Investor - Memberize · 2009-04-01 · investments and purchasing lucrative deals at well below their true market value. At 28 years old, J.T. is known as the “Real Estate Phenom”

InvestorMetrolina

APRIL 2009VOLUME 12, ISSUE 4

Metrolina REIA is Charlotte’s ONLY Non-Profit Real Estate Investor Association www.MetrolinaREIA.org

In This IssueHow to Make Money with Foreclosures in Today’s Market . . . . . . . . . . . . . . . . . . . 1

Support Your Vendor Members . . . . . . . . . . . 4

Success at Last! . . . . . . . . . . . 6

Commercial Real Estate is Taking a Beating Right Now . . . 8

Foxxonomics . . . . . . . . . . . . . . 8

Large 1031 Company Declares Bankruptcy . . . . . . . 11

PHP Saturday . . . . . . . . . . . . . 13

Events Calendar & Sub-Group Meeting Info . . . . . 15

As J.T. Foxx says,

“A wise man learns from his

mistakes and a genius learns

from other peoples mistakes”!

April’s Main Meeting Presents J.T. Foxx

How to make a Fortune in Real Estate in the Middle of a 700 Billion Dollar Bailout

J.T. Foxx embodies the American Dream. Departing Canada in 2003 with nothing but a rusted out Ford pick up truck, he arrived in America with $940 and the clothes on his back. Now just 5 years later, he has bought and sold over 500 real estate

properties, started several very successful entrepreneurial business ventures and has become a internationally recognized speaker. All by mastering investing principles that are current with today’s market.

J.T. is most recognized as the founder of The Millionaire Success Puzzle and popular na-tionally syndicated weekend radio personality of the “J.T. Foxx Show”. His radio program features such celebrity guests as Senator McCain, Secretary of State, William Cohen, Jesse Jackson, Donald Trump, George Ross (Trump’s right hand man), and celebrated authors like Robert Kiyosaki, author of Rich Dad, Poor Dad, Bob Proctor from The Secret and Mark Victor Hanson & Jack Canfield from the Chicken Soup for the Soul series.

Even though his recognition and success in business and radio continues to rise, J.T.’s true passion is teaching and reaching out to those who dream of achieving their goals. J.T. teaches the same practical real estate ideals he utilizes daily himself and that actu-ally get results in today’s rapidly changing marketplace. J.T.’s goal is to change the real estate landscape by teaching powerfull up to date real estate investing techniques which real estatae investors to take their game to the next level.

A few of his topics include:

•Howtodobetween1-100dealsayearinthemiddleofabailoutmarket•9waystosellandrentyourproperty10timesfasterintoday’smarket•Learn5secretstoinvestsafely,securleyandveryprofitableintoday’sirrationalmarket.•6waystodeveloptherightmindsetfortoday’smediadrivennegativeenvironment.•Findoutthe13realestateno-no’sthatwillvirtuallyguaranteeyounotgetthedeal.Learntoavoid

them and use them to your advantage to close your deals easier!

J.T. is beloved by his audiences for his results oriented, no-nonsense approach to real estate and to life – but most importantly because he gives them the tools to make more money in today’s market and to make a powerful impact in this world for the better.

See you there!! Thursday, April 16th at 6:30pm

2 www.MetrolinaREIA.org

Metrolina Investoris a Publication of

Metrolina Real Estate Investors Association

122W.WoodlawnRd.,SuiteD-101Charlotte,NC28217(704)523-1570

www.MetrolinaREIA.org

Executive DirectorJC Underwood

President: TomLatimer [email protected]

Vice President: Tim Spyridon [email protected]

Secretary: Sherry Fredenberg [email protected]

Treasurer: Ki Shin [email protected]

Board MembersDonna BordeauxCherrathee HagerLeonHumphreyTyler McCracken

Jay ParkerDoug Shields

Kimberly Shelton

Metrolina REIA Board is run by volunteers who are committed to the mission of the Metrolina REIA. Elections are held annually each November.

Newsletter Design and ProductionRaynell Swanson

[email protected]

The mission of the Metrolina Real Estate Investors Association (Metrolina REIA) is to actively promote wealth building with real estate through education, mentoring and networking. The Metrolina REIA is dedicated to helping it’s membership excel in the real estate investment arena in Charlotte, NC and the surrounding Metrolina area.

The Metrolina Real Estate Investors Association, Inc. is a professional organization dedicated to providing networking, and education programs for real estate investors.

The information presented at our meetings, on our website, and in our publicationsshouldnotbeconstruedaslegalortaxadvice.Legaladviceshould be obtained from an attorney. Tax advice should be sought from tax professionals.

The Metrolina REIA exists to expose its members to ideas that may be beneficial as they plan their business. We do not render legal, tax, or investment advice except in educational discussions and disclaim all liability for the actions or inactions taken or not taken as a result of communications from and/or to its members, officers, directors, and any employee.

The opinions expressed by the speakers and published articles are not necessarily those of Metrolina REIA.

