Without cash or financing you have to get creative to move your stuff.  Lease with option to purchase.  Long term rental.  Owner financing.  All of these scenarios are basically designed to “tread water” till things ease up later on.  My guess is we’re in for another year or two of slow moving houses.  You can still move property that you can pick up for 20% to 30% of value quickly.  Part of the problem is we got spoiled over the past 5 to 8 years with super easy money and constantly increasing property values.  You could buy a property at 70% of value, add your 30% on top of that and still get the buyer 100% financing.  Usually in 90 days and walk out of the closing office with a big fat check while doing the happy dance. 

In today’s market you can still do the happy dance but it is less frequent and you have to work at it a lot harder.  Back to this “who do you know who” thing.  It’s a phrase I picked up from being in BNI (Business Networking International).  You constantly ask who do you know who…. is looking for……..  I have found in today’s market I do much more business via referrals and relationships.  Social networking has become the big buzz.  The cool part about it is people do business with people they know and trust and have a relationship with them.  Remember the best advertising is word of mouth.  In today’s economic climate that has been personified.

If you want to be and remain successful in today’s real estate investment market then get out there and be sociable.  Go to networking events, do the social blogs.  Use Myspace, Facebook, Twitter, Meet Up and any other “thing” or form of networking that is out there.  Make a connection.  By the way.  Don’t go to a networking event solely to see what you can get out of it.  Bring something of value to the table.  Help someone out and sure enough someone else will help you out. 

Join real estate invetment groups.  Examples would be the area REIA (Real Estate Investment Associations) groups.  They  have a bunch of good information available and you will meet all kinds of other investors there.  One of my favorite groups in the Kansas City area is MOKAN REIN (Missouri-Kansas Real Estate Investors Network).  Check out www.mokanrein.com.  Okay, I admit it, I’m part owner of that group.  I do make it a point to bring as much information and help to everyone in the group as I possibly can.  You know what?  I get tons of leads via that group.  Everybody helping everybody, what a concept.

Yep, the market is tough and it sucks sometimes.  That’s life Charlie, hike up your skirt and do something to control your own destiny.  Take action, help someone else out and watch the magic happen.  Give me your thoughts and ideas on any other networking groups or things to do.

God Bless each and everyone of your hard working little butts,

Gary Hard

As always, your comments are welcome.

First of all I must put out my disclaimer.  I am a real estate guy, not a stock market guy.  I’ve seen stocks go to zero.  I’ve never seen a piece of real estate go to zero.  I’ve seen some big declines but never to zero.  Those big declines are creating some MONGO bargains right now in the real estate market.  I am concerned because of the lack of traditional funding or financing to acquire these mongo bargains.   Did you notice the word “traditional”?  What is “traditional” financing?  You know.  Finding a property that you’re excited about and you want to buy, so you go to your banker or mortgage guy and they set up financing for you to buy it.  In the past, if you had good or even reasonable credit you could buy the house with little or nothing down.  But now with the credit crunch, it’s very difficult to get a “traditional” mortgage of any kind on an investment property.  That’s a house other than your personal residence.  Personal residence mortgages are still available but you may have to put a bigger percentage of money down on the property.

What’s a budding investor to do?  Learn how to acquire property with ”non-traditional” funding.  Such as seller carry back, private investor money, use an IRA account (yours or perhaps someone else’s) or my personal favorite; “subject to” purchases.  Subject to allows you to acquire the property with nothing out of pocket, the financing is already in place, you didn’t have to qualify for it and it allows you to resell the property any way you choose.  Lease to own, owner finance, or even just rent it out and let the equity grow in the property while someone else makes the payments.  Sure, there are issues with rentals and leases but there are huge future rewards. 

The point is: Drum roll please!  Don’t sit around waiting for someone to do something for you.  The more you sit and wait, the more likely someone or a government agency will do something  Too  you, not  For    you.  I will fight the urge to go political here.  Be an entrepreneur.  Create your circumstance, don’t be a victim of a circumstance!  Take action, be bold, be brave.  This economic time is creating some devastating losses right now.  It is also creating some never before seen opportunities.  Yeah, I’m definitely a “glass half full” kind of guy.

