Archive for July, 2013

It is as easy to succeed as it is to fail. Why does this sound untrue? Because most of us forget that we have a choice: we can enjoy the good and overcome the negative. What we must remember is that when we encounter something that we initially see as negative, we have a choice about how to react.

Did you know that Harland David Sanders, the famous KFC “Colonel”, couldn’t sell his chicken? More than 1,000 restaurants rejected him.

Or that Walt Disney was fired by a newspaper editor because he “lacked imagination and had no good ideas”?

Or that Henry Ford’s first auto company went out of business?

What made these people successful after so many “failures”? Read More→

(This article is continued from Part 1 in the July 2013 Edition of The Profit Newsletter.)

  1. Listening to poor advice. This is something you probably already know. As you go through life, there will never be a shortage of people who want to give you advice. Your parents, your spouse, friends, in-laws, kids, they all have opinions about what you’re doing and what they think you should be doing. Very often, the value of their advice is worth exactly what you paid for it . . . nothing!

    I’m not saying these do-gooders aren’t honest, intelligent and well-intentioned. However, you must ask yourself, are these folks qualified to give you advice? Have they had any experience in what you’re doing? It seems to be human nature for people to offer advice on subjects they know nothing about. What baffles me is how often the recipients of this so-called wisdom will listen to it and even act upon it without ever questioning the credentials of those giving it.

    Through many painful experiences, I’ve learned that when you take advice from people who don’t know any more about the subject matter than you do, the quality of that advice is, at best, suspect. Plus, very often, listening to unqualified advice can have a negative impact on your focus (see roadblock #1).

    So, who should you be listening to? I believe in taking advice only from people who are: Read More→

Combining a self-directed IRA and real estate is a trend that is picking up speed fast! Real estate investors are redirecting their focus and purchasing homes with their self-directed IRAs in mass. Partly because they refuse to settle for living on the measly average $1,230 per month social security check that many retirees are forced to budget with.

Large companies are cutting back on their employees’ hours in preparation for the Obama Care regulations and this change is causing people to rethink their futures prompting them to obtain both a self-directed IRA and real estate investments. With their salaries shrinking, they are looking for alternative revenue streams to build their retirement accounts.

So why is real estate picking up steam? Many people have lost their homes to foreclosure, others can’t get financing due to the new bank regulations, and some people simply do not have enough confidence in the real estate market to buy a home so they are looking for rental properties to live in. For these reasons, the demand for rental properties is at an all-time high and real estate prices, while slightly on the rise, are still low enough to make this an investors’ market.  Large cities listed in the top 10 fastest-growing U.S. cities of 2013 are among the most sought after in the rental market. There are droves of residential properties on the market at great prices and investors are buying them up quickly. Read More→

I am consistently asked about liens.  Who can file a lien?  How can I file one?  What are my rights?  These are all common questions I hear from real estate brokers, contractors, landlords and others.  For the next few months, I will discuss different industries that have the right to file a lien against real estate.  In all these industries, the right to lien arises when services or goods provided go unpaid.  I will also briefly outline the legal process for perfecting these liens and the necessary next steps.  To begin, I discuss real estate broker’s liens, specifically commercial real estate brokers and the Commercial Real Estate Broker Lien Act.[1]

Licensed commercial real estate brokers have the right to file a lien for services rendered, which are not paid.  There is no lien statute for residential real estate brokers.  Commercial brokers have the right to file a lien for virtually all compensation that has been agreed to.  This includes commissions and compensation for sales, leasing, property management, consulting services and auctions. 

Commercial brokers have the right to file a lien against commercial property only.  Commercial property is defined as all real estate other than: (1) “real estate containing one to four residential units;” (2) vacant land which “is not zoned for nor available for commercial, multifamily, or retail use;” or (3) agricultural land.[2]  Again, there is no right for a real estate broker to file a lien against residential real estate.  Read More→

So how are we going to get ready to have a conversation with our motivated sellers? I believe that readiness is a state of mind, and I have put together some ideas for you designed to help you have meaningful and successful conversations with motivated sellers resulting in profitable deals.

First of all, expect to be anxious and know that it’s okay to be anxious. You probably wouldn’t be very good at what you do if you didn’t care about the outcome.

Next, while you are feeling anxious, get in front of a mirror and practice what you are going to say to the seller. Do this more than once. The more you practice what you are going to say, the more comfortable you will be and therefore less likely to forget what you were going to say. Practice controlling your voice and be mindful of how fast you are talking. Your speech should be at a moderate volume and speed when speaking to a seller.

