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Tampa Real Estate InvtEBs2lla3ce • FEB 2013 JoinLarryHarboltat MAIN MEETING TampaREIAonFeb14th Thursday, Feb 14th DoubleTreeTampaBay DoMostRealEstate 3050N.RockyPointDr.West,Tampa,FL 6:00pm – 9:00pm InvestorsReallyKnow to Text TAMPA to join 813-377-3428 WhataGoodDealIs? our Mobile VIP List! By Larry Harbolt Standard text messaging rates apply IN THIS ISSUE t amazes me how so many so called and at the same time believe you will real estate investors who have been eventually become wealthy using the plan DWhat a Good Deal Is?nvestors Really Know I in the business for less than five years you are currently using. If you got intoarryHarbolt.......................................................................1 think they know enough about investing the business when money was easy to get, CaptureNotes:Your Life, Color-Coded in profitable properties to be able to create your perception of what is a good deal iseRosa........................................................................▯.5 a fortune. Think about this for a minuteprobably is not an accurate assumption. Learn HowTo Be A Blue Collar Genius if you have been an investor for 5 years ByJimHitt........................................................................▯..........7 or less the majority of your investing Another important mistake beginning Getting Started In Multifamily Part 1 knowledge is based on trying to buy investors make is using dollars per squareyBillHam........................................................................▯........8 pretty houses, pay cash for them, or getfoot to determine the value of any prop- ByKimberleeFrank..................................................................9 institutional financing to fund your deals erty is not a prudent way to give you what PEstate Investing Business – Part 2 any property is worth. ByKathyKennebrook..........................................................11 Another reason I say 2013: AYear of AchievingYour Goals with PAC investors who have ByRussHiner........................................................................▯..13 been in the business The Best DealsTo Do in Real Estate in less than 5 years is, alByTonyPearl........................................................................▯..14 most everyone I meet who is trying to be- PPart 2: Follow the Money and Fraud come a successful real ByBobMassey.......................................................................17 estate investor think Greed In Business =Trouble InThe Family! the only good deals ByErvenKimble.....................................................................18 are short-sale deals. WhichType of Real Estate Investing Deal Has In my opinion, this is ByBillCook........................................................................▯.....20 failed, but constantly Meeting Calendar...............................................................21 continued on p3 Calendar of Events..............................................................22 Tampa REIA, LLC Larry will be speaking at ourTampa REIA Main Meeting onThursday, February 14th on how to identify a good real estate deal when you see one. Larry is also 405 S. Dale Mabry Hwy, Suite 114 doing a one day class on Saturday, February 16th on deal structuring and Tampa, FL 33609 strategies for the investor who is struggling to make money in this current P: (813) 358-8050 • F: (813) 200-1330 real estate market. See http://tampareia.com for more information. email@example.com http://tampareia.com © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publishehttp://TampaREIA.com 1 Tampa Real Estate Investors AFEB 2013• MainMonthlyMeeting th Doubletree SuitesTampa Bay 3050 North Rocky Point DrWest February 14 @6pm Tampa, FL HowtoKnowaGood InvestmentPropertyWhen YouSeeOne withLarryHarbolt Do you really know a good real esbecome a highly successful, seasoned deal when you see one?You would binvestor in the shortest period of time. surprised how many real estate investors who have been in the business for less will share with you his secrets and those of other seasoned invesLarry Harbolt than 5 years, think they know howand teach you why they are successful separate the winners from the losregardless of what the market conditions Many of these well intentioned investors MEETINGAGENDA* don’t know how to invest in trulylook like from month to month or ye6:00 pm after year. Meet & Greet, Networking profitable properties that will eAnd for those of you who want to learn them to achieve immediate cash flow 6:30 pm as well as long term wealth and lastingore, Larry is also doing a fulltroductions, Haves &Wants financial independence. day workshop on Saturday, February 7:00 pm 16th on deal structuring and real estatencements If you would like to learn how toinvestment strategies for the inves7:30 pm great deal from a marginal deal or a real Larry Harbolt on Identifying who is struggling to make money in Winning Deals loser, be sure to join us at Tampcurrent real estate market.This is yet on Thursday, February 14th at 6:0another opportunity for you to learn:30 pm at the Doubletree Suites located how other successful investors think,te Night Networking at 3050 N Rocky Point Drive West in Whiskey Joes analyze their deals and structure t*PleaseNote:Meetingagendaissubjecttochange. Tampa, FL where local real estatethe way they do. Larry Harbolt will teach you how you can Bringyourbiz Gold Business MemberampaREIAMembers&GuestsCanAttend cards&flyers 1/1/201534l: No. ThisMonth’sMeetingforFREE! PleaseRSVPathttp://tampareiafeb2013.eventbrite.com © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permishttp://TampaREIA.com