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I have been mentoring for many years and have found that my best deals come from actually “speaking” directly to a Seller and working out a win-win situation. Since I first started investing back in 1998, I have not purchased a property directly from the Multiple Listing Service. However, some Investors would prefer not to talk to Sellers and would like to be fed deals from other Investors or from the Multiple Listing Service. We each have different personalities and based on your personality and your personal preferences, I may be talking to you. If this is your mind set, then I would recommend the following:
1) Find at least 2 Realtors that will be willing to set you up to receive listings that are emailed directly to you for your review, along with Expired Listings. You will want them to do a search for some of the following key words: TLC, Handyman Special, Must Sell, Seller Motivated, Short Sale, and REO. Read More >>
I think the better question is why wouldn’t someone give you $100,000 in cash? Is it because you would run off with the money? Is it because you have little to no experience in handling that kind of money? Does that thought run through your mind on a regular basis? Well it needs to stop! Focus on the goal and dump the negativity! If you are a crook stop reading this article. The best question to ask is, who will fund my whole project, (the purchase price, the repair costs, the monthly payments, the utilities, the taxes, and insurance) and allow me to make a good profit?
Let me put the quantity of money into prospective. Let me also put into prospective the major two differences between a hard money lender and a private lender.
In the past I thought that $100,000 was a lot of money. Today this amount will buy a nice single family house in a blue collar neighborhood. The house will need to be fixed up and it might be in an area with a less than desirable school system. So, if your business plan is to fix up houses in the price range of $50,000 then sell at the $100,000 this will work. You will be very happy to have a person invest in your project. The project must make sense. The project must make money for the investor/ lender. The investor/ lender is sharing the risk with you. The investor/ lender will want to know that they will be paid back on time and in full with no excuses or late night phone calls. Read More >>
The majority of us have been taught that financing means putting your name on that dreaded bottom line. Be thankful that the time has come for you to learn a new way to play the game of financing. Understand, however that the rules of financing have not changed; you were just not aware of all the rules. I am about to share with you ways to buy real estate without having to jump through credit hoops and debt to income foolishness. Since going to the bank is my least desirable method to finance real estate, I will discuss with you my four favorite ways: owner financing, subject 2 financing, private lending and hard money.
Owner financing is my all-time favorite way to finance real estate due to the fact that you get to set the terms of the financing, if the property is owned free and clear. You may be asking yourself, why would someone owner finance a property instead of just selling it and moving on for cash? Well, I could give you all the reasons in the world; however, for the sake of time I will give you the top three reasons: Read More >>
In this article, we’re going to discuss something vitally important that may very well help you understand a LOT about yourself and everyone around you on this planet. Yes, that includes dealing with sellers, buyers, private lenders, and even those alien creatures we love to call tenants. Also-your mother, brother, father, sister, sons and daughters, uncles, best friends and distant relatives.
So You might NOT want to read this article... Unless you want to discover the secrets behind the reasons WHY people DO or DON’T Do the things they do...or don’t do.
It all comes down to TWO things. The Carrot and the Stick.
The CARROT represents something GOOD that we WANT, while the STICK represents something BAD that we DON’T want. Read More >>
Networking is perhaps the most underestimated resource every single investor has. I am constantly amazed at how in a world as interconnected as it is, I am constantly seeing how little we leverage each other to get more deals done. I sat recently and wondered why and came to some conclusions:
There are probably several reasons we can come up with that aren’t written down here. The point is all of these above and more keep us from simply reaching out to others, much less doing business with them. Take for example social media. Read More >>
This month I am sharing some Mental Gems that I know would be of great use to you. It has to do with the misconception that…BIGGER is BETTER and/or Quantity over Quality.
Just this past month I was speaking with one of my platinum students in Dallas, TX. We were discussing his marketing when I shared this view with him to make a clear point. You see, he was having a problem that most of us have at one point or another in our investing career. We begin to doubt that we are doing enough and start to believe that we need to do a LOT more because the deals are not knocking the door down. You see, one thing that we have to be clear on is the understanding that the deals will come as long as we are consistent in our marketing! Read More >>
How important is it, when meeting with a seller, buyer, renter, realtor or contractor, to be totally focused on that person? If you’re not paying complete attention to what that person says and how he or she says it (tone of voice, hand gestures, body position, eye movement), isn’t there a good chance you’ll miss critical information that’s being shared with you?
