Friday, April 29, 2011

Dead Raccoon- Don't Watch This If You Have a Weak Stomach

You know it's a tough rehab when dead animals start showing up. Take a look if you want to see one of the interesting places an animal can curl up and die.

By the way, this is transaction #13 of 52 in 2011.

Saturday, April 23, 2011

FREE Resource for Creative Real Estate Investing is a FREE website to learn about creative real estate investing. It is one of Peter Forunato's recommended sites.

Check it out if you are at all interested in investing in real estate. There is a TON of good information.

Thursday, April 21, 2011

Transaction #15 of 52 in 2011- Duplex Contract Sale

Sometimes we sell properties on contract to people who want to own a home but cannot get credit from a bank. We sell it to them and then give them 2-4 years to get their credit put into shape and re-finance with traditional financing.

For this transaction, we sold a great duplex on contract to a couple new to real estate investing but have no cash or real estate investing experience. What they do have is GREAT credit. So we sold them the property with the agreement that they will take out immediate financing from a local credit union that will do a 50% LTV (loan to value) home equity line of credit (HELOC.) We will carry-back the balance of the sale price as a note.

Since the buyer has no property management experience we brought in The Equity Growth Group, a property management company that has experience with multi-family properties. They will master lease the property and sub-lease it to tenants.

This is a real win-win-win. Clear Day Capital gets a full price sale that gets us cashed out and leaves us with a note that gives us monthly income. The new investor couple gets monthly cash flow, property value growth, amortization of their loan, and deprecation tax benefits. The Equity Growth Groups receives the joy (and compensation) of management.

This type of a transaction really works great for a new real estate investors who have good credit. It protects them from a lot of the pitfalls of finding, rehabilitating, and managing the property. It gives them two experienced real estate investment companies to work with and learn from.

Are you a new investor or thinking about investing? Do you want to learn and reduce your risk? Then give me a call at 801.510.3566 and we'll talk some more about this transaction and what you want to accomplish with real estate investing.

Wednesday, April 13, 2011

Just For Fun- Matzo Man!

It's that time of year again! Time to celebrate Passover with friends and family. I am heading east with my family to be with my parents, brothers, sister and their families. Our "adopted" brother Bob and his wife Amie and son Ethan will be there as well.

So for all of you who can't celebrate with your family this year, here is a great way to celebrate: with the Matzo Man!


Tuesday, April 5, 2011

Video Blog of Transaction #14 of 52 in 2011- Before (After in a Month or So)

I asked on Facebook if people prefer video or written blog postings. The answers were mixed so I decided to do both! This is our transaction #14 of 52 in 2011:

We usually don't buy this kind of property, but we needed to salvage a loan that we did so we ended up owning this property at 2053 Adams in Ogden, UT. Drop buy and visit some time if you want to see a rehab in progress (April 5, 2011 until about May 1, 2011.)

It needs a new roof and we need to create a bedroom. Right now it is just a really big studio. We met a next door neighbor today and he had a huge smile on his face when we said "yes" to his question "Are you going to fix-up that place?" It has been vacant for at least four years. How do we know? It didn't have water for the last four years!

You can see why it was condemned for destruction by the city. It's ugly from the outside and there are no bedrooms on the inside! We will spend $18,000 - 20,000 on clean-up, fix-up, and curb appeal. We will have less than $50,000 total investment and a $700 a month rent by the time we are done.

Come back in about 3-4 weeks and I'll have the "after" video ready for viewing.