The Monthly Peel V.2
Interesting stories, tips & tricks for real estate investors.

Palm Beach County Investors wins a property for $238k and then…

…when our subscriber and local investor drives by the property an hour after winning it at auction, he sees a smoldering pile of ashes, complete with police tape & bystanders huddled pointing and gasping at the crater.  Before it burned down it was worth $450k, after the marshmallow roast, maybe $30k for the land minus some cleanup fee.   Little did our investor know after doing the drive-by check before the auction, the house burned to the ground that very night. When the investor called the county, he was told “Buyer Beware”, the case is now pending in court. Follow this advice and avoid falling victim to this profit wiener roast!

Beat the other bidders and get cheaper properties by…

…. not putting in your max bid at the beginning of the auction. A common misconception for those new to the county foreclosure auction scene (and some not so new investors) is to go ‘all in’ at the beginning of an online auction, meaning you submit your maximum bid at the first time of asking and wait to see whether you win or not.  Although it’s tempting to just jam in your highest and best bid after you’ve spent many auctions going back forth for an hour in $100 increments, this isn’t the best strategy.   This is how the strategy works, it’s pretty simple and can save you tons in bidding on foreclosure and tax deed properties!

Thou Shall Bear Witness to thy Neighbor’s Mold or else…

…. they might tell on you first! When you tear open your walls in the next condo or townhouse flip and you spot a leak or a water stain on the back of your neighbor’s wall, look out! Tell them about THEIR mold problem before they tell you about YOURS! Document the evidence of the leak being on their wall, not yours. If you do something stupid like leave the mold on the back of their wall exposed and go on with your construction, your neighbor might start to find mold growing in the most unlikely places in their property. Your neighboring unit will immediately blame you, the evil house flipper!   Most of the time it’s a race to blame and you don’t want to be last.  Condo & Homeowner associations are very familiar with these types of squabbles, so make sure you inform them immediately of the situation!  It is important you know this stuff before you push forward with your rehab plans on your next condo or townhouse renovation!

Save Big by not falling for this contractor upsell…

Contractor: “You need a new roof BRO!”
Us:“Doubt it!”

The minute you pay off the balance for your foreclosure auction purchase its straight to the property with your contractor. We have heard it time and time again “You need a new roof bro!”.  Your heart sinks, your wallet shrieks, and you shave a zero off of your projected flip profit.  Here is a newsflash, you probably don’t need a new roof!  Your general contractor, unless they are a roofing expert, needs to get you a roofing contractor with a stellar reputation to make an evaluation. A lot of roofs can be repaired, and if you are in the deal to ‘flip’ spending under $4,500 to repair a roof rather than replace the entire roof must be a consideration, unless of course, you are looking at a ‘cave in’. Educate yourself here and don’t fall for another “You need a new roof BRO” contractor again!

The “8 Second Rule” in Real Estate & more interesting stuff to read:

… in Scotland homeowners paint their front doors red when they finish paying their mortgages to tell others the good news.
–  Brass doorknobs disinfect themselves via the Oligodynamic effect. The metal is a natural germ killer.
& finally… “Buyers decide in the first 8 seconds of seeing a home if they’re interested, so get in their shoes & see what they see in the first 8 seconds!.”  So do this & sell faster!

So happy you read our email, how’d you like it?

 If there’s anything you liked or didn’t like about this email, please leave comments below and let us know!  We would love to get some ideas of what you might be interested in reading about in our next issue.  If we pick your topic we will give you a $25 Amazon.com gift card as a thank you for the idea!

    Sincerely, 
    -Rooty 
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