What is Your Why?

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By Grant Trevithick

Are you interested in becoming a real estate investor?  Do you want to be your own boss?  Keep all the fruits of your labor for yourself, instead of making some company or someone else rich? Do you want the freedom of owning your company, working whenever you desire?

Most of us have watched the TV shows of other people buying and flipping houses. It is amazing to see that someone can search an entire city, find the property they want, do the research to determine what the offer should be, negotiate the deal to purchase the property, secure the financing, close on the purchase, prepare the repair budget, do all the repairs, market the property, find the buyer, negotiate with the buyer, and negotiate all the requirements to finally get to the closing table. It is amazing that each of these investors do all this in only 50 minutes, with 3 to 4 commercial breaks, and always seem to make allot of money out of each house.

Wow, if it were that easy, I would want to jump into the game as well. It surely would beat having to get up each day and head into an office, attend meeting after meeting, make nice with an incompetent boss, do all my work, and then go home and do the same thing every day for the rest of my life. That does not sound like fun… so perhaps we can escape this trap by being a real estate investor. After all, I can make as much money as I make in a year doing 3 to 4 houses, at least according to the television shows.

WRONG!

Virtually every real estate investor that I have ever met only talks about the glamorous part of the business. They only talk about how much money they make and how much fun they are having. First off, most of the ones that do the talking are the ones that have never bought or sold a house (at least according to my experience).

The reality is there are two types of real estate investors: the normal real estate investor and the successful real estate investor.

The normal investor attends allot of classes and reads allot of books or online. They may even sign up with one of the local or one of the traveling mentors / gurus. They attend allot of the networking groups for investors. They may look at several properties, but have never pulled the trigger to actually buy one. They talk a good game, but are more of the posers than the doers.

Then you have the 1%. Yes, only 1%. The statistic that I heard many times is that the top 1% of all real estate investors make 98% of the money. My experience proves this out. We have trained thousands of people, while we have one of the industry highest success rates for those that have attended our training (allot of our students ended up buying houses), yet very few of them have the dedication that is required to truly be successful.

To be a successful investor, you must know What Is Your Why? Why do you want to become an investor? Are you doing this to escape a boring and a mundane life? Are you doing this just to become rich?  Why do you think that you want to be an investor?

Are you willing to work hard?  Are you willing to work 6 days a week, and sometimes 7? Are you willing to work on the holidays?  Are you going to be available to do business whenever your clients are ready? (My definition of an entrepreneur is someone that is willing to work 100 hours a week so you do not have to work 40.)

Are you willing to fail more times than you succeed? Are you willing to be discouraged and disappointed?

Are you willing to spend hours and hours in your car each day? Leaving early in the morning and get home late in the evening?  Are you willing to put 30,000+ miles on your car / truck each year?

Are you willing to work when it is 105 degrees in the summer? When it is thundering and raining? How about when it is 5 degrees and snowing?  Or icing?

Are you willing to clean out dirty nasty houses? Dealing with flea and bed bug infested houses? Drug houses? Are you willing to clean dirty kitchens, with food left over for weeks or even months? Scrub toilets that just plain nasty and disgusting?

Are you willing to listen to the most heartbreaking excuses and still ask someone to get out of the house? Are you willing to spend thousands of dollars on lawyers taking houses back when the seller uses the law to avoid paying their mortgage payments and yet do not want to move out?

Are you willing to be discouraged, wonder if you will ever buy and or sell another house again, feel like a total failure?  And still get out of bed each morning and do what has to be done?

Funny, they do not show that part of the business on television, do they?

If you cannot answer, “absolutely, sounds like fun” to each one of these, then real estate investing is not right for you.

If you can think of anything else to do that would allow you to reach your goals, then my best advice is forget being a real estate investor and pursue that other avenue. If, on the other hand, you cannot imagine doing anything else, then perhaps you might have what it takes to be successful.

Real estate investing is a marathon, not a sprint. If you do investing right, it is not a get rich quick scheme. Working our model, you can become a millionaire in a short period of time, if you are willing to work hard enough and run the business in an honest manner.

But only if you know your Why.  And only if your Why is strong enough.

For me, I love helping people. In our company, our first and primary goal is to always put our clients first and do whatever we can to help them. We buy houses that people are trapped in, giving them the financial freedom move on without the burden of their mortgage. We then sell those houses to good families that desire to have a part of the American Dream, owning their own home, but cannot get a mortgage from a bank (for whatever reason). We help investors by realizing their dreams of becoming a successful investor. And last but not least, we donate the first ten percent of all our profits to charity to help those less fortunate.

That is my why. That is what yanks me out of bed every morning, excites me to make each day as full as I possibly can, with me ready to contribute and help as many people as possible. Of course, along the way we make enough money to become financially comfortable, but our Company never makes money our number one priority. And I think that is what makes us successful.

What is Your Why?

Grant Trevithick, after a successful career in EDS and AT&T, is now the owner of Owner Finance Homes LLC and Owner Finance Academy LLC. Owner Finance Homes LLC operates throughout the Dallas-Fort Worth area in Texas, buying houses and selling with owner financing. Owner Finance Academy trains people to become real estate investors using owner financing. The Company is accredited by the Better Business Bureau with an “A+” rating.

TIPS FOR SUCCESS

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BY: MICHAEL POGGI, PRESIDENT OF THE MILLIONAIRES REAL ESTATE INVESTMENT GROUP

The Millionaires Real Estate Investment Group is a private investment group made up of 10,000 members and 2500 active investors. The focus of the Millionaires Real Estate Investment group is to invest in several areas of Real Estate and Businesses ranging from purchasing apartment buildings, building new construction homes, purchasing vacant land in fast growing areas as well as investing in businesses.

