Category: Real Estate Investing

The Four Steps for Getting Started in Real Estate Investing

You may be thinking, “How do I begin investing in real estate?” 

“How do I take the first step?”  You may even have a more basic

question, “Is this something that I really want to do?”  This post

discusses the four steps that you should take to help you answer

the question whether real estate investing is the right path for
you. 

 Investigating the Possibilities

 

1.         Search the Internet: 

Start your investigation by using the Internet.

The Internet can be an invaluable source of information about

getting started in this business of acquiring real property to

sell, rent, or develop. You can find thousands of  experienced

investors on the Internet who have websites and blogs, offer free

on-line seminars, and who are willing to send you free information

that can help you get started.  Before spending any of your own

money, look to the Internet as a source of free, timely, and

important information on how to become successful in this area of

business. I use the word business, because to be successful, you

must treat investing  as a business and not a hobby.

 2.         Read Books:  Continue your

investigation by reading books. Start by educating yourself about

the business. Your public library is full of free books that you

can borrow to study and find out more in-depth information about

getting started in property investing. You can also buy books if

you think they will be a long-term resource in your education about

this business.

 

3.         Attend Seminars:  After you have

a basic familiarity about this topic, and think this may be the

type of business that you are truly interested in pursuing, then

you should attend seminars where

you can meet other like minded-individuals.  As you are

investigating the possibilities of getting started in this

business, these seminars can be invaluable sources of information. 

At a real estate seminar you can find a network of individuals who

can be the source of encouragement and potential

deals. 

 

4.         Conduct more specific

research: Once you have a better understanding of this

business and if you are still interested and excited, now you need

to get more specific in your investigations.  Find out about the

various opportunities for investing in real estate, such as: single-

family residential units, multifamily residential units, or

commercial properties like larger apartment complexes, shopping and

storage centers, and office

buildings. 

 Conclusion

Once you have

investigated the possibilities about investing in real estate by

searching the Internet, reading books, attending seminars, and

conducting more specific research about the various opportunities

available, then you need to make up your mind.   Is real estate

investing really for me? Once you decide, please let us know. We

would love to hear from you.

Remember that with real estate

investing as one part of your financial plan, you can create the

life of your dreams by following a few time-proven strategies and

techniques. Download a free article on real estate investing at: www.thebookoninvesting.com.

It’s Because You’re Not Branded! Duh?

The Three Paths Through Your Financial Life

Pam and Dexter_Award_ultimate_author_bootcamp_london_dsc_0140
Connie Ragen Green, James Lafferty, the authors, Raymond Aaron, Dr. Mark McKerkow

Have you wondered why you are not as successful as you wanted to be? Have you wondered what was missing in your effort to take your business to the next level? Have you ever thought about branding?

Our business coach, Raymond Aaron, the New York Times best-selling author of “Double Your Income Doing What You Love,” www.aaron.com teaches that there are three paths through life: )1 The Path to Broke, 2) The Path to Middle Income and; 3) The Path to Rich. Which path are you on? He often says that people fail financially and in business because they do not have the right brand or they are not branded at all.

In his latest book, “Branding Small Business for Dummies,” Raymond describes branding as “the science and art of making something that isn’t unique, unique”. According to him, “Branding in the marketplace is the same as branding on a ranch. On a ranch, branding is used to differentiate the cattle from every other rancher’s cattle. In the marketplace, it’s what makes a product or service stand out in the crowd of similar products. The right branding gets you noticed, remembered, and sold. Or should I say bought, because today it is all about buying not selling. Branding is the promises you MAKE and the promises you KEEP. If you’re always late, that’s your brand”

The Path to Broke
Did you know that most of the people in the world fall into this category? Recent statistics revealed that 61% of the population follow this path in life. They work on a standard job or in a business that pays just enough to keep up with inflation. On The Path to Broke, these people” pay everybody else first, (i.e. mortgage/rent, loans, utilities etc.), before that pay themselves. The only plan or financial goal they have to improve their condition is to get another JOB . They have no brand and they swim in the “sea of sameness” just like everyone else. How do I know this? I know because I followed this path for a number of years. I felt like I was on a treadmill. I wasn’t going anywhere fast! Are you following The Path to Broke?

