Happy and prosperous 2010 to all of you

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Persistence: Key Element to Your Success

"Sometimes your greatest asset is simply your ability to stay with it longer than anyone else."
~Brian Tracy

"The most essential factor is persistence - the determination never to allow your energy or enthusiasm to be dampened by the discouragement that must inevitably come." ~ James Whitcomb Riley

As I sit here this early morning of December 25, 2009 waiting for Santa to bring me my gifts, I decided to write to you about persistence. Many times real estate investors fail in this profession simply due to their lack of persistence, they quit to early. Real estate investing is a numbers game, it is about looking at enough properties to find the ones worth making offers on, it is about making enough offers to receive the yes we are looking for.

To be successful, you must maintain a positive attitude. It is easy to be discouraged after you send 10 offers and you receive 10 negative responses. This happens! During this time, it is easy to give up, you haven’t seen any results. However, remember that riches comes to those who persists. Do not give up or think that you won’t be successful at real estate investing. Remind yourself that deals are like buses, if you miss one, you can always catch the next one! I understand that when we are hit an unexpected roadblock in our path, we may be tempted to lower our expectations. Even though this is a natural human reaction, a winner does not back down from his or her high expectations simply because the going gets tough.

Accepting setbacks graciously is not an easy thing to do. If we stopped at the first road block, we wouldn't be where we are today, we would not grow. Real estate investing is about persisting on, and keeping at it, getting better every time. So remember, the next time a seller rejects your offer, smile, get back up there, and do it again.

I am not giving up, I am waiting here for Santa to bring me my gifts! Merry Christmas to you and a prosperous New Year.

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New Home Sales Fall To Lowest Level Since March 2009

It was just released that the sales of newly built U.S. single-family homes unexpectedly fell to their lowest level in seven months in November. This represents a blow to the housing market's recovery. Based on the report just released this morning, the Commerce Department said sales dropped 11.3 percent, the biggest decline since January, to a 355,000 unit annual rate, from a downwardly revised 400,000 units in October. Many analysts expected to see an increase on this report to 440,000 annual pace.

However, there are some positive news within the report just released:

1. The median sale price for a new home rose 3.8 percent from October to $217,400, the highest level since May.

2. The number of new homes on the market last month still fell to 235,000 units, the lowest since April 1971.

3. November's sales pace left the supply of homes available for sale at 7.9 months' worth, from 7.2 months in October.

Other positive news released today; Personal incomes rose in November at the fastest pace in six months, while spending posted a second straight increase. Consumer sentiment has improved and there are signs that we might see job growth in the first quarter of 2010.

Conclusion, read between the lines. Eventhough the headlines mention the number of homes sold have dropped the median price increased. Also, the inventory levels have reduced which in turn will help with property valuation as we move towards 2010. These are good news for real estate investors. It is imperative that you maintain the real estate investing principles in place and make sound decisions in your real estate acquisitions. As mentioned in my previous postings, 2010 will be a year of transition and we will see signs of improvements in the real estate market. However, do not expect miracles and unfounded valuations of your real estate portfolio. I still recommend that you invest with a long-term vision during 2010.

Real Estate Investor Tax Extender Act

Last week the House approved what's known as the Tax Extender Act, a "before the end of the year" bill filled with nearly 50 tax program extensions beyond their December 31st scheduled expiration date. Two of the extenders are especially significant for investment real estate: First is the so-called "leasehold improvements" provision, which allows owners of commercial, retail, hotel and office buildings (large and small) to use an accelerated 15-year depreciation schedule in writing off renovations and upgrades they make to their real estate.

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Buy anything: 2010 should be a can't-lose year for investors

I came across an interesting article that I want to share with you. It is a forecast about 2010 and the expectation that all four widely held asset classes -- stocks, bonds, precious metals and real estate -- are expected to continue rising in unison.

I look forward to your comments.

Click Here

Florida Real Estate Market Outlook

As we approach the end of 2009, I started thinking about the real estate market and its future. This year was not an easy year for real estate investing. Many had high expectations of seeing big recovery on the market. My conclusion of 2009 is that it was an OK year. We saw in many markets signs of stability in valuation. I think that stability is the beginning for recovery.

Florida was one of the most affected real estate markets in the United States due to the overvaluations thanks to speculations and poorly sound real estate investment strategies. Following the past 2 years of decline, I do not expect a full recovery during 2010. However, we will see more stability in the real estate market of Florida, which in turn will prepare the ground for the followers to start gaining more confidence. I think that real estate investors with sound strategies, avoiding excessive lending, speculative buying and instability will be in a position to profit from the upturn. A word of caution, investment strategies concentrated on speculative buying and poor reserves should be avoided. Long term investments are expected to be the strongest growth areas in Florida. Long-term strategies will result in fewer risks involved and excellent gain potential due to the exceptionally low priced investment options available in both emerging and established markets.

What are the drivers?

1. Low Interest Rates. Interest rates continues at record lows and are expected to continue at those levels at least until mid-2010.

2. Great prices. This slow market provides a situation to find some optimum bargain opportunities.

3. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010, economists forecast that Florida will be the third-most-populated state in the country. Florida has been one of the 10-fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to Census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.

4. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida's population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida's Bureau of Economic and Business Research. That's a lot of new buyers coming into the market.

5. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State's mild climate and outdoor amenities continue to make Florida a favorite retirement destination. Florida is also a destination for Canadians wanting to have a retirement or second home with warm weather, great prices, variety of activities, etc.

6. A diverse economy. Florida's economy, like the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force in South and Central Florida. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its "Best Performing Cities Index 2008," which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida's business climate ranked fourth among executives and sixth overall on Site Selection magazine's 2008 Top State Business Climate rankings.

Where are the risks?

1. Increase in Interest Rates. To help with the turnaround interest rates must continue at low levels long enough to allow to gain momentum.

2. Access to financing. While the ability to finance properties has enabled an optimum moment to enter the real estate market, restrictions on lending criteria has become widespread, leaving many potential buyers unable to qualify for mortgage financing.

3. International economy. Another interesting fact is that despite the weak US dollar, overseas buyers aren’t rushing to buy properties in the US as expected. Eventhough the purchases are happening they are not overflowing the market. Foreign investors are being careful and choosy. We can only speculate that perhaps even though Asians, Middle Eastern and Europe buyers generally have more buying power, (due to favorable exchange rates), they too have to tighten their belts due to their own local market condition.

4. Insurace costs. Some say the added cost of insurance and tax is keeping investors at bay. After all, Florida has always been known for the odd Hurricane, therefore it is understandable if some people are cautious.

5. Financing programs geared to foreigners. Due to its international appeal, Florida lenders must have programs geared towards this market. Few loans are being made to foreign nationals and come with terms deemed unacceptable by most. However, more than half of these foreign buyers are paying everything in cash, with European and Canadian buyers most likely to reject the financing option. Europeans are big buyers in South Florida, with Swiss, Spanish, Italians and English all seeing it as a good time to buy. They account for 26 percent of foreign buyers. But it is the Latin Americans who are the largest contingent, making up 52 percent of foreign buyers.


Which Strategy to Use?

2010 will continue to be an optimum buyer’s market, where those in a position to purchase will continue to receive and negotiate optimum deals. Long-term buyers will be in a position to once again benefit from a future turnaround into ‘seller’s market’ conditions. Investments based on long term return scenarios will be the most viable for 2010 in both emerging and established markets. As the real estate market in very few regions are expected to show any significant growth patterns during 2010, short term investment options are unlikely to prove successful. As the real estate sector emerges from its present turmoil over the coming years, long term investments will provide the most significant growth potential. Long term investments also provide the least risk, an important consideration in the current market situation.

Ideal Investment Locations?

Florida has always been a popular playground for city escapees who want to enjoy the sun, surf and of course the popular Mojito cocktail, while they watch the sun set over the ocean. Living in Florida is about the lifestyle and having fun.

