Richard Harbin

At this time of year, when people have a hundred things happening, is a great time to submit that contract! Chances are unless you are paying cash, you probably won't close til Jan or February anyways. A lot of people would like to know their home sale is locked up by the New Year. As a result they might move on their price in order to lock that up. Its worth a try and if they don't play ball you can wait a month or 2.

Ah what a mixed bag of nuts these two are! Each have their own headaches that I will ty to touch on here.

Investment properties - While the foreclosure market presents unheard of oppurtunities in this area, there are some potholes to look for.

Remember with a foreclosure you have to take into account the mindset of the resident. If they did not have money for mortgage the last year, then what are the chances they spent any money on the upkeep of the home? You can get into serious maintenance issues (take it from a former Chief Engineer for Marriott) that can eat up your profit margin!

I would not even consider investment properties if I didnt have A) the knowledge to effect all repairs myself, or B) had someone I trusted implicitely that had the knowledge. Besides the money saved in labor, when you hit an impass you must be knowledgable or get taken advantage of by vendors. This also eats up your profit margin.

Rentals - The biggest headaches for rentors is the upkeep of the property. I have seen a lot of homes trashed by tenants that made a profitable rental into a money pit! Remember you never know what the tenant will be like so it is important to be able to monitor the property. I am revamping a house now to sell that is trashed. The owner wants out. He is an absentee (out-of-town) rentor and was unable to monitor the home. This will cost him about 10-20k. BE CAREFUL!

So as a Realtor who does 75% of my business with investors, I can tell you it is a tricky market.

The problem is, where I live in Knoxville, we have been for the most part insulated from the foreclosure gluts that you see on the east coast, FL, and Cali. So the national news talks about buying foreclosures for 30-40cents on the $ and my buyers think this is a nationwide given. Here in Knoxville the banks realize this is a stable market and do not budge a whole lot on the listings. Especially if you are dealing with a local smaller bank. If you get a foreclosure for 75-80cents than you are doing pretty good. Also take into account the already reduced cost for a home in the market place and you are still getting great deals!

The most important thing I share with new investment buyers is this information. You have to set their expectations at an achievable level or you will lose them as a client. Sometimes this entails being the "messenger". But regardless of how hard it may be to educate a buyer about your marketplace, it is a VERY important step that needs to be done as early as possible in the relationship.

The last thing and probably the hardest when working with investors is getting the bamks to learn the most important thing in dealing with contracts and that is "TIME IS OF THE ESSENCE"! Make sure to give the banks enough time to respond, but not enough to get another contract!

ITS TRICKY!

SOCIALISM - Definition according M-W.com

Please remember I am not calling you a socialist, just informing you that your views are, by definition, socialist.

1 : any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods and services
2 a : a system of society or group living in which there is no private property b : a system or condition of society in which the means of production are owned and controlled by the state
3 : a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done.

You are a SOCIALIST if -

1) You think that the more money you make the higher the rate of tax. See definition #3!

2) You think that the Government should run Healthcare vs the Private Sector. See definition #1

3) You think that the Government bail-out of the banks was a good idea thus giving over 80% of the home ownership controlled by the Government - See definition #2

4)You think the Government bail-out of the auto industry was a good idea thus putting control of our largest automakers in the hands of the Government - See definiton #2b

5)You believe the highest income earners should have to foot the bill for the poorest of the nation's Healthcare - See definition #3

Please feel free to add your own!

Ya know when BHO got elected I came on here and said there would be no bi-partisanism from the most partisan voting Senator in the Senate. A bunch of you railed me saying "lets give it a chance!" "He will reach across the aisle" "blah, blah, blah!"!

Well now you are going to get axactly what you deserve.

I am afraid what this President and congress are doing to our country! Whats next, amnesty? Will home ownership be something of the past in 20 years? Am I crazy or just echoing this sentiment from another freedom loving american.

If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless." - Thomas Jefferson