Each individual should consult their own counsel, accountant, and other advisors as to legal, tax, investment, and economic matters concerning

real estate and other investments.

REIACharlotte, NC

Declaration of Metrolina REIA

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Suppor t Our Vendor Members! AccountingBordeaux & Bordeaux, Certified Public AccountantsChadwick Bordeaux, CPADonna Bordeaux, CPAPhone: 704-752-9845www.yourcpapartners.com/ Smith and Shin, Certified Public Accountants, LLCPhone: 864-322-8995Brandon Smith, CPA, MBAKi Shin, CPAwww.smithandshin.net

concrete ServiceSA&W Concrete Services, Inc.Phone: 704-843-4587Cary Williamswww.awconcrete.com

contrActorSLowery ConstructionPhone: 704-364-3234Chuck Lowery, Jr.

contrActorS con’tMr. Sandless - CharlotteAshley Allen Phone: 704-231-5311www.mrsandless.com DiSpoSAl ServiceSArrow Disposal, Inc.Phone: 704-467-7744Jerry Frakeswww.arrowdisposal.com eDucAtionLarry GoinsPhone: (803) 831-0056Larry Goinswww.larrygoins.com www.larrygoinsfreeoffer.com

National REIAPhone: 859-261-3335Rebecca McLeanwww.nationalreia.com

HArD Money lenDerSEquity Development Corp.Phone: 757-460-9096Milton Kalligaridis704-650-1072www.equitydevelopmentcorp.com

InvestwellPhone: 888-497-3239Jennifer Castaldiwww.investwell.com

South Street FundingPhone: 704-987-9393Bill Worsleywww.southstreetfunding.com

inforMAtion ServiceSCourthouse Retrieval SystemRon Ayers 704-526-9599 www.crsdata.com

inSurAnceLarry Hale InsurancePhone: 704-847-4500Larry Hale

MortgAge lenDerSCunningham & Company/ The Valeo-Croy TeamPhone: 704 488-1421Deanna Valeo and Todd Croywww.valeocroyteam.com

First Equity Funding,Ltd.Claude Stone704 617-4333

property MAnAgeMentCLT Property ManagementPhone: 704-529-RENT (7368)Allon Thompson, GRI, PHPCharles Lamere, Broker

Materna GrayPhone: 704-526-5966Rami Alkhatib www.maternagray.com

reAl eStAte BrokerSGenesis Realty CompanyPhone: 704-933-5000Gewn and John Chubirko

QuickMLS Realty, LLCPhone: 803-746-4841Carmen Cunha

reSiDentiAl & coMMericAl cleAningMarr Clean CorporationPhone: 704-556-7840Maria Ramirez

Self-DirecteD irAsEntrust Carolinas, LLCPhone: (828) 257-4949Sean McKay

Who is J.T. Foxx?J.T. Foxx is the founder and President of Get Rich

or Die Broke: The New Generation of Wealth and Success and the President of the National As-sociation of Real Estate Millionaires. Many know J.T. as a very popular weekend radio personality with the “J.T. Foxx Show”. This show features such celebrity guests as Senator McCain, Secretary of State, William Cohen, Jesse Jackson, Trump, and George Ross (Donald Trump’s right hand man), and celebrated authors like Robert Kiyosaki, author of Rich Dad, Poor Dad and Bob Proctor, author of The Secret.

Although his popularity and success on the radio continues to rise, J.T.’s true passion is continu-ing to invest in real estate and helping others. In fact, J.T. still spends 80% of his time managing his investments and purchasing lucrative deals at well below their true market value. At 28 years old, J.T. is known as the “Real Estate Phenom”. J.T. has ac-complished a remarkable feat by buying and selling over 500 properties and closing over $40 million in

real estate deals as a result. He succeeded with no money, no credit and no experience all within the last4yearsbytheageof27-inahotmarket.

Previously J.T. was flat broke and came to Chi-cago from Canada with the clothes on his back and his rusted out Ford pickup with 250,000 miles on it. J.T. knows what it is like to be hungry for suc-cess and because of this personal experience he is reaching out to those like him and others who dream of achieving their goals. J.T. is active in the real estate market daily, continuing to learn what will and will not work.

Unlike most of the “millionaire maker gurus” who no longer invest in deals, and spend the bulk of their time selling books and tapes. J.T. vows to change the industry by teaching people techniques that work in today’s market and help both new and active real estate investors make more money now.

Visit his blog at: www.jtfoxblog.com


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Success at LAST!... by Skip & Patty Koski

Lookingbackoverthelast6monthsorsoIcanseea lot of effort wasted, research that wasn’t necessary plus a whole lot of other mistakes that I am sure are made by other neophytes to Real Estate Investing and I marvel at the fact that in spite of it all we have finally actually become Real Estate Investors.

