Business Capital:
The Life Blood of Your Real Estate Business

By Matt Fagerness

We’ve all heard about the numerous ways you can successfully do real estate transactions with no money down (or at least with a bare minimum of operating capital) and I am a believer in these techniques myself. After all, I was also a Wealth Intelligence Academy® student before becoming a trainer and a mentor for the Academy. I have done deals with owner financing and I have done my share of wholesale deals too, which goes to show that the no money down concept is alive and well, and that these kinds of deals are also something you can do.

With that said, let me shift gears just a little bit. It is often said that businesses (particularly small ones) usually fail for three common reasons. One is the business owner selects the wrong business to begin with. With real estate being as diverse and commonplace as it is, I am not concerned about this pitfall being in your way. Another reason that businesses may fail is they are poorly managed. Right now, your business is likely so small (personnel-wise) that management is not really a factor. On top of that, remember none of us need to be experts on all facets of the business and what you do not know can and should be delegated to your professional power team.

Continue reading "Business and Finance: Business Capital for Real Estate Investing Businesses" »

Posted 01:20 PM | Permalink | Comments (0)

The Hardship Letter:

Learn More about this Important Piece of the Short Sale Package

By Lauri Waddell

When a short sale is negotiated with the lender, a hardship letter from the homeowner is requested in the short-sale package. There are several purposes for the submission of the hardship letter which we will explore.

The hardship letter is a letter to be written by the homeowner detailing the events that led up to the default and pre-foreclosure of the mortgage. The letter should detail, in chronological order, the events that caused hardship which ultimately led to financial duress and the default of the loan. As investors, we must always keep in mind that “Life happens to good people.” No one intentionally chooses foreclosure. Our job as investors is to assist the homeowner in documenting the events that led to the preforeclosure of their home. We do this with an empathetic and professional approach that gives the homeowner dignity in the process of letting them tell their story.

Continue reading "Short Sales and Foreclosure Investing: The Hardship Letter" »

Posted 01:12 PM | Permalink | Comments (0)

According to a survey featured in Consumer Reports September 2008 issue, many real estate brokers are willing to negotiate their commission rates with sellers who try to haggle.

The survey found that 46 percent of sellers who responded attempted to negotiate a lower commission rate. Roughly 71 percent succeeded. The survey also found that sellers who paid commission rates of 3 percent or lower were just as satisfied with their brokers’ performance as those who paid 6 percent or more, suggesting that negotiating can’t hurt.

Continue reading "Consumer Reports Survey: Home Sellers Can Negotiate Broker Commissions Without Hurting Service or Sale Price" »

Posted 04:49 PM | Permalink | Comments (0)

Title insurance provides the property buyer and/or the mortgage lender protection against losses resulting from unknown defects in the title to a property that occur prior to the closing of a real estate transaction. Unknown defects in a title, such as any outstanding liens or encumbrances, can result in additional costs in the future or even invalidate a buyer’s right of ownership in the property, and might also invalidate the lender’s security interest in the policy. Title insurance policies will cover the insured party for any covered losses and legal fees that might arise out of such problems.

Continue reading "Title Insurance Facts" »

Posted 08:06 AM | Permalink | Comments (0)

Are You Ready to Close?

Almost anyone who has ever purchased real estate can tell stories of problems at closing that ranged from minor glitches to massive headaches—and sometimes even resulted in the deal falling apart. Your closings will go more smoothly if you understand what you need to do and prepare ahead of time.

By Jacquelyn Lynn

You find a property, you complete your due diligence, and you negotiate a deal that both you and the seller are satisfied with—but there’s still one more step in the process: the closing. There is no circumstance where the old saying, “the job’s not finished until the paperwork is done” is more appropriate. A real estate closing is where you complete the transaction, where the buyer pays the money and the seller takes ownership of the property. And though it sounds simple, there’s a lot of paperwork and it needs to be done accurately. What’s more, no two closings will ever be exactly alike. That’s why real estate investors need to understand everything involved in the closing process and what they need to bring to the table whether they are buying or selling.

