Creates aWinning Combination We paid her $10 up front and took over the mortgage, which left plenty of room in our operating budget for the repairs and other expenses that would be needed to get the property rented out again. It’s quite typical that our sellers in these transactions see us as an answer to a nightmare. We did a deal recently with a homeowner who was seven days from walking away from his home and letting it go to foreclo- sure. Because we bought that house, he does not have a foreclosure on his credit his- tory and his neighborhood does not have a blighted house sitting vacant. Instead, there is a well-maintained house, our timely payments are repairing his credit, and he was able to move with his family and start over. •
zation. According to KTBS, the program has raised more than $400 million. The home values and sizes vary by market, but appear to be determined largely by median values rather than opulent extremes. In Boise, Idaho, for example, the St. Jude Dream Home is a three- bedroom/2.5-bath house worth an estimated $480,000, and in Denver, Colorado, the property is a four-bed- room/2.5-bath house worth an estimated $750,000. Tickets are always $100 each regardless of location. While many readers may think of the “dark side” of shows such as the now-shut- tered Extreme Makeover: Home Edition, which made headlines as much for the families it left proper- ty-tax-burdened or in fore- closure as for the gorgeous new mansions it showcased, when they think of home giveaway programs, suc- cessful home giveaways are a blessing, not a curse. Ef- fective, lasting programs vet their winners to make sure they have the wherewithal to handle home maintenance costs and property taxes before the winner is select- ed, unless the program is a raffle, of course. Also, since the gift of a home is a taxable one, the program should have a plan in place for assisting the recipient of the property with the immediate costs of their windfall (and also a plan for their own company to leverage any tax advantages that come with giving away inventory.) For Rumora, the reward was not just the publicity that surrounded his giveaway and rewarded not just his own
company, but the service pro- viders who volunteered their time to renovate the home as well, but also the pride that came with doing something he felt truly made a differ- ence. “There is no better mo- ment, no prouder moment,” he said of handing over the keys to the new homeowner, who said that he, his younger siblings, and his son had not had “a place to call home” since his mother died. This year, Rumora is at it again, giving away a mod- est two-bedroom, one-bath house in the Toledo area. The home is one of Rumo- ra’s many rehabs that he has underway in the area, and he has promoted the giveaway by giving many guided “walkabouts” through the property as the renovations progress. In his most recent video, which made headlines in print as well as on television, Rumora highlighted the brand-new furnace, com- plete overhaul of the home’s plumbing and electrical sys- tems, and spacious backyard. “Of course, we’ll install all new appliances as well before we give it away,” he said. The giveaway was scheduled for just before Christmas, and anyone wishing to participate by submitting a video or vot- ing for a winner could do so via the company’s dedicated brokerage page. • > Continued from :: PG 85 Building the Best Network for 2018 ANOTHER YEAR, ANOTHER HOUSE
and ultimately give you greater opportunity for successful cam- paigns, increase brand aware- ness, and business growth. •
• A rising number of homeowners in this
OF THE BUSINESS CARDS AND CONTACT INFORMA- TION YOU HAVE COLLECTED Which contacts had an immediate connection? Whose objectives were similar to yours? Who had a business that would work well in conjunc- tion with your own? These are the people you should work to build a relationship with. Call them and get to know them over coffee or a meal. Don’t focus on a business transaction. Simply focus on getting to know them better. During this phase, do every- thing you can to help the peo- ple on your list. Be the go-to person for them that you hope they will become for you. PHASE THREE MAINTAIN YOUR REPUTATION AS AN INFORMATION SHARER AND HELPER The more you share infor- mation and provide insight and assistance, the more people will come to you. At this phase, you are well-connected. When you network, you establish yourself as an inves- tor, connect with people who could help you, learn more about investing, and so much more. Networking is one of the most important things you can do in order to get started right in real estate. • > Continued from :: PG 87 3 Guidelines for Effective Real Estate Investing than just an expense. If that investment is not structured in such a way as to yield returns, then you impede your ability to market your business effectively. Using this mindset will assist in making all marketing decisions
damage you have.
