http://blog.mypocketdeals.com/206Residential real estate Investor,Commercial real estate Investor, New Yorkhttp://www.mypocketdeals.com/theme/standard/logo.jpghttp://blog.mypocketdeals.com/206http://blog.mypocketdeals.com/detail/id/6/establishing_the_value_of_your_investment_property.html2009-11-16 20:11:21Its extremely important to establish the value of an investment property prior to making your offerYou must know the true value so you can determine what you should offer to tire the property in the purchase contract You must base your offers on what the house will sell for after you complete all necessary repairs Its always better to underestimate the after repair value than overestimate Remember to learn your first and buy in your farm area when possible Always take a conservative approach until you gain experience in dealing in a particular market Start with a few neighborhoods within a subdivision that contains similar houses for dealing with similar houses makes price comparisons much easier http://blog.mypocketdeals.com/detail/id/7/doing_your_own_appraisals.html2009-11-18 18:24:01Doing your own appraisal is not that difficult as it may seem All you need is to have an access to information about recently sold properties no more then 6 months old Until now access to this information was limited to licensed realtors through a database called Multiple Listing Service or MLS If you can get an access to your local MLS it would make your estimates much more accurate since you will be able to see real market data If its not feasible you can still find needed data through various other channels such as the county tax assessor the internet and paid providers such as PropertySharkcom and Dataquickcom Armed with the information about these sold properties you can drive by these houses and compare them with your subject property Keep in mind a few things You will not de able to see the inside of the property so adjust your numbers to be more conservative Also public records often contain inaccurate information about square footage bedrooms and bathrooms and so on However you still will be able to access the size of the lot style of the property whether or not it has a garage as well as its general appearance and condition You should also get the information about the type of financing was used when the property was sold For example owner financing or owner-carry sale should not be considered because these prices tend to be over inflated http://blog.mypocketdeals.com/detail/id/11/how_to_create_your_winning_profile__attract_a_constant_flow_of_new_leads.html2010-01-03 18:47:36Today I want to discuss how to setup and create your profile which will make your visitors want to read your entire bio and click over to your property listings or contact you regarding great investment opportunities Understand that your profile is how you are going to create that personal connection with your prospects and build your credibility in their eyes Your fellow members are going to see your deals or respond to your contact request and its only natural that they want to know more about you At that point if all they see is one lame paragraph in About Me and About my business sections a fuzzy picture and very few or no friendscontacts what kind of first impression are they going to get First impressions are everything You cant screw this upCreating Your Winning Profile FormulaSo heres what you should pay attention to when creating your profileMain Profile Picture Use a professional and cool looking picture for your profile Remember you are a business owner a leader and an example to follow look like one You will be judged by your picture more than anything else at first glance and it will either send the right message or the wrong message There is no in betweenAbout Me Tell your personal story be genuine Tell people about your struggles and your victories Think of this as your personal sales letter which is selling you as a friend and a business partnerAbout my Business Describe your specialties what deals you are working on and type of investment opportunities you are interested in pursuing This is your chance to tell other members what connection you would like to make and quite frankly its totally cool to blatantly pitch your business in this section Contacts If someone is checking out your profile and sees that you have just a few friends theyre going to think Either this person isnt very active on this site or in the industry in general Or that youre a newbie and you just dont know anyone Introduce yourself to others in this community send them a private message and connect with a contact request You absolutely must Be Social Rewards and of course the more active you are in referring your friends and colleagues to our community the more points you will rack up for yourself This will benefit you in two ways one the more contacts you have the more others will see you as a credible and active member of our community and two you can redeem you points to feature your properties Featured Listings appear on the top of search results and get the most exposure in our communitySo thats our quick overview on creating your winning profile To get started head over to MyPocketDealscom I look forward to checking out your profileshttp://blog.mypocketdeals.com/detail/id/21/80_-_20_baby_by_christian_russell.html2010-01-19 03:53:39Hi everyone I have stumbled upon a great article about time management We all wish we had an extra hour or two a day Here is a useful tip how to make it happen ------------------------------------------------------------------------------------------Weve most likely all heard of the Pareto principle The law of 80-20 Also known as the law of the vital few and the principle of factor sparsity It means that very few things are responsible for most of what we see out there Of course we see this in business every day There are the top performers in any business who seem to attract all the success and then theres everyone else Why are some of us highly effective while others of us struggle to get even small results There are answersDo What WorksThe 80-20 rule is not just an observation of how the world works its also a business strategy Its a strategy very few of us follow If I had to guess Id guess that 20 of business owners follow it and theyre the ones who get 80 of the results Oddly enough following the 80-20 rule puts you into its favor Test it and see how it works for youTo get the results of a high achiever you must do what works You must do what gets results This seems logical enough right Yet when you look closely so few of us follow this basic business principle We do some things that work and we also do a lot of other things that dont work Have you ever had a day where you spent running around like a crazy person and at the end of the day youre exhausted yet you didnt accomplish hardly anything Thats what Im talking about Thats not effective Thats what it feels like when you spend time on the 80 of crap that only gets 20 of the results Weve all done itI see businesses all the time that have a lot going for them but theyre so bogged down in minutia that they can barely function It they simply stripped themselves free of all the junk thats wasting their time and did more of what worked they would explode As we all know working hard is not the key Were in agreement on that right Its about getting results Sometimes you need to push yourself and there is value in that but at the end of the day the world doesnt care if youre exhausted or notit only wants to know if youve made a difference Thats all that mattersA Few Examples of 80 Time Wasting in Action Are you spending time working with clients that beat the crap