Real Estate Investing


REAL ESTATE


INVESTING


Real Estate Investing: How to Make Money Buying & Selling Houses

Real Estate Investing
Online Home Study Course

Real Estate Investing Online Home Study Course
Click Here to Watch a Sample Video

Real Estate Investing
Real Estate Investing Blueprint
Finally! A Step-by-Step Blueprint
for Real Estate Investing Success.

Sign Up for a FREE Real Estate Investing
eCourse Delivered Instantly via Email


Skip to content

TV is Not Evil

Monday, March 31, 2008

Success pundits often point to the TV as the enemy but I don’t buy it. There’s no need to go out and take a baseball bat to the cathode ray tube unless perhaps you are in fact letting the television set get in the way of your success.

If the simple act of removing TV from your life would make you wealthy all by itself more people would probably do it but that’s not how it works. Sure, if you get off your duff and make productive use of the time formerly spent watching TV, you might become wealthy but there’s no guarantee on that and that’s also a BIG IF. We all know most people will just find another unproductive use for their time like useless Internet surfing or something like it.

On the other hand, too much TV can certainly block your road to success. Taking the whole bottle of prescription medicine in one day instead of taking one pill every morning as prescribed can kill you. Watching too much television won’t kill you as far as I know but it can kill your dreams of being successful.

What’s on TV tonight? I neither know nor care. I’ve got better things to do and I happen to be listening to a CD (Led Zeppelin). But if the Final Four was on tonight, what’s the difference between listening to a CD or listening to the TV? I would be doing something else constructive while not paying close attention to the game.

If you have a desire to make money on the Internet or in real estate investing and you spend more time watching television than you do learning how to make money then there are issues you must face. It’s time to ask yourself if you’re really serious or if you’re just saying that to make yourself feel better.

It’s perfectly acceptable to watch some TV from time to time but when you’re watching so much TV you don’t work toward achieving goals you’ve set, it’s time to make a decision. You’re letting the TV be the evil appliance success coaches love to hate. Maybe you should smash your TV and make more productive use of your time. But in the end that’s your choice.



Would you like to convert your personal computer into your personal cash register? If you answered “yes,” then you’ll want to visit the CyberCa$hology Blog to learn how to run a successful internet business

Tags: creative financing, lease/purchase

Popularity: unranked

Filed in Real Estate Investing | Comments (0) | PERMALINK

Negotiation Tactics for Dealing with Home Sellers

Monday, March 24, 2008

This is a true story of how I discovered an amazingly effective tactic for dealing with sellers by accident. At the time I was a fairly new real estate investor. I had already done a few deals so I wasn’t totally green but I was still learning. I had heard about a tactic called take away selling but had never tried it. It has proven to be a strategy I use with regularity these days. Here’s how it works.

To be most effective you have to be in a position where your business isn’t dependent on the next deal. You’re negotiating from a position of strength because your pipeline is so full of deals. You already know you’re going to by X number of houses this month, you just don’t know which ones. That’s the ideal position for any real estate investor.

I wasn’t always in that position. I used to chase deals and bend over backwards to try and make them all work somehow. I ended up buying houses I shouldn’t have bought and letting sellers jerk me around. That all stopped one day when I discovered this trick.

It started with a call from a frustrated landlord who owned vacant house that he was about to lose to foreclosure. Upon further review it wasn’t really a deal I’d even be interested in today but the owner agreed to let me try a short sale. He agreed to meet me at the house with his wife so we could fill out the paperwork.

He neglected to tell me that his wife was mad at the world and wanted to blame all her problems on whoever was standing in front of her at the time, which happened to be me that day. She even wondered aloud of I was really an identity thief preying on her and her husband. It wasn’t the first time a seller had been tough to deal with but this was worse than usual. I decided it was time for me to get out of dodge.

When she stopped blowing hot air, I took a deep breath looked her in the eye and said something along the lines of: “You know the only reason I came is because your husband invited me. I’m not the one who caused the situation but I have a solution that might solve the problem. However I can only help people who want to be helped. And if actually was an identity thief don’t you figure I would be smart enough target people with good credit? Sorry I couldn’t help. I wish you the best of luck.”

My intention really was to leave but before I took two steps towards the door, she said “OK, I’ll sign the papers.” Fortunately I was facing the other direction and couldn’t see the stunned look on my face. I had accidentally discovered the amazing power of take away selling.

An outcome similar to this is not uncommon, but take away selling doesn’t work every time. So before you try it you need to understand that you really do risk losing the deal. If the seller let’s you walk out the door without giving in then it’s over. You’d be a fool to go back and try to negotiate a deal at that point because you’ve given all the power to the seller and you won’t get a good deal.

But if the seller is motivated enough that they won’t let you “take away” the solution to their problem, then you’ve suddenly turned the tables. You have taken control of the situation and the deal ought to be done in short order. Try it. It works wonderfully.