Remember to breathe! Practice what you are going to say all the way through without making faces, gasping or throwing out any expletives. Your seller doesn’t care if you’re speech is perfect, they just want to know what you can do for them to help them solve their problem. You might even want to practice what you are going to say in front of a spouse or close friend. Read More→

Okay, the media in general is touting the US economy is doing better than it has over the last bunch of quarters. People across the country are working again. Typically this news leads people to feel better about the overall economy. More directly, this has translated to a recovery in the real estate market.

Signs show home values are coming up from the lows of 2008-2011. It is easy to keep track of values using REIAComps. Sales in many markets have been increasing and there a good volume of houses to choose from and lastly the number of folks looking to buy are up.

These previously mentioned factors are good for people who purchased at the height in 2004-2007. This was the time period when negative equity was born. Upside down mortgages became common place far too often. Read More→

A conversation with Elsa Palmer, Owner of VA Staffing, a new business member with Atlanta REIA. 

Hello Elsa and welcome to the Atlanta Real Estate Investors Alliance. Tell our membership a little about VA Staffing. Virtual Office VA Staffing was designed for today’s business professional in mind. We pride ourselves in offering top-notch results to business owners and employment opportunities for committed individuals who want to work from the comfort of their homes. We are a U.S. based company with trained VA’s located all over the country with a variety of skill sets. Whatever task you need done, we pretty much have you covered!

What exactly is a VA? A Virtual Assistant is a professional that provides virtual, or distance support from their home office, to their clients as an independent contractor instead of an employee. VA’s work from their own home offices, use their own equipment, and provide services to businesses, investors, entrepreneurs, executives, loan officers, realtors, or any other busy person or business. Projects or assignments are usually communicated through e-mail, phone, or fax. Whatever the project, information is transferred easily between the client and their Virtual Assistant. Virtual Assistants are entrepreneurs, highly skilled in their profession and able to have a powerful impact on the productivity of those they work with.

What can a virtual assistant do? Almost any task a regular assistant can do and more! For Real Estate Investors, we can do FSBO research and calls to obtain leads, yellow letter mailing and handling of yellow letter calls to obtain leads, post ads, handle buyer calls, and any administrative task you might have. We also offer advertising/marketing (traditional & online), web development, social media, newsletters, articles, blogging, SEO, affiliate marketing, book keeping, data entry, follow up calls, appointment setting, travel preparations, reputation management, answering service, and more for any business! Read More→

America’s BIGGEST Ponzi Schemers

Posted on July 31, 2013 by

When it comes to Ponzi schemers, Bernie Madoff and Lou Pearlman are rank armatures when compared to many of our elected officials.  Can you spell D-e-t-r-o-i-t?

A Ponzi scheme is a FRAUDULENT investment operation that promises to pay BIG returns to its investors.  Problem is, the investors are paid with money gotten from additional investors, NOT from profits made by the investment.  At some point, there aren’t enough additional investors to cover costs.  So the operation goes belly up, and the investors lose EVERYTHING!

Last week, Detroit declared bankruptcy.  It is the largest city in U.S. history to do so.  You see, Detroit owes its retirees $3.5 billion.  One small problem – Detroit is $3.5 billion light of having the $3.5 billion it needs.  In other words, the money promised to pensioners (police, firefighters, schoolteachers and government workers) isn’t sitting in a bank account somewhere.  Instead, money currently collected from taxes is being used to pay the retirees.  But because the city no longer has enough tax money coming in, they were forced to declare bankruptcy – which allows the city to clear ALL of its financial obligations and NOT pay its retirees.  Doesn’t this sound EXACTLY like a Ponzi scheme to you? Read More→

We’ve been managing rental properties and tenants for nearly two decades.  Over the years, we’ve learned TONS – mostly through the school of hard knocks! 

In the beginning, we were clueless – as green as the fungus between my toes.  In our middle phase of landlording, we often made things much more complicated than they needed to be.  These days, hundreds of tenants later, we’ve boiled down what we look for in a tenant to the ridiculously simple.

Here are the four things I need from a tenant: 1) Someone who will take good care of the property. 2) Someone who can comfortably afford to make on-time monthly payments. 3) Someone who is easy to deal with. 4) Someone who will be a good neighbor.

