Ya'll do realize the irony of asking the question, “I know you’re in a hurry, but is there any quick advice you can give me about how to get started?”, right?

Because I get asked some version of that question at least 100 times a year, always by a newer investor hoping that there's some wisdom I can drop on them in the time it takes to get from the elevator to my car when I'm running from one event to another. Wisdom, preferably, that will make their entry into the business rapid, painless, and above all profitable.

The irony is that there IS no single answer to the question, "How do I get started?".

In order to properly get into that topic, I'd need to know about you: your goals, resources, preferences, exit strategies, needs, wants, and and and...and in no circumstance would that be "quick" advice.

If there were such a thing as "quick" advice, there would be no need for mentoring programs like Fasttrack to Financial Independence. Or, for that matter, for 4-day bootcamps, or REIA groups, or any of the other support systems to which we are all so devoted.

Without knowing anything else about you other than that you don't seem like a crazy stalker who's following me out to my car to kill me, I can only tell you, GENERALLY, some of the things successful people when they get started. I can't tell you what deal to look for (until I know what you plan to do with it) or how to get money (until I know your credit score) or what to pay (until you give me the A ... Read More…

Lease Options and Subject Tos, aka “Getting the Deed” are two very popular ways to purchase real estate with little or no money down. Acquiring investment real estate can be handled with many different approaches, but these two techniques can be implemented with little or no money down in most incidences.

A lease option is a technique which involves gaining ‘control’ of a property, but not owning it. It is the right to possess a property now and purchase that property at some future date with terms you define when you buy it.

A “Subject To” is getting the deed to a property without getting a mortgage for the home. Instead, the seller signs over the deed to his home ‘subject to’ the existing mortgage. The buyer in this case makes the mortgage payments on the old loan, but does not need to get a mortgage themselves to acquire this home.

Both of these techniques usually require little or no money down.  In both of these techniques it is possible for the buyer to get money from the seller or the purchaser (or both!) in the beginning of the transaction. These techniques, when used properly, will provide for huge profits. They are both awesome, and when used hand-in-hand by investors are almost an unbeatable pair!

This short article is not meant to give details of each technique, but rather to show when you could consider either of them.  If you don’t understand how to document and protect you ... Read More…

Does this sound like you? 

• You love going to association meetings and webinars, and hanging out in online fora reading about, asking questions about, and discussing real estate.
• You own several home study courses.
• You’ve been to multiple long-form workshops, seminars, and boot camps.
• You haven’t done a deal. 

If it does, I’ve got some good news and some bad news. 

The good news is, you’re not alone: 80% of all real estate newbies are in exactly this position. The bad news is, 80% of real estate newbies will never get out of this position. 

Now, I’ve never seen an actual study that says that only 20% of people who learn about real estate will ever do anything with that knowledge, but I CAN tell you that it’s a number that’s agreed upon by people who are in a position to observe (and fret about) the phenomenon. 

Group leaders and gurus who’ve been around for a while will tell you the same thing—about 1 out of 5 people who start their real estate education will never take it out into the real world and use it to make money. 

So what do we do with this sobering statistic? 

The first thing we should do is ask, “Why”? What is it that the 20% has or is or does that the other 80% doesn’t? 

Again, there aren’t studies that I know of that explain this, but I have a theory, and it goes like this: 

There are several psychological stages that a new i ... Read More…

Building wealth is all about the ROI (Return on Investment). Making your money work for you instead of just stock-piling it and hoping it will be enough to retire you.  As with any type of investing there is risk involved in being a real estate guru. But it has been my experience that the benefits far outweigh the risks. 

One of the most advantageous things about real estate investing is the ability to use leverage instead of cash to do your deals.  

Let’s say you have $50,000.00 that you would like to invest. You find a rental property selling for $60,000.00. The fair market value of the house is $70,000.  Banks will generally loan 70% of the fair market value. Therefore, you could get a loan for around $52,000. You use $10,000 of your “investment” money and purchase the rental property.  

If it’s a 3-bedroom house in a fair neighborhood.  The house would easily bring $750 per month or more in rental income. Yes, there are expenses—taxes, insurance, the payment on that mortgage, vacancy, maintenance. But even after all that, in effect the $10,000 you invested in purchasing this property is giving you a return of 15%.  How many other investments in your portfolio are showing you that kind of return? Don’t forget, you’ve only spent $10,000 of the $50,000 that you are planning to invest, so you can do it 4 more times. 

Another super quality of buying real estate is you earn that ROI tax deferred. ... Read More…

Securing the debt financing to purchase investment real estate has been fairly easy over the last decade as we have been in a long period of plentiful capital and historically low interest rates. It seems you could find lenders in every direction, ready to lend on a good investment property but as recently as a year ago, we started to see a shift. Interest rates had been climbing for a year or so, and newer, inexperienced investors started defaulting. The credit markets and private capital providers alike started pumping the breaks. So how do we as RE Investors, secure the debt financing to invest in today’s environment?

First, you have to start with a “good deal”. You would be shocked at the number of times, potential borrowers fill out an application for a loan on a property that has no chance at profitability. If you are a newer investor, educate yourself on what makes a deal a “Good Deal”. Attend your local REIA meetups, shadow a successful investor, JV with someone more experienced, hire a coach to teach you. Don’t just grab a contract and assume it will be profitable for you. When you present a “bad deal” to a potential lender, you immediately lose credibility. Let’s face it. No one wants their money to be used on your practice.

