The Weird World Of Short Sales

If you are in the short sale game right now then you understand that lenders are playing hardball and it seems to be a nationwide challenge.

I recently took a 300K first down to 200K. Things were looking good! Then I had to deal with GMAC on the second. Shouldn’t be a problem, right?

Boy was I surprised when GMAC was not willing to do anything. After a long healthy conversation with the Loss Mitigation Supervisor I learned that GMAC will only accept a short sale that comes in at 95% of the market value.

Okay – you can stop laughing because this is not a joke. The supervisor AGREED with me that something today beats nothing at the foreclosure. He KNEW their policy was insane but his hands were tied.

What are my choices?

1) I could buy the note and finish the foreclosure. Tried that but the 1^st wasn’t willing even though they get the same net.

2) I can continue to negotiate hoping GMAC’s policies will change – they may.

3) I can hope GMAC sells the loan to another lender then start over.

The reality is this deal is likely dead and I know it. Luckily I have honest direct relationships with my sellers so I informed them and they want me to continue. Time will tell if I get it through.

Tip For The Day: Short sales are a numbers game – do not get emotionally involved. Some will work, some won’t. Just make sure you can quickly prepare short sale packages. REPP does the job.

Now go buy a house!

Gerald Romine

PS – Things are changing at www.kickassrealestate.com. Check it out.

What Credit Card Companies Don't Want You to Know

I just read an article that I had to share with the Romine Faithful. Wow, talk about a powerful clause that could really hurt you!

Here it is...

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What Credit Card Companies Don't Want You to Know

by David Bach

Of all the games the credit card companies play that end up costing you thousands of dollars (late fees, over-limit fees, transfer fees, and so on), it's always been the interest rate game that hurt the most -- until now.

There's a new, completely legal game they're playing, and it can literally wipe you out financially if you're not careful.

The Universal Default Clause

If you own a credit card, you know by now that if you're late with a payment the credit card company will charge you a late fee in addition to raising your interest rate. But did you know that they can raise your interest rate if you've made a late payment on any of your other cards, including those issued by other companies?

Not only that, but your interest rates can skyrocket to 30 percent or more if you make a late payment on your car loan, mortgage, or even your phone bill!

"How can that be legal?" you may ask. The answer is found in the fine print of your credit card agreement, and it's called a universal default clause. According to the Institute of Consumer Financial Education, currently almost 40 percent of credit card issuers apply this policy to their customers.

A Late Payment 'Trigger'

Generally, a universal default clause states that a creditor reserves the right to penalize you with an increased interest rate if you're late -- that is, in default -- of a payment to any other creditor. They justify this practice because, in theory, if you pay any of your creditors late, you pose a greater credit risk and are less likely to pay your debt.

Your creditors also have the right to routinely monitor your credit file. So a creditor with a universal default clause will be watching -- and waiting.

Let's say your Visa card has a universal default clause. Any late payment -- whether it's on your utility bill, home equity loan, or Macy's credit card -- acts as a "default trigger" allowing the bank that issued the Visa card to double or even triple your interest rate overnight. Your all-important credit score will be hurt as well.

According to a study by the nonprofit advocacy and education group Consumer Action, the top three default triggers that cause your interest rates to spike are a decline in credit score, paying your mortgage late, and paying your car loan late.

Other Triggers to Worry About

Under the universal default clause, your interest rates can be increased for several other reasons, including exceeding your credit limit, bouncing a check, having too much debt, having too much credit, getting a new credit card, applying for a car loan, and applying for a mortgage loan.

How does this affect your financial future? Take a look at the numbers. Let's say you're an average American household, with $8,000 of credit card debt. Assuming you make no additional purchases on your card, you have a 9 percent interest rate, and you make the minimum monthly payment, it'll take you 218 months (18 years) to pay off your debt and you'll end up paying $3,334 in interest.

Now let's assume that for whatever reason you were late one month with your car payment. This late payment triggers the universal default clause with your credit card issuer, and now your penalty rate gets increased to 24 percent (the average default rate in 2005). It'll now take you 679 months (56 years) to pay off your credit card debt, and get this -- you'll pay $30,813 in interest.

Staying Ahead of the Clause

Here are six ways to protect yourself from interest rate hike triggers:

1. Stay away from credit cards with a universal default clause.

If you're looking to open a new credit card account, be sure to choose one without a universal default clause. This means you have to truly read the fine print. If you're confused by the fine print (as many are), call the credit card company and ask what specific circumstances will affect your interest rate.