out of you every day Are you doing more jobs for customers who havent paid you for the first job Are you spending time on the phone working old leads that never call you back Are you still spending 1500 a month on that print ad How many calls is it bringing in Have you checked Are you allowing yourself to be interrupted with calls throughout the day to deal with mundane stuff that doesnt grow your business Are you checking your email 20 times a day Do your agents salespeople employees etc have to go through you for every single little thing Do you have to approve for example an order for more post-it notes before it can be taken care ofThe preceding are all examples of 80 stuffthe stuff that only gets a small result if any Yet it requires the bulk of our time What would happen I know its a radical idea if you just stopped doing it What would happen if you empowered your people to make decisions on their own maybe if you cant trust em to order post-it notes they shouldnt be working for you What would happen if you just spent your time focusing on building and streamlining your business What if you took all those old leads that never call you and you just put them on a responder campaignWould the world implode Not likely In fact those horrible clients that beat you up would probably stop working with you How nice would THAT be I bet the post-its would get ordered just fine dont you thinkCan you imagine how much time could be freed up Can you imagine how many resources could be freed upif you only freed them up What are you doing now thats not getting resultsA Proposed SolutionI propose simply stopping the stuff in your business that youve been grinding away at thats not producing a discernible meaningful result Instead focus on the 20 thats getting the results Do more of THAT and nothing else Its easy to think more sales more systems more ads more more more is always the answer But the fact is that no matter how many people you hire if theyre working on stuff that sucks youre wasting your money More isnt always better Sometimes simply focusing on the 20 will let you see where your business is REALLY at Maybe youll see you actually have enough time to enjoy yourself a bitor start another business with all the time you save What do you think-------------------------------------------------------------------------------------------------Check out more great articles by Christian Russell on his blog textNextBloggercomtexthttp://blog.mypocketdeals.com/detail/id/22/personal_guarantees_and_private_money_-_yes_or_no_by_adam_davis.html2010-01-19 18:20:54Should you ever personally guarantee principal or returns to a private investor This question vexes many real estate investors from the green newbies to the most experienced and savvyIll admit I wrestled with this one a bit myself when I began bringing private money as my exclusive financing sourceWhen you work with private investors you have to be flexible while also sticking to your business model and deal parameters There is some wiggle room but not much once you begin down a particular path For instance if you are flipping single family houses there are a few deal structures that work better than others and you have a ceiling on what the private investor can make based on the profit marginsadam-davis-private-money-guaranteedWhere Guarantees Come Into PlaySince there are two types of private money investment private money loan or private equity investment the subject of personal guarantees is relevant only as it applies to loans By its very nature an equity investment is an at risk investment and most people know that when you buy 1000 shares of GE nobody is guaranteeing your principal or returnFear not however There are many ways that you can structure real estate investment deals with equity investors so the investors principal is protected in many cases better than a loanPersonal Guarantees apply to private loans - where a private investor loans you money at a specific interest rate for a set period of time Usually a private money loan is going to be secured by a mortgage or trust deed so the private lender can foreclose and sell the property to recoup their investment if you dont pay them backMost banks and mortgage companies require you to sign a personal guarantee when you borrow money from them The reason for this is the lender wants to put you on the hook for any money you dont repay that cannot be recouped if the property is sold at foreclosure Heres how it works in the eyes of the bank or mortgage companyYou borrow 200000Bank forecloses and nets out 175000You are personally liable for 25000The personal guarantee you sign with the lender means that you must pay back that 25000 or they can come after your personal assets While this seems scary to many real estate investors there isnt much you can do about it if you are the one borrowing the money -its either sign the personal guarantee or walk away from the dealWhen the investment project gets bigger such as with commercial deals the bank or lender may write a non-recourse loan The non-recourse loan means you are not personally guaranteeing anything on the note - the only collateral or recourse the lender has is the property itself Non-recourse loans are more common on larger commercial and multi-family deals - you wont see them with residential loansThis brings us back to the burning question should private money loans be non-recourse Should you personally guarantee a private lenderMy answer can only be based on my experience it depends on the deal the lender the situationWhen I first started with private money loans I would sign a personal guarantee for the principal amount I set up the deals the same way that I would if I was a bank The lender got a note mortgage and personal guaranteeDid this make me nervous Not a bit If the deal was as good as I was telling my private lender it was then I should have no problem treating them the same a bankFor some deals you are going to be personally guaranteeing your private money loans Others you wont If your lender is OK with no personal guarantee some lenders will invest money with you without a mortgage as well then you can move on without worryAs I grew in my business on the residential investment side I was able to get better and better deals and demonstrate to my private money lenders that there was sufficient equity in the deal so that personal guarantees were not necessary Some of them still asked for one and I would sign with no problem If the deal isnt good enough for you to sign that guarantee to the private lender you should re-think itadam-davis-private-money-handshakeThat being said some situations do not lend themselves well to personal guarantees If the private investor wants to share in the profits and up-side of the deal then you shouldnt be signing a guarantee In this case the investor is essentially moving from lender status into partner status Partners share in the risks and rewards of an investment deal It isnt fair for you to give up part of your lucrative profits on a real estate investment and then if things dont go right you have to be personally liable for the loanMoving Away from GuaranteesWith the way I set up my deals now I dont personally guarantee any principal or return on investment While this may sound blasphemous consider that Ive gotten more private money with equity deal structures that with loans There are ways to protect investors so they feel good about the deal and so youre not on the hook personally Using these strategies has enabled me to be more flexible in my business and take advantage of greater opportunities Ill go into the specifics in a later post but you should keep in mind the followingif youre telling the