Archive for December, 2012

How We Structured That Subject-to Deal

Posted on December 31, 2012 by

Two weeks ago, our column was about a lady who, because of a divorce, was being forced to move back home to Mississippi.  Problem was, she owed a lot more on her house than it was worth.

In that column, I briefly described the seller’s situation and touched on the creative deal structure I used to construct my offer.  Since that column ran, I’ve gotten a bunch of phone calls and emails asking for more details about my offer and whether it was accepted by the seller.  

Today, let’s tie up these loose ends.

The creative deal structure I used is known as a Subject-to Deal.  This is where you buy the seller’s property, but instead of getting a new mortgage, the seller leaves her mortgage in place.  You agree to make the seller’s mortgage payments on the seller’s mortgage for the seller.  Think of it as a form of owner financing. Read More→

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Jim HittJim Hitt will be our special guest speaker this month at the Creative Deal Structuring Group on January 9th (NOT Jan 2nd as usual) at 7PM at the Whitehall Tavern in Atlanta.

Jim talking about how to use your IRA and others IRAs to make money! What it would be like to structure a deal using other peoples money/ IRA?

If you have one or know someone with a retirement account, come join us to get insider information on how to put these funds to good use. Learn what this can do for you and your business! Read More→

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How to Learn About Real Estate Investing

Posted on December 29, 2012 by

After last night’s real estate investors meeting, three new folks came up and asked me the best ways to learn about real estate investing.

The two short answers are: 1) Sit down with a seller and ask, “Why are you selling such a nice house like this?”  2) Meet regularly with other real estate investors and discuss landlording, along with creative deal structuring and financing techniques.

There’s nothing – nothing, nothing, nothing – that takes the place of simply meeting with a seller and finding out why they’re selling and what they need to get in order to sell.  How do you do this?  Try calling a seller whose home is advertised for sale in the newspaper, and then make an appointment to meet with her. 

The method that works best for me is to knock on the door of everyone in our area who has a For Sale sign stuck in their yard.  When the door opens, I say, “Hi, I’m Bill.  I see your house is for sale.  I’m looking for a home in this area.  Would you mind telling me about yours?”  After answering a couple of questions, eight out of ten homeowners invite me in.  It’s simple as that. Read More→

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Bob MasseyOn January 7th at 3 PM at Total Wine & More located at 124 Perimeter Center W (see map), I am giving a presentation that you don’t want to miss. I am going to be going over the details of a $875,000 short sale I just closed that most investors would have abandoned months ago. Instead of giving up, I modified my strategies and ended up making more than if everything had gone according to the original plan! We are also going to be discussing mortgage fraud, securitization issues, and foreclosures. The banks have been defrauding homeowners for years, and we now have a way to use that to fight back against the banks and do some pretty incredible deals while helping underwater homeowners across the country.

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Merry Christmas and Happy New Year!

All of us at Atlanta REIA want to thank you so much for being a part of our organization this year and want to wish you and yours a very Merry Christmas and a Happy, Healthy and Wealthy New Year! We look forward to spending another prosperous year with you! Thanks again!

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Subject-to Deals May Be The Ticket

Posted on December 21, 2012 by

Today, I spent the day working with a guy who wants to get into real estate investing. For almost twenty years, he’s worked for a big company.  Now he realizes that his efforts and ideas are making that company prosperous.  Meanwhile, his net worth is only creeping up a millimeter at a time.  He’s very concerned about his future financial well-being.

We knocked on the first seller’s door at 9:15.  We found the property while driving through a neighborhood that Kim and I regularly work.  The property owner had a For Sale sign in the yard.  After the seller told us her asking price and the reason she was selling, she invited us in.

After a bit, we learned that because of a divorce, she was being forced to move back home to Mississippi.   Problem was, she owed a lot more than what the house was worth.  We then discussed our buying the house subject to her mortgage.

This is known as a Subject-to Deal.  Basically, what happens is this:  You go to the closing and buy the seller’s property like normal.  Next, things get creative.  Instead of getting a new loan and paying off the seller’s existing mortgage, the seller agrees to leave his loan in place, and you agree to make the seller’s mortgage payment on the seller’s mortgage for the seller.  Think of it as a form of owner financing. Read More→

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Is Financial Freedom A Choice?

Posted on December 19, 2012 by

Folks, this week’s column is very different from my usual.  I’m afraid a lot of you will think it’s overly harsh and that I’m one big jerk.  Who knows – you may be right on both counts.  It’s just that I truly feel that success – financial freedom – is a choice.  Actually, it’s more like millions of little-bitty, every-day choices – maybe call them habits – that we make each day.  If you make more bad choices than good, you won’t be pleased with the results.  Make more good choices than bad, and you’ll end up on easy street.  Simple as that!

Yesterday, I met with a friend (we’ll call him Ben) who is going through some tough times.  This is the letter I wrote him this morning.

Ben, sorry for the troubles you’re going through.  The thing is, you are where you are because of the past choices you’ve made.  On the other hand, ten years from now, you’ll be where you’ll be because of all the little choices you make from this day to that.  It’s all up to you!     

Your window is closing fast.  You’re not 30 years old any more.  On your current path, you won’t like where you’ll end up at 65.  You must start RIGHT NOW cutting every expense you can in order to free up every penny you can to invest in appreciating capital assets.  Time is a luxury you no longer possess!   Read More→

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Where’s Your Emergency Fund?

Posted on December 17, 2012 by

We’ve all heard the wise, old saying: Save for a rainy day.  Dave Ramsey calls it an emergency fund.  Whatever you call it, it should be enough cash to support you and your family for three to six months.  Because these funds need to be liquid – in case of an emergency, you want to be able to get to your money quickly – it’s best to keep this money in a money market account.

