Buying low and selling high is the mantra of real estate investors.  What happens between the beginning point and the ending point can be the determining factor of if a rehab project is successful.  The project may be a rehab to re sell, or a rental.

Sometimes the problem lies in underestimating needed repairs, and the cost involved to make those repairs.  But, many times the problem lies in the contractor not doing what he promised to do.  The main areas this falls into are:  1.  Going over agreed costs. 2.  Lack of quality work.  3.  Not finishing on deadline. 

John Adams the most trusted voice in Atlanta real estate, says that even after 30 years in the real estate investing business, the weakest link remains to be the contractor. (not direct quote)

In some cases the contractor quits showing up for the job, or walks off the job with it being incomplete.

Not all contractors are like this, but it seems to be a recurring problem in the industry.  If you have a good one, treat them like GOLD!

I have recently read three different articles about contractors, with three different takes.  Check them out.

The Contractor Success Triangle: Real Estate Renovations by W. Christenson

Fix and Flip Tips: Avoid Contractor Crumbling Communications by Steve Cook

How to Speak the Secret Language of Contractors by Paul Ejasion

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Do you have a positive or negative experience with contractors?  Please leave a comment below.

His mother was telling my 7 year old grandson that it would be better to put his $15.00 accumulated in his piggy bank into his savings account.  He asked if he would ever get it back.  She told him he could and then explained how he would get interest that would add more money to what he had.

I chimed in that he needs to save now, because when he is 16 he will want to buy a car.  He says, "CAR"??

I'm thinking he is going to say he wants to buy a toy or something.  But, he said, "Not a car!  I'm going to buy a house!"

Am I training him right or what!

Here is a link to a story that Ray Como wrote about his son.


http://www.reidepot.com/articles/Como/Eight.html

If you already are a real estate investor, or if you are interested in learning about real estate investing, the best place to start is with a real estate investor association.  Most anywhere you live there is a group of real estate investors that meet together regularly to network, share friendships, and learn more about real estate investing.  Most groups have speakers come in to talk about their specialty.  This is the main feature of most meetings, and something I enjoy.  The other huge benefit is to get to know other investors.  It is fun to share what has been going on in your investing life, and to be able to ask questions to help you with any tough situations.  If you are not already a member of an RE Investing group, find one in your area, and join.

The group that I am a member of is called North Metro Real Estate Investing Association. Our July meeting is this Thursday, July 3.  Please click on the name in the first sentence of this paragraph to find out more about this month's meeting.

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When I first heard about Twitter, I groaned....another site for tweens and teens.  My second thought was, "sounds like stalking to me."  Well...I was wrong.  Although there may be the young ones on there, you can choose categories to connect with.  The category for real estate investing is in business.  So the ones I am connected with so far are in that category.  But, you can be connected with anyone you want.

On Twitter, it's called following when you choose those you want to follow.  You can choose them according to their bio of interests.  Then others can choose to follow you.
The question given to you is:  "What are you doing now?"  You answer with 147 characters or less.  Such as the answer now would be:  I am writing a new post for my blog:  http://www.RealEstateInvestorGirl.com. This is called a Tweet.  When they read this, it is possible that the ones reading this will click over to see the latest post. 

How can you use this in real estate investing?  Let's say that over time you have 1,000 people that are following you.  If you have a property to rent or sell all you have to do is write something like this: "Just finished posting an ad for a 3bd. 2ba. rental $900mo.Marietta,Ga.then list the URL." First, the 1,000 people will see it.  Then others on Twitter that just happen across it.  Some of the 1,000 will be in areas away from your locale.  Some will not need the rental.  But some could need it.  Others that don't need it will tell someone else that may need it.  How much did this cost you?  Nothing.  Could you rent or sell property this way?  Yes.

You might have noticed the section to the left that says Twitter update.  In that section are my latest updates.  Right above that is this link:  http://www.twitter.com/kathcouch That is how you can find me on Twitter, and follow me.  Go ahead, sign up at http://www.twitter.com then find me and start following.  You might find out that I do more than writing Real Estate Investor Girl posts.

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       Don't let this equity walk away.  I have just made my first Squidoo lens.  The title of this lens is:  Short Sale Opportunity:  Cash Ready Buyers Save 10's of thousands  Click on this title to see the lens, and find out about the opportunity.  Do it sooner rather than later!  Today, June 29, 2008 is your last chance!

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Comments are Welcome.

Shortly after I started blogging I wrote an article entitled:  DIY: Ceramic Tiling With Professional Results.  Many people seem to find Real Estate Investor Girl, by typing in the search something they are wondering about tiling.  I have often wondered why so many people come to my blog by searching for an answer for a tiling problem.  I guess I am slow to figure things out, but it is because that article is on the first page of Google search.  The similar article with the title of How To Tile A Kitchen Floor which I wrote and submitted to the writer’s site Helium, was the second listing on the first page of Google.

