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Nor th American REIA
T H I S M O N T H : J A S O N S C H U B E R T
Volume 6 , Issue 10
October 2013
I N S I D E T H I S I S S U E :
Monthly Event Schedule 2
Find a Contractor 3
Coaching Programs 4
REIA Sub-Groups 7
Form of the Month 9
Meaningful Work 10
Sponsors/Partners 12
Upcoming Boot Camp 13
Membership App 14
REIA BULLETIN
Questions? Comments? Have an
article to submit? We appreciate
your feedback! Send email to:
Jason Schubert in a few short
years has accomplished what
many perceive to be unrealis-
tic. In his first year while still
working a full time job, Jason
purchased 18 houses with
none of his own money using
creative strategies such as
"subject to" and lease options.
Shortly after, Jason left his job and became a full time real es-
tate investor and quickly created purchasing and selling sys-
tems that have created millions.
Since then Jason has taken creative financing and marketing
to another level. In 5 short years, the results have been
astounding... from purchasing 30-50 houses a year using sub-
ject to's and lease options, to rehabbing 3-5 houses a month;
to being a builder, national real estate speaker, entrepreneur,
commercial real estate mentor and coach, hotelier and master
of buying properties with none of your own money and deal
structuring.
What You will Learn at this 90 Minute Micro-training...
*The fundamentals of Hotel Investing
*How to recognize great deals in a struggling market
*Hybrid Models of Hotel Investing for Massive Cash Flow
*Management Concepts and More...
Also, check out page 13 for more information on Jason’s
3-day boot camp in Charleston on October 11th-13th!
2
Organizers
Terry Nation - [email protected] - (803) 807-8140
Lisa Cunningham - [email protected] - (803) 873-8897
Steve Cunningham - [email protected] - (803) 479-7197
Rick Renner - [email protected] - (803) 960-3849
Don Kelley - [email protected] - (803) 413-8081
Mission Statement Columbia Real Estate Investors
Association is an organization dedi-
cated to helping you learn, grow
and prosper as a real estate in-
vestor. We provide educational
and networking opportunities to
real estate investors at all levels.
Legal Disclaimer Columbia Real Estate Investors As-
sociation does not exist to render and
does not give legal, tax, economic
or investment advice and disclaims
all liability for the actions or inac-
tion taken or not as a result of
communications from or to it’s
members, officers, directors, employ-
ees, contractors. Each individual
should consult his/her own counsel,
accountant and other advisors as to
legal, tax, economic, investment and
related matters concerning real estate
and other investments.
Content Disclaimer The views & opinions expressed by
authors of articles contributed to
this newsletter do not necessarily
reflect those of the association, the
board of directors or the staff.
Copyright @ 2009
Monthly Event Schedule
The Columbia REIA Open Meeting
Wednesday at 6:30PM
(immediately prior to 1st Thursday)
Woman's Investment Networking
every 2nd Thursday at 12:30PM
Deal Maker’s Breakfast
every 3rd Wednesday at 8AM
CASHFLOW 101
3rd Tuesday at 6PM
Technology & Internet Marketing
every 2nd & 4th Tuesday at 6:45PM
The Night Owl Social
every Last Wednesday at 7PM
Sales 101 / Public Speaking
Every Last Thursday at 7pm
Beginning Investors Group / Investing 101
Every 1st & 3rd Thursday
To receive monthly email notifications,
join our Meetup Site at:
www.Meetup.com/ColumbiaREIA
Columbia
Real Estate Investors Assoc.
www.ColumbiaREIA.com
Meetup.com/ColumbiaREIA
3
How to Find a Contractor Who Can Deliver Price, Quality, and Speed By Jim Ingersoll
As we near the bottom of our real estate market, investors are real-
izing it’s becoming a great market and it’s time to start buying
houses again. Investors who buy now can hold onto the investment
for very good cash flow or flip the house for an instant income.
Taking a wholesale property and transforming it into an income pro-
ducing asset usually requires some “rehab” work. I’ve noticed sever-
al recent CRE Online Forum posts where fellow investors are asking
questions about: How to Find a Contractor.
That is a great question, and the purpose of this article is to help
establish a road map to find a good new contractor.
