No matter what area of real estate in which you have chosen to focus, if you do not have a steady stream of leads, you will not be successful.

For investors, leads will be property, people and partners. I like to start with property, because if you find a good deal, everything else will fall into place. The tenth article in this series focused on where to find properties. Some of the possibilities included:

• Listed properties on the NWMLS
• FSBO’s (For Sale By Owner)
• For Rent signs (often a frustrated seller and reluctant landlord)
• Distressed and neglected properties found through drive-bys
• Wholesale properties found by bird dogs
• Foreclosure auction properties, pre-foreclosure properties and REO’s (bank-owned properties)
• Advertisements from distressed sellers (Craigslist, for example)
• Advertising for distressed and motivated homeowners, cash buyers or equity partners.

If you do not have a steady stream of leads in your pipeline, there are several ways that you can advertise to attract them. These may include bandit signs, door hangers, flyers, classified ads, on-line ads, cold-calling, door-knocking, direct mail campaigns with postcards or letters. You may want to read a good book or two on sales and marketing to learn about the most effective techniques to generate leads. And then test and track different methods to see which generates the most quality leads for you.

In order to effectively generate leads, you must have a clear and very specific idea of the target homeowner you are trying to reach. You may get lists of homeowners from a title company for a nominal fee or from an online source such as listsource.com. For example, perhaps your target homeowner is an out-of-state owner in a three-bedroom, two-bath house which they have owned for at least ten years in the 98052 zip code, with a tax-assessed value under $350,000. Your list can and should be that specific.

If you do not have one, a good database (even Outlook or Google mail can suffice) and a good customer relations management (CRM) system are essential for the next two rain-maker activities  – lead follow-up and lead conversion  – as they allow you to keep track of your contacts and prospects. Persistence pays off in this arena! Follow up on your prospects, more than once!

As so many of our new investors are interested in wholesaling, the next article will focus on ?bird letters,? the letters you send to target homeowners with properties that match your buying criteria. Please feel free to send any sample letters you like to me at HomeLandInvestment@gmail.com and I will include them in the next article. This series of articles is a regular feature of the REAPS newsletter, and as REAPS Membership Coordinator, I welcome your feedback. Please let me know what topics you might like to see addressed in future articles for the novice real estate investor.

About the author…
Wendy Ceccherelli is the volunteer membership coordinator for REAPS. She has been a full-time real estate investor for the past six years, and is the designated real estate broker for Home Land Investment Properties, Inc. Prior to her career in real estate, she spent twenty-five years as a government arts funder. More information on real estate topics may be found on her website at www.HomeLandSeattle.com.

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

Okay, you got it right? Clean and update the bathrooms.
Here’s seven tips for inexpensive must do’s for the bath:

1. Replace the shiny chrome or brass faucets with brushed . You can get a nice modern Glacier Bay brushed nickel faucet at home depot for $34.

2. If the bathroom mirror is cracked or the silver is failing, replace the . I find nice framed mirrors for under $50 at Ross, Marshals, TJ Max or Tuesday Morning all the time. Make sure and inspect them carefully though, especially the corners. Shoppers can be  on the edges in bargain
stores.

3. Update the light fixtures. I’ve seen bathrooms where the seller has gone to the trouble and expense to replace the counter tops with granite or tile and left the  shiny brass light fixture with the round glass bulbs. ICK! A brushed nickel fixture will make a world  difference! Call me for suggestions, or to find out about discounts I can offer my clients. I’ll pause here for a moment. I have staged bathrooms, where all that the sellers did were those top three things.  bathrooms were spotlessly clean and after staging they looked very nice. But, if you really want the home to sell quickly and the Master Bath has 80?s blue counter tops, or worse a nice rose pink toilet, I strongly recommend going on to number 4.

4. Replace cracked, colored or dingy toilets and sinks with new white fixtures. At a minimum, if you have one those old spongy toilet seats, TOSS it! Ewww!  And yes,  1980 oak seat with matching toilet paper holder really has to go.

