Tuesday, September 18, 2007
Atlanta Progressive News on Atlanta Housing Authority
After my recent posting regarding the Impact of Fraud & Foreclosures on Investors, I was contacted by Atlanta Progressive News. They have done numerous stories on the Atlanta Housing Authority and the current state of affairs with public housing, which you may find interesting as an investor. You can read the stories on their website -here is the link to the story done after our conversation http://www.atlantaprogressivenews.com/news/0228.html .
Thursday, September 13, 2007
Transform a Neighborhood
I’ve had this little idea for a while about a way that investors can unite to make a positive difference in lives, neighborhoods, communities and more and make money while doing so. The idea is called “Transform a Neighborhood”.
It started with my thinking, “Wouldn’t it be nice if someone spearheaded a project of getting investors together to go into a neighborhood that needs improvement where properties can be purchased inexpensively and a big positive impact can be made together?” I have thought that thought many times. Then one day it hit me that maybe I am the person to spearhead the initiative. Now with all of the mortgage fraud and foreclosures–especially in certain neighborhoods, I really see a need and an opportunity here.
It seems to me that investors are often “lone rangers”; and, I often wonder what would be possible if we were united. I see this as a project where investors would collectively mastermind the idea, recruit resources and collaboration from the city, county, police force, drug task force, corporate sponsors such as banks, and so forth. However, each investor would individually purchase their own property or properties within the neighborhood that is being transformed.
Thus far, I’ve created a file folder titled, “Transform a Neighborhood”, where I jot down notes and throw them in there, stuck a little sticky note on my dream board with “Transform a Neighborhood” written on it, and had a long conversation with one of my coaches about it. Now, I figure it’s time to take the next step, put it out there for exploration and ideas from other investors, like you, to see what’s possible when we unite. Emily Dickinson said, “I dwell in possibility.” Well, I do, too; and dwelling in possibility creates all sorts of amazing things! If you are interested in the possibilities surrounding this idea, you can get involved by posting your comments and or emailing me at nspivey@transformit.net .
It started with my thinking, “Wouldn’t it be nice if someone spearheaded a project of getting investors together to go into a neighborhood that needs improvement where properties can be purchased inexpensively and a big positive impact can be made together?” I have thought that thought many times. Then one day it hit me that maybe I am the person to spearhead the initiative. Now with all of the mortgage fraud and foreclosures–especially in certain neighborhoods, I really see a need and an opportunity here.
It seems to me that investors are often “lone rangers”; and, I often wonder what would be possible if we were united. I see this as a project where investors would collectively mastermind the idea, recruit resources and collaboration from the city, county, police force, drug task force, corporate sponsors such as banks, and so forth. However, each investor would individually purchase their own property or properties within the neighborhood that is being transformed.
Thus far, I’ve created a file folder titled, “Transform a Neighborhood”, where I jot down notes and throw them in there, stuck a little sticky note on my dream board with “Transform a Neighborhood” written on it, and had a long conversation with one of my coaches about it. Now, I figure it’s time to take the next step, put it out there for exploration and ideas from other investors, like you, to see what’s possible when we unite. Emily Dickinson said, “I dwell in possibility.” Well, I do, too; and dwelling in possibility creates all sorts of amazing things! If you are interested in the possibilities surrounding this idea, you can get involved by posting your comments and or emailing me at nspivey@transformit.net .
The Impact of Fraud & Foreclosures on Real Estate Investors
Fraud and foreclosures have a huge impact on investors. On one hand, foreclosures as a result of mortgage fraud and the sub prime fall out create huge opportunities for investors to buy at deep discounts. This is low hanging ripe fruit. On the other hand, the reality is that there are numerous negative ripple effects from fraud and foreclosures, which is causing the tightening of standards on investors and making it harder to do business. This is the rotten fruit; and it really stinks!
