the profit newsletter for atlanta reia - september 2012

7/31/2019 The Profit Newsletter for Atlanta REIA - September 2012

1/322012 Atlanta REIA, LLC All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher. http://AtlantaREIA.com

Atlanta Real Estate Investors Alliance SEPT 2SEPT 2012

continuedon p8

Imagine. You have a hot lead in yourhands that could make youthousandsin the next 30 days. Tens of thousands.

Appears to be a decent house. Needs a lit-tle updating. Good neighborhood. Greatschools.

But the owner tells you hes talked toother investors. He tells you, Dontbother to come if all youre going to dois make a low offer.

Sodo you go? Even if youre going tomake a low offer.

The answer is yes. Always yes.

Youll go because youll get a yes to youroffer. Youll be prepared. Youll do yourdue diligence and analyze the numbers.And unlike the other investors, youll havea tool that will explain the numbers, ex-plain why your offer is reasonable. Yourtool will negotiateforyou. In fact, you willbecome the sellers advocate. Youll try to

make the numbers work, for both of you.

Even if your offer is tens of thousands lessthan the seller wants out of his house, youwill get them to say Yes.

Heres why. Having an objective basis foryour offer makes the negotiating processmuch easier. So when you take the time toexplain the numbers and the logic behindyour offer, the seller both understands andappreciates it. Youll differentiate yourselfbecause most other investors dont take thetime to do explain their offer.

Andthe biggest benet of walking throughthe objective basis for your offer is that youget aseries of yeses, or agreements. So when

you ultimately make your offer, the onlylogical answer is Yes.

Lets take a minute and review some ba-sic concepts that will lead to that ulti-mate Yes.

Heres a basic real estate truth: you makeyour money when you buy. You only realize it

How o Ge a Yes o Your OfferBy Don DeRosa

An agreement cannot be the result of an imposition ~Nestor Kirchner

2012 Atlanta REIA, LLC All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher. http://AtlantaREIA.com

PLEASE NOTE: Our next Atlanta REIA Main Meeting is being held on September10th due to the Labor Day Holiday. The Main Meeting is also moving to theCrowne Plaza Ravinia Hotel located at 4355 Ashord Dunwoody Road in Atlanta.This will be our new meeting place each month until further notice.

Alana REIA, LLC2700 Braselton Hwy, Suite 10-183

Dacula, GA 30019

P: 678-701-7160 F: [email protected]://atlantareia.com

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404-996-1099tojoin

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MAIN MEETING

Monday, Sept 10thCrowne Plaza Ravinia Hotel

4355 Ashord Dunwoody, Atlanta, GA

5:30pm - 9:00pm

How to Get a Yes to Your OerBy Don DeRosa ....................... ....................... ....................... ... 1

Atlanta REA Welcomes AquaGuard Foundation SolutionsBy Jef Nix ....................... ....................... ....................... ........... 2

About Atlanta REIA.................................................................4

The 5 Most Common Reasons Why Real Estate Investors Fail TodayBy Larry Harbolt ..................... ....................... ....................... ... 5

Is This House a Deal or No Deal?By Russ Hiner ...................... ....................... ....................... ....... 6

No More Excuses or Not Having a Mobile Marketing Platorm!By Mike Barnes ....................... ....................... ....................... ... 9

The Truth About Securitized MortgagesBy Bob Massey ....................... ....................... ....................... . 11

Just How Smart is Co-signing a Debt? Part 2By Erven Kimble ...................... ....................... ....................... . 12

What About George?!By Jim Hitt ...................... ....................... ....................... ......... 13

Housing Inventory Down Prices Moving UpBy Deborah Harris.................................. ....................... ......... 17

The Fellow InvestorBy Michael Vazquez ....................... ....................... ................. 18

Real Estate + The Internet = The Perect Marriage Part 3By Tony Pearl ...................... ....................... ....................... ..... 20

How to Sell Houses in a Down Real Estate Market or FullMarket Value!By Robyn Thompson ...................... ....................... ................. 21

So Sue MeBy Kathy Kennebrook ..................... ....................... ................. 23

Signatory Authority For Your ClosingsBy Attorney Craig Halperin..................... ....................... ......... 26

Foreclosure Tours: Fun, Inormative and a Fast Track to Invest!By Chris Littleton............................ ....................... ................. 28

Membership Application ......................................................30

Meeting Calendar .................................................................31

Calendar o Events ................................................................32

IN THIS ISSUE

Don will be speaking at our Atlanta REIA Main Meeting on Monday, September 10th and will be

back again on Saturday, September 22nd or a Full Day Workshop where he will teach you how to

nd and evaluate an abundance o leads, determine your exit strategies, structure the deals, negotiate

with your sellers and get the paperwork completed quickly and easily to make doing successul deals

easier than you ever thought possible. See http://atlantareia.com or more inormation.
http://www.meetup.com/atlantareia/http://www.youtube.com/user/atlantareia/https://twitter.com/atlantareiahttps://www.facebook.com/AtlantaREIA



Atlanta Real Estate Investors Alliance SEPT 2

Business MeMBer spotlight

AquaGuard has been associatedwith Real Estate Investment As-sociations for many years. They

are sensitive to the wants and needs ofinvestors because of their real estate in-volvement with due diligence periodsas well as what is trying to be accom-plished for either the seller or buyer. The

options for repair can be very different.AquaGuards written price protectionguarantee insures investors get the ab-solute best repair with the best nation-ally backed transferable warranty in theindustry at the absolute best price.

The AquaGuard mission statementreads: To create a positive, growth ori-ented, team environment allowing in-dividuals to improve and promote theirquality of life through the opportuni-ties within the company achieving thehighest standards for all in our industry.Through these goals we will out shineour competitors with professionalismand integrity, delivering the highest lev-els of customer service and quality work-manship available to far exceed our cus-tomers expectations. Says owner, TomDiGregorio, Even though we are the mostaward winning company in our industry, wecome to work each day building our reputa-tion and never relying on it.

AquaGuard is an independently ownedand operated company in Marietta,Georgia. Wanting to build a companythat stood out in the contracting indus-try, Tom DiGregorio founded his com-pany on award winning principles likehonesty, integrity and caring.

AquaGuard is a member of the Na-tional Association of Waterproofingand Structural Repair Contractors

(NAWSRC). The company has a na-tionally certified contractor on staff.Also, they are proud members of theGreater Atlanta Home Builders Asso-ciation and the Better Business Bureau(BBB). AquaGuard received the BBBsTorch Award for Market Place Ethicsfor six years in a row and for CustomerService in 2009 and 2010. You canfind them on Trustdale.com, a greatconsumer web site. AquaGuard is also

are the Home Reports best pick intheir industry for twelve consecutiveyears and recipients of the Consum-ers Choice Award for business excel-lence in our industry for eleven years.These are just a few of their esteemedmemberships and awards. Since 1995AquaGuard has gained the respect andthe business of thousands of home-owners throughout the metropolitanAtlanta area and they look forward tothe opportunity to gain yours.