5. Reface or replace the tub if its stained cracked or damaged. In an entry level home replacing the tub and outdated tile with a nice tub surround is perfectly fine.  a higher end home, I recommend tile.

6. Replace the blue, pink or otherwise outdated laminate counter tops with tile or granite. Especially in the master bath.

7. New vinyl flooring can do wonders in a guest bath and powder room, however, if there is just one bathroom or in higher end homes I recommend tile. In a master bath with a soaking tub, I think tile is a must. It goes without saying that the bathroom should be freshly painted a
nice designer neutral like Benjamin Moore Practical Beige or Sherwin  Urban Beige or Relaxed Khaki. Staging the bathroom with a new cloth curtain, plush towels and art  add the frosting to the cake. If you would like personalized advice for  colors, fixtures or finishes for  bathroom call to schedule an appointment for a walk through . Or if you are out of the  area, I offer online consultations, using your pictures and a Webex meeting tool we can  walk through any room of your home together.

Do you have specific staging questions? Send me an email  I will feature your question with an answer on my biweekly radio show on the Chat with Women Network.
Listen in the 1st and 3rd Wednesday of the month on 1150 AM radio from 8:00am to 9:00am, or listen to past shows by going to www.stagingforcharisma.com.

About the author…
Pam Christensen is an Accredited Staging Professional Master who specializes in working with investors to help them maximize their return on investment by providing high quality staging that get results!

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

According to new RealtyTrac data, lender delays in processing home-loan defaults are slowing down the foreclosure process across the U.S. Compared to last year, average time from initial bank notice to complete seizure is now 318 days, as compared to 277 days a year ago.

Foreclosure filings are also declining. From the third and fourth quarter of 2010 to the first and second quarter of  2011, the national average for  foreclosure filings declined by 25 percent.

The drop in filings is temporarily inflating home prices. As Greg Hebner of Community Rebuild Partners states, “You’re seeing an artificial floor. If supply flooded the market without all the delays, you’d see another 10 percent price drop.” However, Washington State is bucking the trend. A report on King and Snohomish County foreclosure filings compiled by Fairplay Foreclosures shows rates here have also declined, but not as rapidly.

Though RealtyTrac shows national filings are down 25 percent, King County’s only dropped 20 percent during the same period. Snohomish County’s are down by just 14 percent. Compared to the national average, these counties have more properties in the foreclosure process, many of which are expected to come up for auction soon. “If you’re considering investing in foreclosures, this is a prime time to get your ducks in a row,” says Bill Widmer, CEO of Fairplay Foreclosures. “There’s a backlog of properties in Washington that will make it to auction sooner rather than later.” He adds that it’s also a good time to invest in traditional real estate. “As compared to much of the U.S., prices here are steadier and more accurate.”

As a full-service real estate investment firm, Fairplay is dedicated to helping all levels of investors succeed in both the traditional and distressed real estate market. It offers free online tools, personal mentorship and an exclusive database of properties, which is updated constantly to reflect any change in status of those properties. “Our goal is to bring these outstanding investment opportunities to anyone willing to take the time to learn,” Bill Widmer, CEO of Fairplay Foreclosures, says. “We provide a number of resources they can use to become savvy, successful investors. And, let’s not forget how important investors are to the recovery of the market.”

Every Thursday, Fairplay holds new investor workshops to introduce people to the basics of foreclosure investing.  Afterward, they hold their weekly Investor Café, which meets over drinks and appetizers to discuss investment strategies, home improvement, financing options and “featured properties,” selected for their excellent investment potential.

All services are free to members. Fairplay only charges a fee when they purchase a property at auction. If they choose, members can also take advantage of optional services, which include lending through Fairplay Financing, which offers competitive traditional mortgages as well as Bridge 3.0 an easy, streamlined approach to purchasing properties at auction with cash from a bridge loan. Fairplay Financing is available for any property, even those acquired through other real estate companies.