Tampa Real Estate Investors Alliance FEB 2013 Know What A Good Deal Is? cont. from p1 used way to buy property beginning inves- Would you be interested in that deal? It ishare with you what a seasoned investor tors use. Why you may be asking is invest- a 3 bedroom and 2 bath house, are you stillnows and why they are successful regard- ing in short-sale properties a failed plan?interested in this property? The property less what the market conditions are month Here is some facts most potential short- will rent for $1,500 per month, would you after month and year after year. sale investors don’t think about. First, ifstill be interested in that deal? the investor needs fast money, short sales You surely don’t want to miss what I’ve probably won’t be the answer to your The seller I asking $1,000,000 for the got for you at Tampa REIA on February needs. Most short-sale deals take months property. Are you still interested in 14, 2013. to close. Many take six to nine months to the property? get through the short sale process. See you there! Maybe not but, what if the seller would Other newer investors want to be Whole- be willing to take $500 per month until Larry sale investors. Being a wholesaler is not be- paid in full and you could cash-flow that ing an investor, believe it or not, you havproperty with $500 of the $1,500 for the Commentonthisarticleonlineat a job you must continually repeat if you property expenses of the property leaving http://tampareia.com/?p=1620 want to survive in the business. Let me you $500 each month to put into your ask you a question. If you had $100,000 pocket. Now are you interested in buying LarryHarbolt or could borrow $100,000 and could buy that property? Remember, you must get 727-420-4810 a property worth $150,000, how many either “Price” or “Terms” to make a good LarryHarbolt@Gmail.com of you think this would be a good deal? I deal. You must think about only doing personally think that deal would stink and profitable deals. The price is less relevant www.LarryHarbolt.com www.Facebook.com/Larry.Harbolt.7 here is why. If I had $100,000, why would when the terms of the deal allow you to www.Twitter.com/LarryHarbolt I put it all in one deal when I could dividprofit handsomely month after month. It’s that money into $5,000 increments and just common sense most beginning inves- creative Seller Financing expert asng control twenty properties worth $150,000 tors don’t have. well as a popular national real estate if done correctly? tested strategies and nuts and bolts teaching All of these questions are extremely im- style has helped thousands of aspiring real estate Here is another reason I don’t believe be- portant for every investor to answer if theyentrepreneurs realize their financial dreams ginning investors would know a good deal plan to create wealth. Join me on Thurs- for credit. Larry has been successful creatively even if it slapped them in the face. Let meday,February 14, 2013at Tampa REIA buying and selling real estate for over 30 years ask you some questions… where I will explain how you can become and has written numerous popular articles and a seasoned investor with some of the im- meetup group in St Petersburg, FL for real estatea investors for over 13 years. Youfindapropertyworth$150,000thatis portant information that can allow you to in great condition in a good neighborhood. do so in the shortest period of time. I will Real Estate Investor Happy Hour Every 3rd Thursday at 6PM with Matt & Courtney Larsen SeeWebsite for Location http://reihappyhour.tampareia.com Join us on Meetup and RSVP for the meetings you will be attending www.MeetUp.com/TampaREIA © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publisher. http://TampaREIA.com 3 “Investing Ideas All Investors Must Know In Today’s Changing Market” AFullDayWorkshopwithLarryHarboltSaturdayFebruary16,2013from9:00AMto5:00PM OceanPalmsHotel,500534thSt.North,StPetersburg,Florida33714 Hello investor friends, Happy NewYear and a prosperous 2013 to everyone! I want to let you know that I am doing a special one day class on strategy and deal structuring for the investor who is struggling to make money in this current real estate market.This class will help you see and find the missing pieces of the real estate puzzle you’ve been looking for to make your investing business thrive. I will show you how to quickly determine which the good deals are,and which are the not-so-good deals.This class will take you to different levels of deal structuring and strategy you’ve never seen or thought of before.You will learn how successful investors in today’s market think through every deal they do and how they structure multiple ways to buy any property.I will also show you why“CASH”isn’t always the best solution for every seller,and why. Here is some of what you will learn during the class… HThe Key Components of Every Successful Real EstateTransaction. Registration starts HA“4”Part Multiple – Choice QuizTo See Just How MuchYou Already at 8:00 am Understand About Real Estate Investing. HDeterminingWhatYou Need toThink About BeforeYou Every Make Class 9:00 am - 5:00 pm an Offer to Purchase. HWhatType Properties Generate the Most Profit? Saturday, February 16, 2013 HWhyYou Should NEVER Use Dollars Per Square Foot as a Cost Factor Ocean Palms Hotel to figure theValue of Any Property. H“15”Types of Properties to Avoid Like the Plague. located at 5005 34th St. North HThe Multiple DifferentTypes of Profit Real Estate Can GiveYou. HWhat Are the Key QuestionsYou MUST Ask Every Seller? St. Petersburg, Florida HKiller Negotiating StrategiesThat Rarely Fail. HHow to OvercomeYour Fear