Local makes good as businessman and national best-selling author

Steve Berges (right), a 1977 graduate of La Porte High School, receives a plaque with his son, Philip, after the pair earned their black belts in Karate.

By SUE STOUT, Special to The Sun

Published:

Monday, April 28, 2008 1:57 PM CDT

Steve Berges has learned the great lesson of success: "The key to success and anything you are doing, like going to school, is your willingness to persevere and the diligence to apply yourself."

A 1977 graduate of La Porte High School, Steve Berges is now a national best-selling real estate author and successful businessman.

With his headquarters located in Michigan, Berges owns Symphony Homes, the home of the original trade-in, trade-up program. The program allows you to trade in your existing home and purchase a newly renovated or newly constructed home.

Berges is the author of eight books, two with second editions, that explains to others how to use OPM, the 'other people's money,' method.

Born in Huntsville, Ala.,, Berges' family moved to La Porte in 1965. He is the son of

Hermann Berges and the late Eleanor Berges.

"Growing up as a kid, Monday was family night. We loved music and my sisters and mother would play the piano. I played the trombone through my freshman year and we would gather around the piano and sing", he said. "I really developed an appreciation for music."

Steve is an inspiration to his family and especially to his three sons.

"My oldest son plays the trombone and we both have black belts in Karate," he stated.

After graduating high school in 1977, Berges entered the Air Force and served as a Crew Chief Flight Mechanic, primarily active at Poke Air Force Base in North Carolina. It was then that he bought his first home after being inspired by author Mark O. Haroldsen and his book, "How to Wake Up the Financial Genius Inside You."

He took real estate classes, earned his broker's license and worked part time for Century 21. He was 21-years-old.

After being honorably discharged from the service, Berges entered Lee College and graduated first in his class in business management. He then went on to the University of Houston-Clear Lake and earned his bachelor's degree in finance, graduating in 1992, and also earned his MBA at Rice University, graduating cum laude in 1994.

While Berges was attending school, he began buying houses in Baytown and developing rental property. By the time he was working on his third house, he was a newlywed and working full time.

A transition in 1998 had him focused on renovating apartment buildings and reselling them. Some of these buildings were located in the Houston area.

With his wife's family in Michigan, Berges made the move north and soon began writing his best selling novels. He has produced several inspirational CDs and also hosts a Saturday morning radio segment on WFBE 95.1 entitled "It's a new day in real estate." The segment features upbeat and optimistic topics about getting through difficult times. He calls them "pearls of great price."

"There have been so many times in our life when we feel like throwing in the towel," Berges said. "But the willingness to stick it out and muscle through the challenges, and not succumb to adverse challenges, is the key. We must take those opportunities to strengthen ourselves. If we have the right attitude in the end, we will be triumphant and strong. It doesn't feel like it when you going through it, but in the end, the clouds will dissipate and the sun will shine again. At some point we will be better and be successful whether in school or business."

He owes his father, Hermann Berges, credit for being the one who has helped him the most, and keeping him spiritually grounded. His mother, he said, "inspired me to set my sights high and encouraged me to get an education."

You can log in to Symphony Homes and click "The Value Play" icon to view listing of Berge's books and CDs.

Builders bank on location

Ceremony marks opening of new Holly Twp. sub

FLINT

THE FLINT JOURNAL FIRST EDITION

Friday, October 19, 2007

By Matt Bach

mbach@flintjournal.com • 810.766.6330

QUICK TAKE

Riverside North of Holly

What: A new subdivision developed by Silverman Development and Davison-based Symphony Homes.

Where: Off Grange Hall Road between N. Holly and Fish Lake roads in Holly Township.

Features: It has 84 lots. So far, six homes have been built.

Prices: From $150,000 to low $200,000s.

Details: (810) 658-3600 or www.symphony-homes.com/holly.htm.

HOLLY TWP. - Steve Berges of Symphony Homes knows about the sluggish housing market, but he chooses to focus on the bright side of things. So there he was this week smiling as he and fellow members of Davison-based Symphony Homes officially celebrated the opening of their newest residential development - Riverside North of Holly in Holly Township.

"Instead of focusing on what's wrong with Michigan, we prefer to focus on what's right with Michigan," Berges said.

"Our outlook of the local economy is perhaps much more favorable than that of others."

Berges sees the many home for sale signs throughout the area, but he also sees the new $600-million McLaren Health Care Village at Clarkston currently under construction at Sashabaw Road and Bow Pointe Drive.

He said that project is expected to create 3,000 to 4,000 new jobs. That project is just 10 to 15 minutes south of Riverside North and it should have a positive impact on the area and the subdivision.

"Surely we will be well positioned to capitalize on that expansion," Berges said.

The company had a ribbon cutting ceremony this week at Riverside North. The site has 84 lots that will be available. Completion is expected to take three to five years.

The project is being done in conjunction with Silverman Development, said Berges, Chief Financial Officer for Symphony Homes and Preferred Mortgage.

Construction started in April on the first new home and the company has sold five out of six new homes that have been built there. The sixth home is the company's model, the Symphony 1482, Berges said.

