the profit newsletter april 2013 for tampa reia

7/28/2019 The Profit Newsletter April 2013 for Tampa REIA

1/30http://TampaREIA.com

Tampa Real Estate Investors Alliance APRIL 2

2013 Tampa REIA, LLC. All Rights Reserved. Reprint not permitted without written permission from publisher.

When you hear most real estategurus talk about how to doreal estate deals, they make

it sound so easy, and it gets you pumpedup right? But most of the time theyare giving us very high level information.Usually not the nuts and bolts mechanicsof an actual deal it leaves us wantingmore. As new real estate investors, I knowwe are always wanting to know a littlemore to make us feel more comfortable to

know that this stuff actually works. Canyou relate to that?

Thats why in this article we wanted toshare with you an actual case study of adeal that we did just last month( March2013 if you are reading this in the future).Well provide the nitty gritty details of adeal where we make an even $10K on aWholesale Flip. We did it pretty muchthe same way most gurus describe thatthe deal is going to go. It was an easy onewith very little hiccups, which is usually

never the case unfortunately, but they dohappen every once in a while (THANKGOODNESS!).

Quickly, as a precursor, we have only beenin the business about 9 months, so this isstill new to us and we have much to learn,we just want to show you that if you takeaction and follow some simple steps likewe did, these deals do happen.

So we had been Driving for Dollarsand sending out Yellow Letters to prop-erty owners of properties we had identi-ed while driving around as looking like

distressed or vacant properties. Still tothis day, were not exactly sure how this

MAIN MEETING

Thursday, April 11th6:00pm 9:00pm

DoubleTree Tampa Bay3050 N. Rocky Point Dr. West, Tampa, FL

IN THIS ISSUE

APRIL 2013

The Anatomy o a $10K Wholesale Flip

By Matt Larsen..........................................................................1

Your Brand is Your Businesss Promise to Your CustomerBy Dustin Grin .......................................................................3

Attitude + Action = WealthBy Russ Hiner.............................................................................4

The 5 Things You Must Know About Evaluating DealsBy Mark Jackson ......................................................................8

The Why: How Much Do You Really Need?By Dyches Boddiord ...............................................................9

Whats the Diference Between Yield and Return?By Bill Cook ............................................................................. 10

Protecting your Stu: Cloudy Skies AheadBy Don DeRosa ...................................................................... 11

Practical Ways To Put The Bible In Your BusinessBy Erven Kimble.....................................................................12

Is it an Art? Is it a Science? No its Fairly Simple!How to Find Investors!

By Jim Hitt...............................................................................13

The Art o Master Lease OptionsBy Bill Ham ............................................................................. 15

Following Up with Motivated SellersCan Make You Millions

By Kathy Kennebrook ..........................................................16

Why Would Anyone Give Seller Financing Terms?By Larry Harbolt ....................................................................18

Fighting Over Credit Card Lien Releases on Short SalesBy Kimberlee Frank ..............................................................21

How Banks are Committing Fraud, Part 2By Bob Massey .......................................................................23

Three Good Ways To Find Pretty House Deals, Part 2 o 3By Ron LeGrand .....................................................................25

A Fast, Easy, and FREE Way to Fill Your Pipeline Full oDeals Part 1By Tony Pearl ..........................................................................26

Membership Application ...................................................28

Meeting Calendar ............................................................... 29

Calendar o Events .............................................................. 30

The Anatm f a $10KWhlesale FlipBy Matt Larsen

Matt and Courtney Larsen will be speaking at Tampa REIA on

Thursday, April 11th on how to get started wholesaling properties,

the marketing strategies and tools they use, how to target sellers

and build a buyers list, the importance o mindset and taking

masssive actions! See http://tampareia.com or more inormation.

continued on p5

Tampa REIA, LLC

405 S. Dale Mabry Hwy, Suite 114Tampa, FL 33609

P: (813) 358-8050 F: (813) [email protected]://tampareia.com
http://www.meetup.com/tampareia/http://www.youtube.com/TampaREIAhttp://www.twitter.com/TampaREIAhttp://www.facebook.com/TampaREIA





Hi, Im Matt Larsen and Im Courtney Larsen. We are Mr. and Mrs. QuickFlip, ahusband and wie real estate team. We want to invite you to attend theTampaREIA Meeting on Thursday, April 11th at 6PM at the DoubleTree Suiteslocated at 3050 N. Rocky Point Dr. West in Tampa, FL where we are going toshow you how you can make ast cash in real estate, without any extensive realestate experience, and no money or credit required.

All you need is a little sel-condence, motivation, and a burning desire to putsome big checks in your bank account. And you can do this in your spare time,even i you have another ull time job.

How do we know? Because just in the last ew months, we have done over 20wholesale deals with no prior real estate investing experience. We also spentvery little money and used none o our own credit to do these deals. Now weare ull time real estate investors, work on our own schedule and only reportto each other.

Would you like to hear how we did all this?!? I so, please come join us at TampaREIA on Thursday, April 11th where we will be sharing all o our secrets onhow to get started, what marketing strategies and tools to use, how to targetsellers and build a buyers list, and also the importance o mindset and takingMASSIVE ACTION! We are living proo that it works, so come out to learn romtheir experiences, mistakes and successes. See you there!

Main Mnthl Meeting

MEETING AGENDA*6:00 pm

Meet & Greet, Networking

6:30 pm

Introductions, Haves & Wants

7:00 pm

Announcements

7:30 pm

Matt & Courtney Larsen on Howto Start a Successul WholesalingBusiness

9:30 pm

Late Night Networking atWhiskey Joes

*Please Note: Meeting agenda is subject to change.

Fast Cash Real EstateInvesting Crash Curse

With Matt & Curtne Larsen

AKA Mr & Mrs QuickFlip

ValidUntil:

1/1/2015

MemberNo.

1234

YourName

GoldBusinessMem

ber

Doubletree Suites Tampa Bay

3050 North Rocky Point Dr West

Tampa, FL

Bringyourbizcards&fyersTampa REIA Members Can Attend

fr FREE and Guests fr $10.00.Please RSVP at http://rsvp.tampareia.cm

Matt&CourtneyLarsen

April 11th @ 6pm





Branding is the marketing practiceof creating a name, symbol or de-sign that identies and differen-

tiates your business, product or servicefrom any and all other competitors. Putanother way your brand is your busi-nesss promise to your customer.

Your brand tells your customer whatthey can expect from your company,

products and services. Your brandshould uniquely differentiate your busi-ness and what you are offering from thatof all your competitors. Your brand isderived from who you are, who you wantto be and who youre your prospects andcustomers perceive you to be.

In the real estate investing industry,Homevestors is the number one homebuying brand in America. They haveembraced the ugly home buyer con-cept and made We Buy Ugly Housestheir registered trademark, identity andbrand. Their mascot is Ug the ugly lit-tle caveman that helps owners of uglyhouses out of ugly situations. Hom-evestors is a great example of the powerof branding for any real estate investingcompany, large or small.

Like Homevestors, I too appreciate thepower of branding and have attemptedto do some branding of my own at a lo-cal level with my real estate investment

company, One Hour Homebuyers. Wehave embraced the pretty home buyerconcept and have made We Buy PrettyHouses, Sell Your Houses in OneHour and We Can Buy Your Housein One Hour or Less, Guaranteedpart of our trademarks, identity andbrand. Our mascot is the One HourMan, a handsome super homebuyerhero who rescues home owners fromunwanted houses and unwanted situ-ations fast, one hour fast.

