Joplin Area Real Estate Investor Association

      I always get a lot of questions about how to handle the private money, so I'd like to go over a few of the basics. 

1. Touching the Money.
2. Co-mingling funds.
3. When do the payments start and end?

1. Touching the Money

      Sometimes when people hear the kind of interest, I pay they will get so excited about loaning me money that they want to hand me a big check right on the spot. This is not the way to handle the situation. I want them to send the check to my closing attorney or title company just before the closing. 

      I know that some of you are so eager to launch this new phase of growing your business that you really want to grab that first check but don't do it.  

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Many people (especially some attorneys) do not believe there are any benefits to using a Land Trust to hold title to your real estate investments. After 40+ years of investing in Single Family Homes (and using Land Trusts for 35+ of those years) I have found that the practical (and often unforeseen) benefits of using a Land Trust are not always obvious.

Using a Land Trust to hold title to your investments is like using a gun to protect yourself. Your adversary must ask themselves, “Is the gun loaded?” If the gun is not loaded there may or may not be much protection. But if the gun IS loaded does your adversary really want to take you on? A smart adversary will move on to the next target.

In my Land Trust seminars and home study courses, I talk a lot about the many benefits of creatively using the Power of Direction (POD) in a Land Trust. This article will address some specific advantages of the POD and how you might use it for privacy and asset protection benefits.

The Power of Direction is the steel hand inside the velvet glove. The Director of your Land Trust (which might be you as the Beneficiary or someone else who is not the Beneficiary) holds all power over the Trustee. Remember, unlike many other types of trusts, the Land Trustee cannot
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When you consider all the things you need to know about flipping houses—be as prepared as possible. If you want a chance at success in this type of real estate investing, do plenty of research about the processes, the market, and the industry–especially when you are flipping a house for the first time.

We discussed in our blog post on investing in properties that real estate businesses require you to be financially capable and knowledgeable about the ins and outs of the industry. You may also need help in understanding how to manage and successfully rent or sell your property, especially when you're looking to flip homes. To expand your knowledge, you can consult business experts or study books related to real estate businesses to keep yourself updated. In addition, you can join educational or  Read More...

Lease Options and Subject Tos, aka “Getting the Deed” are two very popular ways to purchase real estate with little or no money down. Acquiring investment real estate can be handled with many different approaches, but these two techniques can be implemented with little or no money down in most incidences.

A lease option is a technique which involves gaining ‘control’ of a property but not owning it. It is the right to possess a property now and purchase that property at some future date with terms you define when you buy it.

A “Subject To” is getting the deed to property without getting a mortgage for the home. Instead, the seller signs over the deed to his home ‘subject to’ the existing mortgage. The buyer in this case makes the mortgage payments on the old loan but does not need to get a mortgage themselves to acquire this home.

Both techniques usually require little or no money down. In both of these techniques, it is possible for the buyer to get money from the seller or the purchaser (or both!) in the beginning of the transaction. These techniques, when used properly, will provide for huge profits. They are both awesome, and when used hand-in-hand by investors are almost an unbeatable pair!

Th
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“If you were arrested for being a real estate investor would there, be enough evidence to convict you?” I was once asked! I wholeheartedly responded with a resounding, “YES!” You must be able to do that which makes you stand out from your competition. As you begin your campaigns as part of your overall marketing strategy and goal, continue to diligently test and track results as you go. You MUST be able to determine what marketing tools work best for you in your marketplace in order to draw the highest number of motivated sellers to your real estate investing business. 

People often ask me, “What is the best way to find motivated sellers and buyers?” My response is to do that which your competition will not and do a lot of it. Dare to be different in your approach to locating motivated sellers. Analyze, discover, and continue to rediscover the best combination of marketing methods that will generate the highest number of motivated sellers for your business. Develop three to five marketing techniques that give the very best lead-generating leverage possible and devote your resources to those marketing techniques which net the very best results. As simple as it may sound---don’t spend time on something that is not productive. 

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“If you were arrested for being a real estate investor would there, be enough evidence to convict you?” I was once asked! I wholeheartedly responded with a resounding, “YES!” You must be able to do that which makes you stand out from your competition. As you begin your campaigns as part of your overall marketing strategy and goal, continue to diligently test and track results as you go. You MUST be able to determine what marketing tools work best for you in your marketplace in order to draw the highest number of motivated sellers to your real estate investing business. 

