Category: Investing

RELOCATION REFERRAL SCREENING: areas of servicing

August 4, 2020

In the highlighted areas we offer an extended list of services to you.

AllOverUSA__Michigan_to_Florida_Califonia_to_Maine__Anibal.Group.RealtyNetWorth

> Our ‘MLS listing share’ agreement gives you access to:

  1. Zoom/ Google virtual meetings where you can dig thru all sorts of critical date, such as…
  2. on-market listings ~ with far more in-depth ‘back end’ information than what the ‘magazine sites’ give you.
  3. deeper local to your area(s) of interest data reports for you make a better informed choice. eg:
    1. ‘solds’
    2. demographics
    3. foreclosures &/or pending foreclosures
  4. if you can think of it, I can probably provide it.

> All of this ‘on-demand’ information is available AT NO EXTRA FEES OR COSTS’

Tell us what your looking for:Anibal-Group-LLC-RealtyNetWorth-Buy-Buyers-Interests-Survey-Standard-Form

FEEDBACK-FORM-PROPERTY-SPECIFIC-WEBSITE

We start screening your prospects. You have access 24/7 to the process unfolding as we interact, screen, evaluate, and communicate with them. YOU ultimately choose. This can include anonymously screening your pre-selected potentials against others in your new area.

anibal-group-llc-realtynetworth-all-over-usa_referral-screening-process-roster-overview

Investing: then and now

March 29, 2018

In 2012 I’d predicted a real once per generation buying opportunity. Now I have the spreadsheets from client deals to back it up. Further, take a peak at this:

Anibal-Group-LLC-Realty-Net-Worth-A-look-back-at-investment-advice

So, after you re-read the old article from 2012 here:

Let me recommend a quick read here:

Then I invite you to sit down and chat about your portfolio/ homes/ vacation residence/ elder care and college town houses.Anibal-Group-LLC-Florida-Realty-101-I-Think-Its-Time

 

Meet & Discuss Further Share Your Buy Wish List

 

New tax law – new strategies.

February 27, 2018
  • Standard deduction – way up.Anibal-Group-LLC-Florida-Realty-101-I-Think-Its-Time
  • Itemized deductions – far less valuable.
  • Misc employee exps – gone.
  • State/local & property taxes capped at $10k total.
  • Planning point: move expenses to other places or eliminate them because they have less/no value.
  • LLC’s, S-Corps, Partnerships enjoy new 20% deduction.
  • Planning point: How you hold your property investments can have a big effect

Extra Reading:

Meet & Discuss Further Share Your Buy Wish List

‘Short Sale’

January 16, 2018

Short sale? – buyers beware!!

Meet & Discuss Further <|> Share Your Wish List

  • easy,
  • quick,
  • predictable,
  • a sure possibility of condition of property or title history, etc.
  • NOT 

In fact, here are some excerpts from a Anibal-Group-LLCs-RealtyNetWorth-Handyman-Short-Sale-old-housedisclosure for buyers. I think it says it best:

‘…. If you will be frustrated beyond the savings of a short sale, then consider buying a home not under short sale. In other words, be prepared to be frustrated during the attempted approval period…’

KNOW BEFORE YOU BUY A SHORT SALE

  • Buyer and seller are advised that to a degree, all short sales are unique. Every transaction will be assigned to a loss mitigation specialist who will proceed based upon the current and ever changing needs and goals of the lender. What works with one short sale rarely is the same on the next.
  • Buyer and buyer’s agent acknowledge that because we handle multiple transactions, in order to best serve everyone buyer/ buyer’s agent will receive a link to a communications site for updates on the short sale process. Calls made to the office/ agent(s) will most likely not be acknowledged if updates are already posted. Extra calls, texts, & emails do nothing to further the process.
  • Once lender receives short sale offer documents, the lender may need minimum 40-60 days to approve. After approval, the sale must close at lenders approved time frame, often 30-45 calendar days, but may run 2 weeks to 12 months. It is common to receive no updates, no contact, and no calls from the lender.
  • Any ‘seller’ funds are usually paid to lender. The seller will receive no cash except for a HAFA short. The seller will bring no additional cash for any closing costs, buyer’s appraisal or home warranty.
  • Buyer home warranty is recommended by this office, your agent, and the broker, and may be purchased prior to close. The seller may not maintain the property.
  • Should buyer purchase a professional home inspection (highly recommended), the seller will not agree to any requested repairs. Many lenders are going to require certain repairs as a condition for loans, costs will be borne by buyer.
  • Buyer must communicate to seller through buyer’s real estate agent only as a courtesy to all involved parties.
  • Please acknowledge the above _________________

More reading:

 

 

Value: Assessed, Market, ‘Zillow’, Taxable

July 25, 2017

That’s an ‘uuugly house’. It was my 2nd investment & I was a 20 y.o. junior in college. It was also the highest ROI realty investment I ever had!

