Archive for The Profit
What’s It Gonna Take? How to Finally End Procrastination & Take Action!
Posted on August 1, 2016 byThis article was not easy to write. In fact, it was one of the more challenging articles I’ve written in a while. Why? Because it deals with something that’s not easy for us to talk about: The reason why most people don’t take the action they know they should so that they can have the success they say they want to have.
The only place where success comes before work is in the dictionary. It’s an old-school, classic, tried-and-true principle: If you want to have success, you’ve got to work hard to make it happen. And hard work means taking action.
Why do you think most people don’t take the action that needs to be taken? I believe it comes down to two things: 1. Lack of Knowledge, or 2. Abundance of Fear. Read More→
Create a Wealthy Mindset And Never Be Poor Again
Posted on August 1, 2016 byDid you ever wonder why some people are really wealthy and some people barely live paycheck to paycheck? Did you ever think “Why can’t I be wealthy like them?” What do the wealthy people know that I don’t? “How did they get rich? These are all valid questions, but I would say, the reason why you are or aren’t a wealthy person is entirely between your ears. So what exactly do I mean by that?
It’s simply this. Wealth is based on a state of mind, not on how much education you have, how many hours you work, or who you know. A wealthy mindset is created by believing in who you are, who you want to be and where you want to go. It is said that our thought processes control the person we are and the person we become, and this is so true. I know a lot of people, many of whom are real estate entrepreneurs, who have become extremely wealthy and yet came from backgrounds of poverty and little or no education. Read More→
Celebrating Financial Independence Day
Posted on August 1, 2016 byWhen we think of the Fourth of July we think about fireworks, grilling, and being with friends and family in celebration. I am a very big pyrotechnics fan, I always have a supply of fireworks for any occasion. If there is any excuse to launch a mortar or rockets, then I am very excited. Yes, I have gotten my share of injuries. I still have my eyes and fingers. The injuries healed. This is just like getting involved in real estate. You must know the risk and rewards when you buy and sell real property.
When I am picking out the right explosives to use in a celebration I have certain criteria. The mortars have to have color and reports. I also have rules in real estate. I have certain types of houses which I will buy and others I will pass on. I will pass on certain areas. I need to know what is the profit/reward ratio. The process I use has four simple rules. The first rule is to know what you are buying. Are you buying a house, commercial property, apartments, or storage units? How big? Get it inspected so you know what you are getting yourself into. Read More→
Sage Advice From an Old Investor
Posted on August 1, 2016 byAfter closing the doors of North Georgia REIA forever, we have been reminiscing about the best lessons we’ve shared with our group.
With this in mind, here’s some sage advice from an old investor.
How do I know whether a deal is good or not? How do I know what I’m looking at? And if I decide to take the deal down, how do I get it funded fast without going to a bank?
When Kim and I began our investing careers in 1995, we thought all houses were pretty much the same. But over time and with experience, we’ve learned what types of houses make the best investments. Read More→
Do You Have a Burning Desire to Buy One Hundred Houses Per Year? – Part 1
Posted on August 1, 2016 byThis is an article I wrote a few years ago. Again I am hearing the rumblings of some of my students who believe they can buy 100 houses or more every year and it scares me to death. I believe what this article says is so important for every investor to know. That is why I decided to have this article republished.
Recently I was talking to several of my students who each said they wanted to buy 100 houses this year. These students had listened to one of the guru’s who had bought and sold over one hundred houses in one year and are now teaching people how to duplicate what they had done. I listened closely to these bright eyed inexperienced students tell me they wanted to do the same as the guru and it frightened me to death. Later over dinner, I mentioned what I had just heard to my wife. She encouraged me to tell my tale of woe about the years of agony we experienced because I got too big for my britches and against my wife’s better judgment I had tried to do the same thing myself. Read More→
Atlanta Area Statistics Are Important in Analyzing Real Estate Deals
Posted on August 1, 2016 byAtlanta, Georgia is one of the strongest real estate markets in the US and has favored Sellers rather than Buyers since spring of 2013. According to Realtor.com, the median list price in Atlanta has gone from just over $200,000 in 2014 to over $300,000 in 2016 and is currently leveling off. A $100,000 median price gain in two years is nothing short of fantastic. See Figure 1.
Figure 1
For the purposes of this article, we are talking about single family detached in these areas. See Figure 2. Read More→
The Profit Newsletter July 2016 Edition
Posted on July 11, 2016 by
The July 2016 Edition of The Profit Newsletter, the official newsletter of the Atlanta Real Estate Investors Alliance, is now available for download. There are 50 pages this month full of upcoming meetings, workshops, webcasts, educational articles and other valuable information for your real estate investing pleasure and success. Download it and check it out!
The Profit is Atlanta REIA’s digital, interactive newsletter for serious real estate investors delivered as an Adobe PDF file to read on your PC, Mac, Smart Phone, iPad or other mobile ready devices. Many of the articles and ads in The Profit contain many hyperlinks you can click to get more information online! The high res version of The Profit is “print ready” for those who want to print the newsletter on their home or business printer.
