I read an article yesterday and it reminded me of some the things you need to think about as your growing, building or starting your investing business.

• Forget about flipping and rent

Unless you’re buying real estate at basement prices or your selling on terms, you should plan on keeping it as a rental property.

• The purchase price is just the beginning

Don’t forget about the closing cost, fix up costs, holding cost, cost over runs etc.  If you don’t factor in all the other cost, your going to have issues

• You’d better have cash

One of the things I have been preaching is that fact that investment money is hard to get.  If you want to survive and thrive in this market, plan on being a master at creating your own loans.

• Know your market

Know the trends of your market and be careful of a Micro and Mini Market.  These are smaller markets inside a bigger market.  If you’ve seen houses on one block for 200K and then houses two blocks away at 60K, these are Micro and Mini Markets and they can burn you if your not aware of whats going on inside your market.

• Know your tenants

The current economy is producing tough economic situations.  Don’t think that you have to put the first Tom, Dick or Harry into your place, qualify them and make sure your happy with what you see.

• Investing brings responsibility as well as rewards

At the end of the day, real estate investing is a business.  If you’ll treat it like one and make sound business decisions in this market.  You will have a tremendous increase in personal wealth in the long run.

Click on the share this link and forward this post to all your twitter followers and facebook frineds.  Then leave me you thoughts and comments in the comments section below.

Now Subscribe to my RSS channel so you don’t miss anything.

It doesn’t matter what type of property your buying, Residential or Commercial.  If you holding them long term both require property management skills.

I learned how to manage my properties from a tenant who ran me ragged for almost a year.  They submitted an application and on paper they were pretty strong but 28 days later the wife called to tell me that her husband was injured at work and they were very sorry but they couldn’t make the Sept payment and asked if I could work with them.  “Sure”

One month of no rent turned into several.  Each month I got a new sad story and I fell for everyone. I thought I was being a decent person and in the end all i did was hurt them and myself.

Treat your investment property management like a business.  As hard as it may seem you need to remove the emotion and treat it like a business.  Rent is due on the first.  If not in my hot little hands by the third (check your local laws) then a three day to pay or get out is sent by certified mail.

I have learned that tenants will push you just like children, if you’ll draw a line in the sand early, it will make the management a whole lot easier.

By the way Kevin J was my tenant mentor.

Click on the share this link and forward this post to all your twitter followers and facebook frineds.  Then leave me you thoughts and comments in the comments section below.

Now Subscribe to my RSS channel so you don’t miss anything.

Getting investor money is not easy these days but if you’re creative and know how financing works you’ll have access to as much money as you need.

To find the ultimate investor loan look no farther than the property itself.  Today Seller Financing is the ultimate investor loan and here are some reasons why;

1. It’s easy to get
2. investors know that a fast sale will require some type of seller financing
3. doesn’t affect your credit report
4. do as many deals as you wish
5. sell all or part of the income stream for cash
6. create your own terms (interest rate, amortization rate, etc)
7. collateral based / not credit based
8. it can be traded / borrowed against

In my new video (Click Here) it talks about the need to focus on the paper in today’s market.  The sellers paper or seller financing will produce the ultimate investor loan.

Click on the share this link and forward this post to all your twitter followers and facebook frineds.  Then leave me you thoughts and comments in the comments section below.

Now Subscribe to my RSS channel so you don’t miss anything.

What is the number one problem for every real estate investor?  MONEY!

Twenty years after I started in real estate investors are still scrambling to find money for their real estate deals.  A few days ago I talked about having to go back to my real estate roots to find solutions to my everyday financing struggles.

Twenty years ago a flier showed up on my desk that said, “close more deals without any bank financing.”  I called the number, talked to a woman and bought a course on Seller Financing.

What is Seller Financing?
“Seller Financing” or “Owner Will Carry” are the magic words that make any product or service more salable.  In real estate, financing is created between the buyer and seller.  The seller agrees to receive their equity or profit in the form of monthly payments with interest over time (paper).   To create this type of transaction, a promissory note (IOU) is signed between the buyer and seller.  The promissory note is called the debt instrument.  A lien is then place on the property.  The legal name for this lien is Deed of Trust or Mortgage.  The lien is called the security instrument.  The buyer (borrower) makes monthly payments for a specific period of time at an agreed upon interest rate.  If for some reason the buyer (borrower) stopped paying the seller (lender) their payments, the lien (security instrument) allows the seller (lender) to foreclose and take back the property from the buyer (borrower).  That was a mouthful and I wrote it that way so you can see who the players are when seller financing is offered.

This created financing between buyer and seller is also called real estate paper.

With the collapse of the housing market together with the credit crisis, getting any type of real estate loan has proven difficult.  Those who were labeled “strong borrower’s” are having to jump through countless “documentation hoops” only to find out in the eleventh hour that their loan has been denied.

If you want to compete in today’s real estate investing market, you should arm yourself with the understanding and mastery of seller financing or real estate paper.  When you understand the time value of money, interest manipulation, discounting, defaulted real estate paper, compounded interest and yield, you’ll open up a whole different world to real estate acquisition.

If you have a real estate question feel free to ask it.
All you have to do is click on the contact us tab and submit it.

Share your comments in the comments below and then click on the share this link and forward this post to all your Twitter followers, Facebook friends, investor list and clubs.  Then subscribe to my RSS channel.

My journey back to my real estate roots has reminded me that “Real Estate Paper” is the key to succeeding in Real Estate and here is the proof.

I want to show you a letter from GMAC

$75,000 Reduced To $6,000

The owner took out a $75,000 2nd mortgage on the property.  I know how to manipulate the financing and because I understand the “paper principles” I was able to get the debt settled for .08 cents on the dollar.  The best part is that GMAC will accept the $6,000 as “complete satisfaction.” which made my seller extremely happy.

In the comments below, guess what it cost me to control this deal?

Click on the share this link and forward this post to all your twitter followers, Facebook friends, investor list etc.  Then subscribe to my RSS channel.