It is 'Buy and Hold' Time!

Cable TV is loaded with "Flip This House", "Flip That House", "Property Ladder", etc. The theme to all of these shows is buy it, fix it up, and resell it for a big profit. Like you, I am an avid fan and often a critic of what the "stars" are doing.

The key to making this work is buying the property far enough below market value to allow the repairs, carrying costs, and re-selling expenses to be paid and still leave a profit. Good flippers invest wisely, but too many would be flippers pay too much for the property. If they proceed to spend too much on the repair phase, or take too long, the profit part of the formula can disappear like a vapor. The "take too long" part has become more prevalent with a lot of flippers in the current slow sales market.

If you are considering real estate investing, proceed with caution, but do proceed. We are in absolutely one of the best buyer's market that has existed in many many years. Now is an excellent time to acquire real property at the lowest prices we have seen in a long time. BE WARNED, reselling that property at a profit is not so easy at present.

That brings us to an investment method many of today's millionaires used to build their fortune. We call this Buy and Hold. In this scenario, the current low prices allow you to buy property at the lower prices we now have due to the recent market corrections. You likely will have to do repairs, some minor, some extensive. But you should still have a solid investment; you just need to hold on to it for a little while.

Once you have the property, a good tenant will be around to make your mortgage payments until the market rebounds and prices rise again. With so many people not buying at present, they become tenants since they must still live somewhere. Since the market correction began (somewhere in 2006 or early 2007 - depending on which expert you consult) there have been millions of people creating new households, graduating from high school or college, leaving their parents home, and starting new jobs. All these life changes create housing needs. We know they have not been buying, so they must be renters.

So, to summarize keep these points in mind:
Prices are still low, mortgage rates are low, and there are still mortgage funds available. If you have good credit, you CAN get a mortgage at a very good rate.

Many people have lost their homes to foreclosure or are offering houses at bargains to avoid foreclosure, so bargains are out there. Like always, you must do your homework.

The usual large number of buyers are not buying, so they are still renting. This means you should have tenants who need housing. When they finally get off the sidelines in a year or so, market values (and interest rates) will probably be rising again and you may have a ready buyer.

So, find a good Realtor with investment experience and go find some bargains. Take a look at my September 4 blog entry:

Searching for a REALTOR®... Homebuyer's list.

In the Chattanooga, Tennessee market, my team and I will help you. Check out UpwardRealty.com
Copyright 2007

Finding the RIGHT Realtor®? Seller's version.

Chattanooga/Hixson, Tennessee

You invested well...you took care of your home...you paid your mortgage...you now need to sell. What should you look for in the Realtor® you select to get the most for your hard work? How can you realize the most dollars from your equity?

Here are some things owners should consider when searching for a Realtor®:

1. They must be full-time in the business. Only a full-time agent can be available anytime a prospective buyer calls. Buyers can be fickle, meaning if they are asked to wait, they find another option. That might mean buying another house, not yours.

2. They must have experience. This is the person that will negotiate on your behalf to make sure you get the maximum price. Experience is extremely valuable when pricing your home, only a Realtor® with market knowledge can sort out the important information from superficial information. Your agent's experience is of vital IMPORTANCE to you!

3. They must have contacts within the business. Your Realtor® will be the one person that makes sure your home is exposed to the other professionals in your market. Your Realtor® will work to resolve all inspections, appraisals, title questions and problems to get you to the closing table. It really is who you know. No closing, no equity check.

4. They must be a REALTOR® - all real estate agents are not Realtors®. However, all Realtors® are trained and tested on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously. Ask the questions and look for the "R".

5. They must belong to the MLS service in your area. This connection is vital for maximum buyer exposure. Agents who are not MLS members forfeit the #1 marketing tool in the real estate business today. Don't ever consider trying to sell real estate without MLS access by your Realtor®.

6. They must care about you. If you interview a Realtor® that doesn't listen to what you say, they may not share your priorities. Most agents do truly care about you, but you can tell when you find one who only cares about the commission. Trust your instincts. This is your advocate in the sale of your home, you must feel they are on your team.

7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. Selling your home is a stressful process and you want to know what is happening, you need your Realtors® counsel every step of the way. You need to know what the market is doing and how it is reacting to your home. If your Realtor's® story seems to keep changing, you probably selected the wrong agent.

8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. The listing agreement will establish your agency relationship with your agent. Make sure you understand how you will be represented in different options. Tennessee law allows different options, but how you will be represented must be in writing.

While this may appear to be a simplified list, these recommendations can lay a solid foundation for a successful home sale. Attention to these basics should mean you avoid the heartaches and headaches of dealing with the wrong agent.