ofTalking to Sellers. HLarry’s“8”Basic – Simple Offers HMoreThan a DozenWays to ChangeYour Offer to Give the SellerWhatTheyWant and You Get What You Want. H“8”Ways to Get StartedWhenYou have NO MONEY and FAR LESSTHAN GOOD CREDIT. HKey Factors About the PaperworkYou UseThat Is Critical toYour Deals. HWhoYou Need onYourTeam to Build Success the Fastest. The cost of the class is $80.00 per person.Registration starts at 8:00 am and the class starts and at 9:00 am lasts until 5:00 pm.You can pay at the door by credit card,cash or check payable to“Harlon Publishing,LLC”.Everyone who attends will receive a handout manual to take notes to get the very most from this never taught before real estate investor class.For what you will receive at this training,you can’t beat the price anywhere! I hope to see you on February 16,2013 – It’s going to be a GREAT day for everyone who attend the class! LarryHarbolt Payatthedoorbycreditcard,cashor checkorregisteronlineat: http://Larry.TampaREIA.com Tampa Real Estate Investors AlliaFEB 2013 There’s an app forThaT CaptureNotes: Your Life, Color-Coded By Don DeRosa “I’m known for my handwritten notes.” ~ Pamela Anderson ou’re driving your Uncle Bugsy as reminders (red for “to do,” for example,e back it up! to the doctor when you spot or green for “research needed.”). Those Y a “for sale by owner” sign in flags can even be used to tag a specific mo-ture it: with the clock ticking (Un- front of a nice little brick house. Youment in the audio. cle Bugsy is waiting, after all), you start a already running late, but you’ve been new notebook. Then you jump out of the watching this house – it’s got a big blSecond, it allows you to import PDF files and take pictures of the FSBO sign, tarp draped over the roof – for a coupland use them as templates. This is a greatvarious shots of the house. Now add of months now. You’ve got no pen and way to create standardized forms for spe-se pictures to your note, and then circle paper, and you won’t have time to stop things on the picture of the house that later. Sure, you can snap a picture with might be problematic. Go crazy and draw your cellphone, but you’d really like to lots of arrows and circles. Then, flag some- take some notes, too. thing just for the heck of it. Between the flags and the ability to write and highlight Unfortunately, Uncle Bugsy isn’t known in different colors, you’ll have an exciting, for his patience, so you’re only going to dynamic note that’s definitely useful and have about a minute before he starts com- darned near artistic. plaining about how inconsiderate kids are nowadays. And that’s a beautiful thing. What should you do? Commentonthisarticleonlineat http://tampareia.com/?p=1573 If you have an iPad, the solution is a great little app called CaptureNotes. Capture- DonDeRosa Notes might look like just another notecific uses. As an investor, I find that this taking application, but it’s not. Yes, it lets kind of streamlining is a big part of myeRosa.com you do all the usual note-taking thingssuccess – it allows me to spend more time www.MobileRealEstateRockstar.com/Atlanta-REIA create notes, choose the type of paper on buying and selling properties, which iswww.Facebook.com/Don.DeRosa ink color, and doodle and scribble on awhere the money is. www.Twitter.com/DonDeRosa touch screen. So far, it’s pretty ordinary. Finally, CaptureNotes provides a pretty as one of the nation’s top 21 But there are three other things Capturpainless way to back up your new files, real estate investors in the Notes does that make it really useful for us simply by uploading them to Dropbox New York Times bestseller asreal estate investors. or iTunes. The Millionaire Real Estate Investor. Don, who is a full-time investor, First, it has some pretty sophisticated bells Let me say something here about complete investing system on a mobileoffer his and whistles. You can add photographs up your files. If you aren’t already baplatform. Don teaches investors how to andrecord audio while you’re taking noting up, please start! I’ve learned the Make More andWork Less by being more (say, in a seminar, or while you’re insway that it’s not a matter of IF your com-icient, productive and competitive, ing a house). And then you can draw or puter is going to crash. It’s a matter ofveraging mobile technology and apps write on the picture. The app also usesWHEN. And it’s a pretty safe bet that mobile devices.hone, Android and other searchable, customizable, color-coded flags it’ll go dead at the worst possible time. Keep up to date with our latest videos by subscribing to ourYouTube Channel www.Y ouTube.com/TampaREIA © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publihttp://TampaREIA.com 5 Tampa Real Estate Investors Alliance •FEB 2013 TampaREIa’smIssIonis to help insure our members’real estate success by providing extremely affordable, high quality, relevant real estate investing information and education, as well as frequent, fun and rewarding real estate networking opportunities. Our goal is to be the premier educational and networking organization for real estate professionals in theTampa Bay area. Tampa REIA, LLC http://TampaREIA.com 405 S. Dale Mabry Hwy Suite 114 http://www.Facebook.com/TampaREIA Tampa, FL 33609 http://www.Twitter.com/TampaREIA P: 813-358-8050 http://www.YouTube.com/TampaREIA F: 813-200-1330 E: Admin@TampaREIA.com http://Meetup.com/TampaREIA Dustin Griffin Christine Griffin Larry Harbolt ExecutiveDirector AssistantDirector Larry’sWeeklyREIMeetup P: 813-358-8050 P: 813-358-8050 P: 727-420-4810 F: 813-200-1330 F: 813-200-1330 E: firstname.lastname@example.org E: email@example.com E: firstname.lastname@example.org