Created with Sketch.
Tack Real Estate Podcast
16 minutes | Mar 8, 2019
Market Update Feb 2019 3-8-2019
Bubble Watch Market Update For February 2019
2 minutes | Mar 8, 2019
Intro to Reboot 3-8-2019
Tack Real Estate Podcast Intro. What’s new and what’s to come.
22 minutes | Feb 2, 2018
Danger Report- The Death of Real Estate Part 3 2-2-2018
Danger Report from the NAR, Part 3. What are the issues that will lead to the downfall and death of the real estate industry.
22 minutes | Jan 21, 2018
Danger Report-The Death of Real Estate Part 2 1-21-2018
Danger Report from the NAR, Part 2 of many. What are the issues that will lead to the downfall and death of the real estate industry.
24 minutes | Jan 12, 2018
Danger Report-The Death of Real Estate Part 1 1-12-2018
Danger Report from the NAR, Part 1 of many. What are the issues that will to the downfall and death of the real estate industry.
17 minutes | Aug 18, 2017
Lending Policies are Loosening. What Does That Mean For Real Estate
Bubble talk: Lending policies are loosening and non-mortgage default rates are increasing. What does this mean?
21 minutes | Aug 11, 2017
Due Diligence: Checking Permits
The importance of check permits. No permits could have big consequences.
7 minutes | Jul 21, 2017
Policy and Real Estate
How does foreign policy affect local real estate?
11 minutes | Jun 23, 2017
Due Diligence- Illegal Additions
Permits or No Permits? How to find out if an addition is illegal.
24 minutes | Jun 16, 2017
Buying a Home? Tips on Submitting Offers
Thinking of buying a home? Be prepared… What to do and know before submitting an offer and tips on submitting offers.
30 minutes | Jun 12, 2017
Home Inspections-What are the RED Flags and Expensive Repairs?
Home inspection RED FLAGS. In this episode, Bret discusses what to look out for when inspecting a home. Common problems and big ticket repairs.
22 minutes | May 27, 2017
Real Estate Industry & Glimps at May
An insiders look at the real estate industry and why volume is the biggest factor. Being a real estate agent isn’t all it’s cracked up to be.
7 minutes | May 13, 2017
The Myth about “As-is’ Property Listings
Just because the house is listed “as-is” doesn’t mean you can’t inspect and make requests.
29 minutes | May 1, 2017
How Trump’s Proposed Tax Plan Impacts The Real Estate Market
How doubling the Standard Deduction ACTUALLY impacts the real estate market.
25 minutes | Apr 15, 2017
How The Fed Rate Affects Mortgage Rates and The Real Estate Market
From March 2017: The 3 planned rate hikes won’t necessarily have an affect on mortgage rates. The FOMC and federal fund rate don’t regulate mortgage rates. Mortgage rates are more subject to inflation, regulation, economic growth, supply and demand. So, with the federal rate hikes, we don’t know if mortgage rates will increase too. In late 2015, there was a rate hike and mortgage rates dropped .5%. However, with the improving economy, increase in inflation and the likely hood of loosening regulations, interest rates will likely rise over the next year or two. But, this will likely NOT trigger a correction. It may have an impact on the rate of appreciation. Contrary to what most may think, in the past we’ve seen more buying activity with rising interest rates. Looser lending standards and increase in wages can easily outweigh rate increases. So, will increasing rates hasten then correction? Not as much as one might think. This is great question. There are a lot of factors that contribute to the state of the RE market. I will definitely get deeper into this in next weeks podcast.
