May 2011

Investment Exchange

An educational real estate newsletter

REHABBING HOMES

Buying distressed real estate isn't just for savvy investors — it's also for smart homeowners.

If you're in the market for a new home for your family, it just makes sense to shop smart. Why pay full price for a property when you can pay pennies on the dollar?

The secret lies in distressed real estate. The condition of these properties tends to depress the list price. If you can see past a bit of shabbiness to the home's true hidden potential, you stand to earn a lot of instant equity.

This month's newsletter is dedicated to helping you spot easy cosmetic fixes and other simple issues that are straightforward and inexpensive rehab projects that can turn your hidden gem into a shining testament to your brilliant real estate investment decision.

Whether you plan to live in your new home, rent it out as an income property or sell it for top dollar, rehabbing distressed real estate is a fantastic option to realize your real estate goals at rock-bottom prices.

Foreclosure.com is here to get you started.

Site feature spotlight

REHABBING ON A SHOESTRING BUDGET

One of the reasons foreclosures are listed at such low prices is often because they need tender love and care (TLC).

Just how much rehabbing a distressed property requires will depend on the property itself, but with a little know-how you can learn how to renovate easily for maximum value, whether you're selling or keeping your home for yourself.

Right now, this know-how is available absolutely free with our new live upcoming webinar entitled, "Rehab your Dream Home on a Shoestring Budget," on May 31, 2011, at 4 p.m. ET.

This free online presentation will teach you the ins and outs of rehabbing distressed properties, including:

• How to spot the properties that make the best rehab candidates
• Maxing out value without spending a fortune
• Choosing renovations that maximize a property's potential
• How to budget ... and how to stay on budget

This valuable webinar is hosted by real estate expert Linda Yates, Director of Education here at Foreclosure.com. Linda lends her expertise to the arena of rehabbing distressed real estate so that you can apply her tried-and-true techniques to your next purchase.

Don't let a few repairs or upgrades stand in the way of getting the property of your dreams ... for possibly half the price. Distressed property is absolutely the best way to get a super deal on a great piece of real estate, as long as you're able to see past issues like peeling paint, ugly landscaping and other fixable rehab projects.

Our can't-miss webinar will help train you to spot those diamonds in the rough and polish them up into the beautiful — and valuable — gems that they are.

Register to see "Rehab your Dream Home on a Shoestring Budget" today. It's FREE! Click here.

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WEBSITE SEARCH TIPS

JUMPSTART YOUR SUCCESS

Foreclosure.com members know that our site is the number one most valuable tool on the web for distressed property investment. It's simply the best place start if you're interested in learning more about rehabbing homes.

Not only do we have the best and most complete listings on the Internet, but we also have all the tools and resources to support you through your very first distressed property purchase ... and beyond.

Foreclosure.com members leverage our tools for their own success every day, but do you?

Our complimentary, no-holds-barred 7-day trial is the perfect way to get acquainted with Foreclosure.com and check out everything we have to offer.

The free trial includes unlimited, complete access to our listings (including addresses and contact info), as well as our education and resource centers. In short, it's everything you need to turn your fledgling real estate investment career into a powerhouse money-maker.

If that's not enough, then remember your e-book, "The Beginners Guide to Personal Wealth," which is yours free just for checking out our FREE 7-day Trial. This valuable e-book walks you through your distressed property purchase and even includes an essential guide for rehabbing your property into the home of your dreams.

Your FREE 7-day Trial gives you unlimited access to our website with no obligation whatsoever. Where else do you get the opportunity to find an amazing deal on your perfect property, plus all the tools to help make it yours?

Only Foreclosure.com can offer you all this and more — free with your 7-day trial membership.

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Hot off the press

RENOVATIONS WITH THE MOST BANG FOR YOUR BUCK

A recent REALTOR® Magazine study revealed which renovations provide the greatest return on investment for homeowners.

Among the top 10 were:

1. Kitchen remodel
2. Bathroom remodel
3. Deck addition
4. Basement remodel
5. Front door replacement

Although the average "do it yourselfer" may not be able to handle larger projects like a complete basement remodel, other projects offer attractive returns on investment and can be accomplished without the help of contractors.

For example, kitchens can be given a whole new look simply by replacing cabinet hardware, faucets and window treatments. This is an easy do it yourself-type job that requires little more than a screwdriver, but can easily update your kitchen.

Bathrooms can also benefit from new hardware and window treatments, but you should also consider swapping out an old toilet or vanity. Big box home improvement stores often sell new, modern-looking toilets and vanities for less than $100 and you can usually do the replacement yourself as long as you're able to use the existing plumbing.

If you're handy, consider undertaking simpler projects such as building a deck or replacing your front door — you can buy books or download free guides that explain the projects step-by-step.

If you aren't handy, there's still good news: Building a deck and replacing a door are two of the cheaper construction projects you can hire out that still provide serious bang for your buck. Functional and attractive outdoor space continues to be one of the top value-adders to homes.