If you are a new investor getting intothe game for the rst time, a newagain investor getting back into thegame once more, or a seasoned inves-tor looking to take your business to thenext level, you should consider having abrand and clearly identifying your busi-nesss true purpose.

Thoughts to Ponder WhenConsidering Your Brand:

1. Who: Who are you? Who do youwant to be? Who do your customersperceive you to be?

2. What: What do you do? Whatproducts and services do you offer?What results do you deliver? Whatare the features and benets of yourproducts and services? Whats in itfor your customer (WIIFM)?

3. When: When do you sell and de-liver your product or perform yourservice and how long does it take?

4. Where: Where do you sell and

deliver your product or performyour service?

5. Why: Why do you sell your prod-ucts or perform your services? Whatis your mission and purpose? Whatis your why? Why should yourcustomer choose your businessproduct or service over any competi-tive option available to them?

6. How: How do you accomplish yourmission and deliver your productsand services? How do you beneyour customer? How can you helpothers?

Comment on this article online athttp://tampareia.com/?p=1951

800 Pound Guerilla MarketinG

Your Brand is Your BusinesssPromise to Your CustomerBy Dustin Griffin

Abut the Authr: Dustin Grifn is theExecutive Director o Atlanta

REIA and Tampa REIA andis also an entrepreneur, realestate investor, website

developer, internet marketingenthusiast and a husband andproud ather o two.

JoinDustinforaFull

DayGuerillaMarketing

WorkshoponApril13

th!





Beach REIAMeets 3rd Thursday Each Month at 6PM

at Gators Cafe & Saloon located at

12754 Kingfsh Dr, Treasure Island, FL

BeachREIA.TampaREIA.com

Once again, we are at the end ofthe rst quarter. Over time, Ihave asked you to make a plan,

do your research, and utilize your men-tors skills. Now I want you to considersomething essential. As a mentor, I havebegun to ask people these questions:

What kind of relationshipdo you have with money?

How does this affect your success?

Think about it. Many of us were pro-grammed to see money as the root ofall evil. We think that people withmoney are corrupt and greedyandyet we want what they have! How canyou achieve wealth when you believe itis bad? You are contradicting yourself,arent you?

Do you continually shut yourself downwith thoughts like I cant afford that?

If so, how can you think this and simul-taneously expect to attract wealth intoyour life?

The answer is that you cant.I can help you to see that you can.

Try this Say condently and out loud

1. I deserve to be successful andwealthy. How does this feel?

2. Then say, I dont deserve to besuccessful and wealthy.

Number one feels better, doesnt it?Why not make this your mantra? Saythis to yourself as often as you can andbelieve it! This is the beginning of creat-ing wealth: believing it is yours.

Thoughts either prevent or allow you tomove forward. Changing your thinking

from I dont know if I can do this to Iam successful will allow you to succeed.

ACTION LIST: FOLLOW ATTITUDEWITH ACTIONS

Next, lets change your limiting thoughts.The best way I can coach you to TAKE AC-TION is by helping you to do these things:

1. Look at what you already have and seeit as wealth that you have created. This

means that you CAN create more.

2. Know that this wealth came fromYOUR THOUGHTS and YOUR AC-TIONS. What you have did not cometo you by accident. You worked for it.

3. Believe that you DESERVE to bewealthy.

4. MAKE A PLAN to attract the

wealth you want.

5. Know that a plan can change. Youneed to look at it regularly, be posi-tive, and use tactics that work.

6. Realize the innite possibility oyour wealth. Why limit yourselto $90,000 a year? Why not aimfor $150,000? Why not aim evenhigher?

ACTION LIST TWO: RELATIONSHIPS

Act and speak as if you are wealthyDo not talk about limits in your life.

Make wealthy friends. Surround yourself with people who have what youwant. Study them. Do what they do.

Find a mentor who you respect andwho has what you want.

I have always chosen wealthy mentorsand they have led me to success. What dothey have in common? They do not limitthemselves. When I asked these mentorshow much money I could make, theysaid, As much as you want.

How much do you want?Better yet

How much do you deserve?

How to Be a real estate investor

Attitude + Action = WealthBy Russ Hiner

continued on p22
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one got on our list because this propertydidnt necessarily look distressed. Court-ney decided to mail this one because shewas mailing to a few others on the street,looked this one up and saw it was an ab-sentee owner. Thats our theory anyway.

Sometimes the random ones are the onesthat work. Its a numbers gameanyway so you never know whatsomeones situation is going to beat that exact moment they get aletter from you.

The property was a multi-familyin a nicer area of town, and theproperty owner lived about 40minutes away. He called off ofour Yellow Letter and said hedbe interested in selling mainly

because he was tired of the driveto manage the property. I thinkthis was back in November timeframe. Courtney passed the info to meand said the seller wouldnt name a price.I was supposed to follow up and makean offer, but I think the lead fell thru thecracks. I believe I was consumed at thetime b/c we had just gotten around 12properties under contract and I was fo-cused on that. My fault for sure.

Luckily for us, we did a 2nd mailing toour previously mailed list in February.The same seller called us back and said,Hey Courtney I already told you Iwanted to sell you my property letsmake a deal. He still wanted $125K. Idid some property evaluation and analy-sis of the area and there were propertiesin the area in the $250K-$400K range,so I gured offering $125K might workout. So we wrote up a purchase contractto the seller for $125K. This was all doneover the phone and email so far. After the

seller accepted the offer, Courtney wentout to meet him and take pictures of theproperty as we had not really even lookedat it at this point. We needed to makesure the property was not falling over andthat it was in decent shape to justify theprice. After the meeting, Courtney felt itlooked in pretty good shape.

So at that point we were ready to marketthe property to our Buyers List. We

had built a decent list of Cash Buyersin the area over the past 6 months or so 100 or so. We felt making $10K onthis deal would be nice, so we advertisedit for $135K. On a Tuesday night we sentout the details of the property to the list.

Turns out we had a hot one on our hands.

Within an hour or so we had someonethat wanted it. This buyer drove by theproperty on Wednesday and conrmedhe wanted it. So we wrote up an As-signment Contract to the new buyer fora $10K Assignment Fee and instructedhim to put down a deposit at our preferredTitle Company. The buyer was familiarwith the whole process and did not bat an

eye at our $10K assignment fee.

The buyer did need to do a quick walk-through to be sure there were no issues onhis end. We had to coordinate with theseller to let our buyer do a walkthrough.We were not going to be there for this,so we were slightly nervous about lettingthe seller and new buyer talk without usbeing there, but the new buyer assured ushe would be cool about it and not tamperwith the deal. So that was on Friday. Thenew buyer said everything looked good

and was ready to pull the trigger on thedeal so we set closing for the followingFriday after that.

The following Friday rolls around and Imcommunicating with my Title person, whois awesome by the way! Things usuallytend to start going wrong when it comesto closing time it seems like. How was theseller going to feel about us assigning ourcontract for $10K? We didnt really ex-

plain it to our seller other than saying wewere partnering up with another companyon the deal. Turns out the seller didnthave any issues with it and was all readyto sign off on the deal. So I check with myTitle person that afternoon and she says

everything went smooth the new buyerwired in the funds, and the seller gottheir money. And the best part, my$10K check was there for us to pickup. Yay!