LastfallwehadthewonderfulfortunetomeetMs.Cherathee Hager, at a property she had on the market which was a rehab project in the best way. However af-ter actually viewing the property we had the good sense to realize it was a bigger bite than we could swallow at this stage of our expertise so we passed on it. We consider this event to be the starting point of our new-est adventure and a true turning point in our quest for a secure future financially. She told us about Metrolina REIA and invited us to come to a meeting. Wow, I can tell you that it has been a wonderful eye opening experi-ence to learn from guest speakers and other investors some of the many facets of Real Estate Investing. And though we are still novices I want to share a bit of our experiences so that maybe others can profit form them as well.

We had available a sum of money we wanted to invest and we began to search for properties local to our area. I would scan different sites on the internet that had properties and I also had a local real estate agent sending me suspects to check out. I learned where to go on the web to look up tax cards, gis maps, deeds, foreclosures, bank owned properties and a host of other information. The amount of real estate on the market today is just overwhelming. We had a goal of re-turn on investment, how much we wanted to spend and how much we could spend for rehabbing if needed. Un-fortunately for me I’m an engineer so I am very careful to examine EVERY aspect of something before diving in. This proved to be somewhat of a stumbling block in our pursuit of the “Perfect Investment Property”. I would get the basic information from the first source (whether our agent, or online) and then go to whatever other web based sources I thought I needed to go to before even beginning to make any sort of a decision on the proper-ty’s good or bad points. I think I averaged about 3 to 4 hours worth of analysis per property which I know now is way out of proportion to what you really need to do to locate a suitable prospective property. You might say I

wasavictimof“ANALYSISPARALYSIS”.Bydoingallofthe research I was reassuring myself that it was neces-sary so that I wouldn’t make a mistake and choose a bad investment. As a result, several properties that I now realize would have been excellent opportunities slipped away before we could even make an offer and some others that I finally saw were just horrible in so many ways that they were a waste of time to even con-sider. In other words I wasted a whole lot of time that could have been spent in a much more productive way.

So here are some tips from what I have learned;

1.DON’TOVERANALYZE!

2. Know your area you want to invest in.

3. When you find the basic information on a prospective property that sounds reasonable as an investment, go actually look at the property and check out the neighborhood.

4. If the property seems reasonable, the neighborhood meets your expectations and you feel comfortable with finding out more – THEN go for it.

5. Make an appointment to view the property in depth to confirm what you suspect.

6.Ifallthecriteriameetyourneeds,(purchase,rehab-ifneededandexitstrategies),MAKEANOFFERon the property that you are comfortable with.

I have to confess that it took me a long time to come to my senses and realize that if we were going to be successful we had to jump in and take some chances and this was inevitable. Remember, nothing’s guaranteed in life. I am happy to report that our adventure is moving along much better now and we are finally able to call ourselves Real Estate Investors.

Thank you Cherathee for introducing us to Metrolina REIA and thank you Metrolina REIA for your continuing support and education!

Skip & Patty Koski

SKIPATENTERPRISES,LLC


Five Big Mistakes New Investors Make

by Bill Bronchick

“Realestateinvestingfever”hashitlikeaplague.Zil-lions of “newbie” investors are jumping on the bandwag-on trying to make a profit after losing big in the stock market. I meet them all the time, and many are making big mistakes!

Mistake #1: Stock Market Mentality

You’dthinkafterlosing$7trillioninthestockmarket,people would have learned! Nope, they are making the same mistake, which is assuming that what happened yesterday will happen tommorrow. Nine of ten new investors I meet say they are interested in real estate because they saw someone else make money from the rapid appreciation of the market over the last few years.

But, buying real estate solely for short-term apprecia-tion is often a big gamble! If you buy real estate to hold for fifteen years or more, the chances are that you will come out on top. If you buy a property and flip it in with-in a year, you’ll probably do fine, too. And, despite the risk, many people can intelligently time the “boom” of a local market (or subdivision within a market) and make a profit. But, if you buy a rental property for full-market price with break even or negative cash flow, you’d better have a backup plan if the market doesn’t keep going up. Investing is a lot like surfing; if you don’t know how to ride the wave, you will drown!

So, should you refrain from investing if you think the market has peaked? Absolutely not! You can find bar-gain-priced properties in every market, even the hottest. You can find low-interest rate financing that will increase your cash flow, so if values drop, you still are covered. You can plan short-term (six to twelve months) because markets rise and fall slowly. And, if you keep a cash reserve for your business, you won’t sweat when the market tanks. You know that in the long run, real estate markets virtually always come back.

