Tampa Real Estate Investors Alliance Blog

“You can design and create, and build the most wonderful place in the world. But it takes people to make the dream a reality.” ~ Walt Disney

When I first started, I felt like I had no business designing spaces. I’m good at the big picture but putting textures and colors together that will sell the house I was not so confident. I’ve been using Pinterest and Houzz to piece together ‘dream boards’ that you would put together using ripped out magazine pages and taping them together to compose some sort of theme or color scheme.

Pinterest is known as a predominantly female geared platform. People use it to plan events, like weddings, or recipes for special occasions or holidays. It is a great tool to use to plan your decorating scheme for an interior and the exterior. You can easily gather ideas for landscaping, curb appeal, how to style your front door and entry way, from kitchen materials to flooring and bathroom tile. What I like best is that other ‘pinners’ have done most of the work for you already. Most pins that you research are already part of a larger board, and if you visit that board you can see what else that user put together already. It has been easy to use, either hit pin, send or like on the image. Once you click an image it usually leads to the website that sells the item or a blog post about how to do the project. Sometimes it’s just a source image from google, so it is still a good starting point to show a contractor to get the gist of the idea.  Read More→

One of the things I have seen a lot lately is wholesale deals banking on appreciation.  And as a Buyer myself, I can tell you I love appreciation!  Appreciation can cover a multitude of sins.

The problem is they are still sins and as a wholesaler, it is best to be aware of them if you want to move your deals!  When running comps for your Buyer, the safest route is the tried and true MLS.  Not Zillow or Trulia or some of these other online sites that can give snippits of value to the market but the good ol’ MLS.

One key piece to help avoid the appreciation challenge is to simply ensure your comps are current as of today.  Not what you think it will be in three months or six months no matter how hot it is.  Only today.  Why?  It keeps your Buyers safe.  This is very important.  It also keeps your numbers strong for your offers and negotiation so you can make sure you get a deal that makes sense.  Nothing is worse than sitting on a deal you need to move quickly only to find it never had a chance because others did not see the value you saw.  Read More→

The Art of The Negotiation

Posted on December 8, 2016 by

Despite the obviously important role information gathering plays in the art of negotiations, very few people actually spend much time analyzing their seller’s situations or needs before jumping into the negotiating process. Even logical individuals who wouldn’t jump into a dangerous sport before learning more about it often jump into a deal where they could possibly lose thousands without first getting the information they needed in order to protect themselves from a disastrous result.

I always remind my students that they need to listen, ask appropriate questions, do their due diligence and determine what the seller’s real underlying needs are. Don’t be afraid to ask questions of your sellers in order to get the information you need to make the best deal possible. If you need clarification on some part of the negotiation, ask!

So why are investors so reluctant to ask questions? Part of it is fear and part of it is the unwillingness to admit they don’t know or don’t understand something. It used to cause me a great deal of discomfort to ask certain questions of sellers such as “how much is your mortgage balance?” That one question used to really make me choke. The main reason for this was uncertainty as to how the seller would react to my question. Even when a seller refuses to answer your question, you are still gathering important information about that seller, namely that they are not particularly motivated. Usually a truly motivated seller will answer whatever questions you have.  Read More→

Working With Realtors

Posted on December 8, 2016 by

In my business model I need very motivated sellers. They need to be able to have a desire to sell at a reduced price and give me favorable terms. Most Realtors have been trained to only accept a cash deal (mortgage included), as there is no reason to do anything beyond this traditional method, especially if it is complicated financing that they don’t understand. So it is important to figure out how to work with a Realtor.  Here are some tips that I have found to be effective when working with Realtors:

  • Work with a Realtor that is accessible and follows through. Some are so busy that it might take too long to be able to communicate with them effectively. 
  • Once you are able to talk to the Realtor you will need to get some information: Is the seller motivated? What does the listing say that causes you to believe the seller is motivated? What does the owner owe? Will they consider owner financing? Most Realtors will not ask these questions because it doesn’t change the transaction (I believe they do in my business).