Market Value = house specific, current, based mainly on aesthetic appeal (new kitchen, Anibal-Affiliates-Realty_NetWorth_3134birchrow-eastlansing-mi-1982-bwonderful yard, location, etc.)

Assessed Value = neighborhood average, historical (old), based mainly on exterior mechanics (size/ age).

Now that we have that established, lets proceed.

Whether helping a seller set a price or helping a buyer write an offer, they want to know my opinion. “So how much it the place ‘worth’?”

  • A seller always picks a number that is highest – e.g.: ‘Well such n such says my house is worth $bla bla bla’.
  • A buyer always picks the lowest number (surprise) – e.g. ‘Well this says its only worth $yada yada.’

Opinion? Not so much, I prefer to provide information. With me & numbers I’ll give you various methods I use & crunch the numbers on YourSpace – YOU choose the value. My accounting & finance degree and nurture of broker fathers background with an economics masters has dictated this style as my preferred approach.

Back to definitions:

  1. Assessed =
    • neighborhood average,
    • historical (old),
    • based mainly on exterior mechanics (size/ age).
    • The assessor used a complicated ‘multiple regression analysis’ to take all properties with in the ‘taxing unit’ and give approximate values to the ‘components’ of homes.
      • i.e.: bathroom #1 is worth $2000, bath #2 an extra $600, #3…$250, etc.
      • 1000 s/f = $XX per s/f, 1001-1500 is worth $X per s/f
      • New roof = $XX less $X for each year its been there
  2. Market =
    • house specific,
    • current,
    • based mainly on aesthetic appeal (new kitchen, wonderful yard, location, etc.)
    • This
  3. , ‘Zillow’ = a computer model spits out this often ‘train wreck’ of a combination of #1 &2.
    • I’ve seen Zillow ‘values’ of $165000 for a home listed at $80k. I’ve seen the opposite, which can confuse a buyer obviously. I’ve seen another house go from ‘Zestimates’ of $183k to $93k to ‘Unknown’ all in the same year that I listed and sold said home for $150k ?? Figure that one out.
    • After all, ‘Zillow’ never walked the neighborhood, or smelled the basement, or saw the standing water in the spring time.
  4. Taxable = as it says. Forget using this number as a value. Your only concern here is if its too high, then you need to protest it.
  5. Bigger Picture RealtyNetWorth Value ? = Have you every booked a flight online? IntegrationCapNotice it says ‘save money by being flexible with travel dates’, yes? If your timing, tax situation, stage of life, & non-financial intangibles aren’t being considered, you may well need a better qualified ‘resource(s)’.

So whats a wise person to do?

The model I use for buyers and sellers is a spreadsheet approach that uses input from both the assessment – which considers the interaction of house basics, and current market sell prices from ‘as close as possible like-kind’ homes. To use one aspect without the other is a huge absence of a critical treasure of data.

When to hold a rental, when to flip a house.

July 20, 2017

You invest in property. You’re approaching it as either a residence, retreat, rehab, or Anibal-Affiliates-RealtyNetWorth-LakeShannon-why-I-sell-lakefront-young-couple-at-sunsetrental. But which came first, the property or the label? And more importantly, why did you choose one over another?

With such a substantial investment, I hope you have an idea of how you are evaluating on the way in based on your plan for use/ resale/ or rental afterward. So many clients start out with the “well this happened along our path one day so we just…” approach. Maybe o.k. for a garage sale find. But this randomized thinking potentially leaves dollars on the table and years of your life wasted.