25 minutes | Sep 9, 2015
Buying Foreclosures Part 3 (deal analysis)
Analyzing a deal is going to be the most important part of buying foreclosures. Get it right and you will make great returns and purchase regularly. If you get it wrong, you will either lose money or rarely purchase anything. Once you have a property in your line of sight, you will need to put a potential value on that property, determine your rehab costs and run a reverse spreadsheet to determine your max purchase price that will meet your minimum desired return on investment. Errors at this point can cost you, big time. One of the issues with seasoned investors is amateurs dropping the ball in their deal analysis and paying too much for properties; here everybody loses, a new investor loses money on a property that had potential for an experienced investor to make money. Far too often we see amateur investors in a bidding war at an auction, driving the price up which likely ends up in major losses. There’s also the flip side of this where, poor deal analysis leads to an investor determining a maximum bid that is way too conservative to be competitive. In either situation you’re either wasting time, money or both. Note: verifying information is part of your deal analysis, but was already touched on in part 2. Valuation Through verifying the property information you have the property specs; beds, baths, square footage, etc. You will need to get an initial potential value. This is going to be a paper value based mostly on the characteristic of the property directly compared to surrounding properties. When pulling comps, do not use just a simple radius, look at a map and look for obvious boundaries that determine a neighborhood and use properties within the neighborhood of the property you are analyzing. You will be surprised by the how much property values can differ depending on which side of a major street they’re on. Ideally you want to find at least three recently sold properties with similar characteristics as the subject property. Because you haven’t driven by the property yet, compare the subject property to the comps as if it were a similar style home which you have already rehabbed. Take into account the location, size, year built and condition of your comps to determine your initial potential value. This takes skill and the better you are at this the more money you will make. It will also vary from investor to investor depending on the quality and extent of rehab work done. As always this part of the process is going much easier if you have access to the mls. If you don’t have mls access, you will need to use a 3rd party provider such as accuflip.com. DO NOT, use any valuation from Zillow, Trulia or any other listing source. You absolutely must be able to see the specs and location of the comps, and if available, description and pictures. Websites like AccuFlp.com are designed for deal analysis and provide the comps to with their automated value. Now, you or a partner need to go put eyes on the property. A lot can change here. This is where you are really going to compare the property to the recent sales, so yes, you are driving by the comps as well. You need to check on how the property really holds up to the neighborhood. Is it the same style? Quality? Or is there some characteristic that makes it more or less desirable than the comparable sales? You will have to use your imagination, because you have to look past the properties current condition and imagine what it’s going to look like after you rehab it, but be careful, keep your imagination within reason. Don’t over remodel in your head. On top of narrowing in on the property’s true potential value you need to determine two other factors, occupancy and rehab. Occupancy is usually fairly straight forward; does it look occupied or not? If it looks occupied, what does the exterior tell you about the occupants? Is it well kept or are there cars on blocks in the driveway and a yard packed with junk? These types of things must play into your numbers particularly your holding period. You are likely not going to be able to see the interior condition of the property, so you are going to have to use the exterior condition as a reflection of the interior. However, you should always assume that you are going to have to do a complete interior remodel. Have standard figures, pre-estimated for this (for example, you should know what it costs for the interior rehab on a 3 bedroom, 2 bath, 1200 sqft house in a mid-level neighborhood). Looking at the exterior, does it need a roof? Does it need new windows? How’s the general condition of the exterior? Landscaping? Or, is there something that sticks out, that will be a major cost? There are a lot of factors you need to consider when viewing the exterior. Far too many to be summarized here. Experience is the only way to learn. After driving the property, you should have your property value, occupancy status and cost of your rehab. Max Bid Your purchase price is not negotiated, this is an auction. So, you’re not figuring out what you want to pay for the property, you are determining the max that you can pay for the property. Take your potential value (ARV) and start deducting costs. This is an area where amateurs make mistakes that lead to losses. Factor ALL costs. Here are most of the costs you will incur, but do your own due diligence to determine your own costs: Eviction or Cash of Keys. Rehab work. Property taxes, both unpaid and taxes during holding. Transfer taxes. Yes, you do have to pay any transfer taxes required by the city or county when you purchase at the auction. Financing costs. Closing