People often ask me, “What is the best way to find motivated sellers and buyers?” My response is to do that which your competition will not and do a lot of it. Dare to be different in your approach to locating motivated sellers. Analyze, discover, and continue to rediscover the best combination of marketing methods that will generate the highest number of motivated sellers for your business. Develop three to five marketing techniques that give the very best lead-generating leverage possible and devote your resources to those marketing techniques which net the very best results. As simple as it may sound---don’t spend time on something that is n
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In 2020, I knocked on the door of a homeowner. I told him we loved his neighborhood and wanted to buy a home there. Did he know anyone thinking of selling?

As it turned out, he was about to put his home up for sale because he and his wife could no longer afford to pay their property taxes. Though their house would be paid off in a couple of years, due to being on fixed incomes, they were being forced to sell even though they loved their house and didn’t want to move.

Here’s how a Pure Option fixed this homeowner’s real estate problem. 

The homeowner said his home was worth $175,000. I agreed to pay his yearly property taxes. In exchange, he gave me the right to buy his home in the next twenty years for $175,000. Also, for each $1.00 we paid in property taxes, the purchase price would be reduced by $1.50. We also agreed to not exercise our Option to buy the property for the first 10 years of the 20-year option unless he moved from the home. 

This was a win-win deal. The homeowner was not forced to sell and move. We would capture all the appreciation gain on the property for the next twenty years. 

How often have you met with a homeowner who DOESN’T want to sell, but until now, you’ve been unable to help that person solve their real estate problem? 

Have you ever run into a homeowner with a situation like this? Pure Options are one of the least understood and least used deal structuring tools in real estate.  Now you know what to do!

Here's a good one that just came to mind while working with a new person in the game: Volunteering 

Volunteering is how I got started on the road to success.  

A very seasoned member of my local REIA gave me that advice when I asked him what I could do to become successful in real estate investing. He said to volunteer. And I did. 

When you volunteer, you will find it useful to have your information handy on a card to give out. If you haven't already, make sure to get yourself some basic business cards that have your contact info on them: name, email, phone number, and (maybe) address. 

I know people talk about doing things digitally but there is still an excellent case to be made for a business card. I'm pretty sure no one ever scrolls through their contacts on their phone looking at who they have not talked to lately. But they *will* take a look through a pile of business cards now and then. 

What if they come across yours, they realize they have a good profit motive to reach out to you, and then you are right there to capture the money. Won't you be glad you gave out a business card to them when you volunteered?

Here's a good one that just came to mind while working with a new person in the game: Volunteering 

Volunteering is how I got started on the road to success.  

A very seasoned member of my local REIA gave me that advice when I asked him what I could do to become successful in real estate investing. He said to volunteer. And I did. 

When you volunteer, you will find it useful to have your information handy on a card to give out. If you haven't already, make sure to get yourself some basic business cards that have your contact info on them: name, email, phone number, and (maybe) address. 

I know people talk about doing things digitally but there is still an excellent case to be made for a business card. I'm pretty sure no one ever scrolls through their contacts in their phone looking at who they have not talked to lately. But they *will* take a look through a pile of business cards now and then. 

What if they come across yours, they realize they have a good profit motive to reach out to you, and then you are right there to capture the money. Won't you be glad you gave out a business card to them when you volunteered?

“There is no victory at bargain basement prices.” – Dwight Eisenhower

Prices are on the rise everywhere right now. What about yours? 

From just a few pennies to outright sticker shock, hiking prices is one of the quickest paths to losing customers. But you’ve got ends to make meet, too. 

Our inflation series continues with one of the most pressing problems for businesses today: How much you need to increase your pricing models – and what to think about before you do. 

Worry and response

Current inflation is 8.6% year over year, a seemingly endless upward direction that worries most businesses. Almost nine out of 10 have told surveys that they’re also already seeing the hit in higher expenses such as supplies and services, some by as much as 50%. Throw in employees probably wanting above-average raises and you’ve got a compound problem. 
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