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Real Estate Investing – YEAH, rents came in!

I received Rent Check, Called up my Friends and told them to meet me at the local Pub!

Real Estate investing requires you to be a responsible person by understanding rental income. The value of positive cash flow and be responsible to where the rent money needs to be allocated.

I met a handy man a couple years ago who invested in foreclosures 2 years ago. He was selling one of his investment properties, just happened to be a 4 plex. I immediately asked him one simple question. Can you guess what question I asked?

Here it is, What is your monthly cash flow?

Now, the cash flow number can change depending upon how much money the investor put down on the property and interest rate or how the investor’s loan is structured. It’s critical to dig deep into the answer.

Remember, Cash if King!

He told me he pockets $1,100.00 and uses this money to pay his mortgage payment. Well immediately, I started to probe him for other questions. He never did answer my other questions but all he did was small talk or walk around my questions. I recently found out he lost all of his properties in January to foreclosure.

You ask WHY, I will tell you why.

He never repaired his properties to a living standard. The work was completed but done beyond satisfactory. The city was fining him for violations and he never did complete the work to the cities requirements.

2^nd reason, This particular investor took his rental income and went down to the local Pub. Folks if you don’t pay your creditors they will come after you for your assets. Even though real estate prices have dropped dramatically, real estate is still worth a better price than your old furniture or rusty old car.

This particular investor was uneducated in Cash Flow and the banks took back all of his real estate assets.

Property Management is a critical skill investors are not willing to learn and invest and time or money. This area alone will either make you a millionaire or make you poorer than you already were prior to real estate investing. Which one do you choose?

Invest in John Dessauer’s Property Management course to keep your monthly cash flow coming in month after month. Without it, the banks will be calling you

Cashflow Cindy

P.S. Do it Now

Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – How do You Spend Cash Flow?

Many real estate investors are losing their investments as single family houses or duplexes because they simple did not get the proper education before, during their real estate investing years. If the investor loses their job then their investment property goes to foreclosure along with their personal home.

I talk to investors on a weekly basis that are upside down on their properties because of over financing, refinancing, or simple putting too much money into their investment properties. These individual investors are losing their houses and duplexes to foreclosure simple because they didn’t understand the concept of Positive cash flow!

Do you know how to figure out if your property you are going to purchase will have Positive Cash Flow? Or is the Real Estate Agent telling you the property is a good deal and it cash flow? If the agent is telling you it cash flows, ask the agent, if they are going to pay the mortgage for you if your property is NEGATIVE cash flow?

My first property I purchased has Positive Cash Flow however I did forget to figure in other cost prior to making my offer. After being a real estate investor for over 4 years my first investment property clearing is a reminder for me to NEVER overpay for an investment property as I did on this one.

It’s critical to understand Positive Cash Flow before buying your first investment property. I purchased mine on the 1% rule. For those of you who don’t understand the 1% rule is an explanation. Property is selling for $90,000 and rents equate to $900.00 per month. According to the 1% rule your property will cash flow. Take a deeper look at the numbers than going off this simple little equation. For instance, how much work needs to be completed on the property in order to keep the current tenants or how bad has the building deteriorated? This is an area where I made my first bad mistake.

Cash Flow is King! Without it you will end up losing your all of your hard earned work to the banks or another real estate investor. Without positive cash flow, you become a MOTIVATED SELLER quickly!

Cashflow Cindy

P.S. Invest in John Dessauers Property Management course to gain your financial freedom with Positive Cash Flow.

Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing - Selling Cash Flowing Properties

In today’s unstable real estate market with masses losing their jobs and their homes it’s important to remember WHY people invest in real estate.

The number 1 reason, Sandy and I invest in real estate is cash flow. If the single family house, duplex or tri-plex does not cash flow then we RUN. When I talk about cash flow, I am talking after ALL bills are paid you have money left over from the rental income! I will say this again, after ALL bills as taxes, insurance, water, heat and repairs on the property are paid for any money left is Positive Cash Flow!

If you are buying investment property with Positive Cash Flow then its important for you to SELL your investment property to other investors so the property cash flows. Everyday, people ask me, Cindy how do I sell my property to cash flow for the investor to buy my property and still make a profit on it?

Answer: If you purchased the property correctly in the first place then you will not have any issues selling the property to another investor with positive cash flow.