The number of people who are not 100% there during a meeting has become epidemic – and is a major pet peeve of mine! If you’re over fifty years old, you already know what I’m talking about. Baby Boomers grew up without cell phones, emails, and text messages. Heck, we didn’t even have phone answering machines!
Here’s an example of this epidemic at work. A real estate investor needed help structuring a deal and asked for an hour of my time. He drove up from Atlanta and met me at the Adairsville Waffle House. Read More >>
When making offers on properties as an Investor, you will need to have your exit strategies in place prior to purchasing the property. What I mean by that is, who is your buyer and what type of financing are you going to allow the buyer to use when you sell the property. Knowing this will allow you to maximum your profits.
When I look at properties to purchase I always analyze the value of the property and how long I will have to hold the property before I am able to sell the property for a profit. The comparables that I use are through Realtytrac.com and also the Multiple Listing Service. Realtytrac will give me the values in the area, however, the Multiple Listing Service “MLS” in addition to values will provide me with how the property was sold ie; Cash, Conventional mortgage, USDA mortgage, VA mortgage or FHA mortgage. You can normally assume houses under $200,000 that many of the buyers purchasing at this price point are FHA mortgage buyers. FHA mortgages are mainly used for first-time homebuyers. The Mortgage Lender requires 3.5% as a down payment which attracts many first-time homebuyers. Read More >>
A few months ago, I began learning about and got more involved in apartment investing. I wrote about the steps I took to make industry contacts while building credibility. Fast forward to now and my work is definitely paying off. In many ways, the results I was looking for are coming to fruition but there are also other results, that I did not expect, that are appearing as well.
Some results I expected from my efforts were credibility, partnerships, maybe a mentor, an actual deal, financing and much more that will definitely come with patience and more work. At the beginning I thought credibility was going to the hardest part but it was not. Because I had done my homework and took the time to learn this niche, the people who I spoke with respected the dedication. Another surprise was that all my single family investing actually carried some credibility of its’ own into the apartment investment crowd. From many articles, podcasts, videos, etc. I was led to believe that the multifamily crowd looked down on the single family residential (SFR) investors but it simply was/is not true. In fact, while SFR investing is not a prerequisite, there are many ex- SFR investors who invest in multifamily. These are the people that relate to my current situation and have been eager to provide information and guidance. These relationships have grown into discussions around partnerships and potential financing. While I have still not identified an official mentor I am treating all the assistance I am receiving from multiple investors as a mentorship. This also gives me the opportunity to discuss one aspect of apartment investing with multiple investors so I can then try and decipher which information is best for me and/or which information I personally want to apply. While I have not actually found a multifamily deal that I personally like, I have underwritten many properties. Just like SFR investing, it’s a numbers game. Read More >>
I have learned how to get enough money to buy any house, at any time, any place, and any condition. Wouldn’t it be great to have the relationships to be able to do just that? This is not out of reach and it is not very far from where you are sitting right now.
I recently got into a conversation with a fellow Investor at the gym and it went like this:
Russ: How is business?
Gabriel: I am so busy. I have 17 houses (being rehabbed) right now and the one you sold me (two months ago,) I haven’t been able to get to yet.
Russ: This is great. How are you getting them?
Gabriel: From people like you, wholesalers.
Gabriel: What are you doing? Read More >>
Why do you need a Credibility Kit for your Real Estate Investing business? In fact, what exactly is a Credibility Kit? This is the question I hear most often from students when I am at real estate investing events.
Think about this for a second. Have you ever had a contractor come out to do a bid for you on some work you wanted done, say new cabinets, or siding on your house or new windows? Do you remember seeing the book they brought with them that showed the photos of jobs they had completed, testimonial letters from satisfied customers and copies of their licensing and insurance? That was their Credibility Kit. Why then as a Real Estate Investor are you not creating this amazing tool for your real estate investing business? This is definitely a tool you will need for your real estate investing business and it’s so easy to create one if you follow a few simple steps.
Your personal Credibility Kit will not only build credibility and integrity for you with your sellers and lenders, it will give you a serious edge over your competition. Almost none of your competitors know about this incredible tool that makes you look like a true professional in your Real Estate Investing business, whether you are working with sellers or buyers of properties. Read More >>
We all know that REO is an acronym for Real Estate Owned properties. Basically, it is a property that has been foreclosed upon and now belongs to the bank or lender. Foreclosure properties have been front page news across America for some time. I want to discuss REO properties and the best way to profit from these deals. REIAComps is a great way to expose yourself to the true market value of many REO homes in various stages of foreclosure around Atlanta, the state of Georgia and other market areas.
