Archive for March, 2014

The Profit March 2014 Edition

Posted on March 10, 2014 by
The Profit Newsletter for Tampa REIA March 2014
Download the March 2014 Edition of The Profit Newsletter Now!

The Profit - March 2014 - High Quality PDFThe March 2014 edition of The Profit Newsletter is now available for download. You can download The Profit Newsletter as a High Quality PDF (Recommended) or Low Res PDF for slower devices. The Profit Newsletter is the official newsletter of the Tampa Real Estate Investors Alliance and is a digital, interactive newsletter for new and seasoned real estate investors delivered as an Adobe PDF file to read on your PC, Mac, Smart Phone, iPad or other mobile ready devices with a PDF reader. Many of the articles and ads in The Profit contain hyperlinks you can click or tap to visit websites, watch videos, listen to audios, download content, send emails, comment on articles, share socially and much more! The high res version of The Profit is “print ready” for those who want to print the newsletter on their home or business printer. Also, be sure to Subscribe to The Profit so you don’t miss a single monthly issue.

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Since buying our first property back in 1978, we have seen many changes in the Real Estate market. As you know, Real Estate is very cyclical. Markets come and go and believe it or not, come again.

We used Options, Lease/Options, Rehabs, Private Money back then, in the 80’s, 90’s, and since then. Sometimes these techniques can be used in the same cycles, and sometimes only a few will work.

When the market changed back in 2006 and it turned down, a new cycle began…again.

In a matter of about 10 days we saw about 13 exit strategies disappear right in front of our eyes. Market values plunged. Sellers still wanted pre-2006 pricing. Our six figure per month income just about dried up. What do you do?

Well, you adjust to the market and find what works now or your business dies!

So we started doing Short Sales. We had been doing short sales for years, way before most people even knew the term short sale.

We did hundreds of short sales. The only problem was that we could not help all home owners who needed a short sale. Plus as you probably know, short sales are anything but short.

We are not Investors who are in it just for the money. We actually want to help people, we want everyone to win…Sellers and Buyers as well as us. It’s got to be WIN-WIN-WIN! Read More→

For centuries the courts have been rigged in favor of the banks. The banks have the kind of time and money that homeowners could never dream of, and they are more than willing to use both to get their way. You’d be wrong, however, to think that’s the only way the system was crooked.

If a homeowner whose loan was securitized tried to force the bank to show the chain of title, the court would tell the homeowner that they didn’t have standing to make that demand. The homeowner then is left with no way of proving that the foreclosing bank/entity does not have the authority to foreclose. Not anymore!

In the case of Steinberger v OneWest Bank, et al, the court ruled in a special action that the homeowner does have the standing to demand that the foreclosing bank/entity provide a securitization timeline in order to establish their claim of authority to foreclose. This timeline of assignments and transfers would prove whether or not assignments were made after a note had already been transferred to a securitized trust and could be declared invalid.

This is a huge win for homeowners because we now have the right to demand that banks prove their authority to foreclose before the court. Read More→

In the first two parts of this article, we covered a few nice things like wholesaling, when & why you might not do a deal, and then how to make money even when you don’t buy a house.

The big secret I revealed in the last article was: You SELL the leads of the houses you don’t buy.

Now Your Question Is: “Ok. It makes sense! But HOW do I sell these leads?” Good question!

Again, let’s keep this simple. I suppose you could go and build a squeeze page, make a sales funnel, put up ads on Facebook or Adwords, etc. But don’t. Please. What a waste of time – especially at this point. Let’s keep it simple, ok?

Instead, why not just make a few phone calls to some of these local people? Ring a few Realtors. Call a couple of contractors. Get the Interest of some Investors. Dude – Dial for some Dollars!

Go on Google & do a search for “YOUR CITY Realtor” or Contractor. Or do a search for “We Buy Houses CITY”. Ex: “We buy houses Seattle” Read More→

7 Mistakes Investors Make

Posted on March 10, 2014 by

There is money to be made in real estate, but you need to think about real estate investing as the business it is. Allow me to share some common mistakes that beginning and even seasoned investors should avoid.

For those of you connected to REIAComps, the control and feeling of confidence you have over your deals is priceless. Using REIAComps to investigate the value of houses as they come to market, against the recent sold comparables, will provide you a solid position to “make your profit when you buy”.

