15 JAN 2021 · Knowing the appropriate time to make an offer isn’t something that most folks think about, however it is something that needs not to be overlooked. Putting out an offer too soon can often lead to instant rejection. Putting out an offer too late may cause the seller to think you are a tire kicker. Sellers often want us to make an offer as soon as possible, why is this? The urgency to receive your offer usually is because of one or two reasons, they are nervous about the selling process and want to get it over with as soon as possible OR because they suspect you might just be wasting their time. Have you ever been concerned about saying the wrong thing to the seller and upsetting or offending them? Does the thought of not knowing what to say to a seller make you a bit nervous? Everyone says to build rapport with the sellers, heck, I teach that too, but I realize it’s a huge challenge to build rapport with a stranger these days. Social Media, The Pandemic, and just plain everyday society make it more challenging than ever for many people to build relationships these days. In recent years humans have grown to be far more skeptical than ever of each other. Some gravitate to communicating via text messaging so they can avoid being face to face or having to speak spontaneously. Others use social media as a means to communicate. It is helpful to understand that being shy doesn’t begin and end with buyers, it’s a real issue amongst sellers too. Fear of confrontation and shyness is a huge part of why many homeowners hire Realtors to sell their homes for them.  For many, it’s worth paying tens of thousands of dollars to avoid a potentially uncomfortable experience. So how do we overcome these issues? One word….TEAM Sales skill is not inside of each and every human, it’s a rare breed that has the skill and enjoys the process.  Some people jump out of airplanes for a thrill, others? (people like me), we SELL! If you are not a Rockstar salesperson and feel you would not enjoy learning how to become that Rockstar, join forces with someone who IS a great salesperson. A great salesperson knows exactly when it is time to make the offer and close the deal. Why waste time learning a skill that you likely will never use and will ultimately make you feel uncomfortable in attempting? By bringing on a salesperson or “acquisition manager” you will garner far better lead conversion results than you could ever expect to achieve on your own. I know you might be thinking but wait! I can’t afford to pay a salesman right now.  I have good news for you, a Rockstar salesperson does not expect to get paid until they close a deal.  This means you can compensate them for the deal itself. Compensation can come in the form of a cash payment at closing, it can even be financed into the deal sometimes!  Wait, what?  Rabbit Hole Warning! Financed into the deal?  Yes, you can pay out to vendors in a deal at the closing table by simply adding the amount of the payout to the sales price and then having the payout listed as a disbursement at closing.  As long as the property appraises for the revised sales price if using a bank loan then everything should work fine.  It wouldn’t hurt to keep your loan officer/processor in the loop as to your intent so there are no “gotcha’s” to sneak up in the final hours before closing. You can bring your salesperson in on the deal and pay them a portion of the net monthly cash flow.  You could pay them a lump sum amount of future appreciation in a specified time frame.  I have paid vendors using a note and mortgage recorded against the property for collateral and then made monthly or annual payments to them. Want to dive deeper into this topic?  Then dig in by listening to this week’s episode.

1 JAN 2021 · Today is January 1st, 2021.  It’s a new year that also marks the end of 2020.  This means 2020 is behind us. Nothing good comes from reflecting back on the drama of 2020. There is no need to look back on your past, instead, let’s get focused on the changes we can make moving forward to better ourselves and those around us.  If you have bad credit or low credit as some say, start paying your bills and correct the situation. Call your creditors and work out a resolution.  If you can’t work through this one problem I guarantee you will fail as a real estate investor because you will certainly encounter greater challenges as an investor than negotiating with creditors. If you are saddled with credit card debt, stop using them today and begin paying them off as fast as possible.  Dave Ramsey teaches Financial Peace University which will make it simple to get out of debt if you are willing to do the work. If you are under-earning, stop overspending and focus on earning what you are worth. If you are not earning what you are worth, change jobs, change careers, or work more hours to get out from underneath the grasp of your creditors. You can fix your own problems, that begins with admitting you have a spending and/or earning problem.  Please stop lying to yourself. Do not leverage the equity in your home, it’s a trap that could leave you homeless. Learn how to raise private money instead.  If you refuse to learn how to raise private money you will most likely fail as a real estate investor because banks only loan money to people who do no need it.  Closing costs alone will greatly reduce and profits you hope to make in the first few years.  Don’t leave your financial future to be decided by some salaried loan officer making chump change as an annual salary. If you are about to do a deal, will it pay for itself?  Are you taking the opinion of those who stand to benefit by you proceeding with the deal?  Sellers Lie, Realtors Lie, Wholesalers Lie…facts are facts so verify everything. Embrace the idea that you MUST generate motivated seller leads to survive.  Nobody will bring a great deal to your front door ever, instead you will need to go out and seek motivated sellers. There is no such thing as a property that is priced right.  Everything is overpriced, always has been always will be so stop looking for a “great deal” to be advertised.  Finding a great deal has nothing to do with the asking price. Sellers, Realtors, and Wholesalers are not appraisers.  Also, the appraiser’s opinion of value doesn’t really matter either.  What matters is knowing if the property will yield the profit margin you believe it will, if not, you are not done negotiating. Don’t guess about anything in 2021.  Don’t guess as to why someone is selling, ASK Don’t try to guess what number a seller will say yes to…talk to them instead. Remove as many middlemen from the equation as ethically possible.  That doesn’t mean you should go around Realtors or wholesalers who have a written agreement with a seller, instead, market directly to non represented sellers yourself and filter them down such that you only speak to the non-motivated ones. The Bottom line is that 2021 can and will be your best year ever.  For that to happen, you have to give yourself permission to fail and continue to fail until you succeed.  You know right from wrong, you know what’s logical and what’s not.  You don’t need to invest tens of thousands of dollars into education to buy an investment property, instead, apply basic logic and you will far exceed your expectations.  

