Atlanta Real Estate Investors Alliance Blog
Tenants Are Your Real Capital Asset
Posted on November 1, 2012 byFor almost two decades, I’ve been teaching folks that it’s better to be wealthy than rich. And to be wealthy, you must own capital assets that provide you with mailbox money. Mailbox money is money you make while you sleep.
In my opinion, the best capital asset for the average American to own is rental property. After all, what other investment vehicle can be purchased for 40-cents-on-the-dollar, provide incredible tax breaks, be financed with a long-term note, generate monthly mailbox money, and as a bonus, be paid for by someone else (your tenants)?
Well folks, last week, after talking with David Tilney, I learned that there was a fundamental flaw in my thinking!
David Tilney has owned and managed rental property since 1978. He’s one of the best, most knowledgeable and creative landlords in the country. David has been one of my primary real estate investing teachers since 2004. Read More→
The Thinking Process’s of a Successful Investor and a Motivated Seller
Posted on November 1, 2012 byThinking Like A Successful Investor
An investor of real estate understands that general knowledge is not what it takes to create wealth. If general knowledge was what it took to create wealth, college professors would be the wealthiest people in this country and we all know that is not the case. Successful real estate investors know that it takes specific knowledge to create wealth. That is why real estate investors buy hard assets, (such as the seller’s house) at a price or with terms conducive to making a profit. If an investor can’t make a profit, they usually have no reason to buy a property unless they plan to live in the house. An investor who is a true capitalist knows they must always offer a seller something the seller likes and values more than what they are giving up or a deal will never happen.
Most sellers are looking for a large sum of cash, a monthly income stream, debt relief or any of a myriad of ways to receive that thing the seller likes more than what they are giving up.
Now that we have established this fact, as an investor it is your job to figure out what you can offer the seller that will be liked enough that the seller is willing to exchange their house for whatever you offered them. If both parties aren’t happy with the deal, it will never happen. Read More→
The Securitization Fraud
Posted on November 1, 2012 byA fraud has been perpetrated upon the American people all in the name of greed. Fraud is defined as deception in the execution of an agreement where some parties to the transaction are deceived as to the real nature of what is being agreed to. When some parties to an agreement are not clear, or some parties enter into the contract deceptively, then the agreement is null and void. A securitized loan is just such a fraudulent agreement.
A securitized loan is one where private investors, pension funds, insurance companies and others have purchased the cashflows from a group of mortgages that have been gathered into a trust in the form of a security assigned a particular risk value. Each mortgage-backed cashflow grouping is called a “tranche” and there are generally several tranches within a mortgage-backed trust. The cashflows are often sold multiple times to multiple investors. Securitization is a way that institutional lenders are able to leverage capital to support additional lending. When the economy is expanding securitization helps to grow the housing industry. When the economy is shrinking the flaw in the system reveals itself as investors begin to lose cashflow as a result of defaulted loans. Read More→
I’ve Got Rental Roaches – Yikes!
Posted on November 1, 2012 byA couple of weeks ago, I spent the day inspecting several of our rental properties. At one of the properties, I quickly realized that something was definitely amiss. The home’s interior was filthy and the yard hadn’t been mowed. Turned out the tenant’s wife had left him two months before. The poor fella didn’t know whether he was coming or going.
As we sat at the kitchen table discussing his problems, a big, honkin’ two-pound cockroach ran across the table. I FREAKED out! I HATE roaches!!! The man finished what he was saying with: “Oh, and I have roaches, too.”
This family had been in the home for three years without any problems. The wife was as neat as a pin. Now that she had left, everything had gone to pot. Dirty dishes were everywhere, the trashcans were overflowing, and when I opened the cabinets, I found more roaches. This is called a we’re-gonna-solve-this-right-now-today problem.
Because the tenant was no longer able to take care of the property by himself, he decided that it would be best for him to find a smaller, more affordable place. He moved the following weekend.
As soon as he moved out, we got busy scrubbing, cleaning and disinfecting. We also called Dale Yarborough, our long-time friend and bug man with Guardian, to get rid of the roaches.
Landlords, there’s something you need to know about roaches: It takes time and several applications to get rid of all of them. Oh sure, back in the good old days, when we could use DDT, you could kill all the roaches in one day…but then you also killed the dogs, cats, birds and small children at the same time. The point is, if we discover a roach problem, I know it will be several weeks before I can put the house back up for rent because no one wants to move into a roach-infested property.