Mistake #2: Investing Blind

You’dthinkafterlosing$7trillioninthestockmar-ket people would have learned! Nope, they are making the same mistake--blindly buying real estate based on bogus advice or complete lack of education. Real estate is one of the few investments in which risk is directly proportional to knowledge.

con’t on page 12

Commercial Real Estate Taking a Beating Right Now! by J.T. Foxx

My predictions seem to be coming true, commercial real estate is taking a BIG beating right now. People always need a place to live but don’t really need a place to work. With so many mortgage companies & real es-tate office out of business, law offices downsizing and small business own-ers electing to set up home offices, the commercial real estate sector is seeing little life. In addition if you add the liquidity issues of the market it’s difficult to get anything done in this arena right now. Take GE for example theyboughtin2007whenthemarketwas already showing signs of major slowdown yet GE bought 9 proper-ties from Blackstone Group who had boughtthepropertiesfromChicagoBillionaireSamZell.The bottom line is that all of those properties are not lookinggoodnow.OneoftheirprizedpropertiesinOak-brook,Illinoishad16%vacancywhentheyboughtitandnow they are at 33% vacancy and climbing. My question is why is GE in the business of buying properties when there are the leaders in the world in so many other in-dustries but know nothing about real estate.

ButhereistheTURKEYQUOTEOFTHEYEARbyGECeo Jeffrey Immelt “Today I wish we had less exposure

to commercial real estate”. Duhhhhhh Really!

So I am not against commercial real estate if anything 2 years from now it is going to be the way to make huge

profits and where I am going to be steer-ing my business to. The only commercial I would do right are master lease op-tions and start get educated so when it turns you are riding the wave all the way to the bank. So here are couple of Real Estate tips;

Foxxonomics Rule # 1: If it’s a hot investment right now don’t buy

Foxxonomics Rule # 2: Never buy prop-erties on appreciation buy below market value

Foxxonomics Rule # 3: Go with the market gives you, don’t go against the current in the market like this, but create your own path instead

Foxxonomics Rule # 4: In this market you have to be very picky and only do the homerun deals.

Foxxonomics Rule # 5: In this market do not buy propertiesabove65%ofmarketvalue.Soifthe propertyisworth$100,000youwouldbuyforatleast$65,000orless

The 21st Century Guide to Investing in Real Estate in Today’s Market. When it comes to real estate, everyone has an opinion. TV analysts, newspaper writers, bloggers, and individual investors are all part of a machine that often gives out misleading and inac-curate information – which could explain why some never complete their first deal or never take their game to the next level. Real estate remains the profession in which more people than in any other have achieved their American dream and/or have become millionaires. Some might argue that my success in real estate at the level and speed at which I accomplished it is there-fore impossible to duplicate. This could not be further from the truth. In fact, my goal is to teach you how to become better than me, make fewer mistakes, be more

efficient, and more importantly, do it all by being your-self. Remember that a wise man learns from his mis-takes and genius learns from other peoples mistakes.

Who Was The First Real Estate Millionaire?

It is notable that America’s first millionaire was a real estateinvestor.Inthelate1700s,JohnJacobAstorwas a trader who made his money trading fur, silk, tea, andfinechina.Butinthe1830s,Astorstartedinvest-ing in New York real estate, and before long he became known as Manhattan’s landlord. He is probably one of the most dominant real estate investors of all time. In fact, when he died his estimated net worth was $20 million, which translates to approximately $450 Billion

con’t on page 10

Get Rich or Die Broke! by J.T. Foxx



April Landlord Association Meeting presents

Tax Reporting Tips for Your Rentals

We are pleased to announce that Donna Bordeaux with Bordeaux and

Bordeaux , CPAs, PA will be with us on Wednesday, April 8th.

It is that time of year again! We get to do our part in supporting the government spending! CPA Donna Bordeaux will be on hand to keep me from getting in trouble and to share some timely tips on tax treatment for rental property. Come on out and lets look at the ways you can report income from your rentals and your real estate business. As usual your registering will be appreciated www.metrolinareia.org! We will look at Schedule E, Schedule C, Depreciation, and anything else you would like to know about. Remember, its not taxes, its money, your money!

Our 2 forms for this month are:

I R S form Schedule E and Schedule C

Thanks! See you there!

Allon Thompson,

[email protected] • 704 201 9492

Please remember to register online! Also, please wear your membership badges. Guests are asked to observe our request to join once they have exceeded their 2 introductory visits.

• Full Service Property Management & much more! • Competitive Rates • Residential & Commercial

Contact us today for details!

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in today’s dollars. Astor’s story is not only inspiring but reinforcement that real estate will always be the great-est investment.

Don’t reinvent the wheel – make it go faster

Oneofthebiggestmistakesmanynewandactiveinvestors make is their unprecedented need to reinvent real estate. Although I strongly believe you must do business differently than others to succeed, I do not think you need to change the way the game is played. Just use what’s there, make the wheel go faster, and put your personal touch on it. If you are going to suc-ceed in the New Generation of Wealth and Success as it relates to real estate you need to abide my six prin-ciples of investing in real estate.

* Always buy properties below market value regardless of market conditions.

* Evaluate each real estate deal as if it were a business.

* Shoot for the long term, but evaluate and write down every exit strategy.

* A strong back office is more important than the property you buy.

* Don’t try to be anything but yourself.

* Keep investing in your education, no matter what

the cost, as long as it relates to today’s market. Knowledge and credibility are your keys to success.

* Investing in real estate with partners is the only way to go.

