Working With Motivated Sellers in the Spanish Speaking Market – Even if You Don’t Speak Spanish

By Kathy Kennebrook “The Marketing Magic Lady”

One of the things I discovered early on in my business as a real estate investor is that there are many ways to reach all kinds of motivated sellers. The main technique I like to use to reach specific sellers in my market is by using a targeted approach, which for me is direct mail. We do add to the mix other types of marketing tools including business cards, signage, bus benches, ads, bird dogs and flyers to name a few.

I also discovered that there is another segment of the market in addition to English speaking sellers with folks who have homes they need to sell for all kinds of reasons. The market segment I am referring to is the Spanish speaking seller.

The obstacle I ran into was that many of these folks don’t speak any English and I don’t speak any Spanish. So I needed to develop a system to market to these folks effectively since they have the same problems every other seller has.

Many of my students were also contacting me to find out how they too could use direct mail and other types of marketing techniques to reach the Spanish speaking sellers in their areas. They are finding, as am I that these folks have homes they need to sell for a variety of reasons and no one is tapping into this market. Part of the reason for that is the difficulty caused by not speaking the language and not being able to be understood. I found the way to solve that problem for these sellers and for myself as the investor.

I had all of my marketing pieces including my direct mail campaigns for finding motivated sellers translated into Spanish. It was a huge undertaking but it was well worth the effort. The first thing I had to do was to address all of the dialect differences in the Spanish language.

I then sent these letters to the specific market areas where I wanted to buy houses. I sent them out written in English on one side and Spanish on the other. I also had all of my other marketing tools translated into Spanish as well such as signage, ads, lumpy mail pieces, business cards, and flyers which were also causing an influx of leads into our pipeline. Not only that, I even had my tenant referral program materials translated to Spanish since we have a lot of Spanish speaking tenants.

One of the things I discovered very quickly was that while I was getting a lot of response from the Spanish speaking market, I was unable to process the deals due to the language barrier. I solved this problem in two different ways. The first was to send the calls to a 24 hour recorded message which I had recorded in Spanish. I used a professional translator to do this for me so that the grammar, the dialect and the language are correct.

The second way I solved this dilemma was to use a Spanish answering service to take the calls and translate the responses into English so I could read them. We provided the telephone scripts for them to use. I have them both in English and in Spanish so I can provide these to the answering service in whatever format they want it.

You can do the same thing. You can take your own telephone script, give it a bi-lingual answering service, have them ask the questions in Spanish and then translate the responses for you in English so you can read them.  This gives the seller two different ways to contact us, depending on what was the most convenient and comfortable for them. I also provide these potential sellers with a response mechanism at the bottom of the letter I use so they can mail, e-mail or fax their responses to us as well.  The more ways you give a seller to contact you, the more of them are going to.

I then use an interpreter who meets with me and the seller so I can put the deals together. We meet at a location that works for all involved. The interpreters are very reasonable in their fees for their services and they are easy to locate. I found one in the yellow pages listed under “interpreters”. Do try to find someone who specializes in real estate. This makes the whole process a lot easier. By putting a system in place to deal with this market, we were able to do a lot of deals, make money and solve these seller’s problems.

The other method you can employ is to use a Spanish speaking Realtor to help you with your deals and act as an interpreter, and then pay them a fee for doing this for you. If you already have a Realtor on your team performing a variety of services for you, this shouldn’t be difficult to do. I would suggest paying the Realtor a fee separate from their Realtor commission. This is just another way to find a reliable person to act as an interpreter for you when you need to structure these deals.

If you are using hard money or private money to fund your deals, or you are getting the deed, you will be closing these properties with a title agent or real estate attorney. Almost every title agency in the country is bi-lingual. If yours isn’t find one that is. This is a very profitable part of the market that none of your competitors are going after because they simply don’t know how.

Once you get past the language barrier, there are lots of great deals to be made within this marketplace and with these sellers. Remember, these sellers have the same problems everyone else does when it comes to needing to sell a property. You can set up a system in your business that will bring you many deals from the Spanish speaking market.

In my system, Marketing Magic-Spanish Upgrade, I have all of my marketing pieces, both in English and in Spanish for you on CD Rom and I show you exactly how to set up an automated system to reach this marketplace and process these deals. I have basically done all the work for you so all you have to do is get busy and find some properties to purchase with no competition from anyone else.

