Rich Schiffer, REALTOR, e-PRO

By Rich Schiffer, REALTOR, e-PRO

You have probably been hearing news stories that go something like this:

"Without perfect credit and 20% downpayment, no one can a mortgage today."

This is simply NOT TRUE.

Steve Madonna of Weichert Financial Services, for example, reports that they have many resources to obtain financing for most buyers. In fact, 11 out of 12 loans closed through Weichert Financial Services in the Media, Delaware County, PA office in September were with less than 20% down. (To contact Steve, call 610-566-2045)

Don't believe the media hype. Doom and gloom stories capture a broader audience, and help them sell more advertising. If they told the full story, they would loose thier audience, and their ad revenue.

• You don't need perfect credit. You do need good credit (Credit score of 620 or higher is preferable).
• You don't need 20% down. (3% will suffice in most cases, 10% for condos.)

Call your Realtor today to get the facts, not hype.

Rich Schiffer is a licensed real estate agent with Weichert Realtors, in their Media, PA office. He specializes in serving first-time home-buyers in Delaware County, PA, and the surrounding areas. For more information, email him at RSchiffer@weichert.com or call (610) 506-2663.

Like so many others, you watch shows like "Flip This House" and think,
"Wow, what a great way to make money...I should do that."
You think you might want to "flip" properties, but you don't know where to start.

For most people, it stops there, and they never invest in a single property.

Some people take that inspiration and become successful real estate investors.

Far too many, however set out to invest, but end up loosing money, or just barely breaking even.

What then should you do to increase your likelihood of landing in the "successful real estate investor" category?

Here are some things to do to help set yourself up for success:

1. Know your limits:
   No single person can do it all. You can dramatically increase your chances of success by having a solid understanding of the limits of your own knowledge. Knowing when to say "I don't know" is extremely important. Evaluating your weak points will also help you build your team. If you don't fully understand your local market conditions, for example, hire a REALTOR® who does.
2. Build a team:
   As was said in #1, above, "No single person can do it all." To improve your chances of success, you need to build a network of support - your "Team." Just like a football team, there are many positions that need to be filled. You need to consider filling the following positions:
   1. Accountant
   2. Attorney
   3. REALTOR® (note -- the agent you select may already have many of the other team members you need already identified and available to fulfill your needs.)
   4. Property Manager
   5. Home Inspector
   6. Appraiser
   7. Title Company
   8. Mortgage broker/banker
   9. Insurance Agent
   10. General Contractor
   11. Subcontractors (Plumbers, Electricians, Carpenters, Painters, etc.)
3. Set your goals:
   By setting specific, measurable results as your goals you will help get yourself on the path to being a successful real estate investor. Realistic, attainable milestones, rather than colossal hurdles are the key to forward progress. Work with your REALTOR® to understand the opportunities in your target market, so that together you can set appropriate goals.
4. Define your exit strategies:
   Part of your planning process has to account for your exit strategy, as well. Knowing when to get out of a costly project is often just as important as deciding which potentially profitable project to take on. Weigh the advice from your accountant and your REALTOR® when determining the best exit strategies for you.
5. Limit your risk:
   You can limit your personal risk of financial loss by several means. Maintaining the proper licensing and insurance, (and using only licensed and insured contractors) is one factor. Limiting personal liability by structuring your project as a separate business entity is another. When you build your team, use your accountant and attorney to advise you on these matters is essential. Working with a REALTOR® that understands the application of these business entities in real estate transactions will help you smoothly overcome any obstacles that may come up in the process of a real estate transaction, as well.
6. Follow a plan
   Planning is extremely important. Not just planning the flow of a particular project, but also ensuring that your plan fits within any master plans that the local municipality may have. This can help you avoid the need for costly zoning variances and special use permits. It can also help identify areas where there may be outside development efforts that will effect your property values, for better or worse, in addition to identifying potential incentives for positioning your efforts in targeted opportunity zones that may allow you to take advantage of tax abatements, special rehab financing, etc. REALTORS® that regularly work with investors will have access to the type of information you need to take these factors into consideration, so working in partnership with your REALTOR to build your plan will help set you in the right direction.

If you see a common thread in these steps, it is intentional. Working with your REALTOR® every step of the way will help you in more ways than one. In addition to helping you negotiate the best acquisition price, and helping you get the best price the market will bear for your finished product, by partnering with your REALTOR, and enabling them to best understand your goals, you will create a mutually beneficial relationship - they will be ever vigilant for opportunities for you to succeed in your long-term plan. Perhaps the best advice was offered by one of the world's most respected investors:

"If you want to go fast, go alone. If you want to go far, go together."
-Warren Buffet

Those of you that know me personally, know that I have a passion for writing -- and not just blogs. I co-wrote the screenplay for the short film, "The Cracked Man", among other things.