The secret to making money is making your money work for you, and in my opinion, real estate is the best way to achieve that. If the real estate can carry itself, enjoy the benefits of appreciation, and grow with part-ners you are well on your way to becoming a very big success.Bytheageof27,Ihaveboughtandsoldmorethan 500 properties in a four-year span without using my own money, and without credit or experience. That is nothing compared to what my students and I will ac-complish over the next two to three years, as one of the greatest times to buy properties below market value is upon us.

Remember successful people are willing to do what unsuccessful people won’t. Success is not a matter of chance but a matter of choice, this is the time to make your move and I promise you that great wealth and success are upon you. How do I know this? Well I still spend 80% of my time buying and managing real estate in today’s market and this is one real estate wave I want to ride all the way to financial freedom.

Get Rich... con’t from page 8

Having run a real estate investors association since 1994 with 650 members and having attended 50 ormore other associations around the country to speak at, I have a few observations and insights. If you want to get the most out of a real estate investors association, follow these 5 rules...

Get What You Can From Every Speaker

Some people are “offended” that speakers are selling something, insisting that the speaker reveal everything he knows about a topic in a 90-minute meeting.

Understand that everyone has something to sell, whether it is a guru selling a course or a minister sell-ing the “the word”, while passing around the collection basket. Everyone who speaks at a group has an “agenda”, otherwise he or she would not be standing on the stage speaking. Even the most hardcore “pitchmen” do offer some great ideas during their presentations, so you need to get past the “I’m not here to be sold” attitude and get what you can from the speaker. A speak-er cannot reveal everything he knows in 90 minutes,

Are You New at the RE Association? by Bill Bronchickotherwise he or she isn’t qualified to take the stage. So, you should expect a certain amount of stories, jokes, anecdotesandyes,asalespitchforsomething.Listencarefully, however, you might also learn something!

Respect Other People’s Time

Be willing to pay people money for other people’s time. You wouldn’t expect a doctor to let you take him out to lunch for a consultation, so why is an investor’s time any different? Keep in mind that most investors have paid thousands of dollars over the years for seminars and courses. Many feel that sharing information with others for free is simply unfair in that respect. And, most importantly, don’t waste other investors’ time trying to learn the basics. Undoubtedly, you have seen dozens of unanswered posts on investors sites from people askinggeneralquestionsthatcanbefoundina$15book. Goto thebookstoreandbuy10paperbackbooks and read them. If you are not willing to spend

con’t on the next page



Are You a Newbie?... con’t from page 10

SummitAccommodators,alarge1031exchangecompany declared bankruptcy in December 2008 on the WestCoast.SummitAccommodators1031Exchangefiledbankruptcybeforetheendoftheyearwith$13.6millioninassetsand$27.8millioninliabilities.Theyare$14.2millionshortincashowedtotheirclients.They operate in over 8 states in the western United States.

Summitisnottheonly1031companyintheUSthathas run into financial problems. Most people includ-ing real estate agents assumed that Summit depos-ited the funds in bank accounts insured by the federal government.Thisisthepracticeofmost1031accom-modators, but not all accommodators. Also, there are no government requirements or oversight agency or regulations to insure they do protect the clients’ money through depositing the money in a federally insured ac-count.

The1031accommodationindustryoperateslargelyunregulated. Summit was loaning money to Inland Capi-tal,some13.7million,whichinturnloanedonspecula-

tive real estate development. With the turn in this real estate market, Inland Capital clients cannot repay the loans to Inland Capital. Thus Inland can not pay Sum-mit and Summit can not pay the people that entrusted moneytothemina1031exchange.Manyoftheprin-ciples in the Inland Capital organization are the same asSummit1031Exchange.Theresultofthismessis a lot of people who are at risk of not getting their money; capital gains taxable liability since the money is not there, and purchase transactions that won’t close because there are no funds.

Do Your DUE DILIGENCE

As an investor or real estate agent be sure you know the company that is holding your money or your client’s money. Be clear about where the funds are held and what type of protection you have in the event of a prob-lem. What is the company’s philosophy of “escrowed” funds? Consumers are not protected in most states because of a lack of rules and regulations with regard tothe1031accommodations.Moststateshavezeroregulations and rules.

Large 1031 Exchange Company Declares Bankruptcy

$150andthetimetoread10basicbooks,youaren’tready to be an investor - period!

Let People Know Why You Are There

If you sit in the corner drinking coffee, you aren’t networking and marketing your most valuable asset... yourself! If your association does not have big name tags, make yourself one. Make it big and colorful. Have a statement about what you do and what you are looking for. There’s one guy at our association whose nametag reads, “The Mobile Home Guy.” Everyone knows him. Everyone calls him when they need to sell a mobile. Be creative and aggressive. Ask your association leader if it is permissible to pass out flyers - bring big, colorful flyers that read “I Have Hous-esToWholesale-CallMe”or“IAmLookingForRehab PropertiesOntheWestSide-CallMe.”