I read recently that Capital One cards don't have a universal default clause (although you should double-check before applying), and Citi has dropped its universal default policy as well. In addition, sites like CardWeb.com, Bankrate.com, and LowerMyBills.com let you compare credit card offers, so visit them before you apply.

2. Know your current obligations.

Check your current statements and credit card agreements to find out your current interest rates, and to identify which cards have a universal default clause that you weren't aware of until now. Again, if you're uncertain after reading the fine print, call your credit card company.

Consider transferring your balance from a card that has the universal default clause to one of your cards that doesn't. But don't rush to cancel the card altogether, because it could have a negative effect on your credit score.

3. Run your credit report.

Not only do you need to know exactly what your current interest rates are, you also need to know exactly what's on your credit report. Visit Freecreditreport.com or myFICO to order your credit report and credit score today.

4. Pay your bills on time.

According to the American Bankers Association, late payments for most types of consumer loans were on the rise during the third quarter of 2006. If you're having trouble with your credit card payments, at the very least strive to make your minimum payment on time.

5. Be proactive -- call your lender for relief.

If you're struggling to make monthly payments on your other bills, like utilities, car payments, or mortgage payments, call your lender to see what options they might be able to offer you. They might be able to adjust your monthly payments so that they're more manageable.

Your goal is to protect your credit report and credit score with a consistent record of on-time payments.

6. Fight back for your money -- write your local legislator.

Right now, there are amendments to the Truth in Lending Act that, if passed, would prohibit many unfair practices within the credit card industry -- including the universal default clause.

As a consumer, you can take action by letting Congress know that you want laws to protect your rights. For more information on how you can be heard, visit Consumer Action's web site.

As I write this, Congress is holding hearings to discuss the abusive and deceptive practices of the credit card industry. Read more about it here.

A Good Night's Sleep

Obviously, what you don't know really can hurt you. Check today and see if you have the universal default clause on your credit cards.

If you do, be careful to stay on top of your debt. Better yet, find a credit card that doesn't have the clause -- you'll sleep better at night.

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Now go buy a house!

Gerald Romine
www.KickAssRealEstate.com

PS - It's much better to learn how to buy wholesale using the greatest flipping system for real estate than to get yourself into financial trouble by spending money you don't have.

Killer News For Real Estate Investors

Last Friday marked a huge turning day for real estate investors nationwide and is very bad news for first time home buyers, real estate agents, investors(yes, even us because we sell to other investors) builders, loan officers, and just about everyone in the residential real estate and mortgage business.

What Happened That Rocked The Real Estate Industry?

Foreclosure rates have been climbing and the valuations of lenders and especially secondary lenders has taken a beating. Many of the companies specializing in 100% sub prime loans that have been extremely popular over the last 5 plus years are struggling with many going out of business.

And when you build your business on shaky ground with buyers that can’t qualify for squat it is only a matter of time before that house of cards comes tumbling down. So it is no surprise that the lending world is changing by leaps and bounds.

In plain English this means we’re back to buyers having to qualify for houses but not having the resources like 100% down financing to buy them.

We’re talking about buyers needing to have much better credit scores and much better down payments.

Combine that with the weak market and foreclosure boom and you have The Perfect Real Estate Buying Bonanza waiting to happen!

To Capitalize On This Bonanza You Must Have These Techniques In Your Arsenal Right Now!

1) Wholesaling and Subject To Buying
2) Short Sales on Pre Foreclosures

If you are not utilizing these systems you are losing money! If you make one mistake you run the risk of not only making somebody else’s problem your own but losing a lot of greenbacks. Dough you could have kept had you only known.

For wholesaling and buying subject to I conducted a boot camp that was recorded live and is available for you to take advantage of if you are wise and want to take advantage of the coming Perfect Buying Bonanza.

The truth is these CD’s are unedited and raw. Every question, every suggestion, every single reason on what to do and how to do it is covered in detail. All the forms you need, it’s all there waiting for you.

My guess is that your business is sliding backward and you are giving up huge profits and opportunities. Here’s where to go to learn wholesale buying and subject to.

The second part of the Perfect Buying Bonanza is in full swing right now. Preforeclosures and short sales are hot and getting hotter. Upside down houses are everywhere. People are going under and the opportunity to short houses has never been higher. My system completely automates the short sale process and working with the lender to get deals accepted. Period. Either you see the need to have this system or you don’t. It’s so obvious I won’t even go on.