Once you have found the perfect house you will need to begin plan-
ning your construction. Before even starting construction, it’s vital
that you choose the best contractor for your investment business.
How to Find a Contractor? Think Long-Term
Remember, real estate is a team sport. You will need strong people helping you in all aspects of
your investing and contractors are a critical component of your team. When I am looking for a
contractor, I am looking for a long-term team member who can help me fulfill three specific
needs:
Price
Quality
Speed
It is difficult to find a contractor who is fast, does quality work, and has excellent pricing. The
good news is that in today’s economy it is possible to find them.
Licensure and insurance are a must. If the contractors are not properly set-up with general
liability insurance or do not want to provide information for your W-9 reporting to the IRS, I
would recommend you keep looking for another contractor.
Decisions for your investment property improvement projects should be with intention and dili-
gence. Although it can be a bit tempting to hire a company with the lowest bid, it would still be
wise to hire someone who does the job right, and save money in the long run.
(Continued on page 6)
4
AR E YO U LO O K I NG FO R T H AT FI NA L PI EC E O F T H E P U Z ZL E?
REIA Bulle tin Page 4
Do you have all the tools needed to
succeed, but lack the motivation or
need better time management skills?
Would you find it helpful to work one-
on-one with someone who has already
„been there and done that‟?
How could brainstorming with other
investors on a regular basis help you?
Your REIA has programs available for
investors at all levels!
For more details on coaching levels
and tuition, send an email to:
WANTED: Good Speakers!
The Charleston REIA is
always looking for good
speakers who are willing to
share their knowledge. If
you know of a good speak-er that would like to speak
at one of our upcoming
meetings, please email:
newsletter @reiaconsultant.com
The Mastermind can be summed
up in two words: mutual bene-
ficiaries. Members of the mas-
termind group will not only pro-
vide others with sound feedback
and advice, but will also receive
these benefits from the group.
Some of the qualities we look for
in a participant include:
1. Drive and Commitment.
2. Diverse skills & experience.
3. Problem Solvers.
The conference call begins at
Noon and lasts for 1 hour. You
MUST RSVP on Meetup to receive
the number and pin. For rates &
availability, email:
mastermind
@reiaconsultant.com
MA S T ER M IN D CO N FER ENC E C A L L
In our continuing effort to pro-
vide the most value to our
members, this mastermind call
is now available to members of
all North American REIA Chap-
ters! Call in and join investors
across the state every Tuesday!
Hassle-free Homes Project Management
hassle-freehomes.com
Take your R.E. investing
business to the next level
with a mentor, one-on-one
coach, or with one of our accountability programs!
5
A great place to ex-
change contacts, deals,
knowledge and recharge
your motivation with like-minded investors. -
Curt-
I love the fact that oth-
er like-minded and suc-
cessful investors are
willing to come togeth-er and share not only
what they are doing
but how and why as
well. This is infor-
mation that is invalua-ble to your continued
success as an investor.
-Ryan-
Investment Tips for Your Real Estate Business by Robert Woodruff
No business can be run without having a proper set of skills and the required frame of
mind. People can make businesses but running them requires more effort. These efforts
can be made easy by simply following some tips that can be life savers for businessmen
and women dealing in real estate.
Watch the Wallet: In real estate, one can never be too sure to have exactly the kind of
return that he wants to get from the purchased property. It is a good tip to buy more
units of property if finance is there as the per unit cost drops because of this practice.
Managing the units requires almost the same effort no matter if they are less or more in
number. Finances have to be kept in hand for hard times if the business has to pay some
token money or has to face any other such expense, with a business this big, one cannot
bear running out of cash.
Take Time and Decide: It is never a good idea press your luck in a high risk business as
real estate. There are several reasons for which the business owner must inquire every-
thing correctly and thoroughly prior to making the purchase. There are often alterna-
tives present to any property, what one can do is to take time in deciding which proper-
ty would be the best one to have. One should never simply go for the "choosing by de-
fault" policy while buying something as big as an apartment.
Learn the Formulas: The price of a real estate depreciates for various reasons and the
business owner must know all the possibilities and variables involved that result in in-
creasing and decreasing of the price of a property. Damage to a house, broken interior
and other similar things depreciate the price in some percentage that has to be made
known by knowing the formulas with which they can be calculated. Doing this, ensures
that the real estate dealer does not pay more than what ought to be paid for a particular
property.