> Continued from :: PG 33 ADangerous Assumption about Your Real Estate Assets protection structures in the state where they invest. That is not true, and can be a costly error. Broadley noted that in Utah, for example, register- ing business structures costs less than half of what it does in many other states, and the laws are more inves- tor-friendly there as well. “It’s vitally important to work with attorneys who understand how to assess your unique situation, create a blueprint, establish a system, and then manage and maintain it,” he said. • > Continued from :: PG 37 3 Best Practices to Maximize “Methods are many, principles are few. Methods change often, principles never do.” In 2018, commit to the principle of building your winning team with disciplined insight and understanding and keep those standards in place. Just be sure to use whatever methods or assessment tools work best for you and your business. • > Continued from :: PG 39 Good Deals in Hot Markets are Getting Old, Literally • Investors and sellers are over-improving their high-end properties, then setting a price that is too high for market demand Your Team’s Productivity
Also bear in mind that there are areas located outside of a floodplain that may ex- perience flash flooding. If you live in an area that is suscep- tible to either named storms or flooding, work with your agent to ensure you have the appropriate coverage. FURTHER READING Read more about poten- tial exclusions on the ALPS website (www.affinitylps.com) and watch for Part 2 of our “It’s Not Covered” series to help clarify common insur- ance misconceptions and help you be proactive at preventing avoidable losses. As always, if you don’t understand an as- pect of your coverage, check with your agent. They should be happy to help you. •
high-end sector are de- ciding now is the time to sell, making that end of the market a little softer If you are working on a deal that you expect to sell for under $300,000, however, you can probably plan for shorter time on market because those properties are still apprais- ing reliably and are the most affordable in the area. • Threats to Your Rehab Budget Inspections by qualified contractors and inspectors will identify issues up-front to minimize surprises during rehab. No one, including your contractor, wants that! Issues with any one of the Big Five can run into thou- sands in repair costs that, if identified early, can be either be built into the budget and resulting projections about your return on investment (ROI) or lead to the decision to invest in a different prop- erty. The more informed you are as an investor, the more likely you are to meet or exceed your ROI objective for each property you decide to purchase and re-hab. • > Continued from :: PG 83 The Truth about “Home for the Holidays” Giveaways and raised $160,000 for the children’s hospital. This year, the program includes more than 30 homes and is one of the largest single fundraisers for the organi- > Continued from :: PG 41 The 5 Biggest
> Continued from :: PG 95 Clearing Up
Insurance Exclusion Confusion, Part 1 prevent heat from building up and help eliminate moisture that causes mold and other health concerns. POTENTIAL EXCLUSION #4 WATER INTRUSIONS FROM NAMED STORMS & FLOODS Both named storms and floods are insured under their own individual policies. Named Storm coverage pays for damages caused by the winds and wind-driven rain involved in a Tropical Storm or Hurricane. Any wind or rain damage caused by a “normal” storm is usual- ly already included in any property policy, but once the National Weather Service establishes a name for the storm, you will need to have Named Storm coverage to have protection against dam- age caused by that event. The insurance definition of Flood may be different than you’d expect. FEMA defines flood as a “general and temporary condition of partial or complete inunda- tion of two or more acres and two or more properties of normally dry land.” A flood may occur during heavy rains or when the ground is over-saturated with water, but a sewer-back up falls under its own coverage. A “flooded” basement may or may not be covered depend- ing upon the specific type of
> Continued from :: PG 106 ATricky Transaction
ADVERTISER INDEX
Affinity Loss Prevention Services
95 66
American Association of Private Lenders
Good Success
Investor Review: 6-7
Memphis Investment Properties National Real Estate Insurance Group Norada Real Estate Investments
2
Investor Review: 10-11 Investor Review: 2-3; 116 Investor Review: 12-13
The PIP Group
Private Money Lending Guide Real Property Management
115
13; Investor Review: 4-5 Investor Review: 14-15
Renters Warehouse
RentFax
107
Secure Pay One
3
Strategy Properties Streamline Funding
Investor Review: 8-9 Investor Review: 16
Think Realty Toward Wealth
6
104
PHASE TWO LOOK OVER ALL
112 | think realty magazine :: january 2018
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