Matt & Courtney Larsen LeadersofRealEstateInvestors'HappyHour P: 813-546-5716 E: email@example.com LEGAL DISCLAIMER: Tampa REIA, LLC promotes practical knowledge of real estate investment though education, discussi▯on and networking. The information, views and opinions expressed in the publication do not necessarily reflect the views, policies and opinions of Tampa REIA, LLC or any of its members and sponsors, nor does mention of certain trade names, products, services, individuals or organizations imply endorsement by Tampa REIA, LLC or its members or sponsors. The information presented in this publication is made available for informational purposes only and is not to be construed as financial or legal advice which should only be obtained through a competent attorney, accountant or other qualified professional advisor. Tampa REIA, LLC does not pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. Tampa REIA, LLC recommends you perform your own due diligence and seek appropriate legal, accounting, or other professional advice before making any investment. Tampa REIA, LLC disclaims any and all liability for any actions or inactions taken by readers of this informational material or as a result of communications from or to its officers, directors, employees, contractors, partners, members, sponsors and affiliates. Keep up to date with our latest opportunities by joining us on Facebook www.Facebook.com/TampaREIA © 2013TampaREEA,LLC.AllllRRigighhttssRRinttnnoomititwitithwrrititttmisionnfmppuubblilsishheer.r. htp::TmppaREA.com 6 Tampa Real Estate Investors Alliance FEB 2013 fasTTrack To self-DirecTeD ira invesTing Learn How to Be a Blue Collar Genius! Jim Hitt, CEO of American IRA, LLC Blue Collar Genius Defined 2. Believing or setting limitations. If you followed my point here, then you A Blue Collar Genius is all of us who know that the questions I showed here have mastered our craft with hard 3. Accepting the status quo. had nothing to do with ‘cousins’ but work, diligence, taking action, creating rather were to illustrate my point that experience, making mistakes, and most 4. A lack of awareness of a subject you you should not accept the final verdict importantly never giving up! want to master. until you are comfortable. Once you get the answers three or four times with That’s a blue collar genius by my 5. Lack of exposure. Learn what you do consistency, then you can assume that definition. How many times have you not know. it’s probably correct. How many times said I’m smarter than he is, but he’s have you gone to an attorney and one driving the big Cadillac and you’re 6. Not enough research, training, and/ attorney says one thing, and another driving the little economy car? How or education. attorney says something else? One CPA could that guy ever make any money? says one thing and another CPA says 7. Accepting the first answer. Learn to something else. Perspiration, Inspiration, and Blue ask questions to the fifth level. Collar Genius’ How are you going to make an informed Thomas Edison said “Genius is 90% Top Real Estate IRA Investors Ask decision until you can get a consensus? perspiration and 10% inspiration”. Questions to the Fifth Level Someday you just have to sit down and 1. What is your business relationship? say “It’s a business decision and I’m TheTop Real Estate IRA Investors Do you own property and businesses going to make it.” Know Lack of Knowledge = Fear together? How many people do you know that For more information, or to explore your have been to every seminar, they know 2. Are you married to your cousin? options, call American IRA today at more about real estate IRA investing 866-7500-IRA (472). We look forward than anybody you’ve ever talked to, and 3. Have you adopted your cousin? You to working with you. when you ask them “how many deals cannot do loans to your children, have you done?”, they say “Well, I’m your wife or your cousin. I said that Commentonthisarticleonlineat still working on my first deal.” You ask, on purpose, by the way. http://tampareia.com/?p=1577 “How long have you been a member of the group?” You’re not shocked when 4. Is the cousin married to your son or they respond, “About eight or nine daughter? JimHitt years, but I’m looking.” 800-750-0472 5. Is your cousin your guardian of an JimHitt@AmericanIRA.com Knowledge is wonderful, but you have IRA beneficiary? www.AmericanIRA.com to actually use it! 6. Is your cousin an attorney, CPA www.Facebook.com/AmericanIRA Mistakes theTop Real Estate IRA or financial planner who provides www.Twitter.com/IRAExpert Investors Avoid services to your self-directed IRA and Jim Hitt is the Chief Executive 1. You listen to the wrong people, has or does receive compensation? Officer of American IRA, LLC starting with your family and close and has been committed to all friends. Familiarity breeds contempt If a realtor says it’s a great area, go out there aspects of investing for more or lack of faith. Your family or at 6:00 a.m. and find out. Check the crime than 30 years, using selfdirected IRAs for his friends have a different perception statistics. Now you’re moving forward. own investments since 1982. Jim’s forte is the of you because they fail to see you You will be a blue collar genius. It’s simplefferings, mortgage lending, businesses, jointate ventures, partnerships and limited liability for what you have become and when you know more than other folks you companies using creative techniques. remember you from your past. have an edge and are an expert. © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publisher. http://TampaREIA.com 7 Tampa Real Estate Investors AFEB 2013• real esTaTe raW Getting