Archive for real estate investing
Use What You Have… to Get What You Want
Posted on March 15, 2011 byPete Fortunato (PeterFortunato.com) has been one of my main real estate investing teachers for many years. The guy is phenomenal! (Not to be confused with pneumonia…I’m dyslexic – what happened to “spell it like it sounds?”) Pete is one of the best and most creative deal structurers on the planet!
Pete has a great saying: “Use what you have, to create what you need, to get what you want.”
Until recently, I’ve never fully understood what he meant. But finally, the light turned on!
As real estate investors, we’re often asked by prospective tenants or buyers, “Will you work with me on the deposit?” The usual answer is, “No. Are you nuts?” Ok, perhaps we only think the “Are you nuts?” part.
Point is, we’ve always required the cash up front in order to make the deal work.
Similarly, when we’re buying a property, all too often, the homeowner also wants all the cash up front. Since I’m always light of having the amount of cash the seller needs, the deal is lost.
Now, let’s think like Pete. It’s not the cash that the seller wants, is it? Isn’t it what the cash will buy or do that’s the key? Read More→
The Fair Lease/Purchase… An Investor’s Perfect Hybrid!
Posted on March 14, 2011 byWe see them all over the roads today. Growing in popularity, Hybrid vehicles are beginning to offer an enticing option to dependence on foreign oil supplies. Similarly, the Buy Low, Rent Smart, Sell High lease/purchase model offers investors a Hybrid of the “buy and flip” and “buy and hold” investment models.
Most residential investment models resemble and can be grouped into one of two general categories. Each has a major flaw that concerns many investors who consider or invest in each model.
The “buy and flip” model by definition is for the investor who seeks to purchase property at a discount, oftentimes improve the property, then sell the property quickly for immediate gain. This model is ideal for investors who have no interest in landlording, as the “buy and flip” investor does not intend to seek a tenant for the property in advance of sale.
The main problem with the “buy and flip” model is that if a buyer does not come by quickly, then the investor is faced with discounting the property and/or involving a real estate agent in the marketing of the property. Due to this possibility, most “buy and flip” investors need a discount of 25% or more even after adjusting for the necessary repairs and improvement. With such high investor discounts, the pool of properties available with such significant discounts is often small. Simply put, the higher the discount the investor needs to make his or her model work, generally the fewer properties available at such a steep discount. Read More→
Never be the Motivated Guy in the Deal
Posted on March 9, 2011 byA few days back, Brad flew in from Virginia to discuss his real estate investing business. He’s an experienced investor who, for the past three years, has been having a really tough time keeping his head above water.
Brad owns 17 single-family homes, 2 duplexes and a 26-unit apartment building. He wanted me to look over his portfolio to find out what he’s doing wrong and what he can do to become more profitable.
Over the years, I’ve had the opportunity to meet with a lot of investors, study their portfolios and discuss ways they can do better. One of the biggest and most common mistakes made – by both new and experienced investors – is doing deals that should never have been done. Read More→
The Three Faces of Foreclosures
Posted on March 8, 2011 bySo you want to invest in residential foreclosures? Not sure quite where to start? It is helpful to understand first that there are three faces to “foreclosures”, each with very different characteristics.
The first face of foreclosure investing is the “pre-foreclosure”. The pre-foreclosure period begins when a homeowner gets behind on his or her loan, and ends with the foreclosure sale. The pre-foreclosure phase itself is divided into two stages.
The first stage covers the period of time beginning when the homeowner misses their first mortgage payment, and ends in the final month preceding the impending foreclosure sale. During this time if a homeowner is not already marketing their home, it will be up to the investor to reach out to and find these distressed homeowners through ads (“We buy homes fast” and “We have CASH for homes”) and networking.
The second stage occurs during the final month leading up to foreclosure. The precise laws differ from state to state, but most states require some form of public notification of a pending foreclosure. Investors can seek out these notifications, and many have ample contact information for the investors to approach the distressed homeowner. Many larger communities have a number of online and subscription services which compile the pending foreclosures in a specific geographic range. You can also network within your local real estate investors association and/or do an internet search (e.g. “foreclosure listings in order to find these publications and services). Read More→
How to Buy a Home for $101 – REALLY!!!
Posted on March 5, 2011 by
There Kim and I were, standing in front of the Bartow County Courthouse in Cartersville, Georgia, at the December 2010 foreclosure auction – freezing our tails off. We’ve been working the monthly foreclosure market since 1995.
Cheryl Bagby, the young lady who cries the foreclosures for McCalla Raymer, the largest foreclosing attorney in the southeast, had just finished reading the legal notice for a home in Acworth, Georgia.
It was a nice 3-bedroom, 2-bath home in a great location on about an acre of land. The home was rented to a tenant who was paying rent of $795 per month.
When Cheryl finished reading the legal, she said, “The opening bid for this property is $100. Are there any other bids? Going once, going twice….” What happened next will blow your mind! But you’ll have to read along a little further if you want to know how this story ends. Read More→
Today: The “Perfect” Time to Invest
Posted on March 5, 2011 byShould an investor swim or reach for a life preserver?
Just a few years ago, the number of real estate investors was growing by leaps and bounds; however, today many investors that were attracted to real estate in the early part of this decade due to skyrocketing property values have retreated to the sidelines. The market has been cooling nationwide, and so it seems has the appetite of many investors. The million dollar question is, are they right? Should other investors follow their lead?
To help answer this question, let’s look at a similar occurrence that happened in the late 1990s in the stock market. Stocks began to appreciate rapidly in the mid 1990s. In response, stock investment clubs popped up all over the country. The increased interest in the stock market drew more attention to stocks from previously inactive and novice investors. This brought more money into the stock market, which in turn drove prices even higher. The bubble burst on the stock market in the early 2000s. Stock investment clubs closed and interest in the stock market waned in response to the declining values.
