Should I Buy a Rental Property with Great Cash Flow in a Bad Location? Today I’d like to get your opinion.Is price everything? Also, how much of a role does location play for a real estate investor?Let me explain.This week I was presented with an interesting deal that I am considering.The property’s numbers are great – $97,000 for six units, average rent at $475 per month, which following the 50% rule leaves $1400 for a mortgage payment – plenty to cover the loan payment and provide … [Read more...]
Should I Buy a Rental Property with Great Cash Flow in a Bad Location?
October 14, 2012 By Leave a Comment
How to Reduce Your Property Tax Assessment
October 8, 2012 By Leave a Comment
How to Reduce Your Property Tax Assessment The downturn in the real estate market has created a potentially ideal situation for anyone who holds real estate. This is because you have a good chance of reducing your property tax assessment and thus your property tax burden by appealing the value. I have saved thousands of dollars by appealing my property tax values, and you can as well.Your property taxes are based on the “fair market value.” The local tax assessor is supposed to … [Read more...]
The Five Financial Benefits of Real Estate Investments
October 1, 2012 By Leave a Comment
The Five Financial Benefits of Real Estate Investments Financial advisors will tell you that there are five ways that you can earn a return on any investment. In no particular order, these are:Cash Flow or Rate of ReturnFederal Tax BenefitsLeverage of OPM (Other People’s Money)Principal PaydownAppreciation.One of the wonderful things about real estate is that you can get all five! Real estate is the only investment that I know of that potentially gives you all of these advantages!Think … [Read more...]
Cash Reserves For The Long Term Real Estate Investor — Things Change
September 18, 2012 By Leave a Comment
Cash Reserves For The Long Term Real Estate Investor — Things Change As happens often in conversations with ongoing clients, I bring up the subject of cash reserves. It usually surfaces naturally when they make known their desire to explore the acquisition of more investment property. Since we all live in the universe of reality, we understand the status quo is but a measurement of the here and now. Assuming your financial status has remained static the last 1-5 years is a mistake we simply … [Read more...]
Letting Go To Grow Your Business
September 10, 2012 By Leave a Comment
Letting Go To Grow Your Business When I first became a full time real estate investor and quit my “real job” I was very concerned about cash flow. Even thought I had done my home work, that nagging voice in the back of my mind kept asking questions. Did I calculate things correctly? What if I made a mistake? Am I sure I will have enough to pay all the bills?What was my reaction to all of these questions? It was to keep expenses down by doing many things myself. I did many of … [Read more...]
The Hardest Part of Buy-and-Hold Real Estate Investing: Delayed Gratification
August 28, 2012 By Leave a Comment
The Hardest Part of Buy-and-Hold Real Estate Investing: Delayed Gratification Let me start this post by saying I love “buy-and-hold” real estate investing. I just wish it was easier.Flipping real estate or wholesaling deals is appealing, as cash is quick and you know in a short time frame if you have made a good deal. Unfortunately, buy-and-hold real estate can take a long time to generate a meaningful amount of cash flow.This leads me to today’s topic, as I want to highlight what I … [Read more...]
News Flash! TIMING The Maximization Of Your Cash Flow Is KEY
August 28, 2012 By Leave a Comment
News Flash! TIMING The Maximization Of Your Cash Flow Is KEY If you’ve been investing for the long run, it’s almost axiomatic you’ve read a buncha how-to books, watched countless webinars and/or videos on the subject. Most of ‘em, at least from where I sit, give solid advice, if considered in a vacuum. For example, the counsel encouraging cash flow is a no-brainer, right? Not so fast, QuickDraw breath. If you’re 39 years old with 10-25 years to retirement, what on earth does a lotta … [Read more...]
Global Cash Flow – Real Estate Financing’s Newest Buzz Words
August 2, 2012 By Leave a Comment
Global Cash Flow – Real Estate Financing’s Newest Buzz Words There is nothing worse than finding just the right investment property that you know will make you great income, only to have the opportunity fall through because you got turned down for financing. It’s even worse when you see someone else pick up the property and make a fortune. It’s a devastating feeling, but one that real estate investors face every day with all of the changing lending guidelines.You located the … [Read more...]
Using High Interest Private Financing is Still Better Than Cash
May 16, 2012 By Leave a Comment
Using High Interest Private Financing is Still Better Than CashWith investors battling a tight credit market, the opportunity to obtain financing for investment properties can often times prove more difficult than expected for some investors. Five years ago many of these same investors had no problem walking into their local lender’s office and getting approved for a loan. Nowadays, it seems like underwriters need a blood sample to approve a loan for an investor (even when that investor could … [Read more...]