He said company officials are optimistic about making the project a success despite the area economy for several reasons. Those reasons include a good location five minutes west of I-75 off exit 101 and 10 minutes east of US-23; affordable price range starting from $150,000; professionally developed community by Silverman with wooded home sites available; low Holly area tax millage rate; close proximity to major employers, shopping, recreation; and an excellent school system with low student/teacher ratio and a new high school.

"The only thing holding many of these families back from purchasing a new home is the need to sell their existing house," Berges said.

To address that concern, Symphony Homes has created a trade-in, trade-up program where Symphony will either sell or buy a person's existing home in exchange for them buying a Symphony home.

Symphony Homes was founded in 2001 by Berges and Don Mahoney, the company's Chief Executive Officer.

They have over 25 years in the real estate industry and have built the company into one of southeast Michigan's fastest growing new-home builders. The company has grown from zero sales in 2001 to a projected $10 million-plus in sales this year, according to company officials.

The company has more than 30 employees today.

Symphony Homes has other developments in Burton, Clarkston, Davison, Goodrich, Grand Blanc and Lake Orion.

Work on subdivision to start in summer

Development will feature upscale homes, condos

DAVISON TOWNSHIP

THE DAVISON FLAGSTAFF

Sunday, June 04, 2006

By Jerry Ernst

COMMUNITY STAFF WRITER

DAVISON TWP. - Mains will take the place of reins, and utility cables will replace stables on the former grounds of an equestrian center east of Davison.

Construction of a subdivision called Summerwood is expected to start in midsummer, said officials at Davison-based Symphony Homes, developer of the 70 acres north of Davison Road.

Symphony Homes, a Real Estate One affiliate, will eventually build 70 mostly upscale homes and 106 condos a mile east of M-15, said Jen Bongiovanni, manager of marketing and inside sales for the 5-year-old company.

Symphony has received approval for its plans and is awaiting only permits for utilities, said co-owner Steve Berges of Lake Orion. He expects to receive those by June.

Berges said Summerwood homes will resemble those in Laurel Heights, another Symphony subdivision. Laurel Heights, in north Davison, opened for business about six years ago and is within three houses of completing its 60-home first phase, he said.

Black Creek, a pond and a Colorado blue spruce tree farm lie within the Summerwood acreage. A 34,000-square-foot equestrian center in the back of the property probably will be converted into a community center, Berges said.

Parcels will be one-quarter to two-thirds of an acre and be served by municipal water and sewer service, natural gas lines and cable television, Berges said.

The first phase of construction will be condos, nearly all built as fourplexes and priced from $148,000 for a 1,275-square-foot unit to $198,000 for a 1,815-square-foot unit.

The second phase will be construction of up to 30 luxury homes of 3,200 to 4,800 square feet, ranging in cost from more than $400,000 to more than $700,000.

Another 40 homes priced between $216,000 for a 1,715-square-foot ranch and $288,000 for a 2,707-square-foot, two-story house are to be built during both phases, Berges said.

Purchase prices include lots and landscaping.

Berges expects two-thirds of buyers to come from within a 25-mile radius. The condos will cater more to retirees and families, he said, while young couples to families are likely to be drawn to the less expensive homes.

Symphony Homes, which is co-owned by Don Mahoney, has built six subdivisions: Wakefield Woods in northeast Grand Blanc Township, Goodrich Meadows in Goodrich, Park Island in Lake Orion and Hawkshire Estates and Pine Creek Estates, both in Burton.

Another one is in the works in west Genesee Township, Bongiovanni said. Development of Summer Breeze is expected to begin this fall on the southwest corner of Carpenter and Belsay roads, she said. Its 80 single-family homes will be like those in Summerwood, excluding the most expensive of the Summerwood houses.

More details: (810) 658-3000 or www.symphony-homes.com

***

jernst@davisonflagstaff.com • 810.766.6197

Robert Bruss: Book reveals little-known foreclosure facts

The Complete Guide to Investing in Foreclosures," by Steve Berges (AMACOM-American Management Association, New York), 2006, $17.95; 184 pages; Available in stock or by special order at local bookstores, public libraries, and www.amazon.com.

The pros and cons of investing in foreclosure properties

Robert Bruss, Inman News
Published December 30, 2005

A few days ago, while cleaning out a file cabinet, I found a copy of my book "How to Earn Big Profits from Foreclosure and Distress Properties," which I wrote in 1992. It has been out of print for years, so don't try to buy it. As I glanced over the book, I was shocked at how much has changed since then and how much easier it is today to find and profit from foreclosures.

Although the basic foreclosure procedures remain virtually unchanged, thanks mostly to the Internet, it has become much easier today to find and profitably acquire foreclosed properties.

While recently reading an excellent new book on this topic, "The Complete Guide to Investing in Foreclosures" by Steve Berges ($17.95, AMACOM), I learned approximately 1 out of 22 houses is in the foreclosure process. As I drove down the street yesterday, when I counted 22 houses, I asked myself, "Which of these owners is behind in their mortgage payments?"

Of course, not every house or condominium that enters the foreclosure process goes to a lender's foreclosure sale. Especially in the last few years, thanks to a robust real estate market in most communities, the majority of houses were either sold or refinanced to prevent foreclosure losses.