4 DEC 2020 · Have you ever been told “you're not listening to me”   Have you ever felt someone you are talking to is not listening to you?   I notice this more and more every day in society, so much so that I wonder if anyone is listening.   Perhaps social media is to blame…   Maybe it's lackluster parenting skills…   None the less, not listening to other people is one of the biggest failures in communication that we experience in modern times.   I never thought much about this until I joined Toastmasters many years ago.    While a member is giving a speech, others in the meeting are specifically assigned to listen to them speak and count the bridge words, audible crutches, and so on.    For me, this became a very powerful lesson.   When we are interrupted by someone we are speaking with, over time it can become annoying, more importantly, it can become very distracting.   I meet people often who I can barely speak with because I am left feeling I cannot get a word in edgewise.   When lines of communication are shut down, not much good comes from it.    In real estate, it can mean mistakes, misunderstandings, miscalculations, and sometimes it can even kill a potential deal.   I have said for many years that the best deals come from solving problems.    When we have a tough time paying attention or listening, we will overlook problems altogether and find ourselves having a tough time raising money or putting deals together.   How do we fix this?  First, join Toastmasters, it's under $100 a year to join and worth every penny.    Second, practice listening intently, and practice asking questions to fully understand the situation being explained to you.   When talking to a buyer or seller, take time to learn why they are buying or selling, you might be surprised to know that most people have several reasons for buying or selling, knowing these reasons will help you put together great deals.   When the other party is talking, become laser-focused on understanding the actual words they are saying, and if you are unclear on what they mean, ask questions for clarity.    No matter what, don't try to guess what they mean, ask!   Sometimes I will ask the other party if it's ok if I take notes, especially if I am having trouble understanding them.  I have yet to have anyone say no, perhaps because I explain to them that I want to be sure I fully understand their situation fully and don't want to forget anything they are saying.   Becoming a better listener can completely change your business for the better while bringing you more revenue than you can imagine because people will flock to you when they feel you have something to offer them.

27 NOV 2020 · Most Americans are in credit card debt, for many, it seems impossible to ever get it paid off.   Worse yet, a large percentage are focused on “Investing” while remaining in credit card debt at the same time.     In almost every scenario the interest being charged on the debt erases any net gains from money invested.   “Just pay it off,” some say…but for many, it's not quite that simple, but here’s a way to change all that.   In this episode, I am going to show you how to boost your retirement account while helping others escape the clutches of credit card debt forever.   By following my advice in this episode you will likely enable yourself to earn returns far greater than you ever before imagined starting almost immediately.  Listen in to learn more.

