Tampa Real Estate Investors Alliance Blog
7 Mistakes Investors Make
Posted on March 10, 2014 byThere 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”.
- Getting emotionally involved. This is the biggest and most common mistake beginning investors make. Emotions and business do not mix well.
- 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.
- Ignoring schools. Good schools attract good renters. Conversely, only the most desperate renters are willing to subject their children to failing schools. Read More→
How Can You Create Long Term Wealth With Short Sales?
Posted on March 10, 2014 byInvestors get into the real estate business to become ‘Millionaires,’ however, many listen to courses that contain outdated information where the systems are no longer working.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→
Why Are the Number of Foreclosures Plummeting?
Posted on March 10, 2014 byThere’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→
“Subject To” – A Little Known Funding Method that Self-Directed IRA Investors Are Using
Posted on March 10, 2014 byThe 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 byAs 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→
Warning: Avoid Wholesale Blunders and Mistakes!
Posted on March 10, 2014 byI 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:
- Not following your business model.
- Buying with someone else’s numbers.
- 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→
4 Types of Houses You Need to Look for to Exponentially Increase Your Profits
Posted on March 10, 2014 byLast 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 byOkay, 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 byI 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→
New Tricks for Old Dogs – Investing in Education
Posted on March 10, 2014 by“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→
Real Estate Investor or Business Owner? Do You Know The Difference?
Posted on March 10, 2014 byAre 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 byTampa 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
Is 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.
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
Learn How to REACT with the Iannotti’s at Tampa REIA on March 13, 2014
Posted on March 3, 2014 byat the Doubletree Suites Tampa Bay
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.
Tampa 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’.
WIN 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.
*Please Note: Meeting agenda is subject to change.
After 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!
Jon & Stephanie Iannotti
Posted on February 28, 2014 byJon & Stephanie Iannotti are Amazon #1 Best Selling Authors of “The New Masters of Real Estate, Getting Deals Done in the New Economy.” 12 of the 18 contributing authors were mentored or coached by them personally. They are also National Speakers and National & International Mentors to well over 250 students over the past few years.
With over 30 years combined experience in Real Estate Investing/Teaching, and Mentoring and over 1500 creative deals under their belts, they are considered one of the best in the industry. They have also come up with some amazing ways to structure deals that are cutting edge and they have done many deals with their student partners using these state of the art techniques which are now being taught across the country and internationally.
They have trained and worked with some of the biggest names in Real Estate Investing. To name a few, Ron LeGrand, Robin Thompson, Lee Phillips, Al Aiello, Ted Thomas, and many others. Read More→
The Profit February 2014 Edition
Posted on February 10, 2014 byThe February 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.
Are You Going To Make It? Be Honest With Yourself
Posted on February 10, 2014 byYou want success, right? That’s essentially the purpose of any kind of training. However, It doesn’t matter how much “how to” you absorb, it will not cause the result you want – which is the achievement of a specific goal or milestone. How much action are you putting behind what you learn?
Let me say something to all of you out there trying to get traction in real estate investing and haven’t been able to do it yet. First I want to state the obvious, Don’t Give Up. But now I have to give you some cold, hard facts.
The only difference between the few successful people vs most other people out there is the amount of TV you watch.
I know that sounds funny, but it’s true.
9 out of 10 people WASTE the most valuable asset they have, which is time. You can’t ever get it back, and the minutes you’re taking to read this is an investment in your future. Time spent watching worthless TV is robbing you of your life.
Part of this mental preparation is understanding the disciplined principal that you can’t always give in to mental candy, which is what TV (and music) are. You have to lessen your donuts, i.e. the mental candy of TV and frivolous music or you can’t achieve anything. Read More→
What Marketing Methods Will You Use to Promote Your Business?
Posted on February 10, 2014 byOver the last two months we discussed Step #2 of “Determining Your Marketing Plan in 7 Easy Steps” which was to “Determine Your Market”. We broke Step #2 down into 2 parts which were to determine “Who and What is Your Market?” and “Where is Your Market Place?” This month we’re going to move along to Step #3 which is to “Determine Your Marketing Methods”.
