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Real Estate Investing – Challenges Faced Moving Mobile Home Today

Today was an interesting day to say the least.   This morning I arrived at the Mobile Home Site and expected the Mobile Home to be gone.   Instead I arrived with people voicing their opinion in anger with each other.  Swear words were flying around with the top word being Sue!

I immediately instructed the group nothing gets done with high tempers and vicious words.  It was extremely difficult to find out what the issues and challengers were with each person strong headed.

The park owners have been a challenge to deal with since we contacted them to instruct them we were moving the mobile home out of the park.  They told us what rules we need to follow so we have been following them.   However, this morning their driver was as difficult to deal with as the park owners.   The end result was the mobile home did not get moved.

The owners would not call their driver back to move the mobile home at 10:30am this morning because they claimed he went up north for the weekend.   He had his work week in at 10:30a.m. Friday morning.

This situation could have easily been resolved this morning with the list of items below:

·         Park Owners been more willing to work with us (frantic owner who used angry to push himself around).

·         Park Owners instruct us to bring a Battery Pack to get the wheels moving when movers contacted them to find out what their driver’s responsibilities were and movers.

·         Had the driver waited 10 minutes for the mobile home owner to pick up a battery pack to attach to the wheels?

·        

Cashflow Cindy

Real Estate Investing - Valuing Commercial Real Estate

Cash Flow vs. Comps

As you can see, commercial and residential use two different methods for valuing property. With residential, it doesn’t matter what your tenant pays you–it simply won’t affect the value. Your rental property could be vacant, and that wouldn’t affect its worth. It would still be based on comps.

Making Millions in Multi-Units
Find Your Life’s Freedom’s! Take Action Now!!

On the other hand, the potential of a commercial poperty can be as limitless as your imagination. Because the value is based on income, you boost the value of the real estate every time you boost the income (rent) you’re receiving from the building. By scouting for commercial properties that are either under-rented or have inferior tenants, you can find potential gold mines.

As you can see; commercial real estate is valued at the cash flow.  If an agent is telling you the property is valued at 1 million dollars, then the income has to be 1 million dollars.

If not, walk away, the property is too high and you will not be able to cover your expenses.

I currently own a small multi-unit building.  Its wonderful on cash flow and am looking into buying more multi-units. These are cash cows!

If one of my  tenants leave, the other tenants cover my expenses!!!

John Dessauer has a Great Program:  Making Millions in Multi-Units!
A workbook and 6 CD’s are included with this program.  He explains in laymans terms how to figure out the cap rate, how to figure out if this property will cash flow.  John teaches you the ins and outs of buying commercial property for a small fee. 

 (inexpensive course for $49.00 for all the pertinent information you learn!) I’m shock at the low price he is offering for this course.  I paid $150.00 for this course and it was worth it for $150.00.  Now he is offering the same course for $49.00.   The formulas alone are more than worth the cost!

Making Millions in Multi Units
Find Your Life’s Freedom’s! Take Action Now!!

Real Estate Investing - Valuing Commercial Real Estate

It’s Based on Cash Flow, not Comps

If you’ve ever bought a house, you know how it works. The value of the house is almost always based on comparable sales. Comparable sales–or “comps,” as they are called–are homes similar in location, square footage, number of bedrooms and bathrooms, lot size, and type of construction.

Imagine you purchase a property that is worth $300,000. Its value is based on the comps–which means that the house next door likely sold for around $295,000, the one across the street for $304,000, and the one down the street for $299,000. So in that neighborhood, your property is worth $300,000.

The property has a tenant who pays $1,100/month. But he is leaving, so you put a new tenant in that pays you $1,300/month. Did the house go up in value? No, it’s still worth $300,000 regardless of what the tenant pays you. Why? Because its value is based on comparable sales.

Making Millions in Multi-Units
Find Your Life’s Freedom’s! Take Action Now!!

How It Works in Commercial

Now let’s imagine you purchase a commercial building that is worth $1 million. It has a retail tenant who pays rent of $7,500/month. But this tenant is also leaving. And you know that the building has been under-rented–that’s why you bought it. So you bring in a better retail tenant who is going to pay you $9,000/month.