The Path to Middle Income
The second path through life that people choose is called The Path to Middle Income. Thirty-six percent (36%) of the population choose this path in their financial lives. They seek education or they get a skill, license, or profession. They earn more than the folks in The Path to Broke, but they are not branded. A good example of this concept would be your local dentist, lawyer, or other professional. They may make good money but unless they are branded or invest wisely, they will always be within the financial boundaries of” middle income”. Again I am very familiar with this path because before I became educated about branding, this was my destiny. I thought that striving for anything else was reserved for the rich. The Path to Middle Income is a good category. However, I realized that I was still owned by my job. I could never be independently wealthy. Do you feel tied to your job or business? Are you unable to take a vacation because the job or business would stop if you were not there?

The Path to Rich
Then there is the third path, The Path to Rich. This is where only 3% of the population resides. The people in this category understand the importance of investing, developing and buying businesses, and most of all the importance of branding. They realize that protecting their brand is the most important thing for them financially.

What is Your Brand?
When you think of a good brand, what do you think of? Apple, Coke, Exxon, McDonalds? All these are multi-billion dollar brands. These companies spend millions of dollars each year promoting these brands so that you, the consumer, continue to buy their products and services. Also, these companies will do just about anything to protect the brand.
As a matter of fact, at a recent seminar that I attended, I had a chance to listen and learn from Mr. James Lafferty, the former CEO of Coca Cola in the Middle East and Africa. He stated that one of his main responsibilities while at Coca Cola was to promote and protect the Coke Brand. He also stated that managing your brand is the key to have a successful business that will last for years.
So, what are you doing to build and develop your brand? What do you stand for? How is your work product or service different from all of the other ones that are out there? Understanding this basic concept can move you from The Path to Broke to The Path to Rich.

If you want to be sure that you receive the next article on this subject: How Can I Develop a Brand to Grow My Business, don’t forget to sign up to follow this blog.

For more information about this topic and other wealth creating ideas go to www.thebookoninvesting.com to download your copy of The Book On Investing.

Building Better Business Relationships

JT Foxx_Dexter_Steadman Graham_MegaPartnering
Dexter with JT Foxx and Stedman Graham

Do you have the types of relationships that are beneficial to your career or business? Are you networking with the right people? As you know, Your Network equals your Net Worth!

Here are seven reasons why your success depends far more on those all-important relationships than you realize:

(1) Any entrepreneur will tell you that their greatest asset is their network or circle of influence. It’s where opportunities come from. And when it comes to networking, doing it old school is a major distinguishing factor versus social networking. When you have a personal relationship with someone that creates a level of trust that sets you apart from the virtual hordes on the Internet. People do business with people they trust and know.

(2) Strong relationships make it easier to get information. Information is power. It could be about a major project, a potential customer, a big deal or ways to save money. When it comes to important stuff, you have to give to get, and you’re not going to get anything valuable from somebody who doesn’t have a relationship with you.

(3) Relationships get people through tough times. We’ve learned that, all things being equal, a good personal relationship will help you keep your job, win the business, or gain whatever it is you need. It can make the difference when times are hard. It also means you have someone to lean on. Try leaning on someone you hardly know.

(4) The bigger your business becomes the higher the stakes, the bigger the deals, the more important everything becomes. And that means people have to look you in the eye and feel confident that they know who they are dealing with and that you’ll do what you say you’re going to do.

(5) Companies today are leaner, and that means they have fewer, but stronger relationships. No kidding. It’s the same reason why manufacturers minimize their number of vendors, suppliers and components. Because it’s more cost effective that way. Also, there’s a cost associated with bad business because you didn’t know the person as well as you should have and he failed to meet a commitment. In addition, they understand that building stronger relationships with customers, the create clients for life.

(6) It may be easier than ever to work and communicate virtually, but all that does is level the playing field, meaning there’s nothing that distinguishes your relationship with an individual. There’s no real connection, no real bond, and when push comes to shove, you can’t expect that person to do anything special or to go the extra mile for you.

(7) Building good relationships is important in just about every other country on earth than they are in the U.S. Why that is, I don’t know. It seems as though every culture devotes more time and energy to personal relationships than Americans do. And the more global our markets become, the more important it is to get with the program.

Free Networking Events
If you want to find out how you can build better business relationships then join us at one of our networking events.

