Tampa Real Estate Investors Alliance Blog

The 2nd edition of The Profit, the official newsletter of the Tampa Real Estate Investors Alliance (Tampa REIA), is out for the month August 2012! Read and enjoy a variety of articles on real estate investing from Mike Barnes, Dustin Griffin, Larry Harbolt, Russ Hiner, Robyn Thompson, Erven Kimble, Jim Hitt, Bob Massey, Tony Pearl, Kathy Kennebrook, Don DeRosa and more. Don’t forget, Tampa REIA Business Members can advertise in The Profit at discounted rates.

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It is no wonder that the biggest marketing rage right now is the idea of having a website that is “thumb friendly”. According to Google, the mobile marketing revolution is growing 8x’s faster than the original web boom!

Of course, with any new wave, you will have your early adopters and the “it’s just a fad” naysayers. This wave is going to be bad news for the people who don’t get on it, because if you do not adapt to it now, your competition will pass you by very quickly. Some of these statistics should be frightening to any business that at the very least does not have a mobile friendly website.

• By 2013 more people will use their mobile phones than PC’s to get online (Gartner 2012)
• 61% of local searches on a mobile phone result in a phone call (Google 2012)
• Smartphone Shipments Surpass PCs for First Time (PC Magazine Feb 8, 2011)
• 44% of Facebook’s 900 million monthly users access Facebook on their phones. These people are twice as active on Facebook as non-mobile users (Facebook 2012)

Let’s look at it from a different global perspective… Of the 6.8 billion people on the planet, 4 billion of them own a mobile phone… that’s almost 60%! Consider globally, that there only slightly over 1.4 billion television sets.  Of those 4 billion mobile phone owners, 1 billion of them own a smartphone. That is 15% of the world’s population owning a smartphone, making them completely “mobile ready”. Read More→

If you’ve ever wanted to have a ‘leg up’ or an unfair advantage over the competition, there’s a secret weapon that is available now for you to use… It’s called ‘SMS Marketing,’ otherwise known as ‘Text Message Marketing.’

Those few who have it and know how to use it properly are absolutely killing it, while those who have yet to discover its power are totally missing out, and losing business to their competitors who have embraced this new way to use an old technology to promote their businesses.

It’s no secret that most people have a smartphone these days. You can’t leave home without it. Even those who don’t have a smartphone still have a “dumb phone” (a simple cell phone) that can send and receive Text Messages. Everyone from teenagers to senior citizens seems to carry one, either hidden away in their pockets or firmly strapped to their hip.

And while most people still have and use email, the open rate for the messages you send out now are pathetic… and declining rapidly.

So how can you reach out to your prospects to get their attention and put your offers in front of them? Simple: Send them a brief, well-written Text Message! Read More→

Fact: Getting Bank financing this year or any year in the near future for real estate investors is no longer a reality. If you haven’t noticed the real estate investing business has had a major make-over, and in my opinion not for the better. What this means for the real estate investor is, affordable financing to buy houses just isn’t going to be in the cards for them. Some of you may think you can actually get a loan from a bank or you think it will be easy for you to find a private lender with lots of money who will fund your deals, all I can say is Good Luck. Many of you are still making offers to buy houses contingent on getting some type of financing when this could prove to be impossibility? The worst thing I see everywhere I go are investors believing they will be able to make their deals work and get the money they need to complete their transactions when I know for most it isn’t going to happen. All too many investors are finding it impossible to get affordable financing today. So let me ask you, how do those of you who depend on getting some type of financing plan to pay for the properties if you can’t get the money? Unless you can figure a way to pay for the deals you find you will slowly go broke. This isn’t a pleasant thought is it?

Many of the leading economists I follow are saying that the economy we are currently in won’t completely recover until 2023. If this is truly the case I see a ten year window of opportunity unlike any we have ever seen before if the investor is willing to learn how to make a slight adjustment in the way they are doing their deals.

Here’s what I see as another major problem for investors today… for the investors who have less than good credit and don’t have access to money having to use Hard-Money loans or some type of a bridge loan to finance their deals. This is a wonderful plan provided each deal can endure the costs of these types of loans and still give the investor the profit they need. For most investors using these types of loans may be unavailable or just too costly.

Are you losing sleep at night worrying about how you will be able to pay your bills every month? Are you worried that you might lose everything you’ve worked so hard to acquire from years of hard work?