The Realtor’s sole job is to act as a fiduciary. The Realtor’s responsibility is to make the most commission for themselves, which has a benefit of making the maximum for the seller. The Realtor has no risk if either party makes a profit or loss. You see the conflict immediately between a Realtor and the investor. The goal of a Realtor is to get as much earnest money out of you as they possibly can. (Just like a wholesaler). This causes you to follow the money… your money. I was told by a mentor who was willing to walk from $5,000, if you do your due diligence and find the deal will lose more than your earnest money, then walk away. This was a big lesson for me.  Read More→

Last month, we discussed QuickBooks’ report Preferences and The Report Center. We’ll look at report customization this month.

QuickBooks makes your bookkeeping faster, safer, and more accurate than what you could do using a manual system. Still, you may occasionally tire of your daily tasks. You want to know what all of these forms and records mean in terms of your overall financial health. You want to see reports.

The actual mechanics of creating reports in QuickBooks are fairly straightforward. You can go to the Report Center, make a selection, maybe change the date range, and voila! Your company’s related data appears in neat rows and columns.  Read More→

An investor who has owned four rental properties for the past three years called me for help.  He was at his wits’ end.  Because he hated dealing with tenants so much, he was seriously considering dumping all of his rentals!  By the way, this is not an uncommon feeling for new, inexperienced, and under educated landlords to have.

When we met to discuss his situation, he let me hear a recording of a conversation he had had with a tenant a few days prior…and I use the word “conversation” with loosely.

The tenant consistently paid his rent six to ten days late.  This sent the landlord into orbit.  Over the phone, the landlord screamed at the tenant, “You are a liar, an idiot and you’re totally worthless!  Pack your crap and get out of my house right dang now!”  And from there, the landlord’s words really turned foul.  I felt sorry for the tenant and angry with the landlord for losing control.  Read More→

Insuring Properties in Real Estate IRAs

Posted on December 8, 2016 by

Like all Americans, we were deeply saddened and distressed by the recent widespread flooding here in North Carolina and elsewhere in the Southeast. We know that beyond the property and investment losses, many people lost their homes, property and heirlooms that no insurance policy can replace. 

But torrential rains and flooding is an ever-present risk here in the southeast, America’s Hot Corner when it comes to hurricane and tropical storm activity and a place that certainly gets its share of ordinary thunderstorm and tornado activity as well, even apart from the tropical cyclone risk.

But according to industry sources, less than 10 percent of South Carolina homeowners carry flood insurance. That’s well below the national average of 14 percent, which is still distressingly low.  Read More→

Many years ago one of my mentors told me that you can have a perfect property, (if there is such a thing), and turn it into the most horrible property with bad financing. Getting good financing is the secret to creating wealth from real estate. Let me give you an example.

Today I am seeing all too many inexperienced investors talk about using OPM, (other people’s money). Using other people’s money can be a good strategy in certain circumstances, but not in every situation you find. For instance, using hard money loans will only work on short turn around properties, or fix and sell retail properties that can be sold in a short period of time. Over the years I’ve seen all too many inexperienced investors who bought houses in lower socio-economic areas or areas where people who can’t qualify for a loan are forced to live. These investors borrow hard money at 12% to 15% with interest only payments at 50% to 65% loan to value (50% to 65% of the after repaired value of the property) that have short payback periods from 6 months to one year. The investors fix these houses then try to rent or sell them.  Read More→

The chance to create new investments and take advantage of the real estate foreclosures in the market should be taken.  These are one of the most dependable long term investments you can make.  Buying properties after foreclosure using REIA comps is a method you can use to ensure you are given the best price for each and every property you review.

Buying real estate foreclosures is one of the main sources of income for many real estate investors. For starters, foreclosed properties have a high re-sale value that is guaranteed to earn you tremendous profits in the long run. Especially if you know you have made your profit when you buy.  Another benefit of buying foreclosed properties is they are sold at the lowest prices, and with affordable interest rates dominating the market, those factors combined, you’re buying property at discounted prices.

Those interested in investing in properties for the first time may find it difficult to make a decision on what is really right as an investment. You will want the best available in your most desired location, because purchasing properties is a big investment. That’s why you want to work with REIA Comps for the most up to date information.  Read More→

Ron Mustari Memorial Service

Posted on December 6, 2016 by

Ron MustariFor those investor friends of Ron Mustari, there will be a Memorial Service on Thursday, December 8th at  11:00AM at the The Italian Club Cemetery, located at 26th Street and 22nd Avenue in Tampa just north of Ybor City. Please call or text if you think you will attend or have any questions.