Webster defines a “method” as a careful or organized plan that controls the way something is done. Coming up with an organized marketing plan is exactly what the 7 Steps are all about so we want to put some careful thought into the methods we will use to get our desired results.
In Step #1, you determined how many leads you need to achieve your personal and business financial goals. In Step #2, you determined who you want to market to and where you want to market.
In Step #3, you need to determine what marketing “methods” you will use to promote your real estate investing business to your desired prospects in your market area so you can generate your desired number of leads each and every week/month to reach your financial goals. Read More→
It’s Impossible to Run a “4” Minute Mile Before You Learn How to Walk!
Posted on February 10, 2014 byI recently had a telephone conversation with one of my students who asked me what I thought was going to be the next best strategy to use to do more deals in 2014. My student is thinking the market is making a real come back. He is very excited because he is seeing house prices starting to go up, house sales are increasing every month and he had just been told by a traveling Guru that the market has huge profit potential and the market is headed back to 2006 price levels just like it was before the crash.
I can truly appreciate his bright eyes and positive enthusiasm. This student is someone who spends time and money constantly in seminar land listening about the latest niche that will be the next million dollar method for investors to create wealth. I must admit that some of the most recent strategies being pitched could, if done using thorough research and use the correct paperwork could be profitable. My problem with all of these new strategies…. Most of these new strategies aren’t really new. Many have been around for years. The problem, many new investors quickly bore with each strategy as they hear about the next great money making idea that is making investors wealthy. Most of these new strategies will require large sums of money to learn and implement. As market conditions continually change another will soon appear and the investor is again quickly off in a different direction without perfecting the last. Read More→
Get Seller Financing
Posted on February 10, 2014 byBuying and rehabbing distressed properties can be a lucrative business but it can also be risky. Rehabbing and flipping often generates quick checks but may also take some upfront cash to get the deal done. Here are some tips for rehabbing property with seller financing so you keep more of that cash in your own pocket.
If a property is in need of repairs or it won’t cash flow at that price the seller is asking then you may have difficulty getting a bank loan for the deal. Get the seller to finance the deal. Create an offer that will give the seller the price they need but only if they will carry back the loan on the property in a first position mortgage.
If a seller will carry back the loan then you will likely need to pay the asking price or close to it. Your offer must create value for the seller. The majority of the time when a seller carries back a note on a property they are usually more concerned about the price they are getting than the terms of the loan. This can be in your favor. Create an offer that is close to or at full price but with an interest rate and terms that will allow for small payments and bigger cash flow. One example would be making a full price offer with interest only payments. The full amount of the loan would be due when you sell or refinance the property. The risk here is that you don’t pay down any of the loan amount but it would be much easier to cash flow. This works well if the market is appreciating quickly. You can cash flow the deal and then flip it in a few months for a big check. Read More→
Presenting Offers – Part 1
Posted on February 10, 2014 byIn our last article, we talked about Constructing Offers, so now we have to decide how to present them. The first step is to decide what your offer’s going to be. If you’ll remember, you can either lease option the property from the seller, you can buy it with owner financing, you can take it subject-to the underlying debt or sometimes you can pay all cash when you’re dealing with FSBOs.
You make this call by looking at the math on the property information worksheets as we discussed last month and deciding what your exit strategy is going to be. Are you going to stay in the deal or get out of the deal by flipping it on an ACTS?
Your next step, when you can get a YES on the property information sheets, is either: I will sell for what I owe, I will lease purchase, or I will consider monthly payments. Then it’s time for you to pick up the phone and call the seller to verify the facts you have are correct and to have a preliminary negotiation of what the seller has in mind. This is where scripts are very important, and you must get to the bottom line as to the seller’s true intent before you can make an appointment. Many people who are new in the business go ahead and make the appointment without being clear about whether the seller’s really motivated or not. And, even if they were sometimes, it’s not clear what we’re going to do when we get there even if the seller is motivated. So, before I go any further, let me back track just a hair. Read More→