OK really the best part of the sto-ry is that when I went to the TitleCo to pick up the check, I lookedat the HUD-1. I saw my $10K assignment fee on there. Cool. Rightbelow that, I saw my new buyers$25K assignment fee added on as

well. What??!!! Yep turns out heassigned his assignment contractto somebody else for $25K. He had

lined up an even bigger buyer. So thenew new buyer paid $160K for theproperty ( $125K + $35K in assignmentfees). Turns out they thought that was agreat deal even at that price.

Moral of the story yes we were thrilledto make $10K. Yes we feel like we couldhave made a lot more. But to make $10K

on a deal that we spent 4 hours of totatime on is awesome. I never even metthe seller or saw the property. Courtneyonly did once for about 20 minutes. Ivespent countless hours on deals that we onlymade $1000 on. So we will take these easydeals any day. Moral #2 follow up iKEY. Moral #3 - $10K AND $25K as-signment fees are real!

So get out there and start marketing tomotivated sellers. You never know whatcan happen if you arent doing any mar-

keting. Find a great deal and the moneywill nd you. We hope this was a goodcase study that will get you motivated toget out there and get some deals. Werehere to help. Be sure to visit www.MrandMrsQuickip.com for more good informa-tion on making fast cash with quick ipreal estate. Good Luck!!


continued from page 1





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2013 Tampa REIA, LLC. All Rights Reserved. Reprint not permitted without written permission from publisher. http://TampaREIA.com

LEGAL DISCLAIMER: Tampa REIA, LLC promotes practical knowledge of real estate investment though education, discussion and networking.The information, views and opinions expressed in the publication do not necessarily reect the views, policies and opinions of Tampa REIA, LLCor any of its members and sponsors, nor does mention of certain trade names, products, services, individuals or organizations imply endorsementby Tampa REIA, LLC or its members or sponsors. The information presented in this publication is made available for informational purposes onlyand is not to be construed as nancial or legal advice which should only be obtained through a competent attorney, accountant or other qualiedprofessional advisor. Tampa REIA, LLC does not pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, orperson. Tampa REIA, LLC recommends you perform your own due diligence and seek appropriate legal, accounting, or other professional advicebefore making any investment. Tampa REIA, LLC disclaims any and all liability for any actions or inactions taken by readers of this informationamaterial or as a result of communications from or to its ofcers, directors, employees, contractors, partners, members, sponsors and afliates.

Tampa REIA, LLC405 S. Dale Mabry Hwy

Suite 114Tampa, FL 33609

P: 813-358-8050F: 813-200-1330E: [email protected]

Dustin GrinExecutive DirectorP: 813-358-8050F: 813-200-1330E: [email protected]

Christine GrinAssistant DirectorP: 813-358-8050F: 813-200-1330E: [email protected]

Larry HarboltLarrys Weekly REI MeetupP: 727-420-4810E: [email protected]

TAmpA REIAs mIssIon is to help insure our members real estate success by providing extremely

aordable, high quality, relevant real estate investing inormation and education, as well as requent,

un and rewarding real estate networking opportunities. Our goal is to be the premier educational

and networking organization or real estate proessionals in the Tampa Bay area.

http://TampaREIA.com

http://www.Facebook.com/TampaREIA

http://www.Twitter.com/TampaREIA

http://www.YouTube.com/TampaREIA

http://Meetup.com/TampaREIA

Matt & Courtney LarsenLeaders of Beach REIAP: 813-838-0171E: [email protected]
http://facebook.com/tampareiahttp://facebook.com/tampareiahttp://facebook.com/tampareia


7/30

GldMembers

$49.95

SilverMembers

$69.95

Guests$99.95

Please Note: Registrants may bring a spouse, parent oradult child or 1/2 o.

101 Plus Was t Generate MtivatedBuer & Seller Leads Wrkshp

Join us in Tampa on Saturday, April 13th at 9:00 AM at the DoubleTree

Suites located at 3050 N. Rocky Point Dr. West in Tampa, FL or to learn

101 Plus Ways to Generate Buyer & Seller Leads or your real estate

investing business.

Dustin Grifn is going to teach you many o the 800 Pound Guerilla Marketing

strategies, tips, tools, techniques and tricks he and other successul real estate

investors use to generate all the leads they can handle and how you can too!

He is going to teach you how you can totally dominate your local competition

with a little eort and a relatively low budget using new and traditional marketing, a little creativity

and the power o the Internet. Sign up now beore the Early Registration Special expires and save.

Be sure to bring a pen and paper to take lots o notes as well as at least 5 to 10 examples o what you

are currently doing to market your business to share with the class. The more examples we have to

share, the better!

Upcming Wrkshp Dates

April 13, 2013 Tampa, FLApril 20, 2013 Atlanta, GA

To register, please visit:http://101ways.tampareia.com/

Jin Tampa REIA nwfr $100/r and attend

the 101 Plus WasWrkshp fr FREE!
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Focusing on current real estatecomps will prepare you for mak-ing deals happen in todays real

estate atmosphere. Are you ready to diveinto the real estate market by investingin a rental property? The opportunitiesare ripe, but dont make rookie mistakes.Follow these tips and youll be on yourway to securing a successful deal.

Dont trust the owners numbers. Yourdue diligence should involve checking withunbiased sources to determine the expens-es, maintenance fees, leasing commissionsand other costs associated with any prop-erty. Double check data provided by thebroker or seller using your own real estatecomp source . Talk to another apartmentowner. Check public records. Conrm allnumbers so you know exactly what kind ofexpenses to factor into the deal.

Dont underestimate property taxes.Factor in the right property tax amount,

not what the current owner had been pay-ing, particularly if its a long-term owner.Your property taxes could be based on thesale price. Check with the county assessorfor accurate numbers.

Give special attention to the big-ticketitems. The heating system and roof can be

your biggest headaches and most costly re-pairs. Know what youre getting into. Havethem inspected by HVAC and roong spe-cialists, respectively, not a general inspector.Issues are not a deal killer, however. In fact,it can work in your favor and give you thenegotiating room to improve the deal.

Dont fall in love. Remove yourself emo-tionally from the property. Look at a lot of

properties before you commit. Dont go forthe one you love and try to make the num-bers work. Look at 20 properties, make of-fers on 10 and hope one is accepted. If youget one or two accepted offers, youre prob-ably in the ballpark. If you get more thanthat, youre probably offering too much.Dont base your offer on the owners ask-ing price. Once youve been in the businessa while, you will realize there are a millionreasons why an owner might want a certainamount for a property, irrespective if its re-

alistic or not. Run your own numbers to de-termine what sale price will work for you.

Always have a reserve fund. Dont useyour entire investment capital on the downpayment. Set a goal to have one year ofmortgage payments in the bank to get youthrough turnover cycles and unplannedmaintenance expenses. Your nancial anal-ysis is for even keel expenses, but even keel

is more of a long-term proposition. Short-term uctuations are the reality.

Following these 5 tips to evaluate anyreal estate investment deals you nd toensure that you get the best deal. Learning to stay on track with these simplesteps will denitely save and help youmake money at the same time! Useyour REIAComps membership support

system to learn more about the tips andinformation you need to know beforeyou actually close on the deals.


