by Mike Stott
1. Do what you say and say what you do. Success greatly depends upon others thinking you are a player and not a flake. If they think you are a player, they will bring opportunity to your door.
2. The best time to ask someone if they think a deal makes economic sense is before you buy it, not after. When you ask, do not be surprised if you hear something you did not expect to hear.
3. you do not know how to sell a house to a retail buyer in a marginal neighborhood, why would you buy a rental house in that neighborhood? Your exit strategies should always include selling, just in case you have to.
4. The first time you cop an attitude to someone whom you look to for help is probably the last time you will be helped.
5. Make financial decisions with your head, not your heart or ego. Remember: "Pride goeth before destruction..."
6. An appraisal for a hard money loan will not always work for an FHA loan. Different lenders have different standards for their appraisals. This can lead to different appraised values. Each type of appraisal serves a different, specific purpose.
7. Flipping contracts. If you do not intend to close on the deal if you cannot flip it, more is at stake than your earnest deposit. The seller could sue. Even worse, you could be labeled a flake.
8. Trust. Always do a deal as if it were at arms length, unless you can trust the other person with your life.
9. Renters. Kindness is a sign of weakness. If they are late, start the eviction. It's better to file the eviction then do a stipulation agreement, if circumstance permits, versus wailing on unfulfilled promises.
10. Snooze you loose. If it is an obvious good deal, put it under contract. Including a "weasel" clause could let you escape in case you later find out otherwise.
11. The whale that surfaces is the one that gets harpooned. Why brag about what you have? It only makes others envious and lets them know how much they can sue for.
12. Do not build a monument. Rehab a house to the expectations of the buyer, not yours. Buyers in in marginal al areas do not expect tile floors and granite countertops. Buyers in upscale areas do.
13. Plan the work, and work the plan. Investing in real estate is like playing chess. You must think several moves ahead while concentrating on what is at hand.
14. Mortgage fraud. Manipulating a loan program to get the deal done is building your financial foundation in quicksand. If it sounds wrong, it. probably is wrong, regardless of who is tilling you otherwise. Sooner or later, one of the 2,000 FBI agents assigned to look for mortgage fraud will find it.
15. It is not that you cannot afford education. it is that you cannot afford not to. Remember, luck is where preparation meets opportunity. Education equals preparation.
Source: “Suncoast Views.” November 2006, Suncoast REIA. Visit www.sreia.com (813) 287-1515