The director of that film, Kevin Corcoran, also invited me to help with the production of another film, "Cube Zombies," which premiered last November at the Bryn Mawr Film Institute. I was credited with the "Sound Recording" for the film.

"Cube Zombies" is getting more exposure.

It will be playing the Terror Film Festival, Thursday, October 23rd as part of a program of shorts that begins at 6:45 PM at the Ethical Society building on Rittenhouse Square in Philadelphia.

http://terrorfilmfestival.net/_wsn/page4.html

(That link is to the schedule page instead of the home page of Terrorfilmfestival.net. That's because the homepage has loud sound effects that will potentially embarrass you by revealing you are surfing the net instead of slaving away in your cube like a good little zombie...)

If you can come to Philadelphia that day, please come, and support our film. If you cant make it, why not buy a copy from amazon.com?

The southeastern PA region's largest energy services provider, PECO, has teamed up with ENERGY STAR ® to provide consumers with energy saving tools. PECO serves over 1.6 million electric customers and 485,000 gas customers.

This is a great example of responsible corporate behavior - a company acting in the best interests of their customers, not just the company's bottom line profit. If PECO customers follow the guidelines, they will dramatically lower their energy consumption. Bravo, PECO!

Visit www.PECO.com/save for energy saving tips and green information.

Consumers can learn about all sorts of energy saving (and money-saving!) tips by using an interactive "home tour" that features tips for every room of the house, and a link to EnergyStar's Consumer Pledge - a great way for individuals to help fight global warming.

This is not the only way PECO is becoming more eco-friendly.

Their recent initiatives total more than $15 million in investments, including:

• PECO's first "green building" in West Chester, PA.
• Installation of a "green roof"
• Multiple upgrades to company buildings to secure LEED Certification (Leadership in Energy and Environmental Design)
• Customer support for energy efficiency efforts.
• EasySave Energy Kits - for $20, consumers can purchase an EasySave Energy Kit that includes 3 Compact Florescent light bulbs, an LED nightlight, and a massaging showerhead and a kitchen faucet sprayer head, and several other eco-friendly goodies. (for $25 the showerhead is hand-held.)

I encourage everyone to take advantage of PECO's energy saving programs.

I had a lovely lunch with my wife and sons here the other day.  I had a sandwich (2 fried eggs, pork roll and cheese on a nice, fresh Kaiser roll).  Jinny had an omlette, Chuckie had scrambled eggs, sausage and home fries.  Joey had a bagel with cream cheese.

This cozy little luncheonette is the perfect spot to enjoy breakfast or lunch, with a home-cooked feel. Homesick Swarthmore College students and locals alike enjoy the traditional fare, friendly service, and the fact that the prices won't strain your wallet.  (Our 4-person meal, including beverages and tip came to about $26)

The inside seems a lot larger than you might think, thanks in large part to the mirrored wall opposite the grill area.  (I love places where the grill is out in the open -- watching a good short-order cook in action is like watching an artist at an easel -- everything looks chaotic until all of a sudden, with a few well-placed strokes of a brush -- or in this case, a few masterful flips of a spatula) a masterpiece takes shape, right before your eyes.

Vicky's maintains a MySpace page:  http://www.myspace.com/vickysplace

They also do take-out:  Call 610-328-2453 to place your order.

Swarthmore is a quaint little borough, nestled in Delaware County, PA, and is home to Swarthmore College.  The business district (referred to by college students as "The Ville" -- a nickname that hasn't exactly been embraced by the locals) boasts wide sidewalks frequently interupted by beautiful potted flowers and ornamental plants, making this a perfect place for a little outdoor dining.

The streets of Swarthmore are clean, thanks in large part to a very visible commitment to a recycling program.  There are attractive collecion bins for both rubbish and recyclables within easy reach of nearly every storefront.

Swarthmore's commitment to the environment doesn't stop with recycling.

Swarthmore was the one of first "Clean Energy Communities" in Pennsylvania, pledging to purchase at least 20% of their power from clean sources.  The borough has already qualified for a 1 kilowatt solar photovoltaic system for reaching their clean energy goals.

(For more information about the Pennsylvania Clean Energy Communities program, or to see how your community could benefit, visit http://communities.trfund.com/ )

Swarthmore, PA --  A beautiful place to call home.