Continue reading "Real Estate Investing: Get Ready to Close" »

Posted 08:02 AM | Permalink | Comments (0)

Finding Farming Areas, Driving for Dollars, and Cultivating Our Market

By Mich Christensen

What is a farming area, how do we find it, and what do we do when we find it?

When we decide to become an investor, we go through the process of getting an education, gaining access to current information, and then implementing what we have learned. Here are some of the first steps in finding our “farming areas,” and once we find them, what to do with them. As beginners, we may start out with one or perhaps two areas that we may be interested in farming. Then as time and experience allows, we expand into additional areas.

Continue reading "Real Estate Investing: Finding Farm Areas" »

Posted 07:57 AM | Permalink | Comments (0)

A report from the Center for Media Research reveals some interesting facts about the wealth of Americans. The report says that a new segment of wealthy Americans has emerged in recent years:

“Known as the New Mass Affluent, this new crop of wealthy Americans were born of the post-war boom, raised in middle-class suburbs and benefited from college educations and years of economic prosperity during the bull market of the 1990s. Today they're the empty-nesters converting their kids' old rooms to home gyms, the well-heeled shopping at Costco and the workaholics fiddling with their BlackBerry on the express commuter train.”

These people are also investing and could be ideal financial partners for real estate investors.

Click here to read the full post by Jack Loechner (you have to sign up, but the account is free), then look around at the people who know who fit the demographic he describes. You may have some funding sources right in front of you that you never thought about before.

Posted 09:01 AM | Permalink | Comments (0)

A Key Element of a Successful Short Sale

The BPO: Broker’s Price Opinion

By Lauri Waddell

One of the items that seems to bring the most challenge in a short sale package is the lender’s perspective of the value of the property. This article will address how to legally and ethically show the lender what the true value of the property you are trying to negotiate the short sale for should be.

Continue reading "Short Sales: The BPO (Broker's Price Opinion)" »

Posted 06:51 PM | Permalink | Comments (2)

Managing Residential Properties

Pets & Pet Peeves

By Victoria Greene

Like many others, I like animals. I grew up with German Shepherds, Dobermans, pugs, and poodles. We had cats, birds, gerbils, and fish at one time or another. Our furry and feathered friends were like family. So when I make recommendations for you to consider as you establish or refine your pet policies, it is not from a place of disliking pets or pet owners; it is rooted in the fact that I have loved my pets so much that I know there are times allowing pets is not in the best interest of the pet or the resident(s).

Continue reading "Property Management: Pets & Pet Peeves" »

Posted 06:39 PM | Permalink | Comments (0)

By Richard N. Pexton

Much of our activity in real estate investing involves buying, fixing, and selling houses in condensed time frames. This provides cash flow and also generates capital for creating wealth.

There are four obstacles to creating wealth: taxes, inflation, spending habits, and procrastination.

Continue reading "Real Estate Investing Strategy: Buy One a Year for 20 Years" »

Posted 09:14 AM | Permalink | Comments (4)

By Tim Chaffin

I teach the Rehabbing for Profit class for the Wealth Intelligence Academy. I am not there to show students how to hang drywall or to put on a roof.

I am there to show students how to put together a rehab project and complete it without eating up all of their time and money. It is important to remember that you are not going to live in this house. You are simply going to fix it up and make it clean, safe, and livable.

Almost every property you find and/or purchase is going to need some sort of rehabbing. Whether it is a property for sale by owner, an REO, or in foreclosure, most likely it is going to need something done to it. Chances are you will rarely, if ever, find a property in “broom swept” condition that is ready to be occupied.

Continue reading "Rehabbing for Profit" »

Posted 09:10 AM | Permalink | Comments (0)

Headlines scream that foreclosures are up, property values are down, and pundits are talking recession. What’s true? And what does it mean for real estate investors?

By Jacquelyn Lynn

Pick up a newspaper, turn on a news broadcast, or surf the internet for economic news, and you’re likely to come away with the impression that the world as we know it is going to end tomorrow, so what’s the point in doing anything? Let’s just all shop ‘til we drop and eat lots of chocolate.

