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Karen Rittenhouse

Christmas Trees – a North Carolina Tradition

Christmas Trees – a North Carolina Tradition

Christmas Tree Farm

It’s that Holiday time of year! Did you know:

North Carolina ranks second in the nation in Christmas tree harvesting. Every year, 2500 growers send about 6 million trees to market. The state cash receipts for these trees totals approximately $100 million.

You can pick and cut your own tree at about 400 North Carolina Christmas Tree farms. In fact, about 300,000 people use this method to purchase their trees each year.

Christmas tree production generates about $100 million in revenue for our state each year.

North Carolina Fraser firs are the most popular choice for the White House Christmas tree. From 1971 to 2008, a North Carolina Fraser fir decorated the blue room eleven times!

The average price of a Christmas tree in 2010 was $36.

I love North Carlina.

From our state to yours, Happy Holidays!

7 Ways to Spot a Bad Deal

7 Ways to Spot a Bad Deal

binoculars

Many investors come to us with “deals” that are not “deals”! What they actually have is a lead, sometimes a bad lead, that they are emotionally attached to and then they want us to tell them how to make the deal work.

First of all, don’t get emotionally attached to a piece of real estate (unless you live in it). It’s just real estate and there’s plenty more where that came from. You have to look at all deals from a business prospective. It’s not usually difficult to know if it’s a bad deal so here’s a checklist:

1. The numbers don’t add up. You must have a formula for buying. We use a “Deal Structure” calculator. We plug in the purchase price, all the costs including renovations and monthly overhead, and calculate what we can pay to sell at a profit. If the numbers don’t work, they don’t work. Which leads me to red flag number two.

2. The sellers won’t give you their numbers. What they don’t know, you don’t know. You must be able to talk to their lender (easy enough to do) to get all their real costs – true payoff numbers are a must. HOA fees can be outrageous. If you plan to resell, exorbitant homeowners fees can kill the deal. Taxes can vary greatly even between counties so don’t guess. And, are the taxes current? What other surprise liens may be against the property? You MUST know all the numbers to figure your purchase price and the numbers must be verified.

3. Location. If it’s bad, you can’t fix it. Remember, when you buy the house, you will not be moving it to a better spot. No, the neighborhood will not improve in the next few years. No, the mall that may be built will not add value. If it’s in a bad spot today, look for a property that’s not.

4. Condition. Even if the numbers work before you see the property, be prepared! You may be surprised by what you find upon inspection. Want to really be safe? Have an inspector go through the property before you close. A trained eye has a better chance of finding mechanical and hidden problems that you may overlook. Better to spend $250 on an inspection and walk away from the “deal” than to save that money and have $15,000 in foundation and water issues that you missed when you walked through.

5. How long has it been for sale? Typically, good deals are gone quickly, often before they’re even listed on the open market. If it looks like a great deal but it’s been on the market for a long time, find out why. Is it in a flood zone? Is it no longer up to code and you will have to update before selling or putting in a tenant? Are there tremendous water issues that you can’t see because you’re in the middle of a drought? A great deal that’s still sitting on the market probably has a ghost you just don’t see.

6. Exit Strategies. We must have multiple ways to move a property after we’ve acquired it. Of course, they’re always for sale. Bring us a buyer with a good offer and, hooray! We also want to have the ability to lease it, rent it out or owner finance it as a way to “sell” it once we own it. If you are trapped into selling on the retail market as your only exit strategy, a “deal” can rapidly become not-such-a-deal in this market where there are few qualified buyers and tons of discounted properties for them to choose from. If you have to sell quickly, you need enough equity when you buy to be able to sell it at 20% below market value.

7. Never bet on the future. It has to be a deal today or it’s not a deal. The dot-com crash caught a lot of investors by surprise. The housing collapse caught a lot of property owners by surprise. Don’t try to guess what changes will occur and buy because you “just know” it’s going to work out in the future. No, you don’t know. It must have value, cash flow and profit potential the day you close or you’re not buying a good deal.