AquaGuard offers a wide range of wa-terproong and foundation repair ser-vices for the residential and commercialmarket. They specialize in transformingwet basements into dry healthy livingspaces and converting crawlspaces intodry damp and mold free storage ar-eas. The company also repairs cracks inpoured walls as well as all types of struc-tural repair from foundation settlementto cracked or bowed walls, and sagging

oor joist. AquaGuard offers competitive rates, quality workmanship and re-liable and timely service with a nation-ally backed transferable warranty, mostlife of the structure. AquaGuard has theability to satisfy all of your waterproof-ing and foundation repair needs withguaranteed satisfaction.

AquaGuard Foundation Solutions581 Webb Industrial Drive

Marietta, Georgia 30062770-419-9111http://www.aquaguard.net/

Comment on this article online athttp://atlantareia.com/?p=17631

Atlanta REIA WelcomesAquaGuard Foundation Solutions

By Jeff Nix, Director of Business Membership

Je Nix678-776-8861

[email protected]

www.acebook.com/je.nix

Je Nix is a ounding member oAtlanta REIA and serves as Director oBusiness Membership. Contact Jeor more inormation on BusinessMemberships. Je is also the owner/operator o Atlanta Carpet Services,Inc., which has been serving thereal estate community throughoutMetro Atlanta or over 20 years.


3/32

Is this really possible? Real estate expert, Don DeRosa says 15 hours a week is all you need to build shortterm cash ow and long term wealth by investing in real estate.

Imagine taking any seller lead and creating a protable, winning deal making thousands o dollars in

proftwhere you thought there was none. Wouldnt this be nice? No more wasted marketing dollars

No more wasted phone calls. No more wasted time.

I you want to learn how to make more and work less by investing in real estate, be sure to join DonDeRosa or a ull day workshop How to Make $20,000 in 30 Days Tools, Tactics & Strategies to Create Winning Dealson

Saturday, September 22nd rom 8:30 AM to 5:00 PM at the Crown Plaza Ravinia Hotel in Atlanta, GA.

Don will share the state-o-the-art tools and techniques he uses to evaluate and structure dealsso you can work less, earn moreand spend your quality time doing what you want, when you want and with whom you want. Youll learn

Would You Like to MakeMore by Working Less?

How to Make $20,000 in 30 Days WorkshopTools, Tactics and Strategies to Create Winning Deals

September 22nd rom 8:30 AM to 5:00 PMCrowne Plaza Ravinia Hotel, 4355 Ashord Dunwoody, Atlanta, GA

HHow to get your phone to ring o the hook with HOTleads within 60 seconds for less than $25!

HHow to put a tenant in a house and still make $20,000beore you even buy the house!

HThe number one thing that will get your houses sold FAST!

HThe Secret to creating passive income of $350 or moreper month without using any o your own money and

with NO management on your part!

HHow to become a mind reader to nd exactly whatthe sellers hot buttons are so you can crat a deal theseller wants to take!

HHow to use Dons patented Green means GO, Red meansNOtools to negotiate oryou so that you never let youremotions talk you into making a bad deal!

HAll this and so much more!

PLEASE NOTE: Workshop price is good or 2 people limited to spouses, children, partners & signicant others. Guests who

join Atlanta REIA between September 1st 10th can attend the workshop or FREE. When joining Atlanta REIA, please

indicate you want to attend the workshop at no charge.

Register Online athttp://20Kin30Days.AtlantaREIA.com

GoldMembers

$19.95

SilverMembers

$29.95

Guess$49.95

2 for 1 EarlyRegisraion Special
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www.Facebook.com/AtlantaREIAKeep up to date with our latest opportunities by joining us on Faceboo

LEGAL DISCLAIMER: Atlanta REIA, LLC promotes practical knowledge of real estateinvestment though education, discussion and networking. The information, views andopinions expressed in the publication do not necessarily reect the views, policies andopinions of Atlanta REIA, LLC or any of its members and sponsors, nor does mentionof certain trade names, products, services, individuals or organizations imply endorsementby Atlanta REIA, LLC or its members or sponsors. The information presented in thispublication is made available for informational purposes only and is not to be construed

as nancial or legal advice which should only be obtained through a competent attorney,accountant or other qualied professional advisor. Atlanta REIA, LLC does not pre-qualify,evaluate, endorse, guarantee or warranty any particular deal, service, company, or person.Atlanta REIA, LLC recommends you perform your own due diligence and seek appropriatelegal, accounting, or other professional advice before making any investment. AtlantaREIA, LLC disclaims any and all liability for any actions or inactions taken by readers ofthis informational material or as a result of communications from or to its ofcers, directors,employees, contractors, partners, members, sponsors and afliates.

2700 Braselton Hwy, Suite 10-1Dacula GA 30019

P: 678-701-7160 F: 770-216-1E: [email protected]: http://AtlantaREIA.com

Atlanta REIAs mission is to help insure our members real estate success by providing afordable, quality real

estate investing education; requent, un real estate networking opportunities; and ongoing community outreac

programs to help build, renovate and repair homes or needy Atlanta amilies while improving our local communit

Dustin GrinExecutive DirectorP: 678-701-7160F: 770-216-1560E: [email protected]

Christine GrinAssistant DirectorP: 678-701-7160F: 770-216-1560E: [email protected]

Je NixDirector o Business MembershipP: 678-776-8861E: [email protected]

Gordon CattsDirector o Programs, Leader o Movers & Sh akers,Atlanta REIA South & Mountain REIAP: 404-454-3567E: [email protected]

Alan McDonaldDirector o AVS, Leader o the Beginning InvestorsGroup & Cashfow GroupP: 770-369-0446E: [email protected]

Joe ThompsonLeader o Haves & Wants Meeting and SpeedMarketing SessionP: 770-403-3227E: [email protected]

Karen BershadDirector o Membership & Leader o theSmall Business GroupP: 770-356-1234E: [email protected]

Leslie MathisLeader o Atlanta REIA WestP: 678-895-1460E: [email protected]

Reginald JacksonLeader o Atlanta REIA SouthP: 404-427-8797E: [email protected]

Russ HinerLeader o Creative Deal Structuring Group andMastermind GroupP: 404-660-4289E: [email protected]

Aaron McGinnisLeader o the Gwinnett County GroupP: 404-788-3625E: [email protected]

Steve BrownLeader o Cash Cows Commercial GroupP: 770-378-6235E: [email protected]

Don DeRosaLeader o Mobile Real Estate Rockstars GrouP: 678-410-7352E: [email protected]

Rock ShukoorLeader o I Love Marketing GroupP: 678-938-4776E: [email protected]

Michael VazquezLeader o Spanish Investors Networking GroP: 678-951-9222E: [email protected]

Bob MasseyLeader o Short Sale & Foreclosure GroupP: 706-816-9820E: bob@oundationpublishingllc

Kristin MackDirector o Savannah REIAP: 817-851-7788E: [email protected]

Mark GaleyPresident o Fuller Center o AtlantaP: 404-867-3258E: [email protected]

2012 Atlanta REIA, LLC All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher. http://AtlantaREIA.com
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continued on p27

Creative FinanCing is King

T oday I am seeing all too manyinvestors making mistakes thatare costing them thousands ofdollars of prot every year simply becausethey lack focus. Any truly successful in-vestor will tell you that you must focuson what you are doing and become thevery best at what you have chosen. Hav-ing been an investor for over thirty years,I learned there are ve common reasonswhy many investors fail to make more

money, especially in todays market ofproperties with mortgage balances higherthan what the properties are worth andthousands more properties in the foreclo-sure process.

