Dear Readers,
Want some ideas of how to make money investing in real estate, without taking significant risk? Here's an example of an actual lease purchase I negotiated for a buyer a few years ago. This strategy can be used for Wenatchee real estate or in any market in the country. It's just a matter of finding where the opportunities are.
Home listed for sale at: $79,900
Negotiated a 2 year lease/purchase as follows:
* $2,000 cash deposit to sellers
* $495 per month (pays sellers mortgage, taxes, insurance)
* Seller retains ownership
* Buyer maintains control of the property, with right to sub-lease
Buyer (lessee) re-sold the property (within two weeks) on 1 year lease/purchase for: $84,900
* New buyer paid $3,000 non-refundable deposit. Do you see an immediate $1,000 profit?
* New buyer pays $750 per month for one year. Do you see $255 profit each month?
* New buyer is given $200 per month rent credit (only if they exercise the lease purchase). This rent credit helps the new buyer build their down payment, but cuts into the profit. Remember, though, you've got a $5,000 mark-up and making the $255 per month in the
meantime.
* Buyer was not able to get financing at the end of the lease period and I re-sold it again with a $4,000 deposit. The other terms were essentially the same. This buyer was not able to get financing at the end of the lease period either, so the buyer turned the property back to the seller (at the end of the 2 year period). In the meantime, the original buyer collected $7,000 in deposits (Paid $2,000 upfront) and collected a profit of $255 per month for 24 months ($6,120). $13,120 return on a $2,000 upfront investment. Not bad. And, the original seller has their property back, which is now worth more due to property value increases.
Do you get the jist? In a hot market like we are currently experiencing, good opportunities may be rare, but they're out there. I can also see some opportunities with buying into pre-foreclosure properties.
Some food for thought.
Carol
Monday, May 30, 2005
Sunday, May 29, 2005
Happy Memorial Day
Dear Readers,
As the daughter of a WWII veteran, I got curious about the history of the Memorial Day observance. I found this summary of the history of Memorial Day, and thought you might find it interesting too.
God bless our war veterans and God Bless our serving troops!
Have a happy and safe Memorial Day,
Carol
As the daughter of a WWII veteran, I got curious about the history of the Memorial Day observance. I found this summary of the history of Memorial Day, and thought you might find it interesting too.
God bless our war veterans and God Bless our serving troops!
Have a happy and safe Memorial Day,
Carol
Friday, May 27, 2005
Check Out My New Poll Feature
Dear Readers,
Scroll down the page and look for the new poll question feature on the lower left. Let me know if you have questions you'd like to know the answer to and maybe I can include them in a future poll.
Have a great day!
Carol
Scroll down the page and look for the new poll question feature on the lower left. Let me know if you have questions you'd like to know the answer to and maybe I can include them in a future poll.
Have a great day!
Carol
Thursday, May 26, 2005
Transferring Posts
Dear Readers,
I'm working on a new blog, and have transferred some of the posts from here to there. I don't want to double enter because I think the search engines don't like that. My new blog is:
http://www.CarolsWenatchee.com
Anyway, I'm going to change the focus of this blog more along the investment line.. investment ideas for the "little guy" (and gal, of course).
Cheers!
Carol
I'm working on a new blog, and have transferred some of the posts from here to there. I don't want to double enter because I think the search engines don't like that. My new blog is:
http://www.CarolsWenatchee.com
Anyway, I'm going to change the focus of this blog more along the investment line.. investment ideas for the "little guy" (and gal, of course).
Cheers!
Carol
Wednesday, May 25, 2005
Real Estate Investment Club
Dear Readers,
I've been talking, for a long time, about starting a real estate investment club. Everyone I've talked with thinks it's a great idea, but I just haven't taken the legal steps to get it organized. Would we need to limit it to Wenatchee real estate, or expand into other markets?
You've, no doubt, heard about the stock investment club craze of the 1990's... so I want to carry this over into the real estate arena. The idea is the same, several people put in a little bit of money each month to make investments.
I served as President of a Women's Stock Investment Club and am familiar with the concept and function. It's a little more complicated than a stock investment club because of the dollars involved. We'd have to figure out a way of calculating value on a month to month basis, especially if we accept members after the initial start-up. In our stock investment group, we had a cap on the number of members (20) and only accepted members once a year, if there was an opening. You could only discontinue membership, with notice, once a year. After being notified of an upcoming opening we would replace that member. The departing member would receive their accumulated value pay-out 3 months following their departure. Their membership would terminate December 31 and the pay-out would come March 31. New members join on January 1st.
It would be too complicated having members coming and going during the year... but a person could potentially sell their position in the club if they needed to liquidate fast. We never had this happen, but I think it should be alright, if the incoming member meets any other criteria for membership.
What could happen if we got 100 investors putting in just $25 per month? We'd have $2500 per month to invest. If those 100 could put in just $100 as start-up money, we'd have $10,000 seed money to start.
We'd probably have to start with some lease/purchase type contracts until we accumulated enough money to actually buy something... but there's money to be made there too, and less liability.
Just throwing it out there to see how much interest there is. If there's enough interest, then I can work out some of the details and get it going. I need your questions and feedback, so I can address all the issues that would go along with this kind of an undertaking.