private lender that they are going to be the bank then you shouldnt treat them any differently than you would a bankOperating like this will bring you a lot more private money for your deals - its win-win all the way around ----------------------------------------------------------------------------Check out more of Adams articles at UltimatePrivateMoneycomhttp://blog.mypocketdeals.com/detail/id/36/how_to_find_private_money_to_fund_your_deals.html2010-01-31 14:55:52Here is an interesting article by Brian Haskins of Wholesalerichescom that might give you an idea or two about where you can find money to fund your deals----------------------------------------------------------------------------------------------The top 5 tips to find private lenders so you can find unlimited fundsFirst of all let me start out by saying that if you are wholesaling you should not need to ever look for money because you are not ever buying the properties I understand some of you are doing short sales and rehabs and lease options where it requires you to sometimes have the need to fund a dealFor those of you that dont know what private investors are they are people that will loan you money on your deals without attaching it to your credit or even checking your credit in most cases This way you can borrow unlimited funds at one time and never have to worry about going to a bank In most cases borrowing the money from a private lender can be much cheaper than a hard money lender and in most cases you can negotiate your own termsI pulled the following top 5 ways right out of the bonus section of my Ebook Wholesale to Riches which you can get at WholesaleToRichescom1 Marketing There are all sorts of effective ways you can get the word out that you use private money for real estate investing Some of the more popular postcards flyers door hangers Free classifieds signs newspapers even radio and TV Your target audience are older people close to retirement or people that invest in the stock market and have recently experienced a loss These people are going to want to invest in something solid such as real estate so its a perfect fit2 Hold your own Seminars Many courses have been written on using free seminars to find potential sources of private money for real estate investing Gather them all in a room and go over what you are looking for in a power point presentation Remember to make this all about how you can help them by making them lots of money3 Your own retirement funds Make sure that when youre looking for private money for real-estate investing you consider your own retirement savings suchas 401k and IRA accounts Consider rolling over into a self-directed IRA You cant lend to yourself but you can with others and they can lend to you4 Ask Family Dont overlook your relatives You never know who might be sitting on some money that isnt earning much in the way of return Putting that money to work in real estate investing will benefit both you and your family member Be careful with this one as you dont want to ruin a family relationship5 Friends and other professional relationships Make sure everyone you know is aware of your investing activities and knows that you use private money for estate investing That way they just might let you know that they have some money they would like you to invest on their behalf Its got to be better than the stock marketThis is just the tip of the iceberg on what I cover Finding private lenders is the topic of conversation lately among all investors Make sure to get all the info at WholesaleToRichescomI also recently heard that 1 out of every six people have the ability to be a private lender for you Think about that Most people have a retirement fund of some sort and they have all taken a beating in the stock market lately so its a perfect match You just have to approach themTo Your SuccessBrian Haskinshttp://blog.mypocketdeals.com/detail/id/40/forget_the_banks_use_the_master_lease_instead.html2010-02-04 04:09:54by Peter Harris The Apartment ConsultantLets learn how to creatively finance our commercial and large apartment deals despite the big banks being super stingy and thumbing their noses at our deals no matter how good they are Not everyone has 35 down payment money perfect credit and millions in net worth But that is whats needed to get a decent loan today for good-sized deals So how do we get around this you say With a Master Lease thats how We dont need no stinkin banksHere are key words and phrases to watch out for when looking for properties primed for the master lease technique When you see these jump on the opportunity quickly owner motivated seller financing owner will carry master lease option creative offers welcome bring all offers JV partner wanted investor wanted Master lease agreements have been around for centuries Think of a master lease as the lease with an option to buy principle over a property The lease option term is usually slated for single family homes but for apartments and commercial property it is typically referred to as a master lease agreementIn simple terms you will buy the sellers property by giving him a small or none down payment in exchange for all rights and privileges of owning and operating the property without legal title changing hands At close you get equitable title not legal title You are entitled to the propertys cash flow above the master lease payment all future equity tax benefits and day-to-day management Because your price and terms are set all of the upside is yours keep The more efficient you are the more you make As you increase the NOI the propertys increase in value becomes yours All the seller gets is a monthly payment from you on the interest of the difference between the lease agreement price and what he owes Once you sell the property every dollar over the lease agreement price is your profitIn simpler termsThe Seller Getseasy sale of the propertylease payments on the equity of the property paid every monthfreedom from involvement in the operation of the propertyThe Buyer Getsa purchase involving no banks or lenders or appraisalall cash flow above the lease paymentan option to buy at a pre-fixed price within a set period of time no matter how much the property value has increasedall profits above the master lease agreement priceMaster lease advantagesno banks requiredyou and seller can get as creative as you want on the deal termsquick closing low closing costs closing as quickly as 7 daysseller can generate good interest income per monthbuyer can create a good amount of cash flow and equity build-upMaster lease disadvantagesforeclosure by seller is easy if buyer does not perform per lease agreementit may trigger a due-on-sale clause on the sellers existing mortgageseller may not perform his end of the agreementMaster lease must haveshave an attorney create the master lease agreement Real estate law and contract law differ by state Do not use master lease agreements purchased online or from office supply storesperform a title search to make sure the title is clear and there are no liens or understand what liens do existengage the services of a holding company to retain possession of an executed deed and the original documentsrecord the master lease agreement against the propertyget an appraisal a razor-sharp exit strategy thought out well in advanced It should be conservative with minimal to no speculation based on sound research and counselto ensure that the mortgage and taxes are paid on time have a third party pay them eg title co or another type of disbursement companyHere is the secret to doing creatively financed deals no matter how large or smallASKhttp://blog.mypocketdeals.com/detail/id/41/this_information_will_protect_you.html2010-02-04 