With the information I provide you will have all of the tools you need to jump in the middle of this storm and Kick Your Business Into High Gear Like Never Before!

Now go buy a house!

Gerald Romine
www.KickAssRealEstate.com

PS - It's time to GET IN the real estate game in a big way!

Top 10 Tax Deductions For Real Estate Investors

Today I’m going to reveal the top 10 tax deductions for real estate investors!

Now that the markets have changed many of the flippers and wholesale guys are finding tough times in the market. Before one could put any property under contract then sell it quickly for huge profits. Now the real investors are back and buying with better spreads. Sure, there are plenty of new investors out there buying foolishly, but not in the masses like before.
True investing invloves holding real estate and building wealth. If all you ever do is flip properties then you are only as good as your next deal. Think about it!

Top 10 Tax Deductions For Real Estate Investors

1. Interest
Interest is often the largest deductible for property owners. Examples include.

Mortgage interest payments on your loans for acquiring or improving rental property
Interest on credit cards for goods and services purchased for rental activity

2. Depreciation
Depending on whether you have residential or commercial property, the value of your rental property can be depreciated over a number of years and deducted from the total taxable income. Residential property is depreciated over 27.5 years.

3. Insurance
Insurance premium payments are also a deduction; including fire, theft, flood, landlord liability and employee's health/worker's compensation policies.

4. Employees/Independent Contractors
Wages for any work done on the property by your employees (property manager) or independent contractors (plumber) can be deducted as a business expense.

5. Repairs
Some repair expenses are deductible (if they are deemed ordinary, necessary and within reason) if they are incurred during the tax year you are filing for.

6. Home Office
You can deduct home office expenses provided they meet certain minimal requirements. This deduction applies to space used for office work as well as other workspaces you use to operate your rental business.

7. Local Travel
You are entitled to a tax deduction on the expenses you incur while traveling for work related to your rental activity. Traveling expenses that are related to rental activity may include driving to a property to show a unit to a prospective tenant or driving to a hardware store to pick up supplies for a maintenance task.

8. Long Distance Travel
Airfare, lodging, meals and other expenses can be deductions if you travel overnight.

9. Casualty & Theft Loss
Rental property that is damaged or destroyed by a sudden accident (such as flood or fire) may be counted as a tax deduction as well. All or part of the damage (casualty loss) may be deducted depending on how much of the property was damaged and your insurance policy.

10. Legal & Professional Services
Fees paid to accountants, attorneys, property management firms, bankers/investment advisors, or any other professional service used to operate your rental property can also be included in your deductions.

Goto www.kickasswholesaling.com to learn how to buy properties the right way. Whether you are flippingproperties, buying subject to or building a portfolio you make money when you buy. This is your ultimate real estate buying system. Now go buy a house!

Gerald Romine
www.KickAssRealEstate.com

The 7 Secrets To Keep You Buying Right In Today's Changing Market

When evaluating property first determine the ARV(After Repaired Value).

Here are 7 Secrets to keep real estate investors buying right:

1) Use comps that are less than 6 months old
2) Keep the square footage within 10%.
3) Keep the year built to within 5 years
4) Be on the lookout for falling values
5) Check MLS – Properties currently listed could be offered at less than yesterday’s sold statistics
6) Location – If a SFR house fronts a busy street or is close to a large commercial property/apartment/etc deduct 10% of it’s value
7) Compare to properties in the same subdivision is possible. After that book/map or a radius of .5 mile is best.

Gerald Rominewww.KickAssRealEstate.com

PS – The secret to real estate investing success lies in the system you use to buy properties right. Check out the best buying system in existence today because once you put it in place you’ll never imagine your life without it again.

The Computer Is A Real Estate Investors Best Friend

These days real estate investors spend a lot of time on the computer. Websites, MLS, comp research, tax offices, and the list goes on. I’m an impatient guy and my computer was dragging along so I needed to do some good old computer maintenance.

Check out http://www.techsupportalert.com/best_46_free_utilities.htm and if your computer is running slow consider #26 to clean your registry. And if you don’t know what I’m talking about you definitely need #26. There’s a lot more there plus Gizmo gives awesome descriptions.

Happy Investing.

Gerald Romine

PS – And when you need speed with your real estate analysis and paperwork Real Estate Profit Pro makes it a breeze!