Believe it or not, there are many moreproperties that are not over-leveragedand have a possibility of being bought ata fair price without wondering if a Bankwill take your low-ball ALL CASH offer.To be able to better understand what the

problems most investors face I want totalk about what I believe are the ve mostcommon mistakes most investors make.

1. They Dont Know Where to Findthe Good Deals

Most investors dont know what to lookfor. All too many investors are lookingfor deals in the same places all of theother investors are looking. If you wantto set yourself apart from the other in-vestors in your area you must have a dif-

ferent strategy in the way you are buy-ing your properties.

The smart and seasoned investor knowsthat not all of the properties you canmake a substantial prot from are in thenice neighborhoods. The smart inves-tor rst builds a buyers list of potentialbuyers for the properties they nd in allareas of town. Pretty houses are not theonly way to make money in todays realestate market.

2. They Dont Know How toThoroughly Analyze Every Deal

Most investors today wouldnt recognizea good deal if they saw one. Most wastetheir time chasing unprotable deals.Most investors today wouldnt know agood deal if it hit them in the face.

Most use the PFA (Plucked from Air)or SWAG (Scientic Wild Ass Guess)

method to determine how much theyshould pay for each property. Thesemethods of determining the price youshould pay for a property is unacceptable.

3. They Dont Know How toEectively Negotiate Each Deal

Most investors today dont understandIts All About the Numbers of eachdeal. Always calculate the numbers ofeach deal before making an offer to buy

any property.

They havent gured out that they cantborrow money from banks anymore. Banksarent lending to real estate investors today.

They believe paying ALL CASH is theonly way to buy real estate. This too is afallacy that simply isnt true. Not everyseller wants all cash, some want monthlyincome or dont want to be hit hard bytaxes when they sell.

They dont know how to Cold Read thepeople they are negotiating with. If youcant instantly build rapport with the sell-ers you stand little chance of creating aprotable deal.

4. They Dont Know How to MakeProtable and Sensible Oers

Most investors today are afraid to makean offer. All too many investors who

The 5 Most CommonReasons Why Real EstateInvestors Fail TodayBy Larry Harbolt

Don Miss OurAlana REIA

Live Webcasshttp://AtlantaREIA.com/Webcasts

Webcast schedule is subject to change.

See http://AtlantaREIA.com/Calendar

or the most up to date webcast schedule.

1st Tuesday

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Training / Business

Opportunity Webcast

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Whats Hot in

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how to Be a real estate investor

There is a house located in a work-ing class neighborhood. The Re-altor is offering it for $60,000. It

is a 3/2 bath house in average condition,10 years old and 1200 sq ft with a one carcarport. Taxes are $950/year. Insurance is$850/year.

The repairs are quoted by a shade treecontractor for $9,500. This would get

you paint inside and out, carpet, countertop, and door knobs. The roof is 10 yearsold, the hot water heater is 3 years old,and the bath room is 10 years old. I guresince owner does not recognize that thehouse smells like smoke and cat urine, the3 cats must be smoking 2 packs day andusing the whole house as a litter box. Thehouse has a oor plan of a split foyer, av-erage schools, and average shopping. Youlive 45 minutes from the house. You likeyour house and you are not moving. The

houses in the subject house area are sell-ing for about $59.16/ SQFT. The rents inthe area are $ 875/ month. Your situationis you have $12,000 for a down payment,repairs, and everything.

What should you offer? To answer thesequestions...answer these questions. Whatis your exit strategy? How much cash doyou have? How good looking are you?(This allows you to get more money) Doyou know people how have cash?

First off this does not t Home Buyersof GA business model so I would make

an offer $28,500. I would pay cash (Howboring!) I would wholesale it only.

Your exit strategy: Buy and Hold. Thepayments are $397.38/ mo PITI cashow with vacancy rate 10%, manage-ment 10%, or $95.00/month. $950-$587.38= $287.62/mo cash ow. Thetotal cash in the deal is $26,250 (Downpayment $16,000 repairs $ 9,500 plus

holding $750). The ROI is 13.1% cashon cash. This is why you need to get intothe game! This why the foreign investorsare coming to Atlanta. You dont havethis money, so this is not an option foryou unless you get creative.

Your exit strategy: Lease Option. Samepayments, same cash ow the differenceis you get some of your money back fasterlets say $3,500 option fee. This changesthe ROI to 27.2%. You have this money

so this is an option for you! The houseneeds a lot of work so HBG would passon this lease option opportunity. For agreat Lease Option you need to get inclean... really clean ...no repairs justcleaning.

Your exit strategy: Buy, Fix and Sell.Chances of this working are slim. Theprice point and the After Repair Valueis $70,000. You will do all of the workand lose money. But that is a discussion

Is This House aDeal or No Deal?By Russ Hiner

PRADO

Join us at the

Every Thursday at 1:30pm

@ 5 Seasons Brewing located at5600 Roswell Rd in Sandy Springs at the Prado.

continued on p22

Join Russ a he Creaive Deal

Srucuring Group on Sepember 5ho learn more abou deal analysis.
http://www.qualityansweringservice.com/atlantareia


7/32

Buy a home like this at a

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4. Have access to our "in house" contractors to complete repairs for you.5. Use our selling agents to sell your beautiful renovated home.

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when you sell. And heres a basic businesstruth:knowledge is power. Taken together, itmeans that before you go to the house tomeet the seller before you ever make anoffer youd better know what that houseis going to cost you and what you can sell

it for. It means gathering information anddoing lots of due diligenceup front.

I know this is pretty basic. But a lot of in-vestors are still using the old formulas, likeMAO Maximum Allowable Offer, to eval-uate and make offers on houses. The troubleI have with those formulas is that they donthelp you explain the objective basis for youroffer to your seller, which doesnt help youget that series of agreements that will leadto acceptance of your offer.

So if you do your due diligence, youve al-ready looked up the recently sold housesin the neighborhood. Most sellers base theirestimate of their homes value on the forsale yers in the neighborhood. When aseller tells you that their 3BR/2BA house isworth X because the house down the streetis selling for X, you will politely tell themthat the housewas listed at X, butsoldforY, a lower price.

Immediately you build credibility, because

you will say it nicely, but authoritatively.You establish that youre a professional,and that you use objective information,and not just opinion or SWAGs, to evalu-ate their house. (And, you increase yourcredibility by pulling out your iPad and us-ing the Zillow app to show all of the housesthat were sold in the area!)

After you build rapport, youll ask if theyllshow you around the houses (getting ayes.) Youll take notes on all of the repairsthat need to be done. Youll ask a lot of

questions, eliciting yes responses. (Arethese the original appliances? Has it been awhile since the house was painted?)

Meanwhile, you will explain to the sellerthat you renovate your houses with extraspecial touches to make them stand outandsell quickly. Then you will sit down andwalk through the numbers with the seller.I have an evaluation tool that I use, but youcan write the numbers down, or create yourown spreadsheet.