13 NOV 2020 · Recently, America was dragged through one of the most important yet volatile elections in history.   Never before has our country been more divided. One thing that we can all be sure of is that we will certainly see lots of change over the next four years.  Some will despise the change, others will embrace it. Here’s what really matters…Your future success depends on your ability to make lemonade out of lemons. Yes, we will see radical socialist agendas being pushed down the aisle and likely made into laws that favor tenants over landlords.  The good news is that it takes time to pass new laws which will allow you (the landlord) to prepare for compliance or allow you to sell and buy somewhere else. Eviction moratoriums will likely be extended, if this impacts you, learn the law because you might be surprised to hear that there are exceptions to this ruling.  If you have non paying tenants, go talk with them, and discuss solutions.   Our country will likely continue to see record unemployment as both small businesses and big businesses continue to fail.  Maybe now is a good time to get better focused on the steps you need to take to get out of that job once and for all. As for being divided, focus on building bridges and mending fences with your political rivals.  Americas being divided was intentional by the system, they want us divided, let's show them we choose to take the high road instead and come together. Federal stimulus money seems to have dried up due to back and forth fighting between the republicans and democrats, when or if it will arrive is unknown.  If you refocus your energy on lead generation you won’t need any stimulus. I know you might be thinking that lead generation is the farthest thing from your mind right not.  I’m here to tell you that there are people all over the place that are far worse off than you might be right now, and you can help them while making money at the same time. In order to help anyone, you need to discover the problem properties in your community.  I have been using a new to me technology tool to accomplish just that.  With this tool, you will have both MLS and Public records data at your fingertips. Go to CashFlowGuys.com/data to get a 7-day free trial. You will be able to find pre-foreclosures, cash buyers, expired listings while having nationwide access to property records.  This software will help you work up rehab costs, find comps, and complete a market analysis without needing a realtor.  If you are a Realtor, this tool blows the MLS out of the water.

6 NOV 2020 · When markets are hot like they are now, many people find themselves getting outbid when trying to buy a house.  This is in part because many Americans feel that the opportunity to use lines of credit or to get loans to finance such purchases will likely go away soon or at least become more difficult to qualify for.  “Use or Lose” fear of loss feelings take over and cause some folks to buy even when it does not make sense. The news is talking a lot lately about the potential for a second wave of Corona Virus.  Many news outlets are reporting that there are a looming eviction and foreclosure crisis that will certainly play a part in crashing our economy. Uncertainty in the stock market has many investors taking to the sidelines by adopting a let’s wait and see approach. All of these factors have an impact on the current real estate buying cycle.  Even non-investors are scrambling to buy anything that hits the market in hopes of locking themself in now by buying while they still can. The most practical way to avoid being outbid is to buy what’s not yet for sale. By this statement, I mean marketing to a specific audience that has a compelling need to sell, yet is not yet listed for sale anywhere. Here are some examples: Expired Listings Lis Pendens Filings Property Tax Delinquencies Change Detection Eviction Filing Records Again, the best way to avoid being outbid is to situate yourself as the only available buyer by eliminating the competition. Tune in to listen to this week's episode to learn more about going direct to the seller.  

30 OCT 2020 · Like many Americans, my mailbox and voicemail box is cluttered by multiple sales offers to install solar on my properties.   First, let me say I love the concept of solar energy, in fact, I have solar panels and a large battery bank installed on our motor home which allows us to remain unplugged as we travel the country.   I was originally intrigued by the concept of solar on my sticks and bricks property until I learned the downside of installing solar on a stick and bricks property.   I thought that it would eliminate the chance of power outages for my tenants, but quickly learned that’s not the case.  This is because of how the systems are required to be designed when installed on a traditional home.   The system is designed to harvest solar energy from the sun and feed it to the power grid.  The power company then monitors how much power your setup supplies and pays you in the form of credits to provide them with electricity.  They then provide your home with power from the grid but only charge for what you use that exceeds what you make and send them.   I was told by all four companies I spoke with that when I sold the property, it would be worth more because it has solar installed, this is FALSE!  In speaking with several appraisers I was told that installed solar systems do not have any impact on the value of a home.   One upside is that you can earn a tax credit for installing solar (more on that in the episode)   Since it offered no benefit during a grid down situation and was grossly overpriced by the install companies, I passed on the opportunity to install solar on my sticks and bricks properties.  I did however install the solar system on my motorhome and therefore received the 30% tax credit.  In the motorhome, it is priceless since it means we don’t have to go to RV parks any longer since we can generate our own power.   Tune in to hear the rest of the pros and cons as they pertain to solar on investment properties.  