One of the areas that seems of interest is Southeast Florida. The Southeast Florida real estate market is significantly impacted by international buyers and second home seekers. Cities like Aventura, Sunny Isles Beach, Bal Harbour and Miami Beach are banking on foreign nationals from South America, Europe and Asia to further increase real estate sales. In November 2009 alone, pending sales of condominiums in Miami-Dade County were registered at 4,414 units. Single-family pending homes sales accounted for 3,874 units. For Broward County the numbers were 3,394 pending single-family home sales and 3,871 pending condominium sales. To add to these figures, the ultra-luxurious Jade Beach Condo Tower in Sunny Isles Beach announced last month that it nearly sold out all of its condominium units during the most challenging economic times in recent history.

Brosda & Bentley Realtors, one of the leading full-service real estate companies in Miami predicts that home prices especially in newer buildings in North Miami Beach are close to stabilizing and sales, particularly of trophy condominium properties are on the rise. An extensive advertising campaign in Europe and South America at the beginning of autumn now brings prospects to the Miami offices of the company that specializes in luxurious properties.

What sort of units to invest and Why?

I would recommend to purchase a Single Family Home with a pool or in a community with a pool.

In conclusion, I believe that within 5 years, the market will be just as strong as it was 2 years ago but we will all work with more caution and advise our buyers to be more cautious. With more caution, we can make sure that it doesn’t cause another over priced market and meltdown leading into foreclosures and losses to investors.

Realtors apprehension to work with Wholesalers

You may have seen this happening sometimes in your dealings in real estate. Sometimes a Realtor does not want to work with you because you are real estate investor. I know that has happened to me. I ask myself why?

The foundation of commerce is in trading, Realtors and real estate investors are traders. Some of us trade real estate, others trade their skills to help the transactions get to fruition. In real estate investing, all of us wants to get paid, real estate agents included. So why the resistance from both groups to work together.

Are we, real estate investors, that difficult to work with? Are real estate agents an obstacle for us? What can be done to resolve our differences? I will share with you the following, In my twenty years in real estate investing I have had great relationships with Realtors. They have been an instrumental part of the marketing or exit strategy in my real estate investing.

I suggest to my fellow real estate investors to open their opportunities and work with Realtors and for these professionals be included in your professional team. I have mentioned before, I will mention again every successful real estate investor should have a real estate agent as part of his/her professional team. They can be instrumental in your exit strategy, Realtors will bring people to your properties (as long as you’re going to co-op with them). Working with them will increase the chances that your properties will be marketed to the largest audience possible.

Realtors, I suggest that you change your negative opinion of us. Are we difficult to work with? Maybe. Do we sometimes push the envelop to the very edge of the cliff? Yes. We are business people. In addition to wanting to bring great products to the end users we look for profits, tax deductions, cash flow, IRR, ROI, NPV, Cap Rates, etc. We can be a great client for you, since we deal in volume and/or are frequently in the market buying or selling part or all of our real estate portfolio.

There is great opportunities available in the real estate market right now worldwide. Lets work together , lets create profitable partnerships that can be beneficial for all of the parties involved.

First-Time Homebuyer Credit Has Been Extended

The Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

- Extends deadlines for purchasing and closing on a home.
- Authorizes the credit for long-time homeowners buying a replacement principal residence.
- Raises the income limitations for homeowners claiming the credit.

Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

This new law adds a new element for “long-time homeowners” who buy a replacement principal residence. These taxpayers may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). Also, people with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009.

Several new restrictions apply to homes purchased after Nov. 6, 2009:

- Purchasers must attach a properly executed settlement statement to their return.
- No credit is available if the purchase price of the home exceeds $800,000.
- The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
- A dependent is not eligible for the credit.
- The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayer’s return. Known as math error authority, this authority applies, retroactively, to credits claimed on original and amended 2008 returns, as well as to claims yet to be filed.

For more information, please go to IRS website and The American Recovery and Reinvestment Act of 2009: Information Center

How To Improve Your Credit Score One Day At A Time

There are many misconceptions about credit scores out there. There are customers who believe that they don’t have a credit score and many customers who think that their credit scores just don’t really matter. These sorts of misconceptions can hurt your chances at some jobs, at good interest rates, and even your chances of getting some apartments or investing in real estate.

Every time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of apartment living, your credit score is checked. In fact, your credit score can be checked by anyone with a legitimate business need to do so. Your credit score is based on your past financial responsibilities and past payments and credit, and it provides potential lenders with a quick snapshot of your current financial state and past repayment habits.

In other words, your credit score lets lenders know quickly how much of a credit risk you are. Based on this credit score, lenders decide whether to trust you financially - and give you better rates when you apply for a loan. Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time. Employers can use your credit score to decide whether you can be trusted in a high-responsibility job that requires you to handle money.

The problem with credit scores is that there is quite a bit of misinformation circulated about, especially through some less than scrupulous companies who claim they can help you with your credit report and credit score - for a cost, of course. From advertisements and suspect claims, customers sometimes come away with the idea that in order to boost their credit score, they have to pay money to a company or leave credit repair in the hands of so-called “experts.” Nothing could be further from the truth. It is perfectly possible to pay down debts and boost your credit on your own, with no expensive help whatsoever.

Reserve a copy of this newly released book "How To Improve Your Credit Score One Day At A Time" that will show you how to:

* Define a credit score, a credit report, and other key financial terms
* Develop a personalized credit repair plan that addresses your unique financial situation
* Find the resources and people who can help you repair your credit score
* Repair your credit effectively using the very techniques used by credit repair experts

Plus, unlike many other books on the subject, this book will show you how to deal with your everyday life while repairing your credit. Your credit repair does not happen in a vacuum.

For only an investment of $5.99, this book will teach you the powerful strategies you need to build the financial habits that will help you to a keep a high credit risk rating. It really is that simple.

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The Benefits of a Real Estate Mentor

I would like to take a moment to share with you the benefits of a real estate mentor. A mentor is defined as “a wise and trusted counselor or teacher, an influential senior sponsor or supporter”. In other words someone with more experience than you in the subject matter. The benefits of a mentor are extremely important specially before you start the business because it would help you to gain more profits.

Here are three reasons why should associate with a mentor today:

1.Self Teaching Is Slow and Painful– If you do not know much about real estate investing, you are most likely not going to teach yourself very well. You need to become an active student and learn a lot of things about real estate investing in a short period of time. Your mentor can accelerate your learning while they can help you get your first new deals and start making some money.

2.Slow Learning Equals Slow Earning– If you are new to real estate investing, you have a lot of things to learn in a fairly short period of time. If you are stuck in learning mode, it will often keep you a few steps away from earning your first checks. Your mentor can make sure you earn while you learn. This concept is very critical to your short term cash flow. If you are a beginner in real estate investing, working with a mentor can make you understand the strategies you want to follow in a real estate business. It will offer you the insight of things you want to do with real estate investing. You can get the basic idea on approach you must follow while pursuing a career in creative real estate investing.

3.Learn To Identify Pitfalls - You are going to make mistakes when starting up your business. You will not be able to identify these mistakes early in the process because you ( like everyone else) wants to believe your ideas and plans are good. You can not identify and correct your mistakes very well. Your mentor can help you identify these mistakes before they significantly slow your business development and bank account growth. The advice from a real estate mentor will help you in learning the techniques for how to look at the properties, making sure that you are spending the right amount of time and money. It is important for you to know and be able to prioritize your business and its dealings. They will help you get the right approach and thought process. They will also help you in formulating the right business plan and will make you to attain profits in future.

Getting the help from a real estate mentor before starting the real estate business can do wonders for you. The major contribution of any real estate mentor will offer you is the expertise to figure out the things you require to understand, the skills you must acquire and the ways to implement these skills in your business. Developing the self-trust and self-confidence can do great for your business achievements. The things you need to do for succeeding in the business can be done only with the help of these factors.

If you do not have a mentor at this time,I strongly urge you go out and get one today!

Fraud Alert: AZ Attorney General Files suits against RE Pros

The fraudulent schemes continues to taint our real estate market. In July the Arizona Attorney general filed suits against 11 real estate professionals, including the real estate broker of a prominent Re/Max franchise in AZ. Attorney General Goddard described this incident as “among the worst abuses of vulnerable consumers that I’ve seen in my time as attorney general”.