I have had decades of experience in Real Estate Investing. Throughout the years, I have had several ups and downs. I will share with you some of the tips that have allowed me to be successful in Real Estate and Businesses. I would like to save you from some of the mistakes that I have made and thus allow you to succeed early on in your career.

Take control over your Mind and Your Attitude – We all know that there are many things in life that you cannot control, but you can control your mind and your attitude. External forces have very little to do with success. Those who program themselves for success find a way to succeed even in the most difficult of circumstances.

Live life to the Fullest – Living life to the fullest is a lot like shooting the rapids in a rubber raft. Once you have made the commitment it’s difficult to change your mind, turn around and paddle upstream to placid waters. But it’s the excitement and adventure that make it all worthwhile. If you never make the attempt, you may never know the depths of despair, but neither will you experience the exhilaration of success.

I strive to live my life personally and professionally to the fullest. I do not allow mistakes or challenges to stop progress, when a challenge arises; I determine a solution and move forward. Do not let challenges stand in the way of your progress in beginning Real Estate or continuing in Real Estate, if you do you will be cutting yourself off from the huge success that you could achieve.

Leverage Your Money to Get Deals Done- Do not wait until you have all of the money for a deal in order to make that deal happen. There are so many ways to structure a deal. You can partner with someone else that has the money, and you do all of the work, Or you can put in half of the money and the partner puts in half of the money, or you can put down a down payment and let the seller hold the note etc.. Do not let lack of money stop you from getting deals done.

Don’t be Afraid to Change Directions When Necessary -It is imperative that we are not afraid to change directions when conditions change. I have been a Real Estate Investor for many years, and have seen the ups and downs of the market. I have always watched the market conditions to determine what strategies make sense.

It is not wise to hold on to a strategy when the numbers and the market conditions no longer align. Sometimes it is tempting to jump into a real estate investing strategy that no longer yields great returns due to the market when in reality the time for that strategy has already passed. For example, at the top of the market is not the best time to purchase rental properties.

There are strategies that fit every type of market. Our team researches and determines the best strategies to invest in and changes directions when market conditions deem necessary.

Grow Your Wealth Tax Free By Investing in Real Estate using a Self-Directed IRA- One strategy that has allowed me to gain tremendous wealth has been investing in Real Estate using a Self -Directed IRA.

An IRA, An Individual Retirement Account is a personal savings plan that allows you to set aside funds for your retirement. Investments made within these plans grow in either a tax-deferred or tax-free environment.

A tax-deferred account is one that is funded with pre-tax dollars which means in most cases that you get a deduction for your contributions. When distributions are taken from the account those funds are taxed. Traditional, SEP, and SIMPLE plans are referred to as tax-deferred accounts.

By contrast a tax-free account is one that is funded with after tax dollars, which means that you do not receive a deduction for contributions. When distributions are taken, there are no taxes incurred in a tax-free account. The Roth IRA and the Coverdell Education Plan are referred to as tax-free accounts.

The Self-directed IRA is a well-kept secret. You might not be aware that it is possible to invest in non-traditional investments such as real estate, mortgages, tax liens, mobile homes and other investments in an IRA. A truly self-directed IRA will enable you to use your investment knowledge and expertise to prepare for your retirement. A self-directed IRA allows one to make their own investment decisions from a wide range of acceptable investments.

I was able to grow my wealth from $500.00 to $1,200,000 by investing in Real Estate using a Self-Directed IRA. Imagine the difference this strategy will make in your life by allowing you to grow your wealth tax-free. You can learn additional strategies that have allowed me to be a successful Real Estate Investor in my book “Build Wealth Tax Free Profit Formula” that is featured on Amazon.

I have taught and mentored thousands of students over the years at my educational seminars and webinars. Please email our office to be added to our database to receive invitations to these events. We often partner on real estate and business projects when the numbers make sense whether it is your project or our projects.

Feel free to contact our office for additional information about the Millionaires Real Estate Investment Group. We look forward to getting to know you and finding out more about you and your business and how we can possibly work together moving forward. [email protected] 954-306-3586

Michael Poggi

Michael Poggi is a nationally recognized public speaker, established author, and professional investor, with nearly two decades of experience. Michael speaks on advanced wealth strategies and how to invest in Real Estate and Businesses the right way .He presents topics such as: house flipping, purchasing apartment buildings, and building new construction homes, development projects, purchasing vacant lots in fast growing areas and buying businesses in your IRA or your old 401K plan. He teaches people how to make their IRA self-directed in the true sense, so you can use it for real estate. He also teaches people and mentors students on how to make their IRA cash flow monthly tax-free as well as how to invest properly.

In addition, Michael is the president and founder of The Millionaires Investment Group, based in Ft. Lauderdale, Florida. There are 10,000 members of the Millionaires Investment Group and 2500 Active Investors. The Millionaires Investment Group holds a meeting on a monthly basis to network and partner on real estate ventures, and businesses. Michael’s company specializes in many aspects of commercial real estate, vacant land, development projects, new construction home projects and businesses. The group attracts top notch speakers from all around the country, who are featured monthly to provide additional education.

Michael is often a featured guest on the Money Talk radio show. His company, Build Wealth with Land, LLC, is one of the largest land providers in the U.S., providing hundreds of vacant lots to investors and builders yearly. Michael has bought and sold over 1000 vacant lots and houses in the last 10 years, tax free.

