Author Archive
Are You Accountable?
Posted on September 16, 2015 byHave you been in real estate for 6 months, or have you really been in real estate for 1 month? Because if you’re really in real estate, you’ve made a deal by now, maybe several.
Here’s the truth: If you’re not making offers, if you’re not making deals, you’re not in real estate…yet.
Are you making the mistake of preparing and then doing nothing? Listen, if you’re prepared, then you have the education. You’ve paid a lot of money to take courses, you’ve read the books, and you’ve watched the videos. You understand that buying real estate is not rocket science. You understand that making an offer is not difficult. You have a power team: a contractor, an attorney, a survey company, and a real estate agent.
But you just don’t seem to be able to get one deal done.
What will it take for you to make a deal?
How can you overcome this fear and lethargy? Read More→
How Many Leads Do You Need?
Posted on August 1, 2015 byHow many times does your phone need to ring to make a deal? Well, the more rings you have, the more possibilities there are, right? But here is the catch: you don’t want just any calls. You want quality calls. It doesn’t matter how many calls you get if they aren’t ones that are going to lead to getting paid.
You may have heard real estate gurus telling you how to get that phone to ring. But I can show you how to get the phone to ring so that when you answer, you’ll have a potential good deal on the other end.
First, quality calls will decrease your overhead. I typically spend $1000 per closing on marketing. In the past, I bought the latest in high tech products which were supposed to send me 10 leads per day. The problem was that, while the leads were plentiful, the number that actually worked was less than I wanted.
You see, I want to make the time that I spend worth it. I want sellers who call me so ready to sell that I can barely finish saying, “Hi, this is Russ. How may I help you?” And I want them to say, ” I heard you were the best in the Atlanta area, you pay a fair price, you are respectful, and you do what you say you are going to do. I don’t care what you offer me, I will take it because I know you will be fair. I know you can close in 30 days. I trust you.”
How can YOU get these kinds of calls? I’m about to tell you. Read More→
More Deals, Less Time
Posted on July 2, 2015 byRecently I was coaching a student, and we came across what appeared to be an excellent opportunity. Because of my knowledge of the area, I was immediately able to give the student the right price to offer. I showed him how to negotiate the contract, which he did perfectly.
The result? With my knowledge, we were able to do only minimum work. While we found that the property wasn’t the deal we expected, we did so without wasting time. Since time equals money, it is essential to know your market so that you don’t work too hard for nothing.
We decided that this student, a new investor, was going to buy a house for $5,000 and wholesale it to an area landlord. Rents there were approximately $800/ month. Rehabbing would be close to $30,000. When we subtracted management, vacancies, taxes, insurance, and maintenance, the property would earn a 20% return. This was a great opportunity for anyone who wanted to become a landlord in that area—and a great opportunity to make a $7000 wholesale fee. Read More→
The Banks and You
Posted on May 29, 2015 byHere is some news that might surprise you…
banks and hedge funds can actually make your business stronger, especially if you own property.
I can say this with confidence because I’ve been in this business for a long time, and I want to share with you what I know about the relationship between you and the banks:
Banks: Right now, banks are holding the prices up artificially, meaning that values are rising. Banks are pushing the limits of pricing. They are getting data on the best-selling styles, features, and geographic areas. They know which houses sell and rent the fastest. Remember: banks are in the real-estate business; a business makes money. Do not expect them to treat you like a friend.
Hedge Funds: According to The Wall Street Journal, hedge funds are gathering analytics on the type of housing that is in demand. Their information is so specific that they know which houses’ rents can be increased. They also control the home owner and rental market, making it clear which way you should go when you put a house under contract. Read More→
Empower Yourself: Know Your Assets
Posted on April 30, 2015 byPeople often ask me, “Russ, how do you stay so motivated, confident, and upbeat?”
My answer? I know my assets, and I make sure that I have more assets than liabilities.
Do you know your assets?
Knowing your assets will allow you to assess whether or not you are heading in the right direction. It will show you if you are winning or losing. I like to know what my assets are because it builds my self-esteem and feeds my ego. There is nothing like a good ego boost!
Here are the 4 types of assets:
- Physical/ Money
- Community
- Education/ Skills
- People
Physical/ Money Assets
When we think of assets, we typically think of money! But there is much more than that. There are physical assets. Read More→
Think BIG
Posted on April 3, 2015 byHow can you get not only what you want but MORE than what you have ever wished for?
Nothing is Unreachable
Your success depends on your vision.
- Do you want to work independently, or do you want to work independently and be wealthy?
- Do you want to pay off your credit cards, or do you want to be completely debt free?
- Do you want to take a vacation, or do you want to travel the world?
When you expand your thinking, you can expand your success. Expect more and work knowing that you can have it. From the start, know how big you want your business to be and work as though it is already there.
Big business owners keep good analytical data on sales, acquisitions, expenses, and growth. With good analytical data, you can prove that you are a good business person, and people will want to loan/give you money. Read More→
Little to No Money? You Can Start a Real Estate Business Anyway
Posted on February 27, 2015 byDoes this sound like you?
I just don’t have enough money to…
go to a seminar and increase my real estate education.
I just don’t have enough money to…
put a house under contract.
I just don’t have enough money to…
fix up a house.