Started in Multifamily Part 1 of a 5 Part Series Bill Ham ave you ever thought about get- ting into the multifamily busi- H ness? It’s not easy and it’s not I can show you how! I created Real Estatees Raw to pull back the curtain on the com- mercial multifamily business. I have sur- vived the down turn of the economy and quite frankly I don’t want to go through that again. Do you?! between 9am-5pm Monday through Fri- How many real estate seminars have youmost sellers are available and you will sat through to only find that it was one big too. SALES PITCH! Starting a business armed only with sales pitches is never a good thing. that this may seem like a lot of In this 5 part series I will be teaching youmeone who has a family and a job the “real side” of the real estate business.y not have a ton of time dur- ing the work week to dedicate to your new That is one of the first lessons that most is “the closing table doesn’t care…0 people get wrong when starting out in realthere or you don’t”. The world is estate. Let me clarify this for you.ll of people who wanted to be success- ful… but just couldn’t make it. That is realES An investor is someone who is sittingate and this is Real Estate Raw! around with cash that they need to get a LIVEANSWERINGSERVICE to buy real estate with…then you are anhat I will keep it REAL!s the truth + Voicemail investor. If you are trying to create wealth + Virtual Faxing in real estate (not spend it) then you willxt 4 sections I will be teaching need to raise money and possibly qualifyat to fill those 15 hours a week4-7 Live Operators for some loans…you are not an investor,such as how to get deals funded Online Management you are a real estate entrepreneur.ith creative financing, making creative I make this distinction because most peopleoblems.ing wealth by solving Only get started in the real estate business with the wrong mindset and that leads to earlyonthisarticleonlineat $30 frustration. If you are not already wealthympareia.com/?p=1592 per month and looking to put cash into a property for a return, then as an entrepreneur you will be building a real estate business.BillHam Now that we have that clear, you need to18-0993 877-774-1717 be prepared for all that being an entrepre-enixResGroup.com Be sure to ask for the neur includes. This will mean hard work,w.LinkedIn.com/in/BillHam1 Tampa REIA discount. work that you won’t always get paid for. BillHam has been in real estate forisit us on the web at You will need to create about 10-15 hours of nearly 400 units in MacoQualityAnsweringService.com/ a week to begin with. Keep in mind that using creative and seller financing.TampaREIA the majority of this time will need to be © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permissiohttp://TampaREIA.com Tampa Real Estate Investors AllianceFEB 2013 foreclosUres gone WilD Short Sales Are Sailing By Kimberlee Frank any Investors and Realtors never got that paperwork.” However, I even though they fully disclosed to Wells avoid short sales like the don’t like the fact that they are trackingFargo their intention to buy, resell and/or M plague. They are definitely our information. Nationstar has taken fix the property, if they used my paper- missing the boat! My business special- the collection of Buyer’s information to awork. Many short sales were not approved izes primarily in short sales and I have whole new level. They require all Buyers at that time and many Investors had no seen an increase in the number of ap- to fill out a loan application even thoughidea WHY? Some of the lenders frown on provals we are getting. The time line forthey most likely will not be using Nation-the fact that Investors are purchasing the a short sale varies from 90 to 120 days star as a lender. This application has beenroperty and would rather sell the house if you submit the lender a “complete” mandatory and this has not been waived to a homeowner. short sale package. Since short sales areon any of my files. If you are a Buyer on dominating the market, the Lenders are any property, you are required to provide You would think that the lenders, since creating more streamlined processes to your name, address, telephone number, they are funded by Investors, would un- conduct smoother short sales. If you do DOB, SS#, assets, employment history derstand how we Investors work. We short sales, then I am quite sure you havand more. This is regardless if you are don’t buy properties at full value, as we heard of the online system called “Equa- purchasing for investment or personal use are not going to live in the home. This is tor.” Equator allows all of the short saland if you are getting a mortgage or pay- a business and we can’t make the Seller’s paperwork to be processed electronically ing cash. problem our problem by paying full value. through one common venue, versus tra- It is the Investors, like us, that are helping ditional and random faxes and emails. I believe that the lenders are collecting the lenders get money and not go under. Having a file processed online avoids thedata against all Buyers and will soon share common objection from the short sale with each other how many deals each Now is the time to purchase short sales and lender of “We didn’t receive the docu- Buyer has purchased. I had one student if you haven’t started you have 10 years to ments.” Effective January 1, 2013, the inform me that once he purchased over 10 ride the wave, so do it now! Align yourself newest lender that has started to use properties from Bank of America, he was with a good Mentor and take flight just Equator is Chase. The following lenders no longer allowed to purchase any more like many