Private Lending: Pros and Cons One of my investors called me up today and told me he had decided he was ready to get into the lending business. He had already purchased a number of properties over the last year or so and was ready to diversify his real estate investing strategy. Part of his decision making process had to do with the tedious financing process he had experienced when buying a property a few months prior, but I think most of the decision had to do with a desire to branch out … [Read more...]
What’s That Underperforming Property REALLY Costing You?
September 12, 2012 By Leave a Comment
What’s That Underperforming Property REALLY Costing You? I was out of town last week and had an opportunity to meet a number of different investors on my trip. One conversation in particular stuck with me because I believe the scenario is common to a lot of people. Many investors that are in the market today for investment properties were the same ones that were buying properties either during the real estate frenzy of the mid-2000’s or on the front end of the recession (before prices had … [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...]
Fixing and Flipping: Determining Target Price Point
May 31, 2012 By Leave a Comment
Fixing and Flipping: Determining Target Price PointThe G.I. Joe Jet. Man, did I want that toy. I remember my friend Robby and I drooling over it at the department store the summer of 1984. Together we owned every other figurine and vehicle in the collection – from the Ninja to the Jeep. Unfortunately, we never acquired the Jet. At $20 the target price point was too high. By the time we had enough cash to buy it we had moved on to a more expensive hobby – BMX racing bikes.The cash in your … [Read more...]
“Smart Money” Woke Up – Now What?
May 29, 2012 By Leave a Comment
“Smart Money” Woke Up – Now What?I don’t know about your market, but I can point to the day the “Smart Money Woke Up” and started changing the real estate fundamentals for the buy-and-hold investor. It was like a starters gun went off and competition tripled, prices went up 20% in the distressed market and bidding wars became not only commonplace but also became the norm.I believe the trigger was pulled by Warren Buffett and his now famous quote that went something like this:“I … [Read more...]
Value Disputes and Bank of America Short Sales
May 22, 2012 By Leave a Comment
Value Disputes and Bank of America Short SalesIf you have completed more than a handful of short sales, then you have likely have been involved in a value dispute with the short sale lender. During the course of the short sale, the short sale lender sends out another Broker to complete a Broker Price Opinion (BPO) for the short sale listing. The bank then, in most cases, bases their price on the value stipulated in the BPO. However, often times, there is a discrepancy between the value … [Read more...]
Consider Secured Notes As Another ‘Basket’
April 10, 2012 By Leave a Comment
Consider Secured Notes As Another ‘Basket’When sellers needed to sell, and buyers didn’t come in crowds, a note looked pretty dang good. In today’s market, that strategy would die on the vine most of the time. Way too much cash and low cost loans. How beginners can build their capital more efficiently using notes.I get calls from folks who have $15-30,000 and wanna get started investing long term. Since I deal in blue chip locations and properties, that’s not quite enough. The top of … [Read more...]
Entrepreneur Access to Capital Act
February 9, 2012 By Leave a Comment
Great news about the Entrepreneur Access to Capital Act!Currently the general rule is that every offering of a security must be registered with the SEC, unless exempt. Most real estate syndicators (the ones pooling private money from lots of investment partners) try to take advantage of the exemption available through Regulation D, Rules 504, 505 and 506. Each of these rules prohibits the issuer from making an offer through advertising or solicitation, which covers making offers on the … [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...]
Knowing When To Invest In Property Or Not To Invest in Property?
January 4, 2012 By Leave a Comment
Knowing When To Invest In Property Or Not to Invest in PropertyMany Real Estate investors in recent months have noticed a decline in REO and HUD inventory in their markets. While some may speculate that we are finally working through the majority of the foreclosure casualties from the real estate crash, many analysts believe the lack of foreclosures on the market has more to do with government intervention. Whatever the case, an investor who has been consistently buying distressed properties … [Read more...]
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Why Investors Were the Real Heroes of 2011
Why Investors Were the Real Heroes of 2011 A single survey, even if conducted to meet the highest professional standards of opinion research, can only include a limited number of questions, and thus, it can address a finite number of issues.That was the case with the Joint BiggerPockets.com/Memphis Invest survey released last week. I had the pleasure to participate in its design and execution, and we focused to three vital issue investors face: their purchasing plans for the near future … [Read more...]