However, as mortgage interest rates slowly rise, and fewer buyers can qualify for new mortgages, the number of home foreclosures is expected to rise in 2006. But good times or bad, there are always foreclosures. Somebody profits from every foreclosure sale, and it might as well be you.

Foreclosures happen in all neighborhoods, ranging from the very best to the very worst areas. Personally, I've acquired properties in all stages of foreclosure, usually with little out of pocket cash.

The start of a foreclosure occurs when a borrower fails to make their monthly mortgage payments for one or two months. After 45 days or so, if the borrower doesn't respond to the lender's default letters, most lenders begin the foreclosure process.

Although some borrowers stall their home loan lenders, most realize failure to reinstate the loan can be a costly mistake. Here are the three basic foreclosure steps, and the bargain-buying opportunities:

1. The lender records a lis pendens lawsuit or notice of default. The lis pendens lawsuit is used if a mortgage is involved, whereas a notice of default is recorded when the lender's security instrument is a deed of trust. The lis pendens lawsuit often results in a judicial sale of the property. But a notice of default can result in a non-judicial trustee's sale.

However, the borrower usually has three to six months to cure their loan default and reinstate it before the property goes to a foreclosure auction. This reinstatement period creates the first opportunity for a home buyer or an investor to contact the defaulting owner to see if the property can be purchased, often at a bargain price for a quick sale. Some defaulting homeowners are willing to sell for just a few thousand dollars of their equity so they can "move on" with their lives.

Because time is of the essence, foreclosure buyers during this reinstatement period usually purchase "subject to" all existing liens, such as a second mortgage, mechanics' lien, property tax lien, judgment lien and IRS income tax lien. A purchase during this "pre-foreclosure period" enables the buyer to obtain title insurance so there are no title surprises.

2. The foreclosure auction. Frequently, a property is "over-encumbered" with total mortgages and liens that exceed the property's market value. In that situation, it doesn't pay to buy during the pre-foreclosure reinstatement period because the defaulting borrower has little or no equity.

In that situation, if the borrower doesn't cure their default, the best time to buy may be at the foreclosure auction. The big advantage is most junior liens recorded after the obligation that is being foreclosed are wiped out by the foreclosure sale.

However, unpaid property taxes and IRS income tax liens are not wiped out.

Disadvantages of buying at the foreclosure auction include a) no opportunity to inspect the property interior, b) there's competition from other bidders; and c) cash (or cashier's checks) are required.

3. After the auction, if the title goes to the foreclosing lender. As frequently happens, no bidders show up at the foreclosure sale. The title then goes to the foreclosing lender.

Institutional lenders then call it REO (real estate owned) property, which they usually want to unload quickly, sometimes at a bargain price to mitigate the lender's loss.

My personal technique for buying REO property from lenders is to immediately send a FedEx overnight letter after the foreclosure auction to the lender's president with an offer to buy the foreclosed property. I enclose a substantial deposit check to show my sincerity. Although my FedEx letter has never reached the lender's president, it does get to the REO or appropriate department.

In many cities and counties, there are local legal and private subscription newspaper lists of foreclosures. Many of these lists now are available on the Internet.

Diary of a Real Estate Flipper

Flipper talks to rehab expert Steve Berges

Friday, October 14, 2005
By Alison Rogers

Like most people who work at desks for a living, my husband is slightly suspicious of my new freelance lifestyle. He called me the other day – a day when I was supposed to be looking at houses – and he heard the TV on in the background. "What are you doing, hon?" he asked.

Perhaps a result of the 72 straight hours of kidding I had to endure about that, I thought I'd do some nose-to-the-grindstone work: I put down the remote and picked up the telephone.

The nice guy at the other end was Steve Berges, a principal at Real Estate One Symphony Homes, and a builder/rehabber/investor extraordinaire. Steve has been investing and writing about it for 25 years; I had read his "101 Cost Effective Ways to Increase the Value of your Home" (Dearborn) and thought it was one of the best "bang for your buck" books I'd ever read. So I thought I'd ask him what does (and doesn't) work.

Whether or not you plan to sell, smart home improvements can increase your home's equity, add resale value and, perhaps, lighten your future tax burden.

"It's all about finding out what your home value is," says Willie Miranda, president and CEO of Miranda Real Estate Group Inc. "A lot of people try to be in tune with it, because they want to know what they're worth."

But don't go gutting your kitchen or pouring that in-ground pool just yet. Not all upgrades and renovations will add as much value as you might assume, so it's important to research which improvements will best increase your bottom line.

According to one of the most widely watched annual surveys -- The Cost vs. Value Report produced by Remodeling magazine -- minor kitchen and mid-range bath remodels offer the best return (more than 90 percent of the cost can be recouped based on national averages in 2004), as does replacing your home's siding. Adding a sunroom or upscale master suite, however, may only net you about three-quarters of what you've spent, according to the survey.

"When we're working with buyers, and we're out in the field, they tell us they want upgraded kitchens, baths and finished basements," says Miranda. "There's been such a growth over the last five years, and with interest rates still low, people are able to buy more home (for the money)."

