The Worst Advice About Real Estate I've Ever Received

Hi Friends and Fellow Investors,

   They say it's good to dwell on the positive things in life, but sometimes, it's healthy to hop over to the dark-side for a bit and reflect on some of the wacky (but with good intentions) advice I've received over the years regarding Real Estate, from buying to selling to investing. I'll share some of these events chronologically so you can appreciate the time and setting in which I was the recipient of these tidbits of advice.

   Well, a little over 20 years ago, my aunt and uncle used to come over to my apartment at the time a couple of times per week, and they always found me going over the Real Estate section looking for properties. They said I probably spend too much time rsearching and seeing properties. At one point, my Aunt suggested that I should focus on work and just slow down and enjoy life. Why was that bad advice? "Slow down" is the opposite of what a 22-year old should be doing, and "enjoyment" of life is different in every person's own eyes. I worked hard through college and graduated with the equivelant of a 90-degree average to earn my Bachelors Degree. I studied ridiculous hours (ADHD - you have to really cram the information in there!), but wow, did I party, as well! I managed to work during school and sock away some good money, and just had my first home under a Rent to Own Contract, and it was addictive. So, the breaking news on that advice they gave me is that I was very proud of my achievements in school and my initial step into Real Estate Investing. Now, fast forward, and they are now aware that my days of reading the Real Estate section of the newspaper (Pre-Internet "Stone Age" Days) have led me on the path I am on. That little "hobby" of mine has been working out pretty darn good. I make sure to bring up the Real Estate market whenever I see them, as it puts a happy smile on my face. You see that? Real Estate does bring smiles!

   During the early 90's, I had been evaluating some developments in Central Florida. I had conflicting advice from some fellow investors. I was warned by some as if I was to avoid the bubonic plague to not throw a single penny into these developments. Of course, I did not heed that advice. Good thing, because a simple investment of $2050 became an equity stake of $35,000 by the mid 90's, and I cashed out. Listen to your little voice inside.

   During that same time, I did take bad advice two times, and paid the price for it. The first time, I was advised by two investors who followed the New England market very closely via publications that they ordered in those pre-Internet times. They told me to put everything behind a property in Connecticut, so I invested. As it turns out, somebody missed out that there was a toxic waste/Sewage treatment plan not far away, and the smell kept people from buying in. The place folded and the wrecking ball came in, and I kissed my investment goodbye. Needless to say, I phased out those two woodpecker investors from my circle!

   The second time, I had my eyes on a promising piece of land in Maine, in a sectio I was not at all familiar with, but the property adjacent and surrounding tripled in value over 4 years. I needed to get in touch with some local investors, and I made contact with a friend of a friend, and this fella was like a book of everything in that section of Maine. My funds were ready to invest and I was excited. He was so dead-set against this property, saying it was rocky and hard to develop, and showed me a letter from the County actually asking him to invest in it, along with his polite letter of proposal rejection he sent to them in reply. He seemed reasonable in his arguments against the property. Fast forward all of these years, and I am still quite upset with myself for that bad advice, because I missed out on a hotel and a strip-mall, and a price appreciation of more than 25x my would-be invesment! Oddly, I lost "Mr. Maine's" phone number. It's still a mystery today as to how I could have lost it.

   So, as you can see, I dodged some bullets, but got caught between the eyes with some others. I remember a friend in the industry warning me not long ago about investing in too many different states. He failed to realize that to ignore hot properties that you have people on the ground you trust to manage it for you is akin to business suicide. Locking yourself into just one market is like putting all of your money on a winning horse. Once he breaks a leg, then what?!

   Overall, as I said in the beginning, all of this advice was done with good intentions, but still, that was just some of the worst advice I've ever received about Real Estate.

   FYI, more Epson hardware is on it's way for me to review and share with the many of you who have been quite consistent in your requests. Thanks for your patience.

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Happy Thanksgiving!
Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes - Rent to Own Homes, since 2002
"Located at the Corner of Technology and Real Estate"
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #realestate #maine #florida #investment #advice #newengland #developments #centralflorida #realestateinvesting

Buy-to-Let Deals Are Fast-Tracking UK Recovery

Hi Folks,
   Glad to be here with you.

   Today, we are going to talk "Buy-To-Let". What is "Buy-to-Let"? It's a very popular type of Real Estate Investment in the United Kingdom (the "UK"), where a property is purchased solely for the purpose of renting it out. This is similar to our version, which is a non-owner-occupied property (which oftentimes can refer to "Rent to Own"). So, now that we tied this in with some familiar terms from this side of the Pond, let's discuss how popular this investment has become.