The flaw in that thinking is twofold: First, the world is probably not going to end tomorrow—it might, of course, but what if it doesn’t? Spending all our money and getting fat is not the best way to prepare for the future. Second, the media love to use negativity and scare tactics to increase ratings, whether or not their frightening twist on the facts is justified.

Continue reading "The Real Truth About Today’s Real Estate Market" »

Posted 09:01 AM | Permalink | Comments (2)

When you are shopping for a real estate investment, one or more of the following are signals that you’ve found a potentially good deal.

Distressed seller. A distressed seller is under tremendous pressure to unload the property. Such a seller may be facing foreclosure, going through a divorce, or experiencing a personal crisis that has created a financial need. Sometimes a distressed seller is an heir (or heirs) who has inherited the property and just wants to be rid of it.

Distressed property. A distressed property has usually suffered neglect and is in serious need of paint and other repairs and maintenance. It’s common for owners of distressed properties to expect to sell at a price well below what the fair market value would be if the property was in good shape.

Lack of management. When income-producing property is poorly managed, it will likely not be profitable—or certainly not as profitable as it could be. When you find a property suffering from lack of management, you have an opportunity to make a great deal and turn things around for future profits.

Lack of owner interest. When a property owner loses interest in his investments, it’s a great opportunity for you to step in. In some cases, rather than sell immediately, the owner will let the property deteriorate, which adds distressed property to the equation. In other cases, the owner may just want to be rid of something that has become a burden. In any case, when the owner isn’t interested, you have a chance to put together a great deal.

Posted 08:38 AM | Permalink | Comments (0)

Forbes.com iConference: All-Weather Portfolio Strategies

On May 22, 2008 Forbes.com will hold its first-ever virtual investor conference that is designed to help investors navigate the current turbulent market environment.

Prospering during times of uncertainty takes more than just patience and investor fortitude, it requires smart, actionable investment advice. This day-long online event begins at 10:00 a.m. and goes to 6:00 p.m., and will feature Steve Forbes and an all star panel of investment advisors and experts, including Robert Kiyosaki. The event is free to all investors and is accessible via any Web-connected computer.

In addition to speakers and discussions, you can visit an exhibit hall with booths and information about the sponsors. There is also a resource center, opportunities to network, receive advice through chat rooms and message boards and the opportunity to win prizes just for attending!

Steve Forbes and Robert Kiyosaki will present Stocks, Politics and the Economy: Prudent Strategies for Turbulent Times at 10:15 a.m. to 11:15 a.m.

Click here for more information and to register for this valuable free event.

Posted 08:15 AM | Permalink | Comments (0)

A survey of 1,049 voters revealed that 53.8 percent thought this is a good time to buy a house, according to a recent article on CNBC.com. Click here to read the full story.

Posted 10:28 AM | Permalink | Comments (0)

Investing in real estate rehabs will always be a popular option for investors who know how and are willing to either do the work or get it done. But many new investors are intimidated by the idea of buying a distressed property that no one else wants and fixing it up.

If you're a rehab investor, what are some of the things you do to get your rehabs fixed up and on the market quickly and economically? Do you have some quick fixes for cabinets and countertops? For carpets and flooring? Landscaping? Maybe a great way to eliminate odors or brighten up dull fixtures?

Please use the comment feature to share some of the techniques you use that work.

Posted 06:47 PM | Permalink | Comments (0)

Ever feel like you’re swimming upstream? Try these…

14 Great Ways to Stay Motivated

By Jordan Taylor

One of the most challenging aspects of real estate investing is staying motivated in the face of adversity. Sure, it’s easy to keep going when things are going great, but what about when you can’t find deals, or when the deals you find are falling through, or when your friends and family are telling you you’re crazy to think you can do this? Because staying motivated is often easier said than done, we put together a list of 14 things you can do to lift yourself up when circumstances start dragging you down.