Adding more square footage by converting an attic or adding an addition, or opening up a room by knocking down a wall can also pay off, according to Steve Berges, author of "101 Cost Effective Ways to Increase the Value of Your Home." And increasing value doesn't necessarily mean decreasing your bank account.

"The most cost effective (improvements) tend to be cosmetic improvements," says Berges, whose mantra is "visibility adds value." "The more visible your home improvement is, the more value it will add to the home and the more you'll be able to sell it for," Berges adds.

The best place to start, says Berges, is outside. If the general exterior is unkempt, if there's trash or debris or an old boat outside, those types of things don't bode well for the house or neighborhood," Berges says. Your home has to be inviting from the outset, and you don't have to shell out a fortune to make it look sharp.

Clean up any junk, keep the grass mowed and trim any overgrown hedges or trees that may be obstructing your home. And if the exterior paint is starting to peel, slap on a new coat of light-colored paint. 'These things are low-cost, easy to do and just require a little elbow grease," says Berges. "It's all about creating more of a bright and cheery, not dark and dreary, look."

The same principles apply to the home's interior. Two-tone paint, decorative trim, classy kitchen cabinets and modern counter tops and appliances are things consumers can see, and thus be willing to pay for.

"Our experience has shown that while most consumers say that it is nice to have a foundation, for example, that was recently repaired, there not willing to pay more for it," says Berges. "You want it to be built solidly and you expect it to be, but at the same time, most don't know or care if a No. 2 or No. 3 grade stud is used." Same goes for a new septic system or plumbing. They won't raise your bottom line, so stick to more conspicuous, cost-effective upgrades, Berges says.

A fresh coat of paint and new lighting fixtures are easy, inexpensive ways to spruce up a home's interior, says Berges. And don't ignore the dust, dirt and mold that may have collected over the years. Believe it or not, a deep cleaning can translate into more cash in your pocket.

Whatever you do, don't go dumping your life's savings into your home if you plan to put it on the market soon, says Berges. It is possible to over-improve. "You want to conform to the neighborhood and the market you're in," Berges recommends. "If all the neighbors have the standard shingles for the roof, you don't want to put an expensive tile shingle on. You'll never recoup the cost." If you think a swimming pool will spark some interest in potential buyers, think again. It won't necessarily elicit more interest.

Even if selling isn't on your agenda just yet, home improvements you tackle now can pay off down the road if you do decide to sell. If the improvements you make qualify as "capital improvements," things that permanently enhance your home's value or prolong its life, you may be able to reduce possible capital gains taxes when you do decide to sell, according to the Internal Revenue Service (Publication 523). Erecting a fence, building a deck or replacing your roof all qualify.

Robert Bruss: New book reveals how to buy real estate below market value

By ROBERT J. BRUSS, Inman News Features
March 6, 2005

Whether you want to buy your next home at a bargain price or you want to acquire investment realty below market value, "The Complete Guide to Investing in Undervalued Properties" by Steve Berges shows the secrets of buying at wholesale prices. But don't be misled. It takes work to locate these under-priced bargains.

The author is a successful home builder who well-understands the real estate market whether he is acquiring land for his home construction firm, buying investment property or purchasing a personal residence. Berges reveals virtually all the potential sources and techniques for buying below market value.

But don't get discouraged by the slow start of this superior book. By the third chapter, the pace picks up. However, the publisher's antiquated format makes the reader almost fall asleep.

Thankfully, the author's excellent material keeps the reader awake, despite the sometimes page-long, poorly edited paragraphs. A top-quality graphics editor could do wonders for this book.

Throughout the book, Berges uses lots of personal examples from his many years of investing in real estate. Although his Michigan examples have far-below-market prices for most of the nation, typically $50,000 to $100,000 home purchase prices, readers in higher-priced areas should be prepared for this shock. But the principles explained are sound.

Especially valuable is the chapter about foreclosures titled "How You Can Help Distressed Lenders." As a buyer of real estate owned by foreclosing lenders, I never quite viewed my purchases like that.

But I like the author's viewpoint. He explains how to negotiate with foreclosing lenders who acquired title to properties and are usually very motivated to sell them at under market value.

Berges recommends repeatedly contacting at least 8 to 10 local lenders to establish a pool of potential foreclosed property purchases. "Another very effective method of locating post-foreclosure properties is through the network of real estate agents the lenders use to dispose of their properties," the author suggests.

The principle of understanding subjective value is heavily emphasized. Berges explains why relying on realty agents to determine market value of a property considered for purchase is not always wise unless several agents are consulted to compare their value estimates.

A special technique the author recommends is to hire "scouts" to help find bargain-priced properties. He recommends paying them a finder's fee, although he isn't specific on how much that fee should be.

Purchasing bargain-priced properties for little or no cash from the buyer's pocket is emphasized in the "High Leverage Techniques" chapter.

Aimed at buyers who want to quickly "flip" a property, such as by purchasing at a bargain-price, adding some fix-up work, and then selling for a quick profit, Berges explains the methods to use.

Although the author is a big advocate of options and lease-options, he doesn't get into much detail other than explaining the generalities.

