4 Minutes Of Guidance For Soon-To-Be Real Estate Investors

"Most of the biggest real estate fortunes were not made in good times, but in bad times like this" Barbara Corcoran reminds us in this talk with NBC. 

It's important perspective for Americans wondering how to invest in foreclosed properties without losing their cash or their credit rating.

In the 4-minute interview, Corcoran quips on the basics and the essentials of foreclosure investing,

• "Everyone who loses their shirt loses it somewhere else."
  
• "Every big shark started small."
  
• "The house on the corner sets the tone for the block."

She also lends some personal perspective to rent rolls, the cost of losing a tenant, and finding a good business partner.

Banks are anxious to sell their foreclosed homes and that makes this an ideal time for shrewd real estate investors.  If you're new to the game, watch the video and take good notes.

How To Test A Home Smoke Alarm

According to the United States Fire Administration, there were an estimated 1.5 million domestic fires last year, resulting in more than 3,400 deaths. 

Many of these deaths occurred in homes with no smoke detectors or no working smoke detectors. 

When detectors fail, it's often because its batteries are dead or missing. Therefore, make a point to test your smoke detectors annually. 

Here's how to do it:

1. Have somebody go to the farther point of the house from the detector
   
2. Push and hold the testing button for 5 seconds to activate the alarm
   
3. Confirm the alarm is audible by all parties

You should also buy smoke detector aerosol and spray it directly into the device.  This will simulate a real fire.  If the alarm doesn't sound, the smoke detector will fail when it's needed most.  Replace the device immediately -- even if it beeps when you push the Test button.

Smoke detectors are inexpensive and essential.  Make sure the devices in your home are working properly.  Test them at least once per year. 

Higher Home Prices Ahead, Says The Pending Home Sales Index

The housing market continues to steam forward.

As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 8th consecutive monthly gain in September.

It's the longest winning streak in the history of the index and Pending Home Sales are now at their highest levels since December 2006.

A Pending Home Sale is a home under contract to sell, but not yet closed.  It's the precursor to an Existing Home Sale. 

Trade group data shows that nearly 80 percent of "pending" homes close within 2 months.  The majority of those remaining close within months 3 and 4.

When the Pending Home Sales Index rises, it tells us that market activity has picked up.  September's data confirms what we've been noticing since February -- the Buyers Market is ending.

With more homes under contract in the marketplace, homebuyers typically face one or more of the following:

   1. Competitive, multiple-offer situations
   2. Reduced purchase price leverage over sellers
   3. Fewer seller concessions

Therefore, if you're buying a home in the next several months, know that the 8-month run in Pending Sales will lead to a run in closed sales.  It should result in higher home prices, too

Indeed, we're already seeing it.

How To Test A Home Smoke Alarm

According to the United States Fire Administration, there were an estimated 1.5 million domestic fires last year, resulting in more than 3,400 deaths. 

Many of these deaths occurred in homes with no smoke detectors or no working smoke detectors. 

When detectors fail, it's often because its batteries are dead or missing. Therefore, make a point to test your smoke detectors annually. 

Here's how to do it:

1. Have somebody go to the farther point of the house from the detector
   
2. Push and hold the testing button for 5 seconds to activate the alarm
   
3. Confirm the alarm is audible by all parties

You should also buy smoke detector aerosol and spray it directly into the device.  This will simulate a real fire.  If the alarm doesn't sound, the smoke detector will fail when it's needed most.  Replace the device immediately -- even if it beeps when you push the Test button.

Smoke detectors are inexpensive and essential.  Make sure the devices in your home are working properly.  Test them at least once per year.