Your mission: should you decide to accept, is to get some training, be bold, step up and out of that cave you retreated too.  You will never realize your destiny while sitting back and waiting for someone to throw you a bone.  Remember, the early bird gets the worm and the second mouse gets the cheese, oops, scratch that second part.  Actually, that’s correct about the mouse.  Get training, learn from what others have done.  If it’s good stuff, copy it.  If it’s bad stuff, learn from the mistake and modify it.  If you have training and plug into a power group you can learn and leverage your way to an MBA (that’s a “Massive Bank Account”).

I am a real estate investor guy first but I also have other businesses or “streams of income”.  Always have multiple streams of income.  If real estate tanks then you can fall back on stocks or computer repair or carpentry, or online businesses, or auto mechanics.  Get real good at one primary thing but have other things going at the same time.  If one goes away then crank up one of the others that have been on the back burner.

If real estate is of interest to you, then plug into this site www.mokanrein.com and make some connections. Get some training Real Investment Mentorship & Coaching so you can benefit from the first mouse’s mistakes.  (What a cheesy line)

As always, your comments are greatly appreciated.

Gary Hard

The college bowl games were good and this season’s pro playoffs have been real good.   At least I think they’ve been good.   A lot of number 6 seed and wildcard teams thumping the number 1 guys.  My home team didn’t even sniff the playoffs with a stellar record of 2 and 14.   Suffice it to say, I don’t have a dog in this fight.   We do get the overall #3 pick in the draft.  (small consolation) 

Anyway.  As I watched the various games and saw the premiere quarterbacks in the college ranks and the pros throw interceptions, I would hear the commentator say “I’m sure he wishes he had that one back”.   To which you have to say “Duh”!   The best way to never throw an interception is to never throw the ball.  Wayne Gretsky, the famous hockey player (I thought we were talking football?) said: ” You miss every shot you don’t take”.   The same is true with football.   You must take action.   Study the defense, practice regularly, prepare a game plan and then execute that plan.   Sometimes it just doesn’t work the way you planned.

Isn’t this blog supposed to be about real estate investing?   Yes.   You can have a game plan, you can study the trends, you can see the deal come together in your head.   But if you never talk to anyone or make an offer you’ll never know if it really works.   Yes you run the risk of throwing an interception.   Buying a house you thought was a slam dunk deal (how many different sport metaphors is he going to use?) and somehow the deal turns to crap.   The market shifted, the end buyer you had lined up seems to have gone into the witness protection program, you found more problems with the house than you originally thought.   You wish you could have that throw back.  The point is: even the premiere quarterbacks throw interceptions: even the premiere real estate investors buy one wrong from time to time.   No one is a hundred percent.   If they tell you they are 100%, they are either lying or they’ve never done a deal.

Do your due diligence.  Get some training or mentorship.  Plug into real estate groups like MOKAN REIN (Missouri Kansas Real Estate Investors, see www.MOKANREIN.com).  Check out the training material at Real Investment Mentorship & Coaching.  This is a great place to get started on your trek to real estate investing and financial freedom.  Remember: get trained, plug into a team, throw the ball often.  When you do throw that “interception”, learn from it.  Think of it as a right of passage.  Don’t dwell on it.  Make up for it on the next deal.  Deals are everywhere, you just have to study, prepare and fling it towards the endzone somtimes.

As always, let me know what you think.

I talk about people committing “stupid” from time to time.  I need to look in the mirror and ask the guy, “what were you thinking”?  NEVER NEVER stop marketing your properties.  Even after the contract is signed because there is no guarantee the deal will close.  I know that.  I’ve been doing this twelve or thirteen years now.  I fell a sleep at the wheel.  Here’s the wake up call.  Even a “seasoned professional” such as myself can do a bonehead thing from time to time.  Not all people would admit it.  I’m not so smug as to never admit I make mistakes.  But by baring my soul to you I will remember next time and hopefully you will remember also.  By the way, make sure you get some training.  Don’t try to save a buck and short change yourself in the process.  Knowledge is power IF you put it into action.  Go here and get some potential power: Cash in on the Biggest Financial Windfall in America’s History!

Hope you are doing well.  As always, let me know what you think.