cost upon selling. HOA dues. Factor in an additional 10% to 20% for factors unknown. Use the information gained from driving the property and neighborhood sales stats to figure your holding period. Misjudging your holding period can hurt your bottom line. Especially if you are obtaining financing, so be realistic or conservative. Evictions and construction work can often get delayed out and are usually what gets underestimated. After deducing all of your fees, subtract your minimum return on investment and now you have your maximum bid. If you are able to get it for less, great, but you need to know what you can bid up to and still make the return you desire. Your ability to accurately and thoroughly analyze a potential deal will be your bread and butter. Perfection here will ensure you are being as competitive as possible, given your investment criteria. There are factors in every deal that are unique to each individual investor and these variables should always be shopped. If you are financing your deals, look for cheaper financing. Always, keep an eye out for construction work that can be done for less money, faster and/or better quality. Your expectations on results need to be reasonable too. Expecting too much return on your investment will lead to no money and time wasted. Expecting too little, will get you into a deal that ties up your money as a better deal passes you by. Would you rather do ten deals a year at $30,000 profit per deal or one deal at $125,000? Research the market you’re looking to buy in and see what properties are selling for at these auctions. Search out an area that works for you expectations. Want a snapshot of a particular city or zip? Leave a comment or email me, email@example.com. Sponsored by www.goldenstatemoldinspections.com
21 minutes | Sep 2, 2015
Buying Foreclosures Part 4 (possession)
At this point you have been tracking the foreclosure auctions, found a property you like, done your due diligence and won the auction. Now what?… You have to get possession of the property. This can be one of the most difficult parts of buying foreclosures, there are a lot of potential hurdles. I want to give you the general process of gaining possession with the three scenarios that you will most likely encounter. I’m not going to go over vacant property procedure. There’s not much to it… get a locksmith and start your rehab. It is important to remember that there isn’t much you can do until you receive the Trustees Deed from the auction. This will take a week or two. However the first think you ABSOLUTELY MUST do as soon as you win the auction is call your insurance agent and get insurance. The last thing you want is a disgruntled former homeowner burning down the house you just bought and not have insurance. SO, get the property insured. Making Contact Warning: Be careful when approaching a home you just purchased. This can be very stressful to the occupant and they may do something to harm you. Although there is really nothing you can do until you have the Trustees Deed, you can still knock on the door and attempt to make contact with the occupant. If you are able to make contact be respectful, introduce yourself and explain the situation. You need to find out if they are the former owner or a tenant. Also, try to get a peek at the condition of the interior. Exchange information and let them know you’ll be in further contact. If the occupant is a tenant, you must honor their current lease for 90 days; given two conditions. 1. They provide you with a valid lease. 2. The lease is of reasonable terms at current market rent. If they try and provide you with a lease that shows they pay $5.00 a month rent, the law does not apply (still check with your attorney). In your attempts to make contact you will come into three likely scenarios. As soon as you receive the deed you can start taking real steps to gain possession. In either of these scenarios, ALWAYS start the eviction process the day you receive the deed. Hostile Occupant or Non-responsive Now that you have your deed, keep knocking the door at different times of the day. You can also post a notice on the door explaining that they must contact you immediately to discuss options. If you don’t get a response within a week or two, or you do get a response and they are hostile towards you and won’t cooperate… Easy, evict. Be sure you have good insurance too. In this situation there’s not much you can do but wait out the eviction process. Your attorney will basically handle everything for you. If it comes all the way down to a lock out (police remove the occupants) be sure you are there with a locksmith. You will have to arrange something with the former occupant for them to remove their possessions or talk with your attorney about what you must/can do with their personal property. This whole process can take 3-4 months. Willing to Talk Often times the tenant of former owner will be willing to talk with you. They’ll sometimes say something along the lines of, “I haven’t paid for years and was waiting for someone to come knocking.” Or, they’re just willing to cooperate. First off, don’t offer anything yet. Ask them if they have plans to vacate and how soon can they be out. You will likely get a long story at this point; remember, be respectful. What you want to end up negotiating is a voluntary move out within 30 days. You may need to offer cash as an incentive. Cash for keys should be no more than $3,500. DO NOT GIVE THEM ANY MONEY UNTIL THEY HAVE COMPLETELY MOVED OUT!!! If they agree to cash for keys, write up a simple agreement that states that you will give them $X.XX for them to vacate the