Continue reading "14 Great Ways to Stay Motivated" »

Posted 05:52 AM | Permalink | Comments (3)

Being a good negotiator will help you in all aspects of your life, not just in business

By Jacquelyn Lynn

When you think about it, life is a series of negotiations. The American Heritage Dictionary defines negotiate as conferring with another or others in order to come to terms or reach an agreement. You negotiate with others far more often than you may realize—negotiations that include interactions with family and friends, getting the best deal on a consumer purchase, and a wide variety of business activities.

Continue reading "Sharpen Your Negotiating Skills" »

Posted 05:38 AM | Permalink | Comments (1)

The February numbers are out and the housing market is showing signs of stability. Sales of existing homes are rising and inventories are falling. Click to read the MarketWatch report.

Posted 03:52 PM | Permalink | Comments (0)

FICO (the credit scoring company) sends out a e-newsletter with interesting information. The latest one included a question about the impact foreclosure has on credit scores. If you are a foreclosure investor, you should understand this. Here’s the question and answer as published by myFICO.

Continue reading "How do foreclosures and bankruptcies affect credit scores?" »

Posted 10:31 AM | Permalink | Comments (2)

Some Positive Signs Visible in the Housing Markets
Economic Stimulus Act of 2008 Signed Into Law -- Mortgage Availability Should Be Affected Positively

NEW YORK, NY--(Marketwire - March 3, 2008) - Bright spots appear within the negative outlook, according to the RPX Monthly Housing Market Report released today by Radar Logic Incorporated.
"Despite the continued flow of bad news from the housing markets, several of the cities tracked by RPX are sending positive signals," said Michael Feder, Chief Executive Officer of Radar Logic Incorporated.

Key Points of the December 2007 RPX Housing Market Report include:
-- For December 2007, of the 25 Metropolitan Statistical Areas examined, four residential markets showed price increases.

-- Transaction volumes have been a leading indicator for price declines in most cities. Boston, Cleveland, Detroit, Sacramento and San Diego are experiencing a recent increase in volume after a period of price declines.

-- The Economic Stimulus Act of 2008 is now law. Cities with higher price points may see increases in the liquidity of the residential mortgage market as a result, possibly sparking an end to the slide in housing prices.

To read the full release, click here.

Posted 04:41 PM | Permalink | Comments (0)

Mandatory Disclosure:
How much do sellers have to tell?

By Jacquelyn Lynn

Real estate disclosure laws are changing constantly, and even the experts don’t always agree on what a seller of residential property must tell a prospective buyer. Up until about 50 years ago, there was little, if any, legislation requiring sellers to disclose a property’s defects. If there was a problem and the buyer didn’t find out before closing, he was typically out of luck.

Continue reading "Mandatory Disclosure: How much do sellers have to tell?" »

Posted 11:12 AM | Permalink | Comments (1)

Real Estate Fundamentals:

Hard Money Isn’t Necessarily Hard to Get

If hard money sounds like borrowing the hard way, relax. The term is used primarily in the United States and Canada to describe a specific type of asset-based financing where the loan is made based on the value of the real estate with little or no consideration given to the creditworthiness of the borrower. [An increasing number of hard money lenders are asking borrowers to complete credit applications and taking credit history into consideration when making a lending decision, but their primary consideration is still the collateral being offered.]

Continue reading "Hard Money Isn’t Necessarily Hard to Get" »

Posted 11:06 AM | Permalink | Comments (0)

Foreclosure strategies:

Short Sales Can Lead to Tall Profits

It’s a scenario that could happen anywhere: Joe and Mary bought their house for $250,000, put just five percent down, and took out an adjustable rate mortgage. Three years later, the market is soft and overall real estate values have declined. Joe and Mary’s house has a fair market value of $230,000, their loan balance is $225,000, and their mortgage has reset—and now they can’t afford their payments.

Can you help them? Possibly—if you can negotiate a short sale with their lender.

Continue reading "Short Sales Can Lead to Tall Profits" »

Posted 11:02 AM | Permalink | Comments (2)

I saw an online news headline that read:

Housing Bust Gets Scarier
Former NBA Star in Foreclosure

Oh, please! That an irresponsible professional athlete managed to make and squander millions of dollars has absolutely nothing to do with the state of the real estate market today.

