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Real Estate Investing - Success Lies In Valley’s

I watched the Good Morning television show this morning on a special on Michael Jackson’s musical career.     Michael Jackson’s Music Producer talked about Jackson’s career from where he first hear Jackson sing.   He seen talent in him that nobody else did.

He produced three albums with Michael Jackson and the rest is history.  

He watched Michael Jackson rise to stardom overnight as many others.  He talked about how success is an odd entity and how he seen stars handle or mishandle their success.

   His words:

Success brings Peaks and Valley’s; its the Valley’s where you find your true Potential!

As with real estate investing or a singing career.  You will encounter Peaks and Valleys.

During your first years of investing you are going through a HUGE learning curve.   You will encounter LOW valley’s unless you become extremely lucky where all of your investments are successful.   However, if this lucky situation happens to you; I will see you on your way down.

Success brings Peaks and Valleys.  However, the longer you invest and the more experience you gain; your valley’s become low valleys and then your peaks come along quicker and stay longer. 

The DEEP valleys disappear the more experience you gain.

The key however; is learning how to overcome the challenges we face daily to get back up to the Peaks Again!

This is where many real estate investors seem to fall.  If you hear anybody tell you Real Estate Investing is easy they are being untruthful.   As the old saying goes; if it’s so easy to earn a million dollars in real estate investing then everybody would be doing it! 

Real Estate Investing is a wonderful learning experience and I hope you all follow me on the journey to becoming Financial Free!

cashflow Cindy

Real Estate investing involves learning the skills of Property Management when you start to build your real estate portfolio.  Sometimes it’s not fun managing rental units as I encountered today.  However, you have to run your real estate investing as a business.  If you don’t your property value will go down due to poor upkeep and you will have difficulty finding quality tenants.

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I wanted to share my experience with you that I had today with a tenant in one of my upper duplexes.

The tenant residing in the upper duplex was instructed two weeks ago to clean up the laundry room in the basement.  She had piles of clothes on the basement floor.  Along with stacks of empty laundry containers (she was instructed to put in her garbage bin a couple of weeks ago).   She also decided to move parts to a bedroom set in the basement that her brother had picked up for her a while back.

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This morning I went to check out the laundry room to see if she had cleaned it up.   She had not nor did it look like she even attempted to clean. 

Now, I have a tenant moving into the lower unit on the 15^th of May who will be using this laundry room.   (embarrassing walking on piles of dirty clothes).

The basement goes with the lower unit.  The upper unit was allowed access about one year ago under the pretense she keeps the laundry room clean.

She failed to keep her end of the bargain so today she was instructed to remove all of her personal belongings from the basement.  She did not have authority to put parts of a bedroom set and store it in the basement.

She was instructed two weeks ago to clean up the laundry room or she would lose access to it.  As the room looked today, she did not clean up her piles of clothes.  She was instructed this morning since she left the laundry room in complete disarray she is losing her privileges to it. 

Managing your rental units is always a learning experience.  I advise each one you to learn the laws in your areas of investing and invest in education classes on Property Management.  This will be the best money spent to protect yourself and your investment.

 For a small investment of $49.00 you can purchase John Dessauer’s Property Management Program.  Comes with CD’s and a work book.  John made his money investing in multi units so he knows the in’s and out’s of property management.
Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing – Call Small Local Banks

Follow along with me every day and do the same steps that I do and you will earn $100K with me.  This is FREE education in real estate investing.  Real estate investing takes time, drive and motivation.  I am writing a daily blog to instruct you on the steps that I take every day, its up to you to follow and take action.  Go back down and read the first blog on Challenge Prep Course with all of the beginning assignments.  We are going to start looking for deals tommorrow so get moving!!!

Are you taking action with me to earn $100K within the next 6 months?  How devoted are you?  You can either read about it or follow along with me.  We are going to make $100K by flipping real estate or holding the property equity.

The moral of the story for those of you who watched the movie Rocky is you are going to have challenges along the way; the secret is how you deal with the challenges by getting back up again!

1st step:   Download my FREE e-book:  You are going to use these strategies to finance your deals.  These are the same strategies I use on a daily basis.  Go ahead and take action now!

