Happiness and Foreclosure

October 13, 2017 Facebook Twitter LinkedIn Google+ Online Auction

It is becoming more and more visible that our state of happiness varies with the economy, now we can say that it may depend on the foreclosure crisis.

We are happier in wealthy times and we just do not go well when the economy is shaky, when foreclosure can affect our property as well. A U.S. survey showed that Americans’ mood deteriorated in December compared to November 2009 because of the worries caused by the possibility of job loss on the background of the increasing number of foreclosures.

However, things are not so simple, and most of the times happiness is not directly proportional to money. It seems that our state of happiness rather depends on our relative wealth. That means on how much money we have in comparison to our neighbor, than absolute wealth. I would insist a little on this idea.

Human nature can be very low sometimes; it can be so easily lured by material assets. They want to have a great house because their neighbor, who was the silliest in their class, has just built a new house.

They are not aware of the neighbor’s money sources, but they know they need a loan, and they want that house, no matter how much they have to pay for it. It sounds rather stupid, I am sure. Even if it is obvious I must add that if people had not been attracted to wealth, to relative wealth, maybe the foreclosure crisis could have been avoided.

In addition, researchers have found that, while rich countries are happier than the poor are, their happiness does not necessarily increase as they accumulate more. One explanation could be that people’s expectations increase with wealth. Moreover, material excesses can cause material wellbeing, and the vicious circle seems to be never-ending.

Here are some tips for those people who consider themselves unlucky because of the foreclosure crisis. Those who feel unhappy and affected by the economic and foreclosure crisis can try the following strategies proposed by “experts in happiness”:

1. Do not forget about self-esteem! Get enough sleep, enough exercise and eat healthier than before.

2. Be more generous – a generous gesture reminds you that you still have much to offer, even when they know you are a little poorer.

3. Use your time and money for enjoyable activities too – travel (low cost flights), cooking with friends, join dance classes. You do not need to a pay rise to learn something new that can help you progress, like a new computer program, a foreign language, a new hobby.

4. Invest in relationships with loved ones. With little money, you can make a trip to see your parents or otherwise to spend a weekend together with your beloved one.

5. Remember things that you are grateful for. For example, if you lost your job, remember the other dreams that have come true, like living in town or getting married to the right person. It does not mean to minimize what is happening, but not to focus only on this issue.

Karen Anne, has been working on CheapHomesListings.com studying the foreclosures market, helping buyers on the finer points of foreclosed homes.

122: How I have Been Getting Great Deals on Investment Properties

Here are all my podcast episodes: https://investfourmore.com/category/podcast/

So far, I have bought 25 properties in 2017: 23 flips and 2 rentals. This is buy far the most properties I have ever purchased in one year, and I still have a few months to go. For me to be able to buy that many houses and commercial properties, I have had to expand the way I find deals. I have bought properties from the MLS, wholesalers, Zillow, direct marketing, networking, and auctions—all this year. On this episode of the InvestFourMore Podcast, I talk about how I get deals from all of these sources. I also discuss how the ways I find deals have evolved over the years.

How did I start buying deals early in my career? I started working with my dad right after college in 2001. He occasionally flipped houses and had always found them at the local Public Trustee Auction. I helped him expand the flipping business by purchasing more properties. One way we did that was by expanding the way we found deals. We started to buy properties from the MLS, and it is a good thing we did because deals at the foreclosure auction dried up. More investors started to buy at the auction, which pushed prices too high for us to get a good deal.

How to get a great deal from the MLS.

After I bought the business from my father, I expanded how I found deals even more. I found wholesalers, started direct marketing, and looked for other off-market properties.

How to buy real estate below market.

Can you still get a good deal in today’s real estate market? Obviously, I can still get a good deal in today’s real estate market since I have bought 25 houses this year, but many people claim finding deals in their market is impossible. Fortunately, the my Colorado market is one of the hottest in the country. In my town  of 100,000 people (Greeley), we have routinely had less than 100 properties for sale in the entire town. That is an incredibly low amount and makes finding deals tough. However, I am still buying flips and rentals in the area, and I have not sacrificed my profit margins. I have bought 8 of my active 19 fix-and-flip properties from the MLS. You can get a great deal in any market if you know how to find them. In this podcast, I talk about how I find deals and how I negotiate with sellers to get those deals.

To see all my active house flips, check out this page.

How have I learned new techniques to buy more properties? There are ups and downs in the real estate business. When I was relying on just the auctions the MLS to find deals, it was hard to know how many deals I would get each month. Some months, I would buy five houses, and other months, I would buy none. I knew if I wanted to have a consistent business, I needed to expand how I find deals. Here is what I have done in the last two years to get more deals:

Buy from wholesalers: Finding good wholesalers is tough, but they can be an awesome source of deals when you find the right one. Four of my 19 active flips were bought from wholesalers, and I was buying many more earlier in the year. Use direct marketing: I used direct marketing a couple of years ago with some success. I did not like the postcards I sent out or the angry calls I got. This year, I was approached by a wholesaler and flipper who helped other investors use direct marketing. He created envelopes, letters, a list, and even takes calls for me. The best part is the notes are sincere, and I no longer receive angry calls! Networking: I get a lot of deals from other real estate agents, professionals, and even friends of people I have bought houses from. I always go above and beyond to do business the right way. Other people see that and are comfortable referring sellers to me. Other sources: I have also bought for-sale-by-owner properties from Zillow and Facebook this year. There are deals everywhere if you know how to look for them. How I am able to flip 20 houses at once.

How can you find good deals? In the podcast, I go into more detail on how I have found deals from all these sources. I also include more details in my books:

Build a Rental Property Empire: the no-nonsense book on finding deals, financing the right way, and managing wisely. How to Buy a House: What Everyone Should Know Before They Buy or Sell a Home. Fix and Flip Your Way to Financial Freedom: Finding, Financing, Repairing and Selling Investment Properties. The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property I also created a video course that has over 2 hours of training on how I find deals. Not only do I cover the details on the sources I am buying with now, but I have more information on HUD, HUBZU, and other auction sites. You can use Deal50 to get 50 percent off the course.
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