Macon

Into this new year of 2006 we are now seeing the bad decisions made by pretend real estate investors from 2005. There are too many untrained or poorly trained real estate investors in the marketplace today. January 4th 2006 we inspected 3 homes in pre foreclosure or foreclosure that were purchased by investors from the bank in 2005. These were all good money deals for knowledgeable real estate investors but not these guys.

Deal #1, Investor buys a house for $112,000. The bank foreclosed on the property for $91,000 two months prior. We passed on the deal our highest offer was $84,000 a big difference from $112,000.

Heres why: ARV is $135,000

Our profit is $20,000 notice we take our profit out first

Repairs were $19,000

Carrying & Sales Cost $9,900

Miscellaneous $2,100

Highest Offer $84,000

Pretend investor pays $27,900 too much, and now is trying to unload his mistake at pre foreclosure for $149,000 on a poorly finished and under funded house.

Deal #2, Investor buys a house for $172,000. A pre foreclosure deal we didnt even see this one coming. It was a good deal the ARV is $295,000 plenty of room to make a good profit.

The problem is this investor had too many deals in process at the same time. 3 other projects underway when he picked up this deal used the same bank on all 4 deals and personally signed each note and took title in his and his wifes names. I dont know how the other deals fell apart but this one could have been flipped for a small profit ($10,000 to $15,000) to another investor and maybe save the others.

Mistakes on top of mistakes never take title in your own name use a separate land trust, an LLC or a Corporation for each property. Never personally sign a note on an investment property to a bank. Use hard money lenders, use private lenders, use your Roth IRA, use your wifes Roth and kids educational IRA these will fund your retirement or the kids education.

Deal #3, Investor buys a house for $28,000. His first investment with an ARV of $65,000 and repairs of $11,000 the plan was to rehab, refinance, hold, and rent the property. Rental rate in this area for a 2 bedroom, 1000 sq ft houses is about $575.00 a month. Which is a small monthly income to cover your cash flow or cash on hand for your family and your business but there is more to this problem. Here with $11,000 in repairs the investor tries the cheap way to complete the job. He hires a part time general contractor who takes over 3 months to mostly complete the project. The contractor left some supplier bills unpaid and work incomplete before he quits because he wasnt paid on time. After hiring another contractor to finish the job and paying all the bills the final cost of repairs is $19,500 and 4 months work. At first glance it doesnt appear to be a major problem but with a closer inspection we find; The hard money loan works as planned. At 65% of the $65,000 ARV minus 4 points and minus miscellaneous cost of appraisal, survey, title and closing leave him about where he expected to be.

$65,000

X 65%

$42,250

- 1,690 4 points

40,560

-950 miscellaneous cost

$39,610 Investor cash for project

$28,000 Purchase cost

$11,610 Rehab money fits the plan but the actual cost of $19,500 hurts.

He started out on plan but now hes $7,890 in the hole on a project where the income when he rents the place is $110.00 a month. It will take almost six years to break even without any other consideration.

The hole gets deeper when the bank will only refinance this home at 70% of the appraised value. $60,000 appraised value @ 70% is $42,000. Plus the miscellaneous cost of application fee, new appraisal, review fee, attorney, and closing costs total $1,750 not added into the loan but must be paid at closing. Now $9,890 down and after another 2 months of no tenants the slide goes fast. He decides to sell at $65,000 but is on the edge of the war zone and a 2 bedroom home is not the most desirable home in any area.

Learn the real estate investment business. There are hundreds of seminars, books, tapes and gurus to show you the way. Join your local REIA go to the meetings talk with everyone. You just might learn something.

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see "Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters! It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars

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If you are suffering from a case of toenail fungus and you are wondering what can be done about it, there are actually several solutions that you can look at. Many people suffer from toenail fungus, mainly because they tend to provide an ideal environment in which the fungus can grow. This would include doing things like wearing shoes for an extended period of time, wearing toenail polish, and even going into public showers without protective footgear. Many people suffer from toenail fungus and many more will suffer from it at some point in their lifetime. So preventing yourself from getting toenail fungus in the first place is the easiest way to not have to deal with an infection, but if you are already suffering from a nail fungus here are some nail fungus remedies that have helped other people.