Why You Should Always Invest Based On The Numbers

I received a call from a seller that desperately wanted to sell her investment house . This deal illustrates a great point of why you want to invest in the numbers based on a system like Kick Ass Wholesaling (which covers buying for cash and subject to).

Last January she bought the house for 400K and it included a tenant with PREPAID rent and an Option to buy the property. With great appreciation expected to continue she was not too worried about the negative cash flow even though her payments were over $2700 per month. Plus, she was getting prepaid rent at the closing when she bought the property!

Shortly after closing the tenant moved out. Because of the prepaid rent and option all she could do was wait for the lease and option to expire. In the meantime the tenant moved in and out of the house several times. Her hands were tied. In the meantime the market tanked.

Fast forward to today and the house just appraised for 415K... unfortunatelythe appraisal is worthless because the average sale price is 386K in the subdivision. Market value for leasing the property is under 1500 per month. She has great credit that she wants to protect. Her options are few.

Below is the actual lead sheet I received for your review(double click lead sheet to view a readable copy).



Today’s lesson is… invest based on today's numbers and not the future values and appreciation.

This seller has very few options but if she had followed fundamental investing like those in http://www.kickasswholesaling.com/ she would have never purchased this property. As it sits she can expect at least a 50K loss, trashed credit, or carrying the negative cash flow until appreciation covers her poor investing decision.

Hopefully you can learn from her mistakes.

Now go buy a house!

Gerald Romine

HowTo Get More Done In Less Time To Grow Your Real Estate Investing Business

l. Instead of rushing to the office first thing in the morning, keep your computer off and visit your local Starbucks(I drink tea) or living room and spend time working ON your business. Keeping your computer off will help you get non-computer things done (ex. Studying, reading, market analysis, etc).

2. Stop working at a specific time each day and go somewhere where you'll be undisturbed. It is important to take time off from work everyday. My time where I recharge is in the gym with my workout partner. The exercise is great but we both enjoy being able to shut down our brain and ‘turn off’ the work mode.

3. Stop checking your email every 15 minutes. You’ll make more money checking it two times a day on a schedule then you will wasting hours to see what junk has just arrived. I use Outlook and changed the setting to OFFLINE which allows me to send/receive mail only when I tell outlook to do so. Before doing this I was distracted every time an email came in and flashed on my screen.

The best way to accomplish your goals and IMPORTANT TASKS is to make the decision that you're going to work on your business each and everyday and then schedule that time and keep your commitment to the schedule.

Now go buy a house!

Gerald Romine
www.KickAssRealEstate.com

A Lesson In Arizona Landscaping

The smart way to get real estate investing work completed is by knowing what you want, getting several bids, and then paying when the work is completed. But sometimes a little knowledge can be useful.

In Arizona desert landscaping is popular because it is low maintenance and let’s face it not a lot of plants thrive in 115 degrees with direct sunlight. And hey, we have green rocks, red rocks and gold rocks so there’s lots of variety!

How much rock do you need? I prefer to use ½ or 1 inch screened rock and 1 ton covers approximately 120 square feet at 2 inches thick. Assuming your front yard is 30 feet by 50 feet you’ll need 12.5 tons.

What does the rock cost? Typically you can get a good variety of rock for about $30 per ton delivered. So 12.5 tons of rock will cost you $375. The rock company will bring the rock, dump it wherever you wish and then it is your job to have it spread as desired. This can be done in a few hours with some laborers.

When wholesaling or rehabbing houses it is important to know your cost of repairs and improvements. If you are using my systems at www.kickasswholesaling.com or www.realestateprofitpro.com you know how easy it is when you have the right tools.

Gerald Romine
www.KickAssRealEstate.com

PS – PHOENIX INVESTORS – I need to buy a rehab property ASAP to keep my crew busy. If you have any deals send them my way TODAY!

Do You Know When To Use A Partner?

Many new investors are looking for a partner when what they really want is a friend... that is, someone to talk to. And, partnering up could be a monumental mistake.

The first question to ask yourself is why do you want a partner? Here are two valid reasons.

1. To Overcome our shortcomings including:
Knowledge
Money
Skills

2. To divide the workload or risk.

Unfortunately, most people ask somebody they like to partner up and on the surface it seems like a good idea, but is it? What does the other person bring to the table? Do they have something you don't?

If all they possess are the same or very similar skills and a smile then in all likelihood you don't need them and they don't need you. But, if you have the knowledge and time and they have the money then that's another story.