To learn more about which easy rehab projects can maximize property values, check out this month's featured webinar (it's free!), "Rehab your Dream Home on a Shoestring Budget".

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Our success stories

EXPERT TIPS FROM JARED GARFIELD

When it comes to rehabbing distressed properties, Jared Garfield is a true expert.

Founder of Dartnell Investment Academy, Jared has spent the last 15-plus years helping investors capitalize on investment properties — to the tune of 20 to 100% return on investment.

What are some of his secrets?

"Our model is to find 1990 and newer homes that need minor cosmetic repairs and are in good middle class neighborhoods within a half-hour of a major city," Jared told us. "They have better floor plans, less renovation, and are more desired by tenants."

It's a solid strategy. A strong location coupled with only minor rehab requirements equates to higher value properties more quickly, whether you plan to stay in the house, flip it or rent it out.

Jared also recommends sticking to the suburbs where possible.

"[In the suburbs] you can get better schools, lower crime and often lower prices," Jared emphasized. These are all buyer-friendly factors that increase home values and the overall desirability of a property.

Dartnell Academy's turnkey system weeds through the huge inventory of distressed listings and narrows it down to the listings with the highest potential, which helps new investors get on the right track right away.

"Successful real estate investing has everything to do with research, understanding the numbers and having the right team," said Jared. "Having an experienced mentor who successfully owns real estate help pick the properties, an experienced, well-priced contracting team and a property manager who knows how to screen tenants [if you plan to rent out your property] quickly make a huge difference."

Jared has worked closely with Robert Kiyosaki (of "Rich Dad, Poor Dad" fame) and has trained at several of the top real estate investment associations in the United States During his career, he has personally coached more than 600 real estate investors and consulted with clients throughout Asia, Europe and North and South America.

Thanks for sharing your tips, Jared!

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Real estate tips

SIMPLE REHAB PROJECTS YOU CAN DO YOURSELF

The best real estate investors know how to look past minor cosmetic issues to see the true potential of a property.

Whether you're purchasing for your own family or planning to rent or sell the property, learning to identify easy rehab projects is one of the best ways you can get your hands on real estate for a fraction of its true value.

The reason is that most people simply aren't able to look past unsightly issues, even if they only require minor repairs and little to no "handyman" skills.

As a result, these properties sit on the market longer, which forces prices down ... and undervalued prices mean huge opportunity for you.

Here are a few common rehab projects you can easily tackle yourself:

• Curb Appeal — Overgrown landscaping, chipping paint and debris on the property can make an otherwise beautiful home look ugly. Curb appeal provides an immediate "wow" factor. So clean up any junk in the yard, repaint the exterior and/or trim if necessary, mow the lawn and plant some flowers. A nice exterior makes the whole home nicer.
• Windows — Windows are commonly dirty in distressed properties, so get out your glass cleaner and some paper towels to instantly make the whole house seem brighter and cleaner. Replace outdated window treatments with inexpensive curtains for a fresh, updated look.
• Painting — A fresh coat of paint transforms a room. Paint can brighten up dirty walls, but can also work wonders for kitchen cabinets and even some types of flooring. It's an inexpensive trick that adds instant value to your property.

The projects above cost very little, but can add tremendous value to a previously shabby-looking house.

Get more easy rehab tips with our e-book, "The Beginners Guide to Personal Wealth," available with your FREE 7-day Trial at Foreclosure.com.

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Deals of the Month

HOT FORECLOSURE DEALS!

Charlotte, NC
$89,900
3 beds/2 bath
1,354 sq. ft.

Florissant, MO
$42,600
3 beds/2 baths
1,445 sq. ft.

Albuquerque, NM
$130,000
3 beds/2.5 baths
2,160 sq. ft.

Linda's Learning Lane

DEVIL IS IN THE DETAILS

There is a saying that comes to mind when I think of rehabbing properties:

"Use it up, wear it out."

The best deals when buying a foreclosure are typically those that need a lot of work. The art of turning a good deal into a great deal is where extraordinary profits reside.

There is also an art, however, to not getting carried away in rehabbing.

It's important to do enough that will make the property show great, while still keeping the deal profitable. It's also important to have a good, reliable contractor on your team who you can trust and know that the work will get done in a timely matter and within budget.

You can find deals on materials by looking for discontinued items or slightly damaged items. Years ago we worked with a couple who turned a so-so property into an exquisite one by shopping the material deals.

Remember, too, that curb appeal will set the tone for your investment — you never get a second chance to make a first impression.

Cleaning your investment can also go a long ways to changing a perception of a money pit into a desired and livable space. Rehabbing can be fun as long as you are disciplined with your budget and have a plan.

It's all in the details.

The little things can make or break a sound investment. Be sure to check out our webinar this month, "Rehab your Dream Home on a Shoestring Budget", for the details and the ability to profit from a rehabbed home.