What Is a Zombie Real Estate Investor? Local Records Office

Local Records Office – Olympia, WA: If you have heard the term “Zombie” in real estate investing in most cases associated with mortgages that lenders come back years later to foreclose in the event the homeowner least expects it says, Local Records Office. Actually it is a major problem in certain parts of the country and with some lenders especially in Olympia Washington. Nonetheless, a Zombie Investor is a different animal and one I am seeing increasingly more.

Zombie Real Estate Investors Are Taking Over?

I guess this came to my mind last night as I answered a call at a wannabe investors. She asked in case a specific property was a deal because Realtor® said she could “steal” it on the homeowner for $6, 000 below the listing price. The Fair Market Value in the property was $125, 000 along with the listing price was $165, 000.

The seller had paid $80, 000 quite a while ago and completed a comfortable rehab of the property which may have cost up to $35, 000. If she distributed it for FMV, she could have essentially only broken even together with holding costs. The seller is certainly entitled to generate a profit but the wannabe investor was being seduced by the agent to adopt the deal. Again, nothing completely wrong with salesmanship, but my question to the investor was, “How will you shell out the dough and what is your end-goal with it? ”

Renting vs. Investing

She thought she would rent if for $1, 500 monthly which was reasonable. The next call was to tell us that she didn’t have enough money to buy it so she would use hard money. At 13% a month the price of the money would be $1, 550/month in just interest payments or $50 over her rental income. This doesn’t take into consideration taxes, insurance and repair expenses. This actually is a method that national gurus teach to ensure that after losing money for a long time, the investor may be in a position to sell at a higher price after rehabbing the home damage from the tenants but you would have to feed a money pit for a long time.

Read more: Top 10 Mistakes Most New Real Estate Investors Make – Local Records Office

As I expressed my concern about her strategy along with the high price, she went into the “Zombie Rising Mode” of how she has been trying to find a deal for a year and been unable to do so. She has had a few “mentors” including one who, following she paid her, told her to perform nothing yet as the marketplace wasn’t right says, Local Records Office. That’s a new twist on getting help from your real estate guru!

She had turn into a Zombie Real Estate investor staggering around wanting to make anything and everything work, constantly failing with no possibility of success on the horizon and being killed off again and again by bright shinny objects.

Zombie Real Estate Investors Don’t Listen to Advice

She went on and on regarding the courses she had taken as well as ones she was considering. I call these the latest “Bright Shinny Object” (BSO) or perhaps the slow bleeding of fresh investors because these courses are well advertised and marketed, but provide no support to the purchaser. What you have to think about on any course is, “How’s that on your side? “, if the answer isn’t “great”. Keep in mind that real estate investing is important.

In summary, it may be best obtaining fundamentals of wholesaling under your belt rather than starting with exotic methods that may not yield enough results before you head broke. With wholesaling you should be able to make a steady cash flow and be able to pick and choose the best possible deals to keep for renting or for rehab projects. Otherwise the wholesalers locally will be the ones creating wealth from you.

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