How to Purchase and Manage an Investment Property in Japan

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By Priti Donnelly

Real estate investments in Japan continue to attract foreign buyers from around the world for high yield, affordable prices and cash flowing rental income. But, in a foreigner-shy country that speaks mostly Japanese, conducting due diligence, negotiating and making an offer can be almost impossible. To complicate matters further, properties in the Japanese real estate market are sold within days, sometimes hours, making it more difficult to compete against local buyers. So, how then do foreign buyers successfully manage to invest in the market?

Find a Local Proxy/Agent

The first step is to find a local bilingual (Japanese-English) proxy/agent who will help you familiarize yourself with the property market. Look for someone who is available to you, communicates well and who can provide you with information in a timely fashion. Consider your proxy as an extension of yourself. Expect transparency about their services, keeping you informed at all stages of the purchase process and clearly explaining the management process. Don’t hesitate to ask for client references.

Familiarize Yourself with the Market

There is no need to travel to Japan to scout the area, unless you want to. Your experienced and trusted proxy will work with you to familiarize yourself with the market. They should have strong knowledge of locations, in particular, areas with population growth to ensure tenant demand. Ask about properties close to shopping districts, schools and hospitals where tenant demand would be higher. Another factor to consider is the age of buildings. In 1981, the building standards act changed their policies to ensure earthquake resistant construction methods. This is the turning point that some buyers look to when purchasing an apartment, although many older buildings built prior to 1981, have been retrofitted to bring them up to code.  Next, you may have a certain size and features in mind – one room with a living room, kitchen and dining room, close to a train station is ideal for a student, single or elderly person. Two or more rooms could suit a family. Of course, your budget and yield are naturally of significance.

Analyze the Numbers

Once you have a good idea of the features you have in mind, your proxy will send you analyses of properties to suit your criteria and break down the numbers (price, costs, yield, etc.) For example, with the exception of Tokyo, investment properties across Japan range from $40K to $60K at 6% to 12% yield. In the center of big cities, or first tier cities such as Fukuoka and Nagoya you can expect a yield of 6% to 8%. In second tier cities such as metropolitan Sapporo, you will find properties with a yield of 9% to 10%. In the third tier are smaller townships, albeit with good profiles, 10% to 12%, all net pre-tax. With an occupancy rate of 93% to 94% in these areas, you will generate immediate income of $250 to $400 a month, on average.

Submit an Offer

It’s easy to see why properties are sold within hours or days at the most in this market. As soon as you see something you like, notify your proxy to submit an offer on your behalf. It’s a good idea to have your agreements with your proxy signed in advance to save valuable time. Because properties are sold so quickly, you won’t likely have time to perform thorough due diligence on any particular deal before submitting your offer, but you should have enough information on your deal analysis to determine whether or not you want to submit your offer.

Conduct Due Diligence

If your offer is accepted, you will receive due diligence information from the real estate agent. One of the key items to look for is the accumulated fund, also known in some countries as a sinking fund. This fund goes toward a renovation/repair pool. Due diligence should be able to determine if the size of the funds pool is sufficient for building repairs. If lacking in funds, then the building report should show substantial renovations to the building to justify the shortage. If not, an experienced proxy will advise you to forego this deal. If you do submit an offer and then discover that you are not satisfied with the due diligence including tenancy history, building renovations or accumulated funds, you should be able to pull back your offer.

Seal the Deal

Once you are satisfied with the due diligence, your proxy is there to help you with the contract and deposit, required documents, deposit and settlement. On the day of settlement, your proxy will pay the rest of the funds on your behalf and the scrivener will perform the ownership transfer from the seller to your name. Within a month you will receive the equivalent of a Title Deed. Congratulations! You just purchased property in Japan from around the globe.

Manage Your Property

You have successfully invested in Japanese property. Now it needs to be managed. Most foreigners do not have a local bank account, physical address or local phone number and therefore, the two challenges are communication and banking. Do not worry. On your behalf, your experienced proxy communicates with the property/rent manager, building management company, tax authorities, and insurance company. The right proxy can also act as your bank account to pay the bills, receive rental income, and provide you with a monthly balance sheet and remittance/acceptance of any funds from overseas.

Finally, what you may not know is that unlike many other countries, there are currently no laws or regulations in Japan prohibiting the purchase of real estate by foreigners. This allows 100% ownership of deeded, freehold property, registered to a foreign address. Currently Japan is the second largest real estate investment market in the world, only behind the U.S.

Priti Donnelly, Sales and Marketing Manager, Nippon Tradings International

Priti Donnelly – Manager, Sales and Marketing

Nippon Tradings International (NTI)

http://www.nippontradings.com

 

Luxury Portfolio – Million Dollar Houses are the Shortest Way to Riches

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By Laura Alamery

Luxury portfolio is definitely the quickest way to real estate riches. Have you ever heard the statement, “the surest way to make $1-Million in real estate is to invest in a $10-Million home?” There is definitely some truth to that. The great news about it is that you do not need to have one million or 10 millions to invest in a luxury portfolio – like most of the strategies I teach about real estate investing, it is a matter of knowing how to control real estate.

Luxury Portfolio:

Many real estate investors have been engaged in luxury real estate investing for decades, keeping this as the best kept secret from the masses of real estate investors dealing mainly with “regular” real estate properties, unaware of the gold mine sitting right in front of them.

Mansions follow the same wholesaling principle as smaller homes: you can flip a mansion the same way as you flip a regular home, the only difference is the profit potential. Basically add a zero to your take home check.