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It can be very difficult to catch a cheating spouse, and cheating spouses take advantage of this. Infidelity is likely to be one of the most painful and devastating things that can happen to you. Not knowing if your spouse is cheating on you or not is equally as painful. Infidelity can exist in your home and you can be its victim. Infidelity is an extremely traumatic experience that often times causes one's life to come to a complete standstill. Infidelity spurs 50% of couples who experience it to reassess their marriages and make changes. The possibility that our spouse will cheat is rarely considered, much less what to do if cheating occurs.

Surveys estimate that up to 37% of men and 22% of women admit to cheating and infidelity. At the beginning of an affair the mate that is cheating is more attentive to his spouse. After the affair has been going on for a while the person cheating seems to find fault with the person he/she may be living with to try to justify the affair in their mind. Some engaged in infidelity because they are lonely, others because they want to escape the monotony of marriage. And if a cheating spouse detects suspicion, he/she will adjust his/her behavior to better hide and conceal the infidelity. A great deal of energy is expended by cheating spouses and those involved in infidelity to keep their affair hidden.

Here are some little known facts about infidelity and cheating:

The Kinsey Report showed that by the age 40, 26% of married men had had an extramarital affair.

Fewer than 10% of people having affairs divorce their spouse and marry their lover (of which 75% of these marriages end in divorce).

The Hite Report on Male Sexuality of 1980 found that 72% of men married two years or more had had an extramarital affair.

Approximately 15% of women and 25% of men have more than four affairs during their married lives.

70% of MARRIED WOMEN do not know about their spouses' infidelity.

54% of MARRIED MEN do not know about their spouses' cheating.

50% of MEN who feel they have a cheating spouse ARE correct.

One-third of divorce litigation is caused by infidelity.

Unfortunately, once someone seriously suspects infidelity, more often than not, their suspicions are correct. Women are not nearly as inclined to engage in infidelity purely for the sexual gratification. There have many cases of a wife cheating on her husband as revenge for his infidelity or believed infidelity.

Signs Your Spouse is Cheating

Signs of a cheating spouse can sometimes be easy to spot, but not always. Spouses not only exploit their partner's desire to trust, there are few hard and fast signs of infidelity. Here are a few things to watch for if you suspect your partner is cheating:

Cheating husband comes home with lipstick on his collar and says a colleague accidentally bumped into him.

Cheating husband comes home late and you feel like "being romantic" and he tells you he has a headache.

Cheating wife starts acting like a teenager who has a crush on the quarterback.

Cheating wife says that she loves you, but doesn't act like it.

Cheating spouses might lose their interest in everyday activities like taking kids to school or spending time with them, taking care of the garden etc.

Your spouse has unexplained credit card charges on their credit card account.

Your spouse becomes more attentive to his/her personal appearance.

You noticed perfume odors on your cheating husband's clothes.

Your cheating spouse whispers on the phone.

Cheating spouses may demand more or less sex.

Cheating spouses begin to appear distant and irritable.

Cheating spouses suddenly develop uncharacteristic interests.

Cheating spouses usually make/receive a lot of calls using their cell phone.

If you checked even one of these signs of a cheating spouse, your marriage may be suffering some degree of infidelity. You've probably bent over backwards to save this marriage, made excuses for your spouse's behavior and tried to look the other way. If your marriage is being damaged by a cheating spouse, there are ways you two can recover from that infidelity. It's most likely the case that the cheating spouse was unhappy with the marriage and thus distracted him or herself with the affair. The more honest you can be with yourselves and each other, the greater chance you'll have at reestablishing trust and commitment in your marriage.

So, how can you catch a cheating spouse?

Catching a cheating spouse or "significant other" requires objective thinking, and a cheating spouse's worst fear is getting caught. A cheating spouse will almost never admit to infidelity, unless presented with evidence to the contrary. Despite these problems, there are several practical methods for catching a cheating spouse. To move on with your life, you must deal with the nightmare of suspicion and doubt caused by the infidelity of a cheating spouse.

So unless you are absolutely certain that your partner is not having an affair, please visit http://www.sammaddox.com/cheater.htm to find out how to deal with your cheating partner.

A future without infidelity begins here.

So hold your head up high and good luck to you as you confront your cheating spouse!

Sam Maddox is a freelance photographer and writer. For more information on infidelity, visit http://www.sammaddox.com/cheater.htm