If this sounds like you, then we need to work on attitude! Thinking this way is self-defeating and will not lead to success. The reality is, you find a great deal, you can find the money. If the deal is a good deal, then the money will come with some creativity on your part. If the deal is average, no one will give you money unless you know how to market. The last choice is, of course, a bad deal, and no one will give money on these deals unless you are a super sales person and the stars line up properly, and even then, it will happen a only few times in your career.
With these things in mind, I am offering you some great places to get credit and cash so that YOU can find the money that you didn’t think you had. It IS out there. Understand that if your credit is poor to really bad, some of these techniques will not work. If you have assets, finding is much easier, but even with bad credit, you CAN find the financing. You’ll just have to work a bit harder. Read More→
Do YOU Have the Time?
Posted on January 30, 2015 byWe all have 24 hours in a day, right? No one has more or less. And some people are successful investors, right? Is that because they have more time than you do? Do they have 26 hours in a day?
This sounds silly, doesn’t it? Then why do so many people say that they just don’t have enough time to achieve success?
Are you one of these people? Do you say that you don’t have enough time?
Understand that time is a resource. Once it is gone, there is no getting it back. Time is not bigoted, racist, or only for the rich and beautiful. You can’t bank a few minutes. There is no going back. Everyone everywhere has the exact same amount and gets to spend it however they choose.
So how do you choose to spend your time? 8 hours sleeping… 3 hours eating…8 hours working…1 hour commuting. .. 1 hour with family… 1.5 hours getting ready to… that leaves just a short 1.5 hours to change your life. This must change if you are to succeed. Read More→
Your Latte or Your Life
Posted on January 1, 2015 byPeople who want to invest often tell me the same thing: they are not reaching their goals because they think they do not have enough money.
Does this sound like you? Did you notice that I used the word “think” above? This is because if you are one of those people who think you have no money, I am going to open the door that you do.
I want to tell you this: You have much more money than you think you have. You must focus on possibility rather than on lack.
Don’t get me wrong. I understand that when I have $100,000 sitting in the bank, I feel much more powerful and less stressed about my bills. When I get down to $10,000 in my savings account, I feel a little bit of nervous pressure too.
But I know that I have two choices about my reaction to this stress: I can give up, or I can use it as motivation. Personally, I use it to fuel my drive to make deals, tackle the marketing, build relationships, and make money. Read More→
Pretty Houses and Ugly Houses
Posted on November 28, 2014 byI was recently on a panel discussing the business models of pretty houses vs. ugly houses. The good news is that both businesses are extremely viable in today’s economy.
Because I have been a successful investor for so many years, I know that there is no wrong choice between the two strategies, but I also know that it is essential to have both techniques in your arsenal so that you can take advantage of all possibilities. The more options you have, the better your chances are of making the most money.
I would like to teach YOU about both business models so that you have yet another tool to help you to succeed. Here is just some of the knowledge I’d like to share with you.
The Ugly House
An Ugly House is a distressed property. When you drive past an ugly house, you will see needed repairs, tall grass, and broken windows. There may be prostitutes, drug dealers, and individuals who make it unappealing to live in the community. A majority of Ugly houses are typically in lower socioeconomic neighborhoods, but sometimes in moderate or middle class neighborhoods.
The Ugly House Market is large because after 15 years, a new house will have a higher chance of being ugly because of deterioration. The owners have let things go. They have not maintained the property. They may not have bought a new roof or an HVAC system; there are large ticket items that need to be addressed. Read More→
To Deal or Not To Deal?
Posted on October 31, 2014 byA seller recently called me and asked if I would buy his house. I, being of sound mind and body, said, “Tell me about your house.” It turns out that he is a foreign national and wanted to leave the country as soon as possible. He was very firm on the price and terms. He wanted to sell the house in as-is condition along with the furniture. He was open to me taking over their mortgage payments (subject to).
The terms that the seller wanted included their price ($190,000 with the principle balance at $140,000) which was above fair market value for the neighborhood but included all of the furniture. He wanted $30,000 down. The first mortgage payment was $1040 per month. Utilities were $220 per month. There was no Homeowner’s Association. The seller valued the furniture at $30,000 and the house at $160,000. The house was in excellent condition, no repairs necessary; in fact, it was overbuilt for the neighborhood with professional landscaping, a swimming pool/spa, decks, and a definite “wow factor.” I estimated that the house would rent for $1400 per month.
Of course, I had done my research and knew that he had overpriced the property. I believed that I could get him to take $10,000 down, allow me to take over the payments, and have the payments at $1200 a month for 120 months. This would pay him off owner second at 0%.
My exit strategy was to put a home-owner occupant into the property. Selling all of the furniture would allow me to recoup my down payment. Read More→
Knowledge = Success
Posted on October 1, 2014 byThe third-quarter results of the Atlanta real estate market are exciting and positive!
It IS possible to make money in this market, and I’ve been in this business for long enough to guide you through it.
On the market right now there is a
- 3.5 month to 5.3 supply of single family houses above $250,000
- 2.9 month to 5.1 supply of single family houses below $250,000
- There is high demand from cash buyers
- There is an increase in demand and value in the rental market
What do YOU need to know?
Marketing through your own resources for “off market” leads is the best tactic. Hedge funds have slowed their buying. They are recovering their assets right now because they moved too fast and have a lot of vacant inventory that is nonperforming.
Consider your time value. Working FMLS and hoping to get a 30% off price tag is not a good strategy because you will spend all of your time making offers just to get one deal. Realtors are doing a great job of pricing properties correctly to sell in 90 days; take advantage of this. Even the beat up properties are being priced right. Read More→
