclosures have been rising for the past three years but demand and prices were keeping up. Then, Fannie and Freddie crashed and took the markets with them, causing a domino effect which we may not have seen the last of yet. Properties are staying on the market longer forcing prices down. There is a lot of inventory and the only thing missing is someone screaming, "Red Apple Sale!"

Who hasn't seen a big jump in the leasing business, and a plunge in sales? All the landlords among us are very smug.

Now is when the agent/buyer can strike good deals because all the lenders are scratching and scraping for business, and banks want to unload their inventory. Brush up the credit score and negotiate hard.

The added catalyst is the prospect of tax increases under a new administration. The plunge in retirement investments and stock portfolios is a stark reminder that paper assets can vanish overnight. I believe many individuals will move money out of the stock market and into rental real estate. This is good for us as well, if we have active investor clients.

The time is ripe, fellow travelers, for there are some deals out there.

This is one of those timely, well-written, reader-friendly books that one devours in one sitting. If you're serious about wealth and financial security, it can be transformative. I not only bought the book but subsequently bought the audio book, so I could listen to it while on the road.

Now, what is it doing on a community blog? Because buying and holding real estate (rental property) is the foremost wealth-building strategy, that's why. Now, let me continue.

The book and the audio have different emphases. The book takes the reader through thought-provoking written exercises to uncover the reader's "financial blueprint." This is about self-discovery and why some people have the "golden touch" while others struggle to pay the rent. In my own revelation, although I grew up middle class, my parents came out of poverty and I absorbed their mindset of scarcity. I know some of you know exactly what I'm talking about. The good news is we have the power to change.

The audio is stripped down a bit and leaps into the "wealth files" section, where affirmations are used to embed new ways of thinking.

Among many great ideas, one that stands out is Eker's definition of wealth. It's not so much about money as it is about being the best that one can be. I never connected the endeavor to be the best with attracting wealth, but it does make perfect sense.

Enjoy and let me know what you think of the book.

Yesterday (11/3/08) I protested my property taxes at Harris County Appraisal District. I'm pleased to report that I got a 5.9% decrease in the appraised value of my townhouse. It's going to save me less than $200 but you have to understand. Last year I missed the appointment and this year I almost missed the appointment but a quick phone call saved the day. So I'm pleased that I got it done and stopped the escalation of the taxes.

Amazingly, I was there only about 15 minutes before I was called, and the discussions took only about another 15, and I was out of there. I did not go to the ARB level, which may have taken a lot longer.

The important thing I learned was to use sales values from the preceding year, up to about February of the current year. Any data older than that is not usable. This is very important in showing the decline in values in some neighborhoods. My subdivision has seen a decline. Therefore, next year, 2009, I'll protest again to hopefully get still another reduction.

Real estate values are going down all over Houston and it behooves every home owner to protest the value of their home. If one had not done so in the past couple years or had never done so, the home owner is likely to be paying more than he or she needs to. Don't pay taxes that you don't need to.