There has been a surge in high-end and luxury flipping nationwide. Between 2011 and today, flips of homes valued at $1 million or more have risen almost 40 percent across the United States, according to RealtyTrac, the housing data company. Two main factors have contributed to this increase in interest on accumulating a luxury portfolio: the first one, with the real estate market collapse, Wall Street investors saw an opportunity in luxury portfolio investing and moved into the mid-market with so much money that they bought nearly every foreclosure in sight, mostly to rent out. The second factor has been the exponential increase of foreign investors in the US real estate market. Last year, Chinese investors spent $12 billion on U.S. real estate, making the country the second-biggest foreign investor, just behind Canada, according to the National Association of Realtors.

With so much money circulating in real estate investing from Wall Street to international investors, some areas are a sure bet for attracting high-end buyers either as owner occupants or investors looking to increase their luxury portfolio. These are some of the most popular cities for luxury real estate investing:

  • Beverly Hills, California
  • Manhattan, New York
  • Bel Air, California
  • San Francisco, California
  • Palm Beach, Florida
  • East Hampton, New York
  • Martha’s Vineyard, Massachusetts
  • Miami, Florida
  • Malibu, California
  • Denver, Colorado

However all metropolitan areas offer luxury portfolio opportunities – from major cities like Chicago, Dallas, Atlanta, to smaller up and coming cities like St Louis, Pittsburgh and Indianapolis, all have mansions and expensive homes flipping or investing opportunities.

Now the question is “how do I find luxury homes and buyers wanting these homes?” Like I stated earlier, the concept is the same: you can flip or own and rent out a luxury home the same way as you can flip or own a “regular” home. Motivated sellers are present in every type of real estate. However you have to be aware of a very important principle – motivated sellers of luxury homes do not place their houses in the newspaper, nor do they have “For Sale” signs posted in their yards, as do traditional sellers. The target audience of motivated sellers will most likely be experiencing one or more of what I call the “Five Major Motivators”: Death, Divorce, Loss of Job, Job Transfer and Illness.

Dealing with luxury homes involves a little of a shift in strategy thinking, although the concept of investing and flipping stay the same. Once you understand how to locate motivated sellers and high-end buyers, how to negotiate with them and structure the deals, even just one closing a year can yield more than most people can make on a regular job.

Would you like to learn more about Luxury Portfolio and Real Estate Investing? Check out my exclusive training at a very special price for a limited time only!

 

Laura Alamery

Laura Alamery has been a real estate investor and mentor for almost 30 years. She has been a pioneer of several real estate investing strategies before they became mainstream, from wholesaling to raising private money. Everything she teaches has been developed from personal experience.

She runs real estate clubs in several cities from Chicago to Atlanta and South Florida.

Her focus today is to streamline the real estate investing business by simplifying the process while exponentially growing the financial results. In other words, how to truly live a financially and active lifestyle, without trading time for dollars. Her signature program is Rapid REI Riches.

Read more about Laura and connect at Lauraalamery.com 

Seller-Carryback Note Terms

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By Bruce Kellogg

Introduction

It is well known among real estate investors that some of the best deals occur when the seller is persuaded to carry some, or all, of the financing. This article introduces the seller-carryback note, and provides a menu of terms that can be negotiated into the note. So far as drawing up the note is concerned, most closing agents ( i.e., escrow offices and attorneys) have what they call a “cookbook” of legally-correct note terms, so buyers and sellers need not be concerned with such details.

For reference, a sample installment note is attached. Additional terms can be added off the menu as desired.

Installment Note

1)        “Request for Notice of Delinquency” – This is actually not a term in the note. It is prepared in escrow and recorded, instead. Its purpose is for the senior lienholder(s) to notify the carryback seller in the event the owner is not paying them. It protects the seller by allowing them to jump in early to protect their interest.

2)        “Unsecured” – This also is not a term of the note. It should be inserted at the top of the note to indicate that there is no security instrument (i.e., mortgage or deed-of-trust) securing the note to the property. Its use is not recommended!

3)        “Late Charge” – Most notes have a “late charge”, such as 3% of the payment after 10 days past due. Some states have regulations for owner-occupied properties. Most investment transactions are not regulated in this way.

4)        “Due on Sale or Transfer” (“Alienation”) Clause

This term is included to protect the seller from the property being sold or transferred to a party other than the original buyer. After all, the secondary buyer might not be creditworthy.

This term has an enforcement feature wherein the seller can force a payoff or foreclose to recover the property. However, in order to be enforceable, this term must also be included in the security instrument (mortgage or deed-of-trust). Other note terms do not need to be included in the security instrument, but this one does.

5)        “Assumption” – If the parties desire for the note to be assumable, this can be included in the note. Usually, some criteria are included to protect the seller. Often, the note says that the seller’s approval “cannot be unreasonably with-held” when there are protections included.

6)        “Balloon Payment” – When a note is not “fully-amortized” such that a balance remains at maturity, this is called a “balloon payment”. If this applies, the note should be written to clearly include this feature to protect both parties from misunderstanding.

balloon payment

7)        “Option to Extend” – If a “balloon payment” is involved, writing an “option to extend” into the note could prevent a rough ending if refinancing or selling conditions are unfavorable. It could extend for a year or two with a fee paid to the seller, or a “partial-paydown” made.

8)        “Interest-Only” – describes the arrangement where the payments consist only of interest, and a “balloon payment” occurs at maturity.

9)        “Zero Interest” – involves payments of principal only, with no interest being charged. This term is a sweetie for buyers!

zero interest

10)    “Deferred Interest” – involves interest accruing to maturity, when both principal and interest are due. Although this helps cash flow, unlike zero interest it is very risky. Rapid appreciation will be essential for this to succeed, and losing the property is a realistic possibility!