Investors around the world. and servicers are presently using Equa- in his name, his wife’s name or company tor: 1) Bank of America, 2) Chase, 3) name. Therefore in the future, when all Happy Sailing! Wells Fargo, 4) GMAC, 5) Nationstar, lenders work as a team, they will share all 6) ASC, 7) Carrington Mortgage, and 8) of this information and limit the amount ofommentonthisarticleonlineat Homeward Residential Services. deals that an Investor can purchase. Wellshttp://tampareia.com/?p=1582 Fargo started using a system called Core- The Equator System assigns applicable Logic approximately 2 years ago which al- tasks to each party (Agent, Negotiator, lows them to simultaneously check to see KimberleeFrank Closer, etc) including a deadline in whicwho was applying for a mortgage at the 407-888-3255 to complete each task. I like the fact thsame time they were conducting a short the lenders can no longer say “Oh, we sale. This caused Investors a hardship Kimberlee@ForeclosuresGoneWild.com www.ForeclosuresGoneWild.com www.Facebook.com/ForeclosuresGoneWild Join us for www.Linkedin.com/in/KimberleeFrank LATE NITE NETWORKING www.Twitter.com/KimberleeFrank at the Kimberlee Frank is a Master Meeting-After-the-Meeting Negotiator who has closed over 600 deals since 1998. She is a We meet atWhiskey Joe’s Bar & Grill, Mentor, Trainer, Author and Real located at 7720West Courtney Campbell and Realtors how to creatively purchase and Causeway inTampa, right after our sell short sales with her Step-by-Step System. Tampa REIA Main Meeting She has helped Investors and Realtors earn http://www.whiskeyjoestampa.com hundreds of thousands of dollars. © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publisher. http://TampaREIA.com 9 Tampa Real Estate Investors Alliance FEB 2013 MarkeTing Magic Tricks Pre-Screening Sellers For Your Real Estate Investing Business – Part 2 By Kathy Kennebrook, The Marketing Magic Lady y remembering just a few basics, Okay, so how are you, the Real Estate chunk of that equity for your profit. you, as a Real Estate Investor, can Investor, going to identify a motivated B quickly determine whether or not seller? First of all, don’t be afraid to aIf there is very little equity in the prop- a seller is motivated to sell their prop- questions. This is a basic truth in the reerty, you are much less likely to be able erty. First of all, a motivated seller willestate investing business. The more will- to create a good deal unless the property ask questions like “how soon can you ing a seller is to answer whatever ques- owner is simply willing to deed you the buy my house?” or “How can you help tions you ask, the more motivated they property for the balance of the mortgage me get out of this situation?” or “How are. Never be afraid to ask “Is that the and walk away. As a seasoned Real Es- soon can you get here?” An experienced least you would take?” You might be re- tate Investor, I can personally tell you Real Estate Investor knows these are re- ally surprised at the answer to this ques-this absolutely happens. So don’t be ally good questions for a seller to ask. tion, especially if you are dealing with aafraid to ask the question “Are you will- motivated seller. ing to sell for what you owe?” If they say There are two types of houses we are go- yes, you are dealing with a motivated ing to buy, either pretty houses or ugly For example, I recently worked with seller who is likely to deed you the prop- houses and there are motivated sellers in a seller who was asking $205,000 for erty for the balance of their mortgage, both of these categories. When you are a property in good condition worth which not only will lead to a good profit marketing to sellers, there are certain $275,000. This seller was already mo- for you, but you don’t have to worry types of sellers who are much more likely tivated, but I ended up paying only about where the money is coming from to have a house they need to sell. $180,000 for this property simply be- to fund your deal. cause she asked if they would accept a For example, I personally like working lower price. So be willing to ask ques- Another truth is that the uglier the with out of state owners (folks who own tions and know that the more willing a house, the more motivated the seller is a property where you live but don’t live seller is to answer them, the better deal likely to be. If you aren’t getting your there full time), heirs, divorces, vacant you will make. This is going to be very offers accepted on ugly houses that you houses, estate and probate properties, crucial to the success of your real estatecan quickly wholesale, you aren’t target- military transfers and pre-foreclosures. investing business and the amount of ing the right kind of junker properties. These sellers are much more likely to profit you make on your deals. Ask any Real Estate Investor who has have a house they need to sell “right been in the business for awhile and they now” and that’s the kind of seller you Another basic truth is that the more will tell you there is a fortune to be made want to work with. As a Real Estate In- equity there is in a property, the bet- in ugly houses. The more difficult it is vestor, you may also run into landlords ter a deal you are likely to make, espe- to find this type of seller, the better deal who are fed up with tenants ruining cially if the house needs repairs. Usuallyyou are going to make. their properties over and over. These if there is a lot of equity and the sellers are all good sources of motivated sellers. have owned the home for a long time or Another situation that arises fairly often Most of these sellers are folks who don’t if