Heres how the conversation goes when Ireview the numbers using my evaluationtool, the Easy Offer Maker:

First, I explain that this is a tool that I useto evaluate houses, so I can account for allof the costs associated with the property inorder to ensure that there will be a prot

on the back end. Because of course, I wontbe living in this house; Im buying this withthe intent to make money on it.

I ask, Youre ok with that, right?

This is important. You need to make surethat the seller is ok with the fact that yourein this for a prot before you go any far-ther. This may seem intuitive,since youre an investor, but youstill need to make sure they un-derstand it, and get them to say

Yes they understand it.

I explain that my company hascertain criteria I have to meet andthresholds that I have to pass inorder to make it an opportunitywell pursue. Taking the timeto do this is important. It showsthat Im a solid professional, thatI have an objective basis to whatIm doing. Im not just holding your ngerup in the air to see which way the wind is

blowing. Another benet is that it also setsup my competition, so that if they dont gothrough a similar process, the seller mightnot see them in a similar professional light.And it gets the seller to continue to say yes.

Then I walk through the numbers that gointo my evaluation. And as I go over thenumbers, I get agreement, or a Yes, as Idescribe what goes into each one.

I review the four expense areas:

acquisition costs holding costs repair costs (based on my walk-

through of the house with the seller so there should be no surprises!)

selling costs

Each time, I get them to agree that thoseare the costs that go into buying, rehab-bing, holding and selling the house. Theseare real costs that I must consider if this isgoing to be a protable deal for me. Theres

nothing magical to it and it makes it veryclear why my offer is what it is.

My offer naturally falls out of these num-bers. And if the seller has agreed with eachnumber as weve reviewed them, then myoffer is just one more Yes in the processbecause its all based on the numbers. Its

me and the seller against the numbers.

I can only offer as much as the numbersallow.

Unless the seller goes against every yesthat theyve uttered during the negotiationthe only logical conclusion is that my offeris a valid one. And usually, theyll take it.

Its all in the numbers. And the beauty isthat if I get my yeses, then Ive got a prof-

itable deal.

Comment on this article online at http://atlantareia.com/?p=17639

YES To Your Offer cont. from p1

Don [email protected]

www.MobileRealEstateRockstar.com/Atlanta-REIA

www.Facebook.com/Don.DeRosa

www.Twitter.com/DonDeRosa

Don DeRosa was recognized

as one o the nations top 21real estate investors in theNew York Times bestsellerThe Millionaire Real Estate

Investor. Don, who is a ull-time investor,trainer, and mentor, is the rst to oer hiscomplete investing system on a mobileplatorm. Don teaches investors how toMake More and Work Less by being moreefcient, productive and competitive,leveraging mobile technology and appson the iPad, iPhone, Android and othermobile devices.




MoBile ready MarKeting strategies

Have you created a mobile friend-ly version of your website(s)yet? If not, why not? Your

customers are not going to wait until youdo. Statistics are warning us of this! Withmore people accessing your website/blog,Twitter posts and Facebook posts usingtheir smartphones, they are also visitingand seeing your marketing with a smart-phones as well.

If your website is not easily readable ona mobile phone, youre in trouble sincemany (or most) mobile users will simplyleave your site and take their businesselsewhere. More than half of all userssay they wouldnt recommend a businesswith a bad mobile site. So even if youdont think you need a mobile version ofyour site, you could, in fact, be losing cus-tomers without one.

Having a mobile friendly website, amongst

other things, will render your images dif-ferently, helping on load times. Readabil-ity is also another huge concern. Your av-erage mobile user will not want to spendmuch time trying to nd the content thattheyre interested in.

The art to designing a good mobile web-site is to eliminate all the content thatis not all that important for users to seeon a smartphone. Consider providing aclean and easy way for customers to tapto call, tap to email or tap for direc-

tions which will help the overall func-tionality and effectiveness of your web-site on a mobile device.

Did you know that 80% of all customersabandon a mobile site if they have a baduser experience? According to Google, 60%of users expect a mobile site to load in threeseconds or less. 70% of the world now ownsa mobile phone and in the US, its 9 in 10people. Seriously, you have no more excusesfor not having a mobile website!

Having a mobile website will also openyour doors to literally hundreds of new andcreative ways to drive trafc to your mo-bile platform. Using QR (quick response)codes will allow you to create unlimitedcampaigns that drive people to specicmobile friendly landing pages with callsto actions that work! Itworks because a prop-erly created mobile land-ing page is similar to a

squeeze page, effectivelymaking people take ac-tion by entering theirname and either enter-ing an email or phonenumber (or both) formore information.

Once you have a mobilefriendly website, it onlymakes sense to nextconsider Text Message

Marketing. It is easierfor most to build a mar-keting list using text message marketingthan building an email list. Using a goodtext message marketing platform will al-low you to create polls, questionnaires,VIP clubs, special announcements and/ornotications. This will all help to keep youclients engaged and you will give them agreat user experience by sending them toyour mobile friendly landing pages.

Using QR codes and text message mar-

keting would be almost worthless with-out a good mobile website that you cansend people to. With QR code and a goodtext message marketing platform you cancreate unlimited landing pages that youcan use for any and each of the campaignsyou create!

The most important part of all this is thatIt is not your customers job to remember thatyou are in business and using the righttools in the most effective ways will al-

low you to keep in contact with currentand future clients and prospects that mayhave otherwise forgotten about you.

So, when considering your mobile web-site, understand that this will should alsoinclude other mobile marketing tools that

you can use in concertwith your new mobilewebsite. Combining QR(Quick Response) codes

and a Text MessageMarketing campaignwith friendly mobileready landing pages wilmake you look like asuperstar, not only withyour clients, but to yourpeers as well.

So heres to makingyour website mobileand taking advantage o

the latest, coolest tech-niques that will keeppeople on your mobile website longerRemember, keep it simple and keep itlightweight, and Ill appreciate browsingyour site the next time Im wandering theinternet with my mobile phone!


Mike Barnes863-221-1764

[email protected]

www.MobileReadyTeam.com

Always taking advantage o the latest InternetMarketing possibilities, Mike Barnes hasbecome recognized or his innovations usingSocial Media, Text Message Marketing, QRcode Marketing and Mobile Website Designand Marketing.

No More Excuses for Not Havinga Mobile Marketing Platform!By Mike Barnes


10/32

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continued on p29

Alana REIAMember Benefts

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Members Can Watch Webcast Replays24/7/365 on AtlantaREIA.com

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and Weekly Meeting

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The Truth About

Securitized MortgagesBy Bob Massey

The majority of mortgages in theUnited States are sold into se-curitized trusts called REMICS

and are not held as in-house or portfo-lio loans. All sub-prime loans are sold offin this way and have been since the late

1960s. The practice became especiallycommon in the 1990s when the writingof sub-prime loans became more preva-lent. Many prime loans also wind up soldas mortgage-backed securities.

REMIC is short for Real Estate MortgageInvestment Conduit. They are invest-ment vehicles which hold commercial andresidential mortgages in trusts and thenissue securities representing an undividedinterest in these mortgages. Investors,such as insurance companies, pensionfunds, and wealthy private investors, buythese mortgage-backed securities. Thesecurities are assembled into pools calledtranches according to their level of risk.Higher risk mortgage-backed securitiescommand higher rates of return. REMICsare managed by a trustee, often a largeinvestment bank, and are governed bypooling and servicing agreements (PSAs).

