Real Estate Investment Blog

Is one or more of these 7 common real estate investing mistakes stopping you from being successful?

I’ve been investing in real estate, businesses and commodities for over nineteen years now. And, I’ve been teaching people how to invest and run their business for just about nine years.

Tens of thousands of people have gotten my systems, come to my events and taken our coaching programs. Over the years, I’ve watched, listened and surveyed my students to see how we can help them become more successful faster.

As a matter of fact, when you walk through the front door of our 12,000 square foot office building, right behind Alice’s reception desk, you’ll see our core values. Our number one core value is “we are not successful until our students are successful.”

My staff and I are committed to your success.

That being said, I’ve discovered 7 common mistakes that investors make that prevent them from being successful. They are:

1)   Limited marketing – the first thing you need to realize is you are in the marketing business. Real estate is your product but marketing is your business. The number one reason I see a student doing a bad deal is lack of marketing.

Why? Because you don’t have a lot of leads coming in, you get emotionally attached to doing this deal… because it’s the only one you’ve got cooking right now. So, you come up with reasons why this deal could work. That’s called rationalizing. Once you start rationalizing, you have lost. If you can’t come back to your senses… walk away!

This is why we are spending a lot of time at the Business Explosion and Ultimate Partnering Summit in February on Marketing.

2)   Poor relationships – the sooner you realize this is a relationship business and the more relationships you have, the faster your […]

How To Get The Money…In 7 Easy Steps

Money. If you want to grow your business quickly and if you want to do more real estate deals, it’s going to take money and if you plan on growing quickly, you’re going to do it by using other people’s money.

Today’s essay gives you seven easy steps to Getting The Money!!

1) Go to where the money is

When asked why he robbed banks, John Dillinger said, “That’s where the money is.” So as a real estate investor, where would you go to get investors to invest in your real estate deals? Where the money is. And where is the money? Business networking groups.

Why business groups? These are groups of people who own businesses and have money. They are getting together for the purpose of growing their business and increasing their wealth.

They know what’s happening in the real estate market. They would love to be a part of it but they are too busy working on their businesses. In comes you, the person in the real estate business, offering opportunities (not asking for money) for other businesses to take advantage of the real estate market by leveraging your expertise and investing in your deals.

Business owners are your perfect candidates. They know what it takes to grow a business. They are used to taking risks. They have grown their businesses by delegating. AND, they have money to invest.

This is where the money is. Some good business networking groups available to everyone are the Chamber of Commerce, Business Networking International and your local rotary club.

Step number one is to go to a meeting. So do some research, decide which groups’ gatherings you want to attend, get the dates of […]

8 Tips To Network Effectively

The quality of your business is going to be determined by the quality of your relationships. The more quality relationships you have the better your business will be.

None of start out with a full rolodex of contacts, as a matter of fact, we all start out with a clean slate and it’s up to us to put ourselves in situations where we can make contacts that will further out businesses. Once you put yourself in the right place, you must then take the next step and network effectively to cultivate relationships.

Most people are introverts and the thought of going to a networking situation is a necessary evil and once there, become immediate wallflowers hoping someone will come up to them and start a conversation. Once the conversation is started, this person becomes an anchor and the hope is that they never leave!

I just described how I used to network, and after many disappointing nights, I got serious and started to learn and implement proper networking strategies and my world and my rolodex changed for the better. Here my top eight tips for effective networking:

1. Be Prepared. Good Networkers always have their networking tools with them at all times. The Networking tool kit includes: an ample supply of business cards, your name badge, any collateral material (flyers, brochures, etc), and your marketing message (your elevator speech).

2. Arrive early. Arrive early and have your business cards readily available and can relax and focus on learning about the other people in the room. As you arrive early, you can easily greet newcomers instead of arriving just on time or worse, late and be intimated by groups that have already formed.

3. Have a plan. Have an idea […]

Cash out Refinance – Something Every Investor Should Think About

Many times when a new property investor is looking for funding to invest in a property they will turn to the equity that they may have built up in property that they currently own. This may give them an option to take advantage of cash out refinance and glean the money that they need for the new property investment this way.

Although there are several ways to do this; such as taking out a second mortgage, many will opt to go for cash out refinancing options. If this is the route that is taken, what happens is that the original mortgage on the equity property is simply refinanced at the higher amount that is needed, in respect to the equity that has been built. So it still remains as a single loan, however there are now new interest rates and new terms, and it could even have been done through a totally different financial institution.

The question that is often raised though, is what is the advantage to doing a cash out refinance as opposed to obtaining a second mortgage?

To begin with it may be much easier to do a cash refinance rather then trying to obtain a second mortgage, and it should also be realized that normally the interest rates on a second mortgage are always higher then what one would be able to get on a first mortgage. However it has to be considered that if the first mortgage has a really low interest rate on it, which is much lower then the current rates, it might not be a wise financial move to close out the original first mortgage in order to get a cash out refinance.

By doing the financial calculations it […]

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How to Make Money in Real Estate Using Other People’s Money

Smart real estate investors know that the best way to make money in the real estate investment market is to use other people’s money and trade their own expertise and negotiating skills for a slice of the profits.

As a real estate investor of many year’s experience and with a certain reputation for closing lucrative deals I am constantly being approached by groups of investors who want to break into the real estate market without risking huge chunks of their money and without having to go through the painful learning curve that’s often associated with investing in a market you know little about.

I am in the advantageous position of being able to wait until a good deal comes along and then choosing the group of investors I will work with. This, in essence, is what a syndicate real estate deal is. Rather than put up all the money, investors put in a percentage which will reflect their percentage of the profits, thus minimizing their exposure in each single real estate deal.

The question is what do you do if you have not yet got a reputation but can still pull off a profitable real estate deal and do not want to risk your money? Well, this is where you need to be creative. The moment you have a deal you think you can close at a profit you need to move fast to get your syndicate together.

Potential real estate investors willing to put their money up can come from almost anywhere: friends, family, colleagues, people you work with, acquaintances, business angels and professional investors who earn their money by investing through syndicate deals. The list is almost endless and putting a syndicate together will depend on […]

Securing Private Funds for Commercial Real Estate Deals

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As you may well know by now, private money funding is one of several options you have for funding a commercial real estate deal. The real trick is to know where to find such funding, and then to know how to lock it in so you can properly use it. I’ve used my share of private money over the years and what I’ve found is that private lending success comes from two key things: how you present yourself and how you present the deal.

Presenting yourself to a private lender needs to revolve around your professionalism and your commitment to the types of deals you do. For this reason, a simple summary proposal is a nice touch, when you first begin visiting with a particular lender. In such a proposal, you can provide snippets of your business philosophy, history, experience, etc. You can also show examples of how you would handle a particular deal, giving a lending prospect a quick idea of what it is like to do business with you.

There are several ways to put together a summary proposal and there are a similar number of things you could call it. The bottom line is that if your business is worth telling people about, it’s also worth putting in writing, and a person looking to learn more about you is less likely to want to read a full-blown business plan that is less relevant to their immediate interests.

Once you have gathered some interest from private lenders (not to understate the importance of this step), the next step is to actually […]

Funding Your Deals With IRA Funds

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Huntsville, AL .. August 28-30 2009