The May 2014 Edition of The Profit Newsletter is available for download just in time for our Atlanta REIA Main Meeting on May 7th. The Profit is an digital, interactive newsletter for new and seasoned real estate investors delivered as an Adobe PDF file to read on your PC, Mac, Smart Phone, iPad or other mobile ready devices with a PDF reader. Many of the articles and ads in The Profit contain many hyperlinks you can click or tap to visit websites, watch videos, listen to audios, download content, send emails, comment on articles, share socially and much more! The high res version of The Profit is “print ready” for those who want to print the newsletter on their home or business printer. Also, be sure to Subscribe to The Profit Here so you don’t miss a single monthly issue.

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I’ve been known to say that “Coincidence is God’s way of staying anonymous,” and I feel like my life, and my career is proof of that! You may not know it, but I moonlight as a world famous composer. I started writing music at 17, and while I didn’t put out my first album until 1997, it’s always been a passion for me. Back in the day, my grand piano came all the way from Texas to North Carolina in the front of my 72 x 14 single wide—it never left my side.

Getting back to the world famous part, my big break came in a little known movie, an Alan Smithee Film, “Burn, Hollywood, Burn”. While the show itself wasn’t a favorite, my music was! Right after the movie came out, my family and I went on a vacation to California. I’ll never forget my wife pulling me out of the shower one morning in Palm Springs to listen to my song playing on the radio! Today, my compositions are played in stations across 22 countries, and in spite of the 8% rating on Rotten Tomatoes, I still get royalties from my Hollywood days.

Music taught me to follow my passions. I knew that work should be something I could be passionate about, and when I stepped into buying and selling homes, that was exactly what I was able to do—live and work passionately. I like to think that some of my best moments, or “quantum leaps,” come from my moments of greatest adversity. Maybe their power comes from the way they force the best out of you, and I look forward to the challenges – they always bring opportunities for something new!

At this point, we’re down to the area where we’re ready to fill out a contract. And we’ll come back to that in step five after we get through the follow up step which is the next one on our list. But before we do all of that let’s talk about the other steps involved in getting to the point where we’re ready to fill out a contract. I guess the first one is knocking on the door at the appointment time you’ve set. What I usually do when they answer the door is say, “Hi, I’m Ron. I’m here to take a look at the house.” They’ll greet you and invite you in and I’ll say, “Can I take a walk through the house?” and they say “Yes” and I say “Okay, no dogs or naked people?” and then they chuckle and say, “No”, and I do exactly that, take a walk through the house.

My walk through the house will take less than three minutes because I’m not going to pick it a part and point out any obvious issues that the seller is already aware are there. If the walls need painted, we all know that, I don’t have to point it out. If the house has an odor, no sense in mentioning it because there’s nothing the seller is going to do about it. Regardless of what the situation is, you do yourself no good by making the seller feel small because of the issues that are readily apparent with the house. The best thing you can do is walk around, take a look, shut up, and get to the next step.

The next step, in my case, is I always simply ask the seller, “Do you have any questions?” If they say yes, I’ll answer them as briefly as I can and go on to the next step. Be careful here, when you answer questions, your goal is to answer them briefly, not get in to a teaching seminar. The worst thing you can do for yourself is get diarrhea of the mouth. Your job is to get in the house, get the job done, and get out of the house. You’re not there to make friends. You’re not there to have a fireside chat. You’re there to answer questions, get an agreement, and leave. And believe me, the seller wants you out of the house probably worse than you want to get out of it. So when you ask questions, answer them briefly, shut up and move on to the next one until they’re out of them. Read More→

Is the market getting strong where you are? Are you sitting on the side lines waiting for a house to land on you? If you are waiting around, you are not getting wealthy! And I want you to be wealthy! I want you to get in the market through partnerships with an experienced person like myself.

The 1^st quarter of 2014 has been very exciting, and with summer approaching, we can anticipate the market getting even hotter than it is now! Areas are turning around, the phantom inventory is shrinking, and prices are rising.

But, you ask, is the housing market out of the woods? Yes and no. There are a few variables that would set us back into a recession causing the prices to drop again which would affect jobs and people’s ability to buy a house. A change in interest rates will affect the probability of people to get into a house and investors to buy with credit.