The 3 Types of Mobile Home Sellers (Inside Parks)
May 4, 2012 By Leave a Comment
The 3 Types of Mobile Home Sellers (Inside Parks)My real estate investing business changed forever when I began to see my sellers for what they really are; fragile, scared, vulnerable, friendly, and selfish human beings. As young children we rarely look to our parents with the attitude that these people are just as screwed up as ourselves. Perhaps a better way to phrase this would be to step outside the relationship that we typically have with mobile home and traditional real estate sellers, and … [Read more...]
Investing Strategy that Works in ANY Market Especially Real Estate
March 4, 2012 By Leave a Comment
Investing Strategy that Works in ANY Market Especially Real EstateOne thing that the last several years has taught us is that financial markets can go up and they can go down. The real estate market is no different. When markets go up, everyone is happy and even bad investments can turn out okay. When markets go down, investors who used the wrong real estate investing strategy at the wrong time can get wiped out. Down times separate the good real estate investors from the bad or just lucky … [Read more...]
Investing and Retirement Planning
March 2, 2012 By Leave a Comment
Investing and Retirement PlanningI learned very early on that many real estate veterans are big fans of note investments. It wasn’t until I had seen enough toilets, tenants and trash that I understood what they were getting at…… the consistent cash flow that comes from the note!!I want to give you another perspective to consider in your investing business, note sales. The government and financial advisers will often tell you the best way to prepare for retirement is to invest in … [Read more...]
Pros and Cons of Working with A Turn-Key Company
February 23, 2012 By Leave a Comment
Pros and Cons of Working with A Turn-Key CompanyWith such a diverse collection of real estate markets around the country, investors have many choices when it comes to where to invest in real estate. Some investors look for areas that were hit hard by the real estate crash in hopes of acquiring property that will experience a recovery in values over the next several years (ex. Phoenix, Las Vegas, Orlando). Other investors look for markets with very inexpensive properties that cash flow well, but … [Read more...]
Investors: Be Smart About Your Property Insurance
February 16, 2012 By Leave a Comment
Investors: Be Smart About Your Property InsuranceProperty Insurance is one of those nuisance expenses you always see calculated into mortgage payments and cash flow projections. It’s the second “I” in the acronym “PITI” (Principle, Interest, Taxes, Insurance), which most investors use to describe an overall monthly obligation on a property. While unexciting and usually begrudgingly paid, I would argue that property insurance is one of the most important components in a real estate … [Read more...]
Why We Don’t Flip Real Estate as a Part of Our Business Model
February 15, 2012 By Leave a Comment
Why We Don’t Flip Real Estate as a Part of Our Business ModelAs we meet additional contacts and speak with other real estate investors, one question we are asked frequently is,“Why don’t you Flip Real Estate?”I understand where the question comes from, as many individuals feel flipping is the easiest path to investment riches. They make it look so easy on TV and sound like a cinch in the real estate Books. The fact is, it is not easy but it certainly can be very profitable if you can … [Read more...]
Real Estate Investment Schools of Thought Vary
February 3, 2012 By Leave a Comment
Real Estate Investment Schools of Thought VaryI had a customer call me a while back. He’d invested in his first small income property, and was troubled by the advice his 70 year old dad had offered. In fact, there was tension between them about what investment strategies the younger man should employ. Dad, we’ll call him ‘Sam’, had a core belief that debt, even in the best light, was nearly evil. Nothin’ good could come from it, and everything awful was almost assured, due to its … [Read more...]
Attention Cash Buyers With Cheap, Free ‘n Clear Rental Homes
January 24, 2012 By Leave a Comment
Attention Cash Buyers With Cheap, Free ‘n Clear Rental HomesIt’s so enticing to be able to buy a home relatively cheap, for cash, isn’t it? Sometimes, though rarely, it’s even better when they’re young and pretty. If there’s little or no fix-up, the high lasts extra long. You’re in that sweet career spot where you’re above the middle point in your career earnings, say 40-55 years old or so. The cash flow literally makes you giddy at times. You’ve got four of ‘em now, and are … [Read more...]
Appreciation or Cash Flow — Which is Better?
January 19, 2012 By Leave a Comment
Appreciation or Cash Flow — Which is Better?Yes I know, I am treading into a debate which in all likelihood would cause a real brawl if discussed over a few beers, but that is not my intention.My intention is really simple. Is today’s market a better market to be investing for appreciation or for cashflow? In some markets the answer might be BOTH, but I doubt it!I am constantly discussing goals and objectives with new and experienced real estate investors and invariably the discussion … [Read more...]
Winning Monopoly
January 7, 2012 By Leave a Comment
The formula for winning Monopoloy is to get 4 green houses, and then a Red Hotel. The formula was drilled into my head as a child for building wealth and winning the game. I had no idea at the time that the formula could also be used in the real world for building wealth and massive cash flow as a real estate investor.In the game of Monopoly, you want to invest in as many properties as possible. Once you own properties, you can collect rent from your opponents every time they land on your … [Read more...]
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