Fun with Contractors. A State of the economy type of thing.

14 11 2008

Thought I would share a couple of recent stories of fun with contractors..

I just need to clarify a bit in advance. I am not a tough guy to work for… I don’t call these guys up and tell them “LOOK HERE YOU DIRTY SOB.. I KNOW YOU ARE GOING TO TRY AND RIP ME OFF, SO DON’T EVEN THINK ABOUT IT!!!”.. I am nice.. I call and ask for a quote on specific tasks, and let them give me their quote. Then i go with whomever I feel is the best, and it’s not always the cheapest quote either… Lately, I’ve just been having a TERRIBLE time with contractors… so here is some of my most recent stories…

1) Electrician: Two, COUNT EM, TWO… different members of the local REIA(Real Estate investors Association) recommended this guy. So I decided to use him. I wanted all my ungrounded 3 prong outlets grounded. I wanted a GFCI outlet in the bathroom, and I wanted ceiling light boxes, capable of handling a ceiling fan, in each of the bedrooms. Electrician told me it would be time plus materials, and since two DIFFERENT people recommended him, i didn’t feel the need to get a contract up front.

What I got was Two, Count em, TWO.. GIANT holes in my ceiling from the electricians’ apprentice falling through my ceiling, TWICE, from the attic. All my outlets switched over to 2 prong outlets(He felt he didnt need to call me to confirm, just assumed I didnt want to pay for grounding the outlets). The holes that were put in the ceilings in the bedrooms for the ceiling fan/lights were created by using a sharp jabbing device. I assume it was a screwdriver. Oh, and lastly, the gfi outlet in the bathroom… Yeah, when he cut the hole for the box, he got over zealous and decided to punch through to the wall in the living room… /SIGH

For the record, i tried to make it work with him(the electrician). The apprentice was fired over the incident(not at my prodding). The electrician told me he would be out there in a couple of days to make it right, and I was okay with that… Week later I called the electrician to see where we were at, and he told me he would call me in a couple of days to come out the following day. He called me back 6 weeks later to say he was ready to come out… I told him I had already had someone else do the job… So at least i didn’t have to pay him, although repairing the ceilings was prolly a lot more than what little I got for free… /sigh

2) I called 9, yes that’s a NINE, different contractors to get a quote for a new roof. I got 4 responses. Two of which i had to poke and prod and BEG for a written quote for a week or more.

3) I called one of the guys from #2 above, and asked him to go over to my property and put in an emergency tarp. He quoted me $300.00 to put the emergency tarp in place(which i thought was pretty high), but also told me he would give me $150 credit if we signed the contract for replacing the roof with him, so I went ahead with it.. He told me he would have someone out there the next day(a saturday) to install it… Monday came, and no tarp, so i called and he told me that it would be there on Tuesday.. Whatever, I waited, and they installed it on Tuesday, and then I got a bill for $450.00… I called him and spoke with him in a nice bewildered tone “Hey Tim, this is Lee, I just got my bill and it’s says $450. I thought we agreed on a price of $300 with a $150 credit if i signed with you?!? What am I missing here?”, and he gave me some grief, and acted like I was taking advantage of him.. WHATEVER!!! For someone who wants me to sign a contract for an $11,000 roof replacement, he sure isnt going out of his way to earn my business… AND WHY THE HECK DIDN’T HE CALL ME AND TELL ME HE WASNT GOING TO INSTALL ON SATURDAY?!?! dumb dumb dumb…

4) I called a guy out to give me a quote on fixing a breezeway. While he was there, i had a window company out to give me a quote for replacing the windows, and he offered to give me a quote on replacing the windows as well. Sure, I dont mind giving someone more business if they are worth it!

As we are standing there, he tells me he can fix the breezeway for $3100. Couple of days later, he calls me back to give me the quotes, and he tells me $5700 for windows(which I had two other quotes for $3400 and $3500 from other reputable companies), and that the breezeway was going to be $3400. I, nicely,  tell him I am not interested in the windows, and that I was curious why the other quote had increased. He stated he got home and did the math, and he realized he needed more for the breezeway job. I accepted that explanation, and asked him to ship me over the written quote on the breezeway.

Couple of days later I hadn’t seen the quote, and i had a question, so i called him. Asked him if the $3400 quote included drywalling the interior of the breezeway, and explained that I hadn’t received my quote.. He stated he had been busy, and indeed he was including drywall inside, and would send me the quote later in the day..