16 OCT 2020 · Real estate markets are on fire in many if not all, cities in the US right now.  When markets get white-hot, investors start rushing things and cutting corners to speed up the selling process.   Before we get too ahead of ourselves, let’s review a few tips to make your renovation projects go smoother and avoid headaches.   First, Always use licensed contractors and be sure they have good reviews and lots of them.   Be clear on what the expectation is, prepare a specific statement of work.  This means you will list out each of the items to be completed by the contractor or vendor in a very specific way to include quantity, size, and color.   If anyone discourages you from pulling permits for a specific job be sure to interpret that as a red flag and NOT a money-saving opportunity.  This is a common gimmick by unlicensed people who pretend to be legitimate contractors.   When choosing colors, stay generic/neutral/ mainstream, don’t “experiment” or let anyone else do so on your behalf.  Be sure the colors you choose will appeal to the masses.  Wall paint? White / Off White or Egg Shell, avoid any daring colors.    Hire a project manager with experience in renovations to keep an eye on the job, they should be checking on all of the vendors and even the GC if one is used.  This is especially beneficial if you are a long-distance investor.  Perhaps your property manager would be a good fit for this task.   Never pay in advance of work performed, ever.  Only pay as the job is completed.  You can set goals of progress and then possibly make small draws if absolutely necessary but still do your best to avoid these if at all possible.   Lastly, always begin with the roof.  If you are selling a home, the age and condition of the roof will be heavily scrutinized by the lender and the insurance company.  Know the age of your roof, if it has 5 years or less life in it, replace it.  There’s nothing worse than rehabbing a house and then have it all ruined by a leaky roof.  Well, maybe having a buyer be forced to back out of a contract over the roof would be worse, you decide.  

2 OCT 2020 · Bay Lake Properties  Tomahawk Properties  Latin American Development & Management    RETLAW (Retlaw backward is Walter)  Reedy Creek Ranch Lands was run by a guy named M.T. Lott (say the name quickly to get the joke)  In 1955 Walt Disney has learned a powerful lesson upon the opening of Disneyland in Anaheim, CA by not buying a large enough parcel of land to build his theme park.  By the time he realized his error, neighboring parcel owners demanded a small fortune per acre to sell him more land because they felt Walt had deep pockets.  In May of 1965 Disney started buying up land in the Orlando, Fl area to build what would later become Disney World.  Mr Disney was able to buy the majority of the land he needed for an average of $80.00 per acre.  He used Land Trusts to maintain the secrecy of the true buyer name.  Once word eventually got out, the price jumped up 1000% to $80,000 per acre.    Land Trusts are a great way to take title to a property while keeping the true owner’s information private.  Although not considered “Asset Protection”, land trusts make it more difficult to track down who owns the land and therefore is responsible if things go wrong.  By keeping your portfolio information private, slip and fall lawyers are less inclined to pursue legal action against you if there are no significant assets for them to attach.  Land Trusts can also be used to keep a buyer’s information private to as not to alert the seller of a buyer who is well known or has deep pockets.  If you want to learn more about using Land Trusts to acquire real estate Larry Harbolt’s next class is January 9-11, 2021.  You can grab your ticket at:  LarryHarbolt.com/LandTrust 

25 SEP 2020 · This 2020 and 2021 could very easily wipe out many Americans financially.  The good news is that you can choose to avoid getting wiped out. Our inner voice will warn us of bad things happening in the future if we allow it to.  For that to happen we need to be listening. Many investors feel pressure to get a deal done.  Many will overextend themselves financially, usually by overspending or under earning. The pressure to not disappoint a wholesaler, Realtor or Seller by saying no or asking more questions can prove to be overwhelming for many.  Don’t let people pleaser tendencies destroy you financially by buying a bad deal. Maybe you want to get accepted into the cool kids club at your local real estate club by doing a deal you know you should not do. Fear of missing out on low interest rates or even the opportunity to get financed for a deal can cause us to make irrational buying decisions. Easy to get hard money loans make it easy to wipe out your life savings by investing in sketchy deals where not enough due diligence has been performed. Maybe you feel lucky that a seller accepted your offer because you are “allowed” to do a deal. If any of this applies to you STOP! Wholesalers, Realtors and Sellers LIE about needed repairs, they LIE about current rents and future rent possibilities, They lie about ARV or simply have no idea how to compute the figure accurately, they conceal important details that might cause you to back out of a deal.  Its very difficult to catch them and even if you did, nobody really cares, nor do you have the time, money to waste trying to punish them.  This the simple truth. Your inner voice is likely speaking to you when things are not as they seem. It’s okay to question everything, that doesn’t make you paranoid or scared or even a newbie, that makes you intelligent and leads to lucrative deals. Distance yourself from anyone who makes you feel pressured to make an investment decision without having the time to do your homework. We are in unprecedented times, banks are pulling back funding.  That’s what we call a clue, soon it might be very difficult to borrow money from a bank for a purchase.  That’s a signal that market prices are likely to fall, when? Nobody knows for sure.  We are facing record unemployment, 2.25 million mortgages are currently past due, that’s the highest level since 2010.  Let’s not forget civil unrest and the most controversial election cycle in history.  Be smart, listen to your inner voice, do you homework and you will be able to prosper beyond your wildest dreams.