  1. Getting emotionally involved. This is the biggest and most common mistake beginning investors make. Emotions and business do not mix well.
  2. Paying too much. To make money investing, you have to find a good deal. Look for properties that need a little fixing up. Your goal is to find a distressed property that you can purchase at 60- 70 percent of other sold comparables. REIAComps makes that part of your investing business much easier.
  3. Ignoring schools. Good schools attract good renters. Conversely, only the most desperate renters are willing to subject their children to failing schools. Read More→

Investors get into the real estate business to become ‘Millionaires,’ however, many listen to courses that contain outdated information where the systems are no longer working. They follow the wrong advice which seriously stalls a successful kick start. This industry is changing monthly; be sure your trainings are coming from a Mentor who is out doing deals on a consistent basis. I stand firm on my philosophy of “Don’t quit your job until you have at least one year salary in the bank.” Why, you ask? Because it puts unnecessary pressure on many marriages, families and individuals when they quit their job and the deals are not consistently coming in yet. I not only teach Short Sales, I also teach how to buy, hold, flip, subject to’s, lease option techniques, etc., which allow you, the Investors, to truly understand all of your available exit strategies.

In order for anyone to become a Millionaire with consistent and dependable cash flow, they must hold properties. In my Real Estate Junkie Course and my Mentor Program, I always recommend that you flip 2 houses and then hold 1 house. Below is an example of a short sale deal where the Investor ended up holding the property. I negotiated the short sale with my student and also partnered with her. My exit strategy was for her to hold the property, lease it out and my student will never have to lift a finger or do any maintenance to the house for a 15 year term. I explain this exit strategy from A-Z in my Mentor Program. One important criterion for holding a house is that it has 3 bedrooms, a garage, a basement (if applicable) and a swimming pool is optional. Read More→

There’s no doubt that the number of properties being advertised for foreclosure has been plummeting for the past year and a half. The question is, why?

In 2009, when foreclosure numbers began to skyrocket, the only way a bank could deal with borrowers who were behind on their mortgages was to foreclose. The fact that banks – actually it was loan servicers like the infamous MERS – didn’t have possession of the borrower’s note, nor the legal right to foreclose on the property, is a topic for judges and attorneys.

At the same time, you had thousands of borrowers who, because they couldn’t/wouldn’t make their mortgage payments, simply “gave the house back” and walked away. (It didn’t matter to the borrowers that the bank didn’t give them a house; it gave them money…and the bank – rightfully so – wanted their money back, not a house.) A bank’s only tool to deal with this situation was to foreclose on the property, and then sell it in hopes of recouping some of their loss.

Fast-forward five years. These days, lenders have many more tools to use to help homeowners avoid foreclosure. Two examples are: 1) The Cash-for-keys program, and 2) A wide variety of government-backed loan modification programs, like HARP. Read More→

The problem…

You and/or your client have found real estate to purchase. The inspections go beautifully and then a giant road block shows up. What’s the road block? Your client wants to purchase it with their Self-Directed IRA and their IRA can’t qualify for a non-recourse loan because it doesn’t have the cash reserves for the 35% down payment the non-recourse lender is requiring.

The solution…

Self-Directed IRA investors have a technique they call “Subject To” that can solve this funding problem. The “Subject To” loan qualifies as a non-recourse loan and can be used to purchase real estate within a Self-Directed IRA. It should be noted that the “Subject To” method can be used for deals whether the property is being purchased by an individual or by their IRA.

“Subject To” defined

Subject To means “Subject To the existing mortgage on the property.” Put simply, the owner of the property transfers the deed to the property into the buyer’s name (or the name of the buyer’s Self-Directed IRA) and the buyer (or their Self-Directed IRA) is responsible for making the payments on the seller’s existing mortgage. Read More→

Begin With The End In Mind

Posted on March 10, 2014 by

As a beginning real estate investor, what is it that we are getting into real estate investing for? Have you figured out what that is yet? Is it because you just love real estate? You love it so much that you would do it for free right? Probably not, but it is a means to an end and for many people including myself. We see it as a quicker, more effective, and more realistic means to an end than other options (ex: our traditional 9 to 5). But when you say means to and “end”, what is that “end”? Is that a clearly defined destination for you?

Is it retirement? If so, what does retirement look like for you?

Is it financial freedom? If so, what does financial freedom look like for you?

Is it a net worth of a certain amount of money?

Is it a passive income of a certain amount of money each month?

Is it a house on the water, a big boat, lots of nice cars, lots of vacations?

Is it simply Time Freedom – being able to do whatever you want with your time, because your bills are paid, and everything else is taken care of?

Is it a combination of most of the things I’ve listed above? Read More→

I want you to be wealthy. I want you to make $5000 in the next 30 days. I know I can show you how. So every month, I explain how to navigate the very real possibilities in the real estate market. I encourage you to get out and beat the bushes for motivated sellers because I know they are out there and they are ready, willing, and able to sell to you.

This month I want to explain how you can avoid real estate ditches, potholes, and blunders. Believe me, I have found them through trial and error, and my experience can help you to avoid them.