Two days later, no quote yet, and so i called him back… He informs me that he was sorry no quote yet, but he had been thinking about it more and more, and that the job was going to be $3900, and he wasnt going to do the drywall anymore…  /SIGH Never mind, I’m sorry i didn’t give you the window job, but the two grand difference is TWO FRIGGIN GRAND!!! GET OVER IT!!! I didn’t bend your arm on the price, you are the one who gave me the price(3 friggin different prices, and still no friggin written quote)…

WHATEVER!!!! For an economy that supposedly sucks, I sure don’t see it… I cant get anyone to work! hehe


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Investing in real estate without getting scammed.

13 11 2008

The IBJ(Indianapolis Business journal) has a good article about Charter Homes which was recruiting “straw” buyers. The 3-year-old local company took advantage of eager real estate investors by offering them a cash bounty for each home purchased, along with checks from Charter to cover down payments. But as lax credit markets tightened and home values reversed course, the scheme began to crumble, an IBJ investigation has found.

The use of “straw” buyers—individuals who lend their credit, often to unnamed shadow buyers—is considered illegal. During the housing bubble, frauds involving such buyers were widespread, particularly in Nevada, Arizona and Florida, said Curtis Novy, an expert on mortgage fraud and a veteran California mortgage broker.

Ultimately, it takes a team to pull off such a scheme, including a builder, appraiser and straw buyers, Novy said.

A warning sign is high sales prices that don’t make sense to people who know a market.

PROTECT YOURSELF:

If you want to invest in properties, but dont want the hassle of dealing with them. Then make sure you are going in with your eyes wide open. Get your own comps on what a property is worth(fixed up and or needing repairs). Get your own comps on what the repairs are going to cost. Get your own comps on what property management is going to cost. Use your own banks and or appraisors. Most Importantly: If you don’t understand something, either ask more questions until you do understand it, or walk away and invest elsewhere!

My company offers investing for people who don’t want the hassles. I don’t give inflated values, or am not in cahoots with appraisors or lenders. We offer real estate investing without all the hassles, or with all the hassles if you want to go that route. If you are interested, then give me a call and we can talk about your options.. Lee Smith, 317–450–3491


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Categories : Indianapolis Real Estate, real estate investing, real estate investment, real estate investor

Citi bank latest to offer program to refinance in trouble mortgages

12 11 2008

Under the new Citi Homeowner Assistance program, Citi will seek out a select group of 500,000 homeowners who are not currently behind on mortgage payments but may require help to stay in their homes.

“We will preemptively reach out to help at-risk homeowners before they become delinquent, which is critical to avoiding the loss of a home and protecting their credit score and future borrowing potential,” said Sanjiv Das, CEO of CitiMortgage.

Citi estimated that the program will save about $20 billion in mortgage balances.

The program will also keep homes in its system from foreclosure as long as the borrower wants to stay in the house, is working with Citi and has sufficient income to continue making mortgage payments.

“We believe that focusing on homeowners who face extreme economic distress, including possible unemployment, versus those who hold certain types of mortgages — and helping them over a significant length of time — is the key to keeping people in their homes,” said Das.

Citi also recently streamlined its existing loan modification program, which is similar to the FDIC/IndyMac model, to aggressively rework delinquent loans. This program uses a simplified formula to determine an affordable payment as a percentage of the borrower’s gross income and then reduces the monthly payment to that amount through interest rate reduction, extension of term or forgiveness of principal.

Key elements of the program will include:

# A dedicated team of trained counselors in Borrower Relief Centers that preemptively reach out to customers in debt to Citi. It is also working with other investors to include the program with loans it services but does not own

# A concerted effort to reach these at-risk borrowers through calls, written correspondence, e-mail, toll-free assistance lines, online social networks and external counselors

# A range of solutions for homeowners with reliable incomes to offer them affordable payment options to remain current on their payments, and in turn, in their homes

“The new Citi Homeowner Assistance program again demonstrates Citi’s leadership on this issue,” said Ken Wade, CEO at NeighborWorks America.

The nonprofit NeighborWorks America, created by Congress to help revitalize neighborhoods, says Citi’s efforts are ahead of the curve.

“For NeighborWorks, Citi provides not only funding for our Center for Foreclosure Solutions, through which we reach at-risk borrowers facing foreclosure, but also expert personnel to train and assist community-based organizations that work with at-risk borrowers. I congratulate Citi for this latest, important step forward,” said Wade.

Since early 2007, Citi said it has helped about 370,000 families avoid foreclosure on their homes through loan counseling, debt workshops, financial education and grants for low- and middle-income neighborhoods.