Often the note that is supposed to backthe security never makes it into the secu-

ritized trust, or arrives after the date setfor completion of the sale of the REMICas set forth in the PSA. Clear violationsof the PSA could cause the trustee to bened, to lose special tax status, or to besued by investors.

In many cases the PSA does not allow sub-stitution of a performing loan with a non-performing one, and yet that is exactlywhat happens when foreclosure judgesenter orders and judgments against loans

in the pool. The anonymous investor orinvestors, who are never named as partiesin the foreclosure suit, are left holding thebag for defaulted loans within the pool.

The trustees, on the other hand, have

been paid many times over. Each note canbe resold in the form of a security insidethe mortgage-backed trust as many as30 times. If the mortgage has defaulted(90 days delinquent or more) the govern-ment backing from Fannie Mae, FreddieMac or FHA, or private mortgage insur-ance,will have paid back the full valueof the loan, even if it has been paid downsubstantially by the homeowner.

The homeowner in default has absolutely

no awareness most of the time that theholder of the note has been paid off al-ready and yet the lender/pretender lend-er is also suing for the home and possiblyfor a deciency judgment after the home-owner goes into default. The homeownerprobably has never received notice thatthe note was quite possibly sold even be-fore the loan was underwritten by inves-tors of a mortgage-backed security. (Theinvestors probably also dont realize thatthey bought a note even before it was un-derwritten, an action that was quite pos-

sibly counter to the rules of the PSA.)

From the homeowners perspective theone they owe the loan to is the lender whopresented them the mortgage papers, andyet very frequently that bank was just apretender lender for the mortgage-backed security trustee ensconced insome Wall Street investment bank andtheir anonymous investors. As securiti-zation expert and attorney Neil Gareld




Business By the BooK

Erven Kimble404-606-8909

[email protected]

www.PeopleWhoBuyHouses.com

www.Facebook.com/EAKimble

Erven Kimble is an accomplished pastor, teacher,author, community leader, licensed ChristianCounselor and Real Estate entrepreneur. Ervenis a visionary that has aithully served as theSenior Pastor o a local church in Lilburn, Georgiaor 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.

Just How Smart is Co-signing a Debt?By Erven Kimble

By denition, a co-signer is obli-gated to pay when the other per-son defaults on their obligation.

A promise to pay another persons debtis an entrapment by ones own words.

So when the borrower fails to make thepayments, the creditor can come afterthe other person that has signed andagreed to be responsible for re-paymentof the loan. In such cases, the borrowerreceives the benet and the pleasure,and the co-signer receives the obligationand the burden to re-pay the debt.

Even if the borrower pays on time, thefull amount of the unpaid loan willnegatively count against the co-signersdebt-to-income ratios (DTI). This DTIformula is used to help determine if aperson has more debt than they can han-dle. So, since the co-signer is also respon-sible for paying off the loan, that debtmay hamper their ability to get a mort-gage, other nancing or other benets

that depend on agood credit score.

The scripture in-dicates an urgen-cy to correct this

nancial trap. Ifyou have made a

pledge of surety (co-signed a debt), orpledged to pay if someone else fails topay; go and quickly negotiate a settle-ment or pay it off. Then it would be wisefor you to develop a strong dislike for thethought of co-signing for anyone.

In our last article, we discussed otherconsequences of co-signing. It was madeclear this can be a very difcult decision

to make if the person needing a co-signeris a family member or close friend withserious needs. In conclusion, no matterhow compelling the reason, or how greatthe need to co-sign, if you cant afford

(or not willing) to, pay off the entiredebt without any regrets, dont sign thenote. Just say NO!

Lets explore a couple of ways to help aperson who may have desperate needswith little or no nancial means or col-lateral:

#1 Determine what amount youcan aord to give.

The simplest and often the best way ofhelping someone who has a monetaryneed is to give what you can. This ap-proach preserves friendships, protectsagainst unintended negative conse-quences of damaged credit, and express-es a genuine concern. When helping inthis way, make it plain that no repay-ment is expected from the person thatis helped. If that person chooses to payback the money, then ne. If not, thereshould be no love lost between partiesand no busted relationships.

#2 Oer to help in other ways.

Offer to assist by rst listening care-fully to their needs and give whateverwise advice that you may have. For ex-ample, you may be able to give of yourtime to transport them, or allow themto use your transportation. Or perhapsyou can offer temporary living quarters,food, clothing or other resources neededthat may be generating the desperate

need for nances. Consider introducingthem to someone or some organizationyou may know that can help or have ad-ditional resources.

Thoughts to Ponder

1. Are you willing to use Godswisdom to address co-signing?

2. Would you consider a student loanan exception to this rule?a. If so, why?b. If not, why not?

3. Have you thought about otherrecourses that may help someonein need?


Part2

Scripture

indicates an

urgency to

correct this

fnancial trap

My child, if you have put up security for a friends debt, or agreed to guarantee the debt of a stranger; if you have trapped yourself

by your agreement and are caught by what you said follow my advice and save yourself, for you have placed yourself at your

friends mercy. Now swallow your pride; go and beg to have your name erased. Dont put it off; do it now! Do not rest until you do.

Save yourselflike a gazelle escaping from a hunter, like a bird eeing from a net.

(Pr 6:1-5)(NLT)




Fast traCK to selF-direCted ira investing

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continued on p16

The Dream

George L., a client of American IRA,LLC, wanted to purchase a 56 unit, 1.2million dollar mobile home park insidehis IRA account.

The Details

George was determined to make thisdream a reality and worked hard innegotiations with the owner of the mobilehome park nally settling on these details:

Purchase price $1,200,000

Down Payment $200,000 from anold 401(k) plan

Owner nancing $1,000,000 at 6%interest

A Word o Caution about Loansinside an IRA

The American IRA account specialistinformed George that the ownernancing needed to be non-recourseto qualify for IRA nancing.

The account specialist explained furtherthat non-recourse means the propertyis the only collateral; neither George L.

nor his IRA can be held liable.

George went back to the table with theowner and was able to negotiate non-recourse terms for the owner nancing.

George is Sel-Employed Why Does That Matter?

It is important because George L.s self-employed status means he qualies for aSolo 401(k).

Even though a self-directed IRA anda self-directed Solo 401(k) work in asimilar fashion, there are some signicantdifferences.

UDIT applies to an IRA and does notapply to a Solo 401(k) on purchasemoney debt.

This saves thousands of dollars thatwill stay in the Solo 401(k) andgrow tax free.

Purchase money debt is debtthat is originated at the time ofpurchase.

If George L. adds a secondmortgage to the Solo 401(k),the second mortgage WILL besubject to UDIT.

The American IRA account specialistexplained the differences to GeorgeL. and then asked him to meetwith his professionals to determinewhether a self-directed Solo 401(k)was the right tool for him.

George L. met with his professionalsand decided a Solo 401(k) was theright tool for him.

Living the Dream!

