Keep it Simple

Aug 31st, 2010465 Comments

Addicted to Real Estate

While writing this book, I tried to simplify things as I really see them, allowing the reader to understand that the world of real estate investing is not as difficult as it seems. I hope to inspire you to roll the dice on real estate and take the chance of a lifetime when it presents itself.

“Create your own destiny or someone else will create one for you.”
—Marshall Sylver

Getting rich is hard and getting rich fast is even harder, but getting rich slow the way I describe in this book is very possible if you take your time step-by-step to make it happen. You realize that you’re most likely going to be making the journey to 2022 whether you execute my plan or not. One day twelve years from now, 2022 will creep up on you pretty quickly, and you may find yourself in a situation where you didn’t do anything, which is much worse than trying my plan. Since you will be going to 2022 anyway, you might as well try by buying one house and see how it works out for you. I always say sometimes you win and sometimes you learn. The worst thing that can happen is you’re going to learn a lesson about real estate on your first house.

Never lower the rent – Addicted to Real Estate TV

Aug 30th, 2010376 Comments

Addicted to Real Estate TV Show

In this video I share with the viewer my strategy for negotiating with new tenants to make sure you never lower the rent. This system will pay big rewards when its used properly so pay attention and lets get busy. Remember Da rent stays like a before.

Addicted to Real Estate

Everything is always for sale all the time

Aug 30th, 2010448 Comments

Addicted 2 Real Estate - Everything is always for sale

When you practice what I preach about calling all the signs from the commercial buildings that you will find, you begin to learn a funny thing. Many people own these buildings won’t talk to you but rather have you put an official bid in through the realtor. If you’re really trying to sell a building, that makes absolutely no sense to me. Everything I have is always for sale all of the time. There is always a number that I would sell a building for; if you don’t have that attitude, I don’t understand where your head is. Don’t fall in love with real estate, and don’t fall in love with a business that you’re running out of a piece of real estate. Everything should always be for sale because what you have could be worth a lot more money to somebody else who has another reason you’re not interested in. I would never turn down a meeting with a prospective buyer as my door is always open to have a conversation with people like that. Talking to people and making contacts in this business is critical to being successful.

In 2007 I looked at a property that was for sale for $1.5 million that was a mixed-use property with thirty-something units. It was a little bit of retail, industrial, and office space all put together in one property. I offered the guy $1,350,000 and expected him to carry a $250,000 second mortgage making the sale price for the property $1.1 million. I would put the appropriate down money on a $1.1 million purchase and get a mortgage for as much as I could while asking him to carry a $250,000 second mortgage. He treated me like I was an undercapitalized buyer who had no right to even bid on his building, and I told him he was right but that didn’t mean I couldn’t get the deal done. He gave me one meeting and then told me he wasn’t interested in carrying any paper or having any more meetings with me.

I recently noticed that the property was for sale for $1.1 million some two years after I looked at. I called him up to tell him I was still interested, and he said that the only change he had in his mind was the price of the property and now he was looking for cash offer. What kind of jackass would even say anything like that to a prospective buyer? Why did he care where the money came from, whether it’s my own cash or some of my cash and an 80 percent mortgage? If the owner had just taken my deal that I originally offered him, he would be up $250,000 today in a second note with a full-price offer as it stands now. Knowing I was out there for the last two years, he could have easily called me up before he even lowered the price to try to open up the negotiations with me again, but no phone call ever came.

It amazes me that a person with no business skills could have ever acquired the property in the first place. Maybe he has a superiority complex or maybe he thinks I’m crazy. I frankly don’t understand at all what he could’ve been thinking. I told the guy two years ago I owned buildings of larger value than this particular piece and that alone should have qualified me as a person capable of buying it, but he apparently wasn’t impressed. This is why I always say everything is for sale all the time because you just never know what kind of deal you can make and what’s going to happen.

Addicted to Real Estate

Don’t fall in Love

Jul 30th, 201035 Comments

Falling in love with a real estate deal can be the kiss of death. When you work on some of these long hard commercial properties and the deal seems to take forever, you tend to get attached to the building. You work on something so long it tends to become somewhat of an obsession, and the longer you’re involved in it, the harder it is to walk away. I found myself in this situation more than once where I wanted the deal so bad I was thinking of making concessions I maybe should not think of offer- ing. That’s why I suggest you be aware not to fall in love with the real estate deals you are working on.

When I chase residential buildings to purchase, the success rate of closing these deals is very good, but the commercial arena is completely different. I don’t know if it’s me or the deals I am chasing or if its commercial real estate in general, but I have had four deals fall through for every one that went through. It can weigh on you over the years as you write contracts and incur lawyer fees and spend tons of time working on deals that don’t come to fruition. If you find yourself in a situation where the smartest thing for you to do is walk away from the deal, you can feel good about the fact that at least you gained some knowledge while working on the one that didn’t go through. Sometimes you win and some- times you learn is a good way to look at a deal that doesn’t make it to settlement.

