Tampa Real Estate Investors Alliance Blog

The April 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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Do you have doubts about being a real estate investor?  Are you scared to make offers because you are afraid of making a mistake that could cost you tens of thousands of dollars?  Are you having a hard time finding the time to grow your real estate business?   If you answered yes to any of these questions then take the time to read this news article carefully.

My name is Robyn Thompson and I have been investing in properties for over 15 years.  I have bought, renovated and sold 339 houses. I started my real estate business with $500 and I had to learn how to run a business like a business not a hobby.   I learned a long time ago that successful real estate investors do things differently than the amateurs.  I am going to give seven habits that all 7 figure real estate investors possess:

1) All serious business owners who make over 7 figures focus on marketing WEEKLY.  We take marketing as serious as a heart attack because wealthy business owner know that marketing = revenue.  No marketing means No profits.   All you need to do to raise your income is make an appointment with yourself and put it on your calendar for one hour a week to focus on marketing to attract desperate sellers. 

One measly hour a week without interruptions is all it takes to up your income by massive amounts.   During the hour, you call realtors, order “We Buy Houses for Cash” signs for your car, execute direct mail campaign to out of state owners, landlords in the middle of evictions or attorneys who have desperate clients who need to sell and put an ad in the newspaper in the real estate wanted section.   Read More→

Last month we discussed presenting offers. This month, we’ll talk about the next step which is follow up; the fourth in our five steps to success. There are actually three times when you’re going to need to follow up so we’ll discuss each one.

The first is when you’re dealing with a prospect after you prescreen them, which means, that it’s a yes on the property information sheet yet we’re not ready to complete a deal today. This means this prospect should be followed up on because a lot of these will be converted to deals at a later date if you do the follow up, which I will confess, most won’t.

The second type of follow up you’re going to need is on the hot prospects where they say yes now and now you’ve got a few things you’ve got to get done to get it under contract.

The third type of follow up is the follow up after you get them under contract. Follow up is such a neglected portion of the steps that are required to make money in any business. If you will master this, you’ll make a lot of money where a lot of folks won’t and you’ll find the deals that you do get will go better because you took care of the details along the way. A small detail left out can create a large problem, and has many times prior. Honestly, most people have no system whatsoever to do the follow up; they rely too much on memory and therefore issues come up that really could have easily been avoided. Read More→

This month I decided to share with you my thoughts about some types of property you may want to avoid if you plan to maximize your profits from the deals you do. I have personally bought several of the houses I now recommend you think about not buying. I believe buying any of the following properties will definitely give you a financial seminar you really don’t want to take for numerous reasons.

I have taken a few of those financial seminars and I can tell you that you don’t want nor need to go there and make the same mistakes I have made. For those just getting started in the business these examples are a must for you to know so you don’t buy houses that will be extremely hard to sell or rent.

This is a two part article for April and May.

Houses in Area’s with Many “FOR RENT” signs.

Any house located in an area with many For Rent signs leaves little hope of selling to a family who wants to live in that area and can qualify for a loan. Too many renters in any neighborhood will many times run out the families with small children who can qualify for a loan that want to buy. Read More→

I know when folks are getting started in real estate investing it’s easy to treat it like it’s a hobby.  And it might be for some – especially if you have another career and investing is a side business.  But with Wholesaling, you need to treat it like a job and a business, because it is. 

Buying rental real estate is a great way to earn passive income and we should all strive to earn as much passive income as possible in our lives.  But there is nothing passive about Wholesaling.  It’s work and that work needs to be taken seriously.  That’s why you need to be a “Pro” when it comes to your Wholesaling business, or else it probably won’t work out for you.

A “Pro” or Professional does the work and takes it seriously.  And more than likely a “Pro” is consumed by striving to be successful.  To use a football analogy, think about Tom Brady and Peyton Manning, those guys are “Pros”.  They are consumed by winning and being the best.  They wake up and eat, drink, and sleep football.  They game plan meticulously with their coaches and teammates.  They watch game film.  They practice their plays, over and over and over.  They are focused on learning and getting better.  They are role models and leaders for their teammates because they are usually the hardest working guys on the team.  They put in the time it takes to be a “Pro”.  Would you agree?  Hopefully you know who Tom Brady and Peyton Manning are. Read More→

I believe that one of the greatest challenges to any real estate investor is raising the money or finding creative ways to fund deals. Going to the bank for money can be a long and arduous task, and while you are waiting weeks for approval, another investor with ready funds just bought your deal. Plus, the bank is going to insist that you fund the deal in your own name which can be damaging to your credit. In fact, taking properties in your own name can be outright dangerous. In addition, in our current market, it’s nearly impossible to get funding from banks to purchase great deals. And if you already have more than three loans in your name, you won’t get the money at all. So, where do you get the money or what creative ways can you use to fund your deals?