The 5 Things You Must KnowAbout Evaluating Deals

By Mark Jackson

aPPraiser secrets for real estate investors

Mark Jackson678-318-1773 Ext 5

[email protected]

www.REIAComps.com

Mark Jackson is an appraiser, realestate investor and property valuationspecialist who teaches others toget more out o their real estate

investing business. In 1999, Mark ounded anappraisal company and soon ound his truegit was analyzing property values or realestate investors. Since 2000, has closed millionso dollars worth o his own domestic andinternational real estate transactions. Markspassions are: aith, amily, gol and real estate.

Advertie Yur Buie i The prtI youre looking to reach the Real Estate Industry here in the

Tampa Bay Area and throughout Florida, you cant do better

than The PROFIT. Your ad will reach more than 5,000 each monthwith your message. Our production teams are among some o

the best designers in the country. We make you look GOOD!

I yu are ready t get tarted, ee ur Advertiig Rate i thi iue ad

the call Chritie Grif at 813-358-8050 r eail [email protected].

Tampa Real Estate Investrs Alliance
http://reiacomps.com/http://reiacomps.com/http://reiacomps.com/http://reiacomps.com/http://reiacomps.com/mailto:[email protected]://www.reiacomps.com/mailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.commailto:admin%40tampareia.comhttp://www.reiacomps.com/mailto:[email protected]://reiacomps.com/http://reiacomps.com/http://reiacomps.com/http://reiacomps.com/http://reiacomps.com/





THE WHY

Why are you investing inreal estate? Do you have aplan?

Every business that seeks to grow andachieve success has a detailed businessplan. Any real estate entrepreneur thatexpects cash flow and asset growth in

any reasonable time period shouldhave a detailed plan as well.

The first question is where do youwant to be in 5 or 10 years? Just say-ing you want to be rich is not an ac-ceptable answer. Rich is a nebulousword and one we will remove from ourvocabulary for this discussion.

We will replace it with two conceptsthat we can dene, Cash Flow and AssetBuilding. Cash ow generates currentdollars available to spend now. Whilecash ow is required to put food on thetable and a roof over your head, it is alsotaxed in the year you receive it. Evenwith the new tax laws, it can be taxedup to 60% between federal, state andself-employment taxes. Once you thinkabout it, it makes no sense to earn anymore than you need to live comfortably,not spartanly or exorbitantly.

This is true since the next dollar you

dont need can be taxed up to 60cents. And after paying the taxes, you

must find a good investment for theremaining 40 cents. You would needto more than double your return onthe after-taxed money to generate thesame dollars as you would on before-taxed dollars. That should debunk theold Cash Flow is King thinking.

A popular way for real estate entrepre-neurs to generate cash is with quick-

turn property. But this is just a busi-ness where you are the boss. You maygenerate high income, but you willnever be truly wealthy doing this. Seeif you can name just one person youknow that retired wealthy from thisbusiness alone.

Assets are King, is a much truerstatement. Asset values grow withoutcurrent taxation. Rental property canprovide both current cash flow and as-

set growth. You decide when that as-set growth is taxed. Growing assets isthe true path to wealth.

So, how much do you need? We an-swered the cash flow part of this ques-tion above. That was pretty easy to de-termine. Asset accumulation is muchmore subjective. After about 4 millionbetween spouses, estate planning be-comes complex. For the vast majorityof you, 4 million in todays dollars ininvestment net worth will carry you

through the rest of your lives.

INHERITANCE

One of the biggest disservices doneto children is to leave them large in-heritances. A study was done of lot-tery winners in Massachusetts in the1980s. Any winner of $5,000 or morewas tracked for 5 years. After 5 yearsit was found that 85% of them were inthe same OR WORSE financial con-

dition than they were 5 years earlierThis directly relates to inheritanceswindfall money given to someone whohas not earned it. You probably haveyour own stories of wasted inheritanc-es. Bottom linehuman nature is thatpeople value what they earn them-selves more than what is given themfor free.

If you really want to make a differencein the lives of those you love, teach

them to invest rather than just leavingan inheritance. The self-esteem you wilbe giving them is greater than any in-heritance. And knowledge is not taxed

Put some thought into these conceptswhen you are on vacation. To be trulysuccessful, you must have a plan.


Dyches [email protected]

www.Assets101.com

Dyches Boddiord is a ulltime investor who speaks romexperience in a variety o real estateareas. His seminars and conerencesare intended or the serious real

estate investor, though entrepreneurs in otherbusinesses or investments will nd his traininghelpul as well.

The Why: How Much Do YouReally Need?By Dyches Boddiford

assets 101

Keep up to date with our latest

opportunities by joining us on Twitter at

www.Twitter.c/TaaREIA
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Recently, an investor asked us toexplain the difference betweenyield and return. When Kim

and I rst became real estate investors,we asked this exact same question.

Yield and return aredifferent ends of thesamestick.

A yield looksforward its looking intothefuture. It hasnt happened yet. Itswhat youproject yourinvestment dollarsto earn each year for the life of the in-vestment.

A return looks backward its lookingat what your investment actuallydid.Theres no guesswork about what youmade because everything has alreadyhappened.

To better understandyield

, lets lookat an example: You buy a 12-year-old,two-bedroom, two-bath mobile homein a park. Your all-in purchase cost is$2,750. You sell this home for $8,500with the following sale terms: $500down, with monthly payments of $275,at 18.63% interest, for 39 months.

Now lets gure the yield using yourtrusty nancial calculator: N = 39; I/YR = ?; PV = -2,250; PMT = 275;FV = 0. Solving for I/YR gives you a

yearly yield of 144.95%.

What does gives you a yearly yield of144.95% mean? Great question! Itmeans that you expect your $2,250 in-vestment to $3,300 each year ($275 x12), for 3.25 years (39 months). Inother words, the rst year, you shouldrecoup your initial $2,250 investment

($2,750 purchase price - $500 down),plus make a $1,050 prot. The secondyear, you should make a $3,300 prof-it. The third year, you should make a$3,330 prot. Finally, youshouldmake$825 in the last year of your investment($275 x 3 months).

I want to repeat an important thing thatwas difcult for me to grasp when I wasrst learning about yields and returns:When guring a yield or return, remem-

ber that its aper-yearpercentage, not anover-the-life-of-the-investment percentage.Early on using the example above I mistakenly divided 144.95% by 3.25years to get the yield or return. THISWAS W-R-O-N-G! The correct num-ber is 144.95% PER YEAR!

With an investment, are your yieldand return ever the same? Yes,IF theperson made all his payments on time,didnt incur any late fees and paid offthe property when he was supposed to.

So are an investments yield and returnever different? Absolutely, because manyfolks dont pay on time or they movefrom the property before its paid off.

Folks, I know todays topic seems dulldry and boring. But heres the thingWere discussing the language ofwealth-building and nancial freedom

This is about YOU having the nanciafreedom to do what YOU want, whenYOU want, where YOU want. Itsnot easy stuff, but it is important stuffPlease take time to learn it. More importantly, teach it to your kids!


Bill Cook727-420-4810

[email protected]

www.REIOutpost.com

Bill Cook is a ull-time real estate investor, speakerand author. He specializes in single-amilyhomes and mobile home parks. Bill believes

that real estate investing, especiallythe act o buying and holding rentalproperty, is the surest way to nancialindependence and wealth. Bill and hiswie Kim run North Georgia REIA where

they teach others how to successully invest inreal estate.

Whats the DifferenceBetween Yield and Return?By Bill Cook

real world real estate investinG
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Tonight youre closing on a lu-crative short sale. Afterwards,youve got a special dinner

planned. And its good to know yourseller will sleep better than she has inmonths. Yes, its going to be a greatnight. All you need to do now is print

out the paperwork.