I was at a MO/KAN REIN (Missouri/Kansas Real Estate Investors Network) meeting this week and the discussion focused around tightening market trends.  By the way, if you are in the Kansas City metro area, contact me about coming to our meetings.  If you’re looking to buy for all cash and quickly resell for all cash, then you’d better be low low low on your purchase price.  Cash Is King right now.  If you have cash or access to cash you can dictate extremely low purchase prices.  It used to be the M.A.O. (maximum allowable offer) for all cash was 70%  minus any repair costs.  That number could easily be 50% now.  So if you’re looking at a property that will be worth $100,000.00 ARV (after repair value) and it needs $20,000.00 in rehab costs, your MAO would be $30,000.00 or less for all cash.  That sounds brutal but if you don’t adhere to these kinds of numbers for all cash, your going to have trouble reselling that property quickly for all cash to someone else.  You can rent it out or do a lease to own, but you need to know your exit strategy BEFORE you acquire the property.  Otherwise, you’ll buy it wrong and then won’t be able to get rid of it.

The time is great for getting into real estate investing.  However, as I always mention; get trained and plug into a mentor or a group to help you along the way.  Anyone can easily go out and overpay for a property and then you’re in the trick bag trying to get rid of something you own for too much money.  Check out: Cash in on the Biggest Financial Windfall in America’s History!  Getting training keeps you from committing “stupid”.

As always, let me know what you think.

Hope you had an excellent Thanksgiving!

Without hesitation I blurted out, “love what you do.”  Find something that blows your skirt up or winds your clock or makes you tingle all over.  If you don’t have a passion for what you are doing, you are in deep stuff when things get tough.  Hey that kinda rhymes. (more hidden talent)  That tough stuff is going to happen and if you’re not well planted in what you’re doing, you’re not going to stick with it.

Here’s an excerpt from Napoleon Hill’s “Think and Grow Rich”.

Four Steps to Persistence:

1.  A definite purpose backed by burning desire for its fulfillment.

2.  A definite plan, expressed in continuous action.

3.  A mind closed tightly against all negative and discouraging influences, including negative suggestions of relatives, friends and acquaintances.

4.  A friendly alliance with one or more persons who will encourage one to follow through with both plan and purpose.

So.  What is it that gets you going?  Find it, stick with it, learn it at depth, become the authority in you niche.  If it’s real estate investing you love, then get all the training and knowledge you can stand.  Check out the material I peddle.  It’s rock solid, inexpensive and very much in line with learning about real estate. Create a Recession Proof 6 Figure Income in ANY Market!

Feel free to leave comments and thoughts.

This morning I talked with a friend who is a part-time real estate investor and he got the opportunity to become a full-time real estate investor.  You got it.  He was let go from his current job this week.  Be careful what you wish for, it will probably come true.  Here’s the conundrum, should he be excited and thankful for this wonderful opportunity to pursue his passion or should he be scared to death and fearful of what is to come?  The answer is YES!  Use that fear as motivation to take action and push through any obstacle that stands in the way.  Opportunity is cleverly disguised as hard work.

Here’s a look at my opportunity to do a deal that has temporarily blown up in my face.  I have to keep reminding myself “it is a temporary setback”.  Here’s the deal: I bought a piece of junk house.  I had resold that house for a tidy profit about one week after getting it under contract.  Mentally, I’ve spent that money.  Unfortunately, there are massive issues with the title or “deed” to the property.  The person I’m buying it from is the spouse of the deceased owner who was never put on title.  The notarized will was not recorded and the estate not probated.  I took a mobile notary with me to have six different people sign affidavits of non interest.  NO ONE SIGNED!  I can use a “quiet” title technique to close this deal but it takes 90 days to complete and I’ve got a closing set in 12 days to the new buyer and my “tidy” profit.  AARGH!  There is no testimony without a test.  I am being tested.  Two other investors tried to do this deal before I got wind of it and they couldn’t make it happen.  I can and I will.  I just need to figure out how to expedite this closing.  I will have to keep you posted.

This is why I am such a proponent of education, training and mentorship.  The more you know, the more ways you can put a deal together.  The two previous guys walked away after the first bump in the road.  I’ve cleared that bump and several others and I’m on the precipice of closing that deal, and don’t forget the “tidy” profit.  I’ve gotten further because of my training and education.  Get started on your training at Cash in on the Biggest Financial Windfall in America’s History!  Education is the key.

Back to my friend.  He will do fine.  He’s sharp and he is motivated.  That motivation may be fear but that’s okay.  Just remember to take action.  Action is the great fear killer.  It works every time.

Hope you enjoy.  Don’t forget to leave a comment.