Send us an email to get information about these free networking events at:

dexter@thebookoninvesting.com
or
pamela@thebookoninvesting.com.

Visit us at www.thebookoninvesting.com

Sometimes It’s Not Just About The Money!

Dex and Pam
Dexter and Pam

We’ve been talking to you about the importance of having the financial freedom to do what you love, but it is important not to confuse being rich with being happy. A dream life is not just about the money. Most extremely wealthy people will tell you that having lots of money doesn’t automatically guarantee happiness and satisfaction. Those come when money is not the goal but a tool you use to obtain what you really want out of life.

For example, Pamela’s initial goals were best obtained by looking for opportunities to be an active, healthier, more productive member of society. Of course, that involved spending money and doing things for herself, but it also meant doing things for others — which is the very important other end of the spectrum.

Philanthropy has been a huge part of our lives and we’re very involved with our church and local charities. This past Christmas, for example, we rang bells for the Salvation Army and met many kind-hearted individuals while standing in front of Wal-Mart. We have learned that it is important for us to give both money and time to charitable endeavors.

We’ve talked to you about having a dream, setting goals, and wanting more out of life than going to work every day, just trading hours for dollars. Of course there is nothing wrong with that but, if you are like us, you want and can achieve so much more out of life.

We’ve also talked to you about being able to help people, which is the other end of the happiness equation. Investing has given us the opportunity to create the kind of life we want to live.

Now, we want to help others do the same, to realize that relying on a traditional job for financial security (for them and their families) is just not the answer. We all need to work, but it doesn’t have to be the proverbial 9-5. We’re not saying that you need to quit your job today.

What we are saying to you is that while you’re working and have that income, try to create some other kind of business or investment opportunity. Finding financial freedom isn’t going to happen if you are just having a portion of your paycheck going into a savings account or mutual fund. That’s not going to be enough in today’s economy.

The answer is to find a way to make money from your passion. What is it that you want? What are your dreams? What is your WHY?

We have several coaches who help us fulfill our dreams. One of those coaches is Connie Ragen Green. Connie is such an inspirational person! She decided after many years of teaching and working a second job as a real estate broker to start an on-line marketing business. In a few short years she was making a 6 figure income from her efforts.

I have personally met and talked to Connie and participated in her training programs. If you want to enhance your career, jump start your new business, or take your current business to the next level follow the link at the end of this post for the FREE Super Summer Giveaway (it’s available year round) to get some outstanding free information!
Super Summer Giveaway

That’s right the information is FREE! Connie will help you start to see the possibilities!!

Book Launch in London

IMG_0359bigbenlondon2012
London: Big Ben at night

We just returned from London where we launched “The Book on Investing” www.thebookoninvesting.com in the U.K. at The Ultimate Author Bootcamp www.theultimateauthorbootcamp.com.

You should have been there! You could have met the many interesting and exciting people in London like we did. Perhaps you would have enjoyed the wonderful sights and sounds of Christmas as you visited the Winter Festival in Hyde Park or shopped on Regent Street or Sloane Square!!!

Have you ever dreamed of visiting London? Perhaps you dream of owning a bigger house or creating wealth for you and your family. I challenge you to dream big and to launch the life that you want live!

Making Your Dreams Come True
Dreams won’t necessarily come true on their own, although you’d be surprised how often clarifying what you want and focusing your thinking on something is enough to make it happen. There will be lots of new things to learn and tasks to be accomplished, so it is important to establish specific goals, with deadlines, and then take the necessary actions to meet or exceed your own expectations.
Perhaps you are one of those people who absolutely hate deadlines. Do they fill you with dread and create a level of anxiety that keeps you from doing anything at all? Not to worry, when set properly a deadline is your friend in that it motivates you to move forward and provide a wonderful, satisfying measure of success.

Our early experience summarizes what we’re talking about perfectly — we had a dream, a plan, and a set of goals. Critically, we continued to take the actions needed. Now, we are fulfilling an entirely new set of big and wonderful dreams.

This process is definitely not as monumental as it sounds. By laying out a plan for yourself and continually setting attainable goals, you can have outstanding success also.

If you are interested in finding out more about a successful goal attaining system that can help you achieve your goals go to our website www.thebookoninvesting.com to get a copy of the book.