Fairplay represents clients in Washington and Oregon, with plans to move into Los Angeles County in California, Clark County in Nevada, and Maricopa County in Arizona. We encourage anyone with any interest in distressed properties to visit www.FAIRPLAY.com to sign up for a free membership, or attend one of our Thursday workshops, and prepare yourself for opportunities that will keep coming up, now and well into the future.

About the author…
Shane Gallagher is one of the co-founders of Fairplay Foreclosures and is responsible for the sales, marketing and growth of the company. His background in the real estate and financial services industries includes multiple awards and an unbroken track record of sales and revenue increases. Respected by customers and colleagues alike, Shane is known for his integrity, follow through and
commitment to excellence, which he brings to his position at Fairplay.

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

An investor who buys at the trustee’s sale is entitled to possession of the property twenty days after the sale, as to anyone except tenants who were in possession of the property at the time of the trustee’s sale.

In order to gain possession against tenants who were in possession of the property at the time of the trustee’s sale, the investor who bought the property must give the tenants a special statutory written notice saying that the tenants must vacate the property within sixty days after receiving the notice.  First, it must be provided by regular mail and second by either certified or registered mail, with return receipt requested.  The notice must follow required wording in the statute.

If the tenants do not leave the property by the end of the sixty day period after the sending of the notice, then the investor must begin an unlawful detainer case against them in court in order to obtain an eviction.  The unlawful detainer case requires a summons and complaint which must be served on the tenants and the tenants must be given time to respond, usually at least seven days.  The tenants must be named in the summons and complaint as the defendants in the lawsuit.  The investor must ask the court for a writ of restitution of the property, and if the tenant does not contest the complaint, the writ can be issued and the sheriff will then execute the writ and physically evict the tenants.  The writ of restitution is the document that directs the sheriff to restore possession of the property to the purchaser.  If the tenant does contest the complaint then the court may order the issuance of a writ of restitution after the trial.

The investor also has the right to offer a tenant that was in possession of the property at the time of the trustee’s sale a new rental agreement.  If the investor does this, what happens to the tenant’s deposit that was given to the previous owner whose interest was foreclosed?  Under the Residential Landlord Tenant Act, the tenant’s deposit is to be transferred from the foreclosed landlord’s trust account to a trust account of the new landlord.

Investors who plan their holding periods to be approximately ninety days in order to allow for all necessary rehab work to be done and the property marketed and sold will be pinched for time.  It may take almost the entire ninety days for the investor to gain possession of the property if it is occupied by tenants at the time of the trustee’s sale.  Technically the tenant who was in possession at the time of the trustee’s sale should be paying the rent to the investor who bought at the trustee’s sale, until the tenant leaves the premises.

Some investors use a “cash for keys” approach to shorten the period they must wait to begin their rehab work.  Under this technique the investor approaches the tenant cooperatively and offers to pay some amount such as five hundred dollars if the tenant agrees to move out in two weeks rather than forcing the investor to go through the statutory notice procedure and file an unlawful detainer case.  The trustee in the foreclosure should have notified the tenant that the foreclosure sale would be occurring and so the tenant should not be surprised at being asked to move, and sometimes this approach can be successful in helping the investor’s schedule to remain on track.  The foregoing is intended for instruction only and should not be considered as legal advice.

About the author…
Doug Owens practices real estate law and general business law from his office in Seattle.   He offers a 10% discount for REAPS members and he can be reached at (206)985-6679 or dnowens1@clear.net. ?

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

Between 2007 and 2010, Fairplay achieved a phenomenal 857 percent revenue growth, which placed it in the upper echelons of real estate firms, including those that specialize in commercial and residential real estate on a nationwide basis.

Fairplay’s financing services is the key factor contributing to this recognition. Inc. Magazine credited Fairplay as one of the “engines of the economy.” But while other companies on the list contributed to job growth, Fairplay has also contributed to the financial success of its clients, many of them regular people looking for a good investment.