This all brings us to the essentials: How do you know a great deal versus an average deal? The answer is only a portion of what an experienced partner like myself can help you learn. Read More→

Direct Mail. Craigslist. Bandit Signs. Websites. Emails. Phone Calls… And everything else that it takes to generate leads – in real estate (or anything else).

These are all fantastic sources, and should definitely be used in your marketing efforts in some combination.

But wait a minute! Even if you’re using ALL these methods already, you may still be missing out on another, just as powerful marketing medium… This ‘missing medium’ will work for you, whether you’re looking for sellers or buyers of property, private lenders, wholesalers, rehabber buyers, or whatever else you can think of!

Of course, this ‘Mysterious Marketing Medium/Media‘ to which I’m referring is: VIDEO!

Let Me Ask You Something… Ever watch a video on YouTube? I’m guessing your answer is yes. These days, you can watch video from practically anywhere – your home, your car, your office, the bathroom…anywhere! When I say ‘you,’ guess who else that includes? Your PROSPECTS & CUSTOMERS! Read More→

Congratulations. You’ve got a new tablet computer! Whether it’s an iPad or Windows or Android – and I’m an iPad man, myself – buying a new tablet is a lot like having a baby: You’re going to want to buy some stuff to go with it. And boy, is there a lot of stuff to choose from! But it’s easy to get overwhelmed, both by the variety and by the potential cost. Where is your money best spent? Today I’ll talk about some basic extras you’re going to need.

You probably bought your new device at an electronics megastore, or perhaps online. You can get a lot of accessories from the same place. Many of them will be cheaper on eBay, but you’re going to want to play with your new tablet right away, and it needs some immediate protection. That’s reason enough to go ahead and buy a couple items right then and there, even if it means paying more.

First, you’ll want a screen protector, because you’ll be messing with that screen a lot, and it’s going to get scratched. Don’t choke at the price. It may well be military grade. Okay, so you’re not in the military, but what the heck, it couldn’t hurt. Be careful putting this thing on. It takes a steady hand and some patience to get the bubbles out. Read More→

This month I’m going to give you the other houses I believe you need to avoid if you plan to buy and sell real estate quickly and profitably. I feel very strongly that you need to know about each of these houses so you never find yourself trying to rent or sell properties that just won’t sell. All of the houses I mention have very difficult issues you can’t easily overcome. Why would you want to buy one of these houses when there are hundreds of houses that do not have these issues?

Houses Where Someone Was Murdered or Committed Suicide.

I won’t buy these houses because I fear if a new family moved into a house where someone was murdered or committed suicide without knowledge of what happened there and the children at school were to tell the new children now living in the house what actually happened could cause trauma for the children now living in the house and I don’t want to be responsible for doing that to the kids.

Houses That Are Just Plain UGLY.

Ugly will always be difficult to rent or sell and will be far more costly to correct the problem. When you find a house that is just plain ugly turn and walk away. There are thousands of houses for sale, so why would you want to waste your time trying to completely overhaul an ugly house when there are plenty of pretty houses available across the country? Read More→

Another way I use to fund my deals is by utilizing money from private lenders. Hard money lenders and private lenders are distinctly different in their approach to lending you money.

A private lender is a person who will fund your deals usually with no points and a much lower interest rate. There are usually no pre-payment penalties and they are usually more flexible with regard to the terms of the loan. For example, they may allow you to pay part or all of the interest payments at the end of the loan. So the cost of the money is a lot less in the long run. Working with private lenders offers me a lot more flexibility as a real estate investor, so if a private lender will allow me to pay all of the interest at the end of the loan for example, I may offer them a higher interest rate or maybe a point or two for allowing me to pay at the end. If I can pay all of the interest at the end of the loan, then the property cash flows at one hundred percent each month. This gives me the opportunity to fund multiple rehabs at the same time without having to worry about monthly payments. Then once I sell the property the private lender receives the principal amount they loaned me and all of the interest that has accrued.

There are several ways for you to find private lenders for your real estate investing business. One way is to simply check with people around you (relatives or friends) who may have funds available that are not drawing a very high interest rate in a CD, IRA or money market account. In today’s market that shouldn’t be too difficult. I have found several of my own private lenders this way. Read More→