Archive for June, 2012

Larry HarboltHave you noticed a declining number of people attending real estate meetings lately? Well, maybe not at Atlanta REIA Meetings, but this is true of many other REIAs across the country. I’ve run a weekly real estate meeting myself for over 10 years down in St Petersburg, FL and I’ve seen my own group attendance diminish from an average of 200 people each week to approximately 50 over the past couple of years. I realize many investors are confused, scared and have lost faith in the real estate investing business and who can blame them? You can’t open a newspaper or turn on the television without hearing anything but negative news about the real estate market. All we hear about is the declining sales prices, lower number of sales, almost no building starts and of course the record number of Foreclosures nationwide. Who can blame investors for shying away from buying houses in this market? Many investors are waiting for the market to bottom out before they are going to get back in the business. There is no better time to be buying houses than NOW, yet many investors are finding it impossible to fund their deals while other investors believe doing Short Sales is their only chance to make money today. This is not true! That kind of thinking is simply crazy! Read More→

Rental Properties in Your IRA

Jim HittFor legions of investors frustrated with puny yields on savings and bonds, slow growth retarding stock market returns, and the usual substantial risk involved in security investing (any given stock or bond can potentially become worthless overnight), we have good news: The combination of declining real estate prices and steady or increasing rents have opened up a window of opportunity in real estate for income-oriented investors. In fact, years after the “smart money” was selling off real estate ahead of the bubble collapse, we are seeing signs that smart money is getting back in the real estate market. Indeed, up to 20 percent of residential real estate now sold is sold to investors – and not just to “play and pray” amateur property flippers, but to value-oriented investors as well, who are seeking to generate immediate positive cash flow.

Advantage for IRA Owners

This is a big development for IRA investors, because generating cash flow sufficient to maintain properties is important for IRA owners. Because you are restricted to $5,000 in new contributions to IRAs every year ($6,000 for those over age 50), you have to pay for any needed repairs or renovations to properties either with cash in the IRA, bringing on a partner, non-recourse debt financing, or other retirement assets you can roll over into the account. When you can realize immediate positive cash flow from a property, however, net of financing costs and taxes, that takes a lot of the pressure off, and makes owning real estate in an IRA much simpler. Read More→

Jeff NixAs Director of Business Membership, in keeping with the kickoff the inaugural issue of The Profit, I’d like to take the opportunity to personally thank all the business members who contribute their valuable time, talent, and resources to making Atlanta REIA what it is, and what it is becoming.  Atlanta REIA is a collective success because of you and what you bring to the organization. While many of you attend the monthly general meeting or some of the subgroup gatherings, there are many others companies behind the scenes who offer a nearly endless variety of goods and services that support the endeavors of all our real estate investor members.

In future issues of The Profit, this segment will highlight our business members as well as announcing the new and renewing members so that the membership at large will be reminded of the fine companies that are available and at your service. Read More→

Erven Kimble

Posted on June 6, 2012 by

Erven KimbleErven Kimble is an accomplished pastor, teacher, author, community leader, licensed Christian Counselor and Real Estate entrepreneur. Erven is a visionary that has faithfully served as the Senior Pastor of a local church in Lilburn, Georgia for twenty years.

Erven searched the Book of Proverbs and extracted wisdom that reference business and finances to produce the series of articles called “Business By The Book”. The purpose of these articles present time tested Biblical principles in a way that is practical, relevant and beneficial to the average business person.

“They may say, “Come and join us … let’s ambush the innocent! Think of the great things we’ll get! We’ll fill our houses with all the stuff we take. Come, throw in your lot with us; we’ll all share the loot.” My child, don’t go along with them! Stay far away from their paths.” (Proverbs 1:11-15)

Erven KimbleWe have all faced the question; “Is this a good business opportunity for me?” The answer to this question may come from your professional training on how to evaluate a deal. Sometimes, we find ourselves enrolled in the school of “Hard Knocks” taking the freshmen class of “Trial and Error.” But, if you are an entrepreneur, there may be is a more critical question that has to be answered and your answer to this question may not be quite as forgiving.