L’Unione Italiana Cemetery
N 26th St, Tampa, FL 33605

Thanks, 

Robert “Bob” Youngblood
(813) 391-2902

Thurs, December 8th at 6PM @ Doubletree Suites Tampa Bay
Tampa REIA – December 8th
at the Doubletree Suites Tampa Bay
Learn How & Where to Get All the Money You Need to Fund Your Deals Now!
with Private Money Expert Jay Conner

Tampa REIA Members Can Attend for NO CHARGE.
Guests Can RSVP Online Now for $15 or Pay $20 at the Door.

Tampa REIA Members Please RSVP on Meetup.com
Tampa REIA Members Please RSVP on Meetup.com

RSVP Now!

Jay ConnerJoin us on Thursday, December 8th at 6PM at the Tampa REIA Main Meeting at the Doubletree Suites Tampa Bay located at 3050 North Rocky Point Dr West in Tampa, FL where our special guest speaker will be real estate and private money expert Jay Conner who will teach you “Where to Get the Money Now” to fund all of your real estate deals!

Jay will teach you how he turned his real estate investing business into a seven figure money making machine in less than 2 years using a simple, step-by-step system that enabled him to raise $2.1M in less than 90 Days.

Jay’s specialty is acquiring private money for his renovation projects. And whether you know it or not, the difference between the rich and the just getting by in today’s real estate market.is “Private Money”. A large part of Jay’s business is based on people putting up the money to make a loan so he can buy all the ugly houses out there that need renovated. Jay always gets a big check when he buys a property and doesn’t even make monthly payments on his loans! It is possible… come find out how!

Is your Real Estate Business Suffering because of any of these problems?

  • Short on cash and can’t do deals?
  • Don’t know where or how to get the cash?
  • Feel sick because you lost out on a great deal and watched another investor with the money pocket your profits?
  • Lack the confidence to raise money?
  • Frustrated and feel stuck?

If you answered “YES!” to any of the above questions, and if you’re even remotely interested in transforming your real estate investing from a hobby to a thriving 6-Figure business that churns out thousands of dollars in passive income month after month, this may be the most important meeting you’ve attended all year! DO NOT MISS THIS EVENT! Come learn how to raise UNLIMITED FUNDING and never miss out on another deals!

Please come join us at Tampa REIA on Thursday, December 8th at 6PM at the Doubletree Suites Tampa Bay located at 3050 North Rocky Point Dr West in Tampa, FL to learn how to fund your deals without using your own cash or cred or stepping into a bank. We’ll have door prizes, networking, learning, haves and wants, and as always, a great time!

As always, Tampa REIA Members can attend the event at no charge and Non-Members can Register Online for $15 or pay $20.00 at the door. Be sure to bring your business cards and flyers and join us for an evening of real estate deals, vendors, networking, education and fun! See you there!

Tampa REIA Members Please RSVP on Meetup.com
Tampa REIA Members Please RSVP on Meetup.com

RSVP Now!

*Meeting Agenda
6:00 PM: Tampa REIA Meeting in Tampa
6:15 PM: Announcements, Introductions, Haves & Wants
7:30 PM: Main Presentation with Jay Conner on Raising Private Money
9:30 PM: Late Night Networking at Bahama Breeze

*Please Note: Meeting agenda is subject to change.

5 Days & 4 Nights in CancunWIN A 4 NIGHT STAY IN CANCUN: All participants who attend the Tampa REIA Meeting will entered into a drawing for a chance to win a *Complimentary 5 Day, 4 Night Stay in Cancun! *You must be present at the meeting to win. Giveaway does not include dining, transportation, transfers, taxes, upgrades, etc.

9:30PM: Late Night Networking at Bahama Breeze
Late Nite Networking at Bahama Breeze

Bahama BreezeAfter the conclusion of the Tampa REIA Main Meeting (around 9:30PM), we will be reconvening at Bahama Breeze located at 3045 N Rocky Point Dr E in Tampa for the “Meeting after the Meeting” with Scott Siegle and the rest of the Tampa REIA Crew. Come eat, drink, network and have fun with us as hang out late into the night on Tampa Bay!

See Tampa REIA Events Calendar for More Events!