What’s the best way to find MOTIVATED sellers? Discover that & many more proven real estate investing tips, tricks, & tools at the Real Estate Blog

Tags: creative financing, subject to

Popularity: unranked

Filed in Negotiation | Comments (5) | PERMALINK

The Goddess of Good Luck Shines On People Who…

Monday, March 17, 2008

Years ago, I read “The Richest Man in Babylon.” It shares many great “Babylonian parables” about wealth. It’s a short book you could probably read in an hour or two and if you haven’t read it yet, you should. It’s full of proven wealth creation principles but there’s one in particular that resonated with me and that I always remember. It’s on the bottom of page 56 and it says:

“Men of action are favored by the Goddess of Good Luck.”

Women of action are most certainly favored by the Goddess of Good Luck too…a sexist I’m not. In any event, it’s not the God of Good Luck. It’s the Goddess of Good Luck and those are the words from the book.

The truth is that all the losers in the word will sit on their butts and whine about how unlucky they are. If they would just get of their seat and make an effort to improve their situation, they’d discover how wrong they are.

Luck is when preparation meets opportunity. And we are surrounded by opportunity…so much opportunity that it’s not possible to even take advantage of all the opportunity. But those who are not prepared to meet opportunity wouldn’t recognize it if it poked them in the eye so it’s not likely they’ll ever get “lucky.” They’ll just complain day after day as they watch others get “lucky” and unless they take action to prepare themselves to recognize opportunity that surrounds them, the cycle repeats itself until they die…probably broke.

All they really need to do is model successful people and they could achieve the same results. They could simply ask a successful person they know or they could read books at the local library about the lives of successful people and notice the commonalities. Both of these methods are free.

According to Woody Allen, half of success if just showing up. I think he’s right. A carpenter named Harrison Ford had a goal to become an actor and many might think his success is a bit “lucky.” The truth is that he is a man of action and as you know the Goddess of Good Luck favors men who take action. He wasn’t lounging around watching TV dreaming. He got off his butt and started hanging out at places where actors get hired. Not surprisingly he found work as an extra. That led to a bit part in American Graffiti which led to a starring role as Han Solo in Star Wars. The rest is history.

If you want to make money online and don’t even have a website, one has to wonder if you’re really serious. There’s no magic pill or potion. Success starts with a simple decision to take action. Sites like blogger.com and wordpress.com allow you to create a blog for free. And if you’d prefer to have your own personalized blog, you’ll be interested in the step-by-step videos at CreateBlog2Day.com



What’s the best way to find MOTIVATED sellers? Discover that & many more proven real estate investing tips, tricks, & tools at the Real Estate Blog

Tags: preforeclosure, creative financing

Popularity: unranked

Filed in Real Estate Investing | Comments (2) | PERMALINK

5 Magic Questions Every Real Estate Investor Should Ask

Tuesday, March 4, 2008

The ability to quickly separate the motivated sellers from the time-wasters is a valuable skill that will save you time and frustration. That’s exactly what the MARLA formula is designed to do. M is for Motivation. A is for ARV (after repair value), R is for Repairs, L is for Loan balance, and A is for Asking price. The 5 magic questions are:

1. What’s your reason for selling the house?

2. How much is the house worth?

3. Does the house need repairs?

4. What is/are the current loan balance(s)?

5. What’s your asking price for the home? Follow-up: Would you accept a lower offer?

Now that you know that questions, let’s look at why you’re asking them.

“Why are you selling the house?” reveals MOTIVATION. If the answer is indicative of a MOTIVATED SELLER, that’s a good sign. If the seller shows no sign of motivation, then it’s your call. I figure I’ve got them on the phone so I may as well get answers to my other four questions and make an offer, but that’s me. Some sellers withhold information until you build rapport, then they’ll spill the beans that they’re MOTIVATED. Be patient.

“How much is the house worth?” gives an indication of the home’s market value. Most sellers have some idea of how much their house is worth. Of course you should do your own due diligence before actually buying the house, but for now you can just go with what the seller says. If the seller doesn’t know what the house is worth, you may be able to get a good deal. Ignorance is expensive.

The third question will give you an idea of what needs to be done to bring the house up to market condition before selling it. If the house does need repairs, make a list of what needs to be done. Have the seller give you an estimate. Often the seller will give you a high figure that you can use to your advantage.

To find out about the existing financing on the house ask, “What’s the current loan balance?” Don’t be afraid to ask. MOTIVATED SELLERS will tell you. If the seller won’t tell you, then s/he is not motivated and you can move on.

The final question gives you the seller’s asking price. It’s a good idea to ask a quick follow-up question to see if the seller is being truthful. It’s amazing how quickly sellers will drop their asking price by thousands of dollars in seconds.