Fairplay is able to offer quick and simple bridge financing to clients interested in
purchasing distressed properties at auction, which requires cash on the spot. Bridge loans are an important part of the process, because they can help the investor realize greater potential rewards with the same seed capital, using the power of leverage.

“Customers often come to us with cash from an inheritance or settlement, looking to buy a property at auction,” says Bill Widmer. “By using that cash as down payments for bridge loans, rather than sinking all of it into one investment, they can purchase multiple properties, diversifying their risk and increasing potential cash-on-cash return.”

Bridge loans make it possible for investors to purchase multiple properties, so if one ends up being sold at a loss, the profit from the others could make up the difference. The potential risk in investing in five properties, for example, is less than investing in just one. In the meantime, the borrower can write off the interest and depreciation costs.

Fairplay also offers traditional mortgages, which come with a much lower interest rate. After the client owns the property outright, Fairplay can immediately begin the refinance process so the bridge loan can be paid off quickly.

In addition to lending services, Fairplay also offers its members comprehensive online and personal resources to help bring even novice investors up to speed quickly, so they can invest with knowledge and confidence. They include an exclusive database with both distressed and traditional property listings, which tracks the distressed properties as they move through the foreclosure process, as well as weekly investor meetings and one-on-one coaching. Fairplay representatives will even accompany clients to the foreclosure auction to make sure everything goes smoothly.

“We started Fairplay with the goal of opening up the real estate market to everybody , ” stated Bill Widmer. “We sought to simplify the confusing world of distressed properties by giving people everything they need — from online tools to personal coaching to financing  — to make the same type of smart investments as those of us with years in the business.” If Inc.’s ranking is any indication, Fairplay’s goal has been achieved.

All services are free to members. Fairplay only collects a fee upon purchase of a
property. Fairplay represents clients in Washington and Oregon, with plans to move into selected counties in California, Nevada and Arizona. We invite you to sign up for free on our website (fairplay.com) and attend one of our new investor workshops for a solid introduction to the world of real estate investing.

After the workshop, stick around for our Investor Café, which meets weekly over drinks and appetizers to discuss investment strategies, financing options and more. We also present
“featured properties” chosen by our analysts for their excellent investment potential. It’s a good way to check out one of America’s most promising young companies and come away
with some promising investment opportunities.

About the author:
Ian Morell is a seasoned financial analyst and mortgage expert. Previous to joining Fairplay Financial in 2008, Ian served as both a loan officer and branch manager in the mortgage industry for nine years. As our fund manager, Ian brings his decades of experience to ensure our clients’ integrity and Fairplay’s continued financial strength in the open markets.

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

For clients that are real estate investors, estate planning is almost always intertwined with structuring their affairs to avoid current liability concerns and to allow for smooth management/ ownership transition in the event of disability or death. In other words, avoiding taxes at death is normally a minor issue in comparison to other estate planning objectives.

In a general sense, there are two basic methods for passing assets at death: (1) a Last Will and Testament (“Will method”); and (2) a Revocable Living Trust (“Revocable Trust method”).  Under the Will method, a deceased client’s “probate assets” will pass according to the terms of the Will. Probate assets include real estate, personal property (e.g. jewelry, cars, household items, etc.), bank accounts, business entity ownership (e.g. LLC membership units) and other property that does not pass according to a “beneficiary designation form” (e.g. retirement plans, life insurance, etc.). The wording of a Will can pass assets directly to heirs (e.g. “all of my assets to my spouse, and if he/she is deceased, to my children equally”) or can pass assets into a trust (e.g. “all my assets to my Family Trust to be administered as described in Section 8 of this Will”). The Will also names individuals that become very important at death, for example: the “Guardian” is the person who will care for the client’s minor children if both spouses have passed away; the “Personal Representative” is the person who will act out the wishes of the client based on the terms of the Will; and the “Trustee” is the person who will manage the trusts (on behalf of the beneficiaries of the trust) created under the Will. In general, the first time a person should start thinking about creating a Will is when they own significant probate assets (e.g. first home) and/or have minor children. A Will can be amended at anytime, and clients often make changes as they age and their family situation and/or assets evolve.