04:16:20You cant do squat in todays world without good credit This morning I found a pretty interesting article in my inbox and wanted to share it with every one Here a list of simple steps you can follow to prospect your credit and yourself from a nightmare of ID theft In CB-United we feel its important to help other people gain awareness in all avenues of life for this reason let me forward some very helpful lines about identity theft right here A close friend of mine has a corporate attorney friend who sent the following out to the employees in his company Its worth reading and doing 1 The next time you order checks have only your initials instead of first name and last name put on them If someone takes your checkbook they will not know if you sign your checks with just your initials or your first name but your bank will know how you sign your checks 2 Do not sign the back of your credit cards Instead put PHOTO ID REQUIRED 3 When you are writing checks to pay on your credit card accounts DO NOT put the complete account number on the For line Instead just put the last four numbers The credit card company knows the rest of the number and anyone who might be handling your check as it passes through all the check-processing channels will not have access to it 4 Put your work phone on your checks instead of your home phone If you have a PO Box use that instead of your home address If you do not have a PO Box use your work address Never have your SS printed on your checks DUH You can add it if it is necessary However if you have it printed anyone can get it 5 Place the contents of your wallet on a photocopy machine Do both sides of each license credit card etc You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel Keep the photocopy in a safe place Also carry a photocopy of your passport when traveling either here or abroad We have all heard horror stories about fraud that is committed on us in stealing a name address Social Security number credit cards 6 When you check out of a hotel that uses cards for keys and they all seem to do that now do not turn the keys in Take them with you and destroy them Those little cards have on them all of the information you gave the hotel including address and credit card numbers and expiration dates Someone with a card reader or employee of the hotel can access all that information with no problem whatsoever Unfortunately as an attorney I have first hand knowledge because my wallet was stolen last month Within a week the thieves ordered an expensive monthly cell phone package applied for a VISA credit card had a credit line approved to buy a Gateway computer and received a PIN number from DMV to change my driving record information online Here is some critical information to limit the damage in case this happens to you or someone you know 1 We have been told we should cancel our credit cards immediately The key is having the toll free numbers and your card numbers handy so you know whom to call Keep those where you can find them 2 File a police report immediately in the jurisdiction where your credit cards etc were stolen This proves to credit providers you were diligent and this is a first step toward an investigation if there ever is one However here is what is perhaps most important of all I never even thought to do this 3 Call the three national credit reporting organizations immediately to place a fraud alert on your name and Social Security number I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name The alert means any company that checks your credit knows your information was stolen and they have to contact you by phone to authorize new credit By the time I was advised to do this almost two weeks after the theft all the damage had been done There are records of all the credit checks initiated by the thieves purchases none of which I knew about before placing the alert Since then no additional damage has been done and the thieves threw my wallet away this weekend someone turned it in It seems to have stopped them dead in their tracks Now here are the numbers you always need to contact about your wallet and contents being stolen 1 Equifax 1-800-525-6285 2 Experian formerly TRW 1-888-397-3742 3 TransUnion 1-800-680-7289 4 Social Security Administration fraud line 1-800-269-0271 We pass along jokes on the Internet we pass along just about everything So dont stop now Pass this on Best Brian F di Caprio Founder of CB-United http://blog.mypocketdeals.com/detail/id/42/get_all_your_deal_done_with_money_partners_by_peter_harris.html2010-02-06 15:04:19A few months ago I was turned onto a great apartment rehab deal It was a slam-dunk in my opinion a no-brainer After tying up the deal and doing some due diligence I came to a shocking realization My money partners that I used for years and years were gone Some were just plain scared of the times we were in Some had financial losses from their businesses and from the stock market To make a long story I ended up closing on the deal eventually but it was the hardest money-raising endeavor Ive ever encountered And I was not alone After I shared my experiences with fellow investors they told me of similar stories some of which did not turn out as good So I consider myself starting from square one on finding new money partners I like doing things together so lets do this as a team shall we Here are a few questions I started with myself See if they resonate with you tooQuestion when do I start looking for money partnersAnswer right now is the time You never know what deal may require a money partner Therefore always search or qualify and be on the lookout for money partners at all times Keep your money partner-finding hat on at all times Family get-togethers where their friends are invited is a good and friendly place to always toot your horn Whenever youre networking always be interested in whos sitting next to you Ask them what they do for a living so theyll ask what you do Once they do ask you this youre onQuestion what do I say if I were to run into someone thats a possible money partnerAnswer simple just say the following Hey Bob do you know of anyone who may be interested in this great real estate deal I have Thats how it all starts Youre not selling or pushing anything to Bob Youre asking for his help and people generally like to help other people Bob may answer you by telling you that he is interested personally or he may know of someone who may be like himselfQuestion what do I say if they ask me how much could they make on my dealAnswer by law you cannot promise them a certain amount or range or percentage All you can tell them is that it appears to be a great deal but every deal has risks Get their contact info at this point and follow up with them the next day with the deal details and specifics Once you follow up with them put your counselor hat on as opposed to your salesman hat No one likes to be sold Most everyone likes to be counseled Know the difference and it could make all the differenceQuestion I am a beginner and I have never raised money or asked anyone for money What should I doAnswer Question what is THE ONE most important thing in finding money partnersAnswer ASK You have to ask This is a universal principle Its quite natural to be nervous cautious and even intimidated in asking All I can say to that is You have not because you ask not In a later blog post Ill discuss how to prepare yourself to askPeter HarrisThe Apartment ConsultanthttpwwwTheApartmentConsultantcomhttp://blog.mypocketdeals.com/detail/id/52/you_want_massive_profits_and_cash_flow_go_back_to_high_school_--_by_peter_harris.html2010-02-15 10:42:43Every piece of real estate you have ever seen bought owned or drove by