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RICHMOND INVESTORS UPDATE

Saturday morning February 27th from 9 to 11 am I will be addressing the top three questions I continue to get asked :

1. How can I finance investment real estate – I will give you information on 3 ways you can finance.

2. What areas of the Richmond market are the best to invest today? I will share my most recent experiences in a variety of areas

3. How can I get my houses sold?

I will address all three of these topics and we will have some good old fashioned networking over bagels and coffee. I hope you can join me. This event is FREE of charge, but you can donate toward bagels and coffee to help us out.

I have a couple of different locations that will work, but need to get a feel for the number of people interested in this event… SO if you can join me I REALLY need to Know right away because space will be a limited.

To Reserve your space: Leave a comment at this blog that you will be joining us or Just send me an email direct : jim@cheaprichmondhomes.com and simply tell me you will attend!

You wont want to miss this event as we unravel the mysteries of how to get your deals financed, review the specifics of the Richmond market and tackle the solutions to getting your houses sold for an instant profit!

This will be a great time of investor networking and you can NOT beat the price — FREE. Come ready to have fun! Come ready to network! Come ready to learn how to capitalize in this market by INVESTING NOW!

Jim Ingersoll
http://www.cheaprichmondhomes.com
804-270-7377
jim@cheaprichmondhomes.com

invest-now.jpgThe Senate has agreed to extend the first time home buyers tax credit.   Approximately 1.5 Million first time home buyers have taken advantage of the rebate in 2009.  The rebate allows first time home buyers to capture the $8,000 rebate.   The Senators have agreed that the tax rebate be extended to April 2010.  Next up is the vote of the House.  The House is expected to accept the package and send it to the President for signature.  It is expected that President Obama will gladly sign the extension.  In addition to the extension of the $8,000 tax rebate, they have agreed to expand the tax rebate to repeat buyers for a total of $6,500.

What impact will the extension and expansion have on our economy?  National Association of REALTORS® estimates that each home purchase contributes approximately $63,300 into our economy which is the approximate contribution of one new job.   Which organizations financially benefit from a home sale?  Here is a short list of some of them:

Realtor’s and Brokers:  6% commission on each sale.  Assuming the national average of a home sale is approximately $200,000 the commission per sale will average approximately $12,000. 

Settlement Agents:  The title companies and attorney’s generate income by selling the title insurance and providing legal services.

Mortgage Brokers:  Earn commission by writing your loans

Home inspectors and contractor’s:  Earn income on inspecting and then repairing the homes as needed.

Appraisers:  Earn their income for determing the value of your home

Financial institutions:  Earn their income through interest and numerous fee’s associated with your financing.

The first time home buyers rebate has had a big financial impact on our economy.  Expanding it to include a $6500 rebate to everyone will have a huge impact which will be covered in our next blog.

Chris Johnson (Cronson) did our shed demo and yard work this week

Chris Johnson (Cronson) did our shed demo and yard work this week

If you are spray painting, be sure to mask everything!

If you are spray painting, be sure to mask everything!

On our road to financial security our construction goals include elements of quality, speed and cost control.  I have seen many investors make major mistakes on all three of the above.  Some people cut costs and lose quality, others are not prepared to complete the renovation Lightning Fast or on budget. We typically turn a house fully renovated in 3 weeks.  In that 3 weeks we manage the project as tight as possible and make sure that reliable contractors are on-site with their needed materials every single day until we are 100% finished.  From the day of purchase until the day of being complete, we follow a logical process which I will share in a minute.  We are also very conscience of our overall costs/budget as well as the quality of our materials and contractors.

In this blog we are following one of our renovations from start to finish so let me update you on what we did this week.  We first ordered our dumpster which we planned to put in the back yard from the access road behind the house…  that didnt work out because the dumpster driver could not turn tight enough to place it in the back yard.  Needless to say it ended up right out front which we really dont like to do.  Once the dumpster was placed we immediately began the demo.  The demo included gutting the kitchen cabinets and the lower bathroom completely.  It also included getting rid of fine items such as the bedroom doors that the dogs ate through and other great finds along the way. It also includes a lot of exterior work like getting rid of the old, word shutters and mailbox. During demo we also work hard on the yard. Typically grass and weeds are knee high, shurbs heavily over grown, etc. At this house we had two sheds, one is in great shape and the other had to be torn down, see photo above.