Give it some thought...
Have a great day!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://TopPropertiesWenatchee.com
blog: http://CarolsWenatchee.com
blog: http://RealEstateSuccess.blogspot.com
e-mail: Carol@TopPropertiesWenatchee.com
I've been talking, for a long time, about starting a real estate investment club. Everyone I've talked with thinks it's a great idea, but I just haven't taken the legal steps to get it organized. Would we need to limit it to Wenatchee real estate, or expand into other markets?
You've, no doubt, heard about the stock investment club craze of the 1990's... so I want to carry this over into the real estate arena. The idea is the same, several people put in a little bit of money each month to make investments.
I served as President of a Women's Stock Investment Club and am familiar with the concept and function. It's a little more complicated than a stock investment club because of the dollars involved. We'd have to figure out a way of calculating value on a month to month basis, especially if we accept members after the initial start-up. In our stock investment group, we had a cap on the number of members (20) and only accepted members once a year, if there was an opening. You could only discontinue membership, with notice, once a year. After being notified of an upcoming opening we would replace that member. The departing member would receive their accumulated value pay-out 3 months following their departure. Their membership would terminate December 31 and the pay-out would come March 31. New members join on January 1st.
It would be too complicated having members coming and going during the year... but a person could potentially sell their position in the club if they needed to liquidate fast. We never had this happen, but I think it should be alright, if the incoming member meets any other criteria for membership.
What could happen if we got 100 investors putting in just $25 per month? We'd have $2500 per month to invest. If those 100 could put in just $100 as start-up money, we'd have $10,000 seed money to start.
We'd probably have to start with some lease/purchase type contracts until we accumulated enough money to actually buy something... but there's money to be made there too, and less liability.
Just throwing it out there to see how much interest there is. If there's enough interest, then I can work out some of the details and get it going. I need your questions and feedback, so I can address all the issues that would go along with this kind of an undertaking.
Give it some thought...
Have a great day!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://TopPropertiesWenatchee.com
blog: http://CarolsWenatchee.com
blog: http://RealEstateSuccess.blogspot.com
e-mail: Carol@TopPropertiesWenatchee.com
Thursday, May 19, 2005
Poopy Pop-ups & Spykillers!
Today I received some complaints of pop-ups showing up on my blog... and I was surprised and even more annoyed! I hate it when that happens. Somehow, when I added a "free" hit counter they added some html code to my template which allowed pop-ups without my knowledge.
Let me assure you, I hate pop-ups more than anyone and I would never intentionally add them to my site. If you do see pop-ups on my site, please let me know immediately and I will figure out how to get rid of them. Please let me know who the pop-ups are promoting, so I know what to look for in the html coding.
I, personally, have Spykiller pop-up blocker on my computer. It's free and has worked extremely well for me. Beware of "free" software, though because there could be a catch like I discovered with the free hit counter. I am very diligent about doing the Disk Clean, Defrag, and Virus Scan every single day. I also scan for, and remove, spyware regularly.
Thanks to everyone for reading my blog. I enjoy doing it and I want it to be interesting and useful! If anyone has any particular subject you'd like me to write about regarding Wenatchee real estate... or real estate in general, let me know.
Cheers!
Carol
Let me assure you, I hate pop-ups more than anyone and I would never intentionally add them to my site. If you do see pop-ups on my site, please let me know immediately and I will figure out how to get rid of them. Please let me know who the pop-ups are promoting, so I know what to look for in the html coding.
I, personally, have Spykiller pop-up blocker on my computer. It's free and has worked extremely well for me. Beware of "free" software, though because there could be a catch like I discovered with the free hit counter. I am very diligent about doing the Disk Clean, Defrag, and Virus Scan every single day. I also scan for, and remove, spyware regularly.
Thanks to everyone for reading my blog. I enjoy doing it and I want it to be interesting and useful! If anyone has any particular subject you'd like me to write about regarding Wenatchee real estate... or real estate in general, let me know.
Cheers!
Carol
Saturday, May 14, 2005
Wenatchee Real Estate Frenzy
Dear Readers,
Sales of Wenatchee real estate (new & existing homes and vacant land) were amazingly brisk throughout 2004. This trend shows no sign of slowdown in 2005. This surge in sales activity has created a tremendous demand. This huge demand has resulted in a massive increase in new construction activity. Home values have increased substantially but, fortunately, the flurry of new construction activity should help supply keep pace with demand, so our prices don't get totally out of control. There are new neighborhoods, literally, springing up all over. The surge in subdivision development has helped keep vacant lot prices fairly stable.
The new home construction activity has contributed to a recent Wenatchee Labor Summary report: In February 2005, the unemployment rate in Chelan and Douglas counties was 6.9 percent, one full percentage point less than the February 2004 figure of 7.9 percent . Agricultural jobs have decreased, which stands to reason since many of the orchard trees are being cut down to "plant" houses. To read more about that and our very diverse local economy, you can check out my "Apple Blossom" buzz post from May 4, 2005. This will help explain why, despite a decrease in agriculture job, the local economy is quite healthy.