Be sure and check out my website at www.marketingmagiclady.com for more information on how to find all the Spanish speaking sellers you need for your real estate investing business. While you are there be sure and sign up for my free monthly newsletter and receive an additional $149.00 in FREE marketing tools for your real estate investing business.

Kathy Kennebrook

Kathy Kennebrook is the ultimate success story. She spent over 20 years in the banking industry before discovering the world of real estate. After attending some real estate seminars this 4 foot 11 mother of two got really excited and before you know it she’d bought and sold hundreds of properties using none of her own money or credit.

Kathy holds a degree in finance and has co-authored the books- The Venus Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and Walking With the Wise Entrepreneur which also includes real estate experts Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer.

She is the nation’s leading expert at finding highly qualified, motivated sellers, buyers and lenders using many types of direct mail marketing. She is known throughout the United States and Canada as the Marketing Magic Lady. She has put together a simple step-by-step system that anyone can follow to duplicate her success.

Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with Ron LeGrand, Dr. Phil, Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a few.

Kathy is going to share with you how she generates a seven figure income by mailing a handful of letters throughout the year to highly selected targets by knowing exactly what to send them, who to send them to and exactly how to deliver her message. She will teach you the secrets of pre-screening and automating your marketing and follow up systems to put your entire Real Estate business on auto-pilot.

 

Some Real Estate Lessons

By Bruce Kellogg

Introduction

This is the story of the property in Fig. 1, which is a 3,800 square foot Victorian house that was built in 1898 ( i.e., age 120).  Some years ago, it was converted into five studios and three 1-bedroom apartment units. The purpose of this story is to illustrate many lessons that can be learned about rehab, “flipping”, and syndication.

History

The property was owned by a woman who lived outside the country, an “absentee owner”. She “milked” the property for the cash flow, allowing maintenance to be deferred, and keeping rents low to sustain a steady occupancy. The management company performed to her low standards.

Fig.1

Along Comes “Frank” (pseudonym)

Frank was a newly-minted “real estate entrepreneur”, who had recently completed training in “Apartment Rehab and Re-positioning” by a national trainer. Being a bright fellow and a smooth talker, Frank decided to form a syndication to raise the money needed.  He didn’t have any money of his own. (Actually, he was living with relatives!)

The Syndication

According to title records, Frank raised nearly $600,000 from six partners in a Limited-Liability Company (LLC) structure. He gave each partner a security interest in a deed-of-trust that was secondary to a private first loan of $465,000 from a group of dentists who owned “Novocaine LLC”. Frank didn’t care if his partners were “accredited” or not, as long as he got the money for the project.

The Purchase

An LLC, Frank’s investment vehicle, paid $775,000 for the property. (He thought he “stole” it since the per-unit cost was quite low in this particular market. Actually, counting the deferred-maintenance, Frank had overpaid!) With the loan from the dentists, Frank’s partners put in $310,000 plus closing costs. They had a little under $300,000 left for rehab and holding costs.

The “Rehab”

Fig.2

At first glance, the rehab was fairly thorough. New composition roof, laminate and vinyl floors, tile kitchens and showers, new kitchen cabinets and vanities, new vinyl windows, new stoves and refrigerators, new interior and exterior paint. Frank said he spent $200,000 on seven units. For some reason, one unit was not done. (Did Frank run out of money, and the partners said, “NO MORE”?)

On second glance, not so great. Three years on, the cheap/thin laminate floors are peeling. Frank replaced three gorgeous stained-glass windows with cheap imports. (Fig. 2 is one that survived.) The stoves and refrigerators are “discounted/blemished” with some of the blemishes obvious. (The national trainer probably taught Frank this “money-saver”.) The exterior was pressure washed before spraying on the cheap paint, but not scraped or caulked at openings, so it’s looking ragged now.

Selling the “Flip”

All of the tenants were either helped to vacate or offered a rehabilitated unit at about 40% more rent. (That’s how apartment “turnarounds” are done!)  Frank listed the apartments for sale for $1.5 million. There were a few showings, but only after the price was reduced below $1.4 million did it go under contract. Even then, two parties backed out based on discouraging inspection reports.

Frank hired a new broker who worked “high-end” homes rather than apartments, and Frank did not have the new broker give the prior inspection reports to the buyers (which is legally required). For some reason the final buyers were not made aware of: 1) low water pressure (old, clogged pipes), 2) inadequate electric service, 3) crumbling masonry foundation (not concrete), 4) termites, wood-eating beetles, 5) dry rot and fungus damage at kitchens and baths, 6) faulty exterior drainage system (basement floods in the rain). But the broker made a commission of over $50,000 on the $1.3+ million sale!

Fig.3

The Current Situation

The present owners are still using the same property manager as the overseas woman, the manager with the low standards. Recently, the owners decided to replace the masonry foundation with a concrete perimeter foundation. They hired a state-licensed contractor, who started work. However, probably to save time and money, neither the manager nor the licensed contractor obtained a permit for the new foundation. Someone, a neighbor probably, complained to Code Enforcement, who issued a “Stop Work Notice”. Fig. 3 shows the boarded-up foundation going into its third month.

Additionally, Code Enforcement has “red tagged” the unit that had not been rehabbed. It cannot be rented. Management has removed the range and refrigerator, indicating the unit has been abandoned for the time being.

Conclusions

  • Frank lost money.
  • Frank’s partners lost money
  • Frank has left town
  • The present owners are going to lose lots of $money
  • The contractor’s license is in jeopardy for not getting a permit
  • The owners will likely sue the manager, the contractor, and their broker
  • The broker and the property manager could face disciplinary action by the Bureau of Real Estate

Below is a List of Lessons. What can you add to it?

List of Lessons

  • Don’t try to flip a 120 year-old Victorian (unless that’s your specialty)!
  • Hire only top-quality property managers (and pay them well).
  • Invest only with experienced syndicators with a proven “track record” and plenty of “means” behind them.
  • Borrow only from “accredited” investors, or those who know you.
  • When buying at a discount, make sure it’s a genuine discount. Corollary: Don’t fall in love with the “opportunity”.
  • Rehab with quality materials and workmanship.
  • When buying or selling, use brokers or agents with the appropriate specialty.
  • Invest in all appropriate inspection reports when buying.
  • Obtain permits for all construction work/repairs where permits are required.

 

Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 36 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches.

Mr. Kellogg is a contributor and copy editor for two national real estate wealth-building magazines: Realty411, and REI Wealth Mag.

He is available for listing, selling, consulting, mentoring, and partnering. Reach him at [email protected], or (408) 489-0131.

Yikes! My Marketing isn’t Working!

By Sharon Vornholt

My marketing isn’t working is a statement that I hear just about every week. When I start to ask people about their branding, I always get the same surprised look. Then that person usually says something like, “I’ll worry about branding when my marketing is on track”.

I have to tell you, that’s not how it works.  Branding and marketing go hand in hand, and you need to be working on both things simultaneously. Think of it this way:

Marketing is how you get leads.  Branding is what makes them choose YOU.

Really think about that for a minute.  You’ve just dropped a chunk of cash sending out direct mail campaigns that are pretty much getting you zero results.  One of the main reasons for that is most likely because you have completely neglected to build a brand. There are also a couple of other reasons what we will go over in a minute.

Taking Stock

When your marketing isn’t working, the first step is to take stock of everything you are doing. What are all of your marketing activities?  List them all out.

  • They might include:
  • Direct mail
  • Bandit signs
  • Networking
  • Websites (you must have a website)
  • Craig’s list, Zillow etc.
  • Calling expired listing
  • Or anyone of a dozen other strategies

Then, ask yourself these 3 questions.

  1. Am I marketing consistently?
  2. Am I targeting the right group of people?
  3. What is it I should be doing that I’m not doing? (You know what that is.) No judgement here, but you do have to own where you are to get where you want to go.

Once you have listed out all your marketing activities, be honest and list the exact frequency of those marketing activities. List everything you are doing whether it is daily, weekly, monthly or some other frequency.

If you have big gaps in your frequency, I can almost promise you that’s one of the problems. Marketing cannot be a hit or miss thing. Consistency is one of the keys to generating a steady stream of leads.

The Next Piece of the Puzzle: Building Your Brand

So what exactly is branding?

There’s no doubt that the physical components of a brand are important. Those are things like logos, brand colors and other things that make up the “look” of your brand.  But that’s not what branding really is.

Branding is the way people feel about you. Another way to say it is, “It’s what people say about you when you leave the room”.  That my friend is why you need to build a brand, and you need to be the one in charge of doing that.

If you don’t consciously build your brand and the way you want to be perceived to your potential clients, one of two things will happen: 

  1. Someone else will do it for you. Many times this happens by folks saying negative things about you. They will be in charge of what they want other people to think about you. The way you combat this is by building your own online reputation.
  2. Or you will simply be invisible in your niche which is the kiss of death.

What Has Changed?

For those of us that were around before the internet (I know, it’s hard to believe we grew up without it), only the big companies like Coca Cola had to worry a lot about branding.  The local heating and air-conditioning company could run a few local ads, give great customer service and stay in business.

That’s not true anymore.  When your marketing isn’t working, your failure to build a strong brand is almost always part of the problem.

Whether or not you intend to have a global brand, because of the internet you can be found by everyone. It’s no longer optional to build a brand for your business.  In most cases, you will be the brand in our business.

Remember, that all your marketing has to touch people in some way that makes them take action. Whether that is to call you, to fill out a form on your website or take some other action, once they have found you, what exactly is it that they will find?

You need to ask yourself these questions:

  • What makes you special?
  • How have you branded yourself so that you are memorable?
  • What makes people think you are the authority in your field?
  • The big questions is why should they choose YOU? What makes you different than your competitors?

You must be able to answer these questions before you can really build a brand that stands out from all the rest. Remember that marketing is how you get leads, and your branding is why they choose YOU.

Where Does Branding Count?

Everywhere!

It counts everywhere people have contact with you whether that’s on your website, social media, on your marketing pieces or even in the way present yourself when you’re networking. Your goal should be to build a consistent presence both online and offline.

Here’s a little exercise for you.  Google yourself and see what comes up. Having nothing come up can be as bad as having something negative come up.

How Do You Build a Rock Solid Brand?

You can do that many ways. However one of the best ways is through content marketing. and I’m going to talk about that in my next article.  I want you to be clear on one thing; you don’t have to write a single article to create great content. There are other ways to create content and that’s what I will go over next time.

I also have a free “Brand Assessment Guide” that you can get over on my blog.  So be sure to stop by the Louisville Gals Real Estate Blog and get your free copy. It’s a great way to see where you are now, and what steps you can take to create a brand that leaves your competition in the dust.

Author:  Sharon Vornholt

Louisville Gals Real Estate Blog

Investment Strategy: BRRRR vs. Filthy Riches

By Larry Goins

Larry Goins on the BRRRR strategy and Filthy Riches…

Not too long ago, founder of Realty411 Magazine, Linda Pliagas and I were hanging out with some fellow investors in Texas. If you know Linda, she has a fantastic personality, is a serious magazine editor, and is great at bringing people together. She also actively invests in real estate herself. She mentioned that she was just getting ready to refinance some of the free and clear rental properties she had purchased for cash. I’m like “oh, you’re are doing the BRRRR method.” She hadn’t related the term to what she was doing, but it is a popular model being thrown around on the online forum BiggerPockets.

So, what’s BRRRR? How does it work? Is it the best solution for investors?

What is BRRRR in Real Estate Investing?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat.

This is a cash and cash flow real estate strategy. Investors will purchase properties for cash, or use short-term, hard money type loans to purchase property. Then dig into repairs and improvements to add value and get them rent ready. Then once that property is in shape and performing, investors attempt to refinance to get cash out and/or get better long-term financing terms, which create more cash flow. The cash extracted can be used to acquire another rental property, while keeping the previous one as a rental.

An example scenario may look something like this:

ARV: $100,000

Purchase price: $50,000

Rehab costs: $10,000

Refinance: $75,000

Ongoing rental income: $800 per month, gross, before debt service and expenses.

The Pros & Cons of BRRRR

This strategy has both advantages and disadvantages.

The Pros:

  • Can be a way to gradually scale your rental property portfolio.
  • Acting as a cash buyer to acquire houses fast and at good prices.
  • Achieving lump sums of cash and cash flow.

The Cons:

  • Slow approach to cash and wealth building.
  • Long term debt, and skimming equity can leave investors in tight spots.
  • Lots of equity tied up.
  • Headaches and risk of rehabbing and renters.
  • Reliance on refinancing.

The reliance on being able to refinance has been a risky stumbling block for many trying to use this strategy. Some have tapped out credit cards or home equity loans, and have been unable to complete renovations to a stage where they can rent or resale properties. Others haven’t been able to find lenders who will give them cash out loans. There is never a guarantee that refinancing will be possible down the road. There are just too many variables, from personal credit and paperwork requirements, to construction challenges, and a changing lending landscape.

Filthy Riches: A Simpler Strategy for Profiting from Real Estate

‘Filthy Riches’ is all about making great money, on cheaper houses. There are some similarities in these strategies. For example; the ability to generate both lump sum paydays, and cash flow.

However, the Filthy Riches plan stands out with a few additional advantages, including:

NO loans needed.

NO bank loans needed by buyers to resell your properties.

NO problem finding deals.

NO getting stuck on the next step.

NO taking on wild risks or gambling on the market.

NO fixing up properties.

NO credit checks.

NO financing delays.

NO limits on where you can buy or sell.

NO competition.

With this strategy, you can make more money on a $5,000 house than the average investor makes on a $100,000 house with the BRRRR strategy.

In fact, you can make 141.88% returns, on a $5k house, with no rehabbing, and no tenant hassles. That’s $45,563.06, back on a home bought for just $5,000! You can take those returns in monthly cash flow, lump sum payments, or a combination of both. This system allows for far easier scaling and diversification, which can rapidly put 19 deals under the control of an investor, within about 12 months.

About Me

I’ve been investing in real estate for over 30 years. I bought my first house in 1985. I’ve been a licensed broker, contractor, and lender. I’ve done all types of real estate deals during this time. This is by far one of the simplest and fastest ways to get started and grow your income through real estate. I still use it today. I have students making over $1M with this strategy in 12 states, and from at least 8 countries.

Whether you’ve been struggling to just get started, got stuck on a BRRRR deal, or want to grow your results faster, you can find out more about how this works in a FREE 7 part video series at FilthyRiches.com .

The Bottom Line

BRRRR can work. Many investors are trying it. Yet, many could get going faster, and make far better returns, with less work, and less risk, by using this proven system instead. Check out the free videos, and see exactly how it works, and if it is the right fit for you. You may be very surprised at how much easier this is!

All-Inclusive Trust Deed or Mortgage

By Al Lowry

An all-inclusive trust deed or mortgage is also sometimes referred to as a wraparound or overriding trust deed or mortgage. This is a trust deed or mortgage that is subordinate to, yet includes all the encumbrances to which it is subordinated. But sometimes in connection with refinancing. It is easier to illustrate than to explain.

A few years ago, I knew an owner who wanted to sell a property on which he was paying off a twenty-five year loan. The unpaid balance was $30,000. He was paying 6% interest. He found a would-be buyer, and the two of them agreed on a price of $60,000, with the buyer to put up $10,000 in cash, leaving $50,000 to be financed somehow.

One possibility was for the buyer to try to refinance the $30,000 first mortgage with a new, larger loan. However, the money market was tight at the time. Any new loan he might get probably would not be for more than $42,000 and would cost him 10 percent interest plus at least two points. In addition, there would be a prepayment fee on the existing loan equal to six months’ unearned interest, or another $900.

A second possibility is that the buyer might assume the $30,000 existing loan and have the seller carry back a purchase money second trust deed or mortgage for the remaining $20,000 of the sales price. The interest rate could be whatever the buyer and seller agreed on up to the maximum legal rate, which in their state was 10 percent at the time.

A third possibility (and the one they finally decided on) was to use an all-inclusive deed of trust. The buyer gave the seller a promissory note in the amount of $50,000 with interest at 8 ½ percent. The note contained a clause to the effect that it’s face amount included the unpaid balance of the first mortgage, and that the seller would still be responsible for making payments on that underlying obligation as it stood. So the seller was in the comfortable position of receiving interest at an annual rate of $4,250 (8 ½ percent of $50,000) while paying out interest at an annual rate of $1,800 (six percent of $30,000), thereby netting $2,450, or 12.25 percent on the $20,000 difference between the two notes. This is 2.25 percentage points higher than could legally have been charged if he had carried back a $20,000 purchase-money second. The arrangement put an extra $450 per year into his pocket.

The buyer made more money too. He avoided completely the $900 prepayment penalty and some $1,000 in loan-origination costs he would have incurred if he had taken out the new 10 percent $42,000 mortgage. Furthermore, he ended up paying 1 ½ percentage points ($750) less annual interest than he would have paid on a new first and second totaling $50,00 fortunately, the option to use an all-inclusive note is limited to cases where there is no acceleration or other alienation clause in any of the notes or mortgages against the property, or if there is such a clause, the lender agrees to waive it. He will seldom waive it unless he has little to lose by doing so. In that case, the borrower may also have little to gain from the lender’s willingness to allow the loan to stand intact. When there is no clause in the existing loans that blocks them, all-inclusive loans can be good to use when:

1. There is a locked-in loan that cannot be paid off – at least without severe penalties.

2. The buyer is a poor risk and is making a small down payment.

3. A property is overpriced and the seller sticks to the price but not to the terms of sale.

4. The existing loans are at lower interest rates than you could get on new financing.

5. There is little time to shop for new loans and little chance of the buyer’s qualifying for them.

6. The down payment offered is so low that the only practical alternative would be for the seller to carry back a large purchase-money mortgage.

There are so many ways to make money with real estate.

Albert Lowry is an authority on real estate investing and a nationally recognized lecturer. One of his 20 books, “How You Can Become Financially Independent In Real Estate”, was on the New York Times Best Seller List for three consecutive years. He has a Doctorate in Business Administration, and taught the first Masters Degree Program in Real Estate.

Albert has bought and sold hundreds of properties, run multiple corporations and started many of the investors associations throughout America. He has taught over 350,000 students worldwide and is in the Academy of American Exchangers “Hall of Fame”.

Is Timing The Real Estate Market Possible?

By Fuquan Bilal

Can investors really time the real estate market, or is it wiser to just consistently invest, and hold?

We all know that there can be fluctuations in real estate prices, even if values are constantly going up over time. So, is it possible to time the market? If so, what does it take? What’s the best way to do it?

Why Try to Time the Market

Trying to time the market is critical in publicly traded stocks. Stocks are now believed to be 70% or more overvalued. It can take a decade or more to recover from that, just to get back to par. There isn’t anything you can personally do about the stock prices. You just have to wait. Worse, there is no downside protection. If it goes too deep, there is a PR scandal or the industry changes, all capital may be lost. It is vital to sell before the market begins to dip, and buy again before it begins to go up, if you want to avoid negative returns.

Real estate is a little different. You can absolutely find greater bargains during tougher times, and sell high in bullish times. This strategy can absolutely help to maximize returns.

However, real estate is a tangible, hard asset, that will be there no matter what. It can also produce income, which doesn’t vary much as asset prices fluctuate. Plus, you can control the value of your real estate assets with improvements and repositioning.

Reasons Not to Try and Time the Real Estate Market

There are two main reasons that most individuals and investors shouldn’t try to time the property market. The first is that investors are notoriously bad at it. Most almost invariably wait too long to sell, and end up folding at the bottom of the market. Then they wait far too long to buy, and miss all the gains.

The second reason is that transaction costs can be high. Between time spent on due diligence and hard closing costs, you stand to lose a decent chunk of change if you sell and rebuy the same property in an effort to time it. Depending on where you are, and the fluctuation, this may be more of loss than if you just held, and received income from the property in the meantime.

Factors Involved in Timing the Market

There are an enormous amount of data points and factors to watch when trying to time the market, including:

  • Affordability
  • Interest rates
  • Treasury bond yields
  • Taxes
  • Rents
  • Building costs
  • Seasonal fluctuations
  • Supply and new constructions
  • Default rates and bank balance sheets
  • Days on market
  • Population growth and migration patterns
  • Jobs and wages
  • Local economic trends

Best Moves

There is a lot to know, learn, master and monitor to effectively time the market. If you are epically good, you can do far better than most in timing the market. Even then, you may not want to sell all your holdings, as you’ll probably want to reacquire them within 48 months or so.

At NNG, we leverage a strong research team, deep data that is way ahead of what the public sees, and maintain a strong mix of assets and strategies, so that some are being turned at their ideal timing, while others are held for consistent yields

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

 

What’s Your Best Investment Strategy?

By Ramon Tookes

Real estate investing is and will always be one of the best ways to build wealth. As with any investment, you must have a strategy. In real estate, three main strategies are wholesale, buy and hold, and fix and flip.

Most people think that fix and flipping is my favorite strategy, but it’s really not!! My favorite is buying and holding. I really enjoy buying and holding for several reasons. One, buying and holding creates long term wealth also known as generational wealth if properly managed. My goals include leaving a legacy and properties for my children and my children’s children and so forth. This is the strategy for that. Two, buying and holding gives you the opportunity to control real estate, which is not being made any more. Three, the properties should and usually appreciate (increase in value) over time. Finally, when you buy and hold properly, you can create cash flow for saving, investing, and financial freedom.

I enjoy wholesaling. Wholesaling is making a fee for finding a property for a buyer that will successfully execute their goal. This can be done with assignments and double closings. I like this strategy because it takes away a lot of the responsibilities and stress of ownership. Wholesaling can lead to quick profits. If you are building a wholesale system, it requires hard work, which most people that want to wholesale fail to realize. There are lots of fast moving pieces in the wholesale business especially in this market. I have wholesaled hundreds of properties during my career, but have had the most headaches using this strategy.

And yes, I do enjoy fixing and flipping. I am known as “Mr. Flipology” because I teach/train investors how to properly flip real estate through my investing educational and training course called Flipology 101:the Bootcamp. This not only includes single family residences, but also land, multifamily, and commercial. I enjoy flipping because it leads to large profits, build communities, and I get a satisfaction of seeing a homeowner own a property that they love. As with the other strategies, to successfully flip, you must create systems. These systems involve lots of other people including contractors.

These strategies are implemented according to your preference and what you can use most effectively. Do not try to use one of the other because someone else is using it. Many of the properties that I wholesaled or flipped I wished that I had bought and held them. I know that this is after the fact, but most people who have built massive wealth in real estate have done so through buying and holding.

Ramon Tookes is a real estate investor, coach, author, wealth builder, public speaker, radio celebrity and developer with 20+ years of experience in the industry. Ramon currently oversees the daily operations of The Tookes Group, a firm that he founded in 2005, specializing in real estate investment consulting.

Connect, Invest and Retire Rich

By Anita Cooper

For most investors, it starts with the dream.

You know the one…financial (and time) independence through investing in property?

While real estate is a fantastic wealth creation vehicle, you’ll be spinning your wheels a lot if you don’t have the right connections in place to get things done.

Yes, in real estate, success often depends on who…not just what…you know!

Everyone tells you that it’s important to build a team when investing in property, and that’s true, definitely.

But wouldn’t it be easier if you simply had a single contact instead? Someone who could “connect the dots” between what you need and who can help meet that need?

Meet Holly Lynn of Bay Area Multi-Family Meetup. She’s that “someone” who can help you make the connections you need to build your wealth.

“My database is global. I know 20 people for every 1 subject, so when people contact me, I can connect them with the right person for their needs.”

Holly works with a variety of investors, everyone from individual investors to groups of investors, helping them obtain the finance they need to get the results they want.

Specifically, investors can look to Holly for their private lending needs, and for opportunities to build their team by attending networking events such as at her famous mixers.

“The feedback I’ve been getting from investors is amazing,” says Holly. “We offer loads of information that helps investors grow their knowledge. I’ve also been able to connect investors with people who help them get fantastic results!”

Your network begins here

Often, you’ll meet someone who is amazing in the real estate industry but is an average, or sometimes even less than average networker.

Holly, however, is one of those rare individuals who is a rockstar at networking, and a whiz at real estate…a powerful combination for any investor looking to grow their portfolio.

Why does she do what she does?

“I am passionate about helping people take back their time. Look, I haven’t worked a retail job since I was 19 – I want others to have the same opportunity.”

Face to face connections

Holly Lynn is all about making connections.

But it’s not just what she does…it’s who she is, and when someone has that level of passion they love to share it with others every chance they get.

One of the most popular, and effective networking avenues is to face to face…even in this modern, social media age.

So to help investors, each month Holly offers a mixer where she serves as a bridge helping investors connect with people they need for their investments and deals.

Social media connections

Holly’s social media accounts are ablaze with activity too – people share what they’ve been able to do, the goals they’ve reached and the connections they’ve made.

“Social influence is definitely me. That’s how I connect people. I make calls constantly to get to know people, then I connect the dots. I know who is looking for what, so I make the connection, get them together and enjoy watching the results!”

Her reputation is seen in the lives changed…

“Holly Lynn is a personable and well connected real estate investor and professional that brings deals together for a win win outcome.” – B. Sharma, Investor

“If you’ve been waiting for an opportunity, maybe this is it

As “The Real Estate Investor’s Lawyer” I have spoken in front of many real estate investor clubs.  Holly’s investor club had some of the highest quality attendees I have ever seen. 

They are engaged, experienced and actually doing deals and/or seriously interested in doing deals.  I give her a lot of credit for attracting that high quality of real estate professional. 

I have also had the privilege and pleasure of representing Holly and have been very impressed with her and her real estate investing activities.

They say that opportunity never knocks twice. There’s even a parable of how opportunity is a bald man with a long beard. You can only grab him when he’s in front of you and you can’t get him back once he passes you. If you’ve been waiting for an opportunity, maybe this is it. – J. Lerman, Litigator

 

The 10 Most Common Questions I’m Asked About Probate Investing

By Sharon Vornholt

I love working in the niche of probates, but that’s not true for all investors.I think the reason is they just don’t have the knowledge they need about probate investing and how the process works.Probate investing is not that much different than other niches, but because the property is part of an estate that seems to make a difference in the way people feel about it.