The end of the bull market and start of a bear market in the early 2000s sent many of these new stock investors to the sidelines, just as real estate investors attracted to skyrocketing property values earlier this decade have also just recently retreated to the sidelines. As we asked above, are the retreating investors right? The answer is a resounding NO. Read More→
Atlanta REIA West Meeting Starts on Monday, February 28th at 6:30 PM
Posted on February 27, 2011 byBuying REO Properties at Auction
What to Expect & How to Buy
So many properties have been foreclosed on and repossessed by the banks which are using “ballroom auctions” to liquidate the extreme excess of properties they have in inventory right now. Many times these REO’s sell for 40-50-60 cents on the dollar! There are some incredible deals to be had at these auctions, but you MUST know what you are doing to play in this game. The deals are plentiful if you know what to look for and what to avoid.
Come join us on Monday, February 28th at 6:30 PM as we kick off our very first Atlanta REIA West Meeting at the Cherokee Cattle Company located at 2710 Canton Road in Marietta, GA, where Leslie Mathis will take you step-by-step through what you can expect, and more importantly, what you need to know, to successfully buy REO Properties at these ballroom auctions. She will even cover a couple of strategies that will allow you to make quick cash without long-term ownership, simply by putting these properties under contract, then finding investor-buyers for them. Get paid thousands of dollars in just 30 to 45 days!
Atlanta REIA West wants to hear from you—your input is needed! Come network, learn, and mastermind with us as we kick off this exciting new group. This will be your opportunity to let us know what’s important to you, what you want to see and hear, meeting topics, etc. at future Atlanta REIA West Meetings. This is your group, so let us know what you want it to be. Come be a part of custom-building this group to your desires! Whether you are brand new to real estate or a seasoned investor, you will find this evening to be both very informative and entertaining. Atlanta REIA Members can attend this meeting for FREE. Other REIA members and guests only pay $5.00. See you there! Read More→
Building a Buyers List Workshop – February 19, 2011
Posted on February 14, 2011 by
On February 19th, 2011 from 10 AM to 5 PM, Gordon Catts and Dustin Griffin, will be teaching our first Atlanta REIA “How to Build a Buyers List Workshop” at 1960 Skylar Hill Dr, Suite D, in Buford, GA.
In the highly competitive real estate market we operate in today, it is foolish to wait until you have a property and then try to generate a buyer specific for that property. There has to be a better way!
Generate a list of buyers that you can plug into properties as they become available. If you are in the business of being an investor, it makes sense to create and manage a strong buyers list. It’s much more efficient and will help you make wiser and more profitable real estate investment decisions.
Building a Buyers List Workshop
- When? Saturday, February 19th from 10:00 AM to 5:00 PM
- Where? 1960 Skylar Hill Dr, Suite D, Buford, GA (map)
- Why? To learn how to build a strong buyers list
- Cost? $49 for Gold Members, $79 for Silver Members & $99 for guests
- Class size? Workshop limited to 30 people. Reserve your seat now!
Wholesaling 101 Workshop – Feb 26, 2011
Posted on February 14, 2011 byPlay the Real Estate Game with
Little to NO Risk with BIG Profits!!
“Wholesaling 101 Workshop”
Wholesaling is a great strategy for making quick cash, low risk, without the use of your credit, income, or money (when done correctly). Wholesaling real estate is among the most popular investment strategies because anyone can do it — you don’t need a real estate license or a lot of money to start. And once you start, it’s nearly impossible to keep the money from pouring into your bank account.
This is the Atlanta REIA Wholesale 101 Workshop taught by Russ Hiner. We will teach you the 2011 wholesale strategies you need to succeed. There is no need for you to have money out of your pocket or credit, you do no repairs or work yourself and they are usually done in a few days or weeks. Read More→
Evening with an Expert Webcast Replay: Andy Heller on Buying REOs Lender Direct
Posted on February 4, 2011 by
REO Expert, Andy Heller, talked about why GA is the #1 state in the to buy bank owned REOs for pennies on the dollar and why the best time to buy REOs is right now. Andy talked about creative ways to find REOs; how buy them lender direct before they are listed; how to negotiate with lenders; how to make offers; how to determine value; how to pay for them and so much more. Read More→
Courthouse Field Trip on March 25, 2011 with Gordon Catts
Posted on January 31, 2011 by
Learn insider secrets of locating property, lenders and other investors, as well as how to research ownership and mortgage information, sales prices, liens and judgments, etc. We will take an actual tour of the courthouse! Courthouse records are easily accessible and offer a variety of opportunities. We will find property owners of vacant properties. Locate legal descriptions of properties. Find out sales prices before making an offer. Find out about private lenders. See what liens and judgments are outstanding against the property before making an offer. Find out what else the seller/buyer owns. We will go into the Deed Record room, examine the books as well as go into the tax assessors domain to determine how to track down ownership of vacant properties.
“Courthouse Field Trip”
with Gordon Catts on March 25th, 2011
Meet at the Station House in Cumming at 9AM
New Atlanta REIA Mastermind Group for Real Estate Investors
Posted on January 31, 2011 byUpdate: This Mastermind Group has reached capacity and is now a closed group. You may contact Russ or Beth to put your name on the waiting list in case any new spots open up.
Russ Hiner and Beth Fasnacht are teaming up with the Atlanta Real Estate Investors Alliance to form a brand new Real Estate Investor Master Mind Group on January 31st, 2011. They will be meeting held at 8AM at La Madeleine French Bakery & Cafe located at 1165 Perimeter Center W (map) in Sandy Springs. Come join us and help shape the future of this new group!
Mastermind Mission: Support the Business Owner/Operator in a positive, uplifting, and trusting environment for the mutual benefit of the organization.
