The Accidental Investor Today's Real Estate Speculator. Are you a real estate speculator? Who are the majority of today's real estate speculators? How can you be an accidental investor/speculator? It may surprise you!
The last thing on your mind is investing in real estate. You've convinced yourself can't afford the house you bought four years ago. Or you've lost you job. Your youngest needs his tonsils out, your 16 year was just added to your car insurance, and your oldest needs a prom dress and starts collage in 7 months!
You don't want to invest in real estate! You want to divest! You want to sell your house! Now! To that end you called several local REALTORS® taking bids on listing your house. You listed with the one that said they could get you $235,000.00 and would only charge you 4.5% to do so! You really resented that arrogant agent with all those pretentious letters behind his name, who does he think he is? Suggesting your house is only worth $200,000.00 and demanding 6% for his services.
Well, it's now four months later. Your listing agent now has nine months experience and he proudly tells you about his latest two sales, omitting that they are his first two sales and neither has closed yet.
You're visiting with agent because he's got an offer from that guy who tried to list your house for $200,000.00. He explains that guy ask to present the offer himself, but that he wouldn't allow it. He had to protect you, from this low-ball offer, he was only showing it to you because it was the only offer you've received.
He says the offer is for only $195,000.00. He reminds you your house is worth $235,000.00. He tells you the guy sent over notes about several sales where the sellers got cheated selling houses like your's for under $200,000.00. He tells you he already turned the buyer down, but the agent insisted that according to state law he had to present the offer. Your agent explained the offer was insulting and he'd already written rejected across the acceptance/counter offer box and page 33! He ask you to initial it.
Offended at being offered only $195,000.00 you reject the offer! Or possibly counter at full list price.
You just became a real estate speculator!
Broke with your savings gone, hanging on by your fingertips you just invested in speculative real estate, advised by the least experience real estate agent you know!Truly, when you reject an offer it's the same as buying your house today with the hope of selling it for a profit in the near future!
A more experienced agent would likely have put it to you just that way. Today's real estate speculator is more likely to speculating on his own home and more likely to lose money than at any time in our history. Like most losers the cause is two fold, personal ignorance and poor advice!
I'm not suggesting that all low offers be accepted, but all offers should be considered not rejected out of hand! When you reject an offer even a low one from a willing and capable buyer you are speculating. You become The Accidental Investor Today's Real Estate Speculator!
Can you afford short term investments? Have you ever heard an old saying about "a bird in hand being worth...?"
Aces And Eights Just A Friendly Game Of Cards Real estate is just like a friendly game of cards once there is money on the table!
I read a blog that confused buyer's and seller's civility and good manors with anti-adversarial negotiating. Nothing could be further from the truth! Buyers and Sellers and their fiduciary agents start out adversarial! The seller wants every possible dollar out of his home and the buyer wants the home for the lowest possible price! These diametrically opposed goals are the bases of conflict, they place the opponents in an adversarial relationship!
Adversarial doesn't necessarily mean combative!
A victim of to many TV episodes of "Law and Order" shows and a post Roddy "Can't we all just get along?" King legal farce the blogger purported that buying and selling real estate is not adversarial. Real estate is adversarial, like a friendly game of poker! Like poker we play with our friends and associate and win, lose, or draw we can have a good time if we remain polite, honest and on our best behavior while trying for all the money on the table for our fiduciary.Convoking all fiduciary agents like it or not the object of the game is to win! Like cards mind your manners, stick to the truth, don't insult the opponent, compromise and give when you can, but keep in mind the goal is to win for yourself and your client! Understand! Your winning doesn't mean the other guy has to lose! Your opponent will fold and wait for the next hand if he doesn't see how your deal will let him win, at least better than the available alternatives!
When I opened my first two real estate firms after three years in real estate, I had the great pleasure and honor to share office space with my partner a lawyer and our landlord another attorney. I learned a lot, most importantly that good attorneys practice win-win, normally: WIN-win!
Act like a TV Criminal Laywer and you may find yourself holding Aces and Eights!
It's Veterans Day. Have you thanked a Veteran yet?
Least we forget Veterans didn't make war they fought them. Wars have political motives, some noble many less so. Veterans server out of love for there fellow man, nothing less and there is nothing more. No higher calling!
That the rights to Life, Liberty, and the Pursuit of Happiness may be self evident, but you have them because the Veterans love you, loved mankind so much that they fought and often died to win those rights for you!
There is no greater complement no greater honor than to have it said that you are always faithful!