Make Trustable Partners: Partners in a real estate business are bridges to wealth, but
they must not be spammers. Businesses face lesser threat from outside than what they
face from within. Your partners, whether they are merchants, vendors or marketers;
must have a good reputation of doing business with.
Keep Spare Money for Periodic Expenses: There are some expenses that keep incurring
every now and then no matter if a property is purchased or not. These expenses may
include auction fees that are non-refundable and other charges that a business has to
pay in the form of duties and for availing services of other selling agencies. Ensure that
you have a reserve to handle such expenses.
Find Finance and then Purchase: Taking too many loans from a bank is not a good thing
to do for a real estate dealer. Self-financing is the best option, but if money has to be
raised through taking loans, then it is better to start off a smaller loan and then to pro-
ceed with the larger ones.
6
(Find a Contractor page 2)
Where Do I Begin?
Here are easy tips on how you can improve your chances of selecting a credible contractor the
first time.
Before even starting construction, it's vital that you choose the best contractor for
your investment business.
Begin your list with at least three to five general contractors. This list will serve as the starting
point. This is where you begin pre-screening them in order to end up with at least two or three
good contractors whom you want to bid on your projects.
Referrals from friends, family and relatives can be helpful but you still need to look into what
each company has to offer to ensure you get the best deals.
You may want to check Service Magic or Angie’s List. With Service Magic the contractors are
typically pre-qualified regarding licensure and insurance, and you can find them in a wide varie-
ty of categories.
Your 8-Point Hiring Checklist
1. License: Make sure your potential home contractors are licensed and insured. Call your local
state business licensing board to verify current licensure and ask about any complaints that
have been issued to your potential home contractors. Also be sure to request a copy of both the
license and insurance as part of your investigation.
Contractors are licensed as a Class A, Class B, or Class C, and then there are also trade licens-
es, specifically for HVAC, Electrical, and Plumbing. Here are the classifications:
Class A: Work on a single contract up to $120,000 or multiple contracts up to $75,000
Class B: Work on a single contract up to $7,500 or multiples up to $120,000
Class C: Work on single contract up to $1,000 or multiples up to $7,500
2. References: Talk to some of your contractor’s previous clients and references. There is no
better way to evaluate potential contractors than by talking to their previous customers or
checking out the finished work itself. If you get the chance to view some of the work that the
company has done, don’t miss it. Ask the references specific questions regarding communica-
tion, project time-line, surprises, budget, etc.
3. Insurance: An absolute requirement for every contractor is a General Liability and Workers
Compensation Insurance. If a certain contractor doesn’t have insurance, you could be the one
held liable for any accident that can happen under construction premises while work is going
(Continued on page 8)
7
Great group of people!
Very welcoming to a
newcomer and very obvi-
ous that they care about each other's success... I
feel that I can learn a lot
and get a great deal of
knowledge to help me
achieve my goals.
-Renee-
Columbia REIA Sub-Groups
This group is a literal
treasure house of
knowledge and experi-
ences with people who are genuine and unself-
ishly willing to offer as-
sistance. It's a great
thing to know you're
connected to such a powerful network.
-Mark-
All Things Real Estate
StopPayingRent
Columbia.com
Lieve Enterprises, LLC
Property Investors
(803) 223-9109
“Night Owl Social”
Columbia REIA‟s monthly member mixer. Meet and Net-work with local investors, discuss the latest topics. You
can literally save thousands by learning from other inves-
tors' successes & mistakes.
Hosted by Terry Nation
“Deal Maker’s Breakfast”
Keep your week going strong with a motivational & pro-ductive morning meeting. There is no better way to start-
off a morning than in the company of other investors
sharing deals and ideas.
Hosted by Rick Renner
“CASHFLOW 101 Game Night”
Learn the basic philosophy of cash flow with like minded investors. For those who want to enjoy learning in a fun
and interactive atmosphere. You can practice investing
without the real-world risks!
Hosted by Lisa Cunningham
“Women’s Investment Networking”
Come meet with other women entrepreneurs & real es-tate investors from the Lowcountry. Meetings will cover
women specific topics for todays' real estate market, and
provide networking opportunities.