In the Chattanooga area, my team at UpwardRealty.com would love to show you how selecting the right Realtor® can make your next move far less stressful.

The wrong agent, no matter how good the sales pitch, can become your worst nightmare.

We serve Southeast Tennessee and North Georgia.

Copyright 2007

Searching for a REALTOR®... Homebuyer's list.

Chattanooga/Hixson, Tennessee

Whether you are ready to buy your first home or you are moving up or down the property ladder, the right Realtor® makes all the difference. Before you start looking, give some thought to what you expect from your agent.

Here are some things to look for when searching for a Realtor®:

1. They must be full-time in the business. Only a full-time agent can keep up with the changing market. Sometimes the right house is only available for a very short time.

2. They must have experience - this is the person that will negotiate on your behalf in probably the largest purchase you will ever make. Their experience is IMPORTANT!

3. They must have contacts within the business. Your Realtor® will be the one person that makes sure all inspections and problems are worked out to get you to the closing table. Sometimes it really is who you know. No closing, no house.

4. They must be a REALTOR® - all real estate agents are not Realtors®. All Realtors® are trained on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously.

5. They must belong to the MLS service in your area. That connection is your source to accurate information on the most timely basis. Agents who are not MLS members, often find out about the good deal after the deal is gone.

6. They must care about you. If you interview a Realtor® and your needs seem secondary to selling you a house - run! Most agents do truly care about you, but you can tell when you find one who is working only for the commission.

7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. If your Realtors® story seems to keep changing, you probably need to change Realtors®.

8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. You are assured that the first seven (7) attributes on this list come together here in #8. This requires a written agreement by Tennessee law, so ask questions about a Buyer's Representation Agreement in advance.


In the Chattanooga area, my team at UpwardRealty.com would love to make you our customer for life. We serve Southeast Tennessee and North Georgia.


Copyright 2007

When renting no longer works for you...

Chattanooga/Hixson, Tennessee

You may have heard paying rent is like "flushing your money down the drain" or "tossing money in the trash". But, renting sometimes is the only option you have. When young people are starting out, renting is their only option. Later, some of our best memories are the times we spent renting that first pad (I think you might call it a crib now.)

As we grow financially in our personal lives, most of us dream of owning our own home. "The American Dream" drives us in that direction. We desire a place that shows our individual character, white picket fence optional. A place to raise a family and find a new meaning for a "crib".

For many reasons, we may be hesitant to buy that first home. It can be a scary process when we have no experience with home ownership. Second home buyers are far less hesitant - once you have owned a home, you don't want to go back to renting.

But, are you financially able to own? In most cases, the answer is "YES!" ... Provided you have not absolutely wrecked your credit. Having paid your bills on time, including your landlord - you should be able to qualify for a mortgage... In our buyer's market, sellers are frequently eager to assist buyers with closing costs help, which can make a deal work for a first time buyer.

Owning a home allows you to build equity. Equity is the value you have in your home above the amount you owe. Simply put, if you own a home worth $150,000 and you owe $120,000 on your mortgage, you have built $30,000 in equity. The people in America that have wealth own something, they have equity. There are some sweet income tax advantages as well.

So, are you beginning to think that maybe it is time to consider home ownership? If so, what about the first step you should take. Mortgage lenders say start with them. However, Realtors® like me, know that we are your best first stop. A good Realtor® is worth their weight in gold. The right Realtor® will be able to connect you with multiple lending sources and help you evaluate the various options each lender offers. Your Realtor® is a valuable source in finding the right lender and avoiding the wrong mortgage.

Once you know your financing options, you will know your price range. Your Realtor® will then help you evaluate your needs, such as home size, schools, neighborhood features that appeal to you, and a myriad of other options that must all come together in the right home.

Realtors® are paid on a commission basis, but we don't live in a vacuum. We must compete in the real world. A career Realtor® cannot afford to work with one-time only clients. We must build solid relationships - happy homeowners. Only satisfied buyers become repeat clients. Unhappy clients don't recommend their Realtor® to friends and family members.

When renting is no longer working for you, start with a good Realtor and get ready to begin building equity. In the Chattanooga area, my team at UpwardRealty.com would love to make you our customer for life.

Get the details on what to look for in a BUYER"S AGENT by reading my September 4, 2007 post titled:

Searching for a REALTOR®... Homebuyer's list.

(There are a number of special programs for first time home buyers and I will address these in a future blog. Most lenders define a first time buyer as "has not owned real estate within the last three years." Check back for that posting.)

Copyright 2007