Personally, as a heavy user of lease-options, I found his lease-option explanation a bit light on important techniques.

Although this book contains many generalities rather than specifics and the publisher's boring format makes for sometimes-difficult reading, the basic content is superior and well worth reading. The author's many examples add to the usefulness. Despite the drawbacks, on my scale of one to 10, this outstanding book rates a solid 10.

"The Complete Guide to Investing in Undervalued Properties," by Steve Berges (McGraw-Hill, New York), 2005, $19.95, 201 pages; Available in stock or by special order at local bookstores, public libraries, and www.amazon.com.

How to Track Down
Foreclosure Properties

By JAMES R. HAGERTY - Staff Reporter Wall Street Journal
Special to RealEstateJournal August 27, 2004

Question: I want to invest in foreclosure property. Where do I get up-to-date information?

Tony: Steve Berges, a seasoned renovator of distressed homes and author of real-estate investing guides including "The Complete Guide to Flipping Properties" (John Wiley & Sons, 2003), suggests that novices interested in buying foreclosed houses find a good local agent specializing in that area. He says many real-estate brokerages have agents who are experts on foreclosed properties. Some of them advertise that skill in local real-estate publications. Agents who work regularly with banks in finding buyers for foreclosed homes should be able to let you know what's available and guide you through what can be a complicated process. Try to find someone experienced in your market who can recommend an agent.

Another real-estate author, William Bronchick, whose books include "Flipping Properties: Generate Instant Cash Profits in Real Estate" (Dearborn Trade, 2001), suggests finding a local information provider to e-mail you regular reports on notices of default. He pays about $40 a month for one such service covering six counties. There also are national companies that provide such information, but sometimes their information is dated, Mr. Bronchick warns.

A good source of data on repossessed homes being sold by the U.S. government is the Web site of the Department of Housing and Urban Development (www.hud.gov). Information on available homes is updated weekly, HUD says.

Both authors warn that the pursuit of foreclosed properties is highly competitive in some markets and no sure ticket to riches. Mr. Berges says he invests in houses only if he is confident he can make at least a 15% to 20% return on his money. He wants a wide margin for error because the costs of rehabilitating and selling a house can be hard to predict. That furnace that seemed sound could conk out before you sell the house. Aside from the cost of buying and fixing the house, you need to tot up the likely cost of financing, insurance, taxes and any brokerage commission on your eventual sale of the property, Mr. Berges says. "It's not as cut-and-dried as you might be led to believe," he says, but it can be very profitable if you get it right.

-- Mr. Hagerty is a staff reporter for The Wall Street Journal. His "House Talk" column appears most Fridays on RealEstateJournal.com. E-mail him your questions about the residential real-estate market. Please include your first name and city and state. If your question is answered and posted, we will show your first name and city. Due to volume of mail received, we regret that we cannot answer every question.

Renovating a house for a profit?
First, eliminate the 'Yikes!'

By Holden Lewis • Bankrate.com May 6, 2004

The single most cost-effective investment you can make to increase the value of your home is to buy a roll or two of plastic trash bags. Stuff them with junk outside the house -- from beer cans to raked leaves.

Nothing could be more common-sense than cleaning up the yard and exterior, right?

"You'd be surprised at how many people don't recognize the importance of doing these kinds of items," says Steve Berges, a real estate investor in Michigan who buys dilapidated houses, fixes them up and sells them for a profit. His advice: When renovating a house or preparing it for sale, spend money on things a buyer can see.

Any successful investor is adept at spotting hidden value, buying low and selling high. That's what Berges does when he scouts properties, generally houses 20 to 70 years old. "One of the things that we like when we drive up to a house is what we refer to as high 'Yikes!' appeal," he says. He defines "Yikes! appeal" as the state of a house in which a normal person would drive up, say, "Yikes!" and keep on driving.

What a 'Yikes' house looks like
A house with high "Yikes!" appeal has weeds, a boat parked in the front yard and an old car transmission on the side of the house, nested amid beer cans. A rain gutter hangs down. Overgrown shrubs obscure the front windows, creating a dreary interior. People actually try to sell their homes in such condition, creating opportunities for bargain-hunters.

The book lists various kinds of exterior and interior improvements (improving the porch, replacing kitchen cabinets) and ranks each project's "impact value." A one-star impact value means the project won't add to the home's value and might actually lower it; a five-star impact value means the project could potentially add $1.50 or more to the home's price for every dollar spent.

A lot of money is at stake. Homeowners spent $166 billion on home remodeling in 2001, according to the Harvard Joint Center for Housing Studies. More than three-quarters of that was spent on what the Joint Center calls improvements, with the rest going to maintenance and repairs. Another $48 billion was spent on the remodeling of rental properties. Researchers credit the $214 billion in remodeling for preventing the economy from dropping further into recession in 2001. More money was spent on remodeling than on clothing that year.

Researchers discovered that 6.3 percent of remodelers spent more than $20,000 on improvements in 2000-2001 and 2.7 percent spent more than $35,000. Much of that was targeted toward fixing up kitchens and bathrooms.

