Speed, Greed + Ignorance = A Real Estate Investing Train Wreck

The new real estate investor asked, “Bill, can you help me put together a deal?”

“Sure,” I answered. “What kind of creative deal do you need help putting together?”

“It needs to be one of those subject-to deal thingamajigs, combined with a land-trust doohickey,” she replied.

I paused to consider what she had just said. I asked, “A doohickey? Have you ever done a subject-to deal or worked with a land trust before?”

“Not yet. This will be my first time to use either technique,” she explained.

It reminded me of something Jack Miller (God rest his wise soul) once said: Speed, greed and ignorance equals a real estate investing train wreck. So true – especially in this case!

Why is it that new investors think they can take one or two classes and then know all there is to know about real estate investing? Sure, we’re morphing into an impatient society that wants instant gratification, but most things still take a lot of time to master – about 10,000 hours! There’s no single class to take or computer app to get that will allow you to know all there is to know about…

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What is November’s Meeting About?

What is the best way to build real estate investing experience while making fast, nearly-risk-free cash? Easy answer: By bird-dogging and wholesaling properties. If you’re a seasoned pro, what is the easiest way to keep your hand in the game without doing any heavy lifting? Same answer: By bird-dogging and wholesaling properties.

Example: This past August, Kim and I bought a house in Woodstock for $91,000. We wholesaled it 25 days later for $123,000. Our net profit on this wholesale deal was more than $25,000!

Two months before that, we bird-dogged another Woodstock property to an investor. This little transaction netted us a bit over $13,000 in less than 30 days.

Folks, that’s nearly $40,000 in net earnings from just two deals in three months! One was a bird-dog deal, the other a wholesale deal. Are you getting these kinds of results from your real estate investing efforts? Are you interested in learning how…

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How to Make $25,000 in Twenty-five days

Lexington Ave Wholesale Deal

There are many reasons why you should become a real estate investor; one is to gain financial freedom by owning paid-for rental homes that provide you with monthly mailbox money. Another is the opportunity to make big chunks of cash by bird-dogging, wholesaling and flipping properties.

Whether you’re a seasoned real estate investor or one who is just getting started, bird-dogging and wholesaling homes to other investors should be part of your business plan.

For example, (and I don’t write this to say “Boy, look at us; aren’t we something!”) a couple of months ago, Kim and I bought a house for $91,000, and then wholesaled it twenty-five days later (without doing any repairs) for $123,000. Our net profit on this wholesale deal was more than $25,000.

Want to know how we did it? Read on, my friend, read on!

What is bird-dogging? A bird dog is someone who…

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2015 Captain’s of the Deal Cabin Block Ends Nov 4!!!

Dyches, Pete and Bill

Time is running out and so are the cabins! Our cabin block for the 3rd annual Captains of the Deal 7-day Caribbeanreal estate investor cruise ends on November 4! This means that if you’re not yet signed up, you may not be able to get a cabin at our special, special rate. Don’t let this happen to you!

The 2015 Captains of the Deal cruise will be the BEST ever! Pete Fortunato is joining us again! Our discussion topic will be Creative Cash Flows! We’ll be departing from Port Canaveral, Florida. Our ports of call will be the Bahamas, St. Thomas and St. Maarten. We depart on March 8, 2015 and return seven days later all tanned, beautiful and knowledge-filled on March 15, 2015.

For full information, please visit CaptainsoftheDeal.com!

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Accomplish Tasks!

What does it take to be a successful real estate investor – or a successful anything for that matter? Simple answer: Accomplish the tasks that need accomplishing, and do them whether you want to do them or not.

Right now, I’m beating myself up. My key goal for this year was to get my real estate investing training manuals re-written and published. Guess how many I’ve gotten done? Zippo!

Bottom line: I didn’t do what needed to be done. When this happens to you, how does it make you feel? In my case, I lie awake nights calling myself every name in the book. That doesn’t really help to build one’s self-confidence, does it?

How do you fix this problem? Another simple answer: Block out distractions, focus, and start accomplishing tasks!

When Kim and I first became real estate investors, there was one main goal that needed to get done: I had to get face-to-face with twenty-five sellers each and every week. It was incredibly easy to find hundreds of other far-less-important things to do…like…

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The Tax Benefits of Rental Property

Like many people, Anthony is disgusted with the skimpy 0.1% interest his bank is paying on savings. He knew that Kim and I, like many real estate investors, borrow our purchase and fix-up money from individuals rather than from banks. He called to say that he would fund our next deal if we’d pay him 5% compounding interest.