George L. successfully completed thetransaction purchasing the mobile homepark. George was now the proud ownerof his 1.2 million dollar, 56 unit mobilehome park!

Time to Renance?

In January 2012, George L. told his

What About George?!Like Many of Us HeDreams Big Will His

Dream Come True?!Jim Hitt, CEO of American IRA, LLC


14/32
http://www.networthrealtyusa.com/http://www.limaonecapital.com/


15/32

Financing with all Cash

Purchase price: $ 84,900.00Rehab Costs: $ 33,000.00Closing Costs: $ 1,000.00Insurance Costs: $ 333.33

Lender Fee: $ -Borrower Cash for Project: $ 119,233.33Contract Sales Price: $ 191,000.00minus Borrower Cash for Project: $ 119,233.33minus 6% Realtor Fee: $ 10,500.00

Proft: $ 61,266.67

Cash Remaining or Additional Investments $ -

Return on Investment 51%

Financing with a Lima One Capital Loan

Purchase price: $ 84,900.00Rehab Costs: $ 33,000.00Closing Costs: $ 1,000.00Insurance Costs: $ 333.33

Lender Fee: $ 3,804.00Borrower Cash at Closing: $ 23,780.00Loan Amount: $ 98,924.00Contract Sales Price: $ 191,000.00minus 6% Realtor Fee: $ 10,500.00minus Down Payment: $ 23,780.00minus Loan Amount: $ 98,924.00minus 5-months Interest: $ 4,284.00

Proft: $ 53,512.00

Cash Remaining or Additional Investments $ 91,169.33

Return on Investment 191%

Decatur, GA Example

Beore Ater

Lima One Capital

http://www.limaonecapital.com

404.908.0080

NetWorth Realty

http://www.networthrealtyusa.com

678.321.6061

Call one of us now for more information
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Keep up to date with

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joining us on Twitter at

www.Twitter.com/AtlantaREIA

Soluions ha helpyou Make More.

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MobileRealEstateRockstar.com/Atlanta-REIA

professional that interest rates are lowand that he was thinking of renancingthe mobile home park that was held bythe Solo 401(k).

George kept in mind that

The loan had to be non-recourse

He needed to consult with atax specialist because he wouldlose the exclusion from UDITon any refinance of the mobilehome park.

He needed to determine if theinterest savings was worth theUDIT that would now be dueon a balance of $850,000.

George L. met with his taxspecialist and decided not torenance.

Key Point

The IRS allows an IRA to borrowmoney, however the borrowed moneyis not part of the retirement plan sothere is a tax assessed call UDIT. UDITapplies only to the borrowed portion of

the transaction. (As mentioned earlierpurchase money debt inside a 401(k) isexempt from UDIT).

Example: 100,000.00 purchase price60,000.00 from the Ira and 40,000 froma non-recourse loan. The UDIT incometax is assessed only on the 40,000 thatwas borrowed after taking all the normaldeductions that are available to realestate investors, such as depreciation,interest, maintenance etc.

Now you may be thinking, Why do I wantto pay taxes inside my IRA? There are threereasons to subject your IRA to UDIT:

Leverage is the key to real estateinvesting.

All prot made outside an IRA aretaxed at every level.

Prots inside the IRA willcompound tax deferred or tax free

depending on the type of accountyou have until they are distributedat the age of 59 .

Disclaimer

American IRA, LLC does not give investmentadvice. They do offer guidance as to the rulesand regulations related to their self-directedaccounts and the benets of different accounttypes so that their clients can take thatinformation to their professionals to discussthe ramications of various decisions on their

individual situation.

For more information, or to explore youroptions, call American IRA today at866-7500-IRA (472). We look forward toworking with you.


What About George? cont. from p13

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.
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Housing Inventory Down Prices Moving UpBy Deborah Harris

View all associated charts and comment on this article online at http://atlantareia.com/?p=17625

MarKet Matters: MaKing statistiCs MaKe sense

If you are one of those investors thathave been waiting for the bottom,youve missed it! Foreclosures are

seeing multiple offers with up biddingbecause these are the properties that areperfect for investors wanting high cap ratesfrom rentals. Monthly sales were consider-ably stronger in January through Maycompared to both of the last two years andJune sales will likely be equal or higher

once lagged closings are processed. Theusual seasonal low points in January werehigher in both 2011 and 2012, possiblyindicating a rmer base for continued salesgrowth following distortions caused bygovernment purchase incentive programsin 2009/10. While sales have increasedduring 2012, the number of Active List-ings in Atlanta are at a 12 year low.

The good news for the Atlanta Real es-tate Market is that 2012 Metro Atlantas

home prices reversed months of declines.As noted in Chart 3, for the rst timesince the second quarter 2010, the secondquarter median sales price increased by5.9 % (the 2010 exception occurred dur-ing the period of government purchaseincentives early in 2010, after which theeffects of a large inventory of distressedproperties again took over) Monthly me-dian sales prices reached another newlow point in January, 2012 (Chart 4). Astrong, steady increase during 2012 willbe watched to see if the lower inventory

and increased competition for inventorywill continue to overcome the effect of a

large quantity of distressed properties andallow prices to continue to rise.

Median Sales Prices shown monthly, byyear, illustrates the degree to which priceshave declined compared to other recentyears. For the rst time, median salesprices have increased over the previousyear (Chart 5).

Short sales and foreclosure sales add upto make distressed sales, shown here inChart 6 as a percent of total sales. Thepercentage of second quarter 2012 dis-tressed sale transactions was -6.5 per-centage points lower than in secondquarter 2011 and down by -15.2 pointsfrom rst quarter 2012. Shown by pricerange, Chart 6 demonstrates the degreeto which distressed sales are present inall price groupings. Nearly 3 of every 4sales in the




FroM ContraCt to Closing

Michael Vazquez678-951-9222

[email protected]

Michael Vazquez has been oeringproperties to real estate investorssigniicantly below market value since2006 in both Texas and Georgia. Michaelis always looking to or more investors towork with.

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Up to this point the sellers that havebeen mentioned had no interests in be-ing investors. They usually saw the ex-tra property as a burden of some sort.Now negotiating with a fellow investoris different because they know the valueof their property and/or its potential.When negotiating with an investor youneed to be at the same experience level.If you are new to real estate investing andare trying to fake it til you make it in

negotiating with seasoned investors, theywill see right through you and move onto another buyer. Admit that you are newto investing and the selling investor mayeven cut you a deal to assist you in get-ting started. There are two distinct sellerinvestors one of which are investors sell-ing to retire or just wanting out of invest-ing and then there are investors that arejust checking to see what they can get fortheir property but are impartial to wheth-er is sells or not.

The selling investor that is selling to retireand/or stop investing is the seller you arelooking to buy from. The selling investorin this category that is selling to retire hasalready spent his prots in his mind and

wants the money ASAP to make it a real-ity. They are not going to take low balloffers but they will take a reasonable lowoffer to realize their dream sooner. Thisseller may also still love being an investorbut due to his age can no longer deal witheverything that comes along with it. Inthis instance, you may have found your-self your rst owner nanced property.Remember, you never know unless youask. The selling investor that no longer

wants to be involved in investing is usu-ally because all the things that could havegone wrong did go wrong. They want tosell and sell fast! However, because theyhave already spent money correcting ev-erything that went wrong they are tryingto make up for it on the sales price. Donot present your all cash, no contingencyoffer to this seller over the phone. Pres-ent this offer in person and be prepared tosupport your offer. You will then need toexplain to this seller how much more he

will potentially loose if he does not sell.