Before you partner up with anybody make a list of each person's strengths and weaknesses to ensure you compliment each other because two people that like each other and have the same skill sets are likely to have problems working together. Why? Because both people will want to do the same things, avoid the same tasks, and think they could do the other persons job better. But, two people with different skills will work together well because both people will be working on their strengths and their partner covers their weakness.

When you look at most people's real motivation for a partnership it often comes down to money, or lack of it. In these cases you would be much better off to find private financing on your own then to form a partnership with somebody that is broke.

In Kick Ass Wholesaling and Instant Real Estate Profit Pro we talk about obtaining private and have a simple system for getting it. You might want to review those sections before getting into a partnership you'll regret. And, if you do get into a partnership make sure you have a written agreement!

PS - I have a favor to ask. If you enjoy this tip please forward thisw blog it to a friend. We're trying to help as many real estate investors as possible and this is one of the few free resources available anywhere online. Thank You.

How to Increase the Sales Price of Your Home

It's here! The time has finally come to sell your house. You want to do everything you can to maximize your profit and sell as quickly as possible. Here are a few ideas to help you find a buyer and close the sale for the highest price possible.

1) Is your house ready to sell? Don't even think about putting your house on the market if there are still little things that need to be done. What seems "little" to you could be a deal-killer to your prospective buyer. One of the most important things you can do is prepare the outside. Most home shoppers are going to drive by and if they don't like what they see on the outside, you'll never get them to see the inside of the house.

2) Stage the inside of the house. Have you ever looked at a model home in a new subdivision and noticed the home had a cardboard TV, silk plants, towels, candles, shower curtains, potpourri, etc? The only reason they prepare or "stage" a model home this way is because it helps them sell houses. You need to "stage" your house too. If you are creative and resourceful you can do this for less than $500. A nice plus is that you get to keep it all anyway.

3) Magic in pricing. Modeling your pricing strategy like the auto industry is smart business. While the real difference between a $9,995 car and $10,000 car may only be $5, the difference in the mind of the consumer is HUGE. You'll never see a car dealer make this mistake. If you're selling a house for $243,000 that's not much of a difference than selling a house for $249,995.

4) Easy to show. People buy houses based on emotion. If your house is not easy to gain access to, your buyer is likely to fall in love with another house that they can visit quickly and easily. Whenever possible, have a lockbox on the house and make it easy for the buyer to get inside and see your beautiful home.

5) Attract the buyer with a flyer. You need two flyers, Make sure the buyer can pick up a flyer about your house when they walk through it or drive by. Imagine they are looking at 15 houses in one day then later that night they are going to make a decision to buy a house. After looking at 15 houses, the details become foggy, but if they have your flyer with pictures and details about the house it will jar their memory and increase the likelihood of a sale. Your second flyer is a financing flyer. It has great terms listed and details how they can own the house for "only $1299 per month." The goal of a financing flyer is to sell them on the concept of a low monthly payment and make them forget about the price.

Follow these tips and you'll be sure to sell your house for top dollar in the shortest time possible.

Don't Let This Happen To You!

Here’s a real big lesson to learn from that came to me as a seller lead through my website. This is real ugly and shows what can go wrong when you speculate.

I own a rental property with tenants, that have a lease with option to buy. I rented this house at the peak of our appreciation in Phoenix, now that prices have corrected I owe much more than the property is able to be sold for. Either my tenants will complete the option to buy, or they will leave and I will have to sell on the market, either way it looks like a short sale. What I perceive my problem to be in the near future is, I am not in any financial hardship, and do not reside in the property needing the short sale. I have heard both of these are requirements for a short sale. I cannot afford to keep up the payments if I have no tenants, waiting for appreciation to return, and I have a negative am loan that is digging me into a deeper hole. I cannot afford to refinance this loan, even with the rent income I wouldn't be able to afford the new payment. Please help me out of this situation.
Thank-you, Jeff

The problem is Jeff bought a rental but did not buy it based on the income. Then, when the market took a turn his problem was compounded with a lease option that gives him negative cash flow, a contractual obligation with a lease option to the buyer, and his option price could be lower than what he owes on the property.

Had Jeff followed a property buying system like that in Kick Ass Wholesaling he would not be in his current position! And while he has a few options on how to get out of this alive he would have been in a better position to invest on sound principles from the beginning.

It’s funny how some people complain about the cost of education or a real estate buying system like Real Estate Profit Pro where they can learn the right way to invest. If you were to ask Jeff I’m sure he’d tell you this is one expensive lesson from the school of hard knocks that he would have rather avoided.