   "For many buy-to-let looks an attractive income investment in a time of low rates and stock market volatility. Lower house prices, rising rents and improving mortgage deals are tempting investors once more", says Simon Lambert in his article, "Ten tips for buy-to-let". We will return to his tips shortly.

   In terms of had figures, David Whittaker, managing director of buy-to-let specialist Mortgages For Business, recently commented in an article ("Buy-to-let lending 'propping up' mortgage market") on the UKs' LandlordToday website, and said that that the increases in both new mortgage and remortgage approvals could have been largely driven by property investors. "Whilst buy-to-let lending to individuals has been lumped in with the total figures, we all know that it’s most likely the professional investors who are making hay while the sun shines", says Whittaker, who adds that "the likelihood is that the lending market is being propped up by the residential investment sector particularly with so much uncertainty surrounding the economy and first-time buyers largely locked out the of market.”

   In the same article, David Brown, commercial director of LSL Property Services, agreed, and commented that "demand for buy-to-let has been a key driving force behind the improved lending picture".

   Not just for Real Estate Investors

   This surge in Buy-to-Let is not isolated to just the Real Estate Investors. In a different, yet aptly titled article on the same UK LandlordToday website ("Build to rent is 'next big thing', says UK's biggest landlord"), it stated that "Developers are to be encouraged to build new housing estates where all the properties will be for rent, not sale". The article says that this would "mark a fundamental shift in the structure of the UK housing market", and that "Institutions and property companies would own, and trade, these ‘build to rent’ developments". The idea has been floated after research by Grainger, the country’s largest listed residential landlord, highlighted the huge shift in public opinion over home ownership versus renting, and the Grainger chief executive, Andrew Cunningham, was quoted in the same article that "build to rent will be the ‘next big thing’".

   Now, back to those 10 tips from the article written by Lambert, to which he refers as "the ten essential things to consider for a successful buy-to-let investment". The list includes the following; Research the market, Choose a promising area, Do the math, Shop around, Think about your target tenant, Don't be over ambitious, Consider looking further afield, Haggle over price, Know the pitfalls, Consider how hands-on you want to be. Great tips!

   This is a big thing in the UK. One of the LandlordToday articles stated that "The Government is taking the issue seriously, looking at how to encourage Real Estate Investment Trusts (REITs) in the residential sector". This is sure to deepen the market for Buy-to-Let in the UK, and the demand for Buy-to-Let in the UK should only continue to increase.

   What do you think this means for the United States? Should we be pushing the Fed to get more involved in this? It looks like they are on the right path when discussing doing something similar with the Foreclosure homes and REOs. What are your thoughts?

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #buytolet #realestateinvestment #UK #foreclosure #REO #renttoown #risingrents #residential #mortgagemarket #London #England #buildtorent #developer

A Closer Look at Expensive Luxury Rentals in NYC

Hi Folks,

   Good Morning to you all !

   We were just featured in a great article in AMNY, titled, "NYC's wealthy, leery of buying, embrace super-pricey rentals", which was authored by Graham Wood & Sheila Anne Feeney.

   The article discusses, as the title suggests, the uber-pricey rentals in New York City.

Here are the specific quotes mentioning our website:

Robert Eisenstein of HomeRun Homes, an online rent-to-own service that homeowners use to list their properties for rent when they can’t sell, said interest in the site “has spiked as people realize they need to rent to own or face the alternative of sitting and waiting it out while still making payments.” Many tenants sign 12- to 36-month leases before buying the property, he said.

“This sector of the market has been filing up fast,” Eisenstein said

      AND...

Who's renting $50,000 pads?
People who want a taste of the shi shi lifestyle before they decide to make a more permanent investment will rent luxury properties for a period of time before buying, Eisenstein said.

Head on over to the link (http://www.amny.com/urbanite-1.812039/nyc-s-wealthy-leery-of-buying-embrace-super-pricey-rentals-1.2871475) so you can read the full story on this very interesting topic.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

HomeRun Homes Purchases HomeRunHomes.com Domain Name

Good Morning All,

   We are glad to announce that after a long and drawn-out bidding war, we have purchased the HomeRunHomes.com Domain Name, and basically, this means that both Lease2Buy.com and HomeRunHomes.com can be used interchangeably to access our website.

   For all of those of you that have yelled at us for not buying it when we first started 9 years ago, the Press Release that has been circulated should explain why !

Please Read Below:

For Immediate Release:

Robert Eisenstein
HomeRun Homes
(631) 676-3609
(631) 574-2420
http://www.Lease2Buy.com

HomeRun Homes Purchases HomeRunHomes.com Domain Name

Lake Ronkonkoma, New York, April 18, 2011 - HomeRun Homes (www.Lease2Buy.com), one of the largest online marketplaces for Rent to Own Homes, has announced that they have won the long bidding process for, and were cleared to purchase, the domain name HomeRunHomes.com.