Remember, when you buy an investment property, someday you are going to sell it. If it’s larger than a single family house then chances are an investor is buying the property as an investment. Many first time investors will buy a duplex and live in one side while the tenant pays the mortgage. However, even in this situation, when you market the duplex, it needs to be marketed as fully rented with Positive Cash Flow in order for the property to sell.

My partner and I sold our cash flow duplex to another investor and made a nice profit plus the investor purchased a cash flowing duplex.

Cashflow Cindy

P.S. Most investors buy property without having a clue or understand money or cash flow.  These are the duplexes and single family houses I buy for pennies on the dollar because these investors were too cheap to invest in a property management program.   John Dessauer offers an excellent program to teach you the meaning and better yet how to calculate positive cash flow.   Invest in a Property Management Course before you invest in Real Estate otherwise, I can assure you will purchase the property Wrong!

Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing - Why You Should Convert Houses Into Private ALFs?

Answer: For the Financial Security and Piece of Mind!

You got into real estate to make a lot of money, and the piece

of mind it brings - in case you forgot during these economic challenging times.

Cashflow is extremely important in buying real estate for passive income. If your current cashflow is bleak then how do you expect to pay your real estate obligations as taxes, insurance and make your mortgage payment? Everybody is aware of what happens to you if fall behind on your mortgage payment. And yes, it happens to real estate investors every single day!

Click Here! to learn strategies on buying and renting out your ALF Houses. ALF Housing is a BIG money maker for us real estate investors.

It’s extremely important for you to have passive income as a successful real estate investor. Passive income pays all your real estate obligations. ALF is a strategy that fills a need in our aging population world today.

What criteria does a house need to turn into an ALF?

Do you have a nice place located in a nice quiet residential neighborhood? If you do, you may be able to rent out EACH bedroom for $4,0000 a month. California is a great area to use this strategy. With the flood of retirees any area will work for this strategy. Remember, you are filling a need. ALF’s housing is a growing trend and will only get stronger in the next year.

If the bedrooms are big enough, and your state allows it, you may be

able to put two people in one room for a total of $8000 per month

per bedroom.

Yes, that’s right, $8000 per month, per bedroom. If you have a five

bedroom house, that’s $40,000 per month, every month.

Click Here! to learn more strategies on transforming your non-performing asset into a Money Making Machine that fills a Void in todays marketplace.   Fill the void and become rich off it.

There are several more reasons to convert your empty or non- performing

rentals into ALFs.

· People who live in ALF and call them home are less likely to trash the place.

· They’re also less likely to spend your rent money on a new t.v or car.

· You won’t get a phone call from the neighbors complaining the cops are next door again.

· ALF residents can’t just pick up and move

· ALF residents pastime is reading books, knitting or playing cards (NO WILD PARTIES!)

No more worries about how you are going to pay your mortgage payment since the other tenants are covering the cost until you fill the vacant ALF unit. ALF tenants are elderly individuals concerned about living in a quiet peaceful house who respect their living quarters vs. NOT caring as many tenants.

Cashflow Cindy

P.S. With the babyboomers retiring in large volumes this is the perfect living arrangements. We are providing them a great place to live with companionship.  Click Here! If you don’t believe me, ask a retired person if they miss people?

Real Estate Investing – Housing (Section Annual Review

Real Estate investing is a lot easier when you don’t need to run around the first of each month collection rent checks. Housing (Section allows you the ease of either receiving you rental check on the first of each month or having your check electronically deposited into your bank account.  As I’m noted for as cashflow Cindy; Housing provides cashflow to my rental units.    I bought my rental units to cashflow and cashflow they do!

However, by no means is this easy. Taking on a Section 8 tenant does require work on your part or your property management company from a landlord perspective.

Each year Housing (Section does require the tenant to have an annual review. The following is a list of items the tenant must present to their Housing Specialist. If the tenant does not provide the following information by a specified date then Section 8 will STOP payment of Section 8 tenants rent check. They instruct the Section 8 tenant the rent responsibility falls back on them.

Being a landlord; it is your responsibility to stay in contact with the tenant to confirm and instruct them if the following information is not provided by a specified date then their Housing Stops paying rent!

Assets – Current bank or investments statement

Income – Earned income, six to eight weeks of current check stubs; other income – a benefit noticed, bank statement or other available proof.