So you turn on your laptop and nothing.Nothing.Just the dreaded bluescreen of death!

Viruses happen. Spilled coffee hap-pens. Accidentally dropping youriPhone in the swimming pool becauseyou insisted you could carry four mar-garitas while you dance the hula withyour cute cousin Betsy, well, that hap-pens too.

If youre like me, your whole life is inyour iPad. Heaven forbid all that infor-mation should suddenly disappear! Youcan install anti-virus programs, youcan be careful what you download, butheres the bottom line: Its not a matterof ifyour system will crash. Its just amatter ofwhen. Its true for notepadsand smartphones as well as laptopsand PCs. So no matter what else youdo, youll need to make sure all that

wonderful information lives somewheresafer than your laptop.

And that means you need to back upyour stuff. You need a copy of all thestuff you care about in your computer.That way, if your smartphone goes ka-put, or if it gets stolen, or if you leave itout in the rain, youll still have a copyof all your documents and photos.

Backups have come a long way just in

the past few years. Remember whenyou had to copy your hard drive ontoabout a hundred oppy disks? And youhad to make sure you kept the disks ina safe place, away from your computer.Not anymore. Now, theres somethingcalled the cloud.

So what the heck is the cloud? Thinkof it as a great big data storage roomin the sky.

Youve probably used cloud comput-ing without even knowing it. Everytime you look at your yahoo email ac-count, for instance, youre computingin the cloud. The emails dont live onyour hard drive, right? They live some-where out there. In other words, inthe cloud.

Easy access to the cloud is a game-changer for investors. The cloud is whatmakes mobile computing possible. Itlets you keep your stuff in a centrallocation so you can get to it from anycomputer device with Internet access.You can create a purchase offer at homeon your PC and park it on the web.Then you can edit it on your notepadwhile you wait for your latte. You caneven bring it up on your smartphone

for a last-minute change.

Here is small sampling of some cloud-computing resources you might nduseful:

iCloud. This is Apples applicationfor backing up your les; you canuse this for free if you use an iPador iPhone. Its easy to set up, andyou get 5 gigabytes of storage space.(www.icloud.com)

Evernote and Dropbox: Both othese applications allow you to storeand share les. Each has somewhatdifferent capabilities but both allowyou to store copies of documentsand more. (www.evernote.com andwww.dropbox.com)

Shuttery and PhotobucketYoull want to protect more thanyour documents. Youll want toback up your photographs as wellwhether theyre family portraits orpictures of your next house pur-chase. (www.shuttery.com andwww.photobucket.com)

Your data represents a lot of hard workso take care of it. If you do, the worldwill be your ofce.

Still, keep your phone away from theswimming pool. You know, just in case.


Don [email protected]

www.MobileRealEstateRockstar.com/Tampa REIA

www.Facebook.com/Don.DeRosa

www.Twitter.com/DonDeRosa

Don DeRosa was recognized asone o the nations top 21 realestate investors in the New York

Times bestseller The MillionaireReal Estate Investor. Don, who

is a ull-time investor, trainer, and mentor, isthe rst to oer his complete investing systemon a mobile platorm. Don teaches investorshow to Make More and Work Less by beingmore efcient, productive and competitive,leveraging mobile technology and apps on theiPad, iPhone, Android and other mobile devices.

tHeres an aPP for tHat

Protecting your Stuff:Cloudy Skies AheadBy Don DeRosa

Treat your password like your toothbrush.Dont let anybody else use it, and get a new one every six months. ~ Clifford Stoll
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SARASoTAREIA.CoM

Ji u at the

SARASoTA REIA WEEKLy MEETINGEvery Wededay at n

at the Oriental Bufet, 4458 Bee Ridge Rd, Sarasota, FL

Business By tHe Book

Many fail to realize

Gods deep desires

to be involved in

their personal lives.

Many smart business men andwomen pride themselves inknowing the trends, critical

success factors, competitive strategies andother business indicators that could af-fect the success of their business. It wouldbe totally unwise for an entrepreneur todevelop a comprehensive business plan

without the consultation of an attorney,accountant and other business profes-sionals. The reason for these abundantresources is obvious. In order to succeedit is necessary to have sufcient expertand credible counsel. That being said, Ind it so amazing how many extremelybrilliant business professionals fail to seethe relevance or the need to get counsel orinstruction from the one expert that hasa awless track record for the successfuloversight and management of the entireuniverse; God, the creator of the universe!

Most business professional are highly pro-cient in their trade. They have acquired spe-cialized skill-sets, training and experience thatallow them to comfortably make informedday-to-day decisions. They take advantage

of a plethoraof seminarsand high leveltraining to as-sure they re-main abreast of

cutting edge technologies, best practices, andcurrent trends in their specic industry. Busi-ness men and women make commitmentsto pursue continual personal developmentactivities that include empowering seminars,formal learning, the latest industry training,speaker guilds, and a host of other events de-signed to improve themselves, their employ-ees, and their company.

But, many business men and womenlack the acumens needed to practically

integrate biblical or spiritual principles intheir day-to-day business activities, theirindividual and family affairs. They fail torealize Gods deep desire to be involved intheir personal lives and in the success oftheir business.

It is no surprise with all of the demands

of business management, there seemsto be a lack of time devoted to spiritualgrowth activities. It is obvious that all1,440 minutes of each day have somemeaningful activity already assigned toit. So, at the end of that day the thingsthat have the highest priority are thethings that get done. Everything else isrescheduled or dismissed.

Here are some suggestions to reprioritize

yourTo-Do List:

Set-a-side fteen minutes eachmorning or evening to read a dailydevotion guide. The local or onlineChristian Book stores offer a varietyof devotional guides to choose from.

Seek other individuals who have a simi-lar desire as you to know more aboutthe bible and form a group (or join anexisting group) to study together.

Begin to look for (and regularly at-

tend) a local church or Bible study

group that ts your personality andcultural preferences.

Make a commitment to replace anhour a week of your time normallyspent on; multimedia activities (TVInternet, Games, etc), or favoritesports event, or working in the ga-

rage, or shopping at the mall, with anhour reading a classic Christian book.

Join a local Christian Business Networking Group that may operatein your area. Goggle search thosewords with your location and it wilgive you a starting point.

Consider seeking advice from a li-censed Christian Counselor or con-sider utilizing the skills of a Chris-

tian Life Coach. These professionalscan offer insight that will be helpfulwhile you seek to merge biblical andspiritual values into your businessand personal life.

You may nd it difcult to make suchchanges in your already busy schedulebut it will be worth it. You will nd your-self more excited about making a mean-ingful difference. Stick to your commit-ment to put the bible in your business ina practical way.

Practical Ways To Put The BibleIn Your BusinessBy Erven Kimble

Listen to advice and accept correction, and in the end you will be wise. People can make all kinds of plans,

but only the Lords plan will happen. (Proverbs 19:20-21)(NCV)

continued on p14
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How to Find Investors Its Fairly Simple!

When youre looking for private money,it is not an art. Its a fairly simple process.

How to Find Investors Benefts

The benets really depend upon the nego-tiation with you and the lender. Here are a

few of the many possible benets:

Youre dealing with an individual whocan make the decision right then andthere, or as close to right then and thereas you can.