Some of us were blessed we learned fidelity at home, from our Parents and Grand Parents. Some of us were honored we learned or expander our faith in the USMC, The United States Marine Corps. Semper Fidelis is a calling, a way of life, it's a religion unto itself. Semper Fidelis the tradition of the Marines is the highest and most difficult of life's callings, it demands self sacrifice, it requires putting what's right ahead of what's convenient or self serving. In the case of Marines it can mean putting what's right a head of your own life.
Happy Birthday Marine Corps! Semper Fidelis 234 Years Of Tradition 234 Years Of Service!
My feelings have been stated allot better than I ever could in the Hymn and Prayer below.
The Marines' Hymn
From the halls of Montezuma, to the shores of Tripoli,
We fight our country's battles in the air, on land and sea.
First to fight for right and freedom, and to keep our honor clean;
We are proud to claim the title of United States Marine.
Our Flag's unfurled to every breeze from dawn to setting sun.
We have fought in every clime and place, where we could take a gun.
In the snow of far off northern lands and in sunny tropic scenes, You will find us always on the job, the United States Marines.
Here's health to you and to our Corps, which we are proud to serve.
In many a strife we've fought for life and never lost our nerve.
If the Army and the Navy ever look on heaven's scenes,
they will find the streets are guarded by United States Marines.
The Marines' Prayer
Almighty Father, whose command is over all and whose love never fails, make me aware of Thy presence and obedient to Thy will. Keep me true to my best self, guarding me against dishonesty in purpose in deed and helping me to live so that I can face my fellow Marines, my loved ones and Thee without shame or fear. Protect my family. Give me the will to do the work of a Marine and to accept my share of responsibilities with vigor and enthusiasm. Grant me the courage to be proficient in my daily performance. Keep me loyal and faithful to my superiors and to the duties my country and the Marine Corps have entrusted to me. Make me considerate of those committed to my leadership. Help me to wear my uniform with dignity, and let it remind me daily of the traditions which I must uphold. If I am inclined to doubt; steady my faith; if I am tempted, make me strong to resist; if I should miss the mark, give me courage to try again. Guide me with the light of truth and grant me wisdom by which I may understand the answer to my prayer. Amen.
Semper Fi
is the same as during the last crisis and the ones before it. Has the success of most of the last two decades blocked our collective memory of previous real estate and economic recessions?
I read a blog from a NY or NJ broker complaining that he knew 208 real estate offices that have recently closed, because of the bubble bursting. Well it sounds terrible, but is it? Brokerages like all small business' come and go routinely. Depending on the market area this may not have been unusual, he didn't say. It's very common for good to great salesmen to open their own office and fail simply because being the broker is different than being the salesman! Sales people, very good salesmen are often subject to the "Peter Principal" promotion until they reach their level of incompetence.
There is one basic key to success in a changing market, you need a few stupid agents!
People to dumb to know it can't be done!
People so stupid to realize that displaced homeowners and evicted tenants still have to live some where!
People so dumb that when told "It can't be done" they respond "why not?"
People so dumb they believe "There is always more than one way!"
People so dumb they believe they can do things you can't!
People so dumb they don't know when to quit.
People so dumb they don't understand failure!
People so dumb they succeed on tenacity and attitude when their smarter associate accept failure gracefully.
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E-Mail Me at wja@reii.org The Real Estate Investment Institute, publishers, speakers, teachers, hands on & long distance consulting. 39 years expe
I've been in lending and real estate going on 39 years. My fourth book, Get The Money / A Consumers Guide To A Successful Mortgage Application" is to share that experience with the consumer. By understanding the mortgage loan application, and process, hopefully they won't feel like an innocent prisoner standing before a Judge.
There are things in this text that you are not going to agree with! Things that you're going to shout: "That's not right!" "Not fair!" "That makes no sense!" If you're into social reform great, but this a book for people that want/need a mortgage! You can either be a social reformer or a home owner! Take your choice! In real estate and lending we have our own Golden Rule.
"He with the gold rules!" To Get The Money, give them what they ask for!
I've been in lending and real estate since 1969, but lately I mostly write and teach real estate investment..
Mortgage lending and borrowing, real estate, financing, sales, investing,, SFR, and Apartments.. "Get The Money / A Consumers Guide To a Successful Mortgage Application" is a guide for consumers helping take the mystery out of applying for a mortgage. "Get The Money / A Consumers Guide To a Successful Mortgage Application" dispels that feeling of standing in judgement. "Flipping For Fun and Profit" The art of buying low and selling hig quickly! "A Bakers Dozen / A Real Estate Anthology" I, III, II, IV. 