Let’s look at each of these four categories and explain why they are so important to landlords. Read More→

Mon, August 5th at 5:00 PM @ Crowne Plaza Ravinia, Atlanta
Atlanta REIA Main Meeting
August 5th at 5PM at the Crowne Plaza Ravinia
Two Presentations on…
“The Truth About Automation” with Dustin Griffin
& “Selling Your Houses Fast” with Don DeRosa
Atlanta REIA Members Can Attend at No Charge.
Guests Can RSVP Online Now for $15 or Pay $20 at the Door.

On Monday, August 5th at the Atlanta REIA Main Monthly Meeting for August, we will be having 2 educational presentations…

Dustin GriffinAtlanta REIA Executive Director, Dustin Griffin, will be sharing the truth about how to automate your real estate investing business and knowing the difference between being under automated and over automated. Dustin will be discussing:

  • Websites
  • Investor Databases
  • Voice Mail Systems
  • Delegation
  • Live Operators
  • Virtual Assistants
  • Offline Marketing
  • Online Marketing

Don DeRosaCome out and join us and you will also hear local favorite, Don DeRosa, share his nine reasons houses don’t sell with plenty of details on How to Sell Your Houses Fast! Don will show you how to use his simple formula for a quick, successful and highly profitable sale. Here is some of what Don will cover:

  • The Nine Major Reasons Houses Don’t Sell
  • How to Get Properties Ready to Sell
  • Don’s Formula for a Successful Sale
  • How to do Less Work Marketing Your Home
  • How to Automate the Selling Process

So come out and join us at the Atlanta REIA Meeting on Monday, August 5th at 5PM at the Crown Plaza Ravinia Hotel in Atlanta to learn more about automation and how to sell or lease your investment properties faster than ever. We hope to see you there!

Mon, August 5th at 3:00 PM @Total Wine & More Perimeter
Mobile Real Estate Rockstars Group

Mobile Real Estate Rockstars GroupPlease join us for the “Mobile Real Estate Rockstars Group” (Rockstars) hosted by Don DeRosa at our “Meeting-Before-The-Meeting” on Monday, August 5th at 3:00 PM at Total Wine & More located at 124 Perimeter Center W (see map). The Mobile Real Estate Rockstar Group is an educational and networking group for investors who want to leverage mobile technology to become more competitive, profitable investors. You’ll learn how to use the latest apps, tips and techniques to use the information they need, right now, at their fingertips, from anywhere. At 5:00 PM, Total Wine & More will be offering a complimentary wine tasting to all those who attend our meeting and wish to participate. There is NO CHARGE to attend this meeting or the wine tasting for Atlanta REIA Members and guests. Thanks Total Wine & More!

Mon, August 5th at 9:30 PM @ Tilted Kilt Perimeter
Late Nite Networking at Tilted Kilt

Tilted KiltAfter the conclusion of the Main Meeting, we will be reconvening at the Tilted Kilt Perimeter located at 1155-B Mount Vernon Highway in Atlanta for the “Meeting-After-The-Meeting”. The Tilted Kilt will be offering half price appetizers as well as food and drink specials for our members and guests. Come eat, drink, network and have fun with us as hang out late into the night! Thanks Tilted Kilt Perimeter!

*Meeting Agenda
3:00 pm: Meeting-Before-the-Meeting at Total Wine & More
5:00 pm: Vendor Vendor Trade Show & Networking Begins
6:00 pm: Announcements + Have & Wants
7:00 pm: Networking Break
7:20 pm: Giveaways & Door Prizes
7:30 pm: Main Presentations with Dustin Griffin & Don DeRosa
9:30 pm: Late Nite Networking at the Tilted Kilt Perimeter!

*Please Note: Meeting agenda is subject to change.

Participating Vendors & Sponsors

Each and every month, for the duration of our meeting, we have a Vendor Trade Show in which you can come out and meet many of our participating business members who help sponsor our meeting. Vendors can Reserve a Table Here. Thanks again sponsors!