Knowing When To Dump Your Rentals

Here’s a landlord tip that you should pay close attention to.

School districts control house prices in an area more than anything.

So if schools are failing in an area get out of the area quickly. It makes perfect sense but most people do not slow down long enough to think it through.

If you are flipping properties then this is not as important but still a factor. Make sure you use all of the guidelines for flipping found in Kick Ass Wholesaling.

Gerald

Why All Contractors Go Lame!

The rehabbing business is so much fun. Yea, right! But there are ways to deal with rehabbing that make it manageable.

Most importantly realize All Contractors & Handymen Go Lame!

Many times relationships with a contractor start great! The first job has high quality work and is completed for a great price. But as the contractor get’s busier he becomes less hungry for your business and the laws of supply and demand take over. Prices go up and often quality and service go down.

But when you are a real estate investor you realize all contractors go lame and this should come as no surprise. That’s why it is important that on EVERY project you get multiple bids.

How much can the bids very? I just received 15 bids for one project and the rates varied for $700 to $5510 for the exact same work! The only thing consistent about the bids is they were all over the price spectrum.

With the right tools real estate investing can be easy. That’s why I use the principles and tools in Kick Ass Wholesaling.

What Real Estate Investors Should Do When In Trouble

Real Estate Investing Tip:

NEVER borrow your way out of trouble. SELL to get out of trouble.

Sometimes you need a creative way to sell your properties. With an open mind you can always find a way.

Why Speculators Got Killed When The Markets Turned And What You Can Do So It Never Happens To You!

Speculating in real estate is a bet that the prices will continue to rise. When you are right you look like a genius but when you are wrong you are the fool and must lick your wounds or hang on for deal life hoping to recover over time.

All markets cycle and here’s a rule for you to follow if you are going to get into the appreciation game now or in the future.

Long Term Appreciation Rule:
When buying for appreciation if you have negative cash flow the amount of the appreciation must exceed the amount of negative cash flow.

For example if you bought a property worth $200,000 that had a $500 month negative cash flow you are losing $6,000 per year. If the property appreciated 3% you would be breaking even. If the property appreciated 6% you would be $6,000 ahead in equity.

If you are going to play the appreciation game be sure to run the numbers to see if you expectations are reasonable.

Most speculators lost because they did not run the numbers and expectations for a market to appreciate at 8% or more on a continued basis is a fools folley.

And while speculating can be inviting because of the tremendous profits others are making it is much better to learn sound investing principles and be prepared for any type of a real estate market.

There Is No National Real Estate Market

News reports mean little to nothing. Why? Because each report is measuring a different segment of the market and one could be up and the other down yet the report is for just an up or down market.

For example a real estate news report could talk about number of homes sold, number of homes listed, rentals vs. condo’s vs. new build permits vs. new homes sold. In my market I recently looked at three different reports all with different conclusions. Learning real estate investing is the key.

The market that is perceived is never the market that is.

Real Estate Investing Advice- Tough Love Style

If you’re looking for some touchy feel good real estate investing advice then hit the road. If you want politically incorrect real estate investing advice that might offend you then you’ve come to the right place.

In this day and age almost everyone is taking a victim’s mentality and blaming somebody else for their failures and inadequacies. I’m sick of hearing the excuses. Look, if you’re broke it’s your fault because of the decisions you’ve made in your life. Not mine, your mother’s, agent orange, or any other bogus excuse you can offer. If you’re one of these whiners then do yourself a favor and leave before your feelings get hurt.

OK, if you’re with me so far than you’re somebody who takes responsibility for you life. I like you already and the good news is no matter what your current financial situation, education, credit, or SAT score you can use real estate investing to plan for your retirement or make a fortune. Now let’s give into some practical real estate investing advice.

Real Estate Investing Advice Tip #1

There is no magic pill. Let’s be realistic and acknowledge there is no magic pill you can take one night where you wake up the next morning rich, at your perfect weight, and have all your problems magically disappear. Success with real estate investing can come fast, real fast, but it will require some effort and action on your part.

Real Estate Investing Advice Tip #2
This is the land of opportunity. It never ceases to amaze me how many immigrants come to this country with no money, no language skills, and no formal education and in just a few short years they can be living the American Dream with a thriving business that employs a bunch of lazy Americans (that could have done the same thing had they gotten off their derriere). If they can become successful starting with so little then take inventory of your assets and make things happen!