property by X/XX/XXXX. You must include a clause stating that the occupant will maintain the property and not do any damage. At the time of making the agreement (even before it’s in writing) do a complete walkthrough of the property with photo documentation. Try to get them to allow you access for construction bids and or showings, while they are there. If they agree to let you in with notice, you can get a lot done while you wait for possession or even better, sell it. Don’t drop the eviction proceedings. Let the occupant know that they will get an eviction notice, but that it is just standard procedure and the eviction will be dropped as soon as they move out. It will not show on they’re record. You need to keep the eviction going as back up, in case the occupant does not move as agreed. When they do vacate the property, do a final walkthrough to make sure the property is in the same condition. If they trashed the place, don’t pay. Only pay if they held up to their end of the agreement. Have a locksmith there to change the locks when you do your final walkthrough. Congratulations!!! You have possession of your property. Now get to work! Questions or comments? Leave a message below or email me at Starboard@BretPfeifer.com
21 minutes | Aug 18, 2015
Buying Foreclosures: Scouting Part 2 (Verifying Information and Tracking)
How to Find Properties Going to Foreclosure Auction: Part 2 (Verifying Information and Tracking) At this point you have found a property that is going to foreclosure auction, you’ve done some preliminary valuation on it and you want to bid on it, see How to Find Properties Going to Foreclosure Auction: Part 1 (Sources). Now it is time to do your homework. You need to verify the information that you have, get additional information about the property’s title and since the auction will likely be postponed you need to set a tracking system. If you do not do these items you are setting yourself up to lose a LOT of money and or miss out on opportunities. First things first, verify information. This is a lot easier to do if you have a real estate license, if not, you need to develop a good relationship with an agent that is willing to work with you or even better develop a relationship with a good title rep. A good title company will have great online resources that give you access to county records and a customer service call center too. Start with the online research; this is usually a system that the title company has and will have to give you access to it. Once you have access, start with a property search by APN. There are too many errors with address searches, so always search by APN. Run your search and when the property comes up, make sure the address matches the prospective property. If it does, open up both the property profile and property history. Property Profile: This is where you will verify the owner name and property specifics. The information on the profile is what the county shows on record. So if your original source shows that the house is 2,000 sqft and the profile shows that it’s 900 sqft; there may have been additions without permits. You will need to verify this. Keep in mind that if your preliminary valuation and property info comes from another online service, that service probably got the property information from an old MLS listing, which isn’t always accurate. If the property specs check out take a look at the owner’s mailing address, if it doesn’t match the property address, the property may be tenant occupied or vacant. Especially if it’s an out of state mailing address. Property History: This is where you will start to check to make sure you are buying a first lien. Go through the property history and check transfers, loans and foreclosure filings. This can be kind of confusing sometimes, but essentially you want to look for the loan that is holding the auction you’re interested in and make sure there are no liens with a recording date prior to the loan in question and no liens for a higher amount. Finding either a prior lien or a higher loan doesn’t necessarily mean the loan in question is a 2nd lien, but in some circumstances checking these items will show an obvious issue and help save you some time. Checking the Property Profile and Property History should take you no more than 7 minutes. If your initial check at your online title resource checks out, it’s time to call customer service. The title company’s customer service representative will have access to the most up to date database, usually with a couple of days of anything recorded with the county. When you get a representative on the phone, have them lookup the property by APN and ask them for the following information: 1) Open liens. 2) Unpaid property taxes. And 3) Any IRS liens. Not all title companies will lookup IRS liens for you. If the title company you’re working with doesn’t look this information up for you, find one that will. Open Liens: With the list of open liens, you can verify the position of the lien that is holding the auction. The customer service rep will give you the date the lien was recorded, the type of lien (loan, judgement, etc.), the amount of the lien and any foreclosure info. Be sure that the lien holding the auction is the oldest lien. The oldest lien has the highest priority. Unpaid Property Taxes: Remember, property taxes take priority above any and all liens, see Buying Foreclosures Part 1 – Understanding the Foreclosure Process. So, this important information. You may find out that they are $25,000 behind on property taxes. Whatever is owed will need to be paid by whoever buys the property. IRS Liens: These liens are against