Certain zip codes have really been hit hard with fraud and foreclosures creating issues for neighborhoods and for real estate investors. The neighborhoods are sitting with vacant and boarded up houses. Normally, this would be great for some investors, who love to buy these types of properties; but the problem is that due to all of the fraud and issues around values of these properties, lenders do not want to lend in certain zip codes. Ethical quick turn investors and wholesalers sit with an inventory of properties in these areas with no means of their clients obtaining funding for them to move the inventory unless they take a loss. Neighborhoods with high vacancy rates and boarded up houses usually have issues with criminal activities such as break ins, theft, drugs and prostitution. How does this change when there are no funds available for these certain zip codes to begin repairing the problem?
Another big and growing issue is identity theft, which has an impact on landlords. With all of the identity theft, the big credit reporting agencies are now requiring tenant screening companies to perform a much more thorough inspection on any company or landlord who applies for tenant and credit screening services. The tenant screening company must now check your credit before providing services and perform an inspection of your office to ensure that you have the proper security measures around applicant’s credit information kept in your office. By the way this inspection is done at your expense.
Fraud and foreclosures displace tenants, causing agencies such as the Atlanta Housing Authority (formerly Section 8) to require more paperwork and thorough investigation of landlords. In addition to all the former requirements, now requirements include an authorization to release information regarding the mortgage on a property (to verify that the mortgage is good standing), proof of incorporation if you are incorporated and/or using a management company that is incorporated, and authorization to check your credit as a property owner. Although this is a reasonable effort to protect tenants, it seems a little invasive for landlords.
Legislation is another issue for investors. Unscrupulous investors using creative investing techniques in unethical ways are taking advantage of people. These people end up in court and the next thing you know, states are trying to outlaw the creative investing techniques all because they have been used in an unethical manner. This is unfortunate especially considering the fact that these same techniques are great when used properly.
For real estate investors, the ripple effects of fraud and foreclosure are long and wide. Although there are negative effects, there is also a very positive side and an opportunity. The key is in being prepared. Prepare your investing business for the rotten and the ripe fruit, the costs and the benefits of today’s real estate investing market. “Luck is what happens when preparation meets opportunity.” ~ Elmer Letterman
Certain zip codes have really been hit hard with fraud and foreclosures creating issues for neighborhoods and for real estate investors. The neighborhoods are sitting with vacant and boarded up houses. Normally, this would be great for some investors, who love to buy these types of properties; but the problem is that due to all of the fraud and issues around values of these properties, lenders do not want to lend in certain zip codes. Ethical quick turn investors and wholesalers sit with an inventory of properties in these areas with no means of their clients obtaining funding for them to move the inventory unless they take a loss. Neighborhoods with high vacancy rates and boarded up houses usually have issues with criminal activities such as break ins, theft, drugs and prostitution. How does this change when there are no funds available for these certain zip codes to begin repairing the problem?
Another big and growing issue is identity theft, which has an impact on landlords. With all of the identity theft, the big credit reporting agencies are now requiring tenant screening companies to perform a much more thorough inspection on any company or landlord who applies for tenant and credit screening services. The tenant screening company must now check your credit before providing services and perform an inspection of your office to ensure that you have the proper security measures around applicant’s credit information kept in your office. By the way this inspection is done at your expense.
Fraud and foreclosures displace tenants, causing agencies such as the Atlanta Housing Authority (formerly Section 8) to require more paperwork and thorough investigation of landlords. In addition to all the former requirements, now requirements include an authorization to release information regarding the mortgage on a property (to verify that the mortgage is good standing), proof of incorporation if you are incorporated and/or using a management company that is incorporated, and authorization to check your credit as a property owner. Although this is a reasonable effort to protect tenants, it seems a little invasive for landlords.
Legislation is another issue for investors. Unscrupulous investors using creative investing techniques in unethical ways are taking advantage of people. These people end up in court and the next thing you know, states are trying to outlaw the creative investing techniques all because they have been used in an unethical manner. This is unfortunate especially considering the fact that these same techniques are great when used properly.