“We’re especially appreciative of the national and local community groups we’re working with on many fronts to reach distressed homeowners around the country,” said Citi’s Senior Vice President of Global Community Relations Eric Eve. “We believe at-risk borrowers should not have to wait until they are facing potential foreclosure before they become eligible for a loan modification or a foreclosure pause.”


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Categories : DIY, House Work, Indianapolis Real Estate, Selling your home, listing your home

October Indianapolis Real Estate Market Statistics(Mibor MLS/BLC)

11 11 2008

These are the stats from jan 1 to Nov 1 of 2008 and BEYONDDDdddddd…

Things are just barely down from Septembers stats.. Little worse on number of homes sold, and average sale price.. Nothing really to write home to mom about though… 20903active listings on the market, which is down from last month as well.. Heading in the right direction!

1-Jan to 1-Nov
# Sold Avg # Sold Avg Price Avg % Price Days On Market
2005 29336 $152,169.00 81
2006 30013 102.31% $152,623.00 100.30% 84
2007 28344 94.44% $149,592.00 98.01% 90
2008 23986 84.62% $142,784.00 95.45% 96
sold in month 1864
1-Jan to 1-Oct
# Sold Avg # Sold Avg Price Avg % Price Days On Market
2005 26451 $152,006.00 81
2006 27111 102.50% $153,029.00 100.67% 84
2007 25889 95.49% $150,085.00 98.08% 90
2008 22122 85.45% $143,333.00 95.50% 96
sold in month 2833
1-Jan to 1-Sep
# Sold Avg # Sold Avg Price Avg % Price Days On Market
2005 23466 $151,938.00 82
2006 24426 104.09% $153,097.00 100.76% 84
2007 23361 95.64% $150,664.00 98.41% 89
2008 19289 82.57% $144,808.00 96.11% 97
sold in month 2597
1-May 1-Jun 1-Jul-08 1-Aug-08
Currently Active: 22184 22398 22604 22619
1-Sep 1-Oct 1-Nov
22103 21369 20903

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Chase is refinancing 400,000 ARM(Adjustable Rate Mortages)!

6 11 2008

    Chase will turn 400,000 high-interest option-ARM mortgages into lower-cost fixed ones, the bank announced this Friday. Foreclosure processes on the loans will be stopped for 90 days while the procedure gets set up. Banks mainly have latitude to adjust the mortgages they themselves own. The complexities of modifying a loan that may have been sold and repackaged into a security are intricate. For one, hedge funds have threatened to sue banks if they modify the loans underlying their bonds. So hooray for the lucky 400,000. Only a few more million to go. If you’re a homeowner facing foreclosure and you’re unable to get your lender to work with you, try contacting the HOPE NOW hotline at 1-888-995-HOPE for free advice from a home preservation counselor.


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October Home Maintenance List

4 11 2008

I recently had to replace my water heater, and I was reminded that I should be posting things to do each month… Especially the once a month draining of 1-2 gallons of water from the water heater.. This can greatly increase the life expectancy of a water heater! Just be sure where you are draining into.. hehe

October:

1)Replace/clean furnace filter(s)

2)Clean filters for kitchen exhaust fans.

3)Drain outside faucets and winterize sprinkler system.

4)Check driveway for cracks. Fill cracks and reseal as needed.

5)Test smoke detectors.

6)Check septic system drain field for flooding.

7)Drain approximately 2 gallons from water heater to eliminate sediment.

8)Pass a lit candle around doors and windows to check for drafts. Weather strip as necessary.

Weekly:

1)Furniture Dust all hard surfaces.

2)Floors Vacuum or mop.

3)Kitchen sink Scrub and disinfect.

4)Appliances Wipe down surfaces.

5)Shower Clean and scrub down.

6)Counters Wipe down and disinfect.

7)Bathtub Clean and scrub down.

8)Toilet Scrub and disinfect.

9)Sheets Change and launder.


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Indianapolis Real Estate(Mibor) Market Stats for Jan 1 to Oct 1.

27 10 2008

Lee’s Notes: Yeah, october is almost over, and I’m just adding the indianapolis real estate market statistics for January to September… I BEEN BUSY!!!!! hehe My family does Sunday dinners together(it’s a new thing, but we are enjoying it). My sister told me she talked to one of her Realtor buddies, and he had stated that September was just flippin AWESOME for selling houses… The stats don’t show it… July was better for number of homes sold in one month. Average price for a sold home is down compared to August, but number of homes sold is up compared to august. Overall we are down about 4.5% for average sale price and down about 14.5% in number of homes sold…

Current number of homes active on the market is 21369, which is down compared to 22103 on August 1st. So we arent adding a ton of homes to the market…