This morning, I met with a couple of other real estate investors to discuss year-end and 2013 tax strategies.  Part of our discussion was about our emergency funds and the question of when is enough really enough?

Right now, if you’re lucky, your money market accounts are paying a whopping 0.9%.  This means that if you have $10,000 in your emergency fund at the beginning of the year, by the end of the year it will have grown by a whopping $90.00!  Oh be still my beating heart! Read More→

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Have you ever wondered what it would be like to take an extremely successful real estate investor out to dinner?  What questions would you ask them?  What would you want to know?  What are you just dying to find out that will make a significant impact on your investing?  What is it that will help you make a lot more $$$$ in 2013?  What difference would that make for you in your business and your life?

Well guess what?  I’ve already arranged this opportunity FOR YOU, and it happens this coming Monday, December 17th at Wild Wild West Subgroup of Atlanta REIA! 

Listen up, folks, this is big– I got not one, not two, but THREE outstanding investors to accept my invitation to share with you on Monday, Dec. 17 at 6:30pm.  Our panel is made up of three of the most highly respected and successful investors right here in Hot’lanta! We have Steve Jordan, Johnna Lodge, and Robert Gilstrap in our line-up, who together have a combined total of more than 70 years of hard-core, in the trenches, real world investing and landlording experience!  They have all agreed to answer your questions, help solve your dilemmas, and offer up their invaluable knowledge and expertise to you this Monday…and the best part is, you get to ask them whatever questions you have on your mind when you join us!

Jump ahead of the crowd! Email me your questions RIGHT NOW to: lesliemathismentor@yahoo.com and I’ll guarantee* that your questions will be answered first, before we take questions from the audience on Monday! I must receive your email no later than 11am on Saturday Dec. 15 for this guarantee to be in effect. So go ahead and send it to me NOW!

You won’t want to miss your chance to spend some quality time with these seasoned professionals for sure.  The definition of ‘wisdom’ is learning from other people’s experiences.  Come get very wise with us, as it’s a rare opportunity indeed to get this kind of success and experience together in one room and have open access to them.  How much time can they cut off your learning curve?  What issues have you had that you’ve been beating your head up against the wall trying to solve, that they can easily solve for you?  If you don’t ask, you won’t know!

Take a break from your holiday shopping to do list and come join us at West Subgroup on Monday at the www.cherokeecattlecompany.com on Canton Road in Marietta.  We’ll have some holiday cheer, great food, and best of all, top notch sharing by these incredible folks.  Give yourself a gift this holiday season and come join us.  You’ll be glad you did!

The Wild Wild West Subgroup of Atlanta REIA meets this coming Monday, Dec. 17 at the Cherokee Cattle Company.  Atlanta REIA Members are FREE, guests are just $5 per person.  See you at the ranch!  The schedule is:

6:30pm—doors open

6:30 to 7:00—networking and order dinner

7:00 to 7:15— official start of program, announcements, deals, haves and wants (bring your flyers!)

7:15 to 9:00–speaker panel

9:00 to10:00—late night networking

10:00pm—restaurant closes

 

We’ll see you on Monday! 

Leslie Mathis

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Best & Worst Deals in 2012

Posted on December 14, 2012 by

The December meeting of North Georgia REIA is one of our favorites.  Real estate investors from around Georgia, Tennessee and Alabama show up to answer this question: What was your best and/or worst deal in 2012?

Why is it such an important question?  Because one of the best ways to learn how to be a better, wiser investor is to learn from the experiences – both good and bad – of other investors around you.  This keeps you from trying to reinvent the wheel.  Remember the old saying: A smart man learns from his mistakes.  A wise man learns from others’ mistakes. 

During the meeting, the first thing we determine is how the deal was found.  You quickly realize that there’s not a “the” way to find a profitable investment property.  Some folks knock on sellers’ doors.  Others do lots of internet marketing.  Then there are mail-outs and the foreclosure steps.  The list goes on and on. Read More→

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Change Is Gonna Do You Good!

Posted on December 12, 2012 by

I was born a blonde, but as I got older my hair turned auburn(ish).  When I was diagnosed with cancer, my sister colored my hair red to give me a much-needed lift, both mentally and physically.  But now that I’m pushing 55, my hair is turning grey and I find that it’s harder to keep it colored red. 

Ah, everything in life changes, doesn’t it?  If we are fearful of change, and reject it, then we miss out on so many great opportunities.

Change is happening to our real estate business, as well.  Years ago, Bill and I worked hard to buy properties before they hit the ‘steps’ at the foreclosure auction.  We dealt face-to-face with homeowners in distress, and really worked our ‘deal-structuring’ muscles to find ways to purchase homes prior to the auction. Read More→

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You’re probably asking “Are you really gonna talk about financial calculators?” and thinking: Yawn, yawn, yawn – wake me when it’s over!

Here’s the thing: Our real estate investors group is geared for experienced investors.  To master creative deal structuring and financing, we all need to know how to speak the same language.  A great communication device that accomplishes this task is a financial calculator. 

Remember, a financial calculator is about MONEY, not math!  Knowing how to make it sing and dance is critical to achieving financial freedom.  I promise, once you know how to use a financial calculator, your real estate investing world will never be the same.  Plus, you will be head and shoulders above most any investor you meet – including the so-called gurus!

Let’s use a financial calculator to answer this interesting question:  Can you become a millionaire by delivering pizzas part-time for five years?  If you think you can’t, then you’d be W-R-O-N-GRead More→

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