Example:

  1. Customer wanted to sell a unit. “Why did you buy it?” I asked. “Well, it was a great deal so we bought it. then we rented it out”. ( A great deal for what ?)
  2. Customer wanted to have a unit inspected. “Why are you interested in this house?” I asked. “Well, I heard rental property is a good idea.” I asked, “Why?” …. he said “I don’t know.”
  3. Customer had a rental. “Why did you buy it?” I asked. “My friend called me and asked if I wanted to buy it.” So I asked, “do you have other rentals and why do you want this one”. He said, “no, first one, we want others”.

None of these folks had a strategy. They stumbled into their situation. In each case, I sat with them, started ‘at the top’, looked for customer strengths/ weaknesses/ and ideal goals.

  1. For customer #1, I said “so you want rentals?” Actually, it had never been profitable as a rental. They sold it for a profit, but the title choice drove up their tax burden. Further, had they made some specific improvements, the profit would have been better. They sold to a hustler by owner, but fortunately we took a better strategy going forward.
  2. For the 2nd scenario client, I tried to not completely make fun of the poor choice of home he wanted to – and almost did had he not called me – buy. Instead, I showed him only 1 more property. We spent an extra 60 minutes of his time, got a house in a better location, less money, newer, better heat/electric + 2 car garage, 2 decks and shed. That property more than doubled in value in a matter of months, and has had only 1 tenant in the 4 yrs. he’s owned it, bringing a good profit from rent and appreciation. The other property – still a mess and not worth much at all.
  3. In situation #3, we sat down and looked at how there is no profit from holding. Further, because of his skills, he’s better suited to rehab than to hold a loosing investment. All profit available on his held house will come from moving it, not holding it. Timing the sale will be the extra expertise I offer.

So the basic questions will still be, what do you have:

  • More or less skills.
  • More or less time.
  • More or less funds.
  • More need for current income (you are in a lower tax bracket), or more need for future (retirement) income, (you are probably in a higher tax bracket).

Based on these answers, there are very specific properties, areas, price ranges, and portfolio management styles (e.g.: you/ us) you’d be better suited for.  Decision time

I meet w/ clients a minimum of 1x/ year. This is a great time for a no-cost initial meeting to chat about what your real estate ideas are. Contact me via the feedback form to set a time & day !

In the meantime, I’m inserting text from an earlier post of mine:

In the early 80’s I picked up a very honest yet motivational ‘how to’ book on real estate investment. In my senior year of college I was set to invest. I actually drove to NJ, looked up as many of these homes as I could, took pictures, and tried to take notes in my then ignorance. After reading the book I bought a shack for $17500, w/ $1000 down, gutted the kitchen and bath, and placed into service what was one of my most successful investments to date.

I’ve used these & other techniques I gleaned from my broker/investor dad, and have shared them with clients for 3 decades.

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It comes down to humble work, patience, time value of money, and good mentors – I had my dad ! I keep a few copies of the book for clients I work with. Let me know if you’d like one.

What kind of ‘Fixer Upper’ ROI is possible when we’re your Portfolio Brokerage Mentor?

March 20, 2017

How much can I make rehabbing homes?Info-graphic-appreciating-wealth-build

There are many different approaches. Are you in a high tax bracket and want appreciation, taxed and withdrawn at a future date (like retirement) and wish to accumulate rentals? Or, are you in a low tax bracket/ want maximum returns now/ hence ‘Flips’ make more sense? Looking at our charts, you’ll see cheaper homes are better suited for rentals, but all properties are usually better suited for ‘flipping’.

‘Flipping’ homes is not for the faint of heart, nor for a novice. The TV shows are for entertainment – turn them off. I’ve never watched even 1 episode and I’ve ‘flipped’ houses since 1981. Yes, I’ll be glad to share my entire portfolio results to date with you.

The vast majority of folks loose money on rehabs, making lots of cash for ‘wholesalers’. So how do I know when to use a professional ‘Portfolio Broker’ Mentor? (that would be us). Perhaps when said mentor has a track record going back to 1980 and will say “NO” more often then “MAYBE” OR “YES”.

Prefer ‘hands off’ approach? We ‘joint venture’ with clients – you bring $’s, I bring expertise, your principle comes out first, we split the balance at closing. (there is a formal agreement letter but that’s the short version).