Expenses – Day Care – Receipt or statement from provider

Medical – 12 month printout from pharmacy or other medical provider, insurance premium notice

Copy of Federal 1040 Tax Return and Schedules

Housing (Section is a government funded program to assist people with their rent. In order to be approved for the program they are required to show a NEED to be on the program.

Section 8 Housing is work for the tenant and the landlord. However, if both parties work together it is a good program to assist families while they improved their financial situation.

Cashflow Cindy

P.S. John Dessauer has excellent program to purchase for you to learn Property Management Skills.

Find Your Life’s Freedom’s! Take Action Now!! to learn NEW essential skills to be a successful real estate investor.  If you don’t learn property management skills you will become or maybe you already are a DON’T WANTER!  If you are a don’t wanter; please contact me and I will take your property off your hands.

knowhowknowhow@gmail.com

Real Estate Investing – Sixminutestosuccess

Everyday I’m asked what books I read and what classes I study. Well, I am here to tell you for the last year I listened to Bob Proctor’s sixminutestosuccess.   http://store.sixminutestosuccess.com/?aid=590395

I look forward to hearing Bob Proctor’s short message every morning.

You ask Why: I will tell you; Bob inspires me by telling me who he studied over the years and how he keeps his mind strong. Remember; success happens in the mind before it happens in our outside world.

Bob’s short videos keep me inspired with his message and short exercises. I think about his exercises throughout the day vs. listening to the news or reading the newspaper. Remember, BAD news sells newspapers!

Your friends don’t want to see you succeed! They are the negative voices inside your mind. Get rid of those negative voices by listening to sixminutestosuccess daily.

Bob has opened up a whole new world for me of places I want to see and people I’ve studied and wonderful new books I never heard of have.

http://store.sixminutestosuccess.com/?aid=590395

People ask me, is it worth the price. The answer is try sixminutestosuccess for one month. Then contact siximinutestosuccess and instruct them you want to sign up for one whole year. Yes, it is half the cost. See, I decided last year after I listened to Bob for one month I needed to hear him teach me daily.

His messages are short and daily and repetitive. This is how we learn and retain the knowledge.

I am a different person today than last year. My goals have grown and strengthened with more confidence knowing I am in charge of my destiny not my friends, family or economy.

Cashflow Cindy

P.S. Sign up today for one month trial; then contact sixminutestosuccess   http://store.sixminutestosuccess.com/?aid=590395 them you want the one year rate. Enjoy, learn and Grow in 2010

Real Estate Investing – Can Section 8 Abate Rent?

Your Second Second 8 Inspection Fails!

Section 8 mails you a letter stating your next month rent check will be abated even though your lease expires in 2 months. (this means loss of rent; no money to pay your mortgage payment!)

It’s critical to follow all of housing rules and guidelines on inspection dates, times and repairs needed. Section 8 has strict rules and procedures and they must be followed. If they are not followed according to their specifications; Section 8 will abate your rent check!

Example) Lease expires Feb. 28, 2010

2^nd Section 8 Inspection failed; Reasons Listed Below:

1. Tenant didn’t clean the stove ( dangerous with too much grease; fire could start)

2. Smoke Alarm was not on Wall; (tenant took smoke alarm down and didn’t put it back up!) As a matter of fact she showed the smoke alarm to the inspector while he inspected the unit. However when she showed the inspector the smoke detector she flipped it over and noticed the batter was out of it because one of her children took the battery.

In this situation; Housing had the authority to abate the following months rent check. Even if it was the tenant’s responsibility to clean the stove and put the smoke detector back up on the wall.

Housing’s position is to verify that the regulations are abided by and not to decipher who is going to handle the repair. (That agreement is between the tenant and landlord.) So when housing does the re-inspection all they need to see is the repairs are made, and in this case they were not.

As far as the rental lease, that is a separate document and issue. The participation of the Section 8 program requires that units be kept to HQS standards at all times while assistance is being paid on the unit. Therefore the lease agreement for tenancy is a separate issue and does not prevent stoppage of payment for programs violations, and a failed re-inspection is a program violation.

Cashflow Cindy

P.S.  Property Management is a learned Skill.  This is the area where real estate investors fail.   They spend all kinds of time buying property but when they get it they lose!  You MUST invest in yourself to become an excellent property manager if you are building your portfolio.   If you don’t; I’ll see you on the DON’T WANTER list!

