Atlanta Real Estate Investors Alliance Blog

The June 2016 Edition of The Profit Newsletter is now available for download. There are 54 pages this month full of upcoming meetings, workshops, educational articles and other valuable information for your real estate investing pleasure and success. Download it and check it out!

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If you take $1.00 and double it tax-free for 20 days it’s worth $1,048,576 (over a million dollars). Take that that same $1.00, taxed at 30%, it will be worth only about $40,640 — A LOSS of a MILLION DOLLARS! Why is this so? Because with tax-free compounding, earnings accumulate not only on the principal amount of money but also accumulate on the tax-free earnings as well. (“Earnings on Earnings”). Thus compounding combines earning power on principal and earning power on interest. Compounding has been called the ”8th wonder of the world”, a “miracle”. Compounding money at high rates of tax-free return is a definite advantage of real estate, especially with a great tax plan.

The wealthy know that taxes are a primary factor in determining whether you get rich or stay poor. Let’s say, for example, you’re able to save just $2,000 annually on your tax bill. (With a good tax plan it will be much higher). You invest the $2,000 annually in an IRA which earns a tax-free annual return of 10%. After 20 years, you’ll have over $114,000! If you can save $10,000 annually on your tax bill and invest it in a Simple IRA for 20 years, you’ll end up with almost $573,000! Read More→

Perhaps you’re a new real estate investor who has thought about using real estate comps to dive into real estate investing but have been hesitant due to a feeling that the market will collapse once you get in and you will lose all your money.  Well rest assured; you are not alone.

Fear touches every new investor; and no one successfully investing in real estate today would tell you otherwise. So let’s address some of the most common fears and see whether we can help calm you and urge you to take the plunge into real estate investing.

Having to feed a property won’t cut it; no investor wants to feed a rental property.  Believe it or not, this fear might be the easiest to manage because it’s straightforward: simply run the numbers before you buy, using real estate comps makes this a breeze. Obtain the property’s last twelve months income and operating expenses, calculate a mortgage payment, and plug the results into a spreadsheet or real estate investment software program to determine cash flow. If the cash flow is negative, weigh the deal and decide.  If the numbers work then, move forward.   Read More→

One of the most common questions I get asked is “how do you find master lease option deals?” In this article I will show you how I have found most of my master lease option (MLO) properties.

The short answer to this question is REALTORS!

I will acknowledge that in the single family investment market, most hot deals probably come from your own advertising or from wholesalers that find you the best deals. In the commercial world the game changes significantly. Most sellers of a commercial property, such as an apartment complex, are not going to go out to the road and put up a FSBO sign hoping a buyer rides by and sees the sign. Most of the best deals are not on Loopnet.com either. While advertising such as direct mail and other forms of marketing can work in the commercial world, I have found that the response rate is usually too low to be worth the effort. The response is significantly lower than when advertising for houses.  Read More→

Right now, in my office, I am receiving short sales from sellers who decided to do a loan modification which was only valid for 3-5 years.  In my opinion, this is the second wave of short sales that you will be coming across.  Many Investors stay away from short sales because they say it takes “too long” or they do not want to negotiate the short sale itself.  After speaking with them, I find out that they really don’t understand the short sale process.  So they miss out on BIG profits that are available by making offers on short sales that are listed and/or controlling the whole deal by finding the seller that needs to do a short sale, list it and have a title company process the short sale.  When you close and make your $thousands$, that would get you real excited about short sales!  The key to a successful short sale is making sure that the Short Sale Lender has the correct value on the property and this is where so many Investors and Realtors fail! 

Many title companies will agree to negotiate the short sale on the property for the cost of title work so all they need is the financial package from the Seller and a Purchase Agreement from YOU!  In fact, title companies are contacting the Seller directly, so you do not even have to obtain the information from the Seller when it is needed.  Why, then, are Investors not making offers???  I believe it is due to a lack of knowledge.  You have to know what to tell the title company’s negotiator to say to the short sale lender’s negotiator if you want to create a great discount.  My Home Study Course teaches you what to say and ask, in order to create your great discount.  Read More→