11)    “Skip a Payment” – Sometimes, if the parties are relating well, it is possible to include a term allowing the borrower to skip a payment in the event of job loss, rental vacancy, or other misfortune. This can be made part of the note, or dealt with at the time. Including it ahead of time is preferable for a more stable transaction.

12)    “Substitution of Collateral” – Sometimes, an enterprising buyer will negotiate with the seller the right to move the note and secure it to a different property. This is usually done to sell, exchange, or refinance the property. There should be criteria stated to protect the note-holder, but approval “should not be unreasonably with-held” if the criteria are met.

13)    “Right of First Refusal” –Sometimes, an enterprising buyer will realize that the seller might decide to sell the note at a discount to raise cash in the future. Including this term gives the buyer first shot at buying their own debt back at a discount, effectively lowering the purchase price.

mortgage-4235937_1280

14)    “Graduated Payment Mortgage (GPM)” – is a note engineered such that interest and/or payments start low, then increase gradually over the years. It makes for easier ownership but can become a trap in the later years. For this reason, the Dodd-Frank legislation prohibits this type of loan on 1-4 unit owner-occupied properties, but it is still legal for investment property transactions of all kinds.

15)    “Shared Appreciation Mortgage (SAM)” – is a popular note term when prices are high and still rapidly rising, or when interest rates are high. The note is written so that the seller receives payments that are “sub-market”, but also receives a percentage of the property’s appreciation upon sale or maturation of the note. It is useful, but not very common.

Conclusion

Clearly, these note terms are not appropriate for every transaction, nor would sellers agree to all of them. The objective is for buyers to negotiate as many that are advantageous as they can!

Good luck!

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Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 36 years. He has transacted about 500 properties for clients, and about 300 properties for himself in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches. He is available for listing, selling, consulting, mentoring, and partnering. Reach him at [email protected], or (408) 489-0131.

The Housing Choice Voucher Program

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By Reggie Brooks

The Housing Choice Voucher Program, aka “Section 8” is a Housing and Urban Development Program that helps to insure that low income families, the disables and the elderly have access to safe and sanitary housing. These private market rentals would ordinarily be out of their financial reach but with assistance, these families can have access to housing where they can live with dignity.

Here’s How It Works…

In order to qualify for a Section 8 voucher, an applicant must apply to the program at a local public housing agency (PHA) that is an extension of the federal Housing and Urban Development (HUD) agency. The PHA will determine eligibility based on the applicant’s annual gross income and family size. Once the PHA has verified the applicant’s information with other families and approved the applicant for a voucher, the applicant becomes eligible for a voucher. In most cases, the need for assistance is greater than the resources provided to HUD and the family is placed on a waiting list until funds become available.

The voucher operates as a rent subsidy. Individuals and families who are approved for a Section 8 voucher may select a rental from the private market including an apartment, a townhome, or a single-family home.  While the PHA uses the amount necessary to rent a moderately priced home in the local market, recipients can choose to rent a home above or below that cost. They must make up the difference between the subsidy and the home’s rent. The subsidy does not cover the entire rent; recipients must pay 30 percent of their income toward their own rent.

What Does Section 8 Mean to You as a Landlord?

As a landlord, you may question whether or not you should accept a tenant with a Section 8 voucher. The program requires that the landlord must provide safe and sanitary housing for the tenant and adhere to the terms of the lease that both parties agree on.  As a landlord, these should be criteria you are already meeting. Additionally, Section 8 requires that rentals pass a housing inspection to be eligible for the program. The landlord is expected to maintain the property throughout the duration of participation in the program.

Participation in Section 8 has numerous benefits to a landlord:

  • Pre-screened tenants with verified income. The PHA verifies your tenant’s income and employment to ensure they can pay their portion of the rent. Some PHAs will turn away applicants with criminal histories. Combined with your own tenant screening process, you should be able to find excellent tenants for your rental.
  • High demand for properties. Due to a shortage of properties and an overwhelming number of applicants, demand for Section 8 housing is high.  Your property will also be listed on the Section 8 website for your area, providing free marketing to your target audience.
  • Guaranteed income.  Getting rent paid on time is one of the biggest hassles that a landlord faces, but in the Section 8 program, the rent subsidy is paid directly to you. Additionally, most voucher recipients will pay their portion on time as non-payment can risk their continuation in the program.

While there are some drawbacks for landlords, such as continuing with routine inspections to ensure the property is being maintained and some restrictions on how much rent can be charged, the benefits for a landlord are significant.

Reggie Brooks, is an international speaker, author and educator, dedicated to inspiring others to achieve personal success through real estate investment. He is also the #1 Vacant, Abandoned & Distressed Property Specialist in North America.

Having risen above a life of poverty, he has achieved what many people consider to be impossible. He went from making $36,000 per year at the local telephone company, to making over $40,000 per month in his real estate business. Today, Reggie delivers his personal philosophies for success at major business venues and expositions throughout the United States. Reggie attributes his success to faith, dedication to success, and to the invaluable coaches he has had along the way.

 

Benefits of Diversified Portfolio Benefits in International Real Estate

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By Matt Malouf

When it comes to investing in real estate, people tend to be vigilant about their investments options. What they seem to ignore is how the profit and growth ratio investing in real estate abroad can provide them with great success.

The world is a global village now and so it makes sense that people have started investing in international real estate. There’s a certain charm to this move but more than charm, this smart move can help strengthen your capital flows. We understand the importance of global investment strategy and it’s time that you too understand what this option can offer to you.