Protect, improve, appreciate
"Families that spent more on home improvements also realize the greatest rates of price appreciation," the Harvard study said. "In many regions of the country, homeowners recover as much as 80 to 90 percent of the cost of home improvements in the form of higher home values. Little wonder, then, that homeowners spent almost $2,300 on average in 2001 to help protect and improve their most important financial asset."

If you're getting ready to sell a house, you want to be among the homeowners who recover 80 percent or more of their investments in the form of a higher price. Berges says the key is thinking like a buyer. And what do buyers do? They drive up to a house and look at it. If they're not repelled by what they see, they step inside and look around.

Based on that typical experience, Berges formulated the following guidelines:

"Visibility adds value," Berges says. "The improvements that are most visible are the things you need to focus on."

What you see is what pays off
This means that, if you have $10,000 to spend, and you can either spend it all on a new roof or all on repairing a cracked foundation (but you can't do both), you should replace the roof because it can be seen. Whatever your budget, put a higher priority on improvements that can be easily seen, because those give you the best bang for the buck.

"People expect the foundation, plumbing and wiring to work," Berges says. "If they don't, they detract from value. But fixing them to bring them up to code doesn't necessarily add value."

Because an unkempt yard and ugly exterior can cause prospective buyers to drive away without going inside the house, you should work on those first. Clear up clutter. If you want to, hire day laborers to remove that old engine block in the driveway and reattach that rain gutter that fell two years ago and has been lying by the side of the house ever since. Then concentrate on landscaping. Prune hedges, trees and shrubs, especially if they obscure the front of the house. Paint. If the roof is dirty, hire someone to power wash it.

From the curb, "the roof takes up 30 percent of what you see," Berges says. "If you have a nice-looking roof, that goes a long way in curb appeal for the house."

Cut clutter, clean
Maybe you notice that Berges isn't recommending that you break the bank -- just that you spend a little time and money to make the place look better. You should do the same inside the house -- reduce clutter and clean everything. If you own a pet, invite a non-pet owner inside the house to sniff around. You might be inured to the smell of your Weimaraner's urine, but the stench could make a buyer retch.

When Berges buys a house that he intends to fix up quickly and sell, he almost always has the interior repainted wall-to-wall and has the carpets and vinyl flooring replaced. Once, when he and his wife sold their own home, they didn't replace the carpets and they regretted it.

"We thought that by offering a flooring allowance, a family could move in and select their own flooring," he writes. But he discovered that buyers don't want to select their own flooring. He already had bought a house and didn't want to be stuck with two mortgage payments, so he unloaded the old house quickly, for $10,000 less than he thought it was worth.

Deal with the hassle, keep the profit
"For half that amount we could have replaced all of the flooring and sold the house for its market value," he ruefully writes. "People don't want to fool around with painting and replacing carpet and fixing the house up. In the world of fast food and instant gratification, people just want to buy a house and move in."

Berges's book is geared toward middle-class homeowners. On the upper end, buyers expect well-kept yards and painted walls, of course, but they often yearn for amenities that middle-class people might not expect. For example, one of the hot trends in the Hamptons on Long Island, says architect Marcia Previti of Gillis Previti Architects, is for two dishwashers in the kitchen. "You might reserve one for glassware and one for pots and big dishes," she says.

Adding a second dishwasher might be a sound investment in the Hamptons or in Beverly Hills, but it would be a waste of money in Toledo or Peoria. Berges' final piece of advice is to keep up with the Joneses, but "you don't want to over-improve."

Berges lives in a neighborhood of concrete driveways. A neighbor recently spent $28,000 replacing a concrete driveway with brick pavers. In a high-end neighborhood, that would be a cost-effective use of money, but Berges' neighbor won't come close to recouping the cost of installing the beautiful driveway.

When you're trying to decide how to spend remodeling money, Berges recommends seeking the advice of an experienced real estate agent who is familiar with your neighborhood. A licensed appraiser should be able to provide guidance, too.

Look Around the Block
When Comparing Homes

By JAMES R. HAGERTY - Staff Reporter Wall Street Journal
Special to RealEstateJournal May 5, 2004

Question: I purchased a home in an upscale Illinois neighborhood about six months ago. Although the average home price for my ZIP code is about 40% to 50% higher than what I paid for my home (with the exception of my neighbor who just did a complete rehab), the other homes on my street are valued at around 35% less than mine. My house has only three bedrooms and two baths. We are thinking about adding a second story to the house with another bathroom and at least one more bedroom. My concern is that I would overbuild for my street. Should this be a concern when four-bedroom homes two blocks away sell for a 40% premium? Is there any rule of thumb to calculating a price for a given area? Is the median price in the ZIP code enough? Should I look at the median value of homes on the street I live on? The street I live on is a good location; the only thing holding it back is that there are several older couples on my street who have no reason to renovate.

Bryan: This sounds like a tough call. There are no definitive answers, but here are some pointers from people who deal with these questions on a daily basis.

Comparing your house price with the median for your ZIP code would be casting the net far too wide. A single ZIP code can encompass a full range of housing, from luxury to squalor. On the other hand, you needn't compare only with the values on your block. Prospective buyers may well be comparing your home with ones within a few blocks. Still, to the extent that other homes on your block look shabby, that may well hurt your resale value, no matter how posh your house looks.