One of the downsides of the Will method of estate planning is that some of a client’s assets will pass through “probate” at their death. Although this legal process is relatively painless under Washington law, there are several downsides, including: (1) the deceased person’s Will becomes public record, which has the potential to raise hostility within the family, particularly if some family members have been excluded from the Will; (2) the probate process can take along time and can cost thousands of dollars to complete.

The Revocable Trust method involves creating a Revocable Trust and transferring assets into the trust. The potential benefits of this method include: (1) assets held within the trust at death will pass directly to the beneficiaries of the trust without going through probate; (2) although more expensive to initially setup, the Revocable Trust method can save probate costs at death (note: this benefit is the primary motivator for the widespread use of Revocable Trusts in states like California, where the probate costs are much higher than in Washington); (3) if the client holds real estate in several different states at death, multiple probate proceedings can be avoided (note: most states require a separate probate proceeding if real property is held within their jurisdiction  – unless the property is legally owned by a trust).

In most instances, I do not recommend the use of the Revocable Trust method for clients that are relatively young (e.g. 30s or 40s) unless the client owns property in multiple states. The reason is that Revocable Trusts not only need to be drafted properly, but also need to be funded and maintained correctly. I have had many clients tell me that they have a Revocable Trust in place, only to find out that their former attorney did not assist them in legally funding the structure. A Revocable Trust that is never funded will not result in the benefits described above.

Several other reasons why the Revocable Trust method is not always the best for some clients include: (1) if real estate held within the trust is sold and new property is acquired, the trust needs to remain appropriately funded (I have seen many situations where the new property is never legally placed into the trust); (2) the eventual probate cost savings do not outweigh the cost to create, fund and maintain the trust structure. However, for clients in their 60s or 70s with relatively fixed assets, the Revocable Trust method can make a lot of sense.

Regardless of the estate planning method used, I always recommend that my clients also have a Healthcare Directive and a Power of Attorney in place. A Healthcare Directive allows a client to decide what they would like their doctors to do if they are ever in a “permanently vegetative state.” This document can help relieve the client’s family of the difficult decisions that can arise in this very specific situation. The Power of Attorney document allows the appointed “Attorney-in-Fact” to make financial and healthcare decisions on behalf of the client if the client is ever incapacitated (whether temporarily or permanently) or otherwise unable to act. The Power of Attorney document can either be currently effective or it can “spring” into place if the client is ever diagnosed (by his or her doctors) as incapacitated. In either case, the client must be very careful not to name someone as Attorney-in-Fact that might abuse their power. For real estate investors, it is particularly important that bills are paid and properties are managed appropriately, regardless of the mental state of the property’s owner.Special estate planning considerations are also necessary for clients who invest into real estate using “self-directed IRA” (or IRA-owned LLC) structures.

About the author…
Warren L. Baker, J.D., LL.M. (Taxation) is a tax attorney with Amicus Law Group, PC in downtown Seattle and his areas of practice include estate planning, self-directed IRA tax consulting, and business transactions. Warren can be contacted at: 206-624-9410 or waren@amicuslawgroup.com.

DISCLAIMER: THE FOREGOING IS NOT INTENDED TO BE GIVEN AS LEGAL, FINANCIALOR TAX ADVICE, BUT INTENDED AS GENERAL INFORMATION ONLY. IF YOU REQUIRE LEGAL, FINANCIAL, OR TAX ADVICE YOU SHOULD SEEK THE ASSISTANCE OF A QUALIFIED PROFESSIONAL.