Most people hesitate to invest in international real estate because of geography. Real estate is generally a long-hold investment strategy and it’s the long distance that generally makes people uncomfortable while investing in international real estate. But there are certain benefits for global diversification on a real estate portfolio. Let’s look at a few.

Investment Diversity

Being a secure and hard asset, real estate has always been a preferred investment choice for people all over the world. With many fast-growing international real estate markets, this investment opportunity is too good to miss. Investors can enjoy low interest rates and avail a variety of lending options. And with a professional team to back you up, these investment opportunities can be the perfect addition to your diversified portfolio.

With this new financial step, you can have another stream of income. That’s the best part about this investment. It can generate income and even appreciate in value over time. The exchange rate can help you make a hefty promise every time. If you are investing in countries with a higher currency rate than the USA, your investment portfolio is surely going to enjoy the benefits. The change in interest rate also has a significant impact on making international real estate investments a lucrative financial move. Since each property has an intrinsic value, your investment would never go to waste. This is just one of the properties that set international real estate apart from other investment options such as stocks.

Risk Management

So what makes investing in international real estate such a glorious option? The best part of this move is the diversification of risk. When you put all your eggs in one basket, there’s a higher risk of losing it all at once. By spreading your investment over several international real estate properties, you can significantly reduce the risk. The real estate market is dynamic and always in transition. Even the slightest economic change can have a drastic effect on your investment choices. These effects can either be extremely beneficial for you or leave you at the brink of bankruptcy.

By investing in international real estate, you can easily diversify your portfolio and give it a global edge. Since the international housing market tends to operate differently, a decline in one market can cause a significant increase in the other one. With this contrasting nature of the international real estate market, you are bound to gain great benefits.       

Ancestral Roots

When you are looking for some international real estate investment opportunities, why not try and connect to your roots? For many of our clients, the first option for investment is mostly their ancestral country. Their way of paying tribute to their heritage is by investing in their ancestral country. This way, they can always have a place to go back to when they want to experience the life that their ancestors lived.

For many people, this is a lucrative option because it gives their children a chance to know their heritage. People whose ancestors immigrated to the USA often go for international real estate investments in their home country. This is a great reason for choosing the right international real estate. As long as the real estate market in your home country isn’t in a steady decline and is showing great potential, including it in your investment portfolio would be a good call.     

Recreational Value

Investing in international real estate doesn’t just create new income streams but also provides you with the perfect vacation home. So when you are looking for opportunities to diversify your portfolio, make sure you go for an option that can serve well as a vacation spot. Even though the main reason behind this investment is purely financial, buying the right property can also add a recreational value to your investment.

If you love the great scenery of ice-capped mountains of a vacation spot, you can turn this passion into a great investment opportunity. There are some countries that allow foreigners to own property and you must be prepared to take full advantage of this prospect. Contact MyLifeWorldWide.com and let our professionals help you get a diversified portfolio for international real estate.   

Cultural Diversity

This is a great opportunity to experience other cultures. Become a local at the place and you’d be able to explore the region to your heart’s content. Your overseas property can provide you with new experiences, enabling you to explore some other parts of the world. If you have the desire to experience cultural diversity, your international real estate portfolio can help you with that.

Residency Eligibility

Owning a property in a country can often make you eligible for residency and/or assist you in a naturalization application. With this change of status, many doors in the country also open up for you. You can get access to the country’s banking and financial services industry. You can use this opportunity to divide up your fortune and taking advantage of the profitable banking prospects.

Investment Security

Unfortunately, retirement funds in the USA are subject to some strict laws and many people have already bore the cost of these policies. Your retirement fund can come under the threat of lawsuits and creditors, hence leaving you vulnerable at the later stage of life. For availing the ultimate retirement fun with security, it’s imperative that you invest abroad. Your diversified portfolio of international real estate can’t be subjected to the laws of USA and even the IRA can’t attack them in any way.

Your properties in the USA might be at risk of lawsuits but your international real estate is insulated from this risk. This is one of the best reasons for you to consider investing in international real estate.

Your international real estate investment would never go to waste if you work with a professional. With their expertise in the industry and years of experience, MyLifeWorldWide.com can help you make some sound financial moves. With a diversified international real estate portfolio, you can yield great profits, without the usual risk that other investment options pose.

So make the best of this opportunity and make some sound investments overseas. Contact us at MyLifeWorldWide.com for more information and custom solutions tailored to your unique situation.

Matt Malouf, International Real Estate Consultant

MyLifeWorldWide.com

Clarity.fm/mattmalouf

Feel Like Your Branding Sucks? 5 Ways to Cure That Now!

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By Sharon Vornholt

Have you ever felt invisible in your marketplace?  If you can honestly answer yes to that question, I’m 100% sure it’s because your branding sucks.

Does this sound like you?

  • You feel like the best kept secret in town
  • Maybe you have a good reputation, but you’re not well known (we’re not counting your friends and family.
  • You’ve been at it a while and the customers you have are happy, but you just don’t have enough of them
  • You’re doing okay, but you know that’s just not good enough
  • You’re losing out to competitors because their marketing is better or they’re well known
  • You know something needs to change, but you have no idea where to start when it comes to branding

When someone has a strong brand it’s because they were in charge of building their brand.

What Are the Major Components For Up-leveling Your Brand?

There are a lot of components to a brand, but when you think about up-leveling your brand, there are 5 things to focus on first.

Remember that your brand is how people feel about you.

Here are My Top 5

#1.Your Compelling Story

People might not remember much about you, but at the end of the day, they will always remember a great story.  Crafting your compelling story is critical.  You want to put together your story in a way that compels people to want to work with you rather than your competitor.