Hosted by Lisa Cunningham
“Tech Night” (Webinar)
This webinar you teach you the practical tools, tips, and techniques to help you incorporate technology into your
real estate investing business.
Visit our Meetup site for details!
Sales 101 / Public Speaking
Come out and meet with other entrepreneurs & real es-tate investors. These meetings will cover basic selling
techniques and presentation skills.
Hosted by Steve Cunningham
Beginning Investors Group
Investing 101: Learn all the benefits of your local REIA,
and also the basics of real estate investing. Get you questions answered by a “REIA veteran”!
Hosted by Don Kelley
8
(Find a Contractor page 3)
on. Get a copy of the contractor’s insurance certificate from their provider before starting any
project. Make sure the information is current.
4. Complaints: Search for contractor reviews and complaints online. Run your own back-
ground check on these contractors by searching for reviews and complaints from your potential
contractions online. You can check out the Better Business Bureau site or other sites such
as Service Magic or Angie’s List.
5. Contract: Create and sign a good contract. Sign a good contract that will protect the inter-
ests of both parties. Specify the tasks that need to be done, the duration of the project, its
cost, and the payment dates. Don’t forget to be specific with the details. This is usually where
the conflicts occurs.
The scope of work should include that they are responsible for any issues that may occur during
the rehab. Residential rehab bids are often poorly documented with a lot of issues being over-
looked, poorly defined, or left out. Include in the agreement the pricing, draws for payments,
insurance requirements, and timeline for completion.
6. Permits: You should ask your contractors specifically about how they plan to handle neces-
sary permits for the job. If they absolutely refuse to pull permits, consider this a red-flag.
7. Change orders: Watch out for the change orders. Rehab construction has this element of
unknown and other pre-existing conditions. These are conditions that may alter the original
construction plan and are left inherent during the bid. Make sure the “change of order” process
is clearly defined.
8. Deposit: All contractors will want to have some funds up-front. Be sure that the construc-
tion draw process is clearly documented in the contract to avoid future misunderstandings. Be
careful of contractors who request more than 50% of the work up-front.
9. Schedule: Speed of construction is a major consideration. Be sure to clearly define the start
date and expected completion date in the contract. Your holding costs on your investment will
skyrocket if the construction takes forever to complete.
It‟s not about the Lowest Bid
No matter how long the search becomes, in the end what’s important is that you get the best
deal for your investment. The best contractor value consists of a combination of quality, speed,
and price. When searching for a great contractor, you want to find that balance.
Be sure you find a contractor who will be on your team and have your best interest as his pri-
mary objective. Keep in mind that you are providing the contractor with a large contract and
entrusting him to do a great job and complete it on-time with minimal hassles.
9
Form of the Month “Business Evaluation Matrix”
(This form is available at our Meetup site in the Files section)
This month we have a chart to use when choosing your business entity.
As always, these forms are for informational purposes only. Please have your at-
torney review and modify them as needed. If you have any questions regarding
this form, please email them to: [email protected].
10
A Guide to Having Meaningful Work By Donald Latumahina
How do you spend your time? Everyone has a different answer, of course, but I’m sure
there is one similarity: work is a big part of it. We spend a big chunk of our time at work.
That is why your work plays an important role in your happiness.
I recently read a book titled Authentic Happiness by
Martin Seligman. I like the book because it talks
about happiness based on scientific research and
not just opinions. Among others, it also talks about
how to derive authentic happiness from your work.
But what is authentic happiness? Put simply, there
are two kinds of happiness: momentary happi-
ness and authentic happiness. Momentary happi-
ness is the fleeting feeling you get from having
fun. Authentic happiness, on the other hand, is the
enduring fulfillment you get from doing things that
are true to yourself.
The book says that there are three levels of how we view our work. The higher your
level is, the more authentic happiness you will get from your work. Here are the three lev-
els:
Job This is the lowest level. Here you view your work primarily as a way to make money.
Money becomes the primary motivation. If there is no money in it, then you won’t do it.
Career Here your motivation is the advancement you get. As long as you can move to a
higher level, you are motivated. But when the advancement stops, you are no longer moti-
vated to do the work.