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

Some published authors on real estate investing recommend lease option arrangements as a good way for investors to market their residential properties to buyers who are temporarily unable to qualify for a conventional loan, but whom otherwise are satisfactory purchasers.  And such arrangements can be fine exit strategies for investors.  Under such an approach the investor collects at least enough in the option payment from the buyer to cover the real estate excise tax (yes, an option to purchase a property is a “sale” for purposes of the REET) and sets up the lease payments to at least cover the investor’s mortgage payments during the period of the lease.  The investor expects that when the buyer has repaired his or her credit by making lease payments during the option period, the investor will be cashed out by a conventional loan after the option is exercised.

Since the investor in this situation is both a landlord and a seller, the investor will naturally screen the buyers to make as certain as possible that they will be good tenants and have a reasonable chance to qualify for a loan at the end of the option period.  But what happens if, after all the investor’s due diligence, the tenant-buyer unexpectedly defaults on the rent?  Can the investor declare the option terminated, retain the option payment, evict the tenant-buyer and go on to market the property again?  A recent court case says it all depends on how the paperwork is written up.

In this case, the tenant-buyer of a commercial property under a lease with option to buy had a dispute with the landlord-seller over repairs and refused to pay rent until the repairs were made.  The landlord started an eviction case and won a decision from the court evicting the tenant-buyer.  The tenant-buyer then sent the seller a written notice of exercise of the option to buy, including the option payment as earnest money.  The seller refused to accept the notice and began a lawsuit to declare the option to buy to have been terminated.  The tenant-buyer argued that the lease and the option were separate documents and that there was no provision in the option that required the tenant-buyer to be in compliance with the lease in order to be eligible to exercise the option to buy.  The landlord-seller claimed that the lease and option were so intertwined that a breach of the lease terminated the option.  The trial court agreed with the landlord but the Court of Appeals reversed, saying that there were inconsistencies between the lease and the option that indicated that the parties intended them to operate separately.  The Court of Appeals said that the tenant-buyer still had the right to buy the property at the option price, even though it was in default under the lease and had been evicted.

It is common in the residential setting to write leases and options with an eye toward defending against arguments that tenant-buyers sometimes make in eviction cases that the lease and option are part of the same transaction which is in the nature of an equitable mortgage.   Such concerns mean emphasizing the separateness of the documents.  This case shows that there are also risks to which a landlord-seller is exposed when the lease and option are considered separate documents.  Proper wording of the paperwork can help to protect against such risks in both situations.

The foregoing is for instruction only and is not to be considered as legal advice.
About the author…
Doug Owens practices real estate law and general business law from his office in Seattle.   He offers a 10% discount for REAPS members and he can be reached at (206)985-6679 or dnowens1@clear.net.

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

Review Your Title Report For ‘Schedule A’  Concerns 

Policy Type: Ensure the Owner’s policy on Schedule A is the proper form of policy per the Purchase and Sale.

Agreement: Example of policy types are Owner’s Standard, Homeowner’s or Owner’s Extended.

Ownership: Ensure the vesting name matches your seller. If the seller is deceased, yet the title company does not vest in the estate of the deceased, look for a pending probate action as an exception to title. If there is not a probate, contact your title company to find out their requirements.

Legal Description: Ensure the legal description matches the map provided with the title report or with your Purchase and Sale Agreement.

Review Your Title Report For ‘Schedule B’ Concerns

Easements, agreements and restrictions should be reviewed by the Realtor, seller and buyer. Is there something listed your buyer can’t live with? Does the property meet the needs for your buyer for the intended use?  Ensure monetary exceptions appear to be correct. Are there valid outstanding Deeds of Trusts, judgments or liens?

Are their questionable judgments or liens that have identity concerns? Does the paragraph contain the words “question of identity”? If so, a Statement of Identity (or Identification Affidavit) will be provided and required to be submitted to the title company. Individuals with common names like Baker and Smith will often have questionable judgments attached to their name.

Is there a recorded survey as a note or exception to title? An encroachment concern may be recorded on the survey. A title company may require a survey be done depending on the type of coverage.

Is there an inspection paragraph to be cleared? A title company may require an inspection based on information found in an Exception.