I paid Big Bucks for my real estate education and am giving this knowledge to you for FREE, WHY, because, I want you to live your life stress free and enjoy your family.  Working all the time causes stress on relationships and God only put us on earth for a small time.  Let’s enjoy our time together and share our wealth!  Now, download my FREE e-book.  I used these stratgies daily and you will too.

Back to Real Estate Investing; I purchased a fixer upper in Indianapolis, IN to buy, rehab, rent, refi.  I am currently on the rent and refi step.  Many people are told me the banks in Indiana will not refi a property to out of state real estate investors. This is far from the truth. 

I have a small local bank who is refi by duplex at a 60% LTV to an out of state investor. (I am the out of state investor!)

 Meaning:  The appraisal comes in at $120K, then the bank takes 60%  X $120K.    This situation they will give me a loan for $72K.

In this market or I will say any market.  When you are buying cash flow properties, DON’T pull out as much equity as you can.  If you stay 60% or lower; you will not have an issue with refinancing your deals.

I’ve seen too many real estate investors pull out as much equity as they can to live on or just to pull it out.  Now there mortgages are too high to sell the properties in this market.  DON’T do this; its poor business planning.  Whenever you purchase a cash flowing real estate investment; always ask yourself, if the rental market has a downturn can I lower my rents to be competitive and pay my mortgage, taxes and insurance?

Assignment:  Start calling local banks in your area.  You may need to spend 8 hours on the phone to accomplish this task.  As Rocky did in the movie, did he quit?

Listen to Bob Proctor’s Think and Grow Rich Video on Six Minutes to Success:  Listen to this video for the next 5 days.

http://store.sixminutestosuccess.com/?aid=588985

Real Estate Investing – You Could Save HUGE Money On Your Real Estate Taxes

Has your house gone down in value that last year?  Do you know what your house is assessed at for tax purposes?

You may be paying too high of taxes if your house has gone down in value from two years ago.  If your house has dropped in price by $100,000 this could be a potential to save BIG MONEY.

Remember, you are paying taxes on the real estate property at the time the real estate was assessed.  Contact your assessors office to find out what price is your real estate assessed at?

With money being tight for many families these days, this may be an area when you can cut cost.  Taxes are a huge expense to home owners or real estate investors. 

However, in order for you to save money on your taxes, it will take some research and time.

Couple of pointers listed below:

·         Challenge this assessment that may have been based on an assessment from a couple of years ago.

·         Contact Assessor’s Office

·         Find out what other real estate properties in your area have sold for in the last six months.

·         Need to prove to the assessor what your house market value is at is today’s market.

Click on link below to view the clip from CNBC

 Save Big Money on Your Property Taxes: Fight Your Assessment

http://www.youtube.com/watch?v=Zxw6GB0gv68

This is where a private investor may step in. The investor may have no knowledge of the management of the proposed real estate investment. But he has faith in the professional promoter and is willing to invest money without any further involvement. When the profits come in, he will get his returns at the predetermined rates and be happy with that. If the profits are not there, the silent real estate investor gets nothing. Additionally, depending on how the investment is structured, the silent investor could also be held liable, in proportion with his investment in the property, for any losses incurred or debts.

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While this may not, on the surface seem like a desirable form of real estate investing, the advantages are that the investor does not have to devote any time or energy towards the management of the property. Presuming that his faith in the professional who is the manager is well founded, all the silent property investor needs to do is collect his dividends.

Another reason that people opt for silent real estate investing is because of a desire to avoid unwanted publicity – say a businessman undergoing financial problems who has other legitimate secure funds to invest but fears the investment would be misunderstood. Often the reason behind the silent investment is a fear of a conflict of interest situation arising – for example a close relation of a leading chef who has independent means may want to invest in another restaurant but does not want any issues of conflict of interest to arise.

Due to the quiet nature of this kind of real estate investing, the number of silent real estate investors is impossible to estimate, but because of the benefits this form of property investment offers, it is safe to assume that the number is large.

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

This concept began in the 19th century when family businesses and commercial establishments offered this kind of indirect financial benefit to employees (who had no entitlements or facilities besides their salaries) as a means to reward and retain good people. From here it spread to labor unions, credit societies and even large publicly held companies. This should not be mistaken for charity or a gift since the investment has to be returned as stipulated and collateral needs to be provided.

