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Well today is “Black Friday” which is the beginning of the Christmas shopping season.  It’s called Black Friday because this is typically when retailers go from red numbers to black numbers on their balance sheets.  I’m not sure how this translates for real estate investors.  It’s sort of business as usual.  People are selling homes, people are buying homes.  This year with the economic conditions, people are a little hesitant in their decision to do something.  This drives me nuts.  Either do or don’t, but make a decision.  Be proactive not reactive in your situation.  Once you make a decision, regardless of which way you decide, things will start to “line up” for you in accordance to your decision.  But you MUST decide.

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!

This week has been an “interesting” week.  This was one of those weeks that tests your fortitude.  That’s when you find out if you’re in the correct line of work for yourself.  Anyone who says they’ve never had a bad day in their work is either a liar or has access to some really good drugs.  I was at a “global business fair” in honor of Global Entrepreneurship Week being held at one of the community colleges in the area.  First of all, I didn’t know there was such a thing as Global Entrepreneurship Week.  I had a small booth there peddling what else; real estate investment training and mentorship.  Students would come by and ask questions to get their “task card” punched.  One of the questions went something like this: What do you consider to be the most important thing about going into business for yourself?

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.

As I write this post, I look back on the day and go wheww!  It’s been a roller coaster ride today.  I dig real estate investing.  I get to come and go as I please; correction I don’t report to any type of supervisor.  This is both a blessing and a curse.  The blessing is this; I get to call my own shots.  The curse; I get to call my own shots.  How paradoxical!  The greater the risk the greater the reward.  With great power comes great responsibility.  Okay!  Enough of the dribble, get on with it.

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.

Here’s a place to look for deals that other people probably aren’t even thinking about.   It’s called Code Compliance.  What the heck is Code Compliance?  The Code Compliance Department of every city and county in the United States issues “compliance citations” or “fines” on properties that may be abandoned, or have high grass or vegetation, broken windows, collapsing roofs, large amounts of trash or abandoned cars,  etc.  These kinds of situations attract complaints from neighbors in the area.  They are not only unsightly, they represent a potential safety issue if kids start playing around them.

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!