Before you even say it….everyone has a story.

Maybe you didn’t live on the streets or have a near fatal illness, but YOU have a story.

#2.Your Customer Avatar

What exactly is this?

Your customer avatar represents the person that is your ideal customer or your dream customer. When you get clear on exactly who your ideal customer is, you stop trying to attract “everyone”.  Everyone is NOT your ideal customer.  When you are just marketing to the masses, what happens is you end up attracting the wrong customers.  You know – the ones you hate working with.

#3. A Great “About Me” Video on Your Website

You probably know that you need a great about me page on your website.  This page should also have your compelling story on it.  But did you know, that having a professionally produced “about me” video on your page can dramatically increase your credibility?

Now I’m not talking about a quick iPhone video. I’m talking about a quality professional video. (These can be quite pricey at times, but in this series you’ll find out how to get one.)

#4. Professional Photos

Don’t we all hate this one?

Most of us would rather have a root canal than have a professional photoshoot, however this is essential.  If you check around you can find someone to do this for you pretty reasonably when you consider the huge impact it will have on your brand.

#5.Your Authority Book

So, you think you don’t have enough expertise to write an authority book?

I want to tell you that just simply isn’t true.  If you have been in business for any length of time, you have a book in you.  Writing an authority book is the ultimate credibility piece.

Take a look at your competitors for just a minute.  Who in your immediate area has written an authority book?  I’m pretty sure that answer “almost no one” no matter where you’re located.

 

Sharon Vornholt

Sharon Vornholt is the owner of Innovative Property Solutions, LLC in Louisville, KY.

Sharon owned and operated a successful home inspection company for 17 years. She began investing in real estate in 1998 and became a full time real estate investor in January of 2008.

Sharon specializes in wholesaling, and is also an experienced landlord and rehabber.

In addition, Sharon is an internet marketer and also writes articles for several national real estate sites. Sharon is the author of a popular real estate blog called the “Louisville Gals Real Estate Blog”. For your FREE REPORT “Probates and Absentee Owners: Your Fast Track to Real Estate Riches”, stop by her blog at: http://LouisvilleGalsRealEstateBlog.com.

 

The Greatest Real Estate Investment

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By Jimmy V. Reed

Your Local Real Estate Investment Club could make you RICH!

By Jimmy V. Reed

I want to make money in real estate, but “I just don’t know how.”  Let me tell you, I cannot count how many time in 20 plus years of investing I have heard that.  I would always respond every time the same way: have you been to your local real estate club?  And the answers would vary from; I didn’t know I had one, to yeah but all they ever want to do is sell me more training.

So first up; I didn’t know I had one.  Well let’s go back about 22 years ago as I sat in my first LIVE Real Estate training class.  Let me tell you I was pumped and ready to go make my first million.  But as the class came to an end my mind started to instill some fear tactics.  Now of course I was the one in control of these infiltrations to my mind, but what starts to happen after your weekend of pumped up steroid training is reality starts to set in.  You start to question what if I cannot find a deal, or any cash, or even a buyer?  What will I do?  Well on the last day of my training the company that was teaching us allowed the local Dallas Real Estate Club Aireo to come in and give out a free pass to their next meeting.  I knew then this was the blessing I was looking for.  They actually talked to the students for about ten minutes, telling us we needed to come because there would be all kinds of investors, money lenders, title companies and even CASH Buyers!

So a few weeks went by and I went to this meeting and let me tell you it was the best thing I ever did.  That first meeting though was really scary for me; I was in a world I didn’t feel very comfortable in.  Then about ten minutes after I was there I saw a familiar face from my training class.  I went up and we started talking about our training and this club we were at, and all the folks there.  A little later we saw someone else from our class. Soon we started all forming a little Networking group, and talking about what we had learned and what our concerns were about investing.  Then we talked about the current situation we were in, the club, how we felt like the little fish in a big pond with some really Big Fish.  We really believed the seasoned investors were going to swallow us up.  Soon the meeting started and there were different folks coming up to the front and one I remembered the most was this guy named John Zarrella.  Man, he was loud and funny and was throwing out ideas I never had even heard at my LIVE training.  I thought this guy knows a lot.  What I really liked is he didn’t look like an investor.  In fact, he had long hair and even an earring in his ear.  But then I found out he was one of the guys who created the club.

Over the years I would go hear him speak and he had his own local trainings.  I attended one of the club sponsored Saturday trainings where they taught me how to fill out my local contract.  I was so happy because this was one of those things that really worried me in the beginning.  Anyway, I learned a lot in that one day training.  In fact,  there must have been a hundred people in it that day. Then I realized there were other newbie investors out there just like me.

Well let’s bring in the Second topic folks are concerned about at clubs: Sales!  At the end of the training that day I felt very sure of myself that I could actually fill out a Texas contract with no problems, especially since they gave me four examples of some already filled out.  As my wife and I started to leave we were talking with other investors who had taken the class and to my surprise they were unhappy with the class.  They were upset that the class cost what it did, and that they had already been spending too much money with all these trainings.

I was thinking to myself yeah I have spent some money but, I also knew that I needed this training if I wanted to get paid in real estate.  I saw the value of someone who already made money doing this business showing me how to do it also, and faster than me trying to do it on my own.  In fact I was sure it would have cost me more and taken longer if I would have tried to do it all myself.

A few months went by and I finally did my first deal and got paid.  I was so happy it had actually worked.  I have to tell you it did not even go as I had planned but it did work.  Years later I started doing my own trainings.  I knew if I taught people what I knew I could multiply my efforts and do more deals.