It’s possible you’ll have enough information to make any offer at this point. At the very least you’ll know if you’re dealing with a motivated seller or not. The next could be a few strategic follow-up questions or formulating an offer which is the subject of another article.


Are you tired of all the conflicting information you read in books? Wouldn’t it be better to learn from someone who’s actually made money investing in real estate?

Tags: real estate investing, creative financing

Popularity: unranked

Filed in Real Estate Investing, Filter Motivated Sellers | Comments (15) | PERMALINK

Are You Using the Power of Leverage?

Monday, February 25, 2008

If you’re using your money and/or your credit by real estate, you might want to reconsider. Ultimately it’s a personal decision. There is no absolute wrong or right but there is a right answer for YOU. But unless you have more money than the US Treasury, you’re eventually going to reach a point where you can’t buy any more real estate.

If you’re using your credit to take out mortgages to buy real estate, all these loans will be on your credit report and eventually lenders will refuse to loan you more money. It could happen after buying a few real estate investments or it could happen after buying dozens of houses but that day will eventually arrive.

Anyone who puts multiple mortgages in their name is risking their credit. What if something happens and you find it difficult to make timely mortgage payments one month? Lots of investors thought they’d never find themselves in that situation only to find a trashed house and missing tenant who obviously isn’t going to pay the rent. Many have earned their Ph. D. from the school of hard knocks and it’s not pretty. Are willing to risk that scenario?

Smart investors favor the practice of buying house “subject to” the existing financing. You’d be wrong if you thought there weren’t plenty of people near where you live who would be willing to have you solve their problem buy taking over the mortgage payments on their loans. Finding them isn’t all that difficult either. “Subject to” financing allows you to bypass the challenges of working with lenders and use the power of leverage using other people’s money (OPM) to build your real estate empire.

Buying houses “subject to” has many advantages but perhaps the best reason is that you’ll never even have to speak to a loan officer or have your credit checked. Learning to use creative real estate financing techniques has its advantages. Ultimately the financing methods you chose to use are a decision for each individual investor to make but if you want to learn how to buy real estate “subject to” along with many other creative techniques to find motivated sellers, make offers that get accepted, and sell the house quickly you’ll be interested in my Real Estate Investing Online Home Study Course.



Real Estate Investing made simple. Discover the 6 simple steps to successful real estate investing

Tags: owner financing, real estate marketing

Popularity: 41%

Filed in Real Estate Investing | Comments (0) | PERMALINK

Real Estate was a Good Investment Last Year, but…

Wednesday, January 9, 2008

What about this year?  All the good deals are gone, right?  You’d have to be a fool to buy real estate in this market, wouldn’t you?  Hardly.  There are ALWAYS good deals in EVERY real estate market.  And there are always ignorant fools who make bad investments and spread the gloom & doom gospel.  That’s great news for savvy real estate investors.

First of all let’s differentiate between an investor and a speculator as it pertains to real estate.  A speculator is someone who pays market value and risks their credit on a mortgage based on the speculation that the value of the property will rise over time.  That’s what ignorant fools consider real estate investing.  Ignorance is bliss.

True real estate investors make money the day they buy real estate or they don’t buy…period.  They are not speculators and they do not risk their own credit by taking out mortgages.  Today’s speculators are tomorrow’s motivated sellers.  It’s been proven time and time again.  With all the investment opportunities and creative real estate techniques available today, it simply is foolish to pay market value and/or get a loan from a bank.

There are a few key concepts that savvy real estate investors understand.  First, they know their exit strategy BEFORE they buy an investment property.  In fact, the exit strategy influences the offer.  Secondly, smart investors have rigid goals.  Different strokes for different folks but one example might be buying a house at 75% of ARV (After Repaired Value) with no money out of pocket within a specific geographic area.  And they don’t stray from those rigid standards.  They don’t let emotions influence their decisions and get “dealitis” which is a recipe for disaster.

But I can’t find houses at 75% of ARV, you say.  Well if that’s the case, you’re not dealing with motivated sellers.  With the rapid rise in foreclosures and the short sale techniques available, it simply is not difficult to adhere to the rigid standard of buying houses at 75% of ARV or less.  In fact, many investors will go lower than that to something like 70% or less.

The bottom line is this:  Savvy real estate investors will ALWAYS find good deals in EVERY market.  We love the doom & gloomers who spread the word about how difficult it is to make money in real estate.  We might even bail them out and buy a house from them now and then.  Are you an investor or a speculator?

Tags: rent-to-own, foreclosure

Popularity: unranked

Filed in Real Estate Investing | Comments (0) | PERMALINK

2 Million Foreclosures

Friday, June 15, 2007

Experts are predicting over 2 million foreclosures in the next few years. Are you ready to capitalize on all the good deals that will be available across the nation.

Subprime mortgages will be the biggest factor causing the foreclosures according to the article. What are you doing to capitalize on this opportunity.