The real estate professionals named in the suit are:
1. AZI Rent2Own, LLC
2. RTOSearch.com
3. Tucson Mortgage, LLC
4. VinLan Ventures, LLC dba Re/Max All Executives
5. WGA Enterprises, LLC
6. William Anastapolous, owner of Tucson Mortgage, LLC
7. Amaury Leon, loan officer of Tucson Mortgage, LLC
8. Thomas Piazza, loan officer of Tucson Mortgage, LLC
9. Andrew Silverstein, former agent of Re/Max All Executives
10. Vince Volpe, broker of Re/Max All Executives
11. Anthony Zandonatti, owner of AZI Rent2Own, LLC and RTOSearch.com

According to the AZ Attorney General the scheme started with attracting investors to buy homes that would then be managed by some of the defendants through a rent-to-own program created by their companies. According to Goddard, the investors were lured by promises of easy, worry-free investment returns; most became involved because little or no down payments were required; their involvement in the transaction or subsequent management was minimal; and they were told they would receive investment income from eventual renters.

Goddard also claims many of the investors were not qualified to obtain the loans, but through the actions of several defendants they were able to secure the money to purchase the homes anyway. In most cases, he said, the investors’ loan applications were falsified without their knowledge.In addition to this, novice real estate investors were lured to these easy opportunities to buy rental properties, then the group mentioned above would default on the loans causing the properties to be foreclosed and resulting in substantial harm to the borrowers.

When Pessimism Prevails, It's Time to Get Rich

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”

Colin L. Powell


You read the news, watch the TV, and talk to your neighbors and you will find that there are still too many people being pessimist about the economy and the housing market. They cannot be blamed, many investors lost their shirt in the worst decline in real estate value in the last twenty years. Unfortunately many families have suffered the lose of their homes and many American have lost hope. Consumers are nervous and people aren’t sure what to do.

In troubled times like the one we are living, many banks have closed the flow of financing into the economy and people are more than likely sticking cash under the mattress instead of making purchases. I’m here to tell you that that’s the wrong strategy. To explain the reason why, I’m going to remind you of the first rule of successful investment strategies – Buy Low and Sell High. During my early years in real estate, those wiser than me would tell me that the profits in real estate investing are made in the buying and not in the selling.

It is that simple. When certain markets start to dive, the smart investor begins to purchase. This is true in the stock market as well as the real estate market, ask Warren Buffet. The smart real estate investor, is now studying great opportunities, he/she does not just make purchases without doing analysis and research. The key to successful real estate investing is in the good decision making. The smart real estate investor is not buying under pressure, since he/she knows her market and knows what is the right price to pay for the property.

Remember the wise words of Robert Kiyosaki, in his article When Pessimism Prevails, It's Time to Get Rich states it best: “Opportunities this big don't come along often, so this is your time to get rich.” This is done best by doing research, learning some, doing some more research and learning some more. Then and only then, will you be able to make sound decisions based upon sound research. Happy hunting!

Home construction up for 5th month in a row

There are recent news that continue to show improvements in the current housing market. Based on the reports issued by the government last week, the economy got a boost as more home buyers are walking into model houses and signing contracts. Furthermore, builders are hiring workers to address the expected demand for new homes. This is in turn helping with the employment situation in the United States. US builders in July broke ground on homes at the fastest pace when compared to the last eight months. This is a sign the housing market is healing as the economic contraction eases. Housing starts rose 2.7 percent to an annual rate of 598,000, the third straight increase, according to the median forecast of 69 economists in a Bloomberg News survey.

Construction of single-family homes increased in July 2009 for the fifth month in a row, as reported by government agencies. Building permits climbed nearly 6 percent. This increase in the construction of new homes, is expected to assist in the improvement in the economy in the last two quarters of this year and potentially create the needed boost in the housing market in 2010. There are a couple of factors that we must take a look at in the next two quarters of 2009. One of them is the unemployment rate, which is now 9.4 percent. Based on economists reports it is expected that this rate will surpass 10 percent. The concern here is that as the unemployment rate continues to hover the 10 percent rate, more homeowners will be unable to pay their mortgages. Another aspect to watch for is interest rates which are still near historic lows but could rise, making homes less affordable. Lastly, foreclosures which are still at record highs and maintaining the housing inventory levels high.

The current foreclosure rate and the increase in the new construction, could put some pressure in the recovery of the housing market by overflowing the market with inventory and keeping prices low as the supply continues to grow. We need to have a massive plan for the acquisition of the foreclosed homes, rehabbed them and place them back to the market at affordable prices coupled with the first time home buyer credit and low interest rates, incentivize home buyers in absorbing the existing inventory, which will allow the new construction to be absorbed by the home buyers that are prepared to upgrade in their housing needs.

We are seeing positive signs in the housing market in the first 7 months of 2009. We need to make sure that the government continues to monitor the foreclosure, interest, and unemployment rates. These aspects of the economy have a direct impact on the housing market current prices and future valuation.Considering that we are working ourselves out of the worst recession, since the great depression we must continue focusing on the positive signs that are being reflect in our recovery period. We must be realistic in our expectations of the recovery and set realistic goals in the process. The recovery wont happen overnight. However, if history has taught us something is that after every bust, there is a recovery and we are seeing the light at the end of the tunnel.

Resources Available to Determine the Future Value of a Property

As you know there are many web sites that will share with you the current value of properties. However, I found a site that will share with you the future value of a property. I think this is valuable information for home buyers and investors. This website was created by a Pleasanton-based company, which launched www.smartzip.com, a free Web site designed to help investors and everyday home buyers assess the future value of homes for sale in California and Florida, two areas of the country hit hardest by the foreclosure crisis.

SmartZip rates the future values of homes based on a scale of one to 100. The higher the number, the better the rating in terms of a property's future investment potential based on two factors: growth as measured by what the property is expected to be worth in 10 years and rental income potential.

In addition to rating foreclosed properties, short sales and regular for-sale homes, the site also provides ratings for homes not listed on the market. In all, SmartZip currently has ratings for more than 12 million single-family houses, condominiums and townhouses in California and Florida, with plans to eventually expand ratings nationwide.

The challenge for the home buyers and investor community is that we buy with a vision into the future. Homesellers concern is the current value of the property, that is why sites like Zillow may be useful to them. Zillow and similar sites provide what a property will cost if it is bought or sold today. SmartZip tells you what the property expected value will be in the future.

The system used for SmartZip, is similar to that used in the financial industry to project stock’s future financial performance to determine if it is currently under or over valued.

In addition to SmartZip, there are two other web sites that has been launched recently. One is the San Francisco-based www.finestexpert.com launched a score-based, free online service that helps people evaluate the investment value of more than 4 million for-sale home listings nationwide.

Second is the Denver-based www.investorloft.com also provides free information on for-sale residential properties in California and 17 other states. InvestorLoft users can look for investment properties by putting in criteria to gauge a property's rental income potential, among other criteria.

Like any service that makes projections, there is no guarantee that a rating estimate of property's future value is a sure thing. Eventhough this tool cannot predict the future value of a property with certainty and won’t be able to predict a future downturn in the real estate market, I think that a smart real estate investor can use these tools in combination with other resources to make a sound investment decision.

Why is Habitat for Humanity building new homes right now?

I am not here to criticize the mission of Habit for Humanity. I believe that they have a noble mission. However, why build houses right now, when families are losing their homes. I found out that in some places Habitat is even bulldozing unsold, unoccupied houses. Why not develop a program to place people back into houses that already exist. This will serve at least two purposes, place families back into homes and reduce the inventory of unsold homes.This seems to me like a noble mission, what do you think?

I am not certain about their current strategy. If someone out there does, please share your thoughts. Based on the information I received, they are building a new subdivision in Florida. The profits generated from the sales of these homes, will be utilized to fund their nonprofit mission of providing housing to low income families. However, why do it by building new homes? Why not use the existing housing inventory? If there is a need to beautify the area, then let’s do a cleanup process, paint the homes, perform the needed repairs and place those houses back into the market at an affordable price.

Use Offline Marketing To Increase Leads

“Don’t try to find the cheapest source of leads. Cost average the leads across multiple channels and don’t depend on any one thing.”

Building your list is one of the most important tasks in our business. Many times in the process of saving money, we may be spending more. With the internet we have access to leads that are near free. I believe that we must maximize the advantages of the internet in our businesses. However, I encourage you not to depend on the “Free” options of the online marketing strategies and incorporate offline advertising to get maximum exposure. Attack from both angles!