the owner and automatically get attached to their assets, so they are attached to the property. Technically they do get passed along with the property, but will only stay attached to the title for 120 days. During those 120 days the IRS will likely try and muscle you around to get you to pay. Usually you can settle with them for a couple thousand dollars. However, if push comes to shove, just wait out the 120 days and the lien will be dropped. If you can’t get access to this information, just know that you may not be able to transfer the property for four months, which is usually no biggie, because eviction, rehab and selling, will likely take longer than four months anyway. One last tip about gathering information… If you have access to the local MLS, see if the property comes up. You can get A LOT of information, if there are any MLS records. For example, sometimes the property is currently listed for sale. If it is, you can usually see interior pictures, get occupancy information (including the occupants contact info) and other great bits about the property. At this point, verification and gathering of information should have taken about 10 to 15 minutes. The foreclosure auction will likely be postponed, so after verifying information and getting additional info, have a system in place for tracking the auctions. When the sale comes up again in a month, you should already have this information at the ready. You will probably develop your own system; but to start, put an excel worksheet together. Have columns for the new auction date, address, APN, estimated debt, last opening bid, value, occupancy status and notes. Keep it sorted by date to easily see what’s coming up that you’ve already researched. I also write down postponed auctions on my desk calendar. If you use propertyradar.com, you can save notes and track properties within your account. I encourage you to start finding and tracking properties, even if you’re not ready to buy. Practice makes perfect and you may find a property that is a great deal and somewhat feasible for you to purchase or team up with a seasoned investor to purchase. Questions or comments? Leave a message below or email me at Starboard@BretPfeifer.com
23 minutes | Aug 4, 2015
Scouting Properties for Auction: Part 1 (Sources)
Buying properties at the foreclosure auctions is a great way to get a deep discount on properties, but as I’ve stated many times, you need to know what you’re doing or you could take some serious losses. This post will be the first of two or three posts on how to scout out the properties coming up for auction. Here I will review the different sources for finding these properties and what the sources will provide. PropertyRadar.com is a service provider that for a small monthly fee will provide you with detailed information about properties coming up for auction. In California, foreclosure proceedings need to be recorded with the county that the property is in, starting with the Notice of Default. Each county will provide this information to anybody, for a small fee. PropertyRadar.com pays for this information for ALL properties, organizes it, tracks the progress for you and provides some additional information about the property; whether or not it’s listed for sale, lien and sales history, valuation estimated, etc. If you’re buying at the auctions, you will be searching for properties with upcoming auctions within the next few days. Besides the property specs, you will be looking for the auction date and location, estimated debt, opening bid and lien position (1st, 2nd, etc.). ALL OF THIS INFORMATION MUST BE VERIFIED. PropertyRadar is a great source and they do a good job, but they are still a third party, so the information provided by them, must be verified. There will also be the contact information to the trustee and/or the trustee sale hotline number for the particular trustee. Take note of this information, because you will find that there are a couple of big trustee companies that hold the bulk of the auctions. The sales information (date, opening bid, etc.) coming directly from the trustee will be the most up to date, because they are the ones holding the auction. Many of these trustees will have websites with up to date property and sale info, I will go over the big ones later in this post. PropertyRadar.com is extremely convenient and makes it a lot easier to find and track the properties that meet your criteria. However, there are properties that they miss and there is a delay on the information they provide, which brings me to the next sources… Direct from the trustee… There are a few large trustee companies that hold the bulk of the auctions and these companies post their trustee sale information on one of three websites; www.PriorityPosting.com, www.nationwideposting.com and www.servicelinkasap.com. The information on these sites are the most up to date and best of all FREE. There are more websites out there, but these are the big three. As you use PropertyRadar.com you will notice many of the same trustees for different properties; you should call these trustees and see if they have a website where they post the data. This saves a lot of time and puts you with the most up to date and accurate information which is a great advantage. These sites don’t provide as much information, but they do give you the basics; property address, APN, sale date/time/location, estimated debt, opening bid and trustee info. You will need to find the property specs yourself. Buying at the trustee’s sale is very fast pace and last minute. You do not have a lot of time to do due diligence, sometimes less than an hour. Most