has a story attached to it And I know for a fact that incredibly large profits and gobs of cash flow lie in you pulling out the story from the property Heres what I meanIf you can ASK the exact questions theyre below to the seller or agent and LISTEN well youll put yourself in the position to1Reap bigger profits2Wring out extra profit centers3Negotiate like an insider4Uncover the elephants underneath the carpet during due diligence5Design a laser-sharp exit strategy6Be able to predict the futureyeah7Be able to KNOW exactly what youre buyingIf you recall during your high school days in English class you had to read and write short stories remember And short stories had the following pieces characters a setting a plot and a theme If you paid attention in class you would have remembered Anyways here are ten really good questions to ask to get to the nitty gritty details of a property before making an offer on it These are not difficult questions to ask and get answers for but they will tell you whole lot about the deal in a very short amount of time most likely in a single phone call This is standard MO for our team1 What upside do you see in this investment2 What type of deferred maintenance is there3 Whats the current occupancy And historically4 Why is the owner selling5 Is this an A B or C class property and location6 What utilities do the tenants pay and owner pay7 Are there any rent concessions given to the tenants8 How long has it been on the market9 What does the future of the area look like10 What would a good offer look likeAfter you get the answers to these questions take a deep breath and see if this deal still makes sense to you Youll need to answer YES to these questions belowaDoes this deal still meet my investment objectivesbAm I still excited about this dealcDo I have much better idea of what a good offer may look like nowIf you answered yes to all three then its time to go to the next stagemaking the offergulpIf you answered no to one of them then Id suggest looking at ways to make it a sweeter deal for you or consider passing on the dealWhatever the case by this time youll have enough info to write your own short story even if you slept during English classTill thenau revoirhttp://blog.mypocketdeals.com/detail/id/55/how_to_make_money_in_real_estate_as_a_small_investor.html2010-02-21 19:26:43Its smart to start off as a small investor in real estate One its easier to get into the game and your options are greater in number thats for sure And two its safer with less risk involved Lastly I guess the strongest part of the equation is that income and value seem to be more consistent and stableSome people have to start off small due to financial constraints or fear perhaps both While others start off small because they think its the wisest thing to do Smart moveThe Principle of Kaizen a Japanese technique for achieving great and lasting success through small steady steps has been around for years and phenomenally successful worldwide Its based on the concept of how you eat an elephant and the answer is one bite at a timeTo build a fortune in real estate requires years of being in the game adding to your portfolio one property at a time and taking territory inch-by-inch It will pay-off hugely in the long-term and the short-term as wellHere are 3 keys to making money in real estate for small investors1 Choose mastery Focus on one property-type at a timeTheres power and riches in focusing If you like apartments then buy apartments If your passion is in another type of property then do that Choose mastery Studies tell us that we can only master one subject at a time Two if youre exceptional Choose to be an expert in apartment investing only rather than just an average investor of apartments and another property-type Maybe choose to be the best in small retail strip centers Or perhaps be supremely knowledgeable in mobile home parks Whatever you do choose mastery2 Once you find your passion for a property-type study it like a mad-man Get your hands on books or ebooks go to seminars or webinars and hang out with people who are already doing what you want to do But by far the biggest bang for your buck is going to be hiring or interviewing experts in your field This will fast-track your knowledge level But heres the key when you are talking to these experts look for their patterns of success and their best practices And then do what they do The secret to making money as a small investor is duplication by replication Duplicate the experts habits of success and best practices and replicate it exactly thats the key Most of the how-to is there you now must do the work3 Start off with a small property and thats close by My first commercial apartment building was a quaint 7 unit building that was close by It was very affordable and I got great seller-financing A big plus was that it came with an established property management company at the helm My first small residential apartments were duplexes and four-plexes that were a few minutes from my house When youre first starting out as an investor there are lots to learn and there are lots of mistakes to be made Small property mistakes usually equals small pains Thats why its smart to start off with a small property Til next timePeter Harris TheApartmentConsultantcom http://blog.mypocketdeals.com/detail/id/57/how_to_keep_your_apartments_full__for_generations.html2010-03-01 05:09:31Here is another great article from good friend of mine Peter HarrisLast weekend I sat down with a 25-year veteran property manager and apartment leasing specialist I sat there and listened like a good student would I took a lot of notes and asked a lot of questions How often can I get the attention of someone so experienced and willing to share their wisdom so openlyThere are plenty of folks out there thatll teach you about how to find negotiate and buy apartments but very little is taught about how to keep your apartments full of paying tenants all the time In the Southwestern part of the US roughly 60-70 of apartments are turned over every year What I mean by this is that if you owned a 100 unit apartment building 60-70 of those units would have someone move in and then out within a year Thats a lot of move-ins and move-outs folks In other words only 30-40 of those units will have someone live there for more than one year Wow So that means you can never stop your marketing machine for replacement tenants Even if youre 100 occupied dont stop advertising because its highly likely that someone will be moving out in a few weeks Thats just the nature of the apartment business turnover is inevitableSo the question I had for my new friend was how do I keep my apartments full all the time Her answer was Peter you gotta know who youre marketing to Dont try to be a be-all do-all apartment owner Your complex is attractive to a certain tenant profile Market strongly and cleverly to them If your complex is near a university and is suited for students it makes no sense to market to baby boomers That makes perfectly common sense right That something that you and I already know rightThen all of a sudden all those years of leasing and marketing experience just started pouring out of her What I want to share with you today is just a small part but an extremely important one on marketing Its called Generational MarketingThere are three generational categories of tenants that every apartment owner should be aware of and understand when setting a marketing strategy They areGeneration Y Born after 1981Generation X Born between 1965 and 1980Baby Boomers Born between 1946 and 1964In order to market effectively to a generation you must find a way to grab their attention by using a message that resonates