Did the commercial building just go up in value? You bet it did. Why? Because the value of commercial property is based on its cash flow, not on comparable sales. The higher the rent–and the higher the quality of the tenant–the more the building is worth.

Making Millions in Multi-Units
Find Your Life’s Freedom’s! Take Action Now!!

In this scenario, you just replaced a retail tenant paying $7,500/month with one paying $1,500 more. Want to know how much your building is worth now? It jumped from $1 million up to $1.2 million! That’s right, you’ve just earned yourself $200,000 in equity.

  And now you’ve got options. You can:

•             Keep the building (and the nice monthly checks it’s bringing you)

•             Refinance, and pull up to $200,000 out, or

•             Sell the building and take your profits!

John Dessauer made his fortune in multi-units and has a $49.00 program for you to learn all of the ins and outs of How to Buy commercial Real Estate Investing.  This course is worth alot more than $49.00 with all of the formula’s he gives to you.   He teaches you how to buy a multi-unit and Why to walk away.  For $49.00 alone; he will keep you from buying an alligator.

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

Real Estate Investing – Always Educate Yourself

I joined EWI Real Estate Seminar (Master Program) over one year ago today.  As I mentioned to you earlier, I am involved heavily with training and reading.  I am always looking for the opportunity to learn because depending upon what level of real estate knowledge you are at be it in the beginner or advanced; there is always a piece of information you missed. 

When I first joined EWI Master Program, I was completely overwhelmed 2 years ago.  However, after investing in Real Estate over 3 years, I have retained much of the knowledge due to taken ACTION. 

However, as we say when we attend the Wealth Retreats, we are here to find the Gold Nugget!

Today, I found my Gold Nugget listening to Bob Proctor’s lesson on “Fortunes”.  He talked about creating your Master team, go find them and ask them.  It’s Simple!

http://store.sixminutestosuccess.com/?aid=588610

Bob Proctors video on Napoleon Hill’s book, Think and Grow Rich (about 20 minutes long)
http://store.sixminutestosuccess.com/?aid=588979

Anyway, I joined the Live 4 Week Prep- Course to the 90 day Real Estate Challenge that starts on April 27, 2009.  I am going to list my homework assignments below.  This way you can follow along and learn how to create your fortune with us.

As you can tell from the list of homework assignments below, Real Estate Investing takes motivation, time, and most of all ACTION on your part.   You must be willing to Learn and take ACTION!!

I will post the New Homework Assignments on Tuesday’s for the next 3 weeks.  This week I’m running late due to some personal family issues.

Oh, by the way, the instructor told us,

If you don’t complete this list of assignments below

Then  Don’t Bother Showing Up On Next Monday Night’s Call!   

Homework Listed Below:

1.       Adjust 1 hour per Day to Invest in Real Estate.

2.       Create an Investor’s Tool Kit.  (put all of your real estate forms in one area)

3.       Fill the tool Chest with useful Tools.  (agent’s names, phone numbers, attorneys, etc…)

4.       Learn the Art of Each Tool.  (know what each form is used form or who to call)

5.       Apply new Knowledge (Take Action!  look you can listen, read, and learn however if you don’t apply your knowledge then why are you reading this blog?)

6.       Repeat the process (cookie cutter real estate process)

Research Incentives to Buy

·         Tax Rebates

·         Tax Credits

·         Down Payment Assistance

·         Federal, State, and Local

Action Items List:

1.       Read or Listen to the “Blue Vase” Story

2.       What incentives Are Available?

3.       How Do You Qualify?

4.       Enroll in the 90 Day Real Estate Challenge

5.       Have a “WHY” – Get Excited

6.       Watch the Movie “Rocky”

7.       Read Chapter 1-4 “Road to Wealth Book” author Robert Allen

Enjoy learning!

Real Estate Investing – For landlords this is an exciting time with so many homeowners losing their homes they are moving back into rental units!  For us who own rentals it’s fabulous!

I am to say, yesterday, all I did was answer my phone on rentals that I have available.  As you can guess what my plans on today, showing rental units all day!

Great deals with tenants already in place:  No stress just collect the rent checks:

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

I will have three rental units filled by this weekend.  How Awesome it that?