Do you have any good testimonials that clients have provided you in the past? Be sure to add them here.
Mortgage lending and borrowing, real estate, financing, sales, investing,, SFR, and Apartments..
I'm the author of "One House At A Time / Finding And Buying Single Family Rentals" a book for new real estate investors and burnt out victims of TV Real Estate Gurus. "One House At A Time / Finding And Buying Single Family Rentals" is also ideal for people who though they couldn't own their own home, everyone can own a home.
"Get The Money / A Consumers Guide To a Successful Mortgage Application" is a guide for consumers helping take the mystery out of applying for a mortgage. "Get The Money / A Consumers Guide To a Successful Mortgage Application" dispels that feeling of standing in judgement.
"Flipping For Fun and Profit" The art of buying low and selling hig quickly!
"A Bakers Dozen / A Real Estate Anthology" I, III, II, IV. I met Bill Archambault in 2002, which was three years too late (more on that later). I was just hired as Operations Manager at a new mortgage broker, called Custom Home Loans. I had no Mortgage Industry experience. My background included similar positions at start-ups and nearly start-ups in the Semiconductor Brokerage and Design Automation oftware Industries. Because I was so new to the Mortgage Industry, I read books and periodicals, but mostly I asked questions. One of my favorite sources of information was Bill Archambault (this book's author). I liked speaking with him because he had worked in this industry for decades and was still enthusiastic about it. He was excited to talk and I was happy to listen about HUD subsidized home developments he had built in the Midwest and about how we can help clients build wealth through Real Estate and so forth. His stories were
easier to understand than books with Nevada Revised Statutes, legal
definitions and case law. And it was even more interesting when
contrasting it with HUD periodicals and rulings.
I met Bill Archambault in 2002, which was three years late. On February 22, 1996, I met my wife, Ana Maria, while visiting Las Vegas. I instantly fell head over heals for her and dated her for a few months back and forth while I lived in Orange County, CA. In June, I moved to Las Vegas to be with her (everyone say, "ah"). We were married the following June and our son, Hunter, was born in February of 1999. We were living in a nice, but small home that my wife had purchased before
we were married. With my income added to the family budget, I felt we could afford and upgrade. I also wanted to have a house that I felt was "our" house, plus we wanted a house with a pool. So, we started looking for a new home. One night, my wife put our baby, Hunter, in the car to try to get him to sleep. When she was driving around, she saw a home with a "For Sale by Owner" sign in the yard. My wife knocked on
the door and the owners showed her the house. She instantly liked it and we made an offer for the home. Our existing home was listed with a Realtor and we asked a friend for a referral to a Loan Officer. Here is where our beautiful story turns into a financial nightmare.
It should be noted that in 1999 all I "knew" about the Mortgage Industry was that you put 20%, so you don't pay PMI and you do a 15 year fixed mortgage, if possible, so you can save on interest. The home we sold had a payment (including principal, interest, taxes and insurance or
PITI) of $888 fixed for 30 years as a primary residence loan at about 7% interest and she had lived in it for about 3 years. Rents for home like this were about $1,100 per month, so it would have been a great rental, but I thought we needed 20% down for the new home. Our Realtor didn't tell us, don't sell the home. That would have meant she would have missed out on $9,000 commission for selling it. Our Loan Officer didn't
advise us how we could finance the new home with zero down and still have an affordable payment. We asked for a 30 year fixed loan with 20% down and that's what he gave us. Looking back, we should still own that home. Had we kept it, we would now owe $100,000 on a home worth nearly $400,000. A $300,000 mistake that I could have avoided, had I met Bill
Archambault 3 years earlier. Timing is everything and knowledge is powerful, I am a living example.
Best regards,
Brent A. Wood
Chief Operating Officer
Custom Home Loans
"You are the Harvey Mackay of foreclosure real estate...now I fell....well...kind of...shark-proof " Brian Brady
Billl - awesome... That is one of the best blog posts that I have seen on the Rain - thanks!! there should be a Hall Of FAME board - that would be on it.
Kate Bourland 8-3-07
"Hello Jason, Bill Archambault here."
It may not seem like a big deal to you folks, but when I heard that, I cringed. You see, to me, that guy is to Mortgage Lending as Babe Ruth is to baseball.
by Jason Sardi on 08/07/2007
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