Once again there is a frenzy for new homes and people are camping out to get theirs. The median price for new homes in southern California jumped 19% in the last year to $401.New construction jumped 56%.
I have been in the real estate business since 1986 and would like to share some perspective with people who are new to the industry.
The real estate business is just like any new business. First you have to gain knowledge, set up a plan and then take action. This is not a get rich quick scheme. It takes time to build, just like any other business. If you were setting up any other business, you would know that in the first year, you are successful if you break even. Why do people think this business is any different? True, you could be making deals within a few months of starting, but it doesn’t always happen that way. If it doesn’t, most people give up.
I put this on my blog; my facebook and my email list because I think it’s so important.
Since I come from a family of attorneys, I am always worried about, “what if”. I try to look ahead so that I try to minimize any possibility of legal hassles. One bad deal can erase a bunch of good deals and can cause major damage. I always try to avoid trouble- especially when dealing with someone in foreclosure.
Every time you make an offer to a bank, be prepared to close. There is no assignment regardless of what some “guru” tells you. You can do a double close but it is risky and complicated. Your deposit is at risk unless you have someone who is willing to put up the deposit in the 2nd escrow before the inspection contingency expires. YOU CAN NOT ADD ANOTHER NAME TO THE CONTRACT OR CHANGE IT IN ANY WAY.
Here is an example of a property that was originally listed for a dopey amount by the bank and sat on the mls. It fell in and out of escrow several times (like most do) when you are dealing with REO’s …Continue reading