they have just inherited it, the more in today’s market and creates motivated live in these properties. likely they are to let you have a large sellers is a simple one for you to spot. If a seller is behind on payments, this is definitely going to be a motivated seller. If a motivated seller is behind on pay- Keep up to date with ments and they have a lot of equity, this is an opportunity for you to make a re- our latest opportunities by ally good deal. You as a Real Estate In- joining us on Facebook at vestor just have to learn to use a script to ask the right questions to determine if a www.Facebook.com/TampaREIA seller is motivated and what kind of deal you are going to make with them. It’s © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publisher. http://TampaREIA.com 10 Tampa Real Estate Investors Alliance FEB 2013 not magic; it just takes a little negotiation TampaREIA and a few questions to pre-screen sellers KathyKennebrook MemberBenefits and create some really good deals. 941-792-5390 •TampaREIA.comWebsite, Blog and Member Just remember this, the seller is either KPaddler@ATT.net Only Area www.MarketingMagicLady.com • Affordable, High Quality Educational in or they are out, don’t waste your time Workshops & Seminars chasing dead deals. If you follow this sim- www.Facebook.com/Kathy.Kennebrook • Fun, Frequent Networking Opportunities ple rule, you will make a lot of money in Kathy Kennebrook is a speaker, your real estate investing business. author and has been actively •Weekly Special Interest Groups Meet investing in real estate since 1999,ound Town Kathy currently resides in Bradenton,nch & Learn Subgroup Meetings For more information on pre-screening FL and is known as the Marketing •Wine & Dine Subgroup Dinner Meetings sellers, locating motivated sellers and buy- Magic Lady because she is the country’s ers and exit strategies, visit Kathy Kenn- leading real estate marketing expert on findinga REIA Main Monthly Meeting & ebrook’s website at www.marketingmagi- motivated sellers using direct mail. Vendor Tradeshow • Learn From Home on Our Monthly clady.com. Webcast Series • Members CanWatchWebcast Replays Commentonthisarticleonlineat 24/7/365 on TampaREIA.com http://tampareia.com/?p=1580 •Tampa REIA Subchapter Meetings • Community Outreach Programs • Haves &Wants Speed Marketing Session and Weekly Meeting • MonthlyTampa REIA“The Profit”Interactive KeepyourTampaREIAMembershipcurrentand eNewsletter enjoybigdiscountsfromthesesuppliersand •WeeklyTampa REIA Email Announcements, Articles & News manyothersintheCommunityBuyingGroup. • Volunteer Opportunities • Member Discounts onWorkshops • Member Discounts from Local & National Vendors • And much, much more! TampaREIA MemberDiscounts • Lowe’s– Save up to 7% to22% •SherwinWilliams Paint – Save 30% to 40% • SherwinWilliam Flooring – Save on Carpet,Vinyl, Delivery and Installation • Sears Commercial – Save 4%-15% on all Appliances • Nu-Set– Save on Locksets, door hardware, security & lock boxes • Build-A-Sign– Save 15% on Signs, Banners, and Magnetics and other products and get Free Delivery on all orders • Andmuch,muchmore! JoinTampaREIAToday! http://TampaREIA.com/Membership Become a Member ofTampa REIA for as little as $100/year. Businesses can join for as little as $150/year. See our For more information, see Membership Application in this issue ofThe Profit or visit... http://Benefits.TampaREIA.com http://TampaREIA.com/Membership © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from publisher. http://TampaREIA.com 11 American IRA Wants to be a Value Added Service to You or Your Business! PWe do business the old faPhWe provide joint webinars which allows you to At American IRA, we pick uphigh-light your services. Pof our clients’needs. serPiDVD format for you to promote your services./ PWe provide educational arPiWe have a resource page on our website to list and many other resources. your services on (certain restrictions apply). PWe have experienced IRA iPsWe are experienced in investing… available for speaking engawe understand your investment language. www.AmericanIRA.com Contact our office for any self-directed IRA questions you have or for a free consultation 1-866-7500-IRA(472) or firstname.lastname@example.org. Tampa Real Estate Investors AlliaFEB 2013 hoWTo Be areal esTaTe invesTor 2013: A Year of Achieving Your Goals with PAC By Russ Hiner very New Year’s Day, people • Graph your numbers once a week. coach, I can help you increase your ex- E complish in the following year.• Reflect on your graph—Are your ef-you to use the PAC principles.by helping Well, we are now 30 days into 2013, forts showing success? andIamsurethatyouhavereflectedon 1. Increase my profitability by using 2012. What resolutions did you follow - If not, change your strategy. my resources effectively and ef- to success? What results have you seen ficiently. Example: Limit events, from last year’s work? - If so, reflect on what you have tasks, and time with people, which done, and decide how to do it don’t align with my goals or which At the beginning of 2013, I reflected even better. can’t be satisfied. on what I considered success. Like many of you, I realized that I want For example, wanting to earn $200,000 2. Create systems, situations, and op- to improve my monetary, financial, a year is my goal/desired outcome. To portunities to meet and present to relationship and problem-solving skildo this, I will work backwards from the qualified customers. Goal: Meet because these lead us to success. Whagoal to the actual steps and processes new customers 20% of the time. is success in 2013? ACHIEVING needed to allow me to achieve the goals. MORE OF YOUR GOALS. These steps are the action plan. 3. Focus 100% on my emotional, physical, and mental focus. What We all know that success in our busi-ONLY when we know our goals can we can I do? ness means learning new tricks, outline the steps to get there. Only then can tips, and techniques. We must we follow the steps and make adjustments. 