The most common mistakes are:

  1. Not following your business model.
  2. Buying with someone else’s numbers.
  3. Buying from a control freak realtor.

3 Ways to Avoid These Mistakes

I. Follow Your Business Model

Your business model is the most important thing to stick to when buying or wholesaling a property. It should include

  • How much money you want to make
  • The area of town you’re interested in
  • The type of buyer you need (owner occupant versus investor) Read More→

Last month I mentioned I had discovered that every property I drove past was one of four different types of houses every investor needs to be able to quickly recognize if they want to increase their bottom line every year. This month I will explain two types of houses that can really increase your income every year.

I struggled for years to find properties that would allow me to make enough money to feed my family and pay my bills. I had no idea what I was doing or what I was looking for. All I knew was I was trying to buy any house I could find just to make money. I struggled to figure out what I should look for so I started buying houses that I could fix and sell retail. This was a good idea but I could only do a few of these houses each year because I did my own rehabs at that time. It was taking long periods of time to fix and get every property sold and I kept running out of money. It was always a struggle to pay the bills each month. I wasn’t getting checks from my closings very often. All I could do was try to buy houses I thought would make me the most money. Read More→

Presenting Offers – Part 2

Posted on March 10, 2014 by

Okay, now we are out at the house. Next step is to ask the seller if you can take a quick look around, and do just that. I don’t spend more than three minutes walking through the house, taking a look at it. Please do not make any com­ments if you see anything wrong with the house. You’re not there to downgrade the house. You’re there to either buy it or lease option it, and you don’t do that by upset­ting the seller. I’m sure that most sellers are clearly aware that their walls need painted or whatever you see, they can see as well.

Once you’ve looked around, the next step is to ask them if they have any questions. You’d be surprised what happens when you let them do the talking and you not doing the seminaring. Simply ask them if they have any questions. If they do, answer them shortly, to the point, but simply enough so that anyone can understand them.

If they don’t, then the worst thing you can do is start rambling off at the mouth and create questions by trying to deliver a real estate seminar. If they don’t have the questions, don’t answer the ques­tions. If they have the questions, answer the questions. Read More→

Work Smart – Play Hard

Posted on March 10, 2014 by

I got into the real estate investing business to have more free time for myself and my family and to have the financial freedom to do whatever I wanted, whenever I wanted. I wanted my life to be more worry free. I have spent a great deal of time accomplishing that goal and I want to share some of my insights with you as a real estate entrepreneur.

When you decide to become a Real Estate Investor, make sure you structure your business in such a way that it doesn’t become overwhelming, even more so than a full time job could be. It’s very easy to fall into that trap, especially if you work from home. You can also fall into the trap of trying to do everything yourself, and long-term, this just won’t work. Believe me when I tell you that most tasks in your business need to be delegated to others starting with your marketing.

In my particular case I like to work from home and most of the functions of our business are handled off sight and by Independent Contractors. One of the ways I solved the problem of getting overwhelmed with work was to determine what hours per day would be dedicated to my real estate investing business. At the end of the day the door to the office gets closed and the phones go to an answering service. Your family will appreciate you for this as well. Read More→

“I accidentally forgot to graduate from college.” ~ Anne Lamott

Last week my Aunt Blanche came to dinner and told us all about a class she was taking: Financial Markets, at Yale. Really? THE Yale? Blanche is pretty imaginative, so I thought she was making it up. Sure enough, though, she proved it: She’s got a certificate in Financial Markets from Yale University. I have to admit I was impressed. It had to have taken work and dedication, and, I imagined, lots of money, too.

That got me thinking about how important it is to invest in ourselves, particularly in our own education. So many of us think we don’t have the time or money to spend on ourselves. We feel overwhelmed just facing the details and expenses of daily life. In my experience, though, learning something new gives me new energy and motivation to spend on all the mundane stuff.

Maybe you’d like to invest in yourself, but someone else has told you it’s just silly. That sounds like a naysayer to me, so let’s talk about naysayers for a minute. You know who they are: the folks who tell you it’s dumb to spend 15 weeks on a college course. The ones who say you’re too old, you’re too busy, you’re not smart enough. There’s a naysayer in every family. And too often, the worst naysayer of all is YOU. Read More→

Are you sitting on a ton of cash and you are not sure what to do with it? Do you need to find a real estate investment to put all that cash into? Are you struggling to find a deal that will give you a good ROI on all that cash you have laying around? Or does this describe you…?

Do you need to find some cash to do your real estate deals? Are you trying to figure out how to get your deals funded? Are you looking for partners to help with the cash to get started or perhaps you are looking for a “no money down” deal to get you going?