Once the demo was complete, we installed the new doors and completed the necessary wall repairs and prep for paint.  This was a lot of work on this house as the walls were in rough condition.  We also completed our rough-in plumbing construction which included installing a new bath tub and surround, fixing the laundry plumbing and other fun items!   Late this week our HVAC contractors came, right on schedule and installed the new furnace and air conditioning.

Now that plumbing is roughed in and HVAC is in-place we have begun priming the walls with kilz.   The kilz works great for hiding a lot of sins and getting us ready to apply the paint.  We typically paint every house the same way which is antique white on the walls, semi-gloss white on the trim, ceiling white on the ceilings and eggshell white in the kitchen and baths.  The historic style mouldings in the this house along with the chair rail and crown pop right out with the semi-gloss white and contrast of the antique white on the walls! 

Whats up next?  This weekend our crew is installing the ceramic flooring in the kitchen and bathrooms.  The middle of next week our new kitchen cabinets will be installed.  From there we will do final plumbing and electrical to prepare to finish it up!

Happy Investing!

Jim Ingersoll

jim@cheaprichmondhomes.com

Gross looking kitchen

Gross looking kitchen

Door with hole in it from dog

Door with hole in it from dog

Gross bedroom before renvoation

Gross bedroom before renvoation

Welcome! We are glad you have joined us for our series on the Road to Financial Security.  We are going to follow a road map that will lead to cash.  Anyone need extra cash in this economy?  Ulitimately the real road to financial security is the buy and hold strategy.  I recognize that our economy will prevent those with job loss and insecurities from following this road map which is why this series will focus on flipping a house for fun and profit.

As mentioned in the previous blog our chosen investment needs a lot of loving in order to restore it to it’s former glory.   This house was literally a Dog House prior to our acquisition.  There is evidence of this point throughout the house.

1.  Severe dog stains on the hardwood floors…  you know what I mean by dog stains right?  You can see and smell them.

2.  Holes in the bottom of the doors and moulding around the doors in the lower bedrooms.  I believe the dogs were kept locked in these bedrooms and the literally attempted to chew their way out.  Take a look at the attached photo to see what I mean on this point.

3.  The whole downstairs really smells bad right now.

Besides the bedrooms ruined by the dogs, the kitchen is the next worst room needing some serious attention.  Take a look at the photo to see what I mean.  We will soon be gutting this kitchen and look forward to brand new cabinets, countertop, plumbing, appliances and a ceramic floor.

We will also be gutting the lower bathroom and installing new ceramic, tub, vanity, etc. into that so it will be brand new as well.  The hardwood floors will be refinished, the house will be painted entirely on the interior.  Once complete you can walk through the front door into the living room and the nice fireplace will catch your attention along with the refinished hardwoods and the newly installed ceiling fan.  From there you will notice the nicely renovated side screened porch and proceed to the brand new kitchen.  This house will offer 4-5 bedrooms, 2 full baths a nice yard and great neighborhood once complete.

On the exterior of this house we will be repairing the vinyl siding, painting the porches, and fixing up the garage along with lots of yard work.

Come along with us on the road to financial security.  The next segment will be coming soon with our construction updates and new photos, etc.

French St - Richmond, VA

French St - Richmond, VA

Welcome!  We are glad you have joined us for our series on the Road to Financial Security.  We are going to follow a road map that will lead to cash.  Anyone need extra cash in this economy?  Ulitimately the real road to financial security is the buy and hold strategy.  I recognize that our economy will prevent those with job loss and insecurities from following this roadmap which is why this series will focus on flipping a house for fun and profit.

The house we have chosen to chronicle is located on French St in Richmond, VA.  French St is an awesome neighborhood where every single house is very well kept and the home owners shown tremendous pride in keeping their lawns and such in a meticulous fashion.  It is also just 3 short blocks to the Maymont Park Pond and the Byrd Park area.  These are the reasons we have chosen to buy, fix up and flip this house.

The chosen house is the only house in the block that needs work.  The neighbors are very happy, let me repeat VERY happy to know it will soon be fixed up.  The neighbors are great and have lived in their houses for a long time (aka stable, nice neighborhood).

This house has grass that is higher than my knee’s along with heavily overgrown shrubs and trees.  Other than the outrageous lawn, the exterior is not in bad shape.  It already has nice vinyl siding and vinyl replacement windows.  Inside is another story…

The story from the neighbors is that when the former owners died the house went to the kids who then moved their dogs into the house.  Needless to say this is the smelliest house we have tackled.  The dogs were kept in a bedroom and they literally chewed a hold in the door and chewed off the door moldings.  Did Michael Vick live here at one point?  ha-ha, just kidding on that one.