For real estate investors, the ripple effects of fraud and foreclosure are long and wide. Although there are negative effects, there is also a very positive side and an opportunity. The key is in being prepared. Prepare your investing business for the rotten and the ripe fruit, the costs and the benefits of today’s real estate investing market. “Luck is what happens when preparation meets opportunity.” ~ Elmer Letterman
Wednesday, September 5, 2007
The Path of Perseverance
Perseverance-It is constant persistence in a course of action, purpose, or state, steadfast pursuit of an aim, tenacious assiduity or endeavor, continuance in a state of grace leading finally to a state of glory. ...miriams-well.org/Glossary/
I love the part of the definition that states, "continuance in a state of grace leading finally to a state of glory". Isn't that what we all want - to obtain a state of glory? A state where everything just works, the money is flowing and all is well!
Consider the path of perseverance, that path leading to glory. That path is typically not a winding path filled with greenery, chirping birds, waterfalls, and other things offering peace and serenity. That path is filled with uphill climbs, sharp curves and even falling boulders. However, it is managing this tough terrain and staying in action towards our purpose that makes us stronger and wiser leading us to that state of glory.
This morning, I had a coaching session with a client that I am most thrilled to work with. She is just one of the most persistent people that I've ever seen. The thing that I really love about her is how she looks at and uses each experience -good or bad - as a learning experience. She never wallows in "poor me", but bounces right back and says, "Okay, here's what I'll do differently next time to make this better." She has managed the real estate investing terrain so well and learned so much along the way.
In building her wholesale business, she comes across all kinds of motivated sellers - many who are other investors who have been taken by unethical investors. This week alone, she had examples of three different motivated sellers -other real estate investors who were needing to get out of their properties.
I love the part of the definition that states, "continuance in a state of grace leading finally to a state of glory". Isn't that what we all want - to obtain a state of glory? A state where everything just works, the money is flowing and all is well!
Consider the path of perseverance, that path leading to glory. That path is typically not a winding path filled with greenery, chirping birds, waterfalls, and other things offering peace and serenity. That path is filled with uphill climbs, sharp curves and even falling boulders. However, it is managing this tough terrain and staying in action towards our purpose that makes us stronger and wiser leading us to that state of glory.
This morning, I had a coaching session with a client that I am most thrilled to work with. She is just one of the most persistent people that I've ever seen. The thing that I really love about her is how she looks at and uses each experience -good or bad - as a learning experience. She never wallows in "poor me", but bounces right back and says, "Okay, here's what I'll do differently next time to make this better." She has managed the real estate investing terrain so well and learned so much along the way.
In building her wholesale business, she comes across all kinds of motivated sellers - many who are other investors who have been taken by unethical investors. This week alone, she had examples of three different motivated sellers -other real estate investors who were needing to get out of their properties.
- The seller lives in California and purchased a house in Atlanta site unseen for $180K (with a $180K appraisal) but unfortunately, the house is only worth $110K at best.
- The owner lives in Arizona and purchased a house site unseen that is in a terrible neighborhood, the ceiling is sagging among other issues and he owes more than the house is worth. Since he owes more than the house is worth, he wants to rent it and she is helping him get it rented -even that is a struggle with the area and condition of the house.
- Another investor is from New York and is about to go into foreclosure with 14 properties, many of which are vacant.
In negotiating a deal and helping her Arizona owner, she is learning about how much it takes to fix up and take care of property and also learning about dealing with tenants, contractors and people who promise to do things and then fall off the face of the earth.
I am so excited for her because on her path of perseverance, she has had the opportunity to learn so much and it has cost her very little. Yes, it has cost her time and aggravation; however, she has been spared getting into any major financial debacle in a deal. She is learning what is really going on in the market, as well as, how to avoid getting herself in to bad deals.
Part of the path of perseverance is the learning. Step away front the front and center seat at the stage where you will hear only the positive sides of investing and go into the field. Get on the path of perseverance -learn for yourself the truths, the ups and the downs, learn how to manage the terrain and in the process you will carve out a strategy that works for YOU not the strategy that worked for the guru. Really folks, that's what it's all about -what works for YOU! The only way to find that out -is to take action and start learning those real world lessons! The path of perseverance, although tough to navigate at times, will teach those lessons needed to take you to that state of glory!
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