Why do I want to mess with a code violation house?   Isn’t it just a piece of junk?   Maybe not.  Perhaps the house is okay but the yard is trashed real bad.  Even if the house is a complete junker, don’t worry.  What we’re addressing is the fact that these houses rarely have any other investors looking at them.  That means you’re dealing with NO COMPETITION.  These houses typically belong to motivated sellers who don’t know what to do.  A typical fine for just cutting the grass and removing debris is around $500 per violation.   As the fines pile up the home owner (who may be out of town) may not have a clue what to do.  They may want to sell but only know how to call a realtor to “list” the property and may not get a warm fuzzy from the realtor due to the condition of the house.  These home owners are looking for a solution to their situation.  This is where you can help them and make yourself a pile of money.  The way to make money is to find a problem and then find the solution to that problem.  People will pay you big bucks for the answers to their problems regardless of the field.  It could be real estate or how to make a car that runs on water, or how to get tough stains out of clothes, or how to write blogs , or how to meet people, or how to wash your dog and not get wet or …………………………   Okay, you get the picture.  On this site we deal with helping the homeowner get rid of a real estate problem and you get paid handsomely for it.

If you go to check out a code compliance house, take a friend (the house may have “squatters”).  Also take a flashlight, bug spray, boots, camera, hammer, pry bar, and a hat just to mention a few things.  A complete list is spelled out in the training package at  Get Paid to buy Pretty homes in your area now!  This package covers how to acquire pretty houses and the ugly dog house.  There’s money to made in each category.  Don’t get hung up on an ugly house that reeks of cat urine.  That is the smell of money.  The more it smells the more you’ll make.  One of the first houses I bought and flipped, had cat urine odor so bad the person looking at the house to possibly buy it, had to leave after 30 seconds inside.  I didn’t know he left the house because my eyes were watering so bad I could barely see.  Two weeks later that same person bought the house and I made about $15,000.00 net.  Do you know how many eye drops you can buy for $15,000.00?

Had you ever thought about looking at code compliance houses?  Look where there is less competition.  Get some training.  Order this package Get Paid to buy Pretty homes in your area now!  It’s embarrassing how inexpensive it is to order.  Remember:  You don’t know, what you don’t know.  Get educated, trained. 

Your comments are always welcome.

ps  The stock market dropped about 10% in the past 2 days.  Real estate didn’t.  Hmmmmm!

What happened to: this is a great country and together we can make it even greater.  Please don’t pound me in the ground with how terrible things are in our country or that “rat” who is my opponent.  I take offense at bad mouthing our country.  Okay, it’s not Disneyland for any of us and we have to put forth effort.  The cool part is; if you put forth that effort you stand a good chance of succeeding.  Nowhere does it say you are guaranteed success.  You are guaranteed the right to take a shot at success.  If you fail, too bad, now pick yourself up and try again.  The next time, you’ll be wiser for the learning involved in the failure.  I understand Abraham Lincoln went broke and failed many times on his way to the White House.  Walt Disney went broke 8, that’s right 8 times before getting Disneyland going.  I sort of went off on a tangent.  Oops. 

I guess my rant is due to an overdose of negative campaigning ads.  I used to listen to “talk radio” and the news stations during the day.  I would get so bummed out from all the negative stuff, it was affecting my attitude.  I have switched to sports radio (that’s pretty depressing here in Kansas City, the Chiefs are currently 1 and 7) or self improvement CD’s to help me keep a positive mindset.

What does any of this have to do with real estate investing?  Don’t get bogged down in the negative quagmire.  There are TREMENDOUS opportunities in real estate right now.  Get educated so you don’t make costly mistakes.  Plug into real estate investing groups and engage in the process.  It’s not all in the books.  It’s a good place to start, but get a mentor, a buddy system, someone to “bounce” ideas off.  Check out the information in the following link and know it’s a process. Real Investment Mentorship & Coaching  When you went to school, they didn’t give you a diploma the day you enrolled.  You had to study, prepare and practice.  There were other students doing the same thing and you had to compete against them and yourself to get that grade.  Think of real estate training as a school for real life stuff.  Sometimes you get an “A” sometimes you get an “F”.  In real life you don’t get a certificate for participating.  You either succeed or fail.  There is learning in both outcomes.  The point is, TAKE ACTION!  If someone confronted you and told you to move or they would smack you with a stick, you would move quickly or suffer the consequences.  You may not know exactly where to move too, but you would take action immediately and then assess later.  Welcome to life.  Move, or I’m gonna smack you with a stick.  Take Action!  Do something.  Learn something.

I’m Gary Hard, and I approved this message. (couldn’t help it)

As always, your comments are welcome.  Remember, engage!