For every property I recommend, There are about 25 that I tell the investor “NO” and then tell them why. I want this to be educational as well as profitable for you – it helps us both!
—
Anibals-Realty-Net-Worth_2016_EOY_JV_ROI

If you click thru on the link below this photo, you can compare with last year EOY results. There has been some year over year appreciation.

  • In this market, this will plateau and makes these ripe for selling to reinvest a better part of proceeds.

Anibals-Realty-Net-Worth_2016_EOY_RENTALS_ROI

VIEW IN PDF:  Rental and Flips ROI Calculations – EOY16

Rental and Flips ROI Calculations – EOY15

Active client of ours? Request a copy of the below spreadsheet to compare your investments year to year & within your portfolio. This can assist in planning ‘which to keep’ vs ‘which to cut loose’.

  • Non-clients: ‘Remote in’ installation & setup available, or stop in – you don’t even need to bring your laptop.

This is not an offer of a guaranteed return. Always do your due diligence before investing.

Rental house ROI & remodeling budgets

January 11, 2017

Jumping into investment real estate this year ? Good info with a quick easy read, my basic Anibal-Group-LLC-RealtyNetWorthcriteria for useful information:

Here’s a huge oversimplification of the article links shown below:

ROI – your rent should be at least 1% of the purchase & set-up cost of your rental. e.g: You paid $85k to buy and rehab, it better rent for $850. Further, expect around 50% of the rent to be expenses (less if you have a mortgage).

My add to the thoughts: Annually evaluate your properties against each other AND against what else you could swap the lesser performing houses for. i.e: You can sell it for $200k/ it rents for $1250/mo., find another that will rent for the same that 1.costs less OR 2.costs the same but will rent for far more.

Renovations – Think practicality and ROI. Don’t go cheap for cheap sake and don’t over pay because its so snazzy. This is a business, not a glossy magazine.

My add to the thoughts: MANY. We’d need to sit down for this as each person, area, and property has different types of strengths and weaknesses. These need to be evaluated up-front BEFORE buying. I still believe that ‘the profit is made at the time of purchase’.

Like Chip & Joanna Gaines of Fixer Upper, remember to seek wise counsel.

February 19, 2016

Investing in property ?Anibal-Group-LLC-RealtyNetWorth
Like Chip & Joanna Gaines of Fixer Upper, I recommend you seek wise counsel ‘and all these things shall be added unto you’ says Biblical scripture.

When there is more that 1 person as part of the buyer / seller / ownership  package, I take just as seriously the ‘non-financial aspects’ of the transaction. A move is a top stress item per every counseling material you read and study. Since its part of my business, I’ve studied family counseling materials for decades, taken counseling workshops (outside of my profession) and consumed countless hours of programming relating to, well, relating.

I think these kids have it right in the interview link. When the purpose is shared jointly and above either of you, the ‘team’ approach brings you together, not in competition with each other.

Real estate auctions, can you trust them

February 16, 2016

Those flipping TV shows can’t be wrong, can they ? Oh my. If only customer/clients

realized they are buying a house, not a candy bar. (photos of actual house shown to client).

“If it was that easy…” right ? Here’s some of the better article excerpts I’ve found.

  • Property taxes, utility bills and assessments are sometimes not available at the time of auction or are not paid from the auction proceeds. These become the responsibility of the winning bidder. For example, water and sewer accounts for the property may be delinquent in the name of the previous owner and service may not be reconnected in some municipalities until the accounts are brought current.
  • Hubzu: One persons experience: “… I have been bidding for weeks on a distressed property and have gotten the same run around that others have posted on this forum. The photos they had listed were not current. I enlisted the help of a local agent and then drove over 500 miles to view it myself. It was in MUCH worse condition – no flooring , at least 1/3 of the drywall taken out, appliances in disrepair or gone, all interior doors and facings removed due to water heating flooding the unit while it was bank owned…”
  • One expert’s single word of advice for folks who dream of buying a foreclosed house at auction: “Don’t.”… “I caution anyone who isn’t in the (real estate) business: Buying (at auction) can be one of the worst decisions you’ll ever make,” says Jim Hamilton, a Realtor in Los Gatos, Calif. Another bit of counsel from Hamilton: If you want to buy foreclosures at auction, plan on making that your full-time job. If buying a house is like navigating an obstacle course, then buying a foreclosure is like crossing a minefield.

More info: