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The Lock-In Effect and Keys to Success

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By Rick Tobin

There sure seems to be more bad news than good news these days about the state of real estate. During turbulent times like we’ve all seen in recent years, the most common first human reaction is usually denial or acting somewhat like a locked up “prisoner” with a frozen “deer-in-the-headlights” look in our eyes. Yet, this is exactly when we should stay focused on the potential opportunities more so than the temporary obstacles standing in our way.

As foreclosure filings continue to increase to an average near 50% higher than the pre-pandemic years (2019 and earlier), struggling homeowners and landlords will need to focus on solutions such as loan modifications, forbearance agreements, short sales, and quick sales for cash. As an investor in the near future, you will likely find more deals readily available to choose from if you know where and how to look for them.

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Some metropolitan regions like Houston have 56% higher foreclosure rates. Other places like Minneapolis/St. Paul saw +106% foreclosure rates in March. Nashville was +35% higher and Phoenix + 33% higher in May; Rhode Island was up 32% in May.

During the depths of the Credit Crisis / Great Financial Recession years between 2008 and 2013, California was hit the hardest with a -41% home price drop average from peak to trough. Nevada, Arizona, and Florida weren’t too far behind.

Some California home prices have risen as much as +41% over a period of just 18 to 24 months in recent years, so an equivalent -41% price drop is easier to imagine as some values may drop back towards 2021 levels.

The typical home today is about $80,000 higher than it was just two years ago. The average monthly rent payment today is more than $1,000 higher than it was in 2020. Middle-income first-time buyers are unable to afford 70% of homes. As California unemployment rates continue to rise at a faster pace than most other states (Big Tech layoffs, especially), it will be more challenging to continue making mortgage payments.

Rental Market Trends

Today, there are 65% more active short-term rental listings on Airbnb and VRBO (965,000+) than all homes listed for sale nationally (554,000+), as per Realtor.com and other sources. At some point, the vacant short-term rentals will become listed homes for sale or distressed properties due to higher vacancy rates.

Ironically, the founders of Airbnb originally used air mattresses to cover their own San Francisco apartment unit’s rent. Eventually, air bubbles go pop one way or another.

Rent Increases

The following metro areas have experienced the greatest year-over-year rental price percentage increases through May 2023:
Providence-Warwick, RI-MA (+17.44 percent)
Kansas City, MO (+13.20 percent)
Minneapolis-St. Paul-Bloomington, MN-WI (+8.97 percent)
Raleigh-Cary, NC (+8.05 percent)
Charlotte-Concord-Gastonia, NC-SC (+7.65 percent)
San Jose-Sunnyvale-Santa Clara, CA (+7.59 percent)
Hartford-East Hartford-Middletown, CT (+7.47 percent)
Columbus, OH (+6.81 percent)
Los Angeles-Long Beach-Anaheim, CA (+6.20 percent)
Riverside-San Bernardino-Ontario, CA (+5.97 percent)

Rent Decreases

The following metro areas have experienced the largest year-over-year rental price percentage decreases through May 2023:
Austin-Round Rock-Georgetown, TX (-20.76 percent)
New Orleans-Metairie, LA (-20.42 percent)
Las Vegas-Henderson-Paradise, NV (-10.57 percent)
Houston-The Woodlands-Sugar Land, TX (-8.42 percent)
Seattle-Tacoma-Bellevue, WA (-8.28 percent)
Cincinnati, OH-KY-IN (-6.49 percent)
Phoenix-Mesa-Chandler, AZ (-6.46 percent)
Birmingham-Hoover, AL (-5.98 percent)
Memphis, TN-MS-AR (-4.85 percent)
Oklahoma City, OK (-4.44 percent)
Source: Rent.com

Multifamily Trends in Southern California

Sales and prices for multifamily apartment buildings have started to really fall in Los Angeles and other metropolitan regions across the nation. Specifically within Los Angeles, the number of units fell 11% in the first quarter of 2023 as compared with the previous fourth quarter in 2022. More shockingly, multifamily apartment building prices collapsed by -37.5% year-over-year as per a report shared by NAI Capital.

During the same first quarter time period, the average sales price per apartment unit dropped by 18.4%. One major factor for the falling price and sales volume numbers for Los Angeles County was directly related to the Measure ULA “mansion tax” that affected both luxury homes and commercial real estate properties priced above $5 million as of April 1st.

While $5 million may seem pricey for a luxury home in Los Angeles or elsewhere, the same $5 million dollar price tag for a rather small multifamily apartment building is much more common.

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Strangely, both vacancy rates and apartment rents continue to rise together at the same time in many parts of Los Angeles and elsewhere. Average rents rose to $2,156 per apartment unit in Los Angeles, a +1.9% year-over-year increase.

Some regions of Los Angeles had more negative rent, sales price, and vacancy trends. For example, the first quarter numbers for these Los Angeles multifamily submarkets were more negative than positive and were as follows:

  • San Fernando Valley and Santa Clarita Valley: The average multifamily sale price per unit fell by -35.9% year-over-year while the vacancy rates increased by +22%.
  • San Gabriel Valley: The average sales price per unit decreased by -20.3% while vacancy rates skyrocketed by +32.2%.
  • L.A. Westside: The average sales price per unit fell by -9.5% while vacancy rates increased by +10.7%.

Historically, rising vacancy rates and rental payment trends are usually inverse to one another like a seesaw with payments falling as vacancy rates rise. We shall see how long this trend lasts.

A very high number of landlords haven’t collected a rental payment for two or three years either, especially in Los Angeles County. When will the foreclosure and tenant eviction rates really begin to accelerate and adversely impact both tenants and landlords?

The Locked-In Homeowner and Unlocked Treasures

There are upwards of 16 to 20 million vacant or distressed properties across the nation. Additionally, there are millions of distressed FHA mortgages alone. Many homeowners haven’t made a mortgage payment for more than three years just like so many tenants.

Loan modifications, forbearance, and loan forgiveness plans continue at near record paces across the nation. Lenders are not filing foreclosure as aggressively as they would have in years past, partly due to ongoing pandemic restrictions in place. This is a major reason why the national home listing inventory supply is so low.

Another reason why there are so few homes listed for sale is because upwards of 92% of homeowners with a mortgage have an existing rate at or below 6%, as per a study released by Redfin. Let’s take a quick look below at the fixed rate estimates for homeowners as of the first quarter:

  • 91.8% of mortgaged homeowners have rates below 6%.
  • 82.4% of homeowners have rates below 5%.
  • 62% of homeowners have rates below 4%.
  • 23.5% of homeowners have rates below 3%.

It can be rather challenging for a homeowner to consider losing their 6%, 5%, 4%, 3%, or even 2% fixed rate mortgage with a 30-year term and move to another home with a rate closer to 7% or 8%. As a result, it’s referred to as the “lock-in effect” because so many homeowners don’t want to lose their near record rate locks.

The market may change for the better or worse later this year depending upon a few factors such as follows:

First, will future unemployment trends improve or get worse. A loss of income is generally the #1 reason why someone loses their home to foreclosure.

Second, will lenders and loan service companies start to file foreclosure notices at a much faster pace than in recent years?

Third, will tenant protections in place be eased up or tightened? Most landlords are small investors who may be fortunate to own just one or two rental properties. After months or years of no rent collected, the landlords may be at risk of losing their rentals and primary home to foreclosure.

Your key to future success that unlocks your potential as either a homeowner, investor, or tenant is to focus on the positives and negatives while minimizing your risk and maximizing your gains. With the right mindset and guidance, it will be akin to a literal key that unlocks a treasure chest!!!

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

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What Working with Doctors Without Borders Taught Me About Building a Relationship-Based Business

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Image by StockSnap from Pixabay

By Victoria Kennedy

Any leader worth their salt understands how important it is to build relationships with those you want to lead. I learned this lesson firsthand while on assignment working with Doctors Without Borders/Médecins Sans Frontières (MSF). Working side-by-side in some of the most intense scenarios you can imagine, I came to truly appreciate what it means to lead with the heart.

Now, as I forge ahead building the future of my Real Estate lead generation agency, even during a global health pandemic, those earlier lessons about leadership have come full circle. During a time when people need connection, helpfulness, and human kindness more than ever, we all should be taking our cues from mission-driven organizations like MSF.
Here are the four big lessons that guide me as I build my relationship-based business:

1. Develop Ambassadors, Not Employees

Doctors Without Borders/Médecins Sans Frontières (MSF) is a dynamic movement propelled forward by people from all corners of the globe who share a common mission: to save lives and alleviate suffering by delivering medical care where it is needed the most. To achieve this mission, the medical personnel who work with MSF are not merely employees. They are ambassadors for MSF promoting its ideals and raising awareness about the organization.
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Image by Anemone123 from Pixabay

For real estate agents, the lesson here is to look for a team that embodies a spirit of ambassadorship. When you find colleagues and business partners who are open to teaching you sales techniques that have worked for them, you will feel supported in developing your own sales process. So, remember to build relationships with employees and colleagues, not just prospects.
Once realtors, brokers, and other real estate professionals experience this relationship-based approach, they become instant ambassadors. Ambassadors are proactive. They don’t sit back and let life happen. They go out and close deals. They understand, especially in this climate, standing out is about more than simply following up on leads.

2. Go Where You Are Needed the Most

This simple, but powerful concept drove the founders of Doctors Without Borders/Médecins Sans Frontières (MSF). In May of 1968, a group of young doctors decided to go where their medical services were needed the most: to the victims of wars and disasters anywhere in the world.
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Image by jennycepeda from Pixabay

The needs of buyers and sellers have shifted during the pandemic. However, smart realtors and brokers who follow this principle have naturally shifted their focus to meet current needs. When real estate agents trust the system and go where they’re needed the most, they will stay on track with closings regardless of market fluctuations.

3. Let Transparency and Accountability Be Your Beacon

For a medical aid organization, like MSF, that relies on the financial support of donors, transparency and accountability are crucial. But the fact is, in the real estate industry, these values are just as important. It’s sad, but we all need to look out for frauds and those who seek to take advantage of people’s goodwill during this difficult time. In a relationship-based business, this should never be an issue. When you put trust at the core of how you lead, your value will shine through to your clients. One way to build trust is to provide transparent information that your clients can use. For example, you could email weekly videos about the state of their local market to your prospects.

4. Get Creative with the Resources You Provide

The medical professionals who are part of Doctors Without Borders/Médecins Sans Frontières (MSF) aren’t afraid to get creative to find solutions out in the field. Providing medical aid without the institutional support of hospitals requires thinking outside the box. This is why so many institutions, like nursing homes, have been turning to MSF to help train staff during the COVID-19 pandemic.
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Image by Fathromi Ramdlon from Pixabay

Real estate leaders and professionals have also needed to get creative during this unprecedented time. Here are some of the ways our brokers and realtors have gotten creative as they’ve shifted their real estate businesses online:
  • They work with photographers to create 3-D virtual home tours.
  • They livestream open houses as virtual events.
  • They send memorable gifts to clients (e.g., face masks and home-made hand sanitizer).
Doctors Without Borders/Médecins Sans Frontières (MSF) is a unique organization with amazing professionals doing much needed work. But the lessons of leadership apply to every business in every industry. When leaders focus on building relationships, there’s no limit to what we can do together.
Bao Le is a philanthropist, tech expert, and CEO of Boass Digital which is a marketing agency for top Real Estate professionals. Discover his system for doubling your closings by booking a call here: https://bit.ly/314aeH1
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Victoria Kennedy [email protected] atmanrealestate.com

Nominated as a 2020 Brand Ambassador for Inman, Victoria Kennedy is a well-respected authority in Real Estate marketing and branding. She is the CEO of Atman Real Estate, a marketing & branding agency that is committed to helping top producing Real Estate professionals become the #1 Agents in their area. She is a highly in demand speaker on all things digital marketing, and has helped many clients boost their visibility and revenue. Because of her expertise in real estate, she has been a trusted speaker and contributor to such organizations as the National Association of Real Estate Brokers, Inman News, and Yahoo Finance. In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realties, Title Companies, Investors, and top producing agents. She has been featured in over 175 publications and podcasts both nationally and internationally. In addition to her marketing expertise, Victoria is a #1 selling classical-crossover singer and has sung with the likes of Andrea Bocelli, as well as toured all over Europe with her music. She is excited to share with you the power of her Closing Maximization Method and how it can exponentially grow your business. Find out more here: atmanrealestate.com

The Millionaires Investment Group

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Michael Poggi, President of The Millionaires Investment Group, llc. Professional investor, National Speaker, Educator, Consultant and Motivator shares his vast knowledge of how YOU can benefit personally and professionally by learning about the hottest opportunities in investment Real Estate AND turn key business franchise opportunities inside WALMART, all tax free!!!

WHO IS THE MILLIONAIRES GROUP ?

20 year old investment network started by Michael Poggi – Focused primarily on finding investment strategies in many sectors including Real estate, turnkey franchises, private lending and much more. The group is composed of accredited investors, Private institutional funds, IRA investors. There are over 1800 Active Investors Nationwide and 10,000 Members. They teach secrets about investing tax free using IRA’S and 401k plans. Investors like you partner with the group and with other members if needed in new construction, the hottest turn-key proven franchises, and vacant lots in resort communities using cash, IRA’S and 401 K plans.

Things to know:

There’s a secret that the richest Americans use to create and keep their wealth. They use tax-deferred or tax-free dealings in real estate and other exceptional investments. If you own an IRA, or if you are thinking of opening an IRA, you have the same opportunity to unlock that secret and build wealth for yourself.

Smart investors are earning 15 to 20%, or more, inside their Self-Directed IRAs. The money in their IRAs compound tax-deferred or even tax-free for as long as the IRA is in existence.

Most people realize that they need to save for retirement, but have a tendency to place this on the bottom of their “to do” list. It’s hard to think about the future when the daily issues of life are enough to fill our time. The sooner you start planning, the better off you will be. What do you have to look forward to?

The senior population is dramatically increasing, especially as the baby-boomers enter retirement age. These seniors are living a healthier lifestyle with better medical care, leading to a longer life. A longer life span means more money is needed to provide a comfortable lifestyle in those later years. Where will this money come from?

Social Security benefits will barely account for enough to provide for even basic necessities. If you have other income, up to 85% of those benefits can be taxed by the federal government. If you begin taking the benefits before age 66, your benefits will be lowered permanently. With the increasing number of retirees pulling money out of the Social Security system, there are concerns that the system will run out of money for future generations. Can you depend on Social Security for all of your expenses?

What is a Self-Directed IRA?

A Self-Directed Individual Retirement Account is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee/custodian will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the Self-directed IRA owner for the life of the IRA account. Self-directed IRA accounts are typically not limited to a select group of asset types (e.g., stocks, bonds, and mutual funds), and most truly self-directed IRA custodians will permit their clients to engage in investments in most, if not all, of the IRS permitted investment types. Some of the additional investment options permitted under the regulations include, but are not limited to, real estate, franchises, partnerships, private equity, etc. Self-directed IRAs, by allowing a wide range of investment choices, improve the account owner’s opportunities to diversify their IRA portfolio(s).

Why should I have a Self-Directed IRA?

The government is running out of money and encourages people to provide for their own retirement by offering HUGE tax advantages to anyone investing through an IRA. With a self-directed IRA, you can invest in real estate, something most people can’t do with a traditional IRA.

A self-directed IRA allows you to invest your funds yourself into investments like solid long term real estate, which means you can earn a lot more for your retirement than you would with a traditional IRA.

Four Basic Facts about Self-Directed IRA Real Estate Investments.

  1. Limited custodial participation and reduced custodial fees. Means you have more control and can earn more money.

  1. The difference between traditional IRAs and self-directed IRAs is the breadth of options for investing. Traditional IRAs only permit investment options in approved stocks, mutual funds, bonds, and CDs which are usually not the best choices.

  1. A self-directed IRA allows you to have complete control over your funds, with most people opting to be custodians of their accounts.

  1. Self-directed IRA real estate investments can be very profitable if handled and managed correctly, which is why many people decide to pursue these alternatives to constrained, traditional IRA investing. Before setting up a self-directed IRA, you should contact us for help with the right type of IRA and the right investment strategies.

Self Directed IRA real estate investments make good sense. Not everyone has them, because not everyone is aware it is possible to have them. If your financial advisors only advise you to put your IRA money into stocks and bonds, you may not know anything about Self Directed IRA for real estate and businesses.

You may be someone who doesn’t have the time to spend educating yourself on other areas that the IRS allows you to invest your tax-free or tax-deferred retirement funds. In this article, you can learn a few things about investing your IRA money in real estate and businesses.

There are eight things you need to know when considering investing in real estate with a self directed IRA. They are listed below:

1. Your IRA cannot purchase property that is already owned by you or a disqualified person. A disqualified person is your spouse, parents, grandparents or great grandparents, children and their spouses, grand children and great grand children and their spouses. There are a few others, which you can find in IRS Code Section 4975.

2. You (or any disqualified person from the list above) cannot receive indirect benefits from property owned by your IRA, such as taking a vacation in resort property or renting office space in commercial property that your self-directed IRA owns.

3. Your IRA needs to be titled in the name of the IRA, NOT in your personal name.

4. The real estate in an IRA doesn’t have to be 100% funded from your IRA. You can partner with a friend or family member. For example, let’s say you found some property for your self-directed IRA real estate account, and you need $100,000 in order to purchase it. However, your IRA account only has $25,000. In this case, your friend could provide the other $75,000. Your friend would own 75% of the property and your IRA would own 25%.

5. If your self-directed IRA uses financing to purchase real estate, the loan must be a non-recourse loan, and your IRA must pay unrelated business income tax or UBIT.

6. All expenses, such as maintenance, improvements, property taxes, and any other expenditure to own and/or maintain the property must be paid from the self-directed IRA. No personal funds may be used for any expenses.

7. All income from the IRA must also go back into the IRA account. You may not deposit any money, such as rental income into your personal account.

8. You will need someone like us to help you fill out all the paperwork required by the IRS. We are very familiar with each of the points above. We can help you through the entire process, even the most important part of finding the right investment strategies to bring you great returns. You can find your own properties, franchises or strategies, but unless you have lots of experience and you are an expert, your best bet is to leave that part to the professionals like us. We have several investment strategies available for you to participate in either with us as a partner or on your own.

CALL OUR OFFICE FOR MORE INFO TO HELP YOU GET STARTED

THE MILLIONAIRES GROUP

954-306-3586

WWW.THEMILLIONAIRESGROUP.COM

Best Kept Secrets To Get More Motivated Sellers Contacting You

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By: Kathy Kennebrook, The Marketing Magic Lady

Getting motivated sellers to contact you first is essential to any successful Real Estate Investor’s business. A truly motivated seller is the key to a good deal; the more motivated the seller, the better the deal. You will find very quickly, as I did, that you will be able to buy a lot more houses at much better prices if you target the right sellers. You will also get the terms you want when the seller contacts you first, especially in some of today’s really hot real estate markets. You’ll want to target the kind of sellers who truly need to sell as opposed to those who just want to sell, including those sellers in pre-foreclosure.

Marketing to sellers is also a numbers’ game. The more motivated sellers you are able to locate, the more motivated sellers you will have contacting you, and the more opportunities you’ll have to make good deals. The secret is in learning how to find the truly motivated sellers.

Whom exactly are you going to be marketing to? Motivation comes in many forms. Sellers need to sell for a variety of reasons. Some reasons have to do with the sellers themselves, such as age, health status, job situations, personal situations, financial difficulties, change in family size or change in marital status.

Other reasons might have to do with the property itself, such as an estate, a property that needs too much work, or a property that has been vacant for a significant period of time. This would also include land lords who have simply had enough of tenants damaging their properties over and over again.

So how do you find these sellers and how should you market to them? The best way I’ve found to do this is by using at least three to five different marketing strategies at all times. One of the multi-pronged marketing approaches is the proper use of direct mail to reach these very motivated sellers. You always want to be reaching your market in a variety of different ways to draw the highest number of motivated sellers to you.

The BIG secret to effective direct mail campaigns is to use them over and over to the same potential sellers. As you will quickly discover, given time, almost every potential sellers’ circumstances change and make them more ready to sell.

I also find that these mailings are very residual. These potential sellers will hold onto your direct mail pieces until their circumstances dictate that they contact you, especially since they probably have not had any contact from anyone else, because usually their properties are not being actively marketed.

Since they are not being actively marketed, there is virtually no competition for these deals. And… if you take the time to actively follow up with your direct mail campaigns and with your sellers, these sellers will contact you first when they need to sell, even if they have been contacted by someone else in the meantime.

This makes it even easier for you to make a good deal. In addition, during the time you have been mailing sequentially to these potential sellers, you continue to build credibility with them. This will give you a significant advantage over your competition, since these sellers feel they already have a “relationship” with you.

The biggest part of the secret is to find the sellers who really want to sell. I use different direct mail campaigns to successfully locate several types of motivated sellers depending on what kind of deals I am specifically looking for in my business. The best way for you to build your business quickly is to use a number of different methods to draw motivated sellers simultaneously.

This can best be done by locating mailing lists and refining them to meet your specific criteria, and then mail to them over and over, cleaning your lists as you go. I find that I get the best results by mailing to my lists at least every sixty to ninety days. This is very easy to do if you implement a follow up system which will help you to track your mailings and your deals.

You’ll also quickly discover that different types of direct mail pieces and lists work better in some parts of the country than in others. Some of these lists might include mailings to out of state property owners, burned out land lords, quit claim deeds, military transfers, estates or pre-foreclosures. These are all sources of highly motivated sellers.

Be sure to give your potential sellers several different ways to contact you such as mail, e-mail, fax, phone and a website. The more ways you give these sellers to contact you, the more of them will contact you, especially when you make it more convenient for them by giving them several ways to reach you. This way they can contact you in the way that is the most comfortable for them and at their convenience.

When you learn how to get motivated sellers contacting you and then learn how to purchase properties using a number of different methods, the possibilities become almost endless. If you use several different methods to get motivated sellers contacting you, you will have more opportunities than you can even imagine. You get to pick and choose the deals that you want to do! Because you get to pick and choose the deals you want to do, you can also pick the exit strategy that most suits your needs, such as wholesaling, renting, selling or lease/options. There is no other marketing strategy that gives you this much control over your deals.

In addition, in today’s market, since so many folks are focused on pre-foreclosures, there is a whole other market of sellers who need our help as well, like divorces, estates and probate, military transfers, burned out landlords and Spanish Speaking homeowners. These are just a few of the types of sellers we need to be concentrating on to create great deals, including those that come with owner financing.

Using direct mail campaigns to market to motivated sellers and developing a “cookie cutter” system to accomplish this is one of most affordable, reliable, and effective ways that I know to build your business quickly and have more qualified motivated sellers contacting you than you will be able to handle.

For more information on Kathy Kennebrook’s marketing tools to find all the motivated sellers and lenders you need for your real estate investing business go to Kathy’s website at www.marketingmagiclady.com. While you are there be sure and sign up for her monthly newsletter and receive $149.00 of real estate tools absolutely FREE!!

Kathy Kennebrook

Contact Info:

Kathy Kennebrook
Dagger LLC
P.O. Box 14343
Bradenton Fl 34280

941-792-5390
941-795-6887 (fax)
[email protected]

Kathy Kennebrook is the ultimate success story. She spent several 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 accounting 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 Donald Trump, 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, Donald Trump, 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.

VERDICT: GUILTY!

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By Kathy Kennebrook (The Marketing Magic Lady)

“If you were arrested for being a real estate investor would there be enough evidence to convict you?” I was once asked! I wholeheartedly responded with a resounding, “YES!” You must be able to do that which makes you stand out from your competition. As you begin your campaigns as part of your overall marketing strategy and goal, continue to diligently test and track results as you go. You MUST be able to determine what marketing tools work best for you in your market place in order to draw the highest number of motivated sellers to your real estate investing business.

People often ask me, “What is the best way to find motivated sellers and buyers?” My response is to do that which your competition will not and do a lot of it. Dare to be different in your approach to locating motivated sellers. Analyze, discover and continue to rediscover the best combination of marketing methods that will generate the highest number of motivated sellers for your business. Develop three to five marketing techniques that give the very best lead-generating leverage possible and devote your resources to those marketing techniques which net the very best results. As simple as it may sound—don’t spend time on something that is not productive.

Constantly test and track new marketing techniques since your market and your business will continue to change over time. In most cases, change IS good, especially if YOU plan that change. Spend time listening or reading about those who have come before you and developed marketing strategies that draw high numbers of motivated sellers to you. Spend your time and energy constantly seeking new knowledge about new combinations of marketing methods to create even more leads. Pursue innovative marketing methods in your business to bring you the highest number of motivated sellers. Be innovative. You’ll get “status quo” results if you stick to the status quo!

Don’t be afraid to use unusual types of marketing products such as florescent orange or pink business cards, post cards or signage to attract sellers. Use t-shirts in your business and wear them all the time. We even had a t-shirt made for our German Shepard dog. When we would take him for a walk people knew what we do for a living. “Wrap” your vehicle in signage and be sure to include a web site address. Implement several different ways to attract sellers since you will need to reach your market in a variety of ways.

Direct mail is another essential tool to use to attract lots of motivated sellers. This is a method most of your competition is not using in their business. Implement mailings on a residual basis so you are in constant contact with these sellers. When their circumstances dictate that they do so, they will want to sell to you first, even if they have been contacted by someone else in the meantime, since you have taken the time to build credibility with these sellers. Use lumpy mail pieces in your envelopes to entice your reader to open the envelope and read your message. Design your direct mail piece so different that it demands people’s attention, so it gets opened and read.

Don’t be worried about people who make negative comments about you or your marketing methods. You will be the one who will get “the last laugh” all the way to the bank with the profits from your real estate deals. Throw your business cards out into the bleachers when your children’s team scores a point. Give business cards to everyone you deal with on a daily basis. Write an article on real estate and submit it to your local newspaper. Offer to do a free talk on real estate for your local radio station or your local library.

Become a local expert in the real estate field and sellers will seek you out first when they need to sell.

A marketing genius once said, “Perception is more important than reality.” People are more comfortable dealing with someone they perceive to be an expert in their field.

Most importantly, absolutely KNOW what your competition is doing. Literally track their every technique. Research and find out all that your competition is doing. Knowing about your competition gives you the ultimate edge over them. The more you know about your competition, the better idea you will have about your market. One of the best ways to find out what your competition is doing is to join local associations or clubs where you are likely interact with them.

There are lots of great ways for you to stand out in your business. Don’t be afraid to be different. Although you will still use some tried and proven marketing techniques, those who are willing to take a little risk are the ones who are the most successful.

Believe me when I tell you, some of these lessons come from difficulties, pain, and even a couple of failures along the way. But once you make a mistake, never make that same mistake again! Different gets attention and that’s what you want, to get the attention of sellers who need your services.

Very simply, if you don’t let people know that you buy and sell houses, you won’t! Dare to be different in your approach to finding motivated sellers and buyers.

So when someone asks you, “If you were arrested for being a real estate investor, would there be enough evidence to convict you?”

Your VERDICT must be: GUILTY!