The biggest downside to offline marketing is the cost of materials and the cost of labor. However, this should not inhibit you from implementing the offline marketing into your overall marketing plan. There are cost effective ways to do offline marketing. I suggest that you do not implement your offline marketing alone and recruit some help to be effective with your time.

Offline marketing includes the following activities:
• Signs
• Flyers
• Newspaper ads (in some markets, advertising in the print edition allows you to advertise in the online edition without additional charges)
• Business cards

Here are some quick tips:
• Pay $1.50 to have a sign planted and $1 to have it removed. Put them up on Friday and take them down on Sunday to avoid dealing with the sign police
• For flyers, print on both sides (one with your buying message and one with your selling message). Use bright colors: right now is not the time to be subtle. Get noticed! Expect to pay around 5 to 7 cents for each flyer to be distributed.
• For newspaper ads, bold your headline even though it costs little extra. Once again be effective with your ads and get noticed.
• For business cards, print multiple versions, one with your buying message and one with your selling message

Remember that the objective is to get your properties in front of as many potential buyers as possible. You have to be noticed so people now that you have properties for sale. Combine offline and online advertising, this way you are everywhere and buyers will see your message. Remember, you’re in the business of marketing your real estate business.Attack from all angles.Finally, use your time effectively and outsource this work. You do not make the money hammering signs at the street corner. Start thinking like business executive!

New Services for Our Clients

Our affiliate network continues to grow. In addition to our traditional real estate wholesaling services we are now offering the following services:

-> Bulk REOs
-> Bulk NPNs
-> Pre-foreclosure SFR
-> Multi-Family Projects
-> Commercial
-> Distressed Commercial transactions in need of capital infusion
-> Builder Close-Outs
-> Builder Buy Outs

Our real estate consulting services helps individuals, developers, businesses and lenders make better real estate decisions. Our combined experiences of business, tax, and financing we have developed a thorough understanding of asset valuation, financing, and the the ever changing real estate market.

Our company goal is to meet the needs of our clients in a manner the provides confidence and enhances their experience in the real estate acquisition/sale of their real estate portfolio.

Our strength is in the numbers, our combined experience of over 20 years in dealing with real estate transactions as well as our network of professionals throughout the real estate management, finance, and leasing arenas.

Our services include:

- Develop and execute streamlined management plans and disposition strategies for investors and builders in underperforming and distressed real estate assets.

- Assist our clients in the acquisition and disposal of real estate portfolio.

- Develop real estate strategies.

- Market and feasibility studies.

- Preparation of business plans for real estate investors.

- Wholesale of high value investment properties.

- Creative real estate investing.

- Evaluation of real estate taxation effect on disposal of transactions.

- Structuring of financing for the acquisition of real estate portfolio.

- Preparation of financial projections.

- Preparation of tax returns.

As our nationwide network continues to grow we will make those services available to our clients. If we can be of service to you or your clients, please contact me.

Benefits of Real Estate Investing

Real estate provides many advantages to investors. I think that all investors must make it part of their learning process to understand the advantages and do what is possible to maximize its use. What are some of the benefits of Real Estate ownership? Here I would like to share with you some of the benefits you will find from real estate investing:

1. Cash Flow - In its simplest definition, cash flow is can be defined as the difference between rental income and expenses. Well... there are plenty. Depending on the situation, cash flow can be positive or negative. Based on your goals, you may find that a property even with a negative cash flow may be a good investment. What is important is that you review the potential investment and determine it it fits your goals. If what you are looking for is current income, then positive cash flow properties is what you are looking for.

2. Appreciation – Appreciation is the increase in value of a property. Now you may be thinking that this is a non factor in the current real estate market. However, there are markets right now positioned for respectable value appreciation. As a smart real estate investor you must be looking for this markets right now, so you can position yourself to gain from appreciation.

What are the main factors that affect the valuation of a property?

• Economic Conditions – An example of economic factors has to do with inflation. Since we do not have control over inflation, it would not be very smart of you to buy a property where your only investment strategy is inflation.
• Forced Appreciation – This one you have control over. For example, when you improve the condition of the property you are affecting the future value of the property. A way that you can benefit from this is when you buy a property on “As Is” conditions and you bring the property to the neighborhood standards or slightly higher and then you end up with a more valuable property.

3. Leverage – Leverage is the ablility to borrow a percentage of the value of a property. One of the main advantanges of real estate investing compared to other forms of investments is the fact that it offers the ability to leverage the acquisition of your investment. This allows the investor to purchase real estate with only a portion of the acquisition price of the property. As a smart real estate investor you must learn to manage the amount of debt you take against the investment to ensure that you are not over-leveraged. Keep in mind that borrowed money is always debt.

4. Tax advantages – This is a subject that is unknown to many real estate investors and that has a tremendous impact on your level of success. See the amount of profit truly made on a transaction should be measured on a after tax effect. In addition to that there are many tax advantages to real estate investors that you need to be aware and take advantage of.

There are many reasons to take into considerations when making an investment. As a real estate investor should not make your sole investment decision on only one of the advantages mentioned above. You should take into consideration all of the items mentioned above and many other individual factors that may be

Getting Started as a Real Estate Investor

Real Estate has created more millionaires than any other type of investments. According to Andrew Carnegie over 90% of all millionaires become so through owning real estate. That is a powerful statement. Even if you are skeptical about the future of real estate market we cannot overlook to such statement and not ackowledge it as part of a major footprint of success.

One of the advantages of real estate investing is that it provides mutltiple ways to make money. If your credit score is high, if you have high amount of investment capital or if your credit score is low, if you do not capital to invest in real estate there is a strategy available to get you started in real estate investing. Nobody can deny that if you have deep pockets , you will find real estate investing easier than otherwise. It is fact. However, real estate investing allows those with little or no capital and bad credit to develop real estate investing strategies using creative methods to get started, even on this market.

Here are a couple of subjects that you must consider and gain an understanding about:

1. Creative Real Estate Investing -> Subject To, Contract for Deed, Lease Option, and other creative strategies.
2. Private Money Lenders -> how to find and persuade private money lenders to fund your deals.
3. Motivated Sellers -> how to locate true motivated sellers who must dispose of their current property.
4. Qualified Buyers -> how to build your list of qualified buyers that are prepared to acquire properties you are prepared to sell.
5. Tenants/Buyers -> how and where to find people to rent your investment properties.
6. Protect your Assets -> corporations, LLCs, and other legal entities to protect your financial assets.
7. Tax Planning -> develop strategies that ensure that you do not overpay on taxes and others enjoy the results of your hard work.

Now I do not know where you are in your investment career. May be you are just starting out. Maybe you are a seasoned real estate investor. My goal is to share with you over the next couple of weeks, ways on how to make money in real estate investing regardless of the level of knowledge you have.

One of the main reasons real estate investors fail at it is their lack of a clear vision. See if you do not have a clear vision of what you want real estate investing to do for you, then you need to spend some time thinking about it. See many times when I ask people why they want to become a real estate investor, they say the millions that they will make investing in real estate. I think people need to be more specific than that on their development of their vision. What are the things that motivate you? Charitable causes? Time with your family? Unfortunately, very few have a vision of their own. Many of us, let ourselves be affected by the opinion of others. Do not allow anyone to crush your vision.

So how do we get started in real estate investing? Here are a couple of questions that all real estate investors must ask themselves:

Do you want to build present income or retirement security?
Do tax advantages matter to you?
Do you have investment capital?
Do you have access to conventional lending?
What is your level of risk tolerance?

Taking the first step is often the hardest part of investing in real estate. Even the more advanced investors who understand the value of holding about the time commitment involved or be paralyzed by fear of failure. Here are a couple of suggestions on how to get started the right way: real estate in their portfolios are hesitant at times. Many of them are concerned

Meet a Coach/Mentor
"By three methods we may learn wisdom: First, by reflection, which is noblest; second, by imitation, which is easiest; and third by experience, which is the bitterest."
- Confucius

The easiest way to gain wisdom is to meet with people who have already gained experience. A mentor can make you feel at ease and give you wise advice. They may even be willing to invest their time evaluating some of your first few deals, in an effort to spare you from making some of the same mistakes they have made.