Your Network Equals your Net Worth!

Does it seem to you that there never seems to be enough time to get everything done. Why is that? I don’t know. But I do know that, in an era of social networking, telecommuting, and virtual meetings, when it comes to business, the one thing that often gets sacrificed is developing relationships.

That’s a big mistake.

If you want to get anywhere in your business, one of the worst things you can do is just focus on being in the business and work, work, and more work to the exclusion of building relationships and widen your circle of influence.

Success today is all about building relationships. It is vitally important to build solid relationships with the people you work with, customers, clients, stakeholders — everyone in your immediate business circle.

And I’m not just talking about working relationships; I’m talking about your personal relationships with these people, where you break through the workplace persona people use for whatever reason and actually connect with the human being beneath.

Just to be clear, this isn’t about wasting people’s time. That’s a bad idea because, as I said before, that’s the one precious commodity that nobody has enough of these days. But if you do it right — if you’re genuine, open and sensitive to people’s boundaries — you’ll do fine.

Recently I attended a fabulous networking event in Chicago, Mega Partnering IV, sponsored by one of my business coaches, J.T. Foxx. Hundreds of the country’s top business owners and leaders attended. One of the general themes for this event was that your network equals your net worth. In other words, there is a direct correlation between the people that you associate with and your net worth. So, logic dictates that if you want to increase your net worth, then you should start to build relationships with higher net worth people. Remember, your network equals your net worth!
If you are interested in expanding your network and increasing your net worth, I would highly recommend that you join me in Dallas, May 4-6 for Mega Partnering V. Seats are limited, but I am able to invite a few friends. If you would like an invitation go to: https://foxx.infusionsoft.com/go/mega5prime/dextermontgomery

To learn more about building business relationships and increasing your net worth, go to www.thebookoninvesting.com.

Real Estate Investing So Easy A Child Can Do It

Today I read a very interesting story from Florida that has made the national headlines.  A 14 year old girl from Port Charlotte, Florida, took her earnings from selling items on Craigslist and invested her money in real estate.

Willow Tufano, who earned $6,000 from selling items on Craigslist, decided not to use her earnings to buy depreciable assets such as video games or other toys. Instead she decided to make her money work for her. She took the first steps toward securing her financial future by purchasing a house that she could rent.

By partnering with her mother, she was able to purchase a$100,000 property being sold as a short sale for $12,000. With a little sweat equity, she turned that property into a positive cash flowing investment. Not only is the property cash flowing, she has built-in equity in the property.  

Willow’s mother says that her daughter is always thinking, “How can I skin the cat differently?”  Willow even helped the new tenants find a free bed and mattress.

Let’s analyze what this 14 year old was able to accomplish.

  1. First, she is a natural entrepreneur. She started an internet business that allowed her to raise capital and build net worth.
  2. Once she had some capital to invest, she looked for a deal that would give her leverage and give her the greatest return on investment.
  3. She researched an found an opportunity in real estate where she could buy the property with little or no money down and maximize her profit potential.
  4. With the help of her mentor and coach (her mother), she was able to negotiate a deal with the bank to purchase the property for pennies on the dollar.
  5. She partnered with another higher net worth individual (her mother), to leverage her investment and minimize the risk to capital.
  6. She bought into a real estate deal with instant positive cash flow.
  7. She also bought into a deal that provides instant equity in which she can use to purchase other investments
  8. She was able to add value to other people’s lives by helping them achieve their goals of having a decent and safe place to live.

I applaud Willow and others like her because she has taken action to secure her financial future.  At the young age of 14, she already understands and has learned how to raise capital, look for and negotiate deals, calculate return on investment, invest for cash flow, use leverage to maximize investment, invest in equity, and form partnerships. She has also learned about the importance of having a coach and mentor to accomplish her financial goals and that by helping others, you actually help yourself.

The question becomes, why aren’t more people doing this? I mean, if a child can understand and do this, why not more Americans?

I think it all goes back to the lack of financial literacy in our society today.  You see, our educational system is still teaching us to work for someone instead of us working for ourselves.  We are programmed to use the old business model of work in a job, pay taxes, live and save what is left. The new business model says that you become a business owner, live on the efforts of others and pay taxes on what left. This is the business model that the wealthiest 1% in this country uses.