You generally pay points for loan origi-nation fees to traditional lenders, withprivate lenders, whether points are paidor not is a matter of negotiation.

Traditional lenders require paymentson loans; with an IRA it may be pos-sible to arrange a no payment loan.

- If you need a one-year or two-yearloan to do a rehab and the inves-tor says I dont need the cash owbecause its in my IRA, Id ratherhave the extra one or two percent.Thats great; youd rather not makeany payments until the house sells.

You set the terms with the private

lender, not the bank.

Many times, theres no personal creditrequired; however, not always.

There are often no personal guarantees;this varies by lender and negotiation.

In some cases, you can get dollars up-front for funding expenses.

- Thats not always the case. Manyprivate lenders will say no mon-ey upfront; still others will say100% as long as the Loan to Value

is 65% or less.

Some lenders will require some sort ofequity, skin in the game, to makea loan. Thats one of the nice thingsabout dealing with private lenders; theterms are completely negotiable be-tween you and the lender.

How to Find Investors Gettingthe Conversation Started

Get the conversation started with an in-troduction letter (reminder: to people youalready have a prior existing relationshipwith) and a personal business prole. Setup a one-on-one appointment and get acommitment if a commitment is available.

Remember: Youre not begging, yourenot sellingand youre not chasing. Keep inmind that most bank accounts are offering% interest or less. The right deal can bea win for the investor and the borrower.

Think about what investors want to know.Am I going to get my money back?Nine percent is great, but what about my$100,000? How do I know that Im get-

ting that back, because 9% means noth-ing if I lose $100,000? A well secured55% Loan to Value on a piece of real es-tate thats a rst mortgage at eight or ninepercent should be a very attractive invest-ment, provided you make them feel com-fortable.

How to Find Investors Private Money Guidelines

Under the SEC guidelines, you cannotsolicit lenders by mail, this is a violationYou need to have a prior relationshipwith your potential lenders. As a generacomment, always to be veried with yourprofessionals, the relationship can be de-veloped over a series of meetings.

How to Find Investors Keeping the Door Open

Ask your current lenders for referrals. Agreat time to ask is after you have con-sistently made on-time payments. Calthem up to make sure they received theirpayment and ask: Hows everything go-ing? Great, do you know anybody elsewho would like to get a nice consistentreturn on their money? Not this week?Well, keep us in mind.

Send out annual statements of investmentperformance. Its like a little statement offacts. Always be professional and put to-

gether a great package. This is the mini-mum information you should include inyour package:

Appraisal

Title insurance

Fire and liability insurance

A copy of the note and deed of trustsecurity deed or the mortgage

Is it an Art? Is it a Science? No itsFairly Simple! How to Find Investors!By Jim Hitt, CEO of American IRA, LLC

fast track to self-directed ira investinG

Keep up to date with

our latest opportunities by

joining us on Facebook at

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The more professional the package, the

more your chances of hearing yes in-crease. It should also include picturesand a map of the area. Make it a profes-sional package so that the lender knowstheyre dealing with somebody that isthorough. Put yourself in the investorsshoes. Would you rather deal with some-body thats thorough or somebody thatssloppy? Who makes you feel warm andtoasty about lending your money?

Obtaining private loans is a processof gaining the lenders condenceand proving your ability as a success-ful investor.

Many investors believe they are en-titled to borrow money. These peopleusually fail.

The successful investor is professionaland respectful, and provides proof oftheir ability or background.

Even though youre offering a heck

of a good opportunity, be respectful.Dont just say Hey if you have money,stand up.

Disclaimer

The loan to values, the examples, the in-terest rates, and the reference to points,costs etc. are merely examples. This isnot a recommendation of interest ratesetc.; this is absolutely for illustrationpurposes only. You need to consult with

the proper professionals when entering

into this type of transaction.

American IRA, LLC does not give invest-ment advice. We do offer guidance as tothe rules and regulations related to theirself-directed accounts and the benets ofdifferent account types so that their clientscan take that information to their profes-sionals to discuss the ramications of vari-ous decisions on their individual situation.

For more information, or to explore youroptions, call American IRA today at 866-7500-IRA (472). We look forward toworking with you.


continued on p18

Jim Hitt800-750-0472

[email protected]

www.AmericanIRA.com

www.Facebook.com/AmericanIRA

www.Twitter.com/IRAExpert

Jim Hitt is the Chie ExecutiveOfcer o American IRA, LLCand has been committed to allaspects o investing or more

than 30 years, using seldirected IRAs or hisown investments since 1982. Jims orte is thenancing and acquisition o real estate, privateoerings, mortgage lending, businesses, jointventures, partnerships and limited liabilitycompanies using creative techniques.

Thoughts to Ponder

I. What do you think is the most im-portant spiritual changes you need tomake in your life?

II. Are you willing to commitment to

implement at least one of the sugges-tions presented?

III. Have you discussed your desire for adeeper spiritual understanding withyour spouse or other signicantpeople in your life?


Erven Kimble404-606-8909

[email protected]

www.Facebook.com/EAKimble

Erven Kimble is an accomplishedpastor, teacher, author, communityleader, licensed Christian Counselorand Real Estate entrepreneur. Erven

is a visionary that has aithullyserved as the Senior Pastor o a local church inLilburn, Georgia or twenty years.

The author searched the Book o Proverbs andPsalms and extracted wisdom that reerencebusiness and nances to produce the serieso articles called Business By The Book. Thepurpose o these articles is to present timetested and proven Biblical principles in a waythat is practical, relevant and benecial to theaverage business person.

continued from page 12
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real estate raw

Master lease options are a greatway to get started in the realestate business but are often

misunderstood. A master lease optionis two separate contracts, the masterlease and the option to purchase. To-gether they make up the master leaseoption (MLO).

A master lease gives you the right to rentan entire property. This could be anythingfrom a single family residence to a largeapartment complex or strip mall. Onceyou have a master lease in place you con-trol the property. This includes the man-agement and the operations. You can es-sentially become the landlord yourself orhire management at your discretion.

The option to purchase sets the purchaseprice for a certain amount of time and for acertain price. You will negotiate this priceand time frame during your offer and ne-

gotiation process. Usually an option feeis placed at the time of the signing. Theoption money is used as a non-refundabledeposit to the seller in order for you to con-trol the sale of the property. If you do notclose the sale in the time frame set in thepurchase option, then you will lose the op-tion money. If you do close the sale thenthe option money is applied to the pur-

chase price.

The benets of doing a deal like this is youcan take control of a property with little orno experience. You dont have to qualifywith a traditional lender for a loan andget an appraisal. You can control the salewith the option money, which is what everamount you can negotiate.

I just recently took over a 108 unit apart-ment complex with a MLO. The price is

$5,000,000 and I now control the man-agement, sale and the cash ow with a

$25K deposit. Im now running a 5 mil-lion dollar asset for $25K. I split the protwith the owner and the best part is I havealready recovered my $25K from the cashow. As long as the property remains prof-itable, I have a risk free stream of incomefor the next several years.

Master lease options are a great way to do

business but there are some catches. Youneed to have a very experienced attorneycreate or review any documents pertainingto the transaction to make sure you complywith state laws. You are putting the op-tion money at risk if you cant purchasethe property in the agreed time frame.

