Posts Tagged ‘2-4 unit properties’

2-4 Unit REO Madness

Wednesday, April 28th, 2010

If your market is anything like mine here in Los Angeles or in many other parts of the country, it’s in the middle of 2-4 Unit REO Madness.  Now more than ever it’s time for you to take advantage of this market to secure your financial future and start building that passive annual income stream.  2-4 unit properties everywhere are being sold as Short Sales and REO’s at prices not seen since the early 2000’s.  And if you’re willing to venture into lower-income neighborhoods (what I call C & D’s), you can find properties in the 5.5 -7.0x GRM range, guaranteeing your client a 10%+ cash on cash return against today’s current financing.

Remember the Golden Rule is to make sure that properties debt cover even or better so that you have enough money after paying for taxes and expenses to cover the mortgage payment.  And the lower the GRM the greater the cash flow.  Be prepared for many properties in the $250,000 and less range to sell very quickly, over asking and in many cases ALL CASH.  The market is moving very quickly right now so make sure you are prepared to act quickly and visit properties within a day or two of them being listed on the market.

And once you’re lucky enough to have an offer accepted by a Seller on a Short Sale, be prepared to be patient.  The process can take 30-60 days or more and can be frustrating.  So continue looking for deals while you wait to hear from the Negotiator as to what the lender will do.  Don’t be surprised when they ask for more than you’ve offered and remember it’s a negotiation.  You’ll win some deals and some you’ll walk from.  It’s part of the ‘fun’ of dealing with Short Sales.  If you aren’t up for the waiting and back and forth steer clear of Short Sales and deal only with Foreclosures/REO’s and normal sales.  This will guarantee a smoother experience.

Importance of Education

Friday, September 25th, 2009

By Jon Swire

If you have previously purchased your first home or even started looking at income properties, I am sure you remember when it first closed. I certainly do. It was a great feeling to sign those documents and truly own my first property, but many investors also feel unsure of what they are doing in terms of a long-term investment strategy. After all, you don’t know what you don’t know.

The key to success in any business is education and planning. The first step is to learn as much about your subject matter as possible, which will provide you with confidence when doing current and future deals. In this case, it’s learning to use 2-4 unit properties to make successful investments to secure your financial future.

I’m a big believer in education and that’s one of the reasons I teach at UCLA Extension and around the country, training folks on 2-4 unit properties. It is also why I launched my program and have now built the tools that every investor—no matter how experienced—needs to succeed in real estate investing.

I’ve had the opportunity to work with and train thousands of investors and real estate agents over the past few years and the most consistent feedback I hear is that the training they received provided them with the confidence they needed to work with income producing investment property. Remember, knowledge is power and the perfect first step to securing your future is to gain the knowledge so you can make the best investment decisions possible.
In addition to books, DVDs, webinars, and financial models to analyze investments, I also offer one-on-one coaching to help investors effectively sort through their real estate investment opportunities. Click here for more information on this proven real estate investment training program.