Monday, June 17, 2013

This Week's Special Guest Speaker Will Be Yours Truly

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Octavia Johnson was going to be the speaker for this week but she had a death in the family and we can't line someone up that quick.

Soooo…… I've been thinking about what to talk about as being the speaker is squarely in my lap. It is very important as a real estate investor to be able to do title searches. If you are buying property and putting offers in directly to the homeowner or through a Realtor you will be best off doing your own preliminary title search so you don't end up getting charged for one and finding out that there are so many title issues with the property that you can't purchase it.  If you can do your own search you will be relatively sure that you will or will not be able to  purchase the property so you won't end up with a surprise bill for a property that you are not going to be able to buy. And Yes, even on offers with a Realtor or a Wholesaler if they aren't doing them. It happened to me…

I decided this week would be a good week to teach everyone how to do a title search. I have many people who contact me asking how to do it so I'll teach everyone generally how to do one in one big swoop.  Due to lack of time for preparation and my inability to do so due to the last minute time frame and the fact that I have to work, there will be no real presentation materials, etc.  Just me and my mouth. The computers you use to do so are in the court house and you can't link to them through the internet without paying about $600 dollars. So I will just walk through it and give you the information you need to be able to do it on your own.

I am no expert at title searches. I have been taught by professional title search people from sitting in that government office next to them and asking questions on the property I am looking up. And I keep asking until they jokingly tell me they are going to have to start charging me.... Then I move to another seat and start asking someone else.

What I'm talking about is giving you the ability to do a decent search where you will feel reasonably good about whether or not you should buy it and continue with a professional title search which will cost you $.

Richard Varney From Floyd & Varney LLC

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Our Guest Speaker Last Week Was Richard Varney from Floyd & Varney LLC.

Our friend Richard did an excellent job presenting his views on what point in the market we are in and demonstrated his superior skills as an appraiser. I got the impression Richard feels by statistical information that we are at the bottom and on the way back up. He showed some interesting information to demonstrate this.

I like to  be a pessimist in this particular situation and say we have 5 more years of problems. I agree there is pent up demand in the market and the economy has resolved itself but jobs still haven't and it takes a healthy economy all the way around to get back into full swing.


My bets will remain on a stagnant housing recovery in Roanoke Virginia and suggest continuing to purchase buy and hold property. Still a little early for jumping into changing modes to flipping which is where the money will be in a good housing recovery.

The federal government has been talking about jumping into another plan where people who can't afford to buy houses will be able to purchase them. A temporary fix to the problem. If that happens sophisticated real estate investors will jump into flipping for a while and get out quick before the bottom drops out again because it clearly will.

There is a real common since solution to the problem that some politicians have with every single person not being able to own their own property. Building codes require living space to be unnecessarily large. Back the codes down so people can live in 100 square foot apartments. Mini camper style bathroom, bedroom, living room and kitchen all in the same room. Kind of like a hotel room in New York City.

Building costs with profit at 100 per square foot, a 100 square foot apartment would cost about 10,000. A 30 year note with 0 down at 4% interest would have a monthly mortgage payment around 50 bucks.

Revising building codes is a solution to everyone experiencing the American Dream of owning their own house, if that is what the American Dream is. But everyone has their own version of what the American Dream is. Some peoples dream would be to do drugs so they would still end up losing their property to foreclosure because that drug will surpass the desire to make their mortgage payments. Some are straight up irresponsible and would rather buy a new big screen TV or go on vacation than pay their mortgage as they do with rent. ETC.

This is not anything that I am proposing. Just something to think about...


 

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