The benets (as I mentioned) are thatyou dont need prior experience or a loanThis is a good way for an investor to takecontrol of a distressed asset and then improve the operations. Once the propertyis stabilized you can then execute yourexit strategy such as purchase it or selit to someone else. Did I mention thatyou only have to pay what the pre-ne-gotiated option price is? If you can selit for more than that in the future youget to keep the difference. Think of thepossibilities as our real estate markets in-crease in value in the next few years!


Bill Ham478-718-0993

[email protected]

www.LinkedIn.com/in/BillHam1

Bill Ham has been in real estate or8 years and has created a portolioo nearly 400 units in Macon, GAusing creative and seller nancing.

The Art ofMaster Lease OptionsBy Bill Ham
http://www.wecanbuyfast.com/





Larr Harblts WeeklReal Estate Investr Meetup

Every mday at 7:00Hibachi Buet7610 49th St N, Pinellas Park, FL

JoinUsA

t

MarketinG MaGic tricks

Let me ask you a question; are youproperly managing your pros-pects? Are you taking the time to

follow up with the sellers who didnt ini-tially accept your offers, or the sellers youstill need to make offers to? Did you knowthat you are leaving thousands of dollarsin potential income behind if you arentfollowing up with sellers? One of the easi-est ways to make a fortune in the real es-

tate business and gain the advantage overyour competition is to take the time tofollow up with motivated and semi-moti-vated sellers. Youve already got the sellerin your pipeline, youve already done themarketing and spent the money to ndthis person, now all you need to do is tofollow up with them until they either sellyou their property or tell you to go away.How much simpler could it be?

There are two types of sellers we are go-

ing to follow up with, those weve alreadymade offers to who havent accepted ouroffer and those who have not made anydecision after our initial contact withthem. Quite often, you will need to makemultiple contacts with sellers before theirsituation changes and dictates that theysell their property to you. If you stay intouch with these sellers, you build cred-ibility with them and when it comes timeto sell they will contact you rst, even ifthey have been contacted by someone elsein the meantime.

There are a lot of investors in the marketthese days, and most of them have a verylimited knowledge of how the whole fol-low-up process works, not to mention theinability to create successful deals. Whatthey dont realize is that many of the sell-ers you will be dealing with have a varietyof problems they arent sure how to solveuntil they are contacted by you.

Some of those may include divorce situa-tions, estates or health issues where theremay be emotions tied to the property.With these sellers it may take a little lon-ger before they make that nal decision tosell. Most of your competitors will simplythrow these potential deals in the trashwhen they dont get the property undercontract after the initial contact or offeris made. I have made deals many monthsafter the initial contact with the seller wasmade simply because I took the time to

follow up. Not only did I build credibil-ity with the seller, but now they like mebetter and trust me more than the nextinvestor who may come along.

These are the types of sellers I will placein my follow-up system and follow upwith at least every thirty to sixty days ifnot more often. I have made thousandsof dollars on deals other investors wouldsimply have thrown in the trash becauseI took the time to follow up with a semi-motivated seller. Probably half of the

deals I do in a typical year come from fol-

lowing up with these sellers.

In addition, with the help of a fellow in-vestor who is also a software developer, Inow have an incredible software systemthat does all the work for me. It remindsme when I need to do my direct mailcampaigns, it reminds me when to followup with sellers, it has a section to trackpotential buyers and build a buyers list

and it keeps all the information on theproperties stored including a photo.

In fact, once I have followed up andpurchased the property, my system wilmatch the property with one of the buy-ers on my buyers list, so now; even thatpart of my business is automated. Andonce again, isnt that the whole point tothis business, to automate as many thingsas you can so you can work with the sell-ers and make the deals happen. You dont

need software to get started with thistype of a system. You can simply use anauto-responder and a folder system to be-gin following up with motivated sellers.

Here is a recent example from my les-I contacted a seller who had inherited aproperty in Florida where I live and helived in Michigan. The home belonged tohis aunt who had pretty much raised himhis whole life. When she passed away thehome was left to him and he just couldntbring himself to sell it right away. I actu-

ally met with the seller and made an offe

Following Up with MotivatedSellers Can Make You MillionsBy Kathy Kennebrook, The Marketing Magic Lady




2013 Tampa REIA, LLC. All Rights Reserved. Reprint not permitted without written permission from publisher.2012 Atlanta REIA, LLC All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher. http://TampaREIA.com2013 Tampa REIA, LLC. All Rights Reserved. Reprint not permitted without written permission from publisher. http://TampaREIA.com

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on the property. He had initially accept-ed my offer, and then he decided to holdonto the property for awhile and use it asa vacation home. After a year and a half,he got tired of having to deal with all themaintenance issues on the property andended up selling the property to me forthe initial offer I made because I took the

time to follow up with him every thirtydays or so.

I actually ended up making even moremoney on this deal than I would havein the rst place because the house hadappreciated in value during the periodof time that he kept it and he had madeimprovements to the home. Most inves-tors would have thrown this deal in thetrash as soon as the seller said no to theirinitial offer, but because I took the timeto follow up, I purchased the property

and made a signicant amount of moneyon this deal. I still get holiday cards fromthat seller.

Im sure youre already aware of how im-portant it is to follow up with sellers. Itonly takes a few minutes each week tofollow up with these sellers if you have agood follow-up system in place. I use myfollow-up system to follow up with sell-ers I have made offers to but who haventsaid yes or no to my offer, and with sellers

who own homes in areas where I want tobuy. I do this by using both direct mailand e-mail to follow up with these sellers.Sometimes if the situation warrants it, Iwill call them. My system even remindsme to do the follow up. How much sim-pler can it be? ANDsince the seller hasalready been getting contact from me fora few weeks, if their situation has changedthey are ready to sell to me. This is a pret-ty typical scenario.

With sellers who specically have proper-ties in areas where I want to buy, I do re-peat mailings to a specic list with specif-ic parameters in mind such as out of stateowners, quit claim deeds or old sale dates.Each time I do the mailings I continue toclean the list I am using by taking outbad addresses, deals I have purchased or

folks who tell me not to mail to themagain. The more I mail to these folks, themore credibility I build with them. If youare using a follow up system in your busi-ness it is very easy to track these mailings.This is an absolute marketing machinebecause not only are you doing deals dayafter day, you are constantly plantingseeds for future deals.

If you take the time to follow up with mo-tivated and semi-motivated sellers, youwill make more deals and buy more prop-

erties with absolutely no competition forthese properties whatsoever. Its a win-winsituation for you and the sellers.


Kathy Kennebrook941-792-5390

[email protected]

www.MarketingMagicLady.com

www.Facebook.com/Kathy.Kennebrook

Kathy Kennebrook is a speaker,author and has been activelyinvesting in real estate since 1999,Kathy currently resides in Bradenton,FL and is known as the Marketing

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Ithought this might be a good time to explain why a seller will be better off sellingtheir property they have never personally lived in if they were to give the investor/buyer seller nancing terms instead of the seller getting all cash for their property.

When you are negotiating with a seller who thinks they want all of their money at clos-ing you know isnt thinking very clearly and it is your obligation to inform them whyyour seller nancing offer will always be better for them than if they were to get all cashat closing.

Lets think about why I said the seller will always be better off taking your terms dealrather than getting all cash for their property, especially if they are planning to use themoney as part of, or most of their retirement plan. Most people want their retirementincome to last as long as possible. The key words in this example are a property theyhave never lived in they are selling. Let me do a simple example of the difference of aseller getting all cash at closing, and giving seller nancing terms to their buyer. For thisexample I want to use simple math to show you how to negotiate with a seller who isstuck on getting all cash when your seller nancing offer will be better for them.