This house does have a lot of great features including 4 or 5 bedrooms, hardwood floors and some nice character features.  It also has a nice fireplace and screened in side porch.  This home has approximately 1700 square feet and will appraise for around $220k once  our renovation is complete.

We are buying this house for $106k so their is penty of equity in this house.  I have financed it using a private lender so I did not need a bank mortgage.  I have worked with this private lender on several other houses and he continues to receive an outstanding return on this investments with me.  If you would like to partner with me and have available capital for one of our investments, please contact me direct at 804-677-9025.

The next blog will include the interior photos along with our construction plans and budgets, you wont want to miss it…  Happy House Hunting!

From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells.

I continue to get a lot of questions on this investing now blog series via email, etc.  In the last post we highlighted what each person involved in this investment received.   Investing is all about who gets what.  A Seller may get debt relief, a Buyer may get a great house to raise their family in, an investor may get tremendous equity and rental income.  While making your investments it is very important to determine what each of the people involved in the transaction are seeking and what you can offer them to meet their needs.  Some may need the highest price, some may need a super fast closing, others may need to sell the house as-is.  Some buyers want a fixer upper, some want a house move-in ready and others are looking for just a great deal.  For private lenders, some may want a safe conservative interest rate such as 7% and yet others may want a piece of the action in the form of an equity position in your deal. One key to sucess is to determine what each player in the transaction needs and then engineer a solution that meets everyones needs, including your own.

Several people have asked what happened to the house featured in this investing now blog series.  It has been sold in a rather unique situation.  We ended up receiving an offer one morning which looked pretty good.  Before we signed the contract that day we received a second offer on this property.  The second offer was an all cash-offer with no financing contingencies, etc.  The best part of any cash offer is the super fast closing.  In this case they offered to close in one week so we took the offer on this house.  The unique part of the sale was the story behind the sale.  It was an all cash offer because parents were buying it for kids who are getting married…  Yes, this house became someones wedding gift!

Always remember to make your real estate transactions a win-win scenario so that the Seller, Buyer, private lender and yourself all can win and achieve their goals!

From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells.

 Welcome to WEEK FOUR (the FINAL week) of our entries: the process of investing in real estate from START to FINISH.

+++++++++++++++++

Oh man have we had an amazing experience with this latest property!

Okay, here is the rundown on who gets what on this investment:

What WE get:

ALL of the renovations are complete. We bought this property with a DOUBLE exit strategy in mind:

  1. We can rent it for a very positive monthly cash-flow
  2. We can sell it to a first time home buyer and we would get a nice chunk of income at closing

What the HOME BUYER gets:

We have listed this home using Just List ‘Em for $124,900.  A first time home buyer is able to purchase this home for LESS than renting with under $1,000 out of pocket to buy (since we are paying ALL of their closing costs) AND a monthly mortgage payment of around $850 per month.  The home buyer gets a HOUSE with very little out of pocket, a very low monthly payment, and the $8,000 Tax Credit from the Government.

The home owner also gets an affordable, renovated house with a dimensional shingle roof, new heating and air conditioning, 3 BR, 2.5 baths, nice fenced yard with deck and driveway, beautiful refinished hardwood floors, new kitchen appliances, etc. It doesn’t REALLY get any better than that.

What the IRA Investor Gets:

Our IRA investor gets a GREAT yield and is no longer losing money in the stock market.  Once this house sells, the investor wants us to move his money to another house so we can repeat the process again and continue to provide him a great return to his IRA.

Sounds to me like this is a win-win-win TRIPLE win situation. Everyone walks away happy.

Here are some pictures of the FINAL product: 

Living Room

Living Room

Kitchen

Kitchen

Bedroom

Bedroom

GREAT back yard

GREAT back yard

FINAL exterior of the house

FINAL exterior of the house

If YOU or someone you know is interested in this property, partnering with us on an investment, or considering selling your home, let us know. We would LOVE to work with you.

From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells.

Welcome to WEEK TWO of our entries: the process of investing in real estate from START to FINISH.

+++++++++++++++++++

The Bolling house -- Week TWO.

Our project -- Week TWO.