Tools in the Toolbox

Jul 30th, 20101 Comment

When I say tools in the toolbox, I’m referring to all the skills that a real estate investor needs to develop over his or her career. Everything that you learn about this business essentially becomes a tool in the toolbox that you can pull out and use whenever you need it. Some of the things that I consider a tool would be a buy-and-hold strategy to purchase properties. The knowledge about how to acquire a mortgage using lending institutions is an essential tool to fi nance your next moves. Access to the multiple listing service and skills a realtor has are also important to getting things done in this business.

Other tools are construction skills, negotiation skills, communication abilities, management capa- bilities, and QuickBooks experience. Speaking of experience, knowing how a short sale works, a sheriff sale functions, an REO works, a “subject to” gets put together, and wholesaling can be accomplished are all important tools. The point to all of this is don’t let a sector of real estate worth knowing be ignored. Make an effort to learn everything that you can about each one of these sections of doing business. Every time I go to a real estate meeting and I hear somebody talking about something I don’t understand, I always go over and introduce myself. I really don’t like anyone knowing anything I don’t know, and that brings us to our next topic.

Alignment of the Mind

May 30th, 2010643 Comments

I believe that I have the ability to accomplish any task I set my mind to with ease and comfort. I’m not afraid of making a fool of myself or being laughed at if an idea that I have appears funny to some. I have to be confident in my plan to the point that I sound arrogant. I have to be brave enough to throw large deposit checks at a dream that may or may not ever come to fruition. I have to accept that there is a chance that I would lose my down money or end up in a legal battle fighting for it costing me even more cash. I call this type of thinking the alignment of the mind. Much like the way an athlete prepares himself for a big game, you have to prepare yourself to enter the commercial real estate world. As you discuss your plans with your family and friends, my guess is you’re going to experience a lot of negativity and pessimism. I can hear myself arguing with people who care about me, talking about my plans; while I may not have been able to convince them that the plans make sense, I was convincing myself with every comment I made.

I think it’s important to say your plans out loud to whoever will listen, and if you’re in a situation where no one will listen, then say them to yourself. That’s correct. I am saying to talk to yourself. You might find your talking to the most intelligent person in the building anyway. Sometimes an idea in your brain may make sense, but when you try to explain it to someone intelligent, it doesn’t come out so well. So keep saying it until it does. This process will help you come up with a plan that has a great chance of success. Talk it out. When people ask me about real estate, I tell them to go get a pillow. If you get me started talking about real estate, you’d better make yourself comfortable because I’m going to go on for quite a while. Keep telling yourself you can be the best at real estate.  Remember half of all landlords graduated in the bottom half of their class.

I have some other guidelines I try to follow and I would like to share them with you below.

Health:

Drink plenty of water.
Eat breakfast like a king, lunch like a prince, and dinner like a pauper.
Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.
Live with the three E’s—Energy, Enthusiasm, and Empathy
Play more games. I play poker often.
Go to the gym every day; don’t stay longer than an hour.
Read more books.
Sit in silence for at least ten minutes each day.
Take a twenty-minute walk daily.

Personality:

Don’t compare your life to others. You have no idea what their journey is all about.
Don’t have negative thoughts about things you cannot control. Instead invest your energy in the positive present moment.
Don’t take yourself so seriously. No one else does.
Don’t waste your precious energy on gossip.
Dream more while you are awake.
Envy is a waste of time. You already have all you need.
Life is too short to waste time hating anyone.
Make peace with your past so it won’t spoil the present.
No one is in charge of your happiness except you.
Realize that life is a school and you are here to learn. Problems are simply part of the curriculum.
Smile and laugh more.
You don’t have to win every argument. Agree to disagree.
Society:
Call your family often.
Each day give something good to others.
Spend time with people over the age of seventy and under the age of ten.
Try to make at least three people smile each day.
What other people think of you is none of your business.
Your job won’t take care of you when you are sick. Your friends and family will.

Country:
Respect and support the founding fathers of the United States of America.
Support the troops of the United States military.
Support democracies all over the world.
Beware of socialist and communists who want to change the USA.
Own a gun and be prepared to defend your country with your life if necessary.
Defend your freedoms at all cost.
Life:
Do the right thing!
Get rid of anything that isn’t useful, beautiful, or joyful.
However bad a situation is, your brain has the way out if you just use it.
No matter how you feel, get up, dress up, and show up.
The best is yet to come.

Page 49 of 49« First...203040«4546474849