If the second description is you then you are not a real estate investor…you are a real estate entrepreneur! You are a real estate business owner, not an investor and there is a BIG difference. An investor is someone that fits the first description. An investor already has a lot of cash and needs to put it into a deal to get a return on all that money they have laying around.

Most people don’t realize that they are real estate entrepreneurs and are not actually real estate investors at all. This is one major mistake that most new real estate entrepreneurs / investors make and it can definitely lead to early failure in the real estate business. Read More→

REACT Workshop – March 15, 2014

Posted on March 9, 2014 by
Sat, Mar 15th at 8:30 AM @ Doubletree Suites Tampa Bay

Tampa REIA Presents:
The REACT Workshop
A Full Day Workshop with Jon & Stephanie Iannotti
On March 15th from 8:30AM – 5PM
at the Doubletree Suites Tampa Bay

Jon & Stephanie IannottiIs REACT Worth Your Time and Effort? OK, so if you have no competition, unlimited leads, and qualified, cash, and credit challenged buyers with money down, how can you lose?

If you made just $5,000 per deal and did one deal per month, would that change your life?

What if you did one deal per week?

         4 Deals x $5,000 = $20,000!

What if you made an average of $10,000/Deal?

         4 Deals x $10,000 = $40,000!

I think you can see where we are going with this. We know of one person we coached that is doing 3-4 Deals per week with an average of $12,500 per Deal!

Back in 2007 when the Real Estate market was crashing is when this and another concept called “ACTS” was created by Steph and I. We had to find something that worked. So these techniques were born out of necessity.

None of the techniques we had been taught and used for years were working. They all dried up overnight. So we went back to basics… options, lease/options with a new twist.

Register Now!

The beauty of REACT is that it will work in a down market, an up market, and a sideways market. REACT works with no money, no credit. Motivated Sellers are an option, not a necessity… Think about that one! So, if you want an unlimited supply of leads, where every one of them WANTS to sell, you do not want to miss this Workshop.

REACT is the latest and greatest technique to hit Real Estate Investing in decades. Now we will tell you this, you have to be taught and you have to do it correctly. This is why you have to come to the workshop and get this training.

Once you learn REACT, you can take the housing market by storm. Together we can correct the down turn that the government can’t.

It’s time to REACT!!!!

See you at the Event!

Jon & Stephanie Iannotti
“The Iannotti’s”, The Cruise Control Couple

Thurs, Mar 13th at 6:00 PM @ Doubletree Suites Tampa Bay
Tampa REIA – March 13th
at the Doubletree Suites Tampa Bay
Come hear Jon & Stephanie Iannotti as they explain…
A Bold New Concept Called “REACT” That Will Totally Eliminate Your Competition!

Tampa REIA Members Can Attend at No Charge & Guests for $10.
RSVP Online Now to Attend the Meeting.

Jon & Stephanie IannottiTampa REIA is excited to announce that Jon & Stephanie Iannotti will be our special guest trainers this month on Thursday, March 13th at 6PM at the Doubletree Suites Tampa Bay located at 3050 North Rocky Point Dr West in Tampa, FL. The Iannotti’s, who are the creators of “ACT” (Assignment of Contract and Terms), are turning real estate investor training upside down with a bold new strategy they call “REACT”.

  • What is REACT?
  • How to make money with no Credit, Money or Contractors.
  • How to do as many deals per month as you want.
  • How to make minimum $5,000 per deal.
  • Do you need a License to do this?
  • How to get the benefits of ownership without owning.
  • How to put it all on ‘Cruise Control’.
Watch Video
Watch This Video From Jon About REACT


Click to view Cruise VideoWIN A CRUISE: All participants who attend the Tampa REIA Meeting will entered into a drawing for a chance to win a *Complimentary 2 Day Cruise to the Bahamas with Caribbean Cruise Line! *You must be present at the meeting to win. The 2 day Cruise does not include port fees, transportation and taxes.

*Meeting Agenda
6:00 pm: Meet, Greet & Networking
6:30 pm: Announcements, Introductions, Haves & Wants
7:30 pm: Main Presentation with Jon & Stephanie Iannotti
9:30 pm: Late Night Networking at Whiskey Joe’s Bar & Grill

*Please Note: Meeting agenda is subject to change.

Late Night Networking at Whiskey Joe’s Bar & Grill

Whiskey Joe's Bar & Grill Tampa FloridaAfter the conclusion of the Tampa REIA Main Meeting (around 9:30PM), we will be reconvening at Whiskey Joe’s Bar & Grill located at 7720 West Courtney Campbell Causeway in Tampa for the “Meeting after the Meeting”. 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!