4. Debrief after events to increase my accumulate knowledge and power. expertise. We must achieve a superior capacity Accountability and to think and act effectively through Consistency Consistent effort, energy, time, use of presentations, best practices, and resources, and learning will allow me to strong strategies. We must have Do you make time for your success, or achieve my goals. It will help you too— a highly competitive advantage: a do you need support to be consistentlyif you apply PAC. platinum value. But how do we accountable to your goals, your plan, strengthen the skills that we and yourself? With PAC and my assistance, you can MUST have? eliminate sabotaging behaviors and be- This is where I come in. I can coach ycome accountable. Being accountable The ONLY way to achieve this is with your plan, accountability, and cowill lead to success which will give you through what I call PAC: Planning, sistency: PAC. the confidence to take responsibility for Accountability, and Consistency. your greatness. Confidence is liberating. Planning for 2013—these are examples of actiontwork. With renewed passion, 2013 canur steps that, as your coach, I can help you Planning means success. Planning to create, plan, and execute. As your continued on page 16 means that you will be prepared to react logically. You will be able to carefully Join us at the consider the market, environment, re- lationships, and finances. Planning sets you up for control of your own success. SARASOTA REIA WEEKLY MEETING EveryWednesday at noon Because I’ve been in this business for so attheOrientalBuffet,4458BeeRidgeRd,Sarasota,FL long, one of the many things I can tell you is an easy way to plan-- measure what you are doing. Here is how: SARASOTAREIA .COM © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission from pubhttp://TampaREIA.com3 Tampa Real Estate Investors AlFEB 2013 pearls of WisDoM The Best Deals To Do in Real Estate in 2013 & Beyond! P –art 2 By Tony Pearl elcome back! If you read of $1,550 & they’re current. The housewhat just happened? And why would Part One of this article,needs little to no repair & is in a greatNT to be OUT of the deal W know that we covered the neighborhood where people want to live.r that? other different types of popular reThe seller just wants to walk & realizes tate deals that most people do, andthat there is NO money to be made onood question. Let’s recap, shall we? biggest problems with them these dathis deal, obviously. Then we talked about how advant- You found & negotiated a deal on a geous it is to do the new type of dSo, at a glance, it looks like this:ouse with little to no equity that no Wholesaling Pretty Houses! ARV:$250k seller’s problem & they love you for it. But we still have a few important things$260k, PAYMENT: $1,550 P.I.T.IYou then went & found a tenant buyer to cover, so let’s pick up where we current. who couldn’t buy a house now if their left off… REPAIRS: $0 life depended on it (in most cases), and ASKING: $0, Just wants out (for whagave them an honest opportunity to Once you agree on the deal & terms with ever reason, e.g. job x-fer/eventually buy this beautiful house in a the seller, you get all the paperwork loss, divorce, etc.) beautiful neighborhood… even if their signed & closed at either a title compa- credit is terrible. ny or attorney’s office. No exceptions.ou SELL the house on a Lease Pur- You’ll want that legal backup in casease (aka ‘Rent to Own’) to a tena(NOTE: The worse their credit is, the seller conveniently forgets what theywho falls in love with the hothe more you should collect as a down - agreed to later. has at least $5,000 to put down as payment! ) Refundable Option Consideration, and So now you’ve got a deal under contracteasily afford the $1,550 monthlAfter that, the tenant-buyer should & all the paperwork signed. What now?yments (plus utilities, HOA, etc.just make the monthly mortgage pay- Simple. You get it ‘sold’ as an oppor -sly). ments, as rent. There are a few op- a decent chunk of money to put downYou arrange the closing at the titldirectly to the seller; 2. Pay directly (typically $5,000+/minimum), and 2.pany/attorney’s office (have the teto the mortgage company; 3. Pay to a Can afford the existing monthly mort-yer pay their fee), and collect y3rd-party payment/escrow company. I gage payments. check. highly suggest doing the 3rd, so every- one can be sure the payments are made For example, let’s say you have a houseDYOU’RE DONE!! You on time. There are several companies worth $250,000. The seller owes are OUT of the deal from this that will provide this service for you, $260,000, with monthly PITI payments point forward! for a nominal fee, ranging from $5 to t LarryHarbolt’sWeekly Join Us a RealEstateInvestorMeetup Hibachi Buffet Every monday at 7:00pm 7610 49th St N, Pinellas Park, FL © 2013Tampa REIA,LLC.All Rights Reserved.Reprint not permitted without written permission http://TampaREIA.com Tampa Real Estate Investors Alliance FEB 2013 $50/mo. Check around for more infor- for (at least) $5,000, pretty quickly, and mation on that. you don’t have to deal with the tenant- buyer or the seller ever again, if you So here’s the next big question: WHY don’t want to. In. Out. Paid. Done. would YOU, as the investor, want to be
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