Get yourself a fancy business card and hand it out to everyone. And, don’t use the cheap computer-printed garbage, go spend $50 and get some nice double-sided cards that explain who you are and what you do. In short, if you show other investors you are serious about taking action, you will get their cooperation.

Join Membership Immediately

It amazes me how many people hesitate to join membership in their local real estate associations. For a few hundred bucks, you get access to one of the best resources you can find - other investors. Why spend all your time looking for the “right” mortgage broker when you can ask other people in the association? Why run ads in the paper for your wholesale deals when you can send an email to a dozen other investors you met at the association? Heck, even the fact that you are a mem-ber of the association will give people a reason to do business with you versus someone who isn’t a member.

I’ve been running a real estate investors association for 9 years and I can honestly tell you that I always go to the membership roll whenever I need a deal, a partner, a recommendation or money to borrow. Also, volunteer to assist with the meeting. Volunteers often get on the “in-side track” to becoming a board member, which gives youa lotof influence in theassociation.Offer towritearticles for the newsletter on your own area of exper-tise that may be related to real estate. If you are an experienced investor, offer to teach a beginner’s class or host a breakfast meeting.


True, it has a higher learning curve than investing in the stock market, but there’s no proof that having knowl-edge of the stock market reduces risk (just ask your mutual fund manager).

I read a comment on a real estate discussion group on the Internet. In response to an inquiry as to whether a particular seminar or training program was worth the money, someone answered, “Why waste your money on that stuff? Just use your money as a down payment and learn as you go.” This is probably the worst advice you could ever give a beginner. Money for deals is easy to find if you can find good deals. But, you won’t know what a good deal is without having first invested in your education! The more knowledge of investing techniques, financing, acquisition, negotiating and, of course, your local marketplace, the less risky your investments will be. A bargain real estate purchase will generally always be a safe investment; a bargain stock purchase isn’t. After all, who says the company you bought into will be in business next year?

Mistake #3: No Cash Reserves

Ask anyone in real estate long term (or any other business, for that matter), and they will tell you the two most important words for survival are: cash flow. Heck, even K-Mart failed to learn that valuable lesson! In order to stay in real estate long term, you need cash reserves. Buying real estate nothing down is easy; han-dling negative cash flow, repairs, and other expenses in the meantime is the trick. In fact, if you can handle thebadtimes,youwillalwayscomeoutontop.Lackofcash reserves puts unnecessary pressure on you to do substandard repairs, accept less than qualified tenants, and give into tenants’ demands for fear of vacancy. When you have a sufficient cash reserve, you act rationally. •Youholdoutforahighersalesprice. •Youholdoutforaqualifiedtenant. •Youleavepropertiesvacantratherthanaccepting unqualified tenants. •Youcallatenant’sbluffwhentheythreaten to leave. •Youtakecareofnecessaryrepairsand improvements on your properties.

It’s a whole different ball game than operating from alackofcash.LikeIsaid,buyingpropertieswithno

money down isn’t hard; it’s handling the cash flow. In other words, you can buy real estate without money, you just can’t survive in business without cash reserves. Consider accumulating cash reserves before investing in rental properties.

Mistake #4: Being Greedy

Many investors get started flipping properties to other investors, which is a good idea to generate cash re-serves. However, you must be realistic about how much profit is in a deal. If there is a potential for a $20,000 profit in a rehab project, you can’t expect to make $10,000flippingthatpropertytoarehabber.Arehab-ber has a huge risk embarking in such a project and wants a large enough profit to justify the risk.

Forexample,ifahouseneeds$10,000inrepairs,and the rehabber investor wants to make at least a $20,000 profit. If you find a deal with $20,000 in profit potential,howcouldyouexpecttoget$10,000forflip-ping the property if the rehab investor is only going to make$10,000?Youshouldbehappymaking$2,500and moving on to the next deal. If you want to make more than $2,500 on such a deal, then you must find and negotiate a better bargain that has more profit potential.

Mistake #5: Treating Real Estate as Anything Other Than a Business

People are lured to real estate because of the quick buck it promises. Don’t hold your breath--you won’t get rich quick. An “overnight sensation” usually takes about five years. More than 90% of the people who take a real estate seminar quit after three months. Why the high falloutrate?Lackofactionandunrealisticexpectations.Investing should be treated with the seriousness of a career. It takes months, even years for a business to cultivate customers and have a life of its own. You need to treat real estate like any other business.

Give yourself at least six months to see if real estate works for you. It may even take a year before you buy your first property. Maybe in the second year you will buy three or four properties. If you work hard at it and keep your eyes and ears open, you may even find your first deal in 30 days. You will not make money by talking or thinking about it; you must go out and take action.