The Profit November 2016 Edition

Posted on November 9, 2016 by
The Profit Newsletter for Tampa REIA November 2016
Download the November 2016 Edition of The Profit Newsletter Now!

The Profit - November 2016 - High Quality PDFThe November 2016 edition of The Profit Newsletter is now available for download as a High Quality PDF (print quality) or Low Res PDF for mobile devices. The Profit Newsletter is the official newsletter of the Tampa Real Estate Investors Alliance and is a digital, interactive newsletter for serious real estate investors delivered as an Adobe PDF file to read on your computer, tablet, or smart phone with a PDF reader. Many of the articles and ads in The Profit contain hyperlinks you can click to get more information online. The high res version of The Profit is “print ready” while the low res version will load faster on your mobile device. Also, be sure to Subscribe to The Profit so you don’t miss a single monthly issue.

Download Now!
High Quality PDF / Low Res PDF
See The Profit Archives for our past editions.

Probate Real Estate is the Last Frontier

Posted on November 9, 2016 by

Jim BanksFor the real estate investor, knowing how to capitalize on what others commonly overlook can be the key to success. And to that end, probate real estate has become a profitable investing niche for many successful investors.

Probate is the governing process for the distribution of a person’s assets after they pass away. Many investors stay away from probates because of their lack of education. This breeds fear—a fear of the unknown. However, a fear of the unknown is the same as going into a dark house. If you turn the light on, the fear goes away.

Years of television, movies and the media have established the belief that if one goes to law school, that individual knows all there is to know about the law. But that isn’t the case. If your neighbor is a brain surgeon and your child falls out of a tree and breaks his arm, would you take him to your neighbor or to the emergency room? Just like doctors have specialties so do lawyers. However, very few would specialize in probate. Instead, they specialize in personal injury, corporate law, tax law or something more traditional. Attorneys usually take one probate course in law school… estates and wills. As a result, the majority of the attorneys of record that are handling probate cases are doing so because they hand-led other matters for the deceased, such as, divorce, corporate matters, traffic tickets-etc. Probate is not their area of expertise.  Read More→

This month is renovation month at Atlanta REIA and I for one am super excited.  For the past 19 years I have managed to perform just about every type of real estate transaction there is.  Everything from notes, wholesale deals, lease options to subject to deals.  I’ve used every buying strategy known to man and every creative technique to sell my properties. But, no technique has made me more money than the good old fashioned “rehab” fix and flip.  People often ask me how they can make lots of money in real estate.  You would think that answer would be wholesaling because you don’t need a lot of money and it is quick and sometimes painless. Well the truth is, the fastest way to wealth in my opinion is to “Find ‘Em, Fix ‘Em and Flip ‘Em.”

When doing a rehab or renovation successfully it requires tools just like any job well done.  If you have the proper tools in any job, the job goes much easier, faster and most efficiently.  Rehabbing is no different.  There are six steps to successfully performing any renovation of any size or shape.

The first step is PLANNING.  Making sure you have the proper tools is essential to your success.  Things that you should have with you at all times will make your job easier.  These items include, Inspection forms, Camera, Flash Light, tape measure, graph paper, lock box and “”We Buy Houses” sign.  These tools allow you to initiate the first step in any rehab.  In my opinion you also want to invest in a design program so you can “Mock Up” what you want your rehab to look like.  If you have an iPad my recommendation is an app called Tap Glace.  It allows you to measure and create that vision on paper before you ever touch anything inside the house.  Read More→

Emotion – The Deal Killer

Posted on November 9, 2016 by

Emotion is a tricky thing.  We all have them.  We experience them every day whether positive, negative or even indifference.  I remember when I started investing being taught to never ever, EVER become emotionally attached to a deal.  It sounded easy enough and as head knowledge it is.

But then a funny thing happens…people and or money become involved!

Oh yes, emotion can make the smartest of investors make the most let’s just say ‘bone headed of decisions’.  I will have to admit, I have fallen prey to the power of emotion on a couple of emotions.  Never underestimate this factor when doing deals!

Let’s examine both of these avenues in depth so you can see how powerfully they can work against you, sometimes without even realizing it.

In terms of people…  Read More→

Where Do I Get an MLO?

