September’s Meeting Info

WHAT IS SEPTEMBER’S MEETING ABOUT?

A contractor’s most important tool is a hammer. For a pilot, it’s an airplane. So what’s a real estate investor’s most important tool?

Here’s another question: You meet with a very motivated seller who agrees to owner finance her property to you. The property is free-and-clear and is worth $125,000. It doesn’t need any work. It will rent for $950 per month. Monthly expenses (taxes, insurance, repairs, vacancies, management) average 35% of the monthly rent. To do the deal, you must net at least $200 per month. What’s the most you can pay the seller each month and still make this deal work? If the seller agrees to a nothing-down, thirty-year-fixed-rate mortgage, what interest rate are you giving the seller? (answers below)

Let’s try another question: You find a great single-family house in a nice neighborhood to buy. It’s a fifty-cents-on-the-dollar deal. Your total all-in cost will be $70,000. A family friend has $70,000 in a CD that’s coming due. Right now, the interest rate banks pay on new CDs is a miserly 0.1%. YUCK! The friend offers to lend you $70,000 if you agree to pay 4.5% compounding interest over 20 years. How much is the monthly payment? (answer below)

Do you know the answers to the above questions? If you want to succeed as a real estate investor – if you want to be able to make the impossible deals possible – then your answer should be YES!

So what’s a real estate investor’s most important tool? A financial calculator! If you don’t know how to use one, then you’re trying to compete against seasoned investors with both your hands tied behind your back while blindfolded. Bottom line: You can’t win!

Roughly 99% of would-be real estate investors (and gurus) don’t know how to turn on a financial calculator – much less use one. September’s meeting is your opportunity to become a 1%er!

At September’s North Georgia REIA meeting, Bill Cook – one of the best and most experienced financial calculator guys in the country – will be teaching financial calculator basics. Want to leave your competition in the dust? Then this is your can’t-miss meeting of the year!

To get the most out of this presentation, before the meeting, go to In A Day Development’s website (http://www.inadaydevelopment.com) and download their Hewett Packard 10bii (pronounced: 10 B 2) financial calculator app to your smart phone or tablet. It’s THE BEST 10bii app out there and costs around six bucks. Bill will only be using the app version of the 10bii, not the handheld version!

North Georgia REIA is passionate about your…

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A Thinking Man’s Game

Here's Jack with Houston, Phil, Kim and Bill

Jack Miller, who now lives with the angels, taught us that real estate investing is a thinking man’s game – not a running man’s game. He also preached that success requires imagination and persistence.

When most folks think about real estate investing, they only think about flipping homes: buying a house for a certain amount, then quickly reselling it for a higher price and pocketing the difference. Real estate investing is so much more than this!

Flipping is nothing more than a job – a highly taxed job! After flipping a house, the government steals roughly half of what you earned. If you need more money, you’ve got to go out and find another deal. It’s a hamster wheel that flippers never seem to escape.

Under the big tent of things, flipping is just part of real estate investing. But here’s something Dyches Boddiford taught us long ago: Flipping works as long as you aren’t hit by a bus. In other words, for whatever reason, if you’re unable to do another flip, the money machine stops then and there. If this happens, how will your family pay the…

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The Truth Can Run Around Naked!

David is a real estate investor from the Northeast. Many folks don’t know this, but “Northeast” is a Latin word that means: Where’d you get that Yankee accent? Honestly, even though I went to college up north, I only understood half of what came out of David’s mouth. Don’t know about you, but Yankee talk hurts my ears!

He came down to beautiful Dixie because he wanted me to watch him negotiate with sellers. The thing was, even though David has been reading our column, he wasn’t having much success working out win-win deals at sellers’ kitchen tables.

During our time together, we met with six sellers and made six written offers. By any measure, it was a successful day. One other important thing happened: By the time David finished making his second offer, I had discovered his problem…actually his two problems – and boy were they doozies! No wonder he was having trouble getting…

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The Blanket Approach In Action

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Two weeks ago, we wrote a column about the most straightforward of all the door-knocking approaches we use. I call it the blanket approach. If you missed that article in the paper, you can find it on our website at CashFlowREI.com.

When doing the blanket approach, I knock on every homeowner’s door in the subdivision asking if they know of anyone in the neighborhood who is thinking about selling their home.

A good number of investors called asking if this approach really works. Fair question. Before answering, let me ask you three questions. First, yesterday, how many homeowners did you meet with face-to-face? How many this month? This year?

As you know, one of an investor’s primary jobs is to meet with a lot of homeowners on a regular basis. Knowing this, what were your answers to these three questions? Now compare your numbers to the numbers you’re about to…

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August’s Meeting

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WHAT IS AUGUST’S MEETING ABOUT?

Lots of folks want to be real estate investors. One of the most asked questions is: How do I make money as a real estate investor?

At our August meeting, Dyches Boddiford, Dorsie Boddiford and Bill and Kim Cook will discuss all the different ways you can make money as a real estate investor – even if you don’t have the money to buy a property!