When banks supply foreclosure lists, they also provide the selling prices that they will accept for those properties. Generally, the banks or HUD have the property priced to move, therefore there aren’t a lot of negotiations necessary. Each property investment is done on a bank-by-bank, house-by-house basis. Read More >>
As I write these words, I’m overlooking the crystal-clear blue-tinged waters of the Caribbean. The boats in the marina are docked and their crews are scurrying about in preparation of the day’s activities. The weather here in Curacao (a Dutch Caribbean island just north of Venezuela) has been exquisite, as my slight sunburn indicates. It should be about 82 degrees here today, while back home it’s a balmy 30 degrees.
So, have YOU taken a vacation recently? Did you have the chance to get away and do something fun, relaxing, or otherwise fulfilling lately? If not, why not? There have been countless studies done and research conducted that prove that people who take the time to take vacations live longer, happier, and healthier lives. Google that if you don’t believe me. Or ask the guy who sold us our timeshare (I’ll get back to you about that). Read More >>
This month’s tip is so critical to your success. There will be many times when you put deals out and instead of getting an offer, you get feedback from your Buyer. If it is constructive, and oftentimes it is by people who sincerely want the property, listen! Buyers, especially experienced Buyers can provide a wealth of knowledge for you on your deals. They oftentimes have the scars of rehabbing and know many things you may or may not have thought of. You want to take advantage of this information!
Some things they may share with you:
What is the real cost of the rehab (very common) to attain the ARV advertised
What the actual ARV for that area is. Remember, if they work that market hard, they oftentimes know several fine nuances that wholesalers rarely consider. Read More >>
One of the most important things I believe every investor should always do before ever making an offer to purchase any property is to first think about what the highest and best use for that property will be. Every day I talk to newer investors who never stop to think about the best use of the properties they look at and how this simple exercise can, and will, greatly improve their profit from every deal they do. It took me years to understand the importance of first considering what I should do with each property I was looking at before even thinking about making the offer to purchase it. This may not seem to be of much importance to those who aren’t experienced investors but one thing is for sure, if you don’t understand how to best utilize the property it will greatly affect the amount of money you make at the end of the day. It is my opinion that you should always step back and take a deep breath before making an offer to purchase a property. Determine exactly what your plans are if you are successful buying the property, while also analyzing the numbers of that property before making your offer to purchase. Read More >>
QBO’s tools are generic enough that myriad businesses can use it. But custom fields and classes help you shape it to meet your specific needs.
Small business accounting is not a one-size-fits-all proposition. Your company is unique in that sense; you have your own customers and products, vendors and services. Your requirements for your accounting application—what it must do and how it does that—is unlike anyone else’s.
QuickBooks Online contains a standard set of features that can accommodate a broad cross-section of the millions of small businesses in the U.S. It also offers customization options that you can use to make it your own. Two of these are custom fields and classes. Read More >>
The difference between a successful real estate IRA investor and a not-so-successful one often comes down to due diligence. The investor who understands what goes into valuing a property, to include historic and expected cash flows coming in and out as well as risk – is able to make better decisions than a less skilled investor. If you’ve been blindsided by the unexpected as an investor – or if you believe you could be – here are some tips from experienced professionals to improve your due diligence and help you avoid getting caught unaware by the unexpected ever again.
Don’t rely on pro forma financial statements and projections that you get from the seller. This is a common rookie mistake. But most of the experienced and successful investors we speak to have never seen a case where the actual cash flows from a real estate investment were better than the pro forma. Any such information you get from the seller should be considered, at best, a wildly optimistic scenario. You want to pay a fair price for the property’s actual performance, not the best-case but highly-unlikely scenario. Read More >>
“HD doesn't mean anything to me. It's a technical thing. It's like demographics. A lot of people know about it.” ~ Craig Ferguson
When we talk about demographic data it is hard to grasp. The US Census information is available for free online, but it is hard to gain anything meaningful from that. The common person isn’t apt at reading through that information, and the way the US Government organizes those numbers isn’t easily absorbed.
Demographix is a very niche app. It is a well organized database that has used the US Census information from 2010. This is not for everyone, but working in different areas I find myself needing access to information fast. Ok Google or Siri doesn’t always answer my questions on the spot. It can take time to work out the details about the population of an area I’m trying to buy or sell a home in. Demographix is neatly organized and at a glance I can look through a clean user interface. Read More >>
A little history. Back in 2007-2008, not only did the Real Estate market change, but so did our entire economy. With the near total melt down of our economy, Real Estate took a huge hit. The Banking/Lending industry all but shut down making mortgage loans.