Why Do I Love Probates So Much?

Here is the main thing to remember about probate investing:

The heirs rarely want the house; they just want the cash sitting in that property. If the house happens to need a lot of repairs or updating it is an investor that can solve their problem so they can go on with their life.

Folks Have a Lot of Questions

People have a lot of questions about probates. In fact, I am asked the same questions all the time.

Today I decided to take the 10 most common questions I am asked about probate investing and answer them.Many of these topics could be (or have been) entire blog post or video so today you’ll be getting the “short version”. I plan to take some of these topics and elaborate on them in the future.

#1. Why Is There Less Competition in the Probate Niche?

There is less competition for several reasons.

  • A lot of investors just think it’s just strange working in this niche.
  • Others just don’t know the process and how they fit into it.
  • Another reason is they just aren’t willing to do the work involved to get the information needed to get those leads.

If you want to jump into this very profitable niche, take the time to learn about the actual probate process and about probate investing in general. You are going to find that these folks are some of the most motivated sellers on the planet.

#2. Why is it So Hard to Get Probate Leads?

The reason it’s so hard to get the information is because the process is different everywhere.This is also the reason there is less competition. There are over 3300 counties in the US and each one of those counties has a different process for getting probate leads.

When you think about probate investing, the reason this niche is so great is also the reason a lot of people won’t go to the trouble to learn the process for getting leads in their area. It’s not always easy. Just know that you may have to do a little detective work.

#3. I Feel Bad Profiting off of Dead People or – Isn’t it Weird Talking about Dead People?

I hear this comment all the time.Sellers are all pretty much the same.It just so happens that folks in probate are there because someone died.They are also there because they have a problem; they have house they need to sell and that’s why the need us.We are there to help them solve a problem. It really is that simple.

Remember this: The sellers of probate property don’t want the house; they want the cash from the sale of the house.

#4. Why Can’t I Just Call the Family Instead of Sending Direct Mail?

My initial contact is never by phone.I always send a letter to the executor/administrator.If you think about this for a minute; how would you feel if someone called you out of the blue when your loved one passed away?You wouldn’t like the intrusion.

These folks will call when they are ready.Some families will dive right in and open the estate.Other people may wait a year or longer.Generally speaking, when they open the estate they are ready to move forward with the sale of the property.

#5. Can You Wholesale Probate Deals?

Absolutely!

Any real property must be sold before the estate can be closed. In most states you just put the property under contract and move forward.Be aware that some states like California have a very different procedure.You will need to learn how the probate process works in your state. (Remember that detective work?)

#6. Don’t Most Probates Want Retail for the House?

Some sellers will want retail and some won’t.When you think about probate investing, these sellers are no different than any others.Houses that are in great shape will generally be listed on the MLS.Properties that need repairs and updates are the likely candidates to be sold to an investor.

#7. Can You Use the Multiple Offer Strategy for Probates?

You can, however you need to remember that these sellers almost always want to “cash out”.That’s the main reason they are so motivated. They just want the cash. There may be rare occasions where they will be willing to do owner financing or some other type of creative deal but that isn’t typical.

#8. What Can I Say When the Family is embarrassed about the Condition of the House?

Truthfully, this happens all the time.As a member of the family walks through the house with me they are apologizing because there is so much “stuff”.If you are sincere, it’s pretty easy to put the seller at ease just by telling them this is typical especially when the deceased is elderly.

It’s not unusual to see stack of butter tubs, receipts from decades past and just a lot of junk.You may also run into some hoarders. Remember to always offer to clean out the house for them.That’s often the one thing that will seal the deal.

#9. What If the Deceased’s Relatives Won’t Move Out of the House?

The short answer is let an attorney handle this problem.Just get the house under contract. Your real estate attorney will know how to take care of this.

#10. What Can I Do When the Heirs Don’t Agree?

When you are talking about probate investing, things usually go smoothly and the closing is typically uneventful.

However … there are times when you feel like the peacemaker/counselor/teacher.People will need to be educated about the process. So in many cases, you will be there to initiate problem solving conversations with the family and to help soothe hurt feelings. After years of working in this niche, I have found that you usually just need to be a good listener.

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.