From a management point of view, I tell all of my tenants.  Rent is due on the first of each month, if check is not received by 2^nd of month, eviction notice is mailed out.  I have NO time to chase rent checks down each month nor am I putting rent collection on my monthly agenda.

Be strict and firm up front and they will abide by your rules.  If not, I evict them immediately!

This is the best time to buy cash flowing real estate since there are so many properties to pick from on the market.  If you are looking for the conservative way to buy real estate; your strategy is to buy 10 single family houses; rent them out; hold them until retirement age.  Your retirement is 10 houses.  You will be able to retire without worrying about where your source of income is coming from besides social security.  In my opinion; social security is not a source of income nor should you plan on it for your income.

Great deals with tenants already in place:  No stress just collect the rent checks:

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

Real Estate Investing:  I had a gentleman who contacted me yesterday regarding the cost of Real Estate Programs.  Since I went through the program he wanted to know about my success or failures.

He was concerned about the high cost of the real estate program and was looking for verification the program is worth the high fees.

Real Estate Investing Education is expensive!  I am going back form my Master Degree and the cost is $30,000!  Yes, $30,000!  This price does include books.  Are they teaching me How to Make Quick Cash?

If you’re an advent reader of my blog daily you know I firmly believe in education, education, education.  As I stressed to this person, I am constantly investing in seminars, boot camps, books and audios. 

You have to keep investing in yourself.  Go back to your Real Estate library of books and re-read your books again and again.  You will be amazed at what information you will pick up and retain the 2^nd or 3^rd time reading the same book. 

If your taking ACTION on what your being taught.  The 2^nd or 3^rd time you read the book, you’re more knowledgeable now their several months or one year ago.  Also, you get somebody else’s idea or take on the situation.

If you learn one crucial step to successful real estate investing from my blog; please take away, Education is Key!

Real Estate Investing:

Develop a Plan

Congratulations! You have taken the first step towards achieving your goals by writing them down and by defining them. Now, you must develop a plan of action. Without implementation, your goals will not likely ever be achieved. As you develop your implementation plan, consider your available time, resources and ultimate end result that you are seeking. If you are new to real estate investing, be sure to set small stepping stone goals rather than a single, large goal to begin with. Success is generated over time by taking small, productive steps. Your implementation plan should include daily, weekly, monthly and quarterly action steps. Those action steps need to be translated into tasks and then included in your daily plan. As you progress through each day, be sure to check off each completed task or goal.

As you begin to check items off of your lists, you will begin to feel progress. However, it is not always that easy. You will have some wins and some losses along your real estate investing journey. If you end up off track from your goals, regroup and modify your tasks moving forward. Constant re-evaluation of where you are versus where you want to be is crucial for generating long term success in real estate. On the flip side, be sure to celebrate your wins! After all, you deserve it!

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:  Managing Tenants is interesting in this business.  However, the key to always remember is you are running a real estate Business.  You are not running a charity business.  When you make your profit in Real Estate then you take 10% and give the money to a charity of your choice.  However, keep feelings and emotions out of this business because if you do you will lose!

These 2 girls were in there 20’s first time living out on there own.  I called the girls and they were shocked to hear the place was a mess.  Supposedly they paid one of their friends to clean the apartment.  I told her, “we all know how hard good help is to find”. 

I told the girls that I would clean the apartment however they were going to pay me $15.00 an hour.  They opted to have their Mother clean it for them.  Since I had a showing at 4:00pm the same day there mother cleaned the apartment prior to my showing.  Yes, she did a nice job!

The girls went to Home Depot and purchased new blinds there dog chewed up.  I instructed them on the high cost to maintain a rental unit.  Once all receipts were in, I mailed them to these two girls and informed them all of their security deposit will go toward the damages in this unit. 

These girls were young and irresponsible.  However these 2 girls did rectify the situation with me.  They did not intentional go out to damage the property and took responsibility for the damages.  They worked with me to get the apartment back into rent shape.  Four weeks later I had a new tenant move into the unit and we are on to another chapter in the book on Real Estate Investing.  New Tenants bring New Stories.  Please leave me your comments and experiences with your tenants for everybody to share and learn.