Start small
Starting small will give you the opportunity to find out whether real estate is for you without the risk of significant losses. There is no shame in beginning small.

Find a partner
"Two people are better off than one, for they can help each other succeed. If one person falls, the other can reach out and help. But someone who falls alone is in real trouble."
- Ecclesiastes

Partnering with other investors allows you to start small and also invest in larger projects by using the collective funds of your partners to finance a property.

Don't see short term failure as a bad thing
"No one ever sized people up more accurately than the person who invented the pencil eraser."
- John Maxwell

Just because you make mistakes in the early years of investing doesn't mean that you aren't cut out to be a real estate investor.

"The person interested in success has to learn to view failure as a healthy, inevitable part of the process of getting to the top".
Joyce Brothers

Over the next couple of weeks I will be sharing with you other suggestions on how to make money in real estate investing. I look forward to hearing from you.

Update on Florida Real Estate Market

Everyone is talking about recession. I have decided to stop watching the news and decided to search for positive signs in the real estate market. I chose Florida a hard hit market for this search. Here is what I found:

1. For the ninth consecutive month, sales of existing homes and condos in Florida were up again in May. Statewide, existing home sales rose 16 percent in May with a total of 13,921 homes sold, up from 12,044 homes in the same period a year ago.
2. According to the Florida Association of Realtors, the statewide median sales price in May for existing homes and condos rose over the previous month. Also, year-over-year condo sales were up 21 percent to 4,839 units in May, compared to 3,998 units in May 2008.
3. In South Florida, Miami led the pack in volume with a 76 percent increase in the sale of existing single-family homes.
4. In Miami, even though the median price for an existing single-family home fell 36 percent in May 2009 when compared to the same month last year, the good news is that there is signs of improvements as the median price increased in May from April.
5. Miami led in condo sales. Once again the sale prices are lower when compared to the same month last year. The good news is that there are signs of continued improvements in the last couple of months.
6. Existing home sales in Fort Lauderdale increased 47 percent in May when compared to the same month last year. Condo sales were up 25% in the month of May when compared to the same month last year.
7. In West Palm Beach, existing home sales were up 5 percent from a year ago. Existing condo sales increased 3 percent in West Palm Beach when compared to the sales of 2008.
8. Palm Beach County housing inventory has fallen to 11 months from the 55 months in December 2007.

The question that remains in the mind of many home buyers and investors is when will we hit bottom? I think that we have hit bottom. This does not mean that we will have an immediate and dramatic increase in sales and prices. We will experience several rough months and we will travel along this bottom for a little while. I think that a buyer or investor thinking that he/she will buy a house today and see incredible home price increases in the next 12 months will suffer some disappointments. The improving sales of existing single-family homes and condos in the state of Florida, give solid signs that the prices are beginning to stabilize. A smart real estate investor doing the proper due diligence has a great opportunity to acquire great properties at bottom prices and not only cash flow, but gain on the appreciation we will experience in the years to come.

The Sad Reality

A recent report from the FBI states that mortgage fraud is on the rise. The fraudulent events focuses on distressed homeowners who look for answers to troubled mortgages and find little help from their banks.

This report says one measure of mortgage fraud complaints is up 36 percent nationally. Most of the fraud schemes and scams are concentrated in California, Florida, Arizona and Nevada which have been hit hard by the housing market crash. As a result there are a large amount of mortgage modification and refinancing firms popping up in embattled housing markets.

The FBI report said the mortgage scams include fraudulent short sales, bankruptcy filings and reverse mortgage schemes, refinancings, modifications and sometimes arson to collect insurance money. Some of the fraud schemes hurt consumers and borrowers while others hurt original lenders, according to the FBI report. The increase of these fraudulent events in Arizona, has prompted the Arizona Attorney General's office and the Maricopa County Attorney to take action and investigate mortgage modification and refinancing outfits.

These scammers are pretending to consumers that they are government housing agencies empowered by the Barack Obama administration's stimulus and mortgage rescue programs.

It is important that our clients be aware of this fraudulent events. These scammers are taking advantage of the current economic situation and take advantage of distressed homeowners, who many times don't seem to find answers any where else.

Mortgage Applications Rise 6.6%

The demand for home loans rose last week, giving rise to further speculations that the real estate downturn may be easing. According to the Mortgage Bankers Association, mortgage applications rose to 6.6% for the week ended June 19, 2009 and it was 17.2% higher when compared to the same week last year.

Yesterday, the National Association of Realtors stated that existing home sales rose 2.4% from the April 2009 levels. Low interest rates, affordable prices and the $8,000 tax credits are helping to absorb the housing inventory.
First time home buyers accounted for 29% of the sales in May. Also, the number of buyers actively looking is up almost 10% from a year ago.

May existing home sales rose by 2.4 percent

The National Association of Realtors has reported this morning that existing home sales rose 2.4% in May 2009, which represents the third month of gain in the housing market this year. Another piece of information released was that the number of foreclosures comprising the resale market has dropped.

In my opinion this are good news. However, the media continues to instill fear in the american public by providing only part of the information or manipulating data to continue keeping people from thinking positive, so we can get out of this recession. The media continues to focus on the fact that the published information “missed economists’ expectations”. Personally I do not care if the economists got their calculations wrong (that is what the media is saying), I look at the overall picture of the housing market. Do we have signs of improvements? The answer is yes.

1. Home sales continues to show positive signs.
2. The number of foreclosures that comprises the number of homes sold is lowering.
3. The unsold home inventory continues to drop, currently it is at 9.6 month supply. If you recall about a year ago, the supply was at 12 months, and the same economists predicted that the supply was going to continue rising. A normal market is considered 6 months supply and we are moving towards that direction.
What does this mean for real estate investors and home buyers?
In my opinion the housing market may have put in a floor on prices for this year. I expect to see the prices in many areas of the United States to stabilize and experience modest appreciation. This provides great opportunities to the real estate buyers’ market.

What are your thoughts? Let us know your thoughts about this subject.

Is Wholesaling Legal?

Today I want to address a question that after many years in real estate investing, I still hear people asking the question: Is Wholesaling Legal? Recently I heard from a Realtor (I am not going to mention names nor agency, due to professional courtesy) that to make wholesaling legal you need to keep the houses for three to four months before selling them AND that investors cannot put it under contract and assign it anymore because this is “illegal”. I cannot believe we are in 2009 and still addressing this issue, but I found it necessary for my friends on this blog to be clear about this issue once at for all.

I would start by saying the following:

1. Wholesaling is NOT illegal and the assignment of contracts is NOT illegal either.
2. I like Realtors.
3. Many Realtors have not heard of wholesaling and many do not understand a “Sandwhich Lease Options”.
4. Many times when I make an attempt to explain to Realtors the only thing they say is "Your not a licensed Realtor, how can you do that?"
5. A lot of Realtors adhere to the following policy: “When in doubt, say it's illegal”.
6. Realtors are not the only professionals allowed to transact with Real Estate.
7. I think some Realtors look at Investors as either competition or crooks, the good ones see a potential customer.
8. I have Realtors tell me all the time that what I'm doing is illegal. Now I don't even argue anymore. I do not think you should waste your energy in arguing with them either.
9. You can sell things you own. If you buy the right to purchase something you can sell your rights.
10. Realtors are not attorneys. If you have questions about the legality of what you are trying to accomplish- ask an attorney.

Let’s address the two points that this Realtor mentioned in the conversation:

1. Legality of the transaction – Once again after 18 years in real estate investing, I have not found one attorney that has told me that the assignment of contracts is illegal. The only time I know flipping is illegal is when you are defrauding a lender. Therefore, make sure your buyers are cash, and if they are not cash then make sure they are using bank funds not regulated by fannie mae or freddie mac. e.g. a portfolio loan. Full disclosure.
2. Holding period – We do need to understand that FHA has a 90 days seasoning policy in any state. I do know that banks are exempt, but private owners must hold property for at least 90 days before a new buyer may enter the loan process with FHA.