of the time you will be looking up these properties the morning of the sales, usually within an hour or two of the auction. Most of the trustee sites have an export to excel option, USE THIS. Excel will allow you to quickly sort the properties and weed out the ones you want. After you export, first sort the properties by “Status” and delete all of the canceled and postponed sales. This will usually remove around 65% of the properties listed for sale, leaving you with your real list. Next sort the properties by whatever system is best for you. Two tips; 1. Sort by “Opening Bid” and see if there are any good properties with opening bids. If not, delete them. 2. Sort by estimated debt. The reason for this is that any lien can foreclose on a property, so if you see the estimated debt very low, under $15,000 and there’s a unit number, it’s probably an HOA lien… Pass. If the estimated debt is somewhere between $16,000 and 25% of its value, then it is likely a 2nd or 3rd lien… BEWARE. Again, speed and efficiency is key. Most of the time you are weeding out bad properties to leave yourself with only the potentially good deals. Lastly, there’s Auction.com. They are actually a service that hold auctions for trustees. They also auction other types of sales, like short sales and REOs. The issue I have with auction.com is that they sometimes bait and switch, which is frustrating and they also will sometimes allow financing on properties, which opens up the property to a lot more buyer’s and that is not good. The information is free though and you can find deals. In my experience, the bulk of the good deals are found either directly from the trustees or at PropertyRadar.com (which also reports auction.com properties), but it is still a direct source where deals are found. When looking for properties going to auction, these sources are where to start. As you get more familiar with the process you will find other sources, but these are where the pros go. The important information that you find is the property address, APN, sale date/time/location, estimated debt, opening bid and trustee information. When using propertyradar.com or auction.com you will have to verify this information, but when you have a property you are going to bid on, be sure to always verify all of the information. Part 2 will be on how to verify property info, valuing and tracking. This post is just to get you started on finding the properties. Keep in mind that the majority of the time, the auctions will be postponed. If a property has an opening bid posted, it is very likely that that property will be auctioned on the day scheduled. However, opening bids are usually posted the evening before or the morning of the sale. So start with properties with opening bids then move to properties in your “backyard” or areas you really like, then start expanding your area. Please email firstname.lastname@example.org with any questions.
18 minutes | Jul 29, 2015
Hitting the Market! Property Prep
Selling your property on the open market quite simply comes down to four main factors; Location, specs, condition and price. There’s nothing you can do about the location of your property, so in order to get top dollar, you only have control over the specs (sqft, beds, baths, etc) and condition of your property. Since controlling the specs is a whole other article on construction, I’m going to focus on condition. There are two main components to condition; cosmetic and major systems. Cosmetic These are the items that are going to grab the buyer’s attention and make them say, ”I want this home!” Cosmetic work can range from a complete remodel (new kitchen, new bathroom, new floors, etc) to simply mowing the lawn. So, you need to consider how much work you are willing to do. Presenting your home to prospective buyers is very important. Be sure that you keep your property clean and tidy, and also keep your lawns groomed. Ideally you have at least re-painted the interior a neutral color and have carpets replaced or at least cleaned professionally. Personal pictures and items should be removed from the walls and put away. I always recommend renting a storage space for all non-essential items. This will help remove clutter, free up space and make your home look larger. This is especially a good idea if you’re selling a smaller house or condo. Major Systems Your major systems (roof, plumbing, electrical, etc) are going to be your key selling points in justifying the value of your property. After a buyer has imagined themselves living in your home, they will start looking into the major systems. These upgrades aren’t usually what initially grabs the buyer’s attention, but will be key factors in determining the offer amount from any prospective buyer. Major system upgrades are expensive, but add piece of mind to buyers. In conclusion, when selling your home, if you’re getting activity and showings, but not getting offers, you have two option; lower the price or improve the condition. One last item I want to touch on is showing your home. The more showings the better and the more convenient it is to show your home the more showings you will have. Having your home on a secured lock box with controlled access is the most convenient way to show your home. Making buyers jump through hoops by having to give notice days in advance or restricting the show times to certain hours on certain days will only limit the number of showing you have and ultimately you could miss out on that one buyer who is willing to pay top dollar. So, make it easy for your agent to show your home.
Terms of Service
Do Not Sell My Personal Information
© Stitcher 2022