1-Jan to 1-Oct
# Sold Avg # Sold Avg Price Avg % Price Days On Market
2005 26451 $152,006.00 81
2006 27111 102.50% $153,029.00 100.67% 84
2007 25889 95.49% $150,085.00 98.08% 90
2008 22122 85.45% $143,333.00 95.50% 96
1-Jan to 1-Sep
# Sold Avg # Sold Avg Price Avg % Price Days On Market
2005 23466 $151,938.00 82
2006 24426 104.09% $153,097.00 100.76% 84
2007 23361 95.64% $150,664.00 98.41% 89
2008 19289 82.57% $144,808.00 96.11% 97
1-Jan to 1-Aug
# Sold Avg # Sold Avg Price Avg % Price Days On Market
2005 19949 $150,919.00 81
2006 20899 104.76% $153,353.00 101.61% 84
2007 20315 97.21% $150,588.00 98.20% 89
2008 16692 82.17% $143,433.00 95.25% 98

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Categories : Indianapolis Real Estate, Self Help, Selling your home, listing your home

Fannie Mae makes me laugh.

22 10 2008

So I write something like 15-20 offers a week on properties for investors.. Of which we get 2-3 per month under contract… Most of my offers are foreclosures or REO properties. It never ceases to amaze me how stupid their “restrictions” are, or the things that will show up on counter offers.

All of the stuff is ALWAYS in the banks favor. If you need to postpone closing, they charge you $100 p/day, but if they need to postpone closing, they owe you nothing. They wont pay any title fees that a normal seller would. They wont pay for remediation if wood destroying insects are found. Lots of goofy stuff like that.

Anyways, I got a counter yesterday and although I shouldn’t be surprised, it did make me laugh…

Fannie Mae does suck SUCH a good job at running their own business, now they are going to tell me how to run mine?!?

Below is the restriction they put on a counter offer I received this morning.

6) Deed restriction applies to non-owner occupied purchases. Buyer is restricted from selling/encumbering property for more than 120% of purchase price for a period of 3 months from date of close.

hahaha How the heck do they expect to enforce this?  The house in question has EXTENSIVE damage and will require EXTENSIVE cash to fix.. and yet if we go with the letter of the law here.. even though I may put 3 TIMES the amount of money into repairing the house that I purchased the house for.. I can’t sell it for 3 months.. hahaha So my offer on the house in question was $8000. It needs probably $30,000 in repairs. Yet, If I want to sell it in under 90 days, i cant ask for more than $9600?!?!? yeah.. whatever…

When you really look at the facts though.. It really is a non-issue because the house needs so much work, and in this market doing the repairs needed and “selling” it in 3 months would be like winning the lottery, but the audacity for them to tell me how i can run my own business?!?! hahaha

As a matter of principle I will counter and tell them to stick that restriction where the sun don’t shine.. Well, I won’t use those exact words, but you get my point…


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Categories : DIY, Indianapolis Real Estate, Indianapolis Real Estate Investing, Indianapolis Real Estate Investment, Indianapolis Real Estate Investor, Self Help

A clean explanation of the subprime mortgage melt down!

13 10 2008

A lot of people have probably seen the stick figure version of the meltdown explanation.. Lots of vulgarities, but a good explanation in its’ own right… I finally found a clean version which I can share with you, my dear readers…

Paddy Hirsch from Public Radio’s “Market Place” explains the meltdown, or more specifically how the CDO’s(Collateralized Debt Obligations) caused a lot of this problem…

Crisis explainer: Uncorking CDOs from Marketplace on Vimeo.

I found this other one from Paddy, and it is also a good primer for those not in the know… Interesting stuff!

The credit crisis as Antarctic expedition from Marketplace on Vimeo.


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Categories : Real Estate

Website for Indianapolis Crime Statistics by Address.

1 10 2008

So with the Marion County Property Tax Sale right around the corner(October 16-18), I am starting to get calls from people looking to offload properties and not send them to auction…

Received a call about a couple of properties, and I went to check them out and am okay with the price so I figured I would do the deal… I called my handyman, and asked him to go take a look before I inked the deal, and he told me.. “Don’t have to go look at them, I’ll tell you right now not to buy them!” haha He used a lot of derogatory terms that had me laughing with him about the people in the neighborhood and the fact that this area has one of the highest crime rates in the city…

Needless to say I went digging just to confirm his opinion.. Not that I don’t trust him, I just wanted to see how bad it could get!!!  It’s pretty bad, so i am debating if i want to buy and sell them or not.

Click here for a link where you can put in an address and see crimes within quarter mile in the past 90 days.


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