with them Here are top ways to get these specific generations you are targeting to show up for an appointment sign a lease and move inGeneration YThey crave praise and love instant gratificationThis generation grew up with a better lifestyle than any previous generationThey are multi-taskers and have been since childhoodGet financial help from their parents and grandparentsInformation driven if you dont give it to them they will find it somewhere elseText messaging is their acceptable way of communicating for answering questions or even making appointmentsYou need a web presence and be accessible or they go bye-byeThey dont like mass-marketing Theyll be gone in a heartbeat if you even tryGeneration XGen Xers are self-reliant and resourcefulThey do a lot of research on the internetThey know what they want and require less hand-holdingWant to live close to work and be close to good schoolsThe layout of the apartment is very important in terms of bedroom and bathroomsThey love media roomsGen Xers tend to be skeptical so you need to be prepared in advanceBaby BoomersBoomers love food travel fun fitness and entertainingThey like to work from homeThis is the generation of the prestigious country club communitiesThese are the most difficult customers to reach you have to try everythingSome still dont have computersThis makes a lot of sense to me and explains why early on in my career my brilliant marketing strategies did not work well Its because I didnt know the tendencies of the people I was marketing to Does this make sense to you I hope it does cuz itll save you thousands of dollars in marketing and in turnover I owe her a dinnerTil next timePeter Harris wwwTheApartmentConsultantcomhttp://blog.mypocketdeals.com/detail/id/61/invaluable_resource_for_your_success.html2010-03-10 20:19:24Two years ago I received a call from a colleague who explained that she and three other people were part of a Mastermind Group and one of the group members was moving out of state This created an opening they had all voted and I was their first choiceWould you be interested in becoming our newest member she asked Without hesitation I replied Absolutely In fact Im thrilled to receive your call Last year I added to my Treasure Map my picture board of the goals I want to achieve in my life that I wanted to form a Braintrust group where we work collaboratively to help each other think and strategize about business growth Two years later I am thrilled to report that our group has witnessed the birth of two new business ventures new business models two new books and a new baby yep little Lucy joined our group last November This Mastermind Group is the heartbeat of my business They understand my goals my challenges my successes and my failures They know whats in my heart what my talents are and how I can leverage these to help others Over timethey have become more than just members of my Mastermind Group they have become close friends an unexpected and cherished benefitWhat is a Mastermind GroupThe term Mastermind Group was coined by Napoleon Hill in his classic book Think and Grow Rich In it he defines Master Mind as the coordination of knowledge and effort in a spirit of harmony between two or more people for the attainment of a definite purpose He adds No two minds ever come together without thereby creating a third invisible intangible force which may be likened to a third mind I have been touched by this invisible force more than once and it has catapulted my sometimes disconnected ideas into a powerful business planHow does a Mastermind workEach group creates its own agenda based on the desired outcomes frequency and length of the meetings I like to think of my Mastermind Group as my informal board of directors with whom I leverage for strategic advice A Mastermind Group is not a networking group where you join to generate prospecting leads Rather its a safe forum where you can present your toughest business issues to secure feedback and insight about how to proceed A Mastermind Group is also your sounding board a place where you think out loud and receive feedback about your ideas and strategies When you form a Mastermind Group its important to keep in mind that ultimately each person is the CEO of their own business and that the final decision belongs to the individual To make a Mastermind Group work I suggest that you keep your group small say three to four members at most Each person needs to have adequate time to present we allocate 90 minutes per person Only allow new members with unanimous consent of the group In terms of the agenda while there are many Mastermind Groups who target their meetings to specific topics we keep ours open so that the biggest issues facing each member is discussedWho do you select to join your Mastermind GroupMy suggestion is to identify people who are thinkers and doers people who make it happen not just talk about what they want to do My group is comprised of speakers we represent different aspects of this business and each has a different business model Screening potential members is critical Decide who you know that shares similar values For us we1 Are passionate about creating and growing value-added businesses2 Have a strong commitment to help others succeed3 Have skin of a rhino meaning we receive feedback really well4 Operate with high integrity what is discussed at the meeting is never discussed with others5 Enjoy the creative process sometimes dont get to the final answer during a meeting its not uncommon for us to germinate over the ideas and then fling emails and phone calls back and forth6 Care about one anothers success and happiness on both a personal and professional levelIf you are in sales and want to create a Sales Mastermind Group consider inviting people with different industry backgrounds such as health care manufacturing environmental engineering consumer products etc The diversity of your business models will offer an important texture and richness to your discussionDo not invite competitors This will inhibit members willingness to be candid a core ingredient to a successful Mastermind experience Also select people with similar levels of responsibility business owners with business owners sales managers with sales managers CFOs with CFOs A mismatch often results in the more experienced members doing most of the coaching and over time losing interest and leavingWhere do you host the meetingDepending upon the number of members in your group the length and frequency of your meetings and the agenda decide what forum will best support your meetings success For us we rotate meeting at one anothers offices This is a full day event so we plan in advance how to handle lunch whether we bring our own order out or have it prepared ahead of time which we usually work through regardless From personal experience I have learned not to schedule anything too taxing that next day Im typically drained I appreciate having quiet time to think about and process what Ive heard so I can develop my action planThe benefitsBrilliant insights Cutting-edge strategies Innovation A feeling of deep connection to others The personal rewards from helping others succeed Joining this Mastermind Group has changed the trajectory of my business The synergistic nature of this group is dynamic and energizing I dont feel alone in my business venture Rather I feel connected to a dynamic group of success partners Their unfiltered advice and insightful feedback has become additive Refuse to become a victim of this economy Create a Mastermind Group Take time to recruit the right people Once accomplished expect to gain fresh ideas novel strategies and proven methodologies that will help you take your business