Our August teachers have over a half-century of real estate investing experience. They’ll be sharing lots of their real-world experience – experience you won’t find anywhere else in Georgia!

Here are just of a few of the creative cash-flow topics and real-world examples we’ll be looking at:

Master Leasing
Lending to Investors
Wrapped Notes
Wholesaling
Bird-dogging
Referrals

North Georgia REIA is passionate about…

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Are You Ready For THE Day???

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Are you ready for THE day you meet your Maker? What if THE day was today? Is your paperwork in order? Does your family know where your will is? Heck, do you have a will? Does your family know what you want done? Have you taken the necessary steps to provide for your family when you die?

Talking about death is never a fun subject to discuss. But when – not if – it happens, not being prepared is an awful – and unneeded – burden to place on your family!

Terrah Whitlock has worked with us for many years. She is a daughter to us, and we love her very, very much! Earlier this week, Teah Bramlett, Terrah’s sister, passed away unexpectedly. She was only 33 years old. She went to heaven leaving her two sons, Dexter (15 years old) and Luke (11 months old). Last night in Calhoun, over 200 people came to the viewing. Today is the funeral. It’s a very sad day and our prayers are with Terrah and her family.

At last night’s viewing, I got to thinking: What are the absolute minimum things you need to do for your family before…

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The Blanket Approach

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When it comes to door-knocking, I use three techniques. The first is the targeted approach. I drive through a neighborhood looking for “For Sale” signs. When I see one, I pull to the curb, then get out and knock on the seller’s door. If the owner answers, I ask questions about the property.

One thing: There are a wide variety of signs indicating that a property may be for sale. Other signs to look for are rent signs, uncut yards, blue tarps on roofs, properties getting repaired, etc.

The second technique is the foreclosure approach. When the monthly foreclosure notices come out, Kim and I drive by each house advertised in the paper. If what we see interests us, I knock on the owner’s door. Some of our most profitable deals have come from working foreclosures.

The third technique is the blanket approach – it’s the most straightforward of all the door-knocking approaches. I knock on EVERY homeowner’s door in a neighborhood. And here’s the most important part:

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Subpar Houses Attract Subpar Tenants

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Brad wanted to get into real estate investing a while back so he bought a single-family rental property. A few days ago he called to say that he was desperate to sell. In fact, he told me that he didn’t care if he lost money on the deal, as long as he never had to work with another tenant ever again!

Does this sound like a motivated seller to you?

Over coffee at Waffle House, Brad went into more detail. He had constant turn over – tenants were staying no more than a month or two and then moving out. He got daily complaint calls telling him that this thing wasn’t working or that that thing was broken. The tenants never paid on time. The yard was always a mess. Bottom line: To Brad, tenants were nothing but a big pain in the keister!

From Waffle House I followed Brad to his rental property. The closer we got to his property, the worse the area became: boarded up houses, stray dogs everywhere, broken-down cars, etc. I locked my door and was ready to…

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Making $13,000 With No Money Invested

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Want to see how to make $13,000 in two short weeks with no money invested and without owning the home?

With creative real estate investing, Jack Miller taught us to structure on purpose. Pete Fortunato taught us to use what we want, to get what we need, to get what we want. Let’s take a look at these two all-important lessons in action.

Jonathan and Christie help us maintain some of the rental properties we manage. About a month ago, Christie told Kim that her mom wanted to sell her home in Acworth, Georgia. After meeting with Christie’s mom, Kim determined that the home was worth $90,000 and needed a $10,000 rehab. Kim offered either $63,000 cash or a $90,000 owner-carried note with payments of $300 per month, but the mom turned down both offers.

Kim then asked, “What’s the house of your dreams?” The mom answered, “One out in the country.” Unfortunately, we didn’t have any such property available.

The next day, Kim had an idea. Our friends Joe and Ashley English had a house on the outskirts of Adairsville that had just gone up for rent. Kim called Christie’s mom and asked, “How would you like to trade your house in the city for your dream home in the country?” The mom got so excited at the idea that she loaded up her family and immediately drove to the Adairsville house. She LOVED it! She agreed to a trade.

Two problems:

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July’s North Georgia REIA Meeting Info

WHAT IS JULY’S MEETING ABOUT?

Topic 1: Do you have a tenant who isn’t paying on time and/or taking care of your property? Are you lying awake nights sick to your stomach and mad as a hornet? Do you just want the pain-in-the-butt tenant gone?

During July’s meeting, we’ll go over the steps a landlord must follow if (s)he wants to evict a tenant who isn’t living up to his end of the bargain. In addition, you’ll see some real-world examples of evictions we’ve done recently. The process is simple – but you gotta follow my steps if you want to stay legal and get your house back in good condition!

Topic 2: Want to learn more about how to fight your property taxes? It just so happens that on the day of July’s meeting, Kim and I are going before the Board of Equalization to fight our property values. We’re asking for a 50% reduction in value for each property we’re…

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