Real Estate Investing Program
Jan 30, 2009 Programs
There are many ways to invest in real estate. You need to find the ways that appeal to you, and then learn as much as you can about those ways. There is one way to invest in real estate that many people don’t know about. It’s called note brokering. One could even argue that it’s not real estate investing at all. I would be one of those who would disagree. Note brokering is where you sell mortgage notes and structured settlements, that are payable to you or someone else, to a third party. This third party, the buyer, will pay less than the face value of the note in order for the holder/owner of the note to get cash today. In other words, lets say that an owner of a house took back seller financing. He is carrying $100,000 in a first mortgage. He is receiving monthly payments of $700. Now, he can continue to receive the $700 per month until the term has ended, or he can sell that note and mortgage. He would assign the note and mortgage to the note buyer. Hence, the note buyer would then receive the $700 monthly payments and would also gain the existing mortgage on the property. The seller of the note and mortgage could receive $85,000 in cash today, but no longer would he receive his monthly payments on the note and mortgage any longer. Essentially, the seller trades the $700 per month for 30 years for $85,000 today. Where does the note broker come in? Well, we marry the two up and back out a fee for ourselves. We advertise that we buy notes. A note holder calls to sell his note. Our note buyer says that he will pay $95,000 for the $100,000 note. We back out $10,000 for ourselves and offer $85,000 to the seller. The seller agrees and signs our option to buy the note for $85,000. We sign the option to purchase that note from us with our note buyer for $95,000. At the closing, the seller gets a check for $85,000, while we get a check for $10,000. I like to consider note brokering as the sister product to H. Roger Neal™’s $1 DOWN. These two real estate programs have the same elements in common. With both programs, we don’t put any deeds in our names, we have no risk or liability, we don’t need any money, and we don’t need good credit. In other words, in both programs we use the option to purchase where someone else takes all of the risk and puts up all of the money. When you compare this advantage to all investing programs, real estate and otherwise, nothing comes close. One final thought, if you’re just starting out, I highly recommend investing where your loss is minimal, like note brokering. It’s a nice way to just jump in, and not get wet.
Spaghetti In The Bed
Jan 26, 2009 Now That's Funny
A repair call came in from one of my doubles. It had a leak in the bathroom. To get to the bathroom you must pass through one of the bedrooms. As I did so I noticed spaghetti on the bed. Not a plate of spaghetti, but actual cooked spaghetti with sauce just splattered on the sheets. To this day, I still wonder how it got there and why the tenants didn’t clean it up. I didn’t ask, I’m not one to pry. Now that’s funny!
Real Estate Investing Opportunity
Jan 23, 2009 Investing Opportunities
For full-time real estate investors like myself, who have the time and freedom to find, investigate, evaluate, and analyze deals throughout the country, it’s easy for us to pick and choose between cities and investment opportunities. As for others who don’t have the expertise and/or time to devote to finding their own real estate investment opportunities, they can rely on H. Roger Neal® to assist them in finding their real estate deals. Right now there is satelliteinvesting.com where H. Roger Neal® has set up a real estate investing opportunity website where all you need to do is provide the 5-10% down payment and obtain financing through his builders. H. Roger Neal® will pick out the new house for you, and get it done to his and your specifications. Those specifications are where H. Roger Neal® and his experience comes in. These houses that cost between $115,000-125,000 need to become rent ready so that upon closing they’re rent ready and rent for about $1,200 per month.
Based upon my experience as a licensed real estate agent in the State of Texas, H. Roger Neal® recommends the following style of home:
- No less than 3 Bedrooms.
- No less than a 2-Car Garage.
- Smaller Home is Ranch.
- Larger Home can be Ranch, or 2-Story.
- Spec Homes can be bought with Huge Discounts.
Based upon my experience as a licensed real estate agent in the State of Texas, H. Roger Neal® recommends the following options:
- Rear Lawn, not included in price.
- All Kitchen Appliances.
- Ceiling Fans, master bedroom and family room.
- Washer and Dryer, helps when prospective tenants are choosing.
- Garage Door Opener, nearly no one else does this.
Texas offers an appreciating economy on the one hand, while having an unlimited supply of tenants, 48% of Katrina victims on the other hand. What an incredible real estate investing opportunity, appreciating real estate and an abundance of tenants! Furthermore, H. Roger Neal® is working with real estate management companies who he lines you up with, even before the closing. Upon closing, the management company drives over to the builder’s sales office and picks up the keys. Allow H. Roger Neal® to show you how you too can get started today with brand new investment houses in Texas!
Real Estate Investing Advice
Jan 16, 2009 Investment Strategy
The best real estate investing advice that you will ever receive will be from someone who is actually successful in real estate investing. It can be a long time friend who is getting ready to retire from a life of landlording. It can also be someone who is 28 years old who has found magic from real estate investing. In either case, you can learn a lot from these friends, and maybe even partner up with them in order to get some hands-on training. The only down side to this is that investors are typically one dimensional, thereby having limited knowledge bases. As we all know, the more we know, the better off we are. In these cases, good deals can slip past us because they are out of your arena of expertise. Although these folks have limited knowledge, they can still be great assets and help you out tremendously. It is important, however, to pay attention to small details and take advice when given to you. It will be very damaging for them to give you advice, you not taking it and doing the opposite, fail, and then run back to complain about how you messed up. Naturally, they will distance themselves from you, as they should. Most new investors will not have that mentor who will devote much time and friendship to you. Also, if you do have that mentor, you can and will outgrow his knowledge base. Of course, in either case, this is where I, H. Roger Neal®, come into the picture. Not only did I begin investing in real estate in 1979, but I made it a special point to learn anything and everything about every real estate technique that I could get my hands on. My motivation was that I didn’t want to let any good deal get away from me. In other words, it killed me to come across a good deal and not make money from it. This is the frame of mind and attitude that I want for you. You should, and could, make money off of every good deal that comes down the pike. It doesn’t matter if you can afford it or not. Somebody can afford it. Without any money, you can still either get the option to purchase and dump the real estate on someone else, or get a partner. Either way, you make money. The problem arises when you don’t know what to do, or who to turn to. If you don’t know about foreclosures, it’s a problem. If you don’t know how to implement my $1 DOWN Program, that’s a problem, too. The bottom line is that you need to enlighten yourself, either from successful real estate friends, or from real estate guru’s like me. In either case, remember that H. Roger Neal® wants you to make money off of every deal that comes down the pike!