That question is; “Who am I doing business with?” Have you ever found yourself challenged to do business with someone who operates with a fundamentally different set of values and moral practices than yourself? Have you ever been asked to participate in a venture or business proposition that just didn’t sit right in your heart? Sometimes, at first glance, it may seem to be quite attractive and a potentially profitable proposition. But after some careful thought and discussion, you begin to feel uncomfortable about the person or the proposition. Read More→

Craig HalperinAs an attorney who specializes in real estate transactions for investors, I always try and stress the importance of using an attorney to form your business entity, more specifically an LLC, to shield your real estate assets from liability, as opposed to trying to take on this task on your own, or using an online service. No matter how many times we suggest this, investors sometimes overlook the importance of seeking an attorney’s advice during initial registration of LLC documents. As a result, many investors are forced to amend their Articles of Organization, sometimes more than once. In our experience, investors who have registered their LLC’s online, without engaging an attorney to correctly draft the documents necessary for proper filing, end up having to file amendments nine times out of ten regardless of their experience.

The time and money lost due to avoidable mistakes can be very frustrating, and necessary amendments often end up costing investors the same, if not more, than what their attorney fees would have been had they hired one at the onset. Conversely, investors who work with attorneys during the filing process are far less likely to encounter obstacles resulting from imperfect filings and unanticipated obstacles. These investors are thus much more insulated from the risk of needlessly incurring costly amendments. Attorneys can help investors circumvent these unnecessary obstacles and losses in several important ways. Read More→

Bob MasseyThe Mortgage Electronic Registration System is just that—an electronic registration system. MERS came into being after the GSEs produced a white paper in 1993 stating the case for an electronic registration system to track mortgage assignments. It was officially launched in 1997.

From the point of view of the mortgage industry MERS made it possible to transfer mortgages or merge lender acquisitions efficiently without triggering local transfer taxes and other recording fees. It changes what has always been a public documentation process to a private one. The industry claims the MERS system allows the industry to have a central repository for mortgage assignment information in order to keep a more accurate picture of ownership.

Courts have not been unanimous about the legitimacy of MERS and many courts have ruled that MERS muddies the waters in the recorded chain of title and cheats counties out of much needed revenue. In fact, county recorders in several states have sued the MERS system for loss of documentation fees. On the other hand, the MERS website lists cases it has won in at least 22 states since the beginning of 2011. There is clearly a window of opportunity to fight MERS’ legitimacy as an owner of record in many foreclosure cases. Read More→

Now is Your Chance to Advertise
Your Business in The Profit

Atlanta REIA’s Hot New Digital Interactive Newsletter
For Real Estate Investors & Entrepreneurs

The Profit NewsletterThe Profit is Atlanta REIA’s brand new, digital newsletter. The purpose of The Profit is to help keep our members, guests, friends and followers updated on all the ups and downs of the real estate market; changing laws, rules and regulations; the latest real estate investing techniques, strategies and so much more!

The Profit is also designed to all of our subscribers updated and informed of all the events and happenings going on at Atlanta REIA each month as well as exposing them to a wide variety of businesses, vendors and suppliers (such as yours) serving the real estate industry.

The Profit Newsletter

If you’re looking to reach the Real Estate Industry here in the Greater Atlanta Metro Area and/or throughout Georgia, you can’t do better than The Profit. Your ad will reach more than 10,000 each month with your message. Our production teams are among some of the best designers in the country. We will make your business look GOOD!

We can help you create an ad that will get your business noticed! And because our digital newsletter is “interactive”, readers can click on the links in your ad to visit your website, squeeze pages, interactive forms, Facebook and Twitter pages, etc. This will result in more visitors to your website(s), better lead conversion and even more customers for your business!

Check out our special introductory advertising rates below for our Gold and Silver Business Members and when you’re ready to start advertising in The Profit, call Christine Griffin at 678-701-7160 or Contact Us Online. For a limited time only, we will design your ad for you at no charge. You can also Download Our Advertising Order Form and get started now!

The Profit

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In last week’s column, we described what an option is and the advantages of using them.  This week, let’s look at a couple of different types of options in action.  (If you missed last week’s column, you’ll find it here.)