I have several great ways for you to find money to fund deals and end up with all the money you will ever need. The fastest and easiest way to locate funds is to find hard money lenders. This is the easiest type of lender to find, especially if you are just starting out in the real estate investing business. So what is a hard money lender and where do we find them?

A hard money lender is a person who will not require a credit check or long drawn out approvals like a bank would. What they will require is that you pay them an interest rate of usually 12-18%. They may also charge points on the front of the deal, usually between 3 and 5 points. These fees are sometimes negotiable and will vary depending on what part of the country you live in. They will also probably charge a pre-payment penalty if you pay the loan off early. Read More→

Time is the most important part of our life that we can never get back. When I started as an Investor back in 1998, I worked a full time job as a legal secretary, was married with 2 children ages 2 and 6, a step-son age 20, and worked part time in my real estate career. Time Management was very important to me as I needed to be able to earn 1 year’s salary before I was able to quit my job and work a full time real estate career. Just like most new investors, we attended numerous boot camps to sharpen our skills and take that leap of faith into the real estate arena. I chose this article about time management because I do a One Day Safari with my individual students by coming to their own home to evaluate how they are spending or wasting their time and how can I help them improve their production in addition to reviewing multiple other marketing and business systems to move them forward.

As I write this article, I need you to “act as if” I am sitting in your home, evaluating your production and asking you, ARE YOU WASTING TIME? The most important part of your business is to make sure that you have a designated workplace separate from all of the noise and interruptions of your life. Well? I tried having my office upstairs so I could keep track of my children when I quit full time…that didn’t work. I had a private phone line and a business line set up at my home. When the business line would ring, I used to grab the phone no matter what time of the day it was. I was hungry for a deal! After trying this for a couple of months, I decided it didn’t work because as soon as I would get on the telephone the kids would always want something and I literally would have to run into the basement or my bedroom and lock the door. However, the kids still followed, knocking on the door and wanting something! Even though I was working full time as an investor, I had to put my kids in day care and/or work around their schedule (i.e. naps, bedtime). I decided it was best that I would set up my office in the basement. I got tired of running to the office phone for deals, so I decided to work normal business hours 9 to 5 p.m. However, if you hunger for deals, you may want to answer the phone every time it rings, day or night. Read More→

“Never order food in excess of your body weight.” ~ Erma Bombeck

Gosh, I’m hungry. Hey, I’m all for working hard, but there’s a limit. Ever hear of an acronym called “H.A.L.T.”? Don’t get too Hungry, Angry, Lonely, or Tired. Well, I’m hungry! So this month, I’m taking a little dinner break.

Picture this: You’re knee-deep in grout and dust from working on a bathroom rehab. You’ve been at it all day, and now you’re rushing to pick up your Aunt Mavis at the airport. The only thing she’s had to eat in eight hours is one of those tiny bags of Real Georgia Peanuts they give you on the plane. And you sure don’t have the time or energy to cook. What to do?

Well, in the old days, you’d pick up Aunt Mavis, drive home through rush-hour traffic, thumb through a thick printed phone book for a pizza place that delivers, call in your order, and a pizza guy would magically appear at your door – in about 45 minutes. By now, it would be several hours since poor Aunt Mavis enjoyed her peanut “lunch,” and she might be too weak to eat.

Thank goodness for 21^st century technology! While Aunt Mavis is waiting for her luggage, you whip out your iPhone, log into your favorite restaurant app, and in just a few clicks, you’ve ordered dinner. You pick it up on the way home, serve it immediately, and spend the rest of the evening catching up on Uncle Eddie’s medical conditions. Read More→

Here is a common problem in our industry: we find a property and we have to decide, is it deal or not a deal? Many people get hung up on this question, but you can’t let it paralyze you. You can’t worry so much that you lose out. (By the way, remind me to tell you the biker story.)

Here is the most important thing… you have to have solid information: comparables, equity, repairs, and rental rates (above $150,000 not necessary). Then you have to run the numbers. These two simple things will lead you to success in deciding if you have a deal or not.

Quick and Practical Advice on Deal Determination

• You can buy properties which are upside down IF the mortgage balance is more than what the property is worth.
• You can buy properties that have a tremendous amount of equity.
• You can buy properties with owner financing.

Now, ask yourself: What is my business model? Read More→