New Investor Mistakes... con’t from page 7


Saturday APRIL 4th

8:30am–1:00pm

“ Wealth through Knowledge”

To Attend Register online in advance at MetrolinaREIA.org

A n I n v e S t o R t R A I n I n g e v e n t :

P H P S A T U R D A Y • A P R I L 4 T H

Metrolina REIA Conference Center 122W.WoodlawnRoad,SuiteD-101

Members: $25.00 – Non-Members: $50.00

9:00 am–11:00 am — Gwen Chubirko with Genesis Realty presents “NC Foreclosures from an Investor’s Viewpoint”

With foreclosure records being shattered and re-shattered, there hasd never been a time when a thorough knowledge of the NC foreclosure process has been so critical to maximizing this golden op-portunity in real estate.

GwenChubirkohasbeeninvestinginsinglefamilyrealestatesince1982,andobtainedherbro-ker’slicensein1985,sincewhichtimeshe’sspecializedinHUDandVAREO’s(RealEstateOwned,orBank-Ownedproperties).

From1997to2003,GwenManagedALLHUDforeclosuresfor34countiesinNorthCarolina!

GwenstartedGenesisRealtyCorp.in1995,andhassincespecializedinbank-ownedandpre-fore-closure homes.

Duringthisintesnsiveworkshop,Gwenwillbecovering:•HowtheforeclosureprocessworksinNC.•Howtopurchasepropertiesinpre-foreclosure.•HowtopurchaseREO’s(bankownedhomes).•Howtobuyatauction.•Howtheredemptionperiodworks.•AndMuchMore!

11:00 am–1:00 pm — Aileen Jardines & Charlotte Fair Housing presents “How Not to Get Yourself in Hot Water

with Fair Housing” Whether we are renting, selling, or selling with lease-options or owner financing, one thing remains conisistant:weareallsubjecttocompliancewithFederalFairHousingLaw,andseverepenaltitesfor noncompliance.

Wouldn’t it be a horrib le thing to make a mistake, omission, or misunderstood statement in an ad or to a prospect on the telephone, and face the possibility of being fined thousands to tens of thousands of dollars?

You will not want to miss this important and informative training. Contrary to popular belief, what you don’t know CAN indeed hurt you!


You Have to SELL a House to Get It Sold by Bill Bronchick

The market is slowing and investors are drowning in house payments. Is there an end in sight? Probably not. But, is there something you can do about it? Certainly dropping the price until you get it sold it one way to do it. I’ve got a better solution - sell the house.

What amazes me is that most sellers don’t sell their houses. They advertise houses, they list houses, but they don’t sell houses. In a good market you can rest on your laurels, but in a soft market you have to be will-ing to do something different. Stop whining about the slow market and start selling your houses!

There’s 5 tips for selling a house faster in a slow market:

1. Make Your Listing Look Great

MostMLSlistingsareboring,informativeanddon’tsell the house. That’s because most people leave it up to the real estate broker to create the listing, which is communicating with other brokers. Instead, take charge of your listing. Make sure the pictures are great, not average. Photoshop the pictures so there’s excellent photos of the front, the kitchen and the most appealing features of the house. If there’s a grey sky, wait until there’s a blue sky. If there’s a dead lawn in the photo, pick up that Photoshop paint brush and make it GREEN. Whenabuyer’sagentisscanningtheMLSwiththeirclients, you’ve got two seconds to catch their attention and initiate a showing - make a good first impression!

2. Use Lots of Directional Signs

A sign in front of your house is good if you are on a main street, otherwise you have to get traffic by your house. Use dozens of directional signs from the nearest mainroadtoyourproperty.Onweekends,tiebunchesof balloons to the main sign on the road.

3. Use a Professional Sign in Front

Don’t,IrepeatDONOTusethecheapsignyoufindatHome Depot, particularly the info tube that requires you to roll up your flyer. Invest in a solid metal-framed sign

that has an attached flyer holder that makes it easy for people to pull out your flyer. If the house is vacant, have an arrow with the words “More info” pointing to the house, and put your flyer box on the stoop of the home. This will get people peeking into the home, which is what you want.

4. Get a Great Flyer

It amazes me how boring and technical most home information flyers are prepared. The lazy real estate broker usually prints the flyer in black and white off the MLSlistingcomputer.Instead,useafullcolorflyerwithexcellent high-resolution photos of the inside. If you are not a digital camera buff, go on craigslist.org and hire a high school kid to shoot and edit some photos. Sell the features of the house, not the facts.

5. Sell People on the House

Most sellers show houses, and say, in effect, “Ya’ll comebacknow”.Letmeaskyouaquestion...isthiswhatcardealersdo?Ofcoursenot!Thecardinalruleof a car salesman is to never let a customer off the lot. Why should selling houses be any different? If you elicit the right information out of the buyer to understand that he is in the decision making mode, push him to make a decision.

Can you remember walking into a car dealer thinking to yourself, “I’m just looking, I have not made up my mind yet”? And then, for some inexplicable reason, you left with a new car! Why? Because that salesman sold it to you, he didn’t just let you test drive.

