When getting started in real estate investing and especially Wholesaling, usually everyone is focused on what they need to do. And that is pretty obvious – get educated, put out marketing, talk to sellers and buyers, make offers, negotiate, and close deals. We usually know what we NEED to do. Whether we do it or not is a whole separate issue/article. So let’s set that aside for the moment and what I want to talk about now is what NOT to do when Wholesaling.

I will call these the DON’Ts of Wholesaling.

1. Don’t get hung up on the small stuff: I know a lot of people over analyze the situation and think that they need to create the perfect business entity before they get started; LLC or Incorporate?; What’s my cool business name going to be?; I need to design a cool logo for my company; I need to get cool looking business cards before I go to any networking events; I need to get my website up before I send any mailers; ETC. This could slow somebody down for months. The point is, get your marketing out 1^st, get calls 1^st, make offers 1^st, get a deal 1^st. Then worry about this small stuff.
2. Don’t sign up for ALL of the “Guru’s” courses out there: I know everyone is looking for that Silver Bullet of an idea that is going to get them over the hump and make everything Easy as Pie. But what happens is you start getting too many ideas and techniques in your head and you get the “Shiny Object Syndrome” where you bounce around from technique to technique or are just stuck in Learning Mode or ‘Paralysis by Analysis’ – and you never really get started in full force. Pick a way to do it (there’s not that many) – and just do it. And stay focused. There’s always a new course around the corner. Ignore it. Put your blinders on and keep plugging along. Read More→

As many of you know, our CEO and Senior Vice President are also avid real estate investors. Their experience has proven invaluable in servicing our clients most especially in relation to real estate closings. What you may not realize is that our client base consists largely of people who are using their Self-Directed IRAs to invest in real estate. This is a win-win for both our clients and the realtors who are servicing those clients.

Even more promising for both groups is that the real estate market is perfect for investors. Prices are still relatively low and there is a surplus of homes available. So, you may be wondering how you can benefit from the Self-Directed IRA/Real Estate boom. The answer is simple…any one can benefit from this boom. Whether you are an investor or a realtor, there is plenty of opportunity to increase your wealth. In part 1 of this article, we will speak to realtors about what they can do to obtain new clients and generate more income by working with Self-Directed IRA investors.

The first and most important thing is to get educated about Self-Directed IRAs. Listen, before you think this is a sales pitch, hear me out. Self-Directed IRA investors have something very important, money. They have the funds to close the deals. Consider that for a moment and you will realize that means, in many cases, financing will not be a factor. As you know, financing often results in road blocks along the way that can prevent you from closing the deal and collecting your commission. The other thing that many Self-Directed IRA investors have is experience. They are familiar with the real estate process which lessens the chance of a delayed and/or failed closing due to a buyer’s inexperience. Self-Directed IRA investors are also great repeat clients. They buy numerous properties and the better their success, the more they buy. Read More→

It is the goal of this column to answer questions about QuickBooks and how it is used in the REI arena. Know how to record transactions in the proper way and have your set of books in good shape when it comes time for taxes. It is our intention to do this by you, the members submitting questions to Karen@smallbusinessadvisor.biz, and getting answers here in this column.

Q: I printed out my P&L from QuickBooks® and it shows that the bottom line Net Income is $30,000.00 but, my bank account does not have that much in it.  Where is this money?

A: Every month you should be printing out the P&L (Income Statement) AND your Balance Sheet.  Each of these reports is only one half the picture, you need both together to know and understand your finances.  Look on the Balance Sheet in a couple of areas: The Equity section may show where you took money from the business and spent it on personal items; or, you may have mortgages/loans for properties that you are paying every month in the Liability section.  Most likely this is where the money is that is not showing up in the bank. Read More→

When one decides to invest, in most cases, he/she starts out by themselves or with a partner or two. The over-head expenses are minimal and only a few systems are put into place. However, over time as the amount of contracts increase and the number of projects grow expansion is required. The question is, how do you know how big to expand or if expansion may be too soon. This has been asked and will continue to be asked by all wholesalers, investors and all other entrepreneurs.

When one mentions expansion in relation to real estate, it may mean a number of different things. It could mean taking on more renovation projects, taking on employees instead of only commission workers, getting an office space or bigger space, a more sophisticated CRM system, hiring a project manager to supervise the projects, etc. First, check your current “structure” and make sure that everything that is currently in place is scalable. As a small to mid-size operation the system you have in place now may not work on a larger scale. You want to streamline your operation now and find out if it is truly ready to be taken to the next level. Real estate, specifically investment real estate, is not the easiest business to streamline unless you pick a niche and only focus on that niche. As an investor you know there are tons of ways to put a deal together. Every month even the REIA puts together a meeting focusing on different ways one can invest in real estate. Most real estate investment companies I have met focus and structure their company behind one niche, such as flipping houses, but still continue to do other things when the opportunity presents itself. For example, if a person focuses his/her business on buying, fixing and flipping properties he/she will still wholesale, subject-to, rent, owner finance, etc. a property if the opportunity was presented and it made sense. Read More→

Were you or someone you know foreclosed on by a lender who is widely known to committed massive and systemic fraud in their mortgage practices?  Have no fear.  After having been bilked by independent consultants to the tune of $2 billion dollars, the Office of the Comptroller of the Currency has given up investigating the issue itself and asked the banks to please hand over any proof they might have of having improperly foreclosed on people.

That’s right.  After being provided with $17 trillion in various forms of taxpayer-funded relief, the government is now allowing the banks to be in charge of the investigation into their own foreclosures.

There is a charitable way to view this development.  The regulators could be setting up the banks to nail them for failing to comply with regulations.  This would extend the statue of limitations for future federal actions against the banks.  This tactic is possible, but forgive me for thinking it slightly more likely that the government is abdicating its responsibility to the banks after having been nailed for squandering the time and money it was given to handle the problem on its own.

If you were worried that this was a sign that the government wasn’t serious about prosecuting the people and institutions responsible for setting up one of the biggest financial crises in history, fear not!  The District Attorney for New York County has moved forward with the prosecution of Abacus Bank.  Read More→