Expanding your home can be a good investment in terms of resale value, but it isn't a sure thing. Kyle Wheatley, the owner of Century 21 Team Wheatley in Killeen, Texas, says people often find that they don't recoup their full investment in a home expansion when they resell a home. Mr. Wheatley, who also owns a construction company, advises against such a project if your only aim is to increase the value of the house. But go ahead if you need the extra space, he says.

Steve Berges addresses this question in his new book, "101 Cost-Effective Ways to Increase the Value of Your Home," due for publication by Dearborn Trade Publishing in June. Mr. Berges, who owns Symphony Homes LLC, a home-building and renovation company in Lake Orion, Mich., says it's vital to consider how the size of your house compares with others in the neighborhood. If yours is one of the smallest, he says, it may make sense to add a room. If it's already one of the largest on the block, "investing your hard-earned money to make it even larger would most likely yield negative returns."

What pays off most in terms of resale value? Mr. Wheatley suggests renovating bathrooms and kitchens. Something as simple as re-facing cabinets or putting in new countertops can make a big difference. Mr. Berges agrees about kitchen and bathroom makeovers. But he says lots of other relatively small projects also can make a big difference in resale value: better landscaping (or even just removing junk from your lawn), fresh painting, roof repairs, new flooring and improved lighting. And don't forget good ventilation, he adds. You may no longer notice stale pet or cooking odors, but prospective buyers will.

Robert Bruss: Experienced investor explains 'flipping' profit details

By ROBERT J. BRUSS, Inman News Features
February 28, 2004

Whether you are a novice or experienced real estate investor, in "The Complete Guide to Flipping Properties" by Steve Berges you will enjoy learning the details of how to earn profits by "flipping" properties. Just in case you are not familiar with that term, flipping means acquiring either title or the right to buy a property and then quickly reselling at a substantial profit.

The author, both a real estate investor and a home builder, has considerable experience as a real estate entrepreneur. The many examples throughout the book add realism to his explanations of flipping techniques.

The essence of flipping is the property is acquired at a bargain below-market purchase price, usually fixed up to add considerable value, and then resold within a few months, sometimes even quicker. Berges explains how it is easiest to "flip" houses, but he also explains how to flip other run-down properties, such as apartment buildings.

This easy-to-understand book is written for both beginner and advanced realty investors. It starts by defining the flipping properties strategy, followed by explaining the three primary classes of flippers. The author labels these people as the scouts, dealers, and retailers. He then shows how each earns their profits, depending on the amount of their work involved.

But this book is definitely not about buying flipper properties in run-down slum neighborhoods. Instead, it emphasizes the importance of decent locations and even lists methods to determine the best locations for flipping.

The two chapters to which I did not relate well are titled "Valuation Methodologies" and "Financial Analysis." Perhaps because they are so technical, with heavy emphasis on ratios and numbers, many of the details seem overly complicated and non-essential to calculating flipper profits.

One of the book's best chapters explains winning negotiation techniques to avoid overpaying for potential flipper property. Berges emphasizes the importance of determining the seller's true motivation for selling and then satisfying the seller's primary motive for selling.

The examples in this chapter are especially applicable to explain how to negotiate what is truly important, such as price and terms, but give in on unimportant aspects such as any personal property to be included in the sales price.

The book concludes with a motivational chapter about power principles: vision, passion and autonomy. Berges uses a non-real estate example of an individual who used these principles to succeed in his business. The strong implication is readers should also apply these principles to their real estate investing strategy.

Chapter topics include "Flipping Properties Defined"; "The Value Play Strategy"; "Ten Ways to Locate Properties"; "Valuation Methodologies"; "Financial Analysis"; "Seven Steps of Successful Negotiations"; "Financing and Closing Considerations"; "Assemble a Winning Team of Professionals"; "Three Keys to Maximizing Your Potential"; and "The Three Principles of Power."

Finding fault with this well-written book is difficult. It is easy-to-understand, with many personal examples from the author's flipping experiences to illuminate the topics explained. With emphasis on flipping properties involving a minimum amount of the investor's personal cash, this is an excellent book for learning quick-cash profit methods. On my scale of one to 10, this well-written book earns a solid 10.

"The Complete Guide to Flipping Properties," by Steve Berges (John Wiley and Sons, New York), 2004, $19.95, 182 pages; Available in stock or by special order at local bookstores, public libraries and www.amazon.com

Ribbon Cutting Ceremony

The Davison Index

August 28, 2002

Small Town Treasure

Former La Porte resident takes talent to the top

The Houston Chronicle

August 1, 2002

Steve Berges, 43, a native and former resident of La Porte, is a small-town treasure, and it's funny how some treasures refuse to stay hidden. His recent book, The Complete Guide to Buying and Selling Apartment Buildings, published by John Wiley and Sons, is the latest accomplishment on his list of successes.

Berges, the son of Herman and Arlene Berges, always has been a bit of an overachiever. He was a Walter Rundell scholar and valedictorian at Lee College in Baytown, and while he was in school, he secured his real estate broker's license and worked in the market. After graduating from Lee, he attended Rice University, where he earned his master's degree in business administration in finance.