Don’t buy into the media doom and gloom. Are there a lot of foreclosures out there? Yes, and that means opportunities for foreclosure investors.

For savvy investors, this market is not scary at all – it’s exciting and full of opportunity.

What do you think when you see headlines like the one above?

Posted 01:36 PM | Permalink | Comments (0)

A real estate investor in Flagler Beach, Florida didn’t know a computer problem at Fifth Third Bank had dumped bad information on his credit file, sending his credit score into the basement, causing him to lose deals because he couldn’t get financing, and causing his line of credit with another bank to be cut off. (See “Real-estate investor sues Fifth Third Bank over computer error”)

The problem, which Fifth Third says occurred when it was consolidating with another bank, was not disclosed to customers unless they complained—and most didn’t complain until they applied for a loan and were turned down.

Real estate investing can be a fast-moving business. While it’s possible to delay closings while problems are worked out, not every deal will wait. That’s why it’s important to keep an eye on what’s going on in every aspect of your financial life—especially in your credit file.

Posted 06:39 AM | Permalink | Comments (0)

Are mobile homes really magnets for tornados? No. But they should be magnets for smart real estate investors.

Manufacturing housing continues to be a popular option for consumers across the country, and what makes them appealing to consumers is exactly what makes them a profitable choice for investors: They are less expensive than site-built homes while offering comparable amenities.

If you’re considering mobile homes as an investment strategy, you may want to read an article that recently appeared in the Orlando Sentinel: “Despite 2007 Orlando-area tornadoes, mobile homes still popular.” Then check out our advanced training on Manufactured/Mobile Homes & RV Parks. An online course begins April 1.

Posted 09:00 AM | Permalink | Comments (0)

By Jordan Taylor

In most situations, tax liens are not good news for real estate investors; they can cloud titles and reduce profits. But tax liens are good when you want to buy tax lien certificates, because you are not investing in property but rather buying the rights of a taxing authority.

Continue reading "Tax Liens and Deeds: Should this investment strategy be part of your plan?" »

Posted 07:30 PM | Permalink | Comments (13)

Hear Robert and Kim Kiyosaki on Doing It Right Radio™. Click here to hear Robert speak on entrepreneurship and Kim on the importance of financial literacy for women.

Posted 06:46 AM | Permalink | Comments (0)

In a post on ProgramCritque.com, Mark says, "I for one can testify fully that these courses work. I'm living proof." Click here to read his message.

Posted 11:11 AM | Permalink | Comments (0)

On Dec. 20, 2007 President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007. The goal of the legislation is to help Americans avoid foreclosure by protecting families from higher taxes when they refinance their home mortgages.

Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed. The Act creates a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness they receive.

Continue reading "President Bush signs Mortgage Forgiveness Debt Relief Act of 2007" »

Posted 11:39 AM | Permalink | Comments (0)

The State of New York and the FBI have indicted six people, charging them with participating in a wide-ranging “home foreclosure rescue” scheme, in which they defrauded homeowners of the titles to their homes and caused lenders to hold millions of dollars of bad loans. The details are outlined in “Six Charged in Multimillion Dollar Foreclosure Rescue Scheme.”
What’s frustrating about this and similar stories is that it’s possible to make substantial amounts of money investing in foreclosures ethically, honestly, and without hurting anyone. How much you make depends, of course, on you. But the point is, you don’t have to defraud anyone to build wealth. And these criminals cast a shadow on the ethical investors and make it harder for them to invest.

This scam obviously took a lot of intelligence and work to put together. If these folks had taken that energy and use the legal, ethical strategies we teach, they would probably be getting ready for a wonderful Christmas with their families right now instead of facing criminal charges and possible lengthy prison terms.

Jackie

Posted 02:30 PM | Permalink | Comments (0)

President Bush has unveiled a plan designed to reduce the rate of foreclosures by extending the period of “teaser” rate for subprime mortgage holders for five years.