Twenty something years later that club Aireo had always been there for me to go and network with other investors, learn from the guest speakers they had, and even allowed me to put my deals I had for sale on their Deal Table.  It was still allowing me to make money, in fact in 2002 that club founder John Zarrella and I became partners in the Fort Worth real estate club.  Who would have guessed that one day I would be partners with a great investor, friend and Christian Brother, and all because I went to a real estate club?

Now I write you this story on how you can make money at your local real estate club.  Keep in mind some investors are not really investors. What I mean is they got into this business to get Rich Quick.  They really did not have the right attitude from the beginning.  They just did it for the CASH!  In fact many newbies do not support their clubs; they only go when they think there is something in it for them.  That the guest speaker is going to reveal something they have never heard before.  They seem to forget the basics, and that is the ability to network regularly with like-minded individuals who are interested in real estate.  They tell themselves I will save the money this month by not going since I really already know how to do the topic of the night.  In fact a lot of seasoned investor say the same thing.  What they forget is; one you might learn something you did not know in regards to the topic of the meeting that night. Two, who you might meet at that meeting that could change your business forever.  Oh yeah, remember they know so much that they want to skip the meeting to save the money.  First clue would be if the meeting is going to tap your wallet dry, you may not know as much as you thought.  Well I don’t mean to be harsh but think about how the rich in this country do things.  They are always looking for ways to get together to brainstorm ideas with each other.  They Network all the time, they know the value of it, it’s why they’re RICH!

In closing, that club Aireo had to finally close its doors after some 24 years of teaching and helping investors.  A few days after they did I heard from a lot of folks saying wow! how could it be? Why did it happen? Simple; you have to support the things that mean the most to you in life.  You usually won’t know what you had till it’s gone.  I hope everyone reading will go to www.Nationalreic.org , look under Real Estate clubs for your local meeting, then go to it.  Who knows, someone at that meeting may just change your life, teach you something new, and Oh yeah; make you RICH!

 

Jimmy V. Reed         

Jimmy V. Reed of Fort Worth, Texas has been investing in real estate since 1987.  In 1991, he started conducting full-day training sessions on Wholesaling.  He then began teaching and mentoring others throughout the country. He is currently the founder of the Fort Worth R.E. club www.1REclub.com and has his own real estate training company that includes Wholesale, Probate, Mentoring & a Biblically based Debt Free training course and more!

More info available at www.JimmyReed.net

 

Understanding Japan’s Counter-Intuitive Real Estate Market

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By Priti Donnelly

You may think real estate investing is solely about property growth as you would find in Australia, U.K. US, Singapore and similar markets. The Japanese property market is not ripe with prospects for increased property value. So, why then is the market saturated with foreign investors?

Creating Opportunities Beyond Capital Growth

The Japanese property market suffered at least 25 years of declining/flat-lining prices. Although capital growth made a quiet entrance from 2012 to 2016, it was too soon to for investors to comfortably speculate growth. Instead, investors found a new opportunity. Because of the decline, properties became quite affordable while rental rates remained stable. The result, steady and higher yields across Japan– the ideal cash flow market from high yield rental income.

To put it in perspective, for as little as USD $30,000 at 7.5% yield net pre-tax investors can earn monthly rental income of approximately $170/month. As an added benefit, in a prime location you might also gain property value, but that is not the focus of property investing in Japan. This market is about common sense investing without the speculative nature.

Overcoming the Language Barrier

This is not your typical internationally friendly business market. On one hand, you will experience the most reliable and honest professionals in Japan, while on the other, foreigner-shy professionals who likely cannot speak English. Furthermore, to invest in Japanese properties you will need a local address, phone number and a local bank account, impossible without communication and cooperation. To get around this barrier, savvy foreign investors use a trusted local Japanese/English speaking proxy or representative to act on their behalf for both communication and access to the required information.

Understanding Old Structures

Some novice investors shy away from the Japanese property market believing with a huff and a puff, structures could be blown down. It is true that structures built before 1981, including smaller steel-frame buildings, and even wooden frame houses, were not built to last and require major renovations and repairs over time. However, a major change to the Building Standards Act for earthquake resistant construction methods for buildings (reinforced concrete blocks) occurred in 1981. This became the turning point that investors often looked to when purchasing property. That being said, there is still a niche market for older properties because of the higher yield. In truth, regardless of age, with due diligence, if the property has proof of regular maintenance, renovations, repairs to the interior and exterior, as well as sufficient funds for ongoing repairs, and is tenanted, an older higher yielding property could prove to be a diamond in the rough.

Accepting Foreign Real Estate

Today, the best real estate opportunities do not have to be in your own back yard. JPMorgan Chase says the Japanese real estate and infrastructure is becoming more attractive particularly with no more than 50% of leveraged funds. Above that, real estate doesn’t become the driver, but the leverage becomes the driver of your return.

Japan provides opportunities for stable, monthly cash flow from rental income with yields from 5% to 11% net pre-tax. Add to that, currency exchange and the yen’s role as a safe-haven currency and it’s easy to see why this is a booming market for foreign investors, contrary to the standard real estate investment approach.

Priti Donnelly is the sales and marketing manager at Nippon Tradings International, a proxy and buyers’ agency representing foreign investors with purchasing, selling and managing real estate in Japan. She focuses on Japanese Real Estate, an alternative to speculative real estate investment —  steady monthly rental income, high yield, and affordable properties – a market worth considering.

 

Priti Donnelly – Manager, Sales and Marketing

Nippon Tradings International (NTI)