Example: The seller can sell their property they have never lived in for:

$100,000.00 (cash after closing costs).They will pay Long Term Capital Gains Tax (15%): - $15,000.00Seller will net: $85,000.00 after tax.

Lets Recap

$100,000 Sale PriceLess $15,000 Long Term Capital GainsEquals $85,000 Net Proceeds from Sale of Property

Lets say our Seller Needs $750.00/mo to supplement Their Retirement Income!

And, their bank will pay: 1.5% interest (Use the (I) key on your nancial calculator).

They need income each month: $750.00/month (Use the (PMT) key on your nancialcalculator).

Their deposit will be: $85,000.00 (Use the (PV) key on your nancial calculator).

Some day their balance will be: $0.00 (Use the (FV) key on your nancial calculator).

How many months will their money last? Next, solve for the number of months themoney will last for the sellers retirement plan by pressing the (N) key on your nancialcalculator. This will show you and the seller, that their payments will run out after 122Months! This is 10 years and two months when all of their money including interestearned will be gone and their retirement income stops.

Why Would AnyoneGive Seller Financing

Terms?By Larry Harbolt

creative financinG is kinG
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If The Seller Were to Give Seller Financing Terms:(Installment Sale)

And the Buyer/investor agrees to pay:.. 4.5% interest (I)Seller needs income each month: .......... $750.00/month (PMT)

The Note Balance will be: .................... $100,000.00(PV) from the buyer

Someday the Note balance will be: ...... $0.00 (FV)

How many months will the income last? Solve for (N)?

When calculating the numbers in the second example, you can see the sellers paymentswill run out after 184 Months, which is 62 months longer than the rst example andwhy would any seller not want 62 more months of income? (184 months 122 months= 62 more months) from the same deal?

The extra money the seller will receive by giving you seller nancing terms will total($750 X 62 Months =$46,500 more dollars over 5 more years of income), simply be-

cause the Seller was willing to give Seller Financing. This is why I say your offer withseller nancing terms will always be better in the long run for any seller who has neverlived in the property they are selling! The seller will only be required to pay the taxesdue from a seller nancing deal on the 12 monthly payments they receive in any calen-dar year, not all in the year of the sale if they get all cash for their property.

I feel this is one of the best negotiating strategies all investors can use to convince anysellers who have never lived in the property they are selling and want the income fromthe sale to use as their retirement plan. Remember any seller who is getting all of thesale price for their property at closing who has never lived in the investment propertyMUST recapture all of the depreciation they have taken over the time they have ownedthat property in the year of the sale. They must also pay long term capital gains on that

property in the year of the sale. The long term capital gains are calculated on the differ-ence between what the seller paid for the property and how much they sell the propertyfor times 15%. Then you must remindthem that their Bank probably isnt pay-ing more than 1/2% to 1% or less if theydeposit it in their local bank for their re-tirement plan.

When dealing with a seller who is sell-ing a property they have never personallylived in this is a great way to help con-vince the seller your seller nancing of-fer will be much better than if they were

to get all of their money at the closing.This is a valuable lesson you never wantto forget.

Happy Investing,

Larry


Larry Harbolt727-420-4810

[email protected]

www.LarryHarbolt.com

www.Facebook.com/Larry.Harbolt.7

www.Twitter.com/LarryHarbolt

Larry Harbolt is the nations leadingcreative Seller Financing expert aswell as a popular national real estatespeaker and teacher whose time-

tested strategies and nuts and bolts teachingstyle has helped thousands o aspiring real estateentrepreneurs realize their nancial dreamswith little or no money and without the needor credit. Larry has been successul creativelybuying and selling real estate or over 30 yearsand has written numerous popular articles andreal estate courses. Larry also has been running ameetup group in St Petersburg, FL or real estateinvestors or over 13 years.
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Fighting Over Credit Card LienReleases on Short SalesBy Kimberlee Frank

foreclosures Gone wild

Working on short sales is al-ways exhilarating when youreceive updated title work

which shows there are additional liensagainst the property. Many Realtors, In-vestors and Short Sale Negotiators arentknowledgeable or prepared to ght theght against Credit Card Liens on shortsales. I recommend that the rst thingyou do when working a short sale is toorder a title commitment which will do

a search to see if there are any liens onthe property. Are you aware that thetitle companies also do a name searchfor your Seller and Buyer? When a namesearch is done against the Seller, anyoutstanding judgments or liens show upon title. In addition, the title company isto order a lien search against the prop-erty for water, sewer, and code violationswhich cost approximately $140. Due tothe cost, this additional lien search isdone right before closing. I always rec-

ommend that the Realtor or the Investormake a personal call to the water, sewerand code violation departments as soonas they start negotiating their short sale.By making the personal call, you canminimize some costs versus have the titlecompany search for you. Some countiesprovide this information online. Howev-er, dont depend on your inexperience ofchecking liens on the property, I wouldhighly recommend that you contact theCounty Department and talk to a liveperson for conrmation.

After a name search is run on the Seller,if there are any outstanding credit cardjudgments they will have to be paid offat closing in order to give clear title to theBuyer. Unfortunately when dealing withcredit card judgments, you have to dealwith attorneys that represent the creditcard companies. Many attorneys are notaware of how a short sale is done. Theyare only driven to get the Seller to paymoney for a full satisfaction or get 50%

of the balance for a partial release whichallows the Seller to sell the house but stillbe responsible for the difference.

Right now I am ghting this battle. I havea property wherein the Seller purchasedthe property with a Chase Mortgage inher own name. She transferred the prop-erty into the Trust as she had attendedtoo many seminars and assumed this wasthe right way to do it. Unfortunately,

when she did she didnt include the mari-tal status of all parties on the Deed so wehad to chase the previous seller to clear uptitle by signing an Afdavit stating theirmarital status. NOTE: To all investorswho are preparing their own paperwork,make sure that all parties have the mari-tal status of all parties. The property wasoriginally homesteaded so it pulled in thehusband as having an interest pursuant tothe guidelines of the title company. Thehomestead exempt was lifted and placed

on another property now making this aninvestment property. However, becauseshe was married at the time of the pur-chase, the title companys underwriterwill not insure the property unless allliens are released. This also included theliens against the husband, even thoughhis name is not on title.

In addition to shortsaling the 1st lien, I have6 additional liens to negotiate partial re-leases which would release the liens againstthe property but the seller and the hus-

band would still be responsible for the dif-ference. LISTEN TO THIS: The short salelender is Chase and is awarding the Seller$30,000 as an incentive to do a short sale!!!Since their loan was taken out in 2007, Ibelieve that this loan has all the mistakesas cited in the www.60minutesovertime.com Robo signing incident. The short salelender normally does not allow the Sellerto contribute any funds towards lien re-leases except this lender is allowing thesum of $500 per lien release to be paid out

of the incentive just to get the deal doneThe short sale was approved for February25, 2013 and the short sale lender will notgive us an extension until we provide themwith a Letter of Direction from the Sellerstating that each lien holder would receive$500.00 paid from Sellers $30,000 incen-tive and copies of each of letter stating thatthe liens will accept the $500.00.

I am dealing with Citibank (credit card

that is in 3rd position as a lien holder thatis owed approximately $32,000. I havespoken twice to the attorney to get themto accept $500. They have denied it twiceeven tho

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