Month: March 2010

by Tim Herriage Tim Herriage No Comments

Crazy week running three rehabs

Have you ever had one of those weeks that you feel like you got a lot done, then you sit in front of your computer and see there are 700+ emails waiting for you over the weekend?

That was what this week was like for me.

We are finishing the house in North Dallas this weekend, starting our second week at the Hazelwood project, Wrapping up Valley View, and just started Green Hollow on Friday.  On top of that, I have repairs going at two of my rentals.

Just another day, another dollar!  So, that being said, it sure is hard to keep track of all of the expenses.  I keep a project tracking spreadsheet, and try to enter the expenses daily.

Do you have any suggestions on how to track expenses when running multiple projects? 

Tim Herriage
DFWInvestors.com
tim@new2020rei.wpengine.com
214.607.1227

by Tim Herriage Tim Herriage No Comments

Keys to Passive Investing Success – Part 1

When it comes to real estate many people fail to consider passive investing as a useful strategy.  The truth is without passive investors many of the world’s largest real estate transactions could not be possible.  Closer to home passive investing is a practical strategy for those who lack the time, knowledge, skill or interest to actively pursue and build a real estate portfolio.  So let’s face it, unless we are born into money investing our hard earned dollars properly is the only way to create sustainable wealth.  The old joke “JOB = Just Over Broke” is not far from the truth.    Read More »

by Tim Herriage Tim Herriage No Comments

Mortgage Companies and Foreclosures

I have a client that had his pay cut in half in October.  He got behind on his mortgage, and slipped into foreclosure.  So here is the deal.  I can't imagine a private lender in North Texas making this decision.  But big bad Bank of America has FHA insurance, so they don't really care!

As of February 20th, my client got six months behind.  Not six straight, just six that were rolling 30.  On February 25th he mailed a payment of $1,600.  Apparently the mortgage company sent the property to the foreclosure attorney's on February 26th.  The representative he talked to told him to send that payment, and an extra one in March.  Here is the crazy part of it:

 

Clients past due balance:  $9,320
Minus the Payment sent:  $1,600

Amount due:                  $7,720

Amount client has to pay:  $3,200

 

Here is the kicker:  The big bank says the client has to pay the entire balance.  They will not accept what he has to pay, and even state that they MIGHT send back the $1,600 he sent in.  They said that is “under review”!

Then, they tell me the absolute best part!

This is an FHA loan.  We can't accept reinstatement agreements on those.  If it were a different loan, we could work something out.

I will translate:  We have government insurance on this loan, and have no incentive to accept anything less than all of it.

I can't imagine any business man/woman in America turning down $3,200, and sending $1,600 back to someone that is trying to make good on their commitment.

This is absolutely ridiculous.  The bottom line is, our government “insurance” allows these mega corporations to act with no consideration for better business, because if they screw the taxpayer, the taxpayer still has to pay them to do it!

Send this to someone, and let them know how backwards the mortgage companies have become!

By the way, that is just the way I see it!

 

Tim

Tim Herriage
DFWInvestors.com
tim@new2020rei.wpengine.com
214.607.1227

by Tim Herriage Tim Herriage No Comments

Too many chiefs

In this day and age, there seems to be too many chiefs, and not enough indians.  It seems to be the case everywhere you look. 

The problem with a lot of contractors, is that they want to be the boss.  They want to have a helper for everything, and be the one that can disappear for two hours to Home Depot to get a piece of sheetrock.

Be careful hiring a contractor that wants you to pay him to supervise work, that you are already supervising!  I have found it is OK to ask contractors at the beginning of the day, “What are you working on today?”  Watch for buzzwords like, “we are going to” and “I think he ought to”.  These are clear indicators that the contractor you are talking to wants to be in charge, or even worse, thinks he already is!

Now, that is all well and good if you need a foreman/supervisor.  There are many people that do!  If you are past the point of needing a supervisor, then it might be time to let certain people go!  It is a hard decision, but a job comes in a lot closer to budget, if there aren't too many people wanting to be the boss.

Assert yourself, come up with a budget, and stick to it.  If your contractor tells you things are going to cost more than you planned, ask him why!  A lot of times, the charges just aren't justified.

Then again, that's just the way I see it!

See you online,

 

Tim

Tim Herriage
DFWInvestors.com
tim@new2020rei.wpengine.com
214.607.1227

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