Closed Mind, Closed Wallets
Jan 13, 2009 Investment Strategy
It absolutely amazes me that people both successful and unsuccessful alike still expect others to increase their lot in life. On the one hand is one who lives in a $400,000 house, and the other is on welfare. They have nothing in common except their unwillingness to learn something new to improve their respective situations. Allow me to pose those two very recent encounters. On the one discussion, the more wealthy of the two was complaining at a social gathering, unrelated to real estate, that he could use more cash. I briefly explained my FAST-FLIP® program to him, whereby he could continue undaunted with his other endeavors and create notes for income or sell for cash in his spare time. He suggested that since it was so easy, why don’t I just do the deals and give him the money. The other man, who sits around entertaining himself with talk shows and beer, commented that it was I who owned all the real estate. He lives at one of my single homes with a lady who has a Section 8 Certificate. I stated that it was only information that separated him from the real estate that I own. Of course, his reply was, “Yeah, right.” The human brain never ceases to amaze me. When it reaches a point of complacency, it shuts down. That point can be found at both points of the spectrum, rich and poor. When the brain doesn’t want to learn, it won’t. These men reminded me of a remark by a schoolteacher not long ago. She said, “You can’t make a child learn.” I further submit to you that you can’t make anybody learn if they don’t want to, regardless of their position.
Real Estate Investing Strategy
Jan 9, 2009 Investment Strategy
When most people decide to invest in real estate they start by selecting a real estate investing strategy. For example, when someone talks to an investor who owns and manages real estate, they decide that they, too, want to landlord. When some hear and see investors flipping houses on television, they like what they hear and, again, they too decide on that specific real estate technique. There’s nothing really wrong with the examples mentioned above. People find certain real estate investing techniques interesting and decide that would be an interesting way to earn a living, or to start a different career. What’s important to understand here is that a real estate investment technique is different that a real estate investment strategy. A real estate investment technique is the actual method implemented to make money from real estate investing. For example, I like to use my $1 DOWN real estate investing technique, which is the option to purchase. This technique allows investors to invest in real estate without actually buying it and experiencing all the liabilities and risk associated with real estate. A real estate investing strategy, on the other hand, is a more broad term. This is where you would outline what you are trying to do to achieve your goal. Your goal might be that you would like to become financially independent where you can pay all of your bills on time, buy the things that you want, go where you want, and quit your job while continuing with that lifestyle you desire. The real estate investing strategy is how you are going to achieve financial independence. You would begin by addressing your current situation, drawbacks, advantages, temperament, and aspirations. Your situation might be that you’re middle aged, married, have two kids in college, loads of bills, and a halfway decent job. There isn’t much opportunity for overtime, or additional income from that job. Although your spouse works and earns a good wage, there still isn’t enough money to go around, let alone ever recover from your current debt. Facing reality and making admissions in evaluating where you are now is not easy, but necessary for this evaluation. Drawbacks can be things like working 40 hours per week, driving 45 minutes each way, being tired when you get home, and being afraid of risk. Advantages can be that your spouse in encouraging you to start your own business in something, and is even willing to help in any way she can. Maybe she could quit her job as well. Another advantage can be that although you are tired when you get home, you are willing to take the time necessary to try something new. Temperament is important because you need to know what you are willing, and not willing, to do to achieve your goal of financial independence. Aspirations are different for everybody. Some people might be happy with a double-wide on 50 acres that’s paid for, while others want a million dollar house with 3 new cars every 3 years. The real estate investment techniques used to get you there should fall into a specific real estate investment strategy. It could be that you want to continue with your current job. Your spouse continues on her current job. Most everything in your lives remains status quo. Meanwhile, you learn real estate investing techniques in your spare time that allow this to happen. Specifically, you would stay away from landlording which requires demanding duties that need to be fulfilled throughout the day, while you’re at work. You would use real estate investing techniques that you could implement during the evening and weekends. You would do this until you mastered the required income levels for you to quit your job. You would now invest full time in order to generate even more money, even taking on some landlording opportunities. Your spouse could finally quit her job, if she so desired, and you two could invest together in financial independence. This is a real estate investing strategy. It’s a plan, so to speak. The real estate techniques, on the other hand, are how you get there. Outline a strategy for yourself and get started!
New Year’s Resolutions For Landlords
Jan 3, 2009 Investment Strategy
1. I’m going to make more money this year than I’ve ever made before.
I will dump properties not performing.
I will try at least one new money making strategy.
I will focus heavily on rent collection.
I will cut expenses.
2. I’m going to stand tall and not let tenants abuse me.
I realize that tenant excuses don’t pay bills.
I’m going to pick a day to pass out eviction notices and stick to it.
3. Real estate is a business and I’m going to act like a businessman.
Nobody is going to make me feel guilty for evicting non-pays.
Tags: Landlording, New Year's, Resolutions, Tenant