Have a great day!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://TopPropertiesWenatchee.com
blog: http://RealEstateSuccess.blogspot.com
e-mail: Carol@TopPropertiesWenatchee.com
Sales of Wenatchee real estate (new & existing homes and vacant land) were amazingly brisk throughout 2004. This trend shows no sign of slowdown in 2005. This surge in sales activity has created a tremendous demand. This huge demand has resulted in a massive increase in new construction activity. Home values have increased substantially but, fortunately, the flurry of new construction activity should help supply keep pace with demand, so our prices don't get totally out of control. There are new neighborhoods, literally, springing up all over. The surge in subdivision development has helped keep vacant lot prices fairly stable.
The new home construction activity has contributed to a recent Wenatchee Labor Summary report: In February 2005, the unemployment rate in Chelan and Douglas counties was 6.9 percent, one full percentage point less than the February 2004 figure of 7.9 percent . Agricultural jobs have decreased, which stands to reason since many of the orchard trees are being cut down to "plant" houses. To read more about that and our very diverse local economy, you can check out my "Apple Blossom" buzz post from May 4, 2005. This will help explain why, despite a decrease in agriculture job, the local economy is quite healthy.
Have a great day!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://TopPropertiesWenatchee.com
blog: http://RealEstateSuccess.blogspot.com
e-mail: Carol@TopPropertiesWenatchee.com
Monday, May 09, 2005
Some blogs I watch
Dear Readers,
Since I began blogging a little over a month ago, I've been browsing the internet to see what other blogs are out there. There are some interesting ones on every imagineable subject, and one I would like to suggest you check out is: http://www.PFblog.com The "PF" is for "personal finance" and covers a very wide array of subjects. I have it coded into my MyYahoo account, so I can check it daily. I don't read it all, of course... but I like having it there to keep my consciousness on alert in regards to a variety of financial issues. I think when someone is involved in a specific industry such as mine (Wenatchee real estate) it's easy to get tunnel vision. Plus, it's good to look at things from a variety of perspectives. Anyway, just thought you might like to check it out.
Another blog I've been watching is http://www.AllThingsFinancial.com It's a little more "homey" than the PFblog... and you'll get a personal response if you post a comment to his blog.
Have a great week!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://TopPropertiesWenatchee.com
blog: http://RealEstateSuccess.blogspot.com
e-mail: Carol@TopPropertiesWenatchee.com
Since I began blogging a little over a month ago, I've been browsing the internet to see what other blogs are out there. There are some interesting ones on every imagineable subject, and one I would like to suggest you check out is: http://www.PFblog.com The "PF" is for "personal finance" and covers a very wide array of subjects. I have it coded into my MyYahoo account, so I can check it daily. I don't read it all, of course... but I like having it there to keep my consciousness on alert in regards to a variety of financial issues. I think when someone is involved in a specific industry such as mine (Wenatchee real estate) it's easy to get tunnel vision. Plus, it's good to look at things from a variety of perspectives. Anyway, just thought you might like to check it out.
Another blog I've been watching is http://www.AllThingsFinancial.com It's a little more "homey" than the PFblog... and you'll get a personal response if you post a comment to his blog.
Have a great week!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://TopPropertiesWenatchee.com
blog: http://RealEstateSuccess.blogspot.com
e-mail: Carol@TopPropertiesWenatchee.com
Friday, May 06, 2005
Mousse Au Chocolat and Azaleas
Max & Carol Williams - 20th Wedding Anniversary
With Mother's Day coming up Sunday, my husband came home yesterday afternoon bearing chocolates.... so my morning (today) started off right with a cup of Irish Cream coffee and a "mousse au chocolat". Today he came home bearing an Azalea tree that now adorns the dining table and will eventually be planted outside. Do you suppose tomorrow there will be another surprise? I'm not a "real" mother, but I am the step-mother to his five children... all of whom like me, with the possible temporary exception of the youngest (now 29). He's not too thrilled with my theory that he should be self sufficient at this point in his life. The cash machine is closed. I've discovered that's what step-mothers are for... being mean when the Dad doesn't want to (even though the Dad agrees with the mean step-mother). It's a burden we bear.
Our oldest son (my step-son) and his daughter are coming up from Yakima later this afternoon, in time to go to East Wenatchee for the Classy Chassis Parade at 6:30. There will be about 200 classic cars on display. This is the son who recently returned from a year in Iraq. He just bought back his 1957 Chevy station wagon to restore, so he is into car restoration like his Dad.
Tomorrow morning we'll go to the Kiwanis Pancake breakfast in the park where the floats are staged and judged prior to the Grand Parade. By going to the pancake breakfast and walking around while the floats are getting organized, we get to talk with the royalty and chaperones from all over the state.
Well... that's about it for now.
Cheers!
Carol
Realtor, ABR, e-PRO, GRI, RECS, REI
Serving all of Washington State
Specializing in Wenatchee & Surrounding Areas
Phone: 509-670-7840 * Fax: 419-818-4009
website: http://toppropertieswenatchee.com/
blog: http://realestatesuccess.blogspot.com/
e-mail: Carol@TopPropertiesWenatchee.com
Subscribe to:
Posts (Atom)