Posted on November 9, 2016 by

I have been asked the same question a few times lately so I decided to answer it in this article. “Where can I get a master lease option (MLO) contract from?” The answer is easy- Google. You can search for MLO docs online. There were dozens of versions from just as many sites. I highly suggest that you have an attorney review any docs you get off line before using them. When I am asked this question I usually respond by telling the person that they aren’t really asking the right question. The real question is not “where do I find a MLO contract?” but “How do I use it?” You can print up the best master lease option document you can find but if you can’t get a seller to sign it…who cares?

Getting a seller on board with any kind of creative financing can be a challenge. You will find it a lot more difficult without the right presentation. Pitching your idea to the seller or realtor is the key to getting the deal done. Here are a few tips to make your next MLO offer a hit!  Read More→

The State of Florida and many other states were affected by Hurricane Matthew, leaving many Sellers with problem houses.  I am located in Oviedo, Florida, and being a transplant from Michigan, I have never been in a Florida Hurricane.  All of my houses were blessed with minor damage such as big trees down in the back yard, shingles flying off the roof, branches and trash everywhere. I am very grateful to God for these blessings.  Other Sellers were not so fortunate and my heart goes out to them.  They now have to deal with making a huge decision of fixing the house or selling the house.  Some Sellers may not even have insurance on their house.  However, if they do have insurance, let me explain the process.  

An insurance claim can be long and dragged out with many Sellers becoming very frustrated with the insurance company’s findings.  These are Sellers that may need your help with you buying their house.  First, let me explain the process on Insurance Claims.  Sellers will notify the insurance company of damage to the property along with providing them a list of items damaged.  If the Insurance Company and the Sellers can come to an agreement, then a check is sent to them in their name and the names of all mortgage companies that may have a lien on the property.  Pursuant to the terms of the mortgage that was signed by the Sellers, all insurance proceeds are to be used to re-build the property to make sure that the mortgage companies have an asset that is worth the amount of their loan.   When there are large claims of loss to the insurance company, they normally dispute the amount of the claim and the Seller will have to hire an independent insurance adjuster to assist them in disputing the claim.  Read More→

Fail Forward – FAST!

Posted on November 9, 2016 by

 Hey, guess what?  I Want You to FAIL!

“Say what now? Fail? But failure is a bad thing, right? That’s what they taught me in school…AND in my job! And all my friends make fun of each other when we fail.”

Yes. Exactly. So what?

I’d like you to think back to when you were a kid. Everything was new to you in the world. You really had to learn things for yourself… How to eat, drink, think, walk, talk, and interact with stuff, right?  If you can’t remember any of that, just watch kids.

Have you ever watched a kid learn how to walk? They fall down a lot, don’t they?  But here’s the truly interesting thing: They don’t stay down. They don’t listen to their well-meaning friends who laugh at them, and they don’t care what grade they get. 

No, they stand up, wobble around a bit, and fall down. Then they stand up again, wobble some more, then put one foot out and take a step!  Read More→

One of the most important aspects to a marketing campaign that is going to work is to create a solid mail piece for your business. These are key points for creating a solid direct mail piece that folks will respond to no matter what business you are in.

  1. The first thing you’ll want to do is to “touch” your prospective customer or seller with “the dream”, or “the solution” to their problem. You’ll want to touch the basic emotions and the needs of your client or seller within the body of your letter, whether that is fear, relief, greed, pride or vanity.

  2. Keep it simple. The grammar doesn’t necessarily have to be perfect. You want to reach this person at their comfort level. Keep your letter relaxed, personal and conversational.

  3. Use simple language; don’t fill your letter with big words or technical words or “industry jargon” that your seller or your customer might not understand.  Read More→

Self-Learning to Network

Posted on November 9, 2016 by

The last month or so I have been looking more and more into investing in apartments. However, I did not attend local MeetUps or other groups dedicated to apartment investing until this week. I self-educated as much as possible through books, podcasts, YouTube video and articles. I did this to prepare for the meetings and it paid off.

The reason I learned as much as possible before attending these apartment investing meetings was so I can understand what was being discussed. I have led single family investment groups in the past and caught myself speaking over many of the attendees. It was not done intentionally but because I had been doing it for so long I was doing it unconsciously. I have also seen other instructors and speakers do the same thing.  Read More→