Another point I wanted to mentioned to those that are interested in wholesaling REOs, is that banks do not allow assignments of contracts on short sales or REO's but that is their own rules, there is nothing illegal about it. Wholesaling of REO cannot be done using the traditional methods; therefore you need to go around it if you want to wholesale REO (Double close, LLC, etc).

I think that the Realtor may have overheard a conversation about seasoning requirements and felt compelled to share with everybody his/her new knowledge. The good news is that Realtors like the one above won’t last long in the industry. The same way ill informed investors won’t last either. There is a lot of good information available to all of you out there, training courses, ebooks, etc. Educate yourself about your profession, ask questions to those that have been in the industry long enough that can share some wisdom with you, ask question to the proper person, for example ask legal questions to your attorneys, property structural questions to property inspectors or engineers, etc.

Finally, do not waste time arguing with Realtors about the legality of Wholesaling. It is not your role to educate them, especially if they are closed minded people. Educate yourself and consult with professional that can keep you from trouble. Promoters of their “get rich quick schemes” will always tell you that what they are selling is legal; after all if it was illegal they won’t be selling it to you. Just be certain that you as an investor is performing a legal transaction and go to the bank with a smile in your next closing.

Remember last week's post alerting you to HR-1728?

Is this Bill being fast-tracked through the House and
Senate, apparently threatening not only creative real estate
investors but even the property rights of all Americans?

Well it seems that since the last posting a lot has happened.
Some real estate investors have taken both sides of this issue.
Some believe that this Bill is not a big deal and some people
are just causing a lot of hype about the issue. There are some,
including myself that believe that we must gain an understanding
of this Bill and take action against the potential danger caused
by the actions taken in Washington.

Bottom-line, not all of us in the real estate investing world are
in agreement. I invite you to take a look at this information and
be fully informed ==> Click Here

... then decide for yourself where you stand. I would like to hear
your thoughts. Share what you think about this Bill and the
potential effect in real estate investing.

HR 1728: The Restriction on Seller Financing and The Impact on Real Estate

As you may know, Congress passed HR 1728 under the name of “Mortgage Reform and Anti-Predatory Lending Act”. Now without getting into a conversation about finger pointing who is responsible about the current financial crisis we are in, regulations towards better and safer lending and the protection of consumers are needed. I know the government is concerned about predatory practices, but shouldn’t the local district attorney be a more effective tool to regulate these activities? Does our government want to take over the lending business?

I think that HR 1728, 1) is over-reaching and 2) has a negative effect for real estate. In summary HR 1728 limits you as an individual to sell real property using seller financing to only once every 3 years (HR 1728 Sec 101 Definition (3)(E)). Seller financing is where the buyer and seller negotiate a price, a payment plan, and interest rate. Seller financing is an installment sale where the buyer pays the seller monthly and the buyer gets the use of the property. This is a frequently used method of buying and selling real estate especially in this economy of tight money and it can be used as a tax strategy.

Due to the restrictions we are facing right now from the lending industry, seller financing is an alternative available for real estate investors and property owners to sell their properties in this economy. Here is a simple scenario I see how this HR 1728 could negatively affect a real estate investor:

Let’s say you are an investor and have reached your retirement age. Let’s assume you have as part of your retirement plan six rental houses that you own free and clear. Your plan consisted on selling these properties using seller financing with a 6% interest rate providing a nice, monthly income. You decided that you don’t want cash because CDs only pay 2% AND as part of your tax planning you want to defer the impact of taxes on the sale of the properties over a period of time. The bad news is that under this act your retirement plans are affected since you can only sell one property every 3 years using seller financing.

What will be next, consider private money lending illegal? Or Limit FSBOs or require a homeowner to get a real estate license to sell his/her house?

Our founders did not intend for the Government to restrict landowners from being able to sell their land. The Founders were pretty clear on this. This bill takes away our right to use seller financing as we see fit. House Bill HR 1728 should exempt anyone who offers or negotiates terms of a real property sale financed in whole or in part by the seller and secured by the seller’s real property.

Even though the proposed legislation offers some significant changes to the lending industry, most of them are common sense (like a mortgage broker should not offer a loan to someone that is not capable of paying back), it is hugely detrimental to the overall real estate marketplace, and will create severe financial damage to our economy.

Please act now and contact your representatives and senators. Exempt Seller Financing From HR 1728. Please forward this to anyone you think should know about this issue.

"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."
- Ben Franklin

The Time To Invest In Real Estate Is Now!

A couple of years ago everyone was involved in
real estate investing. It was “in” to be a real
estate investor. It was easy then, you could buy
anything, mark up the price, and turn it for a
quick profit. The lending industry joined the
frenzy, giving non-sense loans to anyone who was
breathing. Everyone was making money, it seemed
like a never-ending party!

Nobody wanted to listen to those of us that wanted
to talk about Real Estate Investing Principles, we
were called “Party-Poopers”. Then it came the
inevitable, people realized that the principles of
real estate investing were broken and the “bubble
burst” and the bottom fell out of real estate market.

The nuclear chain reaction started, the lending industry
ran away from real estate investors like we had leprosy,
properties stopped selling fast, investors got stuck with
properties they could not afford, builders stopped building,
people stopped making payments, then families were hurt by
foreclosures. What it looked a couple years ago like a
never ending party, turned into a nightmare for many.

So what is the purpose of this post.....

Now is the time to invest in real estate!

Those of us that have survived the nuclear storm are bound
to become wealthy in real estate investing if we follow the
real estate investing principles. Principle #1 Buy Low and
Sell High.

We are in a Buyers’ Market right now, the question is
for how long?

Based on current information I have made available through
the monthly newsletters to my mailing list, there is evidence
that we have hit bottom. I am going to give you two tips here:

1. Prices are starting to trend up in the last couple months, specially for the houses in the middle range($100,000 - $300,000)
2. Inventory levels are decreasing.

==> If you are interested in receiving our monthly newsletter
Please sign up to our mailing list on this blog.

You can check this information by yourself, if you do not
believe me. Once again, the rule #1 of investing is buy low
and sell high. Now we have the conditions that will allow
you to acquire properties at bottom prices and:

1. flip them for a profit
2. fix and flip them for a profit
3. buy and hold and gain on appreciation, while you gain on rent increases, while you maintain your debt low (since you bought the properties at bottom prices)
4. own a home at affordable prices and take advantage of recent incentives geared toward homeownership.

I am excited about the signs of improvements I see on the market right now. The real estate market is changing and I think it is for the better. I think if you want to take advante of this market and create wealth, the time to invest in real estate is now.

To your success!

Taking Advantage of the Foreclosure Auctions

I think that the foreclosure auctions are a tremendous opportunity to build a buyers’ list. Here are eleven tips to keep in mind as you attend your next auction:

1. Make sure to bring plenty of business cards with you.
2. Smile and show confidence, when you talk, hand shake and hand out your business cards.
3. Have a clean/professional presentation. Pay attention to details, no dirty shoes and/or shirts, etc.
4. Let the buyers know that you come across great deals BEFORE they get to the auction.
5. Be prepared to obtain their basic contact information (Name, phone number AND email), remember that your goal is to build a buyers’ list.
6. Have your “2 minute presentation” ready. Know who you are and have confidence about you and your services. Your clients can sense your confidence, people like to associate themselves with others that exude confidence.
7. Keep your eyes and ears open. Observe the participation of the auction, you will notice who are the movers and shakers. Anyone that you see buying several properties would be a great person for you to invest some time on them (invite them to lunch) and get to know them and their needs. This is a tip to WOW your potential customers, since you are willing to invest time and money on them and their needs it will make you different that others in the area that are only interested in their commission.
8. The people that participate in the auctions are cash buyers. Remember that at auctions, after someone wins the bid on a property, they have to immediately put down a down payment and then close within 30 days. So these are serious buyers, regardless of the amount of properties they buy.
9. Be persistent. Regardless of the results of this visit, do it again it will sharpen your saw.
10. Follow up. After you collect your buyers information, immediately load it into your contact software (i.e. Outlook) and follow up with them with a thank you email and share a free report with them (Rehab tips, How to Sell Your House on This Market, etc). Again it will make you stand out from the rest of the group of wholesalers/realtors who are only looking to make a quick commission.
11. Remember that all you need is 10 solid buyers. Keep in mind that if you have 10 serious buyers that on average buy one house per month and you make a wholesaling fee of $5,000 per transaction, you are making $50,000 per month. So you do not need all of the cash buyers in your area to join your company to become wealthy.