An investor that is not attached to hisproperty is a smart investor. If you askany successful investor if he has any prop-erties for sale he will probably reply with,

All my properties are for sale for theright price. You can save yourself plentyof time if you can identify this type oseller early. This selling investor is happycash-owing his properties and now andagain will test the market to see what he/she can get for the properties while theyare between tenants. If you realize this is

the seller type you are dealing with, justmove on. They will be there again in afew months when another property be-comes vacant. By move on I mean stopnegotiating but do not loose contactEventually, at least we hope, this sellerwill become the seller type we are look-ing for and we will be there to make theright offers.

There are tons of scenarios in which aselling investor decides to sell but theseare the few I have seen to be the most

common. The one thing that still remainsconstant is to make a win-win offer andexecute.


The Fellow InvestorBy Michael Vazquez
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19/32

For more information or to register onlinehttp://ForeclosureTour.AtlantaREIA.com
http://atlantareia.com/news/events/2-day-foreclosure-tour-on-september-29-30-2012/http://atlantareia.com/news/events/2-day-foreclosure-tour-on-september-29-30-2012/http://atlantareia.com/news/events/2-day-foreclosure-tour-on-september-29-30-2012/




Join us or

LAtE NItE NEtWORKINGat the Meeting-Ater-the-Meeting

We meet at the Tilted Kilt Perimeter located1155-B Mount Vernon Highway in Atlantaright ater our Atlanta REIA Main Meeting.

PERIMETER

Real Estate + The Internet= The Perfect MarriageBy Tony Pearl

pearls oF wisdoM

continued on p25

Part3

Hello again! Picking up fromwhere we left off last month,we were discussing how al-

most everyone now has a smartphone,email, Facebook, and they read theirtext messages within 5 minutes of get-ting it. We also discussed how most oth-er types of traditional media are on theway out: Yellow Pages, newspapers, etc.Basically, everyone is using the internet

these days.

So if youre in business, you need to notonly BE on there, you also need to posi-tion yourself correctly AND take advan-tage of the emerging technologies thatyour prospects are using to possibly ndyou. This includes having an optimized,converting website. Please look at Part 2of this series to see what needs to be onyour site. Contact me if you need helpwith this.

So, Id suggest you get that website setup rst. Use the ideas that were presentedearlier to get your content together, andALWAYS try to answer the main ques-tion your visitor is asking himself as helooks at your site: Whats in it For ME?

After you have your site together, youcan take that content and use it to setup your Facebook Fan Page. Again, doa Google search on a recent post to see

how this is done, because theres notenough space in this article to teach you.But basically, youll just sign in to yourexisting Facebook account & set up aFan Page from there. Look for the links.

Quick FB Tip: Get some fast likes byposting on all your friends walls, lettingthem know about your new Fan Page,and asking them to Like it. This will

help get the word out AND gather a fewlikes so that when your prospects ndyou there, theyll see that other peopleLike you, so they should do the same.Yep, this is whats called Social Proof,boys & girls! And its what Facebook isall about.

Moving on, head on over to Twitter(http://Twitter.com) and set up an ac-count over there, too. Tie it in to yourwebsite. You might want to do the same

with YouTube and Pinterest, too.

Use This To Set Up Your Website: Idsuggest you set up your website with thehottest, best platform available today:WordPress! With WordPress, makingand managing websites is a snap. Sure,theres a learning curve, but its wellworth it. And you can easily add con-tent, change the appearance, and get

trafc with a good Wordpress site. Youcan get started for free AND learn howto use it at http://wordpress.com, buteventually, youlldenitely want to haveyour own hosted domain & use the ver-sion at http://wordpress.org (software)Again, contact me for help with this ifyou need it.

I Know What Youre Thinking: Word-

press website. Facebook. Twitter. You-Tube. Pinterest. Holy Crap! Thats a lot ofstuff to manage! And youre right. It is

Especially when you add Text MessageMarketing & Emails to it all.

But guess what? Ive got the hook up foyou! After you have all your content to-gether and your website & social mediais set up, youll denitely need to takeadvantage of the technology available

to save yourself a TON of time.

If you do it the old way, heres whatyoud have to do: Write somethingvaluable for your prospects. Add itto your website. Log in to Facebook& post it there. Log in to Twitter &post I mean Tweet it there. Log into YouTube & do it there. Log in to You get the idea.

But what if there was a way that youcould write something ONCE & blast it

out on ALL those places (once you havethem set up) simultaneously? And whatif making that ONE post would bringyou even MORE targeted TRAFFIC toyour sites, and therefore attract MOREPROSPECTS AND LEADS to you likesteel to a big-ass magnet?!

EXTREMELY IMPORTANT, TIME-SAVING TIP: Theres actually a lot o




Is this depressed housing marketmaking you nervous? Are youthinking that you cant make

money when real estate prices havedropped by as much as 50%? Do youthink it is impossible to sell a housein todays market? If you answered yesto any of these questions, this specialreport was written for you.

Many real estate investors are shy-ing away from the ugly house busi-ness right now because they fear sell-ing houses in a depressed real estatemarket. We have all heard the horrorstories of real estate investors who losetheir shirt because they get stuck witha property they just cant sell or rent.

I am here to tell you that this doesnot have to happen to you, but thereare nine rules you can never violate.Selling a house starts before you everbuy it. I start focusing on marketingstrategies as I pull up in the drive-way for the very first time, not afterI purchased and renovated the house.Most untrained investors never focuson selling until after they have theproperty renovated and by then it istoo late for most. Let me explain whyin more detail.

Step #1 for selling a house starts withbuying the right house that the major-ity of rst time buyers would want tocall home. The easiest mortgage moneyfor a rst time buyer to qualify for rightnow is for a FHA, VA or ConventionalFinancing. The good news is the downpayments are low and the seller can paymost of the prepaid expenses and closing

costs. The bad news is the buyers needgood credit. Buyers with good creditscores are much more critical about thehouse they pick to call home. Real estateinvestors must be very selective with thehomes they are buying, renovating andselling to ensure they can sell for a largeprot.

So here is the list of my eight houses tonever buy:

1. Never buy a house on a busy streetbecause most rst time buyers havepets or plan on having a family andthey will not buy on a busy street.Inexperienced investors who can buyhouses dirt cheap on a busy streetthink they are great buys but theyare not. They are tough to rent andhard to sell.

2. Never buy a tiny house that is less

than 1000 square feet. With a hugesurplus of houses for sell right nowbuyers have a ton of homes to pickfrom and the buy the bigger homesOver 85% of the buying populationwants at least three bedrooms.

3. Never buy a house with a small master bedroom. I will never buy a home

where the master bedroom is smallethan 12 x 12. Most rst time buy-ers already own the bedroom furni-ture. The furniture stores push theking size bed, huge dresser, amourand two night stands for a low package price and that is what rst timebuyers purchase. If all these itemswont t in the master bedroom othe house I am looking to buy, thenI wont buy the house at any price.