Be sure to Subscribe to The Profit by Email or Subscribe to The Profit by Text so you don’t miss a single issue.
Options: The Safest & Cheapest Way To Control Real Estate
Posted on July 11, 2016 byLong ago, Kim and I learned that options are an incredibly powerful deal-structuring tool that allows you to control lots of real estate for little or no money…and with very little risk! And here’s the best part: Because so few know anything about options, you have almost no competition!
Simply put, 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 fairly popular, they are just the tip of the option iceberg.
Options allow you to control a property without the risks associated with 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 decades. No other document in real estate is this powerful! Read More→
Forget Ownership, Just Control A Property And Make Money!
Posted on July 11, 2016 byAre You Afraid To Buy A Property Because You Can’t Qualify For A Loan Or You Have Less Than Good Credit?
Today I had an interesting conversation with one of my Advanced Life-Line students who confessed that he continues to have great anxiety and fears making an offer to buy a property even if it would be a good deal for him. He always hesitates pulling the trigger and submitting his offers because of his fears. He is really missing out on creating an income stream he really needs as well as being able to create wealth over time.
Being a new Life-Line student he has fears of buying any property where he will have to get some type of financing to pay for the properties he is making offers on. After talking to him about doing the numbers before making an offer to buy any property he felt much better but he still had fears of having to deal with the responsibilities associated with ownership he had never had to deal with. Seeing I wasn’t getting very far explaining how to buy real estate with the least amount of risk I finally decided to talk to him about a powerful way to profit from real estate without having to deal with the responsibilities of ownership, that I still use today. Read More→
Benefits and Types of Passive Investing
Posted on July 11, 2016 bySome people avoid investing in properties due to the amount of time and energy it takes. REIA comps is a great resource to assist you in researching and deciding on a property. After your purchase of a potential property you need to actively care for your investment either by becoming a landlord or managing the property. Real estate investment can be time consuming yet rewarding, and the question is asked, how many properties can one person manage at one time? This is why investors who are looking at diversifying with real estate participate in passive real estate investing.
Passive real estate investing removes headaches for those who don’t want to deal with the day to day issues of property management. There are several different ways you can do this, each with their own set of pros and cons.
One could form a partnership, general or limited, and have the partner take the responsibility of managing the property(s) your partnership purchases. To move through the loophole of having financial backing, I suggest considering working with only one to two people you know and trust. Pooling resources in a partnership allows participants to purchase more expensive properties with less outside funding. However, as suggested you need to trust your partner to take care of the properties and your best interests, and if neither of you are experienced in real estate investing, working with the Support System via REIAComps provides the knowledge you need. Read More→
Still Crushing Short Sales!
Posted on July 11, 2016 byMany Investors don’t think that they can short sale an FHA loan and still make a profit, due to the guideline that FHA accepts a minimum 88% of the appraised value. I am here to tell you about an FHA deal that will bring a Pretty Profit!! This house is a 3 Bed/1.5 Bath/1.5 car garage, approximately 1200 sq ft in Casselberry. From the beginning, it was challenging since we had non-paying tenants in the home that were not as cooperative as a Seller would be for access to the property. The best part of a typical short sale is that a lender will obtain a value that is good for 90 days and if you are in a Seller’s market, you end up with a higher profit, since the values are increasing based on the sales.
The Seller just wanted out of this house debt and didn’t know what to do with non-paying Tenants!! The lead came in from my office signage. The property was listed and an offer was submitted. It took the short sale lender about 90 days before they ordered the value on the property. We were very concerned about having access to the home when the appraiser came out from the short sale lender. On an FHA deal, the short sale lender requires an appraisal on the home which is good for 4 to 6 months, versus the standard 90 days for a BPO value. Read More→
How To Build Credibility With Buyers – Part 2
Posted on July 11, 2016 byLast month, we started by talking about a couple of basics that are an easy way to start setting yourself up for success with Buyers. Step 1 was Confidence and Step 2 was having an Online Presence. Both of these steps are key because people make first impressions as fast as you blink your eye these days. How you present yourself as an individual first is paramount. People do business with people they know, like and trust. The first two steps address this directly. Let’s continue with the next steps:
Step 3: Have a Real Deal
It may sound counterintuitive but if you have been in this business for a while, you know there are people that literally sit at home or work, get an e-mail from another investor, do zero due diligence if they even read the e-mail and then just click the forward button to their Buyers.
This is a fantastic way to kill your credibility in one shot using the miracle of technology. What makes it worse is there are times where the deal is not even under contract with the person sending the wholesaler the email. Then as a ‘trust everyone is doing the right thing’ investor, you forward that to your Buyers. I lost track long ago of Buyers that ‘do not like or see value in wholesalers’ because of this very thing. Read More→