The phone conversation led to a face-to-face talk over coffee at Waffle House. Anthony and his wife have good jobs and they’re paid W-2 income. In other words, their tax bracket was killing them.

Being the curious sort, I asked why they wanted to be lenders instead of owning rental property themselves…after all, their tax situation screamed: Own rental property! Anthony explained that they’d heard too many tenant horror stories – there was no way they’d ever consider becoming landlords.

I shared that Kim and I had found our next investment deal. It was a three-bedroom, two-bath ranch in a great neighborhood. The purchase price was…

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Would-be Tenants From Hades

Landlords, what’s the best way to deal with tenants who are a pain in the tail and make you want to vomit? Easy answer: Never let them in your rental property in the first place. And how do you accomplish this feat? Read on, my friend – it’s actually pretty simple! But first, a story…

Several weeks back, we had a property go vacant in Cartersville, Georgia. It’s a nice three-bedroom, two-bath home with a two-car garage. Though a good number of applications came in, one stood out above the rest.

The application was neat and complete. The prospects were from Cartersville, so they have a lot of ties to the community. The husband was an experienced contractor who knew how to fix things. The wife was disabled and received a guaranteed monthly government check. They didn’t have any kids or pets and didn’t smoke. They were looking for a place they could live in for the rest of their lives. Looking at the application, there was nothing not to like about…

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Seven Truths of Real Estate Investing

Recently, Kim and I spoke to a group of new real estate investors. The topic was: The Seven Truths of Real Estate Investing. This information is beneficial to anyone who’s thinking about dipping his or her toe into the real estate investing water.

First truth: To be a successful real estate investor, you gotta get face-to-face with sellers on a regular basis and ask Pete Fortunato’s famous question: Why are you selling such a nice house like this? This is the alpha and omega of real estate investing!

Would-be investors mistakenly think they can succeed using nothing more than a computer. Real estate investing is a people business, not a computer business! Nothing takes the place of sitting at the seller’s kitchen table and asking lots of questions so you can discover the seller’s uncomfortable circumstances. After all, how can you structure an offer that is likely to be accepted by the seller if you don’t first fully understand the seller’s problem?

Second truth: Success comes slowly…very slowly! Kim and I were active investors for five years before we started feeling comfortable about what we were doing. It was another five years before we began feeling confident with our deals. And let me tell you, there’s a huge difference between…

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WHAT IS OCTOBER’S MEETING ABOUT?

October’s meeting is gonna be incredible – especially for landlords! Our speaker will be David Tilney. David is an incredible teacher…a real been-there-and-done-that landlording guy. He teaches like no one else. His ideas are unique. David will help you look at landlording and tenants a whole new way!

As a landlord, do you ever stop and ask yourself, “Why do I manage my tenants the way I do?” Most of us can’t explain – we just do the things we do…because. But because why? This is the question David will be discussing.

Here are some of the “WHY” questions to consider:

Why is the rent due on the 1st?
Why do landlords usually sign a one-year lease?
Why don’t landlords like pets?
Why do landlords clean rentals and make improvements between tenants?
Why are landlords afraid to raise rents?
Why do landlords evict?
Why do landlords do property inspections?
Why do landlords schedule property showings?
Why do landlords take security deposits?
Why does the government allow landlords to depreciate rental property?
Why do landlords burnout?

You may think you know the answers to these questions…but are you sure? Like I said, David Tilney is an incredibly unique landlording teacher and thinker. I promise, a lot of his ideas will stretch your mind!

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David Tilney: A Landlord’s Landlord

David and Mary Tilney

The vast number of mom-and-pop real estate investors who own rental property amazes us. Consider this: About 63% of Americans own their home. This means that 37% – if they want to keep a roof over their heads – are tenants paying landlords rent each month. We’re talking about 334 million tenants, folks!

Here’s another interesting fact: Most would-be landlords never buy their first rental property because of their unfounded fear of tenants. We’ve all heard the horror stories: Tenants who trashed the house; tenants who didn’t pay and refused to move; tenants who “adopt” 43 dogs and all the fleas accompanying them!

When someone shares one of these landlording nightmares, we ask one simple question – and it’s one you should ask as well: Did that landlord ever take a landlording class? Ninety-nine percent of the time the answer is: No!

Another fact: Landlording is a learned thing, not a born-knowing-how-to-do-it thing. Can you imagine learning to fly without ever taking a lesson? You might get the plane in the air, but when it comes down – and it most definitely will come down – the chances you’ll walk away from the crash are…

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