Clearing up Confusion - Disparity Between Company Name and Domain Name

HomeRun Homes was incorporated in New York State in 2002, by it's CEO & Founder, Robert Eisenstein. Eisenstein purchased the domain name of Lease2Buy.com when they first opened their doors, because, as Eisenstein says, "the keyword terms of rent and own were not available, so we reserved the name with the alternate keywords of lease and buy, thus, lease2buy".

Eisenstein says that one major issue that emerged over time was that fact that when people "hear" the name "HomeRun Homes" they usually just, "add a .com to then end of it and assume that is our website". He says that, "95% of the time, that is the case, but it's that 5% that we also need to accommodate."

The domain name of HomeRunHomes.com was owned by an investment firm and was "parked", which means that it was basically sitting and waiting for offers. Eisenstein says that after a long-bidding war against a few other investors (different investors that were trying to outbid him), the firm paid a, "substantial amount in the after-market for the domain name", which now auto-forwards to Lease2Buy.com, and thus, both Lease2Buy.com and HomeRunHomes.com can be used interchangeably to access the services of HomeRun Homes.

HomeRun Homes, which is approaching their 9th anniversary, if often billed as "The" Rent to Own Homes Marketplace", and the website unites both buyers and sellers of Rent to Own Homes via their classified ads.

For additional information on the topic, "HomeRun Homes Purchases HomeRunHomes.com Domain Name", please visit http://www.Lease2Buy.com

ABOUT HOMERUN HOMES

Founded in 2002, HomeRun Homes is a Centralized Marketplace which helps people Buy or Sell a Rent to Own Home, a Commercial Property, or to offer Home Services nationwide and globally to the thriving Rent to Own market

- END -

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

What Are The Hottest Real Estate Internet Trends?

Hi Everyone,
   Glad you could make it back with us today.

   Today, I'd like to discuss some of the hottest Real Estate trends on the Internet. Some of them will be familiar to you, and some of them will be new ones that will surely become a part of the mainstream for Real Estate on the Web.

   The first "trend", if we can even call it that, since it has become super-mainstream, is Social Media, such as Facebook, Twitter, YouTube, etc. Earl Miller of 5Star Investment Group, feels, "that the hottest Internet real estate trends are social media", and says that, "Studies have shown that 90% of all buyers that are looking for a home will start their search on the Internet.", and that, "The old way of doing showings on properties with a Realtor are really fast becoming outdated. People want to see more of the property in a smaller amount of time before they actually drive out to see it." One of the many services that capitalizes on the soaring popularity of Social Media is "Tweetlister.com", which, "takes MLS listings and turns them into tweets, then allows agents/brokers to schedule them to tweet to selected Twitter account", as explained to us by Lloyd Chrein, an individual that is familiar with the service. There are numerous other utilities and services that piggy-back on Social Media, but that would encompass an entire Blog post by itself.

   Another hot trend is the Housing Search experience on the Internet. Paul Gleger, Director of Communications Office for HotPads.com, says that he is seeing a, "Particular emphasis on creating a granular and personalized housing search experience.", which he says is being done through, "interactive map technologies, neighborhood search filters, integrating the social graph into the search process, and there is an especially strong growth in mobile tools." Along the same theme, Sam Debord, a Managing Broker/Realtor with Coldwell Banker Danforth, says that one of the biggest Internet trends in Real Estate are, "tying in localized services to MLS listings.", and that, "Every web site has home listings with photos, but the more advanced real estate sites have a suite of features from multiple vendors/providers all on one page." Debord says that, "Users shouldn't have to click around to find these features, they're all on one page.", and he gives examples such as map search, area maps, Google street view, walk score, census data, school data, and pricing history. As Debord says, "Many different data sources, but no need to search around."

   Video Tutorials are also becoming increasingly more popular, and as Christine Schwalm, an Interior Designer that specializes in home staging for Realtors says, the videos she creates are, "Nothing fancy." Schwalm says that she shoots it, "with a flip camera and don't do much to edit the footage." She informs us that she does, "A one take video that lasts several minutes that follows the realtor around the space as he/she explains the property. Home buyers know that it is fairly easy to manipulate pictures, so the videos do a more accurate job of selling the property--and featuring the realtor."

   The final trend leans more toward the lending side of the industry, and Dave Galanter, President of freeMortgageFix.com calls it, "DIY Mortgage Modification". Galanter says this is a free online utility to assist homeowners in, "preparing a Mortgage Modification Application which complies with HAMP guidelines as well as individual lender's own programs. It works in a way that is very similar to Turbo Tax, with helpful hints and prompts.", and says that he is, "quite sure it is the best assistance for the DIY Mortgage Modification Applicant on the web."