Kathy Kennebrook

Contact Info:

Kathy Kennebrook
Dagger LLC
P.O. Box 14343
Bradenton Fl 34280

941-792-5390
941-795-6887 (fax)
[email protected]

Kathy Kennebrook is the ultimate success story. She spent several 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 accounting 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 Donald Trump, 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, Donald Trump, 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.

Memphis Invest and Three Other Clothier Companies Honored On INC.’s 5000 List

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By Tim Houghten

Steady, Sizzling, Superior Real Estate Strategy

What’s the secret to winning in the real estate race? The tale of the tortoise and the hare used to be a staple in everyone’s education. That appears to be a part of the lesson plan that’s been torn from the pages for many today. Do you remember who won the race? What we all need to remember is the horde of hares that rushed themselves right out of the running just a few years ago. So how can real estate investors achieve steady cash flow, sizzling returns, and superior long term results, without risk of burning out?

WINNING REQUIRES WISDOM

Soccer games don’t have all the breaks of American football. In order to win it not only takes great team work, but superior stamina. It also requires that players know when to sprint into action and push, and when to act tactically. True wisdom is the meeting point of knowledge and knowing the right time to act. In real estate it takes stamina to maintain gains for the long run. It requires intelligent execution of action, knowing when to hold, and what to focus on.

Yet, in the current environment where anything but rushing in like a bull seems strange, who on earth would have the courage to moderate their growth and pace on purpose?

An exclusive interview with Partner and VP of Sales & Marketing at Memphis Invest, Chris Clothier reveals a firm that has been willing to do just that. The net effect of the approach certainly seems to be wowing a sufficient number of savvy investors. And given the number one turnkey real estate company’s status as one of the best known, and most respected brands, a blossoming WOW Club, and being crowned with Inc. 500 recognition, it seems to be working.

The 3 S’s of Memphis, Tennessee’s Most Successful Turnkey Real Estate Company

1. SOCCER

Chris Clothier says “The high-level training and licensing I received as a professional soccer coach have paid off tremendously in business by helping me to stay focused on long-term development both of myself, our clients and our team.”

2. SHARING

While others are increasingly concerned about sharing their secrets and playbooks, Chris has become very active on the online real estate forum BiggerPockets. Asked about this participation in the new sharing economy he says: “When I was 18 years old I was lucky enough to attend a Zig Ziglar event. He said something on stage that really had a profound effect on many of us attending that night. He stated that you could have anything you wanted in life, if you help enough other people get what they want in life.” That’s a philosophy the Clothiers continue to practice on a daily basis.

3. SUSTAINABILITY

On ensuring sustainable growth when others find it impossible to throttle their ambition Chris said, “Going into 2016, as leaders of our company, we began planning for moderating our growth rate, and spending the next 15 months improving upon our processes, hiring additional team members, and implementing a new, interactive training program to create even greater congruency. It is easy to grow too quickly and in a haphazard way. We feel that this is a perfect time to re-calibrate everything we do, and how we deliver our services to our clients and tenants as we prepare to begin growing more rapidly again in 2017.”

THE SCOREBOARD

What are the results of this approach to building a real estate machine? As of today, Memphis Invest’s founder says, “We now have over 1,125 clients, offices in Memphis, Dallas and Houston, with a team that is 63 members strong, and are on-pace to close 600+ transactions for our clients this year alone.” There’s nothing sluggish about those digits.

UP YOUR GAME…

Whether just starting out in real estate, or seeking to expand an already formidable real estate empire there is no question that it’s worth checking out what’s going on in Memphis. Investors can scoop their Free Passive Income Jumpstart Package, and detailed analysis of three solid rental property markets, Houston, Memphis, and Dallas, at MemphisInvest.com.

Will “Power” Duquette – Finding Your Path & Achieving Significance

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by Tim Houghten

Choose where you want to go and figure out how to get there. Sounds easy, right?

International trainer, consultant, real estate investor and speaker Will Duquette empowers people to make as much as six figures an hour. So how did he land this prestigious gig? How does he help you unlock your income potential?

BREAKING THROUGH WITH WILL POWER

Sometimes it can be hard to differentiate the hype from the real deal out there today. There’s a lot of noise and fluff. But you won’t find that when you attend one of Will “Power” Duquette’s high-powered events or one-on-one consulting sessions. The proof is in the results.

Duquette has…

• Helped Shark Tank investor, co-founder and CEO of HSN Direct International, and author of

“Act Now: How I Turn Ideas Into Million-Dollar Products”, Kevin Harrington, to catapult his on-stage sales – with five PowerPoint slides.

• “Never lost a penny in 17 years of investing in real estate.”

• Just “bought” a property with $110,000 in instant equity last week, with no money down.

• Had real estate investing students make $70,000 in less than 30 days after training events.

