When I started in real estate I had no idea how to get clients. So I started sending out post cards. Over the next 5 months I had no calls but I continued to send 200 a week out. One day a gentleman by the name of Larry called me.
He let me list a vacant lot in mesa. I listed my first property. I sold that property for nothing! I filled my agreement out wrong. I put in 3% instead of 6%, I had to pay the realtor. I sucked it up and didn’t make a dime on that deal.
Larry called me and wanted me to list his home for sale. This time I filled the paperwork out right! I sold that one and he was very happy with my service. I thought that was it for him.
A month later he called me and said he wanted to start investing. I sold him a home in phoenix and made great money (he did to).
He was a plumber by trade and was doing a pluming job in phoenix. He called me and said the owner wanted $70,000 for it and wondered if that was a good deal? I informed him I would need to look at it.
I went over and fell in love with it. I ask him if he would sell it to me and he did. He made a very good profit and so did I win win always. After buying I remodeled it and moved in it. The home was on Campbell/20th st before the real estate boom.
He bought a couple more from me. The moral of the story is I made over $200,000 on that one post card. That’s a great return!
Being patient and persistent in the real estate investment game will pay you big dividends in the end. Brett Young Valley Realty http://www.rooftopprofitmax.com/
Saturday, September 13, 2008
Listening to the right people
I talk to a lot of people and notice that some can tell you everything on how not to do things. Like real estate they all you all the ways things can’t be done. They mention all the problems other people they know have had. They kind of go on and on about what they think things are like.
My first question to them is how many real estate deals have they’ve done? I mean would you hire a doctor to help you out in court? Doing this for over 23 years and 400 properties I think my insight is very educated. I’m not saying it’s all candy canes and peppermint rivers, but it’s a great way to get wealthy.
When I do my research I don’t ask just anyone about the area’s I buy in. I ask Licensed Realtor’s, Property Mangers, Finance people, Contractors. I verify what they say buy actual sales in that area. Knowing all the in’s and out’s is very important in making money in this business.
When you search for information on anything make sure you talk to people that know about what your doing. Make sure they’re doing what your asking them about.
Information is very important and you should get it. But it is equally important where you get your information. Anthony Robbins taught me this and it’s been very good for me since I’ve applied it.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
My first question to them is how many real estate deals have they’ve done? I mean would you hire a doctor to help you out in court? Doing this for over 23 years and 400 properties I think my insight is very educated. I’m not saying it’s all candy canes and peppermint rivers, but it’s a great way to get wealthy.
When I do my research I don’t ask just anyone about the area’s I buy in. I ask Licensed Realtor’s, Property Mangers, Finance people, Contractors. I verify what they say buy actual sales in that area. Knowing all the in’s and out’s is very important in making money in this business.
When you search for information on anything make sure you talk to people that know about what your doing. Make sure they’re doing what your asking them about.
Information is very important and you should get it. But it is equally important where you get your information. Anthony Robbins taught me this and it’s been very good for me since I’ve applied it.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
What is a whole property? Part 3
Lets pick up on Question #5. Will they be there after closing? This is a very important question, because of the work that may be involved in the property. When your to this point you should have the rehab cost in hand. Our company has licensed contractors that have quotes in your hands before closing. We also monitor there progress and follow the whole process thru until completion.
We also follow it thru to selling or renting whatever you choose to do.
Question #6 If you can’t or do not want to sell, what is rent in the area? You always want to have a back up (if you are selling) plan in case you can’t sell. Knowing the rents is very important in your decision making. We deal with property managers in the areas we buy to know what the rates are. I think you can be more accurate rental rates with property mangers more than realtors. Also other options are to owner finance or lease option. Just consult an attorney or realtor to set these up properly.
Question #7 My company tries to find people that can finance these deals, I’ve been very challenged in today’s market of lender’s. We are currently setting up private mortgage source’s. I would advice you to have your financing in order. We can’t believe the changes in the rules and it’s almost daily. So making a few phone calls and knowing what type of financing will only make you more profitable with your investing. I always search out new source’s but with the lenders always changing the rules it’s very hard to predict what programs are around. I will tell you this we are always working to get more financing and better ways for our clients to get deals done.
Question #8 I sell a lot of properties in many areas. The only way I know it’s a great place to invest is I do it myself. Me and my wife own 17 homes in the mid west. I do what you do and keep doing it I have 2 places going as I write this newsletter. That’s why I understand what I’m doing because I actually do it.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
We also follow it thru to selling or renting whatever you choose to do.
