Is there such a thing as a Rehab that is Too Big?

Many Real Estate Investors start out rehabbing properties to resell for a profit. Many of these investors eventually migrate to wholesaling or become landlords, but some become experts and just keep on rehabbing. Most rehabbers build a system and once they have it fine tuned, don’t deviate from that system. If they build a system rehabbing rental properties for landlords or for first time home buyers, then that is what they always do, because it works for them.

However, a few rehabbers make the leap from rehabbing properties in low to middle income neighborhoods to rehabbing properties in upper middle class to affluent neighborhoods. But very few move beyond that and take the step to rehabbing extremely expensive houses. And even fewer are true visionaries.

A close friend of mine, which many of you already know, Robyn Thompson, the Queen of Rehabs started out rehabbing multi-families in firs time home buyer neighborhoods in Connecticut. She then took a huge leap in faith in herself and her abilities and now rehabs multi-million dollar mansions in Florida. That is something that I hear a lot of people say is too big of a rehab, and to those people I say, you are just not thinking big enough. 

And then there are the true visionaries like Frank McKinney. Now I have met Frank one time, but I don’t know him other that through reading his book “Make It Big”. Frank Started out like many of us, rehabbing houses in lower income areas, but only a few years later, he was building multimillion dollar mansion as spec houses. He has built and sold some of the most expensive specs in history and everyone called him nuts, but he had a vision and he achieved his goals.

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Should there be a Moratorium on Foreclosures?

The new headlines catch phase is “Robo Signer”. These robo signers have been signing foreclosure documents at a rate of up to 1 document per minute. That’s 5,000 – 10,000 per month. Everyone knows that it is not physically possible for these robo signers to have read every document. That is the reason everyone is calling for a moratorium on foreclosures. Or is it?

If everyone was upset with the fact that these robo signers were not reading all the documents, then why wasn’t everyone upset that congress has passed health care and over a trillion dollars in stimulus programs while all along admitting that no one could possible read all of it before voting on it. So ask yourself, are they really upset that the robo signers didn’t read the documents. If you are honest with yourself, then the answer would have to be no.

So what is the real reason everyone wants a moratorium on foreclosures. Politics… In 3 weeks there is a major midterm election and this could be one of the most historic elections in our country. The politicians on both sides of the isle are looking for something to blame and point fingers at to make themselves look like they care and that all our problems are the banks. 

In reality, these so called robo signers have whole departments of people to create the documents and make sure that everything is correct before giving them to the robo signer for their signatures. This is how all business works. This is how congress and the president pass bills.

Now to be fair, there are reports of fraudulent mortgage documents on the banks part, but these isolated incidents are rare and need to be dealt with. For those few homeowners who were victims of falsified documents, they should end up with their houses free and clear. However, that should not cause the banks to free all foreclosures for the remaining 99% of foreclosures that were done correctly.

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