Have you heard the stories about other investors going broke simply because they are unable to close on the properties they are buying just because they don’t have access to the funds they need? It’s a simple fact there are hundreds of thousands of real estate investor across the country this year that won’t be in the business next year! Are you going to be one of them? Read More→

On June 7, Creative Loafing did an article on “The High Price of Hope”; the article talked about a man named Angel, who put himself in a financial bind in Southwest Atlanta. This is something that happens to a lot of investors. As an investor I also took a financial hit, and this is my story.

Angel’s focus was not on the alligators but was on the ether of Adair Park, the beltline, and a cheap house. He bought this shell of a house that was in a crime-ridden area with a huge number of vacancies, and prostitution for $14,000.

Angel had a lot in his favor, he was very resourceful. He knew people who worked on the city council and the neighborhood association. The architectural plans he purchased made it through code enforcement, city planning, and the bid from the contractor to build his vision. Angel is a young man, and in the real estate business, time will solve all problems. When we tap into using our relationships that will minimize our risk and maximize our potential profit are invaluable. When we are able to weather the storm through proper planning and realistic goals we will succeed. Read More→

I have become financially independent renovating houses, and you can do the same; however, if you aren’t prepared, the process can become completely overwhelming. To help you avoid the pitfalls that are out there, I have developed eight key strategies to assist you in growing your house renovation business. If you are willing to learn from my experience, you will enjoy greater success much sooner.

While I was able to renovate 17 homes during my second year in the business, by employing the following strategies, I have grown my business to the point that I can, in today’s environment, renovate 40-50 houses per year. Keep in mind that I do an average of $26,000 to $50,000 worth of repairs to each of my houses, so these are not quick carpet and paint jobs.

Here are the eight key strategies to help you take your house renovation business to the next level.

Key Strategy #1: Develop The Ability To Take Action Quickly.

One of the most important elements of my success is my ability to take action quickly. In my area, the competition is tough, and if I procrastinate I will lose deal after deal.

If you want to “steal” a house, you’re going to have to be able and willing to act quickly when a good deal presents itself. If I go and look at a house that I feel is a good deal, I write an offer immediately; get to the point where you are able to do the same. Read More→

“A man devoid of understanding shakes hands in a pledge,
And becomes surety for his friend.”
Proverbs 17:18

The biblical terms “shakes hands in a pledge” and “becomes surety” means that a person co-signs on someone else’s debt. In the business community, this also relates to a loan guarantor who has no collateral or control. Co-signing, simply put, is a risky and unwise personal and business practice.

This bible verse is a strong words against, what seems to be, an acceptable and routine practice in our society. However, to imply that a person lacks understanding is an accurate assessment of the level of fiscal wisdom most people don’t exercise when it comes to co-signing. In light of the complexity of this subject, the next few articles will continue our exploration into the practice of guaranteeing someone else’s debt.

I believe it is fairly safe to say, many of us have asked someone to co-sign for us on a purchase at some point in our lives. Or perhaps, you have been asked to co-sign for a family member or friend. Maybe you were trying to help them establish their credit for the first time or help them recover from a financial meltdown. The intentions, both ours and theirs, were probably noble and sincere. Frankly in our culture, most people don’t think of co-signing as being something unwise to do or something to be avoided. Read More→

Are You New to Self-Directed IRA Investing?

Many people are not sure if they have enough money in their IRA/401(k) account to even begin thinking about investing with it via a self-directed account. We have many clients who have taken accounts with small account balances and grown them into sizeable accounts simply by making one successful investment at a time. In this article, we will share the story of one of our clients, David G.’s 1^st self-directed Roth IRA investment. David G., by the way, grew his account from $6,800 to $293,000 in 5 short years.

David G. Decides on What His First Self-Directed Roth IRA Purchase Will Be

David G. was new to self-directed IRA investing and said “I wanted to ‘test the water’ with an easy first investment. Land was a good choice because it requires very little management.”

David G. Finds a Great First Purchase

David G. wasted no time in finding the land he wanted to purchase. He found an oversized, undeveloped, 1.87 acre residential lot. This lot had a low selling price of $18,900 (in comparison to its actual market value of $31,000). The lot really had a lot of value and appeal within it as it contained: water, sewer, a great view, and an additional upside potential to split the lot into 2 parcels. Read More→