Author Archive

The Chaos of Foreclosure Morning

Posted on July 3, 2012 by

Bartow County CourthouseMost mornings I’m at my desk and working by 4:30 a.m. This is especially true on the first Tuesday of each month – this is the day Georgia’s foreclosure properties are auctioned off.

If you’ve seen Kim and me at the auction in Bartow County, we usually look calm, cool and collected…everything under control.  Just wish you could see us a few hours before the auction starts – the picture is VERY different!

Foreclosure morning is chaos around here.  Papers are flying around, computer keyboards click furiously, our foreclosure book is flipped through continuously, and the phone rings incessantly!  It truly is something to behold. 

As an example, let’s look at what happened the morning of last month’s foreclosure auction.  Read More→

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How Many Sellers Have YOU Seen?

Posted on July 3, 2012 by

Just CricketsA few minutes before this month’s real estate investors meeting began, I asked, “Who has done an interesting deal this month?”  About 20 people milling around stared at me blankly.  No one said anything.  Crickets.

“So no one has done any deals this month?  This is great news,” I said.  A lady asked, “Why is this great news?”  I answered, “Because we’re about to have our first ah-hah moment of the night.”

I asked each of the 20 people, “How many sellers have you met with in the past month?”  Altogether, the group had met with at total of ten sellers – ten sellers, that’s it.

Next, I asked, “What’s the real reason no one has done a deal in the last month?”  A guy answered, “We haven’t seen enough sellers.”  “Exactly!” I exclaimed. Read More→

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Where Best To Invest $93,000

Posted on June 18, 2012 by

Big Pile of MoneyMany folks who get into real estate investing say they’re doing it for the money.  The truth is, no one does anything for the money – NO ONE

When you’re done scratching your head, think about this: If you give someone $100,000 cash, would that person simply put the money on the table and stare at it for the next 30 years?  Of course not!  People don’t want money.  They want the things money can buy.

Let’s say that today you’re given a big pot of money.  What would you do with it?  Too many folks (broke folks) would rush out and trade their pot of money for a shiny red thing that honks and drops like a rock in value.  They mistakenly think that if they’re seen in a fancy red car, their “friends” will be impressed and think they’re rich. Read More→

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In last week’s column, we described what an option is and the advantages of using them.  This week, let’s look at a couple of different types of options in action.  (If you missed last week’s column, you’ll find it here.)

Let’s begin with the type of option that most folks are familiar with – lease options.  Lease options are best structured using two documents – a lease contract and an option contract.  The lease outlines the agreement between the landlord and tenant regarding property rental. The option outlines the agreement between the property owner (usually the landlord) and the tenant regarding the tenant’s right to buy the property.

There is a big difference between a lease purchase and a lease option.  With a lease purchase, the tenant is saying he WILL buy the property.  With a lease option, the tenant is saying he MAY buy the property.  A lease option locks the property owner into selling the property according to the agreed-to terms and conditions outlined in the option agreement.  On the other hand, the tenant can exercise his option and buy the property or he can simply walk away.  For most buyers, if their goal is to buy the property in the future, a lease option is a better, safer way to go. Read More→

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Kim and I have been investing in real estate since 1995.  Long ago, we learned that options are – BY FAR – the most powerful tool in real estate.  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 very popular, they are just the tip of the option iceberg.

Options allow you to control a property – a little or a lot depending on how the option is written – without the risks that come with property 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 a bunch of years.  No other document in real estate is this powerful! Read More→

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The #1 Killer of Success

Posted on May 25, 2012 by

The Greatest Secret in the World by Og MandinoThese days, with so much negative information out there pummeling us every day, it’s critical that we counterbalance all the doom and gloom news with twice as much positive information and stories.

For example, Kim and I spent this past week in Florida. One morning we went yard selling. This particular day, we came across a guy who was selling almost everything he owned. Turned out he was losing his home to foreclosure and had to be moved out in a couple of days.

The guy was so negative we had to stand a few extra steps back to ensure we didn’t catch his negative funk. He blamed his situation on the government, the banks, rich folks, the economy, BP Oil, Presidents Obama and Bush, etc. Never once did he take any responsibility for getting himself into his financial mess. Read More→

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HandshakeYou’ve done great! You bought an investment property, did an outstanding rehab and listed it with your realtor. Then it happens: You get a written offer from a potential buyer. Now what?

