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→

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→

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→

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→

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→

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-G!  Read More→

Something new and bizarre is happening at the foreclosure auction in Bartow County.  It seems to be a seismic event that marks an increase in the price properties are selling for on the steps.

A few months ago, a different kind of investor showed up at the Bartow County auction.  Their mission is to buy around 200 properties a month in the Atlanta area.  One company buying two hundred properties a month is unheard of in Georgia!

The buyer is some sort of investment company that controls a conglomerate of money.  Here’s how it seems to work: The investment company has a good number of folks pool their money into one pot.  I understand – but have not confirmed – that these money-partners are promised a return of around 8%.  This is a much higher yield than they can get at a bank.  The investment company uses these funds to purchase property at foreclosure auctions.  Once a property is bought, the exit strategy is to find a tenant for the property and manage it as a rental.  One day, when property values return, I’m guessing the company will sell these rentals for a nice profit.  It’s an interesting business model. Read More→

Just mention tenants and rental property at a party filled with “normal” folks and the partygoers scatter like mice after the lights go on.  POOF!  They can’t get away from me fast enough!

I don’t get it.  Many folks can’t retire because they’re broke.  They’ve worked their whole lives and have little to show for it.  Lord knows, getting a $1,000 Social Security check every month isn’t my idea of a retirement plan.  However, receiving $15,000 a month in mailbox money is a lot more like it – don’t you agree?

People often point to the downside of being an investor – tenants.  True – if you put a bad tenant in your house, then you’re not gonna have an enjoyable time.  The other side of the coin is this: Most tenants – if you screen them properly – are easy to work with, take great care of the property, pay their rent on time and are good neighbors. And here’s the best part – you get to choose which tenant – a good one or a bad one – goes in your investment property! Read More→

Just finished having a nice lunch with two experienced real estate professionals.  One was a realtor, the other a mortgage broker.  To be specific, they wanted to know how quickly I thought property values would rise from this point forward.

All real estate is local.  Just because values may be skyrocketing in New York, it doesn’t mean they’re also skyrocketing in North Georgia.  These are two completely different areas.  Thankfully, in Adairsville, we’re not covered up with hard-to-understand Yankees!

Home values have been dragging along the bottom for about a year.  I explained that values would rise only after the excess inventory was gone.  They stated that there wasn’t any more excess inventory in Cartersville, Georgia.  I asked, “How did you come to this conclusion?”  “We read the paper and watch TV news,” they replied. Read More→