There’s an important lesson to learn from this story: You should regularly inspect your rental properties – both inside and out. By doing regular inspections, you’re able to keep small problems from becoming big ones. For example, in this situation, what if it had been three more months before I discovered the roaches? How bad would the infestation have been then?
There are other advantages to doing regular property inspections: They help you to build good relationships with your tenants. Also, since the tenants know you do regular inspections, they take better care of the property. Finally, inspections will save a ton in repair costs.
How often do I inspect my rentals? With newer tenants, the property is inspected once or twice a month. Once I’m positive the tenants are good tenants, I only inspect the property every couple of months.
Hope this helps you to become a better, more effective landlord.
Bill & Kim Cook are a husband and wife real estate investing team. They live in Adairsville, Georgia and have been investing in real estate since 1995. They specialize in buying single-family homes, mobile homes and mobile home parks. They also run North Georgia REIA and teach folks how to successfully invest in real estate.
How To Creatively Fund Your Deals
Posted on October 31, 2012 byWhen it’s time to buy an investment property, most would-be real estate investors think that it’s as simple as going to a bank, filling out some paperwork and getting a mortgage. While that may have been true back in 2004 and 2005, that’s not how it’s done today. In fact, if you need purchase-money funds, good luck getting them from a bank!
So how and where do you get the money you need to fund a real estate investing deal? Easy answer – the money is all around you! Do you think anyone likes keeping their money in the bank, where they’re only earning around 1% interest? Think about it: Inflation is at 4%; this means that someone with money in the bank is actually going backward 3% each year!
The big question is: What would make someone want to loan you the money to do a deal? First, the lender needs to make a much better return than he can make at a bank. Second, his loan must be safe, and by safe, I mean that it’s secured by a whole bunch of collateral! Read More→
Chris Bowser
Posted on October 30, 2012 by
Over the past 10 years Chris Bowser has been making money online. He has bought and sold tens of thousands of products over the internet. Starting 10 years ago selling products on eBay as a hobby, Chris has teamed up with his brother Adam, together they have developed a hand’s off system for making money on the Internet. Just 10 years ago, Chris and Adam had no eBay or Internet experience whatsoever. They were introduced to the internet business and started buying and reselling products all over the world.
Before you knew it Chris was selling 30 to 40 products a week bringing in $2,500 per week working part time. From there by utilizing his internet expertise, he expanded to buying and selling products all across the country for resale on eBay. In just 3 ½ years he created a monthly positive cash flow that he had never dreamed possible. Over the last 10 years Chris and his company has sold millions of dollars of products over the internet. Read More→
Andrew Cordle
Posted on October 29, 2012 by
Andrew Cordle, the founder of Financial Momentum began in Real Estate just over ten years ago. His first rehab was the spark that ignited Andrew’s passion for flipping. The transaction took 90 days from start to finish, then he received a check for just under $32,000. Andrew was hooked. One house became two, two projects became three, three rehabs became four, and before he knew it, Andrew was buying, rehabbing and selling close to five beautiful homes each month. His average profit was around $55,000 per home, and his record profit was just over $272,000 on ONE house!! During this time, Andrew was offered a Nationwide Reality TV show in 2006. His multi-million dollar company had grown to over 30 full time employees. Read More→
Albert Lowry
Posted on October 29, 2012 by
Epitomizing the saga of “rags to riches”, Dr. Albert Lowry has risen to become America’s premiere authority on real estate investing. Starting with no money, a desire to succeed, and a great amount of common sense, he pursued his dream. Within a very short time, he mastered the real estate market and began creating concepts and techniques that are the backbone of the “Lowry Formula”.
Al spent his childhood in orphanages and foster homes. Working in a variety of jobs from sheet metal laborer to butcher, Dr. Lowry realized how much he wanted financial independence.
He obtained his real estate license and began to sell property. He soon came to realize that the properties could be purchased with no money down. He bought duplexes and triples and did the routine maintenance himself.
Dr. Lowry bought more property and expanded his method to include leveraging, rehabilitating and exchanging his investments. Read More→
Chris Johnson
Posted on October 29, 2012 by
Chris Johnson is known as America’s Top Educator teaching people how to find and obtain the Grant Funding they need to buy & fix up Real Estate, start or expand a Business or get a college or university Education! His knowledge and expertise regularly has him sharing the stage with well known financial and investment experts such as Sir Richard Branson, Donald Trump, Suze Orman, Tony Robbins and Robert Kiyosaki with thousands of people in attendance.