Next, you need to have your ducks in a row. What I mean by that is, you need to have the project planned out and your personal and business finances in order. Look, I was broke when I sta ... Read More…

Real estate investment, whether in residential or commercial properties, is a multifaceted endeavor that demands careful planning, strategic foresight, and a keen understanding of market dynamics. Among the myriad of professionals that investors may engage, architects play a crucial role in ensuring the success and profitability of these investments. This article elucidates when and why real estate investors should consider architectural services, highlighting their benefits and the scenarios in which their expertise becomes indispensable.

1. Property Acquisition and Due Diligence

Before acquiring a property, investors must conduct thorough due diligence to assess its potential and feasibility. Architects can provide invaluable insights during this phase by evaluating the structural integrity of existing buildings, identifying design flaws, and estimating the cost of necessary renovations or upgrades. Their assessment can reveal potential issues that might not be apparent to the untrained eye, such as compliance with zoning laws, building codes, and accessibility standards.

2. Maximizing Space and Functionality

In both residential and commercial properties, efficient use of space is paramount. Architects excel at optimizing floor plans to enhance functionality and aesthetic appeal. For residential investments, this might involve redesigning interiors to create open-concept living areas, adding extensions, or converting basements and attics into livable spaces. In comm ... Read More…

Many investors like buying rental properties to make passive income. Passive income is money you earn without having to work for it every day. Owning rental homes or apartments means you can collect rent payments each month without doing much active work.

Take the story of Jim and Cindy, for example. A few years ago, Jim inherited a small two-family home from his grandparents. At first, they weren't sure what to do with it. But after fixing it up, they decided to rent out both units. To their surprise, the rent covered the mortgage payments with some left over. They had stumbled into passive income!

Motivated by this experience, Jim and Cindy used their savings to purchase another rental property a year later. As the properties started building equity over time, they began exploring ways to diversify their investments and revenue streams.

If you already own a few rental properties like Jim and Cindy, you wonder - should I buy more properties, or try making passive income in other ways too? There are several options to consider beyond just more real estate.

Buying more rental properties has advantages. You already understand how it works. The more properties you have, the cheaper it can be per property for things like repairs and property managers. Real estate also tends to go up in value over time, protecting you from inflation. 

However, it's usually smart to "diversify" your investments across different asset classes, too. That way, in times when real estate doe ... Read More…

The other day I saw one of those so called “cutsey” commercials where the narrator talked about the dread of the “Monday morning blues” and 5 more days till the weekend. 

I hate those commercials as it always seemed to me that some ad agency is implying that the majority of the American people hate their jobs. 

To me that is such a sad state of affairs, to spend a good part of your life doing something you hate. I always spoke to my kids when they were young about what were their interests and  what do they really have a passion for. And then the conversation would be, how and what they needed to do to be able to do to end up doing what they love. Hopefully most Americans at the very least like their jobs. 

I sincerely hope you like what you do, as well as like the people you work with. After all a good part of your life is spent working so you might as well enjoy it.

But if you are one of those 5/7ths people, who live for the weekend, and yearn for something better, something you enjoy and can start doing part time, real estate investing may be for you. 

There is no business quite like real estate investing. You can control large amounts of property with small amounts of cash and safely leverage your way to real wealth and prosperity. 

But you need to do it the right way. Educating yourself as to the proper way to structure deals that benefit you and the other parties involved is of vital importance. Also learning how to manage and renovate properties is also of the ut ... Read More…

"It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something." - Franklin D Roosevelt

If you measure your key metrics you can manage the performance of your business, AND you can see problems well in advance of when they might show up in revenue or profit figures.

Each and every business has key performance metrics [Key Performance Indicators (KPI's)], some of which are common to other businesses, some are industry-specific, and some companies create their own KPI's.

These sort of things are our bread and butter, when working with small businesses tax pro.

Do you need help?

Financial metrics are often common to all businesses. Some examples include:
* Average transaction value.
* Gross profit margin.
* A measurement of a company's efficiency during the production process.
* How much is left over after COGS.
* Gross Profit divided by Total Revenue.
* Net profit percentage.
* The amount of profit for every $1 of revenue generated.
* Net Profit divided by Total Revenue multiplied by 100.
* Debtor days or receivable turn days.
* How long your customers take to pay you. (The sooner your customers pay, the sooner you can get that cash working for you.)
* 365 (days in the year) divided by (Sales on credit or invoice divided by Average Accounts Receivable).

More industry-specific KPI's might include:
* Table turns per night.
The number of times a restaurant is able to sit customers at a table.
* Utilization.
The number of hour ... Read More…

 John Wires and James Gregg chat with Dave Green from Accurate Title in Episode 004 of the MAREI PartnerCast. Covering a ton of issues that Real Estate Investors: Title, Liens, Foreclosure Sales, Tax, Sales, Title Insurance, Virtual Closings, Online Earnest Money and More. Did you enjoy our PartnerCast? Be sure to give us a like and to make sure you don't miss a future PartnerCast, subscribe to our Channel.