If—and this is a big if—the plan works exactly as it’s supposed to, there will still be plenty of foreclosures. According to the news reports, to qualify for the plan, a borrower must have a loan originated between January 2005 and July 2007 with a reset scheduled between January 2008 and July 2010; made all payments on time; and can’t afford the reset payment. Unfortunately, there are plenty of people who are now and will be in the next few years facing foreclosure who don’t meet those parameters. What’s more, it’s not clear just how much help this plan is going to provide people who do meet the parameters. Read “Up in ARMs – the Mortgage Bailout” by Matthew Graham for a view you’re not likely to get in your daily newspaper or on the network news.

This is still an excellent time to learn and use foreclosure investing skills and strategies.

Posted 03:42 PM | Permalink | Comments (0)

The most common way to generate cash flow with real estate is through renting your property to a tenant. Good tenants are some of your most valuable assets, while a bad tenant can be your worst nightmare. So how do you get the good ones? The answer is tenant screening, and it applies whether you have properties for low-, moderate-, or upper-income tenants.

Continue reading "Protect Your Investment Through Tenant Screening" »

Posted 08:02 AM | Permalink | Comments (0)

Finish this sentence: “I’d like to invest in real estate, but ____________.”

If you said, “I don’t have the money,” there is a solution.

Remember that while it takes money to invest in real estate, it doesn’t have to be your money. If you have a good deal, you can find the funding. One alternative is a simple partnership.

Continue reading "Partnerships are a Great Way to Fund Real Estate Investments" »

Posted 07:55 AM | Permalink | Comments (7)

In most areas, it’s a buyer’s market. That means real estate prices are down and sellers are making concessions to close deals.

In their recent newsletter, real estate agents Jerry and Irene Stoffer had an article about the buyer’s market. While it’s targeted more toward end users (people buying homes for themselves) rather than investors, it has some valuable points you may want to consider—especially if you’re just getting started. Click here to get to the main page of the newsletter, then click on the article, “It's A Buyers Market. So, When Are You Going to Buy?”

Jackie

Posted 06:16 PM | Permalink | Comments (0)

In many areas, real estate prices are dropping, inventory is up, and the doomsayers are predicting the worst.

But let’s get personal about this: is the right time for you to invest in real estate? Only you can make that decision, but don’t let “the current market” fear mongers scare you away from achieving your financial goals. Any time is the right time to invest in real estate if you know what you’re doing.

The National Association of Realtors® ran an ad in yesterday’s Orlando Sentinel that was interesting. Though it was targeted to individual homebuyers, investors could learn from it as well.

Some of the points in the ad:

• Right now, interest rates are still at historic lows, conventional financing is available, and FHA-insured mortgage applications are on the rise.

• On average, the value of a home nearly doubles every 10 years.

• During the past three decades, home values have increased an average of 6.6 percent per year.

• The average homeowner today has 36 times the wealth of the average renter.

Definitely something to think about.

Jackie

Posted 08:56 AM | Permalink | Comments (0)

If you’re investing in foreclosures, you may encounter prospective sellers who can’t pay their mortgages and are considering bankruptcy. In fact, as a foreclosure investor, your biggest competitor is not other investors, but bankruptcy. You’ll find it helpful to have a good understanding of the bankruptcy process and what it can and can’t do for debtors.

Here’s a link to a post on MyFico.com that discusses bankruptcy basics: click here to read Bankruptcy FAQ.

Posted 05:20 AM | Permalink | Comments (0)

How much should you pay for a property? Certainly you’ll want to consider what the seller is asking, but you should base your offer on the market, the condition of the property, and the cash flow and profit it will generate for you.

Let’s say you’re buying a single-family or small multi-unit residential building. Here are the steps to determine the maximum amount you’ll pay:

1. Determine the after repair value—that is, the market value of the property after you’ve completed any necessary repairs and fix-up.
2. Calculate the fire sale price, which is the amount slightly under market value that would assure you a quick sale.
3. From the fire sale price, subtract your repair and fix-up costs plus your sales and closing costs. Then subtract the amount of profit you want on the deal.

The figure you have left is the maximum amount you should pay for the property. Use this formula whether you are buying for a quick turn or to hold long-term.