• Helped the Jax REIA President crush it with a 25% closing ratio.

• Had 12 year real estate veterans raving about the value of his experience.

• Has shared the speaking stage with Donald Trump and Richard Branson.

• Is launching a YouTube challenge to 2016 Presidential candidate Donald Trump.

FROM PAUPER TO MILLIONAIRE MINDSET

Will is dogmatic in his belief and service in helping others to not only achieve their financial goals, but personal dreams and more. In fact, he says, “Anyone can receive great wealth and significance, without needing anyone else’s permission. If they’ll invest in learning, and take action.”

Duquette insists it is this combination of effective training and action that has not only unlocked the massive success potential of his clients, but his own as well. He says there are irrefutable laws like gravity, and our subconscious that run us, and differentiate our results. Through recognizing them and harnessing their power, Duquette empowers leaders to “experience life transformations that stay with you and serve you.”

THE SHIFT

Will Duquette says Donald Trump offers the classic example of how wealthy people think differently. When Trump was $900 million in debt, he didn’t hide like most would. So what did he do? Operating from that millionaire mindset, he attended a cocktail party with those creditors that he owed $900 million to. Gutsy, right. Yet, in a side room at that event, Trump surrounded himself with this mastermind group, and not only seriously discounted this sum, but leveraged their wisdom to craft a massive success plan. Trump is now worth almost $9 BILLION, and is running for U.S. president.

So if you want different results, you’ve got to take different actions.

But beyond just curating the success habits of others; Duquette has lived it himself. When he was young, he was always told that his family couldn’t afford things.

When he found out that he was going to have his own child – that’s when it changed everything, and created a new sense of urgency. He didn’t want that to be the story he had to tell his daughter. Still, he admits that it took several shifts and years for him to make his own ultimate leap. Because most of what he teaches today just wasn’t shared or known back then.

HOW WILL GOT THE POWER IN 7 QUICK STEPS:

1. Got fired from the rat race after calling in sick for having pneumonia

2. Opened his own business

3. Began investing in real estate to make bigger chunks of money

4. Discovered the power of blind faith belief

5. Accepted his ‘license to make mistakes’

6. Learned how to manage and change his own perspective on happiness

7. Decided his apex was in significance through helping others, not just making money

THE 4 KEYS TO WILL’S PERSONAL SUCCESS

When Duquette started on his adventure the close-knit group that was banking huge in speaking and sales weren’t sharing their secrets. They kept those closely guarded. Yet, he found a way. And he credits his own success to four main factors.

• Vowing to never give up

• Modeling success wherever he could find it

• Investing big in education

• Just taking action

Duquette says the really significant quantum leaps came when he forced himself to step out of his comfort zone and chose to “pay more than comfortable with” for better training. In one case that meant putting $10K on a credit card to really learn how to take his game to the next level. And today, Will might not notice if ten thousand dollars dropped out of his billfold on the way to the podium.

UNIQUE PERSPECTIVES ON REAL ESTATE

Duquette trains real estate speakers and investors, and still invests in real estate himself. While you may find him gracing the stage at events in London, Prague, and Germany, Duquette’s home base is in Jacksonville, FL. While often overlooked by others; ‘Jax’ is the largest city in the contiguous United States, and the most populous city in Florida. It has also been praised by RealtyTrac as offering the biggest profit margins for house flippers. But you don’t have to tell Duquette that. He once bought a half a million dollar home with just $10 out of pocket, and has mastered a transaction engineering skill set that allows him to invest in many properties with nothing down. Duquette says it is all about “looking for problems and finding solutions.”

While he says that world travel and international training has revealed that all people essentially have the same fears, challenges, and belief issues, he himself certainly has a unique perspective, and style, that is proving itself with dollars and changed lives. He claims to be perhaps one of the only people to not have lost a penny in 17 years of real estate investing. His high energy, experiential real estate events that include live deal making have produced profits for attendees before they are done with their homework.

And the ‘Profits in Pretty Houses’ course is reportedly one of the first and only to include a flow chart so that investors are never stuck, or wondering what comes next.

Looking forward Duquette says the market is just like it was seventeen years ago, only better. “Because all the fundamentals are right, but others are scared to take advantage of the opportunities on sale.” As well as noting that rather than hurting his business, “massive buying sprees by hedge funds have actually helped” his business, as “they have depleted inventory levels”, and make his properties more in demand.

CHOOSE WHAT YOU WANT & DUQUETTE WILL UNLOCK YOUR POWER TO ACHIEVE IT…

Will “Power” Duquette offers sales, confidence, and personal development training, real estate speaker training, speaker services, real estate investment courses, and one-on-one consulting. Find out how to get more of what you want at www.willpowerduquette.com.