I hope this tips help you improve your success in your next foreclosure auction.

Five Easy Steps to Staying Motivated

Motivating yourself to excel in real estate investing, should not be something you do only when the spirit moves you. It’s an ongoing process that should include every facet of your business life. This means your mental attitude, physical well-being and appearance, work atmosphere, your interaction with others (realtors, investors, and sellers alike), and your off-the-job environment.

Motivational experts get paid big bucks to tell professionals, striving for success, that they must constantly examine these factors. How do you do that? Follow the 5 tips that follow, and watch the changes.

1. Maintain a Positive Attitude – Let’s realize that life is only 10% of what happens to us and 90% how we react to it. We’re responsible for our own actions and attitudes, and changing them when appropriate. When you’re around people/things that are uplifting and positive, you feel that way. You have more confidence in yourself, and know you can change whatever needs changing. If you can make your workplace such a place you’ll find yourself achieving production.
2. Leave Personal Troubles Home - Everyone has problems, but they don’t belong at work. Turn your attention and energy entirely to your on-the-job tasks. This will actually be good for you because you’ll get a mental break from your troubles.
3. Create Positive Affirmations - The reason for writing goals for your business is the same as creating positive affirmations on paper. What your eyes see and ears hear, your mind will believe. Try it! After you’ve written them down, read them aloud to yourself – and do it every morning when you get into work. You’ll be amazed at what happens. Come up with a set of new ones every month. Statements such as, “I’m an important and valuable person,” or “I know I’ll make good use of my time today.” Repeating them out loud everyday at a set time will help reinforce positive actions.
4. Make Sure Break Times Are Really Break Times - This is an area where most entrepreneurs fall down. You become so intense about the project or situation you’re working on that you don’t ease up. Thinking that it’ll be solved in the next few seconds, and then you’ll get a cup of coffee can lead you right up to quitting time. Regularly adhering to a specified break schedule, even if you’re the boss, releases the tension.
5. Exercise, Exercise, Exercise - I know that lately it seems that “exercise” is the cure-all to every physical ailment or your love life, but despite that there is some truth to that ugly word. By “exercise” I don’t mean that you should go out and join a gym and spend your lunch-time, 3-days-a-week there working out. What is really beneficial and workable is that at those chiming alerts from your computer, get up and walk around your desk or room. Maybe go outside and get the mail and enjoy the sunlight (if you’re an entrepreneur that has a home office), or just get up and do a few stretches. Concentrated, tense thinking – typing - plotting plans - or whatever your work, makes all those muscles tighten up and knot up. Then when we move we “ooh” and “ouch” because we’ve knotted up into a ball of tension. Periodic stretching, even at our desk, or just getting up and walking over to the window and getting a different view can help. One of the greatest disservice modern business décor has done to us, is making our offices pristine, sleek, unencumbered spaces. There is nothing more relaxing than getting up from your desk and walking over to a peaceful, serene, seascape or pastoral painting and just drinking it in visually. Momentarily transporting your mind out of work and into that place does wonders. A few good paintings and less shiny chrome in offices would benefit us all.

It only takes a little concentrated effort on our part to keep motivated and productive, which leads to success. I know you’re going to hate hearing this, but it’s true anyway – and that is, “WHEN LIFE GIVES YOUR LEMONS – MAKE LEMONADE!”

Distressed Property; Is it a Positive Investment?

There are many investments that are made in real estate, most which are expected to allow the price of the property to go up. However, sometimes the value of a property starts down. With the housing market down and foreclosure on the rise, it is tempting to to jump and start buying and selling distressed properties. It is very tempting, specially with all of the infomercials about the riches to be made if you buy there 36 cd and 14 book guarantee to riches with distressed properties. Don’t get me wrong, I love real estate investing. What I don’t like to see is unprepared investors getting hurt in the real estate investment road.

I believe that right now is a good time to invest in real estate and to make money if you are well prepared for it. I think that it would be foolish for some to think that now might be a good time to invest in distressed properties, because they expect to find low hanging fruits that just anybody can pluck. I think it would be foolish to think that all distressed properties are made equal. That type of thinking is what get the inexperienced hurt in real estate investing. So prepare yourself, educate yourself about the your local market and trends, invest on some training, invest time on sites like this one and ask questions to those who have been in the trenches longer than you. There are plenty of books and websites that can teach you the basics, but beware of those that charge thousands of dollars for a “Get Rich Quick Real Estate Plan” (The ones getting rich are them, while you find out that a little bit of information – which usually you find free on sites like this one or on the internet and a lot of cheerleading is a costly combination.)

If you decide that the rehab business or “fix and flip” is your way to make money, then take a moment and study the property before you start. The first thing that should come to your mind is if a property is distressed, it means that it has not had the care and attention needed by the previous owners. Most likely, the home is part of a foreclosure, abandoned home, or other problem and may have not been lived in for a specified amount of time. Any distressed property will need a lot of attention given to it if you decide to invest in the property.

Before looking at this type of property, you will want to make sure that it will be worth your investment. While a distressed property will usually go down thousands of dollars because of the quality, it may not be cheaper. It will be expected that you put a specific amount of work and money into the home in order to repair it and get it back up to being part of the market. In other words, you need to develop an investment budget for the project.

If you are able to get an extra loan, have more money, and want to fix up a home, then a distressed property is for you. However, if you don't want to put in the extra effort, then finding this type of property may loose you money and comfort in your own home. You will also need to decide whether you will be able to profit off of the investment in the long run according to the neighborhood, market, and your intentions for using the property.

While a distressed property can benefit, it will need to fit your goals and your lifestyle in order to be an effective investment. As long as you have assessed your financial stability and goals and are able to put in the extra money, time and work, you can take a distressed property and turn it into what you want. This will give the property the dream of moving from rags to riches.

Real Estate Bird Dogs

Investment is the number one word for real estate. However, those who play a part in the investment will make a large difference in what is available to you. Whether you are working towards finding real estate property for profit or for your first home, knowing where the resources are and what they do can help you find the best deals.

One important person that is part of the real estate investment plan is the real estate bird dogs. The main job of a real estate bird dog is to find property for those who want to invest in real estate property. After they find a property, the investor will then pay them a service fee. The real estate bird dog will have no attachment to the property after it is found and given to the investor, leaving the rest of the changes up to the real estate investor. If one is going to invest in a property, they will expect the real estate bird dog to find them leads that are valuable and can be sold at a good price.

Part of your professional team should include good birddogs that understand the type of properties you are looking for. Understanding the process of real estate, and using the different resources can help you to find the best deals and make the best deals. If you aren't sure where to start, using a real estate bird dog is a good way to sniff out what is available to you. This will give you the ability to claim or give away a piece of property on the market.

What to Look for in a Foreclosed Home

The first thing you should look for – or look forward to - is weeks and even months of diligent research. The opportunities in foreclosed homes often fall into the old adage, “If something sounds too good to be true, it usually is.” What is true is that some foreclosed homes will sell at 50% or more below market.

Location

If the foreclosure opportunity you’re looking for is an investment opportunity, then you would be wise to review five years or more of real estate sales history in the area. Have the homes appreciated sufficiently to make your investment risk worthwhile? The property doesn’t have to be in an exclusive neighborhood, but it should be in an economically stable area. This is not an issue of who is moving in and who is moving out, but rather how much is being paid for the homes changing hands.

One recently introduced factor to consider if you’re looking in the Southeast is the cost of homeowner’s insurance and coverage for windstorms. You might find some real bargains in Hurricane Lane there, but also find yourself buying a house you can’t afford to insure. You will also find areas where flood insurance is simply no longer available.

Physical Condition

Consider the circumstances of a foreclosure. Most people lose their grip on their homes after struggling to meet mortgage payments for an extended period of time. That probably means the home has received little or no maintenance, and the property you’re inspecting may appear to be in poor shape. If it’s in a quality location however, ignore the condition for the moment, take note of the obvious signs of deterioration, and incorporate rehab costs into your calculations.