Not all buyers are ready to make a decision, but if he’s been looking at a few houses for a few weeks, he may be ready to make a decision, even if he says other-wise. Be ready with a contract and try to get the buyer to leave you a deposit check, even if it is refundable. Get as much commitment as you can; instead of show-ing the property, sell it!

Advanced InvestorMeets Every Thurs. – 9:00 amJonathan’s Restaurant10630 Independence Pointe Pkwy., Matthews, NCContact: Chuck Wiedenhoeft 704-236-1130

Charlotte Landlord AssociationMeets 2nd Wed. – 6:00 pmMetrolina REIA Conf. Center122 W. Woodlawn Ave., Char-lotte — Turn in between IHOP & Tres PesosContact: Allon Thompson 704-364-8966

HickoryMeets 3rd Mon. – 6:00 pmHickory Elks Lodge356 Main Ave. NW, Hickory, NCContact: David Meier828-962-7946

InternationalMeets 2nd Thurs. – 6:00 pmMetrolina REIA Conf. Center122 W. Woodlawn Ave. Charlotte— Turn in between IHOP & Tres Pesos Contact: Fran Arce704-607-1502

Lake NormanMeets 1st Tues. – 6:30 pmAcropolis Restaurant 20659 Catawba Ave. Cornelius, NCContact: Mitch Young704-421-5950

ConcordMeets 1st Thurs. – 6:00 pmLogan’s RoadHouse I-85 & Dale Earnhardt Blvd. Exit 60 off of I-852431 Wonder Dr., Kannapolis, NCContact: Cherrathee HagerTwinOakProperties4U @yahoo.com 704-490-2001

Gaston CountyMeets 2nd Mon. – 6:00 pmRyans Restaurant2900 E. Franklin Blvd. Gastonia, NCContact: Candy Tashiro704-691-0591

* Please note: Dates & Times of Sub-Groups meetings are subject to change. Confirm with Sub-Group leader prior to the meeting. Dates and times are correct at the time the newsletter is printed.

MatthewsMeets Every Tues. – 6:00 pmJonathan’s Restaurant10630 Independence Pointe Pkwy., Matthews, NCContact: Tom Amann 704-668-1157

New Member Orientation5:30pm, prior to the Main MeetingHilton Hotel5624 Westpark Drive Charlotte, NC — I-77 at Tyvola Contact: Kimberly Shelton 704-877-8777 or email:[email protected]

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

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April 2009 Events Calendar

Gaston Co – 6pm

Hickory – 6pm

Matthews – 6pm

Lk. Norm – 6:30pm

Charlotte Landlord – 6pm

Advanced – 9amInt’l – 6pm

Matthews – 6pm Advanced – 9amMAin MEEting

6:00PMnew Member – 5:30pm

Sonrisers – 7am

Matthews – 6pm Advanced – 9am

Matthews – 6pm Advanced – 9am

Advanced – 9am

Rock Hill – 6pm

Concord – 6pm

Sub-Groups are a great way for you to learn more about real estate investing in a smaller group and network. As a guest you may attend two meetings and on the third you must join the association to continue attending meetings. *

PHP Saturday

Rock HillMeets 1st Thurs. – 6:00 pmFireBonz BBQ & Grill2445 Cherry Rd., Rock Hill, SCContact: Grady & Susan Denton – 704-905-8469

SonRisersMeets the 3rd Fri. – 7:00 amLight Rail Family Restaurant8045 South Blvd. Charlotte, NCContact: Leon Humphrey 704-460-4933

n e W M e M B e R P R o g R A M g I v e S Y o U

f A S t S t A R t t o S U c c e S S

Metrolina Real Estate Investors Association122 W. Woodlawn Road, Suite D-101Charlotte, NC 28217

This New Member Program is designed to get each and every new member off to a good start. After completing a few basic requirements, each new member will be recognized and awarded a certificate.

The“FaststartToSuccess”stepsare:•AttendtheNewMemberOrientation•Attendamainmeeting•Attendasubgroupmeeting•Volunteeratanevent•RegisterandattendaPHPSaturday•Completethememberprofileonthewebsite.

RSVPtoKimberlySheltonat704.877.8777ortexasgirlnc@bellsouth.net.The“FaststartToSuccess”isheldeachmonthpriortotheMainMeetingfrom6:00–6:20pm.

IS YOUR PROFILE UP-to-DATE on the Metrolina REIA Website?Your membership is important to us. To get the most out of the Metrolina REIA, please to log on to our website

and update your profile. Go to www.MetrolinaREIA.org and here’s the instructions:

1stclickonMembersontheleftsideofthepageinthegreyarea-theoneonthebottom.Thatwilltakeyoutothe log in page. Update your information and add your photo.

It is very important for us to have up-to-date info on each and every one of our members so we can communicate with you on all of the upcoming events and news.

If you don’t have your log in info email Kimberly Shelton at [email protected].

Documents

Investor - Memberize · 2009-04-01 · investments and purchasing lucrative deals at well below their true market value. At 28 years old, J.T. is known as the “Real Estate Phenom”