How do you check before you buy?

www.KarensPerspective.com

How Do You Get Started in the Real Estate Industry?

How Do You Get Started in the Real Estate Industry?

All Property Solutions

A friend just sent me a list of great questions so I decided to include our Q&A here.

Give a 2-3 sentence introduction about yourself:

My name is Karen Rittenhouse and I’m a full-time real estate investor. Over the past few years, I have bought and sold over 150 single family homes. I am not a real estate agent; all of the deals I do are my own. I also coach and train others how to buy and sell properties for profit!

How did you get started in the field of real estate and real estate investing?
I studied how the wealthy made their money. Over 95% made it through real estate: railroad tycoons made it from the land the rails lie on; Hearst Publishing owes their family fortune to the fact that William Randolph Hearst bought up the coast of California during the Great Depression; McDonalds owns more real estate than the Catholic Church. If you want true wealth, own real estate.

What is the #1 tip you would give people looking to get started in the real estate industry?
Find a successful coach. Don’t ask your mother’s brother’s uncle or your neighbor for advice. Don’t ask anyone who isn’t making significantly more than you want to make. Get a coach who’s doing what you want to do and is doing it successfully. Guru’s who pass through town selling materials often make their money that way and don’t even own real estate themselves.

What is the #1 mistake people make when house shopping?
They pay too much. They believe it will be worth more in the future. If you want to make money when you buy real estate, you need to make it the day you close on the purchase.

What, in your opinion, is the outlook for the real estate market in 6 to 12 months?
Same as it is today. Expect the next 3-5 years to be flat.

What is your formula for success in the world of real estate investing?

Buy right and hold as much as you can. If you plan to sell, buy so you can sell 20% below market value or it’s just going to sit. This is a great time to be a landlord.

Is Yellow Letter Marketing a Scam?

Is yellow letter marketing a scam?

Well, I'm sure it can be. However, our local CBS affiliate got a hold of one of our yellow "we buy houses" letters and had us investigated. Here's what they found out about Triad Residential Solutions.

Greensboro, NC

Greensboro, NC

F. W. Woolworth

US Airways Magazine did an amazing 71 page spread on Greensboro in their July issue. Have you seen it? We couldn’t have asked for better publicity.

They begin by proclaiming: “Barbecue, basketball, and business: It’s a conveniently alliterative trio that’s synonymous with Greensboro, the historic hub of North Carolina’s picturesque Piedmont region.

Yet there’s so much more to the city’s identity — museums, galleries, festivals, parks, music, and the dramatic arts. The combination of a pleasant, four-season climate, a deep menu of restaurants, and a gracious Southern style is tough to top.”

The article includes a wealth of information on our region: theater and the arts, sports – including our obsession with the Atlantic Coast Conference (ACC) and the museum to prove it.

Coverage of our museums, ballet and Universities.

And, of course, the International Civil Rights Center and Museum where, 51 years ago, four African-American freshmen from Greensboro’s A&T State University sat down in Woolworth’s Drug Store at the “whites only” lunch counter and dared to order coffee. Within a month, similar protests were taking place in more than 55 cities and 13 states. The original Woolworth store, and those famous barstools, still stands as a tribute to those brave students and what they did to inspire our nation.

The article goes on to showcase our arts and culture festivals, the beauty of our greenways, the many historic landmarks that still stand to reflect our heritage, our community foundations, semi-pro baseball team (go Grasshoppers!), sports complex, theaters for performing arts, the Greensboro Symphony and the Greensboro Opera.

I encourage you to click on the following link to read their articles and learn how much Greensboro has to offer. The magazine was filled with beautiful photographs that would make anyone anxious to visit and those of us who live here proud that we do.

My thanks to US Airways Magazine for featuring our beautiful city.

US Airways Magazine / Celebrate Greensboro, North Carolina.

For more information, contact the Greensboro Area Convention & Visitors Bureau: 800.344.2282, 336.274.2282, or VisitGreensboroNC.com.

GreensboroHistory.org

DowntownGreensboro.net

KarensPerspective.com