My real estate investing online home study course shows you step-by-step how to make money buying and selling real estate in nearly 3 hours of instructional videos including some real life examples of deals I’ve done.

The course is normally $53 here: Real Estate Investing Online Home Study Course

but for a limited time you can get for only $15 here: $15 Real Estate Investing Online Home Study Course that link won’t be live forever though so don’t say I didn’t warn you if you come back later and the deal is over.

Tags: real estate marketing, creative financing

Popularity: 100%

Filed in Real Estate Investing, Foreclosures | Comments (0) | PERMALINK

Real Estate Investing Action Item #6

Thursday, June 7, 2007

Don’t let the fear of not knowing where the money’s coming from stop you from making offers with confidence.  As you can clearly see, if you find a good deal, the money will follow.  Now go make some offers.

Ask 20 friends and associates “Do you have any retirement funds or other investment capital that’s not earning you a 10% return safely?”  I’ll bet you find some money to fund your real estate deals.

Popularity: 76%

Filed in Real Estate Investing, Fund Deals with Private Money | Comments (0) | PERMALINK

Private Lending Made Easy

Tuesday, June 5, 2007

You can also use any combination of the techniques we’ve covered over the last several posts. The only limit is your imagination and creativity.

The main point you should take from all this is that if you find a good deal, it won’t be difficult to find the money. Finding the deals is harder than finding the money. To review, the five sources of capital we discussed are:

1. Sellers

2. Private Lenders

3. Partners

4. Hard Money Lenders

5. Credit Cards

Alan Cowgill has an excellent course “Private Lending Made Easy.” I have it and have personally used the information in it to find Private Lenders to fund my deals. For more information please visit:

Don’t let the fear of not knowing where the money’s coming from stop you from making offers with confidence. As you can clearly see, if you find a good deal, the money will follow. Now go make some offers.

Popularity: 82%

Filed in Real Estate Investing, Fund Deals with Private Money | Comments (2) | PERMALINK

Real Estate Investing: Using Credit Cards

Sunday, June 3, 2007

The last source I’ll discuss is credit cards. I know that goes against the advice of every consumer advocate that walks the planet, but let’s do some simple math shall we?

Let’s say you find a house with an ARV of $100,000 that needs $10,000 in repairs. You pay MAO, $60,000, which is too much to begin with. You put $70,000 on several credit cards at 18% interest. You take six months to rehab and sell the property. And your
holding and selling costs amount to 15% of the sales price of $100,000, which is higher than normal.

Let’s look at the numbers. First of all you did everything wrong. You paid too much, you took too long to sell, your selling and holding costs were too high, and surely you could have found a credit card with a lower interest rate than 18%. But when it’s all said and done, you still made $8,700 in six months.

$100,000 sales price
(15,000) selling & holding costs
(70,000) payoff credit card balance
(6,300) 18% interest on $70,000 for 6 months
————–
$ 8,700 profit

If you don’t have $70,000 worth of credit on your credit cards, you can bring in a partner or partners. Don’t throw away those credit card applications you get in the mail. Build up your line of credit so you can use it to make money in Quick-Turn Real Estate.

By the way, that’s not a good deal in my opinion. It was for illustrative purposes only. You’ll have to decide what your minimum profit is, but you should leave yourself enough room so that if the worst-case scenario unfolds you still won’t lose money. Plan for the worst-case, then work towards the best-case.

Popularity: 76%

Filed in Real Estate Investing, Fund Deals with Private Money | Comments (0) | PERMALINK
‹ Older posts

    Top Commenters

    Real Estate Investing with Robert Phillips

    Real Estate Investing Resources

    Real Estate Investing
    Online Home Study Course

    Real Estate Investing Online Home Study Course
    Click Here to Watch a Sample Video

    Real Estate Investing Blueprint
    Real Estate Investing
  • Popular Posts

    • 2 Million Foreclosures
    • Private Lending Made Easy
    • Real Estate Investing: Using Credit Cards
    • Real Estate Investing Action Item #6
    • The Carnival has arrived...
    • Real Estate Investing: Hard Money Lenders
    • Real Estate Investing: Partners
    • Private Lenders
    • Seller-Financing
    • Creative Real Estate Financing
  • Categories

    • Real Estate Investing
      • Filter Motivated Sellers
      • Find Motivated Sellers
      • Foreclosures
      • Formulate Offers
      • Fund Deals with Private Money
      • Negotiation
  • Archives

    • March 2008
    • February 2008
    • January 2008
    • June 2007
    • May 2007
    • April 2007
    • March 2007
    • 0
  • Blogroll

    • Directory
    • Directory
    • Resources
    • Tools
  • RSS Feeds

    • All posts
    • All comments
  • Meta

    • Login
© 2008 RealEstateInvesting123s.com & Robert Phillips - All Rights Reserved