Many inexperienced investors strug-gle with this. I have made this mis-take early in my real estate careerand I got the privilege of making 14monthly payments on a house that Icouldnt rent or sell because the mas-ter bedroom was too small.

4. Never buy a house in the war zoneNobody wants to rent or buy in ahigh crime area. Contractors dontwant to work there either.

If you are new to an area and you arenot sure about the crime rate contactyour local police department and askfor the undercover detective that isassigned to that area and they wilbe able to provide you with the crimestatistics for the area.

5. Never buy a house that is mixed useor next to a commercial area. Mixeduse properties require substantiadown payments of 20%-30% fo

How to Sell Houses in aDown Real Estate Marketfor Full Market Value!Robyn Thompson, The Queen of Rehab

We meet at the Total Wine & More located at124 Perimeter Center W in Atlanta at 3:00pm

beore our Atlanta REIA Main Meeting.

PERIMETER




Domain Names or just

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Domain Names

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Russ Hiner404-660-4289

[email protected]

www.RHiner.com

www.Facebook.com/1RHiner

Russ has been investing in realestate in Atlanta Georgia since 1981.His company currently controlsapartment buildings and single-amily properties in Georgia and

other states. His ocus is on raising privatecapital through Hedge Equity, LLC.

Russ invests everyday. His knowledge andexperience is current in the market. He iscapitalizing on the needs, wants, and desireso the customer. He has a deep level oexperience in building relationships withvendors, investors, tenants, sellers, andqualied buyers. He has the knowledgeto negotiate contracts, manage rentalproperties, and make his co-investors wealthy.He enjoys taking properties which are virtuallydestroyed, renovating them, and creating abetter community.

for another day. You dont have enoughmoney for this, so this is not an optionfor you! No private money lender in theirright mind would fund this.

Your exit strategy: Buy, Fix and Hold.There is a loan program out there 203kprogram that will provide the funds as arst time home owner. Home Path has aprogram also (I did research on it and wasable to nd out you as an investor coulduse the program.) This allows you to buyit and rehab it with investor money. Youcan get the rehab money rolled into theloan. This might be an option for you!

Your exit strategy: Buy, Fix and HoldUsing Hard Money. You dont haveenough money to make down paymentand the repairs. The loan will not coverthe total amount to do the deal.

For the investor who wants to get out oftheir job in the next 5 years, this is nota deal.

The offer to make this a deal is $28,500.


nancing which eliminates the ma-jority of buyers. Remember youwant your property to appeal to themasses not the minority. Most rsttime buyers dont want noisy com-mercial businesses near their home.Stay away from properties near low

income housing, high tension powerlines, train tracks, and sewer treat-ment plants.

6. Be careful if you are consideringbuying a property with no garage.I have purchased 303 houses duringthe past 13 years. I actually wentback and looked at how long it tookme to sell houses with garages vs.houses without garages. My aver-age holding period to buy, x andsell a house with a garage is 121

day. My average holding time forhomes without garages is 239 days.Yes, that is correct it takes almost 4months longer on average to sell aproperty without a garage.

7. Never buy a house where you cannot correct functional obsolescence.Examples would be a house with lowceilings, narrow stair case, bad lay-out, because the ow of the rooms isweird or tiny bathrooms or kitchensthat cant be expanded.

8. Never buy an entry level housein a ood zone because the insurancecost will be high. Most rst time buy-ers are extremely sensitive to theirmonthly payments. The extra premi-um for ood insurance can make themonthly payment much higher thanother houses in the same price range.

So what is left to buy you ask. As a sea-soned investor in a depressed real estatemarket, I can tell you that I am being

more picky about what I buy than ever. Iam only making offers on two out of tendeals that come across my desk because Iwant to sell at lightning speed. The fast-est properties to sell are four bedroom

+ houses, over 1500 square feet in greatschool districts with garages, formal din-ing rooms and big master bedrooms.


Robyn Thompson352-351-8061

[email protected]

www.RobynThompson.com

www.Facebook.com/Robyn.Thompson.169

www.Twitter.com/QueenORehab

Robyn Thompson is the nations

leading expert on buying properties

at deep discounts, renovating them

at lightning speed and selling them

quickly or huge chunks o cash.

Robyn has rehabbed over 320 properties in her15 years of investing and has actually rehabbed

as many as 51 houses in one year. She takes

her business very serious and runs it like a ne

tuned machine and not just a hobby.

Deal or No Deal cont. from p6
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MarKeting MagiC triCKs

Throughout your life, no matterwho you are or how you earnyour living, you need to be con-

cerned about protecting your assets. Yourassets may include your home, vehicles,jewelry, boats, artwork, properties andwhatever other assets you accumulatealong the way. After all, you work hardfor what you have and there are alwaysgoing to be people out there who wantsomething for nothing. The more money

you have the greater a target you become,and youll want to protect yourself fromfrivolous lawsuits.

In the real estate investing business this isespecially true. The real estate business isone of those where you will be piling upassets quickly. If you are holding proper-ties and you have tenants or tenant/buy-ers in your properties, this can make youan even bigger target for possible law-suits. For this reason alone you want to

be holding your assets in another entity,such as a land trust in order to keep yourname off of public record. The main ad-vantage to purchasing properties in landtrusts or other entities is anonymity. Ifeverything you own is in your own name,it makes it easy for someone who wantsto sue you to nd out what you have. If aplaintiffs attorney looks on public recordand it appears that you have nothing, youare much less likely to be sued.

If you are holding properties in land trusts,

corporations or LLCs this prevents yourname from showing up on public records;making it appear that you dont person-

ally own anything; and that is the wholeidea. You want to hide your assets fromcreditors and predators. There are a lot ofpeople out there who want what you have,but they dont want to work to get it.

As you begin to grow your real estate busi-ness, you need to begin thinking aboutprotecting yourself and your assets alongthe way. Make sure you begin workingwith a reliable real estate attorney who

can help you grow and protect your busi-ness. Make sure they understand the im-portance of purchasing properties in landtrusts or in entities that do not representyou personally. If they dont want to dothings your way, nd someone who will.

In addition, you want to be thinking aboutplacing other items of value that you own,such as bank accounts, jewelry, vehicles,boats or artwork in property trusts. Thiswill protect these assets from showing up

should you be sued for any reason.

You also need to be working with reliablea nancial planner and a CPA in yourbusiness in order to protect you assets byinvesting them well with a diverse port-folio. Your CPA will also help you holdon to your assets by nding ways for youto legally pay fewer taxes on the incomefrom your business. The real estate busi-ness is one of those businesses where thereare a lot of great tax deductions for youif you structure your business correctly.

You also want to think about diversifyingyour assets so that you dont have all youreggs in one basket. As the markets con-

tinue to uctuate this becomes even moreimportant for protecting your assets.

Your CPA and your nancial planner canalso help you structure your assets so thatif something happens to you, your assetswill be distributed to children, grandchil-dren, charities or whomever you choose ina way that is uid with the least amountof taxes and stress. This w

the profit newsletter for atlanta reia - september 2012

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