Let’s begin with the type of option that most folks are familiar with – lease options.  Lease options are best structured using two documents – a lease contract and an option contract.  The lease outlines the agreement between the landlord and tenant regarding property rental. The option outlines the agreement between the property owner (usually the landlord) and the tenant regarding the tenant’s right to buy the property.

There is a big difference between a lease purchase and a lease option.  With a lease purchase, the tenant is saying he WILL buy the property.  With a lease option, the tenant is saying he MAY buy the property.  A lease option locks the property owner into selling the property according to the agreed-to terms and conditions outlined in the option agreement.  On the other hand, the tenant can exercise his option and buy the property or he can simply walk away.  For most buyers, if their goal is to buy the property in the future, a lease option is a better, safer way to go. Read More→

Kim and I have been investing in real estate since 1995.  Long ago, we learned that options are – BY FAR – the most powerful tool in real estate.  If you are not using options as one of your primary real estate investing tools, then you’re leaving a lot of money and opportunity on the table.

When most folks hear the word “option,” they automatically think lease options.  While lease options are very popular, they are just the tip of the option iceberg.

Options allow you to control a property – a little or a lot depending on how the option is written – without the risks that come with property ownership.  You can control one or all of the benefits that come with ownership: income, profit, amortization, growth, use, management, and tax benefits.

One of the best things about options is that you can control hundreds of thousands of dollars worth of real estate for less than $100 – and control it for a bunch of years.  No other document in real estate is this powerful! Read More→

The Ultimate Fast Track to Your
Business Success Workshop

A Full Day Workshop & Strategy Session
with Larry Harbolt on June 9th, 2012

Larry HarboltRight now is the best time in modern history to buy real estate. Join Larry Harbolt on Saturday, June 4, 2012, and he will share with you his secrets on how to make money in today’s real estate market. Larry will show you what you really need to know to buy real estate profitably with only $10 down, even if you have bad credit or are bankrupt!

At this workshop, you will learn:

  • Buy real estate profitably in any market or economic cycle.
  • Learn how to buy real estate when you have No money.
  • Buy real estate when you have No good credit.
  • Learn how to create the terms to make cash today.
  • Learn how to overcome seller objections like a pro.
  • Learn the right questions that will create Golden Deals.
  • How to create extra profit out of thin air on most of your deals.
  • Never have to beg for or apply for a loan again.
  • How to buy and sell all the property you want and never use a bank.
  • How to structure offers with no payments or interest and get the seller to gladly accept. This will drive your cash flow through the roof.
  • Why you can buy millions of dollars in real estate and never have a debt show on your credit report or be personally liable for a penny.
  • Build your income stream, like the banks have, acquire free assets, without investing a dime.
  • How to change the terms of the loan months or years after the closing and make the seller ecstatic to do so.
  • Build an empire from monthly cash flow and cure negative cash flow – The secret only a handful of people know how to do.
  • Big profits from the “deal after the deal”. All seller-financed deals have back end profit centers if structured properly, and will cost you a fortune not knowing them.
  • How a few carefully chosen words you can easily master in minutes can potentially earn you big paydays when you’re ready to cash out your seller.

Come and join Larry on Saturday, June 9th, 2012 for The Ultimate Fast Track to Your Business Success Workshop. Bring a new pad and a couple sharp pencils because Larry promises you will leave with New Methods, Processes and Systems that are Efficient, Effective and WHEN YOU WILL Learn them can be measured by the NEW CASH in YOUR bank account.

Register Now!

Read More→

The Profit NewsletterThe Profit, Atlanta REIA’s brand new, interactive, digital newsletter has now been released for June 2012! The purpose of The Profit is to help keep you and our members, guests, friends and followers updated on all the ups and downs of the real estate market; changing laws, rules and regulations; the latest real estate investing techniques, strategies and so much more! The Profit is also designed to keep you and other subscribers updated and informed of all the events and happenings going on at Atlanta REIA each month as well as exposing you to a wide variety of vendors and suppliers serving the real estate industry. Read More→

The Profit Newsletter