Analyze the Competition

Keep in mind that just as in any real estate market, you are bidding against professionals. There are people in most areas who make a living from buying foreclosed properties, cleaning them up and putting them right back on the market. Professionals operating in that fashion may not be willing to bid up near market price for the neighborhood, but with any well located property you’re not going to walk away with a “steal.” Take a look at recent foreclosure sales in the area and see if you can find a pattern in the successful bids – how far below market are they?

Clean Title

With any foreclosed property you need to look closely at the condition of the building’s title. Check to see if there are any liens on it other than that of the lender who is selling it. If you can, determine if the former owner is embroiled in any lawsuits that could conceivably lead to a challenge of the sale and tying up the property. In theory, once a property reaches the foreclosure stage it is going to market unencumbered. That means nothing to an attorney who sees opportunity in attempting to delay disbursement of the former owner’s principal asset. Delay is the operative word here; if you’re going to invest in a property you need to be able to put it to work for you with dispatch.

I hope these tips help you in your real estate investing process. If you want to learn more about real estate investing, I invite you to join for free our mailing list and receive our monthly newsletter packed with tips and insight to help you become a savvy real estate investor. Go to http://tinyurl.com/rcs6al and join our mailing list.

Is Real Estate Investing For You?

This topic may sound harsh to many of you. If you are new or thinking about starting a profession as a real estate investor it is a question that you must ask yourself. It is important to find out now, rather than later so you won’t waste your efforts, time and money. My goal here is not to scare you, it is to help you be successful in life. Do you have what it takes?

We all have our own unique reasons why we want to be involved in this business. Among the most popular choices are “being your own boss” , the possibility of “financial freedom”, and having your own TV Series (hey you never know you may be the next Donald). Many are attracted to this business for the simple fact that real estate investing has made more millionaires than any other business in history. Ask yourself; What are your reasons?

Real estate investing is not a shortcut to wealth, despite what many of so-called “Gurus” say. They will motivate you to buy their books and tapes, go to their “Rah Rah” seminars and the only ones building wealth are them. In this profession, that I love and I am pationate about, to be successful you must have:
• Patience
• Persistance
• Faith
• Desire
• Specialized Knowledge
• Self-confidence
• Imagination
• Organization
• Courage

Over the last 18 years, I have seen many people succeed and fail in real estate investing. I will share with you the traits that would indicate to me that a person is not ready for this profession:
1. They want to know “every single detail” on how to do something, before they do it. Some of them become part of the elite group of “Real Estate Investing Book Investors”. They invest in books about real estate investing for months, even years and do nothing since they will never know every single detail of a transaction.
2. They are easily influenced and let others inoculate fear serum in them.
3. They are pessimists and see nothing but pitfalls to real estate investing; “But what if…? Or I don’t think I can…?”. Remember the wise words of Napoleon Hill “Whatever your mind can conceive and believe it can achieve” This applies to success and failure. Another person once told me “You find what you are looking for”, if what you are looking for is the way that a real estate transaction does not work, you will find it.
4. They lack commitment to make personal sacrifices to reach their goals.
5. They are the type of person that waits for “things to happen”, instead of taking control and making things happen. They let others or outside factors dictate their lives.
6. They expect overnight success and quit at the first sign of difficulty.
7. They are afraid of competition. (Let me give you a hot tip: You are not the only real estate investor in the United States, nor your state, nor your city)
8. They do not commit to learning and applying what they learn. Knowledge by itself is just potential power. The only way we convert our knowledge into wealth is by applying what we have learned.
9. They refuse to give up hobbies and time-wasters in order to succeed.
10. They are easily scared by the big numbers of real estate investing.

My advice to you is to take a hard and honest look at yourself and the question I posed here. If, after consideration, you answer yes, then welcome to the club!. Invest in yourself and your business every day and never give up your dreams.

Why Wholesaling?

I decided today to answer one question many times I am asked why do I recommend wholesaling to those that are starting in the world of real estate investing. I have been in real estate investing for over 18 years (whoo hoo!). During those 18 years I have seen the ups and downs of the market and I have seen and learned from the mistakes that many people make in real estate investing.

One of the mistakes I see often made by those starting is that they chew more than they can swallow. Hence, the reason I think that one of the best ways to get started is through wholesaling. Wholesaling can be defined as the art of contracting properties that you plan to resell to another investor, wholesaler or retail customer before you close on the property.

So here are five reasons I think you should consider wholesaling when you are starting:

1. It lowers the risk of getting involved in real estate investing.
2. It is an excellent way to learn your market and learn more.
3. It is a great way to meet other investors and learn from them.
4. You can generate cash quick.
5. You will find great buy and hold opportunities to build your real estate portfolio.

Today I still wholesale transactions as part of my real estate investing strategies. It has been the way I select the properties I want to keep and I know that the properties I wholesale are great quality properties. Start slow and take smaller bites as you start.

Great Real Estate Myths

If you pay attention to what people have to say about real estate investing, you will notice that most of the perception they have is based on fear. Most people will believe whatever they hear to be able to justify that fear. Mix to that fear a touch of laziness and disorganization and you get the most wealth preventing myths about real estate investing ever created. Now think about this, these individuals will procreate and conceive children whom they will infuse with the same fear serum and we get a great population of individuals not able to achieve their full potential.

Most of the myths discussed here and that you hear people talk about, are fear based. Others can be managed if we were to educate ourselves about the business, in this case real estate investing, we are about to embark. If you want to make money in real estate, you have to separate the myth from facts.

What are those myths?

1. REAL ESTATE INVESTING IS EASY – Real estate investing is not easy, it is SIMPLE. Unfortunatelty there are a lot of “gurus” out there selling the idea that if you buy their books and tapes you will discover “secrets” that will make real estate investing easy. What we have are basic principles to follow which makes it simple. It takes time, desire and dedication to learn those basics and be successful at it.
2. INVESTING IS A GAMBLE - There are many people that believe that any type of investing, including real estate investing, is about luck. The problem with these “investors”, is that they throw their money to anything that looks good, to the new “hot tip of the day”. These investors do not take time to educate themselves on what is a good investment and not to invest on emotions.
3. IT DOES NOT WORK IN MY MARKET - Real estate investing works in every market. You need to take into consideration that it may work differently in some markets compared to others. There are real estate investors making money in every city, every day of the week. You must educate yourself about your market. Learn about the rents, the trends, demands of your local market. Adapt the basic principles mentioned above to your local market.
4. I HAVE NO TIME – Like someone told me one day, “throw your television, and you will have all the time you need.” Real estate investing like any business takes time. You need to organize your tasks to be successful in any business.
5. YOU NEED MONEY TO INVEST IN REAL ESTATE – Focus on finding good deals, the money will find you. If you find good deals, you will find willing partners to join you on your investment.
6. “EVERYONE” SAYS THIS STUFF DOES NOT WORK – As I mentioned above, real estate investing is not easy. If you listen to all of the pessimists you will meet around your neighborhood and the news in the television, you will convince yourself that it does not work. Instead, gather information from those that have been investing for a long period of time. Those that have been through the ups and downs of the market. Find out what has made them successful. Remember the wise words of Henry Ford “Whether you think you can or think you can’t, you are right.”
7. I CANNOT INVEST IN REAL ESTATE SINCE I HAVE BAD CREDIT – Good credit helps. You do not need to have good/perfect credit to invest in real estate. There are a couple of creative investment options (flipping properties) that you can do even if you have bad credit. You can start with a method like bird-dogging or flipping properties and build up some capital, while you repair your bad credit.
8. YOU NEED TO TIME THE MARKET – Unless you have a crystal ball, you will never know what is going to happen in the market. The bottom-line is that you have to find good deals. Good deals work in any market condition.
9. ALL REAL ESTATE IS A GOOD INVESTMENT – Only good deals are good investments. It is not about the vehicle you use (buy and hold, short sale, wholesale, etc), it is about finding good deals.
10. REAL ESTATE IS TOO RISKY – You have to be willing to take calculated risk to make money. In my opinion, real estate is one of the safest investments you can have. The highest risk in any investment lies in the lack of education. The more you educate yourself, the less risky real estate investing becomes.

You are not alone in believing any of these things, they are said so often they sound like facts.