The purpose of this article though isn’t to talk about my success with my other articles, but is to answer some of the questions about tiling that the search phrases allude to. 

1.        Can you use thinset to level floors?  Usually to level floors before putting thinset down and tiling, you would use a leveling compound.  There are directions on the bag for use, and it self levels.  Times you could use thinset is when there is just a small depression in a concrete floor, and the rest of the floor is level.  Also, if you are using two different tiles, and one is slightly thinner than the other, extra thinset could be used to build up where the tile will be placed in order to make the tiles level.

2.        Do you have to use backer board when tiling the floor?  There is only one time that I know of that you don’t have to use backer board.  That is when you are tiling directly on to concrete.  Like on a basement floor or in the house that has exposed slab.  Sometimes you hear someone say you don’t have to use backer board when tiling over vinyl flooring, but I disagree.  You will not get good adhesion if you tile directly onto the vinyl.

3.       What do you do if you cut the door jam too short when tiling?  If the door jam is a painted surface there are a couple ways to fix that.  If the piece you cut out is available, trim a smaller slice from it, and fill in the extra space.  Glue it in place.  For concealing the line between the two pieces of wood, use wood filler, or bondo.  Smear it over the crack area, filling it to excess.  After it dries, sand it smooth and touch up with paint.  If you don’t have the wood piece, then use all wood filler or bondo to fill the space.  Mold it with your hands to the shape, then when dry, sand to shape with sandpaper.  If you have a stained door jam you can do it the same way, but it will take more time to try to bring the filler to match the stain.

I hope this helps all you DIY’ers that want a nice tile floor but do not want to pay $5.00 and more per square foot for installation.

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Chairman of the Federal Reserve, Ben Bernanke, left interest rates as is.  This is the first time in 10 months that the interest rate has not been cut.  Fears of possible recession and rising inflation worries was the stated reason.  Some analyst feel the interest rate will start rising as soon as August, and others fell it won't happen until after the November election.

Some of us do remember the double digit interest rates of the 1970's and early 80's. We need to pray that won't happen again.

However, if you are in a position to buy real estate either as an investment, or as a personal residence, now is the time to act.

If you would like to read more about this, see this article:  http://news.yahoo.com/s/ap/20080625/ap_on_bi_ge/fed_interest_rates

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The Senate Banking Committee today just passed , the foreclosure rescue bill.  The test vote was 83-3.  The bill is set to have a final vote by the senate later today.  There are still areas that may need working on, and Pres. Bush could veto.
My take on what the bill contains is:

1. A requirement for the lender to reduce the loan by 10% of what is the current market value.
2. That it is only available for adjustable mortgages that have reset and the borrower is not able to keep up, but previously the payments were on time.
3. There are equity share requirements when the property is sold in the future.  Starting with all equity paid to the lender, and a gradual decrease of equity paid as time goes on.
4. Also, there is a tax credit for first time home buyers up to $8,000.  I don't know details on this.

There is also planned a revamp of Freddie Mac and Fannie Mae.  Those two agencies would be insuring the new loans.  The bill is not suppose to impact the US taxpayer.

I welcome your insight and comments on this.
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A couple contacted my business partner and I, because they are moving to the Atlanta area.  Realizing that they needed help, I decided to put out this lead.  This could be a good deal, but you will be doing the transaction without my involvement.  You need to do your own due diligence, and be prepared with the funds.

It is a split foyer home just north of Chattanooga at Harrison Bay.  It is 3 bedroom, 2 bath.  The main level has a large living room, kitchen, and dining room.  Down is a large laundry room, and two bonus rooms.  It has a 2 car garage, and a fenced in back yard.  When they purchased the home in 2004, it was valued at $160,000.  They owe $114,000 and will sell for what is owed.  They are in Chapter 13, and behind on payments.  The home is not listed. 

There is a $150 referral fee. To get more information on this home contact me at the email button to the right.

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“Boy I Really Told Them”

So many times I have heard the above statement made in referencing how someone straightened out a bank employee when the employee was the bearer of news that the bank did not agree with the investor. I will be the first to agree that sometimes when you try to negotiate a short sale with a bank, good reasoning on their part often seems to be lacking.

What do you really think you will gain by telling off a bank employee?  All it will do is raise your blood pressure, and heart rate, and cause the employee to be more determined not to work with you.  Your anger is a trap.  It is the best way to put a permanent stall on negotiations.  Remember the old adage:  “You can attract more flies with honey, than with vinegar.”

Persistence is something that is needed in short sale negotiations.  Sometimes you do have to talk to someone else up the chain.  Or you may have to resubmit the offer again.  Just remember when you feel your anger rising, it might be better just to say, I’ll call you back, rather that explode.  Yes, negotiate, but don’t bully.

The person you are talking to is just paid by the lending institute, and most likely is not the decision maker.  So, keep your cool, and make them want to work with you, not avoid you.