success to the next level and beyondWritten by Christine McMahon wwwChristineMcMahoncomhttp://blog.mypocketdeals.com/detail/id/63/action_planning_for_your_first_apartment_deal.html2010-03-13 06:54:29Set Your Goal to purchase your first apartment in 90 days In general this plan is for buying cash-flowing income-producing apartment investment with built-in equityDo Your Market Research one of the most important rules on where to buy apartment buildings is to buy where there are JOBS If there is an absence of jobs and job growth there will be an absence of persons to rent to If you have no one to rent to your apartment investment will likely fail The easiest way to gauge a healthy job climate is to call your local chamber of commerce and get connected to the economic development department Within this department are all the statistics youll need to see what the current unemployment rate is as well as what the future holds I like to get info straight from the street as well Ill call several local property managers and ask them the question point blank hows the job market today Start In Your Own Backyard First I suggest starting your market research and having an intention on investing in your own city first It is by far the easiest and most efficient way to begin Investing out-of-state for the first-timer should be your last resort and should be done with the help and guidance of a skilled-advisor or hands-on consultant By starting locally youll be able to drive around meet people in person check up on the property easily and learn the business faster Be Smart and Find a Local Property Manager Smart business people team up with smarter teammates Property managers know all the ins and outs of operating and running apartments thats how they make a living So why not have them as your advisor right now as youre learning the business Property managers know neighborhoods very well if theyre safe if theyre easy to get tenants and how stable they are As soon as I find a potential deal I get my property manager on the phone and I ask them about the neighborhood and apartment complex This is my way of kicking the tires before I jump in This way it will save me a trip to the property and allow me more time to evaluate more deals Start Generating Leads Now that you have a goal some market research under your belt and have a city to start in youll need to start finding sources of deals or leads The simplest way to get leads is to start calling local real estate agents or brokers I suggest calling them on the phone first and if there is a connection there meet them for a cup of coffee Even though you are qualifying them you should be focusing on building a rapport with them If you dont like them or if they dont like you its not worth doing business with them Life is too short folks I emphasized this many times that the real estate investment business is a relationship business So after you spend a little time building rapport start sharing with them what youre looking for Start Networking Heres that R word again Relationships Join a local real estate club and start attending their meetings Go to investment seminars not to only learn the latest techniques but to meet new people One of the wealthiest people I know has very little money but he is the master at networking and meeting people I see him as truly wealthy Theres richness in the relationships he brings into his life The best deals are not going to be found on the internet The money you need for the down payment is not going to land in your lap These two things WILL surely come as a result of new relationships you develop Analyze Hundreds of Deals Finding a deal worth making an offer on is a numbers game Youre going to have to kiss a lot of frogs to find the one prince The more deals you analyze and look into the sooner youll reach your goal of buying apartments The bonus of looking at a lot of deals is that youll become sharper and sharper at evaluating them In no time youll be able to qualify deals in a matter of minutes sometimes seconds Get Your Financing Its never too early to start thinking about and taking action on how to get your deals financed You likely fall into one of the two following categories one you have your down payment already saved up and it is accessible Or two you have very little money for a down payment and youll need to go out and find it Or maybe you fall into a combination of the two Either way lets get than going as well Get Your House In Order What I mean by this is that youre going to have to change your frame of mind from a homeownerrenter to a business owner Once you buy your first apartment building and rent to someone you are hereby a business owner whether you want to be or not Being a business owner brings great liabilities and responsibilities with it Its time to set up an entity LLC LP Corp trust etc thats going to own your apartment building and business Written by Peter Harris TheApartmentConsultantcom CLICK HERE To Learn How To Create a Financial Fortress in 90 Days or Less Investing in Apartmentshttp://blog.mypocketdeals.com/detail/id/79/90_of_property_managers_are_no_gooddo_this_to_protect_your_apartment_investmentor_else.html2010-04-17 08:58:15Top 10 Biggest mistakes real estate investors make and how you can avoid them if you want to protect your investment properties So here we go More Words of Wisdom from my good friend Peter Harris1 Important reminder 9 out of 10 property managers are no goodIn other words 90 of qualified property managers cannot operate your property to its highest levels Face it the property management business is a tough business to make money in They usually over-commit and under-deliver It takes years to be successful in it let alone grow profitably And no one cares more about your investment than you do 2 - Make sure the property management company is in agreement with your business plan and exit strategy for the propertyDid you invest in this property for monthly cash flow for you to live off of or for your retirement years down the road or as a tax-shelter Whatever the case make sure your property manager knows understands and is in agreement with you 3 - You wont find out if the property management is good or not until you hire them for 3 months at least OuchWorking with a property management company is like a marriage youll find out if they can really do the job only after you hire them and theyve been on the job for a time Choose your property manager wisely4 - To hire the best ones around get a referral from someone who is happy with their own property managers performanceThis is absolutely the best way to hire a new property manager successfully Find someone such as a fellow-investor who is pleased with how their property is being managed5 - Make sure they agree to send you monthly performance reports get a sample of theirs before you hire themUpfront when interviewing ask what their property performance reporting capabilities are for owners Get a sample of what they currently send out then tell them what you need on weekly and monthly basis for reporting on the property If they are incapable then you have limited ways of holding them accountable6 - Hold the property manager accountable with well-organized monthly meetings and with the weekly accountability reportEvery month like clock-work there needs to be a meeting between you and the property managers If you let these meetings sly and go by the wayside think of a child that you slack discipline with What happens 7 - Visit the property routinely with surprises tooUpon taking ownership you should visit the property at least once per month more if it is being rehabbed for the first 6 months Afterwards site visits once per quarter