Question #6 If you can’t or do not want to sell, what is rent in the area? You always want to have a back up (if you are selling) plan in case you can’t sell. Knowing the rents is very important in your decision making. We deal with property managers in the areas we buy to know what the rates are. I think you can be more accurate rental rates with property mangers more than realtors. Also other options are to owner finance or lease option. Just consult an attorney or realtor to set these up properly.
Question #7 My company tries to find people that can finance these deals, I’ve been very challenged in today’s market of lender’s. We are currently setting up private mortgage source’s. I would advice you to have your financing in order. We can’t believe the changes in the rules and it’s almost daily. So making a few phone calls and knowing what type of financing will only make you more profitable with your investing. I always search out new source’s but with the lenders always changing the rules it’s very hard to predict what programs are around. I will tell you this we are always working to get more financing and better ways for our clients to get deals done.
Question #8 I sell a lot of properties in many areas. The only way I know it’s a great place to invest is I do it myself. Me and my wife own 17 homes in the mid west. I do what you do and keep doing it I have 2 places going as I write this newsletter. That’s why I understand what I’m doing because I actually do it.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
Ideas for profitable landlording
There are many good ways to get tenants in your vacant homes. I will going over some and I’m sure there are more that you could add to this list.
The first tip I’ll go over is the deposit. The deposit usually is 1 to 1½ months rent. Some renters have a hard time coming up with this plus the rent. I would consider breaking that payment up over 3 months. This allows you to get more renters and keep your units filled with paying tenants.
The second thing I do is always call your property manger about 1-2 times a month. This keeps you in touch with what’s going on with your properties. You can make better decisions on your properties by knowing what is going on with them.
The third idea I use id advertising. If you have a problem rental (all vacant ones are) then advertise it. I don’t expect or depend on my property management to do this. Most of the time they will have tenants in place but every once in a while you’ll need to do more. Example would be running ads in the paper with the property managements phone number. Always call them and alert them with what your doing. Craigslists is also a great place to advertise, it’s free too! If possible you may need to be a little cheaper than everyone else, and that would be temporary and get yours rented quicker.
The 4th Idea is If you have a one bedroom a weekly rate my be better. All that means is that the rent is paid weekly. It doesn’t mean that you only rent it for a week it just mean that’s how they pay. Rates run from $100-$135 a week. Some people budget there bills weekly and this works well for them and makes you more money. 52 weeks in a year give you an extra 4 weeks pay (4*12=48-52=4 weeks). We this type of renting a lot in Indiana.
The 5th Idea is to get a home warranty when you purchase the home. The inspection will give you a hard copy so that the warranty company cannot come back and say that the repair you need was pre existing. I just had a plumbing and roof problem taken care of thru my insurance in Indiana.
The 6th Idea is to keep great records on your rental properties. Your HUD 1 (closing statement) is a great starting point. You can put what you paid for it and the fees associated with the purchase. As you collect rent and pay bills you can update your data base or spreadsheet. This ls great for taxes and knowing your profit.
Brett Young Valley Realty http://www.rooftopprofitmax.com/
The first tip I’ll go over is the deposit. The deposit usually is 1 to 1½ months rent. Some renters have a hard time coming up with this plus the rent. I would consider breaking that payment up over 3 months. This allows you to get more renters and keep your units filled with paying tenants.
The second thing I do is always call your property manger about 1-2 times a month. This keeps you in touch with what’s going on with your properties. You can make better decisions on your properties by knowing what is going on with them.
The third idea I use id advertising. If you have a problem rental (all vacant ones are) then advertise it. I don’t expect or depend on my property management to do this. Most of the time they will have tenants in place but every once in a while you’ll need to do more. Example would be running ads in the paper with the property managements phone number. Always call them and alert them with what your doing. Craigslists is also a great place to advertise, it’s free too! If possible you may need to be a little cheaper than everyone else, and that would be temporary and get yours rented quicker.
The 4th Idea is If you have a one bedroom a weekly rate my be better. All that means is that the rent is paid weekly. It doesn’t mean that you only rent it for a week it just mean that’s how they pay. Rates run from $100-$135 a week. Some people budget there bills weekly and this works well for them and makes you more money. 52 weeks in a year give you an extra 4 weeks pay (4*12=48-52=4 weeks). We this type of renting a lot in Indiana.
The 5th Idea is to get a home warranty when you purchase the home. The inspection will give you a hard copy so that the warranty company cannot come back and say that the repair you need was pre existing. I just had a plumbing and roof problem taken care of thru my insurance in Indiana.
The 6th Idea is to keep great records on your rental properties. Your HUD 1 (closing statement) is a great starting point. You can put what you paid for it and the fees associated with the purchase. As you collect rent and pay bills you can update your data base or spreadsheet. This ls great for taxes and knowing your profit.
Brett Young Valley Realty http://www.rooftopprofitmax.com/
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