This made it very difficult for us to do business. Up to this point we were doing just about every creative technique out there for they were all working. We were doing Subject To, Lease/Options, Private Money, Rehabbing, REO’s, Wholesaling, Wholetaling, Commercial, Building Spec Homes, etc.
Lending was way too loose, but that was what was making it easy to sell properties. In fact, it was so easy, some even crossed the line and put home owners into homes that they knew they could never afford, but were able to obtain these easy to get loans. We of course could not do that. Read More >>
Value is subjective to each party of any real estate deal and value doesn't have to be determined in dollars. Today people have been taught that the dollar is the only way to determine value. Let me give you an example of what I mean. When you go to the grocery store and go through the checkout lane with your chosen product that costs nine dollars, you give the clerk a twenty dollar bill; you are expecting eleven dollars in change back. This is what people today have been taught how to determine value, in dollars.
Dollars don’t have to have anything to do with value, here is an example. A lady who lives in my area was struggling financially, having trouble paying her rent every month because she was unemployed and couldn't find work in her field. This lady was dealing with much stress because she owned property in New Hampshire that was vacant land that didn't make her a penny. As a matter of fact, the cause of your stress was because the property taxes for her property in New Hampshire were due and she didn't have the money to pay her property taxes. She had a real dilemma. Read More >>
When I first started in real estate, I spent over $250,000 flying all around the world attending boot camp after boot camp, learning all the different ways I could get involved in creatively buying, selling and holding real estate. It seemed like it was always the same group of people flying around the world with me and taking the same training. The only difference I noticed was that many of the people who had attended these trainings had never even made an offer on a property. They never used the knowledge that they received and just kept on going to more and more seminars. And as we all do, we exchanged business cards with individuals we met at these meetings. At that time it was my husband, step-son and I attending all of these trainings. When I got home from many of the meetings, I would get telephone calls from individuals who still didn’t understand the process of the training they received. Read More >>
When you are looking to make offers, remember your obligation is to the most important person in your company; the shareholder. Most often, the shareholder is you. Have your list of what a profitable deal looks like, armed with your REIA Comps information and some courage your list can be successful.
The key to meeting your goals and having your success as an investor is a thorough understanding of VALUE. Understanding the value of a potential investment property is the basis for profits. Taking stock in the real estate market and learning how to properly analyze the market is paramount. This enables you to make a maximum profit when buying real estate for flipping or reno and sale. Read More >>
“My system for staying young is to work a lot, to always have a project on the go.” ~ Carlos Fuentes
Before insurance companies started offering plug in cameras designed to improve your driving and lower your rates there was already an industry standard port. The ODB-II port is existing technology standard in most every car produced after 1996. Automatic uses this existing port, at first it would connect to a bluetooth device and was only good for reducing your gas waste habits. Hard stops and other things would be flagged and brought to your attention. The second iteration of Automatic Pro adds GPS to track your route if your smartphone is out of battery life. You will still need a smartphone and bluetooth to sync the data later. Read More >>
Last month I wrote about beginner’s rules and the first presentation a person could do when looking to raise capital. I talked about the mistakes that I made early on. I just changed the names to protect the innocent, me.
I want you to think about being able to raise private money from local sources, business people, retirees, and people who have money sitting in banks or accounts that are barely earning them a .01% rate of return. If you are one of those people, then we need to talk.
So, picture yourself walking up to people and building a relationship. Is this scary? Is this awkward? Is this a cake walk? Read More >>
This is probably the biggest tip I tell wholesalers all the time. When you are interested in a property, make the offer! That’s it!
It’s such a simple tip. See property, have interest in it. Make an offer. Yet for reasons continually inexplicable to me, too many investors simply don’t make the offer!
I recently sold a deal that I got seven offers on within 24 hours. The irony is I had it at a higher price in purpose for a test I was running and no one offered on it. When I lowered the price, all of sudden everyone was interested. When I sold it, several of the others said ‘that was a good deal!’ To which my response was, ‘it was but you could have had it sooner had you just made the offer.’ The look on their face was shocking as if to say ‘you mean we can offer a bit less than the asking price?’
Let’s clear this up right now… Read More >>