Of course, there are no surprises this week!  Renovating a house is just like peeling an onion–you never know for sure what you have until you peel it all back.  We had TEN people working on this house for the better part of this week.  It is critical to be prepared to start the work the very first day that you close on the home. Our first trip to Lowe’s home improvement center was fun. It was like a parade with about four carts full of materials.  [BTW: ANYONE can save 10% at Lowe’s by getting the coupon from the “change of address packet” at their local post office.  This week we spent $1,400 in materials at Lowe’s and saved $140. Pretty sweet, right?]

Here is what we did this week:

Constructing the new full bathroom

Construction of the new full bathroom

  • New dimensional shingle roof
  • New deck in the back yard
  • New full bath (almost done)
  • New heating and air conditioning installed (WITH a 2.5 ton heat pump)
  • Prepped all walls for painting

Here’s what’s happening NEXT week:

  • Completing all interior work
  • Refinish all hardwood floors
  • Lay new kitchen floor
  • Lay new bathroom flooring
  • Replacing shutters
  • Painting of exterior trim
  • Complete all landscaping work
  • Determine sale and listing price
  • List home using Just List ‘Em: http://www.justlistem.com

Our investor is very pleased with the progress of the renovations on the property. By using his IRA to fund the project, he is receiving an 8% interest return on his overall investment–something he would never have received from a bank. We are so happy to be collaborating with a private lender on such a great project. By becoming a private lender and investing in real estate when the stock market is not at it’s best, you are able to achieve greater financial gain in an easy and reliable manner. After last week’s post, we received A LOT of questions regarding this process. We would be happy to answer them, but I would also like to refer you to this website:http://www.entrusttexas.com. [The contact is Quincy Long.] The Entrust Group provides a lot of GREAT information regarding self-directed retirement plans–this is a great place to start when considering investing in real estate and properties.

Look forward to next week when we discuss the completion of the renovations, sale-price, and MORE.

In the meantime, follow us on Twitter! @justlistem

-Jim Ingersoll

No, you’re not a dummy. I would never say that. But, I DO have to say, this whole “First-Time-Homebuyer-Tax-Credit” thing can be a bit confusing if you aren’t good with numbers, or taxes, or legislation. So, I’ve decided to break it down for you, so that maybe the whole thing will be a bit easier to swallow and/or comprehend. Here are some basic questions about the tax credit, ANSWERED, in a hopefully, clear and concise manner. 

  1. Who is eligible to receive this “tax credit” anyway? The tax credit can go to ANY person who is purchasing/buying a home for the FIRST TIME (in a three-year period) prior to December 1st, 2009. 
  2. What do you mean “three-year period”? Well, say you owned a home, a long time ago. But you have NOT owned a home in the last three years. Well, you’re eligible! But sorry married folks, if you or your spouse has owned a home, you don’t qualify. Only those who have NOT owned a home individually or jointly may qualify to receive the tax credit. 
  3. Wait, so how is the amount of the tax credit determined? Meaning, how much money will you get? The tax credit is equal to 10% of the purchase price/selling price of the home — up to a maximum of $8,000. So, if you purchase your house for $100,000, 10% of that would be $10,000. But that’s too much, so you would get the maximum credit of $8,000. Get it?
  4. How is this NEW first-time-home-buyer tax credit different from the one that Congress passed and enacted in July of 2008? The biggest difference is that THIS NEW tax-credit DOES NOT have to be repaid. I repeat. DOES NOT have to be repaid! Basically, the previous tax credit was like a loan that didn’t have any interest associated with it, basically making it not really an actual tax credit. However, the homebuyer MUST stay in the home for 3 years or else you may have to pay some of it back.
  5. Can you combine this tax credit in conjunction with any other first-time-home-buyer tax credits? Nope, sorry Greedy Gus, you can only choose one. 
  6. How do you make sure you are going to receive this tax credit? Well, you are going to file for this tax credit on your 2009 federal tax return and it will show up then. If you have any doubts, ask an accountant or CPA. I know that I, myself, am not always the best at filling out forms, so it’s always smart to have someone double check your work. Oh, and if you want to receive it early, talk to an accountant. You may be eligible to have less money taken out of your paychecks in 2008. Wouldn’t THAT be sweet? 

So, all in all, this NEW-First-Time-Homebuyer-Tax-Credit is a pretty awesome deal. Essentially making this the PERFECT time to buy a home. The market is TRULY a buyers market and you can only benefit from buying a home right now. 

Need to sell your home? Sell it yourself and save on commission. You can sell your home with our friends, Just List ‘Em

Now is the time to save money and earn the money you deserve. You’ve worked hard. Treat yourself.

-Jim Ingersoll

Jim Ingersoll

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