Real Estate Investing Advice Tip #3
You Determine Your Success. Your success or failure in everything you do is your responsibility alone. Every successful person that accomplished anything worthwhile in life had plenty of opportunities where they could have quit and thrown in the towel but they didn’t. Will you have challenges to overcome? Absolutely. If it were easy then everyone would do it.

Real Estate Investing Advice Tip #4
Don’t Procrastinate. Nothing will sabotage your success faster than putting off things you need to do. Investing just one hour a day for one year is the equivalent of 9 forty hour workweeks! Don’t underestimate the power of an hour.

Real Estate Investing Advice Tip #5
Deals Are Created Not Found. When investing in real estate approach every deal with the mindset of solving a problem in which the answer is unknown. First you must know what the seller wants then go about finding ways to solve the problem. Do they want debt relief, cash, to take a world vacation, to purchase another house, to put their kids through college, etc? For instance if a seller wants their equity in cash the next question is what do you plan on doing with the cash? If they answer put it in the bank or invest in cd’s there is an opportunity for owner terms because you can show them how they can earn a high rate of return on their money secured by real estate.

Real Estate Investing Advice Tip #6
Invest In Education. Look, if you are being el cheapo and crawling the internet for free articles and how to advice your approach is backwards. Sure, there are a few gems out there but it is much easier to buy someone else’s knowledge and experience than to go it alone and gain knowledge and experience from the school of hard knocks. Trust me, I’ve tried both and not only is paying for knowledge and experience faster it’s much cheaper than screwing up and fixing your own mistakes(been there and done that a few times too many). And while you want to invest in your education do it wisely and make sure the source of the information is credible in their experience and knowledge.

If you are starting in real estate investing you read “Real Estate Magic 101 – How To Get Rich In Real Estate Even If You Are Dead Broke!” This unique book should be read by every person considering a real estate career, whether it be as Realtor, investor, or developer. Especially impressive is the amount of detail and how to advice that can be found in the book. If you are looking to learn how to buy at wholesale prices then check out Kick Ass Wholesaling and you’ll learn how to buy and sell without cash or credit to generate quick cash or as a way of finding your own deals.

Real Estate Investing Advice Tip #7
Invest In Marketing. This may come as a surprise to many but learning how to market and advertise is one of the best investments you can make if you are in any type of business. Marketing is the ability to get the customer to contact you and regardless of your business you need customers. Most marketing courses are a waste of money. Real marketers understand that marketing is about dollars invested vs. dollars returned. Period. Have you ever seen those million dollar super bowl commercials? Is there anyway for those companies to measure the effectiveness of their million dollar advertisement that lasted 30 seconds? One million dollars blown is 30 seconds with no known return on investment.

Real Estate Investing Advice Tip #8
You Get What You Deserve. In nutrition the expression is “You are what you eat.” In measuring your success the expression is “You are what you invest in.” If you invest your time in watching the latest TV hits you’re going too educated on TV shows. If you invest in your knowledge and take action wealth and success will be yours. Do you deserve a nice house or cockroach infested dive? The choice is yours.

Real Estate Investing Advice Tip #9
Manifest Your Life. You have the ability to create the life you want. But, and there is always a but, you have to believe it is possible for you. Telling yourself that you are healthy, wealthy and wise does very little for you if your self image is that you are out of shape, broke, and ignorant. What is your self image?

Many people tell themselves they want to be wealthy but deep down they have a negative connotation attached to being rich. Every hear the term “filthy rich.” Until you feel worthy being successful and having riches in your life you will struggle to reach and hold on to them.

Real Estate Investing Advice Tip #10
You Are Who You Hang Out With. Have you ever noticed that broke people have broke friends and rich people have rich friends? Here’s a quote to live by:

“You are the same person 5 years from now except for the people you meet, the books you read, and the CD’s or MP3’s you listen to.”

Right now take a look at the 5 people you spend the most time with. Do they enrich your life and embrace your goals? Do they encourage you to be successful? Do they push and challenge you or are they better suited for drinking beer and watching TV? The cold hard truth is a lot of people need to change who they spend their time with if they want to become successful. This is a difficult decision since it often involves close friends and family.

The truth is you are going to be as successful as you make up your mind to be. The only thing that is really standing in your way from you having everything you want and deserve in life is you!

Wishing you all the success in life you deserve and have the guts to get!

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