The U.S. Government is the largest “Money Vault” on the planet. When Chris is asked… What does he mean by this? He responds… “Well just that. There is literally Billions of Dollars in what I call FREE MONEY in the form of Government Grants, Loans and Subsidies available in three main categories; Real Estate, Business and Education. The reason I say “Money Vault” is that even if people know it is there, (which most people don’t), they really have no idea how to get it. In other words, they don’t have the “Magic Key” to unlock this vault.”
Chris teaches everyday American’s the key to unlock this “money vault” so people can receive the Grant funding they need to finance Real Estate deals, start or improve a Business or send their kids to the top colleges and universities around the country all paid for by the Government. Read More→
My Dinner with Robyn Thompson Could Be Worth Millions to You
Posted on October 24, 2012 by
I like to sit down to dinner with my close friends whenever I get a chance and when I was down in Tampa the weekend before last, I got to catch up with one of my close friends and mentors, Robyn Thompson.
For those of you who haven’t had the pleasure of meeting Robyn, she is an amazing woman!
In our real estate circles she is called “The Queen of Rehab”.
In the past 14 years she has bought, fixed and sold 320+ homes with price ranges as low as $8,000 to as high as $3,500,000. She has spent as much as $2,100,000 in labor and materials in one year to renovate properties with more than 22 contractors working full time to take the ugly homes she bought and turn them into little castles at lightning speed. She went from a waitress getting by day to day to a Multi-Millionaire in a very short time.
The bottom line, she is a great inspirational case study and someone you should definitely get to know.
So, during dinner she told me that she built a new audio program called “The Wealth Blueprint To A Millionaire Mindset” and offered it to her students for only $2! Read More→
Atlanta REIA Main Meeting on November 5th with David Tilney on Property Management
Posted on October 23, 2012 bywith David Tilney on Property Management
at the Crowne Plaza Ravinia on November 5th
Atlanta REIA Members Can Attend at No Charge.
Guests Can RSVP Online Now for $10 or Pay $20 at the Door.
We are excited to announce Property Management Expert, David Tilney, will be our guest speaker at Atlanta REIA on November 5th at the Crowne Plaza Ravinia Hotel located at 4355 Ashford Dunwoody Road in Atlanta, GA. David has been involved in the real estate business since 1978 and property management since 1981. He has invested in rentals, notes, foreclosures, tax sales, IRS liens and leasehold interests. David has become the “go to” guy for management of single family homes and loves being a landlord. He looks forward to hearing from his tenants, but often feels like the Maytag repairman who rarely gets a call.
As a landlord or a potential landlord, do you have questions on any of the following issues?
- Security deposits
- Property showings
- Rent collection and late fees
- Lease vs. month-to-month
- Property inspections
- Fair Housing
- Re-keying locks
- “Make-ready’s” and capital improvements
- Pets
- Applicant screening & background checks
- Rent increases
- Evictions
- Tenant property damage
If you answered “Yes” to any of these issues, be sure to attend the Atlanta REIA Meeting on November 5th and be part of the discussion! David will answer questions, brainstorm problems and force you to think about your rental business in new ways. He will share ideas about how to increase income, decrease expenses and generate more free time.
Here’s what a few local real estate experts have to say about David Tilney…
“If you are going to be successful in real estate investing, you need to have good landlording skills. David Tilney has the best landlording system around and is well worth learning, if you are a serious investor.” – Dyches Boddiford
David is a wonderful teacher… a real been-there-and-done-that landlording guy. He teaches like no one else. His ideas are unique. David will help you become a better, smarter, more successful landlord.” – Bill Cook
“What’s Happening at Atlanta REIA” is a mini-session hosted by Atlanta REIA Executive Director, Dustin Griffin, to update our members and guests on many of the exciting new things that are going on at Atlanta REIA in the upcoming weeks and months such as upcoming workshops, webcasts, special events, members benefits and more!
“There’s an App for That” is a fun new mini-session dedicated to updating you on some of the latest and greatest applications or “apps” for your iPad, iphone or Droid smartphones and tablets for both business and personal use. We want to help you become a high-tech, mobile real estate entrepreneur and this month, Don DeRosa is going to help you do just that!