Calling This is the highest level of all. Here your motivation is the inner fulfillment you get
from doing the work. External rewards like money or advancement are not your primary
motivation. In fact, you will still do the work even if you don’t get any external reward. The
work is rewarding by itself.
From the description above, which one do you think applies to you? Do you view your work
as a job, a career, or a calling?
Even if you now view your work as a job, that’s fine. After all, we all have needs to meet
and families to feed.
(Continued on the next page)
11
(Guide to Having Meaningful Work page 2)
However, to live your life to the fullest, you should move beyond that. Your goal should
be to make your work a calling. That’s how you can have meaningful work. That’s how
you can have work that is fulfilling beyond what external rewards could give.
Here are four tips to make your work a calling and thereby making it meaningful:
1. Be content
You can’t make your work a calling if you constantly worry about making more money. Yes,
you need money to meet your needs. But beyond meeting the essential needs, studies
show that additional money brings little to no happiness. It’s just not worth fighting for. So
you should learn to be content instead. Being content frees your mind to focus on the more
meaningful things.
2. Find the intersection between your cause and strengths
To make your work a calling, you should have a cause that’s bigger than yourself. What is
it that matters to you? What is it that you want to contribute to?
In addition, you also need to find your strengths. What
are the things that you are naturally good at? What are
the things that feel enjoyable and effortless to do?
After you find your cause and strengths, you should
find the intersection between them. Find ways to use
your strengths to contribute to your cause.
3. Exercise your strengths
Now that you have found the intersection, you should constantly exercise your strengths.
Try to use them every day. The more you do this, the more gratification you will get. This
is where authentic happiness comes from.
If you work for someone else, you may need to talk with your boss about it. Ask him or her
to assign you to the area of your strengths. Explain to them that it will benefit the company
because you will be able to contribute more. Another solution is to start a side business
where you can exercise your strengths.
4. Think in terms of helping people
A calling has a sense of contribution attached to it. So one good way to make your work a
calling is to think of it in terms of helping people. How can you help people through your
work? How can you make the world a better place through it?
12
“A good blend of begin-
ners to very active and knowledgeable investors
like minded and inter-
ested in the success of
everyone.” -David-
“Lots of people that
are willing to share
their knowledge if you
are willing to share some of yours. The
members really do
want to help YOU!!! “
-Brian-
Through partnership with Community Buying Group,
all REIA members can now save from these
suppliers and more! See an Organizer for details.
13
“The Best Kept Secret in Commercial Real Estate”
Jason Schubert with RICH in Five
Jason Schubert in a few short years has accomplished what
many perceived to be unrealistic. In 2004, Jason was sitting
in a cube working 50 hours a week for the computer giant
Dell Inc. until one day he got a call that changed his mindset
forever. Since then, Jason has taken creative financing and
marketing to another level. In his first year while still work-
ing a full time job, he purchased 18 houses with none of his
own money using creative strategies such as subject to’s, lease
options, and owner financing. Jason left Dell and became a full
time real estate investor. He quickly created purchasing and
selling systems that have created large amounts of cash flow
for both him and his students. In a few short years the results
have been astounding!
Jason is a builder, a national real estate speaker, entrepreneur, commercial real estate
mentor and coach, hotelier, and a master of buying properties with none of your own
money and deal structuring. He created RICH in Five, a real estate education
company focusing on coaching and mentoring students all over the country with an
emphasis on acquisition and management of hotels. The RICH in Five coaching pro-
gram has helped countless students across the country achieve and exceed their finan-
cial goals.
Please join us to hear Jason discuss the How To‟s:
How to purchase your first hotel using the same strategies you are already using for houses.
Learn how to go through the whole deal process from finding the property to funding the deal.
How to find the best hotel deals that generate not hundreds but thousands of dollars in posi-
tive cash flow, month after month, year after year.
How to evaluate your hotel and make sure you have not just a good deal, but a great deal!
How to increase the value and cash flow of your potential cash cow.
How to buy hotels with none of your own money!
Exit strategies, management, and retirement planning for long term financial security.
Also, be sure to keep open the weekend of October 11th - 13th Jason will be offering a
three day intensive and content filled boot camp at a very low cost! Come learn more
about Jason Schubert with RICH in Five at the October 3rd General Meeting.
See you then! Visit: ColumbiaREIA.com for more details.
14