   There are some exciting trends on the Internet for those of us in the Real Estate industry. I hope these have been helpful. I'm sure we missed a few and we'd love to hear about them from you.

Have a Great Day, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com


TAGS: #realestate #socialmedia

Public Speaking on Rent to Own? Finally !

Hi All,

   Hope you are having a Great Day !

   We have had a lot of feedback and requests for us to provide Public Speaking appearances, and please be assured, we have listened to you ! In response, we have just released the following Press Release on the wires about that new service we are offering:

For Immediate Release:

HomeRun Homes
(631) 676-3609
(631) 574-2420
homebuyer@lease2buy.com
http://www.Lease2Buy.com

Rent to Own Home Executive Offers Speaking Appearances

Ronkonkoma, New York, September 1, 2010 - The President and Chairman of HomeRun Homes HomeRun Homes (www.Lease2Buy.com) has committed to speak publicly on Rent to Own, the rapid success of his company, and on business and motivational topics.

Rent to Own, Business Development, and Motivational Techniques

Robert Eisenstein, the President and Chairman of HomeRun Homes (http://www.Lease2Buy.com), who has led the company through a number of ups and downs in the Real Estate market since 2002, has announced that he will now commit himself to speak at Conventions, Real Estate Meetings, and other Business-related gatherings.

Eisenstein, in previous years, had turned down such requests, stating that he, "needed to pour 100% of himself into expanding HomeRun Homes into the one-stop shop for Rent to Own". Most recently, Eisenstein has said that there is a wealth of knowledge that he has accumulated over the past 8 years in terms of, "the rent to own market, business creation, business development, and general motivational techniques", which is all, "critical information for anyone looking to climb their way to success".

Eisenstein hold a Bachelors in Business Administration (BBA Finance '92) from Baruch College in New York City, and has both a Financial and a Technical background (Microsoft Engineer and Cisco Certified), which many have recognized as the driving force behind the success of the company.

In capturing increasingly wider Press coverage, the company was recently featured in AOL Patch, in a new American Express Magazine, in "Canadian Real Estate Magazine", and in multiple other publications and Blogs, which can all be read in the Press Center on their website.

For additional information on the topic, "Rent to Own Home Executive Offers Speaking Appearances", please visit http://www.Lease2Buy.com

ABOUT HOMERUN HOMES

HomeRun Homes is a Centralized Marketplace which helps people Buy or Sell a Rent to Own Home, a Commercial Property, or to offer Home Services nationwide and globally to the thriving Rent to Own market.

- END -

We hope that this satisfies your requests, and we certainly look forward to discussing Rent to Own and the Real Estate Market at your next convention or other venue. For more information and to reserve space, please continue here: http://www.lease2buy.com/speak.php

Have a Great Day, and Happy Rent-to-Owning !!
 
 

Mortgage Horror Story...

Hi Everyone,

Friday is upon us, and it's another sizzling one, depending on where you are geographically!

Today, I'd like to share a mortgage horror story with you. When I purchased an investment home with some partners a couple of years back, we were assured an interest rate on an interest-only/balloon mortgage. However, once we got to the closing table, the rate showed up in the documents as higher by 1/4 point. Needless to say, we were all quite furious, and the fact that the mortgage broker was not at the closing didn't help the situation(he was on vacation), so we called him on his mobile phone to voice our disapproval over this rate discrepancy. There was quite an exchange of words, however, it was kept on a professional level and just short of using expletives.

Ultimately, it was a mistake on his part, and he made good on the difference with a check to us for the difference calculated out over an agreed upon period of the loan. In order to avoid delaying the closing to have new papers drawn up, we moved forward, and accepted the above-mentioned check from his closing associate to cover a majority of our "losses". The moral of the story: Make sure everything is in writing, whether it be an E-mail from the mortgage company, or physical documents, you just cannot argue with hard copy. In this case, we had done previous closings with this broker, so we know it was an error and not malicious. Either way, "in writing" is the key. May this little story and this tip save you tons of aggravation !

Economic News related to the Real Estate Housing market is quiet next week, but as we all know, any and all economic news that is released will affect the housing market directly or indirectly. Always keep your eyes and ears open!

We have additional items/upgrades and more new features rolling out next week, so be sure to check in on Monday, Wednesday, Friday, and any other days in between for breaking news and updates. What would even be easier for you? You can subscribe to this Blog feed or you can subscribe for Blog updates via E-mail. These options are both located on top of the column on the right-hand side of this page where it says, "Subscribe To Posts" and "Subscribe by E-mail". Also remember to check out our Podcasts for Free Download in our ITunes Store at http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=373351426


We hope you stay cool, and have a great weekend!
Happy Rent-to-Owning !