Exceptions are cause for concern.  Exceptions are exclusions of coverage.

Notes are for information only. There is no question on title.

About the author…
Since 1983 Elizabeth Peterson has provided her clients with a level of professionalism and expertise that sets her apart in the title industry. Her years of experience and commitment to client advocacy means Real Estate Agents, Lenders and Investors receive the support necessary to successfully close more transactions for buyers and sellers and refinance loans.  If you are looking for a title and escrow partner you can count on, Elizabeth is here to help you provide your clients with the added measure of service so essential in today’s competitive market.  Elizabeth is a senior account manager at Chicago Title of Washington. She can be reached by phone at 206-618-6786 or send an email to:  Elizabeth.Peterson@ctt.com

“REAPS is the oldest – and largest – Professional Association for the real estate investor this side of the Mississippi. We provide education and networking resources for real estate investors, those who want to be investors and anyone who provides value to our members. Our goals are to motivate and support our members and guests through education, discussion, legislative action and networking. We host over 40 live events a year around Puget Sound and they are all open to the public. If you’ve never attended one of our meetings, just email our office at info@reapsweb.com and be our guest for free!”

Perhaps our greatest achievement this year was making the Inc. 5000 list of America’s Fastest Growing Companies. We ranked #398 overall, and #11 in the real estate category, measured by our growth between 2007 and 2010. Considering how housing prices peaked in 2006 before beginning their steady decline, it’s no surprise that Fairplay  by a phenomenal 857 percent during this time.

Fueling our growth was the increase in distressed property transactions, which we helped hundreds of our customers navigate successfully this year. These transactions are popular because they allow investors to purchase real estate at rock-bottom prices. As both a real estate company and a lending firm, Fairplay can purchase properties on our customers’ behalf while arranging bridge loans on a very tight timeline. In some cases, we have put deals together in 24 hours. Bridge loans are an important part of the process, allowing clients to purchase distressed properties at auction, which requires cash on the spot. We also offer traditional mortgages, which come with a much lower interest rate. This transitional service gives our clients a huge advantage, as we can immediately begin the refinance process into a traditional mortgage.

As Fairplay has grown, we’ve also expanded our vision beyond the Northwest. We’re currently conducting feasibility studies in Los Angeles County in California, Clark County in Nevada and Maricopa County in Arizona — all prime markets for distressed real estate that we plan to service in the future.  To help achieve our goals, we’ve added a new executive team member: Realty Sales Manager Gary Gray. Gary is the former CEO of Mortgage Reduction Group, LLC, and spent years as a consultant to real estate upper management teams developing processes and refining business metrics. At Fairplay, Gary will perform many of these same tasks, helping us achieve our vision as we grow and expand.

This year, we will continue to host our Thursday new investor workshops, which introduce people to the basics of foreclosure investing. Also, our weekly Investor Café meets over drinks and appetizers to discuss investment strategies, home improvement, financing options, and “featured properties ” selected for their investment potential.  In addition to these regular events, we’re holding two special classes. The first, titled “Maximizing Funds from Self-Directed IRAs,” will show you how to easily diversify your retirement accounts beyond the stock market by using funds to invest in real estate, all while avoiding taxes. The second class, “What You Need to Know About Title,” will address your questions about these legal documents that prove ownership of a property and often pose issues for the distressed property investor. I encourage anyone interested in learning more about the amazing potential in distressed real estate to give us a call or attend one of our investor meetings. All are free, as are our membership services, which include access to our exclusive database, online tools and personal coaching. We only charge a fee when you purchase one of our properties or borrow money.

As we wrap up another exciting year, I wish you and your clients tremendous success in real estate, and in life. Here’s to a happy holiday season and a prosperous new year.

About the author…
Bill Widmer is the CEO and founder of Fairplay Financial, Inc., and its operating entities. He has 19 years of experience in finance, management, real estate sales, investment and development. He is also licensed as a loan originator and real estate agent in Oregon and Washington.