Craftbuilt, Inc.Craftbuilt, Inc. – We are a Metro Atlanta design-build construction firm specializing in whole-structure renovations, restorations, and new construction. No matter what the situation, we are up to the challenge! Read More>>

American IRAAmerican IRA – The American IRA mission is to provide the highest level of customer service in the self-directed retirement industry.
Read More>>

Halperin Lyman, LLCHalperin Lyman, LLC – A transactional real property law firm devoted to providing the full spectrum of non-litigation related real estate legal and consulting services to its clientele.
Read More>>

Networth Realty of Atlanta, LLCNetworth Realty of Atlanta, LLC – A licensed, full-service residential wholesale brokerage that specializes in finding quality wholesale properties and making them available to you. Read More>>

Lima One Capital, LLCLima One Capital, LLC – A fully capitalized, direct lender for residential real estate investors and homebuilders. We are fully capitalized and our team prides itself on closing loans quickly for our clients. Read More>>

New Western AcquisitionsNew Western Acquisitions – A full service Real Estate Brokerage that specializes in helping investors in acquiring inventory, securing contractors and lenders, as well as aiding in the liquidation of these assets. Read More>>

Advanta IRA AdministrationAdvanta IRA Administration – With the help of your local Advanta IRA staff, use your IRA to invest in assets you know, understand and control, such as real estate, notes & mortgages, private placements, and much more! Read More>>

Solutions Realty NetworkSolutions Realty Network – Providing expert property management and investment services since 2003. You invest and we take care of the rest! We’re the solution to all your real estate needs. Read More>>

Pete's Friendly Home InspectionsPete’s Friendly Home Inspections, LLC. – Pete’s provides home inspections, radon monitoring, gas/water/septic tests, checks pools/sprinklers and any other type of inspection needed to get you that next home! Read More>>

The Small Business AdvisorThe Small Business Advisor – A full service small business consulting firm specializing in QuickBooks with a wide variety of specialized services, trainings and products for small businesses. Read More>>

Angel Oak FundingAngel Oak Funding – A direct hard money lender headquartered in Atlanta. We provide renovation/construction loans for investors and or builders to purchase and renovate residential properties. Read More>>

Law Office of Fred P. KrossLaw Office of Fred P. Kross – A law firm specializing residential and commercial real estate closings, short sales, foreclosures, REOs, owner financing, contracts, probate and bankruptcy. Read More>>

Atlanta Carpet ServicesAtlanta Carpet Services, Inc. – Providing carpet, wood, vinyl, and tile, ACS is dedicated to every aspect of your floor covering needs from initial consultation to the sale and follow-up services. Read More>>

Fuller Center for Housing of Greater AtlantaFuller Center for Housing of Greater Atlanta – A faith-driven, Christ-centered, non-profit organization dedicated to providing adequate shelter for people in need in the Greater Atlanta area. Read More>>

CRS DataCRS Data – We offer comps from the MLS & FSBO’s, custom searches, property tax records, interactive maps, sales & mortgage info, real estate valuations, mailing lists & more. Read More>>

AC CagemanAC Cageman – We build, deliver and install a variety of products to help keep your property safe from theft and vandalism. From Air Conditioner Cages and Burglar Windows, Burglar Doors, Crawl Space Doors and Meter Cages. Read More>>

Simply Amazing Staging AtlantaSimply Amazing Staging Atlanta – We have a proven record of converting those “For Sale” signs into “Sold” signs. We use 5 proven and time tested steps to sell your home in record time.

  • Bowen’s Specialized Services
  • FirstCall Claims
  • Georgia Home Deals
  • The Appraisal Network
  • Mary Bryant and Associates, Insurance Agency
  • American Family, Robin Mitchell Agency
  • Invest Atlanta
See Atlanta REIA Events Calendar for More Events!

Last week, Kim and I drove to Savannah, Georgia to speak to the Savannah REIA (Real Estate Investors Association).  When teaching, in addition to presenting at a REIA’s monthly meeting, I do something most real estate investing teachers won’t do: I take the REIA members out to knock on sellers’ doors before the meeting.

Kim and I have built a very successful real estate investing business on the foundation of knocking on seller’s doors.  We don’t put out bandit signs (these are the “We Buy Houses” signs you see at intersections), we don’t do mail outs, and we have the WORST website in the world.

Lots of “gurus” TALK about knocking on sellers’ doors, but when it comes time to walk the walk, just try getting them into a neighborhood, out of the car and up to the door. Read More→

What's Happening at Atlanta REIAMonday is Atlanta REIA West Meeting where Gordon Catts will be discussing the ever changing real estate marketplace. Tuesday is the Note Buyers Group with Tom Boyer in Smyrna. Thursday is the Cash Cows Commercial Group with special guest, Bill Ham, at 5 Seasons Brewing in Sandy Springs, GA. Thursday is also Joe Thompson’s Haves & Wants Meeting at 5 Seasons Brewing in Sandy Springs, GA. Read More→