 The second form of silent real estate investors is one who invests purely out of commercial interest and perceived profit, but stays in the background. The investor does not play any active role in the management of the property or in the promotion of profits and returns. This kind of real estate investor used to be called a “sleeping partner.”

 This kind of real estate investing is most common in the case of service industries like restaurants, hotels and properties that require maintenance and management like rental buildings. The operational aspects of running the business are looked after by a person with the required expertise – a chef, hotel manager or building maintenance professional. But this type of professional often does not have the financial resources to make the required investments or even to put up the kind of collateral that institutional financing will require.

3 Stages of Buying Foreclosures

By Jarad Severe

The strategy of buying pre-foreclosures is to create a situation where everyone wins. This type of strategy involves just you, the homeowner, and in some cases the lender. Because the homeowner has been delinquent on his or her mortgage payments, they are now in a position to entertain offers made by investors. Keep in mind, you may not be the only investor looking at this property. However, when buying pre-foreclosures, you can expect very little competition.

When buying pre-foreclosures like this and in turn make a profit, you must do some research on these types of properties. The following are some basic guidelines:

1. locate loans in default,

2. evaluate each property by comparing and contrasting location, price, and property condition

3. narrow your selections to a few

4. inspect the properties

5. determine the property owner’s needs, his motivation and flexibility

6. determine the market value of the property, fix-up costs, potential sales price and profits

7. arrange default work out by negotiating with the owner and the lender

8. close on the property, fix it up, and flip it quickly

Check out these Cash Flowing Deals:

http://serene.ewimultiplestreams.com/index.php?base=featured

Buying Foreclosures at The Auction

Buying foreclosures at the auction is a great way to purchase a property under market value. Most properties are auctioned on the courthouse steps. The property is auctioned off to the public and the highest bidder walks away with the property. This can be very rewarding to those who are in a position to buy the property within a short amount of time and can be devastating to those who bid without proper financing in place. Most auctions require a small deposit down of the purchase price on the spot and the remaining balance usually within 1-30 days. So make sure You have you deposit ready and your financing is in order before you bid. If you are unable to get financing within the allotted time, you will most likely lose your down payment, and they will auction the property off again. Buying foreclosures at the auction is also the riskiest place to pick up a foreclosure. You are buying the property in “As Is” condition so it’s very important to do your homework before you just go to an auction and bid on a property.

When buying foreclosures at the auction, we recommend you:

1. first visit a local auction to get a feel for the bidding procedure, find out how much is required as a down payment and when the rest is due

2. get proper financing in order

3. research properties and do your homework prior to the auction date

4. calculate potential profits

5. determine the most you will bid for the property

6. follow the property to the auction and participate

Check out these Cash Flowing Deals:

http://serene.ewimultiplestreams.com/index.php?base=featured

Buying Foreclosures that are Real Estate Owned (REO)

Buying foreclosures that are REO primarily involves the lender. REO just means the lender reclaims the property and establishes control over it to minimize its losses. Buying foreclosures that are REO is by far the easiest way to pick up a distressed property. Lender’s are always listing properties that come back from the auction, because they don’t like excess inventory. They are in the lending business, therefore it is quite easy to find these types of properties. Most of the time they will hire a broker or real estate agent to handle the REO’s just because there are so many of them. Lender’s in this situation are very motivated, especially if they have a large number of them. These properties are considered to be a huge expense which need to be eliminated. This gives the investor numerous ways to creatively negotiate with the lender on a purchase price. One disadvantage when buying foreclosures that are REO, is that you will pay close to market value for these properties because the lenders will have paid off any outstanding liens, taxes, and other expenses. This is good for you though, because most of the time you will find these types of foreclosures with clear titles.

 Check out these Cash Flowing Deals:

Real Estate Investing:  Do you need an additional $10,000 to complete a rehab? (part 2)

Are you asking yourself as a real estate investor?  I need $10,000 to complete this rehab.  Where do I get $10,000 from so we can give the contractor a red light to start this rehab?

Have you asked your contractor??

My partner and I were all set to start a rehab on a duplex in IN when we discovered the $10,000 we had set aside for this rehab was used in other ideas of our real estate investing business.