We need to get back to common sense when it come to money and investing. I am sure that Willow absorbed every bit of information that her parents were saying about investing around the dinner table.  

Look out for Willow.  She is destined to become the next Warren Buffet or Donald Trump.

For more information on becoming The Savvy InvestorTM ,like Willow, go to www.thebookoninvesting.com.

More information for The Savvy Investor

 INVESTING BASICS FOR MAKING REAL ESTATE DEALS COME TO YOU

Do you have real estate deals coming to you? To have real estate deals coming to you, you will need to let people know that you are in business by placing ads in the newspaper, placing ads on the Internet, and placing bandit signs on the street. Placing ads on the Internet may be your first consideration because it’s free.

Using the Internet for advertising is much more cost effective than any other advertising media. Despite the Internet being more cost effective, you still need to learn how to target your market. On the other hand, placing ads in the newspaper and posting signs on the street will cost more than using the Internet, but placing ads in the newspaper and posting signs on the street, may be easier to target a specific area and market.

Regardless of the advertising method(s) you select, people will see your ad and call you. The people who do not call, you will have to find them.

  INVESTING BASICS FOR FINDING REAL ESTATE DEALS ON YOUR OWN

Finding the people who do not call you can be accomplished by making calls to all the ads in the newspaper, all the ads on the Internet, and all the “We Buy houses” signs you see on the street. Making all these calls will serve two purposes:

1) to inquire about potential real estate deals, and
2) to let the other person know you are looking for real estate deals.

Calling the ads in the newspaper and on the Internet is a good way to introduce oneself to other investors and owners interested in selling their houses. Calling the “We Buy Houses” ads and signs will introduce you to other investors. Contacting other investors will also let you know if they have any houses for sale and what type of houses they are interested in buying. Those first few calls can be stressful.  Just remember to use The Savvy InvestorTM  Interview Format of fact, goal, and challenge type questions to qualify a potential dream team member.

Contacting other investors is also a good way to develop your buyers list. Knowing what other investors are looking for will help you when it comes time for you to sell the property you have acquired.
To find out more about making the real estate deals come to you go to www.thebookoninvesting.com.

New Program for Underwater Homeowners Set to launch in Two Weeks

The federal government is set to launch a revised Home Affordable Refinance Program in mid March. This program expands the opportunities for homeowners who are underwater to refinance their homes, if they meet detailed eligibility requirements.  The revised program comes with streamlined underwriting: no requirements for physicial appraisals in many cases, speedy processing, and the elimination of many expensive fees that have been previously imposed by Freddie Mac and Fannie Mae.  For more information about the process and to determine eligibility go to the following websites:  www.freddiemac.com and www.fanniemae.com

 

The Book On Investing — Federal Government Housing Policy: Homeowner Affordability and Stability Plan

A critical part of the Obama Administration’s broad strategy to help the millions of homeowners still struggling to pay their mortgages avoid foreclosure,  stabilize the housing market, and improve the nation’s overall economy is the Homeowner Affordability and Stability Plan

One part of that plan is the Making Home Affordable program.  This is an official program of the Departments of Treasury & Housing and Urban Development.  The Making Home Affordable program offers a number of mortgage reduction relief programs for individual homeowners.  

If you’re not unemployed, but you’re still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP).

If you’re not behind on your mortgage payments but have been unable to get traditional refinancing, you may be eligible to refinance through MHA’s Home Affordable Refinance Program (HARP)

More information on the Making Home Affordable program can be found at www.makinghomeaffordable.gov    

Each month HUD and the Department of Treasury release the Housing Scorecard-a comprehensive report on the nation’s housing market.  Data in December 2011, released January 9, 2012 show some subtle improvement in the housing market as compared to the same period in 2010.  However the data underscore the fragility of the overall housing market as the outlook for stabilizing the market remains mixed.  Home prices showed a slight dip from the November 2011 and remain below levels from a year ago. 

The Housing Scorecard can be found at www.hud.gov/scorecard.

WHAT DOES THIS MEAN FOR THE SAVVY INVESTOR?  You should stay abreast of the latest government policies and market trends.  It will make you more knowledgable in your dealings with real estate buyers and sellers.