He hasn't stopped there. After spending more than 30 years in La Porte, Berges moved to Michigan a few years ago with his wife, Nancy, and two sons, Philip and Samuel. He continued his successes there, teaming with his brother-in-law, Don Mahoney, to found Symphony Homes, a home construction company.

The name of the partnership was easy enough to pick out. "I played the trombone and piano in high school," Berges said, "and Don and I love music, so the name came naturally from that influence."

Their work with an award-winning East Coast architecture design firm has brought them a number of housing contracts, including a recent development with 215 sites.

Berges said he loves working in real estate, where the challenges of the market help him to learn even more about it. "I enjoy the challenge of taking on new projects," he said, "because it pushes me beyond my comfort zone, and allows me to grow and develop my own skills and talents."

Although he found a number of sources about real estate investing, Berges couldn't find one related to purchasing multi-family buildings, so wrote his book as a culmination of his research and experience.

He includes one of his strategies, "the value play," in the book. The strategy influenced the creation of a Web site, www.thevalueplay.com where visitors can purchase his book and get more information about real estate strategies and investing.

Juggling different projects can consume a lot of time, but Berges knows where his priorities stand. "I don't become overly consumed with the principals of work," he said. "I find a proper balance by spending time with my family and with my church activities."

He said the new book and successful company in another part of the country have not changed him a bit, and his roots in La Porte run deep. Berges returns regularly for Christmas and in the summer for the annual family reunion, but he might not make this year's reunion, because he wants to spend time with his new son, Benjamin Henry, who was born this past April, just a couple of weeks after his book was published.

Throughout the success of his business ventures, his new book and new son, Berges seems to keep a sense of humor, and likes to talk about Benjamin Henry, who is the seventh generation Berges with that middle name. "We're glad he's not the eighth generation," he said with a laugh. "Because then he'd be Henry the Eighth, and that might not sit well with him."

For More Information Contact:

Symphony Homes
410 South State St., Davison, MI 48423
Tel: (810) 658-3600
FAX: (810) 658-3612
Internet: info@symphony-homes.com

Local makes good as businessman and national best-selling author

By SUE STOUT, Special to The Sun

Builders bank on location

Work on subdivision to start in summer

Development will feature upscale homes, condos

DAVISON TOWNSHIP

THE DAVISON FLAGSTAFF

Sunday, June 04, 2006

By Jerry Ernst

COMMUNITY STAFF WRITER

Robert Bruss: Book reveals little-known foreclosure facts

The pros and cons of investing in foreclosure properties

Robert Bruss, Inman News Published December 30, 2005

The 10 best real estate books of 2005

Diary of a Real Estate Flipper

Flipper talks to rehab expert Steve Berges

Friday, October 14, 2005 By Alison Rogers

Steve Berges has done it again!

_______________________

"To date, this is my absolute favorite Steve Berges book on financing your real estate investment property!" -- Deborah A. Ten Brink, President LLC Loan Network, Inc.

Restraint Pays if Prepping to Sell

BY Shannon Fromma; Albany Times Union - As published in the Detroit Free Press, June 12, 2005

Robert Bruss: New book reveals how to buy real estate below market value

By ROBERT J. BRUSS, Inman News Features March 6, 2005

4 Ways to Boost Your Home's Value

by Marc Myers, Readers Digest February 2005

The 10 best real estate books this year

by Robert Bruss January 2, 2005

Honorable mention

How to Track Down Foreclosure Properties

By JAMES R. HAGERTY - Staff Reporter Wall Street Journal Special to RealEstateJournal August 27, 2004

The most profitable real estate improvements

Renovating a house for a profit? First, eliminate the 'Yikes!'

By Holden Lewis • Bankrate.com May 6, 2004

Look Around the Block When Comparing Homes

By JAMES R. HAGERTY - Staff Reporter Wall Street Journal Special to RealEstateJournal May 5, 2004

Robert Bruss: Experienced investor explains 'flipping' profit details

By ROBERT J. BRUSS, Inman News Features February 28, 2004

Ribbon Cutting Ceremony

The Davison Index

August 28, 2002

Small Town Treasure

Former La Porte resident takes talent to the top

The Houston Chronicle

August 1, 2002

Robert Bruss, Inman News
Published December 30, 2005

Friday, October 14, 2005
By Alison Rogers

"To date, this is my absolute favorite Steve Berges book on financing your real estate investment property!"
-- Deborah A. Ten Brink, President LLC Loan Network, Inc.

By ROBERT J. BRUSS, Inman News Features
March 6, 2005

How to Track Down
Foreclosure Properties

By JAMES R. HAGERTY - Staff Reporter Wall Street Journal
Special to RealEstateJournal August 27, 2004

Renovating a house for a profit?
First, eliminate the 'Yikes!'

Look Around the Block
When Comparing Homes

By JAMES R. HAGERTY - Staff Reporter Wall Street Journal
Special to RealEstateJournal May 5, 2004

By ROBERT J. BRUSS, Inman News Features
February 28, 2004