Private Money

Don't be afraid of private money, or even hard money, if you are going to invest. You need to leverage your efforts, and in today's market, with so little opportunity to earn good returns on cash, many investors are looking for a SAFE way to do better on their nest egg. Note, I said "safe." If you are doing it right, you'll be interesting to private money investors simply because you understand their position and how to minimize their exposure. You'll want to be able to show them how you will protect their investment, and what their options would be if the plans didn't go as planned. If you are taking loan against a property you'll be rehabbing and reselling, you should not even meet with a private money lender until you've done your homework and have firm numbers on: purchase price, repair costs, and after market value. You'll need to make your presentation clear and easy to follow. And the terms a smart money source will be looking for will be a loan secured by a note and deed of trust which is recorded in the county where the property is located. We routinely fund our transactions with private money loans because we understand that taking care of our money people is good business. We pay a great interest rate and borrow with short term loans. We are in, and out, generally within four months. And, we keep our project calendar as full as we can manage so that when a private money lender approaches us, we can usually place their money quickly so that it starts making money for the money person and for us, right away.
~ Posted by NH

The "F-Word"

We've all heard it. Some of us have uttered it in flagrant moments. And regardless how we've invoked this word (or not), every one of us recognizes that there is a dirty, sleazy, undertone to it.

Not only are we using the word, but many of us are doing "it", too. It may be dirty. It could be inappropriate for discussion in polite company. It feels a bit like we're doing something sneaky, but at the same time, when we do it right, it feels SOOOO good!

That's right. I'm talking about "Flipping." So, why, then, are many of us dancing around the truth? Every successful real estate investor these days is flipping.

Here are my thoughts. Ten years ago, when the real estate market was so hot you had to wear oven mitts to be an investor, flipping became the new day-trading. Seriously. And, many"investors," frankly, never pput a dime into the properties they flipped because they only held them long enough to re-list them and close escrow. Really?

No wonder flipping became a bad word. Each iteration of 'flip' distanced the new owner from having any knowledge of the property, and thus lessened the likelihood that hidden issues would be disclosed to unsuspecting buyers.

While all of this sort of activity came to a crashing halt as this 'new economy' (as I like to refer to it) imposed limitations on flipping opportunities, still, the stigma of the concept of flipping properties remains.

In today's market, flipping, as it once was done, is simply not an option. Jeff and I like to refer to it as "Rehabbing" and to ourselves as "Residential Rehabilitation Experts." Truly, we are just that.

Think of it: we take an abandoned REO property in a neighborhood that is slowly reviving itself, and we go in and start at the sidewalk and work inwards until the entire property looks like a Martha Stewart magazine shot. We are not flipping. We have breathed new life into a home on a city block, where it was most needed.
~ Posted by NH

We are a bit slow getting this blog off the ground, but I wanted to let our followers know that our mission with this blog is to share and be transparent about the benefits, rewards, and even the headaches of being a real estate investor.

Here's one big "Super Secret Squirrel" tip: Be honest about your intentions. Always. In this biz, it's a small world. If you are great, and you make sure everybody wins, you will find that your past clients and customers will bring you more business. If you ever, ever, fail to keep your word or mis-lead a person who is doing business with you, you will most likely learn a hard lesson. We have seen this over and over with people who WE have considered partnering up with. And, note, by the way, that I said "considered."

We look forward to networking and sharing with all of our readers, and we welcome input, questions, etc.

We will HAPPILY respond to questions submitted to us either via this blog or by email.

Feel free to contact us any time: Investors@GSHomes.biz
~ Posted by JT