Let’s first look at what’s normally done, then look at another way that may work better.

Your realtor emails you the offer that is usually lower – sometimes a lot lower – than your asking price. Also, the seller is regularly asked to pay a portion of the buyer’s closing costs. Lastly, you’re given two days to respond to the buyer’s offer. Read More→

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Rental PropertyWhen Kim and I were in our thirties, we knew we needed to start preparing for our retirement years.  We both had family and friends who were in their mid-sixties and had to keep working because they couldn’t afford to retire.  (Social Security is no substitute for a retirement plan!)

Our big concern was where to invest.  My folks had done well in the stock market.  Kim’s had done well investing in real estate – they owned rental property.  Kim and I decided that real estate was the best way for us to go.

OK, we’ve all heard lots of landlord-tenant horror stories.  Sadly, because of these stories, not many folks view rental property as an excellent retirement vehicle.  But consider this: When you retire, if you own 10 paid-for rental homes that average $800 a month in rental income, would the $8,000 a month these homes provide help you to live better during your golden years? Read More→

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Lease AgreementLandlords – especially new landlords – often wonder (and worry) whether they are using an effective lease agreement.  Truth is, most landlords use terrible agreements.

When we bought our first rental property in 1995, we didn’t know anything about managing rental property or tenants.  Needless to say, we also knew nothing about lease agreements.  The realtor we used gave us a lease written by the Georgia Association of Realtors (GAR).  We thought it was the greatest document ever written! Read More→

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Some days, things go all wrong.  Other days, things happen that are so funny you can’t help but to blow milk out of your nose!  Really interesting days are when both of these things happen at the same time!

At April’s foreclosure auction, we bought a property on Autumn Place in White, Georgia.  It’s a very nice 3-bedroom, 2-bath home built in 2005.  It just needs a shave and a haircut (paint and carpet) before we can list it with our realtor.

Kim and I have been buying foreclosure properties since 1995.   The first mystery we had to solve was how to bid on a property at the foreclosure auction.  The second was what to do if we were the high bidder. Read More→

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Caterpillar or ButterflyIt can be argued that a butterfly and a caterpillar are one and the same.  OK, maybe they are – but not at the same time!  It’s one or the other – but not both!  So, which are you?

As real estate investors, we all start off the same – as caterpillars.  We just know the basics: how to crawl, eat leaves and poop.  Our world is limited to the tiny branch we’re clinging to.  We’re not much to look at, and we’re preyed upon by just about every creature in the animal kingdom.  Our life expectancy is about 12 seconds.

Now here’s the thing: God didn’t mean for caterpillars to stay caterpillars.  He meant for them to grow and develop into beautiful, high-flying, far-traveling butterflies…but only those that are hardworking and resourceful get to complete the journey from caterpillar to butterfly.

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Thursday, April 12th @ 7 PM in Cartersville, GA
North Georgia REIA Meeting
with Pete Fortunato & Dyches Boddiford
Atlanta REIA Members Can Attend at NO CHARGE!

Atlanta REIA Members,

Peter Fortunato and Dyches BoddifordYou are invited to this month’s North Georgia REIA Meeting at NO CHARGE! Just present your valid Atlanta REIA Membership Card at the door and get in for FREE! Get ready for our BEST North Georgia REIA Meeting EVER! Pete Fortunato and Dyches Boddiford will be our very special guest speakers!

MEETING TOPIC: 8 Benefits of a Deal

GUEST SPEAKERS:

NEW MEETING LOCATION: Our new home is the beautiful Hilton Garden Inn in Cartersville, Georgia, at Exit #288 (Main Street) off I-75. (See Map)

ALSO, A SATURDAY SEMINAR: Pete, Dyches and I will be doing a full-day seminar called “What Box?” on Saturday, April 14th from 9 a.m. to 5 p.m., in Cartersville GA. Only 80 seats are available. First 40 people who register get an invite to a one-of-a-kind cookout lunch along with Pete and Dyches to be held on Friday, April 13th from 11 a.m. to 2:00 p.m. around the camp fire at our horse ranch in Adairsville, GA! Read More→

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