Great Cash Flowing Opportunities:  http://serene.ewimultiplestreams.com/index.php?base=featured

I went back to my contractor and asked if there was any way we could trim the fat on this duplex?  We went over the whole contract together.  The contractor had no room to move to protect his business.  However, he instructed me he would be able to write me up a promissory note.  I instructed him, I was looking for 10K for one year.  Once the duplex is rehabbed the rents will be off the promissory note.

My contractor informed me last week he cut a deal with his supplier on Flooring.  This deal will save us over $3,500.00.

I went to a real estate seminar and the speaker looked straight in my eyes and responded:

 KEEP ASKING!!!!  My response to you is the same:  KEEP ASKING!!!!  It’s amazing where I found private money.  Somebody even called me up and asked me if they would be able to loan me money.  My responded with a HUGE smile YES!

Check out these excellent opportunities to purchase real estate at rock bottom prices and earn passive income:  http://serene.ewimultiplestreams.com/index.php?base=featured

Real Estate Investing – Section 8

Real Estate Investing:  Section 8 is an assistance program through the government to assist low income families with housing.  In many areas there is a long waiting list to get on housing.  In Outagamie County area there is a waiting list of over 1,200 families!

The families have to meet Section 8 guidelines in order to be approved for the program.  Once they are approved then they are given a voucher for a certain dollar amount.  At this time is it there responsibility to find suitable housing that meets housing guidelines as the voucher dollar amount and number of bedrooms.

Each family’s monetary guidelines are structured differently.  Some vouchers pay for the full month’s rent.  Other vouchers pay a percentage toward the rent.  If the family has income as a W-2, Social Security or Disability then they are required to pay a percentage of the rent themselves.

If the tenants are evicted for any reason then they lose their housing for 3-5 years.  It’s in their best interest to follow the rules and guidelines of housing and the landlord’s.

Housing requires children who are the opposite sex to have their own bedrooms.  Example) A family has 2 children.  The boy is 5 years old and the girl is 7 years old.  Each child needs to have their own bedroom.  In this situation their voucher would require them to find a 3 bedroom to meet housing guidelines.

Remember to order Zig Ziglar’s Goal Setting audio.  Its a small investment for you to learn how to write your GOALS for 2009 on Real Estate Investing.  If you don’t have a path or direction for yourself then you will help someone else achieve their dreams and goals.  If this what you want?  Listen to 3 FREE Audio’s

Without clearly defined goals, you simply can’t achieve the success you want! In Goals, world-renowned motivator Zig Ziglar guides you through a clear, beautifully organized ’success trip.’ Along the way, you’ll learn how to recognize and set your goals. You’ll learn techniques for finding extra time you didn’t think you had and for cutting down big goals to easy-to-handle size. Now you can take advantage of this all-important opportunity to write your ‘business plan for life.’

Real Estate Investing:  As you begin your Real Estate Investing you will ask yourself the following questions.  Will I be the landlord for my properties or will I hire a property management company?  If you opt for the Full Landlord responsibilities you then need to ask yourself.  Will I be the full service repair person for all of my units?  Or will I hire someone to fulfill these duties? 

Click on link to view Cashflowing Real Estate Properties   http://serene.ewimultiplestreams.com/index.php?base=featured

My partner and I currently manage all of our units.  We act as the landlord, rent collections, complaints.  By the time we collect all rents its time to start all over again.   Being a landlord is an interesting position but not one to announce to your tenants.  It’s best to keep ownership quiet on your real estate investing for protection of your assets and easier to manage.  My partner and I instruct our tenants we manage the properties and keep the ownership part quiet.  When the tenants ask me for a favor I tell them I need to speak to the owner.  This way if the favor is an unreasonable request it’s much easier to tell them THE OWNER turned them down and explain the reason.  Always, remember, this is your investment and you need to make the correct decisions to keep your real estate investment profitable!

My partner and I hire contractors to do all repairs and rehabs on our real estate investing properties.   This in itself is a challenge to find qualified contractors at an affordable price.  I’ve hired a couple of contractors that I tried out for small jobs and will not be calling them back due to lack of respect or job was done unsatisfactory.

Click on link to view Cashflowing Real Estate Properties   http://serene.ewimultiplestreams.com/index.php?base=featured

 Remember:  Keys to successful Real Estate Investing is a Successful Management Company be it you or a hired out company.

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