“Have’s & Wants Speed Marketing” is 30 minute marketing session hosted by Joe Thompson that is held to help facilitate deals by giving our members the opportunity to quickly market things they HAVE and no longer want and to find things they WANT but don’t yet have. Be sure to get to the meeting early and get on the speed marketing list if you want to participate.
with Don DeRosa
Please join us for the “Mobile Real Estate Rockstars Group” (Rockstars) hosted by Don DeRosa at our “Meeting-Before-The-Meeting” on Monday, November 5th at 3:00 PM at Total Wine & More located at 124 Perimeter Center W (see map). The Mobile Real Estate Rockstar Group is an educational and networking group for investors who want to leverage mobile technology to become more competitive, profitable investors. You’ll learn how to use the latest apps, tips and techniques to use the information they need, right now, at their fingertips, from anywhere. At 5:00 PM, Total Wine & More will be offering a complimentary wine tasting to all those who attend our meeting and wish to participate. There is NO CHARGE to attend this meeting or the wine tasting for Atlanta REIA Members and guests. Thanks Total Wine & More!
After the conclusion of the Main Meeting, we will be reconvening at the Tilted Kilt Perimeter located at 1155-B Mount Vernon Highway in Atlanta for the “Meeting after the Meeting”. The Tilted Kilt will be offering half price appetizers as well as food and drink specials for our members and guests. Come eat, drink, network and have fun with us as hang out late into the night!
*Please Note: Meeting agenda is subject to change.
Each and every month, for the duration of our meeting, we have a Vendor Trade Show in which you can come out and meet many of our participating business members who help sponsor our meeting. Thanks again sponsors!
Networth Realty of Atlanta, LLC – A licensed, full-service residential wholesale brokerage that specializes in finding quality wholesale properties and making them available to you. Read More>>
Advanta IRA Administration – With the help of your local Advanta IRA staff, use your IRA to invest in assets you know, understand and control, such as real estate, notes & mortgages, private placements, and much more!
Angel Oak Funding – A direct hard money lender headquartered in Atlanta. We provide renovation/construction loans for investors and or builders to purchase and renovate residential properties. Read More
American IRA – The American IRA mission is to provide the highest level of customer service in the self-directed retirement industry.
Read More>>
Solutions Realty Network – Providing expert property management and investment services since 2003. You invest and we take care of the rest! We’re the solution to all your real estate needs. Read More>>
Halperin Lyman, LLC – A transactional real property law firm devoted to providing the full spectrum of non-litigation related real estate legal and consulting services to its clientele. Read More>>
Lima One Capital, LLC – A fully capitalized, direct lender for residential real estate investors and homebuilders. We are fully capitalized and our team prides itself on closing loans quickly for our clients. Read More>>
The Small Business Advisor – A full service small business consulting firm specializing in QuickBooks with a wide variety of specialized services, trainings and products for small businesses. Read More>>
Atlanta Carpet Services, Inc. – Providing carpet, wood, vinyl, and tile, ACS is dedicated to every aspect of your floor covering needs from initial consultation to the sale and follow-up services. Read More>>
Fuller Center for Housing of Greater Atlanta – A faith-driven, Christ-centered, non-profit organization dedicated to providing adequate shelter for people in need in the Greater Atlanta area. Read More>>
Craftbuilt, Inc.
Scott Bowen’s Specialized Services
C. Brown Property Management
Happy Homeowners Club, LLC
Pete’s Friendly Home Inspections
Also, special thanks to all of our volunteers that help make our meetings and networking events possible!
David Tilney
Posted on October 23, 2012 byDavid Tilney has been involved in the real estate business since 1978. He first “failed” into managing houses in 1981 while acting as a buyer’s broker. He has invested in rentals, notes, foreclosures, tax sales, IRS liens and leasehold interests. David has become the “go to” guy for management of single family homes and loves being a landlord. He looks forward to hearing from his tenants, but often feels like the Maytag repairman who rarely gets a call. David and Mary, his wife of 39 years, winter in Naples FL and summer in Colorado Springs. They manage their own portfolio of rental houses with no employees. David believes that real estate is not a get rich quick business, but a business that can sustain both you and your heirs if you work hard and take calculated risks. Read More→