should do 8 Conduct an annual customer service satisfaction survey of the tenants or often called a resident satisfaction surveyYou could easily do this yourself or hire a third party to conduct the survey The survey should address the following maintenance of apartments and grounds maintenance of community facilities pool clubhouse etc maintenance of utilities heat water garbage tenant relations leasing services and security Keep it simple easy to fill-out with a self-addressed stamped envelope with names optional9 - Plan for rainy days because stuff happens build reservesNothing comes between business relationships more so than the subject of money Money problems seem to never appear until its needed and there is none Build up and maintain a reserve fund for emergencies 10 - Dont be afraid to pull the plug on the property manager if poor performance lingers Here a few signs to watch indicating it may be time to pull the plug high delinquency of rent collection worsening occupancy trend habitually late reporting and accounting irregularitiesCLICK HERE TO LEARN MORE ABOUTPeter Harris TheApartmentConsultantcomhttp://blog.mypocketdeals.com/detail/id/88/commercial_foreclosures_goldrush_is_here.html2010-08-03 14:04:17The Tsunami of Commercial Foreclosure is well on its wayYou better be ready According to the experts in the industry Commercial foreclosures wave is promising to sweep through the nation with an overwhelming force and it has potential to bring our economy to another haltIt is projected that 68 of commercial mortgages could go into default which could mean that two thirds of all commercial buildings might go into foreclosure This can cause as many as 700 additional lending institutions to collapseWhat does it mean for you real estate investor Unbelievable discounts on commercial properties that are often in great condition and generating positive cash flow ConfusedOk lets break it down Most of the commercial real estate loans are done by smaller regional banks and many of these loans are short term loans with balloon payments And just as residential real estate during the last decade or so commercial real estate has experienced boom as well This caused for commercial properties to be in some cases over valued and over leveraged Sounds familiarOk lets continue Previously described set up for another round of financial disasters can turn into a potential gold rush for real estate investors Here is how Think back to residential foreclosures As balloon payments for real estate loans are becoming due owners will be forced to sell or refinance With credit not being readily available the second option is not viable so what are you left with Right sell Now remember the 68 of commercial mortgages that are could go into default This is the reason why If you cant refinance you have to sell or let your lender foreclose on the property Its a simple matter of supply and demandSo here is what is anticipated to happen An estimated value of 13 trillion dollars of commercial properties is expected to become due in the near future and with credit market being in the condition it is in now chance of all these properties finding refi options are pretty slim to none And slims are out of town by the way On the same token selling a property most likely wont be an easy task as well Why No credit availableWhat does it mean for youlxl DEALS DEALS and did I mention DEALSAnd guess what No money down seller finance deals Thats right your eyes are not deceiving you You can find no money down seller finance deals Check out this video to learn how easy it ishttp://blog.mypocketdeals.com/detail/id/104/seller_financing_to_the_rescue.html2010-10-19 07:01:26The ProblemWhen it comes to selling real estate one of the most difficult and frustrating situations for sellers is when market conditions make it nearly impossible to sell at the desired price point A high initial listing price might be because the seller simply has an unrealistic idea of how their house stacks up against the competition in the area or because the owner needs to sell for a set minimum price in order to pay off their loan against the propertyWith traditional property sales methods the only way to prevent the property from sitting on the market indefinitely is to keep dropping the price Unfortunately this technique doesnt always work - especially if the seller is unwilling to discount their house by muchIn areas flooded with homes for sale reducing the asking price slightly will not bring the desired result In fact its common that the property will continue to sit on the market without offers alongside the multitude of other unsold properties with similarly reduced pricesAnyone experienced in sales understands that making your product stand out from the crowd is a critical technique for success But if theres too much competition offering the same attributes the only logical way to attract the attention of serious buyers is to drop the price so that your property is a much better value than the competitionIn cases where the seller is too inflexible with their asking price this is not a practical solution Without an alternative strategy the seller is forced to keep the house on the market for an extended period of time with an unrealistic asking price hoping for the right buyer to come along And as you know that MrMrs Right might NEVER materializeThe Seller Finance SolutionProperty sellers who want to both obtain their desired price and close on the deal quickly should consider seller financing Seller financing is a powerful tool to remedy real estate situations that otherwise look grimMany home sellers and their real estate agents do not see seller financing as a viable option In actuality seller financing can bring new attention to the listing and invite a different group of potential buyers - thereby opening up a unique untapped marketA large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation Many of these people are still in the market to buy a house however The credit-challenged are often frustrated with the limitations of apartment living or being renters as a result many are willing to pay a higher price just for a chance to get seller financing and improve their quality of lifeA savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bonafide sellers market By using this type of creative financing the seller could actually end up getting more than the original asking price - without resorting to the questionable strategy of patiently waiting for the right buyerSeller finance can enable homeowners to receive a favorable selling price despite bad market conditions In addition the real estate agent if any gets to close a deal and move on to other sales while a home buyer with poor credit is able to become a home owner Its one of those rare situations where everyone at the negotiating table gets what they wantPaper TigersMany home sellers never consider seller financing because they dont understand the benefits There are also common misconceptions that its much too complicated to attempt to orchestrate a seller financed deal or that there are no buyers willing to sign a private noteOnce a property seller takes the time to learn about the basic process the advantages of offering financing instead of a lower price to sell their property become very clear Plus a little education about seller finance will make it apparent that drafting a secured private note is actually a very straightforward processThe bottom line is seller financing can enable a home owner to have their cake and eat it too - ie sell at the desired price close the deal quickly and even receive additional income from interest payments as well Article source Our Friends httpwwwmoney4ioucom