This past weekend, I was one of the instructors who taught at a boot camp for new real estate investors. At the end of the four-day event, the frequently asked question was, “What do I do first?”

The advice from the instructors varied. One said to spend the week reviewing the course notes. Another told the investors to put their real estate investing team together. Several thought it best to work on a marketing plan.

When it comes to advising would-be investors how to start – or seasoned investors how to get back on track – I often feel like a salmon swimming upstream. I think the FIRST, most important thing an investor needs to do is to get face-to-face with sellers as SOON, and as OFTEN, as possible!

A number of the attendees didn’t care too much for this advice. One woman best summed up the fears in the room when she said, “I’m not sure what to say to a seller. I’m not comfortable creatively structuring a win-win deal. I don’t know what to do if the seller accepts my offer.” Read More→

Why would a reasonably sane person own rental property?  After all, we’ve all heard lots of landlording horror stories, right?  You know the ones: the tenants refuse to pay rent, the tenants trash the property, the tenants move out in the middle of the night, etc.

Here’s something to consider: We had 61 investors attend our monthly real estate investors meeting in October.  These 61 mom-and-pop investors control 573 properties.  A couple of weeks back, I (along with seven other instructors) was asked to teach at a boot camp for new real estate investors.  The instructors controlled 122 properties.  All told, that’s 69 investors controlling almost 700 properties – incredible, isn’t it?

So why do all these folks own rental property?  Easy answer: They want MAILBOX MONEY!  What’s mailbox money?  It’s when you get checks in the mail because your capital is working for you, instead of you working for your capital.

Are there other ways to get mailbox money?  Sure – some folks own stock and live off the dividends.  We have friends who make purchase-money loans to real estate investors and live off the interest they make.  Of course, there’s also a one-in-a-billion chance that you’ll win the lottery – talk about a shaky retirement plan! Read More→

A few months back, one of our rental properties went vacant.  It’s a nice three-bedroom, two-bath home with a fenced yard.  After a bit of paint and clean up, we stuck a For Rent sign on the lawn.

Over the course of two weeks, we received several great applications.  One application stood out above all the others.  The applicants had been on their jobs for years, they had solid references, they had the move-in funds ready to go, and they kept their current residence immaculate.  They would make PERFECT tenants!

Shortly before I called these ideal tenants to give them the good news that they got the house, I got a call from someone who wanted to buy the property.  They explained that their credit stunk, but they had $10,000 to put down.

Their $10,000 down payment got my attention and put the brakes on everything.  A thorough background check revealed that the prospective buyers didn’t pay their bills or maintain their current residence well.

Over coffee, the potential buyers explained that they had just inherited $20,000, had always wanted their own home, loved the house we had on the market, and buying it – if we gave them owner financing – would be a dream come true. Read More→

Is real estate a good, safe, profitable investment?  Consider this: More millionaires have made their fortunes using real estate as their primary investment over any other investment vehicles – including stocks and bonds.

With real estate, an average American with no college education can buy a house – often at less than 50 cents on the dollar – with little or none of his own money, get great tax breaks, and here’s the best part: have his tenant (or buyer) pay for it all!

Can you name any other investment that can match these benefits?  No?  So then why aren’t a lot more folks investing in real estate?  Why do so many people choose to be realtors instead of investors – lord knows, investing pays a lot more!

The answer to these questions is best summed up by the excuse most would-be investors give: “I’d love to invest in real estate, but I don’t have the money, and the bank won’t loan me a dime.”  Folks, this is one lame, stinkin’ excuse! 

Rarely do Kim and I go to banks for our purchase funds.  In fact, since 2005, we can count on three fingers the total number of loans we’ve gotten from banks to do our deals.  So how are we paying for them? Read More→

Last month, I did a knocking-on-sellers’-doors challenge.  To help folks better understand what real estate investing is really like, I posted my daily results on North Georgia REIA’s Facebook page – including pictures and many of the creative offers I structured!

For the month, I spent 9 days out getting face-to-face with sellers.  In total, I talked to 30 sellers at the door, 27 invited me in, and I made 23 written offers – including a $1 million offer on a $125,000 house!

Yesterday, I spoke with an investor who followed me on Facebook.  He said, “If I had been you, I would never have done a public challenge.” “Why not?” I asked.  He answered, “Because you talked to all those sellers but didn’t find a single deal.  Now everyone is gonna think you’re nothing more than a big, fat, ball-headed failure!” Read More→