Posted 08:44 AM | Permalink | Comments (14)

One of the joys of watching children grow up is seeing them learn to be independent. Certainly independence and self-reliance are qualities to be admired, but when it comes to real estate investing, interdependence on the right people can give your business a tremendous boost. The best way to create productive interdependence is to build a Power Team.

Continue reading "Fuel Your Investing Business with a Strong Power Team (Part 1)" »

Posted 10:42 AM | Permalink | Comments (0)

Recently I received the monthly newsletter of a real estate agent I know in Orlando. In his introduction, Jerry Stoffer wrote:

The present real estate market is one in which both Sellers and Buyers are fearful. In fearful times, we look to sources of inspiration that may be available to us from the history of mankind. I was comforted by the Prophet Jeremiah, in the Old Testament, who prophesied accurately the loss of Jerusalem to the Babylonian King Nebuchadnezzar.

And it did.

Posted 02:13 PM | Permalink | Comments (0)

Even though many parts of the country are seeing sales of existing homes slowing, there is still demand for new construction. And remember that the real estate market cycles, so whether it’s up or down where you are right now, the one thing you can be sure of is that it’s going to eventually change.

If you have the opportunity to make a preconstruction investment, Jordan Taylor’s article, “Should You Buy Before It’s Built? How to Evaluate a Preconstruction Real Estate Investment,” will give you some guidelines as to the types of issues you should consider before making a decision.

Jackie

Posted 05:34 AM | Permalink | Comments (0)

When Robert Kiyosaki, entrepreneur and bestselling author of Rich Dad Poor Dad, spoke at the Wealth Intelligence Super Conference, he said that the audience was in the right place at the right time getting the education required to be a winner.

“Capitalism means there are winners and losers, and the uneducated are the losers,” he said.

With his characteristic humor and tell-it-like-it-is bluntness, Robert stressed the power of leverage, pointing out, “Real estate is the only investment my banker will lend me money for.” You can’t borrow money to invest in stocks, bonds, mutual funds, or other investments—but with real estate, banks and other lenders are only too happy to let you use their money to make yourself rich. The key to it all, Robert said, is to use your greatest asset: your brain.

Posted 10:00 AM | Permalink | Comments (0)

There’s an interesting article in the Orlando Sentinel about tax liens: “Whose land? Water can muddy the issue.”

The story focuses on a woman who built a dock between her backyard and a state-owned creek. An investor who purchased part of the land under the dock at a tax deed sale years ago is now saying she must either buy the land (a total of seven acres – far more than she wants or needs, for $50,100) or tear down the dock. She’s fighting.

This raises some key points about investing in tax liens and deeds.

• This is an area of real estate investing that can be lucrative, but you must know what you’re doing and be familiar with the laws of the area in which you’re investing.

• You should operate ethically and with integrity. Certainly protect your rights, but don’t try to extort people even if you can do it legally.

• If you acquire property through tax deeds, pay enough attention so that you know what’s happening on or near it.

• Did I mention know what you’re doing? Get training from qualified instructors. Check out our advanced training on tax liens and deeds.

Posted 06:23 AM | Permalink | Comments (0)

It seems that at least on a weekly basis I see local news stories about renters who lose much of their personal belongings because of a fire, flood, storm or other property damage that also damages their contents. Often the reporters will comment that building was insured but the contents were not, and they show heart-breaking images of tenants sobbing that they’ve lost everything they own. I’ll resist going off onto a rant about media bias and just make my real estate investing-related point here:

Encourage your tenants to get renters’ insurance to cover their furnishings and personal belongings. Be sure they clearly understand that you have insurance ONLY on the building and fixtures you own and that they are responsible for insuring their belongings.

Indicate this in your rental agreement and consider going the extra step of asking tenants to initial that particular clause. If you have a multi-unit building with a community bulletin board or newsletter, periodically put up reminders about insurance.

If you’ve dealt with this issue, what have you done to motivate your tenants to protect themselves with renters insurance?

Jackie

Posted 11:01 AM | Permalink | Comments (0)