John Dessauer offers a Property Management program Find Your Life’s Freedom’s! Take Action Now!! is well worth the price.  John made his fortune buying Multi-Units and understands Property Management Skill is important to maintaining and building your real estate empire.

Real Estate Investing - Don’t want to be a landlord?

When you invest in real estate you need to decide what real estate strategy or strategies you are going to use.
Various Real Estate Investment Strategies are buy and hold, wholesale, bird dog, retail flip or lease options.
It seems to be in today’s marketplace the number 1 real estate strategy is to wholesale or bird dog. In today’s market place or newbie investors all want to use the wholesaling strategy because it’s quick cash and it seems the investors today are looking for a quick strategy to fast cash.
Last week I attended my apartment association meeting and talked to an experienced investor and he keeps commenting to me as members of the investment club all they talk about is wholesaling. From his experience these investors are missing out on all of the other strategies in real estate investing. We talked about this same issue last year.
I want you to ask yourself this question?
What happens if the property you bought doesn’t perform as expected and sell immediately?
Do you have cash reserves to pay your mortgage payment?
I can guarantee you if you don’t plan ahead for the tidal wave you will end up looking at other strategies to keep yourself afloat. Lease Options are a Great Strategy or you may even look into renting your property out to smooth you through the storm.
Even if you finance properties; it will come a point in time when you need to educate yourself in other strategies besides wholesaling or what are you going to do when the market changes?

Cashflow Cindy

Real Estate Investing – The Passing of a Legend Jim Rohn

Jim Rohn, my mentor, left us December 5, 2009 for a better place.

Jim touched my life with his books, seminars and CD’s. Jim is one of my favorites to listen to while I am driving in my car shopping for real estate deals or driving to Ellipse Fitness Center for Kickboxing. One of my goals in life was to meet Jim in person or attend one of his seminars live vs. in my living room. Even though I never met Jim personally I truly felt in my heart he was my friend. And I will miss him dearly since he made a difference in my life as well as million’s of other peoples lives.

Over the past 18 months, in his battle with Pulmonary Fibrosis, Jim assured us with a smile that all is good, that he would fight until the last breath, yet he had no fear as to what would be next. Jim’s faith was as much a part of his life as his desire to inspire and challenge us all to be the best we could be and to live our dreams.

Jim’s courage in his final months and days were a testament to his message that we should all fight the good fight. He never gave up and never gave in.

Someone once said “when you are born you enter the world crying while everyone else is rejoicing and when you die hopefully you have lived such a life that everyone will be crying while you are rejoicing”. Jim Rohn lived such a life.

Here is a short video on Jim’s Seminar, How to Have Your Best Year Ever”, watch and enjoy!

http://www.youtube.com/watch?v=JfA-qNWLBHo

cashflow Cindy

P.S. An excellent book to read by Jim Rohn is “The Art of Exceptional Living”

Real Estate Investing – Can Tenant Refuse to Pay Rent Until Repairs are Made?

Situation: Tenant contacts the electrical inspector on your rental unit

Inspector walks through the house and instructs the Landlord he needs to pull a permit to do the wiring and the permit was not pulled for the work completed. Inspector informs the landlord he must get a licensed electrician to complete the work and charges the landlord double for the permit to be pulled since the work was not completed by a licensed electrician. (all safe conditions)

Landlord hires a licensed electrician and the electrician completes 90% of the work and then never comes back to complete the balance of the work. The landlord gets frustrated after a few weeks and then finally contacts another electrician to complete the work.

Finally after 1 ½ months the electrical inspector passes the unit.

Is this legal for the tenant to hold back money from the landlord?

Meanwhile the tenant refuses to pay landlord rent for the whole month of December and part of January until the electrical work is up to code according to the electrical inspector in the area where the house is located.

I learned at my apartment association meeting in Wisconsin last night. It is illegal for the tenant to hold rent money from the landlord while work is being completed on the unit if the building is safe to live in.

If the electrical inspector prohibited the building from being lived in, then YES the tenant should not pay rent to the landlord.

Join your local apartment association to learn the LAW in your area of investing. Its time and money worth spent. The networking alone covers your due cost.

Cashflow Cindy

P.S. John Dessauer has excellent programs on Multi-Unit investing and Property Management.

Find Your Life’s Freedom’s! Take Action Now!! to learn NEW essential skills to be a successful real estate investor.